final project mansan group

CHAP 1: BUSINESS INTRODUCTION1.Overview Masan Group :- Company: Masan Group Joint Stock Company.- Stock ticker: MSN- Established: 1996- Head office: District 1, City.. Ho Chi Minh, Vietn

FINAL PROJECT

MANSAN GROUP

Year 2021

Subject Name: Business Analysis

Subject Code: INS 3005

Student Name: Nguyễn Thị Vân Hương - 19071173

Nguyễn Thị Trà Mi - 19071203

Lê Thị Minh Hòa - 19071158

Lê Đình Hoàng - 19071160

DECLARATION: We declare that

 No part of this project has been copied from any other person’s work except where the due acknowledgement is made in the text

 We agree that the contributions of each member are as following:

Signature (Group leader): ……….Date: ………

SUBJECT CODE: INS 3005 LECTURE: Lê Thị Mai SEMESTER: 2nd, 2021-2022

CHAP 1: BUSINESS INTRODUCTION 4

1 Overview Masan Group : 4

2 Business Objectives : 6

CHAP 2: ANALYSIS AND SOLUTION: 7

1 Goal 1: Kiosk food at Winmart and Winmart +: 7

1.1 Analysis: 7

1.2 Solution: 9

2 Goal 2: The company's total net revenue increased by 20% in 2022 and 2023: 11

2.1 Analysis: 11

2.2 Solution: 15

3 Goal 3: More human resource training at Masan Consumer 16

3.1 Analysis: 16

3.2 Solution: 18

CHAP 3: CONCLUSION: 19

1 Conclusion: 19

2 Reference: 20

CHAP 1: BUSINESS INTRODUCTION

1.Overview Masan Group :

- Company: Masan Group Joint Stock Company

- Stock ticker: MSN

- Established: 1996

- Head office: District 1, City Ho Chi Minh, Vietnam

- Activities: retail, branded food & beverage, branded chilled meat business,financialservices , high-tech material

- History of formation and development:

 Formerly a small-scale noodle factory in Russia, established in 1996(The predecessor company of Masan Group was established in 1996,operating in the field of Asian food and consumer goods in theEastern European market In the early days, Masan mainly focused onthe Russian market with the popular product being instant noodles.)

 2001: Masan Food brand returned to the country, marking theappearance of Masan brand in the market

 Noverber 2004: Established Ma San Maritime Joint Stock Company(MSC), with initial charter capital of 3.2 billion VND

 August 2009: MSC changed its name to Ma San Group Joint StockCompany

 2012: Become a leading enterprise in Vietnam This is the milestoneMasan is officially listed on the stock exchange in Vietnam

 July 2015: The company was renamed again to Masan Group JointStock Company

 December 2018: Masan MEATLife successfully introduced to themarket the cool meat brand “MEATDeli”

 June 2020: The CrownX Joint Stock Company officially came intooperation This is the company that owns Masan Consumer HoldingsJoint Stock Company “MCH” - a leading company in the field of fast-moving consumer goods and VinCommerce Commercial ServiceJoint Stock Company “VCM” - a sales platform Modern retail “MT”ranks No 1 in Vietnam in terms of market share

 April 2022: Masan Group Joint Stock Company announced thecompletion of an investment agreement of 65 million USD to buy25% of the shares of Trusting Social Joint Stock Company, asubsidiary in Vietnam of Trust IQ Pte Ltd ( “Trusting Social”) is

headquartered in Singapore The cooperation agreement with TrustingSocial contributes to accelerating Masan's transition into an integratedtechnology-consumer ecosystem from offline to online.

- Passion: To be Vietnam's pride by uplifting the material and spiritual lives ofVietnamese consumers

- Mission: To provide quality products and services for Vietnam's population

of nearly 100 million people, enabling them to get more value for money ontheir daily basic needs

 Masan High-Tech Materials, formerly known as Masan Resources, isthe largest resource company in the private sector in Vietnam Thespearhead of Masan High-Tech Materials is the development of the NuiPhao multi-metal mine project in Thai Nguyen province

 Masan MeatLife is a producer, distributor of animal feed and supply ofcool meat products applying the 3F (FEED-FARM-FOOD) platform

“from farm to fork” In which, Masan Life's MeatDeli cool pork product

is highly appreciated by consumers for its quality

 Techcombank:is one of the largest joint stock commercial banks inVietnam Masan Group is holding a 15% stake in Techcombank andMasan Group is currently the largest shareholder of this bank

- Setting the goal of becoming the number 1 business group in Vietnam,throughout the years, Masan Group has always been developing Below aresome of the proud achievements that this corporation has recorded in theprocess of development:

 Best M&A deals of 2019-2020 by Vietnam M&A Forum

 Asia Corporate Excellence & Sustainability Award 2021

 Top 50 Best Vietnamese Listed Companies 2021 – Forbes

 Vietnam’s 50 Best-performing Companies

 Top 10 largest private enterprises in Vietnam in 2021 – VietnamReport

 Top 10 Trusted and Used products

- Finance: Masan achieves net revenue of more than 88 trillion dong in 2021

In 2021, the COVID-19 pandemic negatively affected Masan's systemexpansion, launch of new innovations, and supply/production chain.Overcoming these difficulties, The CrownX (“TCX”), the integratedconsumer-retail platform WinCommerce (“WCM”) and Masan ConsumerHoldings (“MCH”) achieved net revenue of VND 58 trillion in 2021, growth

of 6.9% year-on-year (“YoY”) Net revenue in Q4/2021 increased by 12.6%YoY, showing a positive signal for growth in fiscal year 2022 In 2021,Masan's consolidated net revenue reached VND88,629 billion, up 14.8 %compared to 77,218 billion VND in 2020

2.Business Objectives :

- Goals 1: Kiosk food at Winmart and Winmart +

- Goals 2: The company's total net revenue increased by 20% in 2022 and2023

- Goals 3: More human resource training at Masan Consumer

CHAP 2: ANALYSIS AND SOLUTION:

1 Goal 1: Kiosk food at Winmart and Winmart +:

- In 2 years after receiving the transfer of VinMart and VinMart+ fromVingroup, Masan Group has lost a total of more than 5,600 billion VNDfrom the retail segment After renaming VinMart and VinMart+ toWinMart and WinMart +, in 2022, the WinMart chain achieved a revenue

of VND 9,924 billion and Winmart + achieved a revenue of VND 20,948billion It is worth mentioning that, while the revenue of WinMart + minisupermarkets increased by 7.7%, the revenue of large store chainWinMart decreased by 6.6% compared to 2021

1.1.2 Masan's Point of Life Strategy:

- Under the management of Masan, this supermarket chain not onlyfollows the direction of traditional retail, but is also oriented to convertinto selling points in the "Point of Life" strategy From mid-2021, Masanhas started putting Techcombank stores inside WinMart+ supermarketsand then Phuc Long, Reddi, and Phano Pharmacy kiosks Masan callsthis model a mini-mall and “bets” the door to success In 2021, this chainhas covered 68% of consumer demand through the system Customerswho come to WinMart+ points according to the multi-experience mini-mall model are now not only housewives, customers shopping foressential goods, but also young people who love trendy tea drinks Need

a point to buy essential necessities at WinMart+, customers can buy

health care products, make quick transactions at Techcombank automatedbanking points, join the roaming and experience home young Redditnetwork.

- From this strategy, our team had the idea to open a food service on thespot at the supermarket with ready to eat food served quickly

1.1.3 What is the business situation of Phuc Long after joining Winmart?

- Masan said that the purpose of integrating Phuc Long into its WinMartsupermarket system is to improve the efficiency of space use – with thegoal of 'Phuc Long will bring in 20% of the revenue of each WinMartsupermarket' At the same time, Phuc Long will also be a piece for Masan

to accelerate its Point of Life ("POL") strategy by building and piloting amini-mall, a model that serves a variety of essential products andservices (including necessities, pharmaceuticals, financial products andentertainment services, telecommunications account for 60-80% ofconsumer spending of Vietnamese) on an integrated ecosystem fromoffline to online

- Masan Group (MSN)'s financial statements for the first quarter of theyear consolidated business results of Phuc Long milk tea chain afterincreasing its ownership to 51% in January 2021 The total revenue ofthis chain in the last two months reached VND 257 billion, completingabout 10% of the full year revenue plan of VND 2,500-3,000 billion.Phuc Long contributed 1.4% to Masan's total revenue in the first quarter,but accounted for 3.5% of gross profit

 The staff has not been trained in serving food on the spot like this,

so it will cost more money and time to train staff



 The premises in most supermarkets are quite small, so the seatsare not spacious and airy

- Opportunities:

 Masan has a foothold in the Vietnamese market and is alwaystrusted and chosen by customers The company diversified itsinvestment areas They invest in food products with manyproducts such as cowboy pork sausage, chinsu chili sauce oromachi instant noodles, suitable for Vietnamese consumers.

 Referring to the chain development model, it is impossible not tomention the mini-mall model - one of the strategic "cards" ofMasan The mini-mall's goal is to serve 30 to 50 millionconsumers by 2025, with an average revenue of 7-8 billionUSD/year, accounting for 50% of Vietnam's retail market share

 Adding the ready to eat service segment will help Masan increasethe revenue of the Winmart supermarket chain

- Threats:



 Currently, on the market, there are quite a few large supermarketsopening food kiosk food services such as at Aeon Maxvlue - asmall supermarket opened by Aeon Group to reach manycustomers



 In 2014, Aeon brought the commercial operation model intoVietnam, with a very developed foundation in Japan and SoutheastAsian countries such as Cambodia, Indonesia, With the positiveresponse of the people to the center Aeon Mall will be a bigchallenge for the retail supermarket chain in Vietnam, as well asfor Masan's Winmart

 Ready to eat products such as sausages, pasta, fried rice, friedchicken bring convenience and save cooking time

 In addition, to be different from the food kiosks of othersupermarkets, we will have healthy food such as salad, smoothies,oat yogurt, it's for mothers nowadays who tend to live healthier,and care more about their own health than mothers in the past

 The price of mixed noodles, pasta, fried chicken, fried rice willrange from 25000-30000 per export, we use price competition toattract customers Our prices will be lower than other competitivestores from 10000-15000 with the same quality.

 Besides, we plan to cooperate with Techcombank to launch aproject, when customers pay by card, they will receive a discount,voucher for the next use or accumulate points through Winmart,Winmart + app, towards a Smarter, more convenient shopping

- Place: Taking advantage of the vacant position in the supermarket chainWinmart and Winmart, we will arrange to have tables and chairs to eat onthe spot, depending on the large or small space, we can arrange a suitablekiosk

- Promotion:

 We will hang the opening banner in front of the supermarket 10days in advance to approach loyal customers or go to thesupermarket

 Along with many attractive offers buy 1 get 1 free, 50% discountwhen buying invoices over 200,000 VND for the first 50customers,

 In addition, we will run facebook and Instagram ads on the officialpage of winmart, Winmart+

is to scale up "Point of Life" – an integrated platform from offline toonline essential products and services As a result, Masan will build aloyal customer base, deliver outstanding value with far-reachinginfluence and help consumers pay less for daily necessities." Theintegration of Phuc Long Kiosk at WinCommerce points of sale hashelped the average number of invoices per day increase by 16% Masancontinued to pilot Winmart+ integrated store model, Phuc Long kiosk,Phano pharmaceuticals and Techcombank transaction point and achievedinitial successful results This is the motivation for the Board of Directors

to continue to accelerate the replication of this model in Masan's retailsystem In addition, Masan has added a new piece of the puzzle to thePoint of Life consumer ecosystem with the acquisition of Mobicast JointStock Company, a startup in the field of virtual mobile networks Theexpansion into the telecommunications sector is the basis for Masan todigitize the platform now mainly in offline channels, build a loyaltyprogram to bring value to consumers in the long term, while reducing thecost of attracting new customers

2 Goal 2: The company's total net revenue increased by 20% in 2022 and 2023:

2.1 Analysis:

2.1.1 Business performance:

Business performance analysis which is expressed in major financial ratios:

- Gross profit margin: (Unit: Million VND)

(Source: Figures 2.1: Data sheet for calculating gross profit margin)Through the consolidated income statement, we can see that the coefficient of totalprofit over the past 2 years tends to fluctuate Specifically: In 2021, the company sellsmore goods than in 2020, making the cost of goods sold and sales increase inevitable,the cost of goods sold will increase from 59,329 billion dong in 2020 to 66,439 billiondong in 2021 corresponding increase of 12.08% Meanwhile, sales also fluctuated with

an increasing trend of 13.85% The growth rate of cost of goods sold was slower thanthe growth rate of sales, causing the gross profit coefficient to increase slightly from24.77% to 25.95% The coefficient of total profit increased over 2 years, showing thatthe enterprise's control of input costs is good

- Operating Profit Margin:

(Source: Figures 2.2: Data sheet for calculating operating profit

margin)Through the consolidated income statement, we see that the operating profit margin ofthe company has increased gradually over the past 2 years, specifically in 2021, theoperating coefficient will be 18%, increasing by 10.27% compared to 2020 This showsthat the company effective cost management of the company Specifically: From 2020

to 2021, operating profit coefficients are 7.73% and 18%, respectively The coefficient

is significant with 100 VND of net revenue generated, the company can get 7.73 VND

in profit before tax and interest in 2020; 18 dong in 2021 The company needs tomaintain and improve cost-saving measures so that with a dong of net revenue, it willgenerate more dong of profit before tax and interest in 2022

- Return on sales (ROS)

(Unit: Million VND)