th true milk company

TH True Milk is a popular dairy brand in Vietnam.. Thecompany was founded in 2009 by Thai Huong, and it has rapidly grown tobecome one of the leading dairy companies in Vietnam.Product R

TH True Milk Company

Presented by

Nguyễn Thị Thùy Trang

Đỗ Thị Hảo

Vũ Mai Phương Tống Khánh Ly Trần Thị Yến Nhi Ngô Yến Dương

Instructor: Trần Quang Thắng

Fall, November 2023

ACKNOWLEDGEMENT

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Entering university is a thrilling moment in one's life, filled with youthful ambitions and aspirations, but it's also a moment of great responsibility It's not just your future that you carry on your shoulders, but the pride and hopes of your entire family At this juncture, it's crucial to make the most of your time in university, acquire new knowledge and skills, and prepare yourself for the journey ahead Our experience studying at FPT University has been invaluable It has taught us many useful lessons and provided us with enriching experiences We extend our heartfelt gratitude to FPT University, our classmates in MGT103, and our mentor teachers, without whom this journey would have been incomplete

To our dear classmates in MGT103, we want to express our sincere appreciation for your unwavering support and friendship Your kindness and generosity have made all the difference, and we are grateful to have shared this journey with you Adapting to the intensity of academic and extracurricular activities at the university can be daunting, but with the enthusiastic help from the school and the counselor, we've found our place and become more confident and integrated

We owe a debt of gratitude to our mentor teachers, Teacher Trần Quang Thắng for her inspiring guidance and invaluable advice in completing this project Her encouragement has instilled in us a sense

of confidence and self-discovery, enabling us to identify our strengths and weaknesses and how to develop them Thank you, Trần Thắng Thanks for being wonderful mentors and for your tremendous contributions to our education

In conclusion, we are proud of our growth and development at FPT University We will carry the lessons and experiences we've gained with

us for life, as we step out into the world with a piece of full luggage of knowledge and skills

ABSTRACT

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TH True Milk is a popular dairy brand in Vietnam It is known for its high-quality milk and dairy products It also is a pioneer brand in the clean fresh milk industry in Vietnam and is the first unit allowed to label clean fresh milk on its packaging

TABLE OF CONTENTS

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A.ACKNOWLEDGEMENT……….01

B.ABSTRACT………02

C.TABLE OF CONTENT ….……… 03

D.CONTENT……….…03

I EXECUTIVE SUMMARY………

….03 II INTRODUCTION………

03 ● Company background and history….………

….04 ● Statement of mission, vision, and core values…

…05 III ANALYSIS OF KEY FACTORS IN THE COMPANY’S MANAGEMENT………

… 08

1.Planning……….….09

● The company’s general environment……… 09

● TH True Milk's BCG matrix……….……

… 09

2.Organizing………

… 10

● The company’s organizational structure………….…

11 ● The company’s organizational culture……….11

● Influence the company’s HRM………

… 12

3.Leading and controlling………

….13 ● The company’s leadership……… 14

● Control the quality of services/products ……….15

E CONCLUSION………

……… 17

F REFERENCES………

……… 18

EXECUTIVE SUMMARY

Company Background

TH True Milk is owned by TH Group, a Vietnamese conglomerate that operates in various sectors, including agriculture, real estate, and retail The company was founded in 2009 by Thai Huong, and it has rapidly grown to become one of the leading dairy companies in Vietnam

Product Range

True Milk offers a wide range of dairy products, including fresh milk, yogurt, cheese, butter, condensed milk, and ice cream They emphasize using modern technology and sustainable farming practices to ensure the quality and safety of their products

Quality Standards

True Milk owns large-scale dairy farms where they raise their own cows and control the entire production process Their dairy farms are equipped with advanced facilities and follow international standards for animal welfare and hygiene The cows are fed a nutritious diet and receive proper veterinary care to maintain their health TH true Milk places a strong emphasis on quality control They use advanced milk processing technologies to ensure that their products retain maximum nutrition and taste The company has obtained several certifications such as ISO 22000, BRC (British Retail Consortium), and HACCP (Hazard Analysis and Critical Control Points) to guarantee food safety and quality

Sustainability Initiatives

TH Group is committed to sustainable practices and environmental conservation They have implemented various initiatives to reduce their carbon footprint and promote eco-friendly operations For example, they utilize biogas systems to convert cow dung into renewable energy, reducing greenhouse gas emissions

Market Presence

True Milk has a significant presence in the Vietnamese market and has also expanded its operations internationally They export their products

to countries such as China, Thailand, South Korea, and the Middle East

INTRODUCTION

TH True Milk is a prominent dairy company based in Vietnam It was founded

by Thai Huong, a successful entrepreneur, in 2009 The company has quickly grown to become one of the largest dairy producers in Vietnam, offering a wide range of high-quality milk and dairy products

Mission

TH True Milk's mission is to provide consumers with nutritious and safe dairy products while contributing to the development of the local dairy industry and improving the quality of life for farmers and communities

Vision

TH True Milk aims to be the leading provider of premium dairy products in Vietnam and expand its presence globally The company envisions a future where people can enjoy healthy and sustainable dairy products that are produced with utmost care and integrity

Core Values

TH True Milk is committed to maintaining the highest standards of quality throughout its production processes They strive to deliver products that meet or exceed customers' expectations About Integrity, The company operates with transparency and honesty, ensuring that all their interactions with stakeholders are conducted ethically and responsibly nTH True Milk recognizes the importance of sustainable practices in agriculture and is dedicated to promoting environmental sustainability in its operations They focus on reducing carbon footprint, conserving natural resources, and supporting responsible farming practices TH True Milk encourages innovation and continuous improvement in order to stay ahead in the ever-evolving dairy industry They invest in research and development to offer new and innovative dairy products that cater to changing consumer preferences

ANALYSIS OF KEY FACTORS IN THE COMPANY’S MANAGEMENT

1 Planning

The company’s general environment

The political environment in Vietnam is gradually stabilizing, with a legal

system that is becoming more complete This creates stability and convenience for the production and business activities of businesses The government also has many meaningful policies such as encouraging investment in dairy farming through preferential loans, insurance for farmers

in dairy-producing areas, or using industrial profits to compensate for agriculture, in order to encourage farmers to actively raise dairy cows Vietnam has signed many free trade agreements (FTAs), creating conditions for Vietnamese dairy companies to export to foreign markets

Becoming a member of global trade organizations provides Vietnamese businesses with numerous opportunities for collaboration with large partners, including the dairy industry The average GDP growth rate per capita in Vietnam from 2002 to 2020 increased by 3.6 times, specifically reaching

3700 USD However, during the COVID-19 pandemic crisis, the GDP in 2021 dropped to 2.58% Nevertheless, the Vietnamese economy is gradually improving and showing signs of recovery In the first 9 months of 2023, the average monthly income of laborers was 7.0 million VND, an increase of 6.8% This has led to higher purchasing power in the market with various needs and desires

The weight and height of Vietnamese individuals are

significantly lower compared to people worldwide This trend of wanting to catch up with global standards has led to an increased demand for milk consumption Daily exposure to various sources of information through mass media such as TV, the internet, newspapers, etc., regarding health issues, will make consumers recognize the importance of health care and physical enhancement This heightened awareness will lead to an increased demand

to satisfy these needs, resulting in more convenient advertising and distribution activities to reach consumers

In the future, milk production technology will continue to be updated The farm is invested in both human resources and technology Each cow is equipped with a chip to monitor health and development, along with Israeli breeding technology and other advanced technologies from around the world to ensure the best living conditions

General environmental factors directly and indirectly impact the operations of TH True Milk and play a crucial role in the company's development Indirectly, these factors can influence milk consumption trends, subsequently affecting TH True Milk's activities To achieve sustainable growth, TH True Milk needs to consistently monitor and analyze environmental factors This will enable them to formulate appropriate strategies to respond to both opportunities and challenges

Companies have to compete with each other based on quality, product variety, brand strength, and then price competitiveness In terms of product quality, currently, Vinamilk and Dutch Lady are highly regarded brands in the market However, TH True Milk is also a significant and formidable competitor in the fresh milk product category, sourced from dairy herds raised in Nghe An, without the use of imported powdered milk

Vinamilk is the largest dairy producer in Vietnam, with a market

share of approximately 35% Vinamilk boasts a large scale, strong financial capability, and an extensive distribution network Vinamilk possesses the following strengths: Large scale, robust financial capability, widespread distribution network, reputable brand, and a diverse product range

Dutch Lady is a Dutch dairy company, holding a market share of

about 20% Dutch Lady brings with it experience and advanced milk production technology Dutch Lady has the following strengths: Experience and advanced milk production technology, high-quality products, and a rigorous quality management system

Based on their economic strength, experience, production scale,

and current distribution channels, TH True Milk could potentially enter the beverage market in the future Potential competitors for TH True Milk in the beverage industry include current companies such as Tan Hiep Phat, Suntory, Pepsico, and Coca-Cola

The main suppliers of TH True Milk include Fresh Milk Ingredients, Auxiliary Ingredients, Production Materials TH True Milk operates large-scale dairy farms in Nghe An and Thanh Hoa, providing a clean and organic source

of fresh milk for production Additionally, the company collaborates with other domestic dairy farms to ensure a stable supply of raw materials TH True Milk partners with both domestic and international suppliers to import auxiliary ingredients such as milk powder, sugar, flavorings, and more TH True Milk collaborates with both domestic and international suppliers to import production materials like machinery, equipment, and packaging

Customers are individuals or organizations that the company needs to serve and are a crucial factor in determining the success or failure

of the company Therefore, TH True Milk needs to constantly innovate in technology and employ scientific methods to produce increasingly competitively priced products, meeting the growing demands of customers

As human life continues to develop, people desire high-quality products, especially everyday consumer goods like milk Additionally, each customer group may have different preferences in consuming various products

TH True Milk's strategic partners include Cooperation with Masan Group, Cooperation with Vingroup TH True Milk and Masan Group have cooperated to distribute milk through Masan's retail system, including VinMart, VinMart+, VinEco, TH True Milk and Vingroup have cooperated to develop high-tech agriculture in Nghe An, including farming, animal husbandry and food processing

Several environmental factors directly influence the

operations of TH True Milk Firstly, competition plays a critical role Competitors in the market can impact TH True Milk's market share, revenue, and profitability The level of competition in the dairy industry can shape pricing strategies, product differentiation, and marketing efforts Secondly, customer-related factors are significant Consumer demands, preferences, and consumption behaviors directly affect TH True Milk's product offerings, service delivery, and pricing strategies Understanding and adapting to evolving customer trends are crucial for sustaining a competitive edge Furthermore, supplier-related aspects hold substantial importance The reliability and accessibility of raw materials, as well as services provided by suppliers, can significantly influence TH True Milk's production costs, product pricing, and overall profitability Building strong relationships with reliable suppliers is imperative for ensuring a smooth supply chain

TH True Milk's BCG matrix

Pasteurized milk leads the market share of the industry with a high growth rate and often faces fierce competition with the Vinamilk brand and a number of other brands Therefore, the TH True Milk brand has been investing very high capital in product research and production technology TH True Milk has been implementing a "green strategy", developing clean products that are safe and reliable for customers Besides, carry out activities that benefit the community to thereby bring your brand image to consumers TH True Milk always creates trust for customers with its green product lines, ensuring quality safety and environmental friendliness.Over time, pasteurized milk products can maintain a relatively high market share while the industry growth rate declines, and SBUs will be moved to the dairy cell

Yogurt has a low market share and small sales, but at the same time it

is a segment with a high growth rate and quite high profit potential Therefore, TH True Milk is continuing to invest in developing and promoting the diversification of yogurt product flavors From yogurt with its own flavor

or a combination of fruits to seed yogurt lines that are rich in nutrients and good for the health of consumers, especially children Along with that, we are