group assignment vinamilk

 Established in 1976, Vinamilk was the result of taking over 3 dairy companies left by the old regime, including:o Thong Nhat Milk Factoryo Truong Tho Milk Factoryo Dielac Powder Milk F

GROUP ASSIGNMENT

 Subject: MGT103 – Introduction to Management

 Lecturer: Nguyễn Minh Ngọc Quỳnh

in most Vietnamese customers due to its reputation and affordable prices.

 Established in 1976, Vinamilk was the result of taking over 3 dairy companies left by the old regime, including:

o Thong Nhat Milk Factory

o Truong Tho Milk Factory

o Dielac Powder Milk Factory

 Through 46 years of operation, Vinamilk has had some outstanding achievements:

o 50 Best Listed Enterprises in Vietnam (Forbes 2013 - 2020)

o Top 500 Company 2013 - 2020 (VNR)

o Vietnam Value 2012 - 2020 (Ministry of Industry and Trade)

o Top 10 Vietnamese High Quality Goods 1995 - 2020 (High-Quality Vietnamese Goods Association)

o Top 10 Sustainable Business 2016 (Vietnam Chamber of Commerce and Industry - VCCI)

o 50 Most Valuable Brands in Vietnam 2016 - 2020 (Forbes)

 Besides that, not only encapsulated in the domestic market, Vinamilk continues to expand itsbusiness by corporate with some foreign enterprises in order to bring its products abroad

o In 2019, commencement of Vinamilk Lao-Jagro organic dairy farm complex in Laos

o In 2021, announcement of joint venture company in the Philippines market

 Fresh milk products: Vinamilk 100% UHT fresh milk less sugar, Vinamilk Green Farm FreshMilk, Vinamilk UHT fresh milk containing bird’s nest, etc

 Condensed milk products: Ông Thọ condensed milk, Ngôi Sao Phương Nam condensed milk,Vinamilk Tài Lộc creamer

 Organic products: VINAMILK ORGANIC GOLD powder milk and VINAMILK ORGANICGOLD fresh milk

 Yogurt products: Vinamilk LOVE YOGHURT, NGON KHỎE Yoghurt, Vinamilk Fruit Yoghurt,Vinamilk Drinking Yogurt

 Products for pregnant people: Dielac Mama Gold, Optimum Gold, Dielac Alpha Gold IQ, DielacGrow Plus

 Mileage powder products: RiDielac Gold, Optimum Gold

 Milk products for elderly: Kenko Haru, Vinamilk Sure Prevent Gold, Vinamilk Sure Diecerna,Vinamilk Canxi Pro

 Beverage: Vfresh fruit juice, Icy salted lemon water, Vfresh tea, Vinamilk Cocofresh coconutwater, Vinamilk fresh water

 Ice cream: Vinamilk Family ice cream box, Vinamilk Delight, Subo ice cream Sugar product:Vietsugar refined sugar

 Cheese: Vinamilk cheese

 Moreover, in order to attract more customers as well as maintain the customer loyalty, Vinamilkexpand its influence by distributing the products across the country from urban areas to rural onesand providing attractive purchase promotion such as: ADM QR Code Scanning, Double Day12.12, Hero Tet Holiday and so on

 According to Ministry of Industry and Trade, in 2020,Vietnam'smilkexportturnover reached 302.7 million USD, an increaseof 10.5%compared 2019 Thanks to apply high technology of automation and many Global GAP,to

VietGAP as well as organic farms, despite epidemic, Vinamilk’s dairy products exported regularly

to major countries like China, Korea, Japan, …

 In 2020, EUROMONITOR estimated that Vietnam’s dairy market reached VND 135 trillionwhich increased 8,3% when comparing to the same period Having the percentage of 43,3% in themarket share, Vinamilk continued to be at the first rank despite COVID-19.

III Planning

 Planning process is the development of goals, strategies, task lists and schedules required toachieve the objectives of a business The planning process is a fundamental function ofmanagement and should result in the best possible degree of need satisfaction given the resourcesavailable

 Vinamilk is planning to maintain the No.1 position in Vietnam market and aiming to reach theTop 30 of World’s Largest Dairy Companies in terms of revenue, Vinamilk has identified adevelopment strategy with three main pillars for execution, including:

o Becoming one of the 30 largest dairy companies in the world – leading in highlyapplicable innovations

 Focus on dairy industry and dairy related products, which is the core business thathas established the Vinamilk brands

 Continue to R&D to develop more new products with innovation; expand anddiversify portfolio based on consumers’ preferences and demands; as well as bringvarious and convenient experiences to them

o Consolidating the leading position in Vietnam’s dairy industry

 Prioritize to exploit the domestic market which still has great growth potential

 Promote more on high end and added value products, especially in urban areas

 Penetrate and cover rural areas with mainstream products that growth potentialare large

 Continue to build a large and strong domestic distribution system, increasemarket share and maintain Vinamilk’s leading position in the market

o Becoming the most valuable dairy company company in South East Asia

 Be ready for M&A activities and expand strong cooperation with partners in allthree directions of horizontal, vertical and combined integration

 Prioritize to seek M&A opportunities with dairy companies in other countries forthe purpose of expanding the market and increasing sales.

 Continue to penetrate new export markets with the strategy of converting thetraditional goods export model into types of deep cooperation with thedistribution partners in new key markets

IV Organizing

 Organizational chart: Vinamilk's organizational chart is presented in a professional manner and

allocates departments in a scientific and reasonable manner, specifically decentralizing theresponsibilities of each member and department in the company The organizational chart helps usoperate in the most effective way, and helps departments work closely together to create a strongVinamilk About the job design, leaders need to identify which areas, skills, and outcomes to evaluateand how are these factors related to the achievement of corporate goals? Often these requirements can

be inferred from the job description and include: behavioral standards and performance standards

 A job performance standard is a system of criteria for expressing the requirements ofthe job of completing a job both in quantity and in quality.

 A job performance standard is a system of criteria for expressing the requirements of

the job of completing a job both in quantity and in quality

o Production department

o Marketing room

o Human Resources Department

o Sales Department

o Finance and Accounting Department

 Derived from the company's organizational structure, based on the specificity and assignment,specific job descriptions of each department, for which the company sets standards evaluate theperformance capacity of employees of different departments

 Specifically, when assessing the working ability of employees, the company has set the following criteria:

o Production department:

Volume of products produced by the hour, by day and by month

The quality of the products produced meets the standards

Ability to work under pressure

Enthusiastic, dynamic, creative, independent at work

Proficiency in the milk production process

 Analyze and identify market needs for product improvement and developmentnew to theneeds of the market.

 Conduct data collection, research, and analysis related to market and competitors

o Human Resources Department:

 Operating and managing administrative and human resource activities of the wholecompany

 Establish and devise plans and strategies for human resource development

 Advising the Board of Directors on administrative and human resource activities

 Work closely with the Administration and Human Resources departments of branchesand factories to best support them on administrative and human resource issues

 Develop internal rules, policies on administration and human resources for the whole company

 Organize the implementation and supervision of the implementation of regulations andpolicies on administration and human resources in accordance with the reality of theCompany and the current regime of the State

 Advise employees in the Company on issues related to the rights and obligations of employees in the Company

has had many successes in the process of management, administration and administration

to develop the dairy industry, achieving the achievements today

o Rejuvenate human resources to create innovation motivation: The company's recruitmentpolicy is always aimed at diversifying the source of candidates from leadership level toemployees, from candidates who have the ability to integrate with experience and highqualifications in accordance with the job requirements to students with good results Thisrecruitment is considered from the point of view regardless of other factors such asregion, age, religion

o Training in both professional and professional skills: In the last 2 years, Vinamilk hasorganized many talent training programs with the number of employees participating inmore than 100 people, of which, up to now, 30% of employees have been promoted tobecome managers of the company

 Code of conduct of employees towards the company

o As a representative of VINAMILK in a certain language, each employee have to regulate with the highest ink directly from the Government and in a manner that respectsthe reputation and position of VINAMILK Originally, each person must be fair andhonest in all dealings with customers, suppliers, shareholders, competitors and even otheremployees to conflicting interests All, each of us respects employee complianceorganizations with their rule processing

self-VII Management issues and recommendations

the dairy processing sector Drinking yogurt has an 84.5 percent market share, while eating yogurt has a79.7% market share in the United States Vinamilk products are known to be shipped to 43 countriesacross the world, including the United States, France, Canada, Poland, Germany, Japan, and the MiddleEast area, in addition to a strong local distribution network of over 220,000 sales outlets Southeast Asia

is a region Export revenue provides for 13% of overall revenue for the corporation.However, theaforementioned figures and marketing "no longer make sense" because consumers have lately reporteddifficulties and incidents relating to the quality of Vinamilk's goods, including fungus, mildew, and otherissues, even while still in HSD When confronted with the aforementioned situations, Vinamilk frequentlysimply delivers "stereotypical" comments due to the transportation stage, rather than "looking at myself"and taking efforts to monitor and evaluate operations Customers complained about the quantity ofVinamilk yogurt that had green mold and was damaged on July 15, 2018, even though the exterior shellstill showed HSD Some customers claimed that even though the yogurt had recently been purchased atthe shop, they were surprised when they brought it out to eat since the interior of the milk box was clottedand runny, and the yogurt section seemed to be green moss

expiration date

b) The dairy market's persistently negative growth

The growth rate of the fast-moving consumer goods (FMCG) business is showing indications of returning

in both cities and rural regions, according to a research by Rong Viet Securities, with workers mostlycoming from the drop in demand for dairy, packaged foods, and home appliances

Animal milk and cow's milk are on the decline Since the fourth quarter of 2017, the dairy business hashad negative growth, with no signs of improvement until the second quarter of 2018 According to RongViet Securities, the decline in reasons may be due to a shift in Vietnamese people's usage patterns As aresult, people are becoming more worried about their own health, moving to items with high nutritionalcontent, healthy beverages, and tougher product quality criteria

This is along the lines of a high-end product; the user will need to save money on certain mid-rangethings in order to get more usage out of the high-end ones As a result, the value of the number of goods

in the cart decreases To fulfill customer expectations, the present FMCG sector must analyze quality andgrowth in order to study and manufacture goods with better added value

Animal milk and cow's milk are on the decline in Vietnam, according to a Kantar Worldpanel report This

is attributable to three factors To begin with, consumers have a variety of options, such as plant-basedmilk or other healthy beverages Second, yogurt offers a plethora of flavor-exploiting items Finally,customers are modifying their buying habits, particularly in major cities, to include more nutritionallydense items, such as a range of luxury organic dairy products The behemoth Vinamilk is the primarypioneer in Europe

2 Recommendations

a) Vinamilk guarantees the quality of raw materials used in the manufacturing of milkVinamilk has supplied details on two important topics: the source of imported raw materials and thecompany's Vietnam fresh milk material region This is also a significant reaction by companies to harmfuland inaccurate information that has negative effects for both enterprises and the community Vinamilk is a

big dairy and dairy product production and trading company in Vietnam that sells a variety of productsincluding powdered milk, nutritious powder, fresh milk, yogurt, condensed milk, ice cream, and cheese.Vinamilk imports raw materials to supply manufacturing services to fulfill the demands of local andexport markets, in addition to employing domestic ingredients to make powdered milk products (forchildren and adults) and nutritious powder Vinamilk imports milk resources from the United States,Australia, New Zealand, the European Union, and Japan to make powdered milk.

Vinamilk makes use of ultra-high-temperature (UHT) technology Experts presented UHT pasteurizedmilk manufacturing technology, the world's most sophisticated milk processing technology, to consumers

at the conference The primary idea of UHT sterilization processing technology is to fast heat the product

to 138-140oC (approximately 4-6 seconds), then immediately cool it to 25oC This ultra-high heattreatment and ultra-quick cooling technique destroys all dangerous bacteria, yeasts, molds, and othermicroorganisms while keeping the product's maximum nutrients and natural tastes In a totally hygienicatmosphere, the final milk is subsequently packed in 6-layer sterilized paper bags This helps to block out

100 percent of light and dangerous germs from the air, which are the causes of food spoilage Withouthuman interference, the whole aforementioned processing and packaging procedure takes place in a fullyautomated, sterile environment

Vinamilk's fresh cow's milk raw materials are squeezed from healthy cows throughout the lactationperiod, according to Ms Duong Viet Nga and Mr Pham Le Thai, who are in charge of Vinamilk's yogurtand liquid milk products Within two hours, expressed milk is sent to transshipment agents for collection.Before putting each carton of milk into the collecting tank and keeping it at 6 degrees Celsius, KCSpersonnel inspects it Specialized tank trucks convey milk that meets quality standards to the plant Beforebeing kept and put into manufacturing, all raw materials are checked at Vinamilk Tetra Pak Company(Tetra) and Combiloc are Vinamilk's current paper box packaging providers The utilization of two