The report was completed with the entusiastic help of lectures, scientists, colleagues and friends. I would like to express my heartfelt thanks to these precious helps.First of all, I would like to express my profound thanks to Business School National Economics University, especially professors and tutors for their supports and lessons dring my time in EMBA4 program. I would like to expresse special thanks to Ass.Prof.Dr Nguyen Van Phuc, my supervisor who has provided valuable advise, guidance, and insights for my thesis.I also would like to thanks to Mr.Vu Truong Thanh, Director of Hanoi milk factory, who has given me great support and guidance. I would like to thanks to all my classmate of the EMBA4th Intake for entusiastic supports to my accomplishment today.Finally, I would like to thanks to all members in my family, who have give me the best conditions during I attended MAB course.
Table of contents CHAPTER TITLE PAGE ABBREVIATION BVQI : Bureau Veritas Quality International EU : Europe GMP : Good Manufacturing Practice HACCP : Hazard Analysis and Critical Control Points ISO : International Standard Organization SSOP : Sanitation Standard Operating Procedures USA : United State of American WTO : World Trade organization list of Diagram and table ACKNOWlegements The report was completed with the entusiastic help of lectures, scientists, colleagues and friends I would like to express my heartfelt thanks to these precious helps First of all, I would like to express my profound thanks to Business School National Economics University, especially professors and tutors for their supports and lessons dring my time in E-MBA4 program I would like to expresse special thanks to Ass.Prof.Dr Nguyen Van Phuc, my supervisor who has provided valuable advise, guidance, and insights for my thesis I also would like to thanks to Mr.Vu Truong Thanh, Director of Hanoi milk factory, who has given me great support and guidance I would like to thanks to all my classmate of the EMBA-4 th Intake for entusiastic supports to my accomplishment today Finally, I would like to thanks to all members in my family, who have give me the best conditions during I attended MAB course CHAPTER INTRODUCTION 1.1 Rationale of thesis Event of Vietnam becoming the official member of World Trade Organization (WTO) on 07/11/2006 is an important milestone that marks the integration route of Vietnam economy into world economy by bringingalso brings Vietnamese enterprises into a new playing field with much more opportunities and challenges In this playing field, the role of business strategy becomes more and more special important However, but in realityfact many Vietnamese enterprises have not really paid attention to building business strategy for their own Hanoi Milk Factory is directly under Vietnam Milk Joint Stock Company It is facing a lot of difficulties due todue to the pressure of the economy in the integration process and increasing requirements of customers Having thorough awareness about importance of business strategy, Hanoi Milk factory has proposed manya lot of solutions in order to carry out well business strategy successfully and ensure the long term development of factory However, current business strategy of the factory was built up since a long time ago, therefore so that it is still subjective and has not followed closely the real demand of market, especially lacks the competitive analysis that presents the unsuitability to integration orientation and fierce competition as present During a study process at in Academy of Business Administration, approached to business theories and business models of domestic and foreign companies, and received the interest and whole -hearted guideline of Dr Nguyen Van Phuc, I presume to choose the topic “Improving business strategy of Hanoi Milk Factory in the period 2008-2012“ as the theme for my graduation thesis Choosing this theme helps me to apply my knowledge gathered in university to find out some directions as well as solutions to help the factory to improve its business strategy which ensures the sustainable development and increases competitive capacity of the factory in the short term as well as in the long term However, due to limit time and my certain limitations on knowledge so that my thesis can not avoid shortcomings and mistakes I would like to receive opinions of teachers, friends and colleagues 1.2 Research objectives - Analyzing business environment of enterprise, especially factors affecting on competitive capacity of enterprise - Re-analyzing and re-assessing current business strategy of the factory, determining negative aspects and limitations of this business strategy - Suggesting some adjustments for strategy of the factory and basic solutions in order to successfully carry out business strategies of Hanoi Milk Factory in the period with many challenges for enterprises of Milk Industry in the period of 2008-2012 1.3 Objects and scope of study 1.3.1 Object of study - Business system of factory includes production system of Vietnam Milk Joint Stock Company and agent system of factory in Hanoi area - Some retail and wholesales agents in Hanoi area - Some other milk production plants in Hanoi area 1.3.2 Scope of study In this thesis, I have collected and processed relevant data in 2004 until now 1.4 Research methodology - Directly interviewing some key officials of the factory, especially Director, Sales Deputy Director, Chief of Personnel Department and Chief of Financial Department - Interviewing some agents of factories in Hanoi area and the surroundings area of Hanoi - Researching secondary documents and information (research result of scientist and officials carried out in the past years; works and summary reports relating to milk market…) 1.5 Structure of thesis Chapter 1: Introduction Chapter 2: Argumentative basis of the strategy Chapter 3: Analysis of current state of business strategy in Hanoi milk factory Chapter 4: Key adjustments of business strategy of hanoi milk factory for 2008-2012 period and solutions for their implementation Chapter Argumentative basis of the strategy 2.1 Essence, role and classification of business strategies in an enterprise 2.1.1 Essence of business strategies in an enterprise In terms of strategy, it is thought to be science and art of military command which are applied to make overall plans and conduct large-scale campaigns In the 60th decade (the 20th century), the strategy was brought into business and the term “business strategy” appeared Due to differentce approaches, the term “strategy” is, however, explained in various ways Mintzberg says that strategy is a model in the flow of decisions and operation programs Thus, in his opinion, it can originate from wherever it can be studied and supported Mr Porter considers “Strategy as an art of constructing sound competitive advantages for defense” In his opinion, doing business needs tricks, seizure of the investment opportunities, quick payback, etc Raymond Alain Thietart has a different idea which considersthat is “strategy beingis a combination of decisions, actions concerning selections of means and distribution of resources in order to gain certain targets” There is another thought that strategy is a long-term general act program orienting the whole enterprise’s activities to determined targets However to approach it, the nature of business strategy is still to outline the future image of the enterprise in the operation and exploitation area The business strategy defines long-term targets as well as essential solutions to performance of the defined targets Therefore, it is possible to say that business strategy is acknowledged to be a principle or a guideline in business Accordingly, the business strategy and organization of good strategy performance are prerequisites for the enterprise’s success in business 2.1.2 Role of the business strategy Based on mentioned-above ideas, the business strategy plays important role in the survivalexistence and development of an enterprise + The business strategy is a common orientation for all the activities of the enterprise, helpings it determine its own purposes and methodsway in each period, and assure its long and stable development + The business strategy is a basis for all the members to know their tasks and to undertake to them + The business strategy support the enterprise to exploits its strenghts and reduce its weaknesses in orderong and weak points to create competitive advantages as well asand make use of all the competitive opportunities and minimisereduce risks for the enterprise’s operation + The business strategy is a basis or foundation to select business scheme, investment scheme, technological innovation, market extension, etc In conclusion, if each enterprise desires to surviveexist, develop and achieve its goalsadvantages in the fierce competition, it will need a distant vision, and forecast for the fluctuation of the environment andor in other hand, a proper business strategy 2.1.3 Types of business strategy of the enterprise and their applications There are many various business strategies with a lot of classifications subject to each angle 2.1.3.1 Based on the nature and scale of application + Associated business strategy: front association, back association, horizontal association and vertical association +Intensive business strategy: make inroad into the market, develop market, and discover mistakes + Expansionary business strategy: Concentric diversification, horizontal diversification, vertical diversification and mixed diversification + Specific business strategy: joint-venture, association so as to narrow the operation and liquidation 2.1.3.2 Based on levels of the strategy Accordingly, the strategies are classified as the followings: + Corporate-level strategy: includes growth strategy, strategy of stability, withdrawal strategy + Unit-level strategy can be divided into three basic competitive strategies such as: Cost controlled strategy Differential strategy or product strategy Centralization strategy: associated strategy, strategy baseding on the Enterprise’s competitive position and strategy based on the position of line of business + Functional strategy (support strategy): production strategy, financial strategy, human resource staff strategy, technological strategy 2.1.3.3 Based on approach orientation + Concentration strategy and key factors: Throughought directing the strategy, the strategy making is concentration on decisive activities for production and operation of the enterprise + Relative advantage basing strategy Foundations of the strategy making are to analyze and compare products and services of the enterprise with those of its competitors, and thence to find out its competitive advantages used as supports for the business strategy + Offensive creative strategy: In the strategy making, it is necessary to look straight at the problems which are intrinsically considered beingto be popular and impossible to in other way, answering “why?” question and then finding out new discoveries for the enterprise’s business strategy + Free-level exploitation strategy: the strategy made here is to exploit the probable capacities of the factors surrounding the key factor 2.1.3.4 Based on management process + Orientation strategy + Act strategy + Emergency strategy 2.2 Requirements for the enterprise’ s business strategy 2.2.1 The business strategy will support the enterprise to stabilize its directions in business and development Just since the establishment date, Tthe enterprise needs tocessarily identifyied its direction and tasks What is the main task of the enterprise It is hardly difficult for small and middle scale enterprises to determine their business line but it is more complex for the larger scale enterprises to souch because they participate in many business lines After clearly defining its tasks and targets, the enterprise should set upmakes the business strategy with principles which are suitable forwith its targets and supporting its long-term growthdevelopment 2.2.2 The business strategy should be practical Any enterprises have their own strengths and weaknessesong and weak points, so it is important for them to discover and promote their strengths and simultaneously restrict their weaknesses The strategy made by the enterprise will help it exploit its strengths In other words, the business strategy should be practical and assure the effective use of the enterprise’s resources + Assure the effective use of infrastructure and physical capacities of the enterprise +Use resources of thein business in a balanced way + Maintain the rate of growth + Assure the activeness and creativeness offor the demand forecasting of the market 2.2.3 The business strategy is built on the basis of overall analysis on the business environment The business environment is understood as a combination of inside and outside factors which mutually interact or move, indirectly or directly affect the enterprise’s operations The business environment influences the enterprise or in other words it may brings opportunities to the enterprise and sudden risks which the enterprise cannot anticipate TFactors of the business environment has been always move and changinge continuously, so the enterprise is required to adapt itself to these changes in time To adapt itself to the business environment, the enterprise must continuously study and , analyze the environment Doing these well will bring about the enterprise capacities of searching opportunities, finding out dangers and obstacles faced bying the enterprise in order to help it give solutions and have sound foundations and orientation to exact business decisions which will create the competitive benefitsadvantages Therefore, it is confirmed that to make the business strategy or business decisions, managers should pay attention to studying, analyzing and forecasting the business environment Diagram 2.1: Trading environment of business International environment National environment Branch environment Busines ss 30 31 Table 3.5: Rate of customer claim for unsuitable products Product Condensed milk Yoghurt Sterile fresh milk Ice - cream 2005 0,06% 0,08% 0,055% 0,06% 2006 2007 0,05% 0,048% 0,06% 0,05% 0,052% 0,051% 0,066% 0,06% Year (Source: Hanoi Milk Factory) 3.4.2.2 Improvement of quality Maintaining and increasing quality of products and diversifying products by initiatives on products and engineering is limited, namely: - initiatives in 2005 - initiatives in 2006 - initiatives in 2007 In 2007, claim rate of customers on products wais still high (more than 0.05%) For such a large scale factory with large scale , the number of initiatives on products research and engineering wais too little Product improvement and rationalization of the factory only focuseds on improvement of replaced equipments and materials Research on new productss was is still limited 3.4.3 The milk market The increase of output partly proves the consumption level of customers However, if Hanoi Milk Ffactory does not haves not strategiesy for products, its products of factory will not successfully exist in the market because more and more products of big competitors appear in the market such as products of Hanoi Milk Company, Dutch Lady Co., Ltd… Products of the factory are still sold in Northern area from Da Nang city and the Company not haves no any big export order 3.5 Limitation and inadequacies in business strategy of factory 3.5.1 Limitation and inadequacies in business strategy of factory In fact, business strategiesy of Hanoi Milk Factory wereas set up since a long time ago when Government and State haves not given prominence to the role of food hygiene and safety Moreover, domestic competitors have not strong enough to 32 compete with Vinammilk Joint Stock Company However, with current situation when Vietnam has become the official member of World Trade Organization, business strategiesgy of Hanoi Milk Factory areshows rather inadequate and limited that need suitable adjustments 3.5.1.1 Lack of analysis on the business suitability All of us recognize that building business strategiesy will help enterprise to have direction and objectives It is necessary to analyze the forecast about changes inof environment (international environment, regional environment, advantages of enterprise…) However, when Hanoi Milk Factory proposes its strategiesy, it did not pay attention to domestic and foreign competitors Therefore, in its business strategy, Hanoi Milk Factory does not have long term assurance before competitors Business strategiesy of Hanoi Milk Factory areis not really suitable because theyit can not exploit the whole resources in the factory * Regarding to technological resource: Business strategy has not exploited all capacity of machines in the factory Most of the Almost machines are only exploited about 80% of theirits capacity This is too wasteful while the factory only satisfies 85% of product demand of customers * Regarding to human resource: Labor level of the factory is relatively high in general but labors have not promoted all their capacity The nNumber of initiatives is still little and only focuses on the improvement of equipment but research on products is limited 3.5.1.2 Lack of the attention on the quality management Business strategy of Hanoi Milk Factory has not mentioned the of creation ofng new products which are suitable forto demands of the market Product quality has not reached requirements, the number of claims of customers customer’s complaints on products is still highlarge The rRate of failed products is alsostill high (94% of products reach requirements when finishing) Product output is still not high and has not satisfied demand of market (only satisfiesy 85% demand) The nNumber of promotional and product introduction programs are still small and have not attracted customers The nNumber of new products is still small in comparison with objectives (3 new products in 2007) 33 3.5.1.3 Unclear policy for agents and distributors At present, because the factory does not haves not any concrete regulations for agents so many cases of debts have not been clear and paid completely 3.5.2 Main reasons causing the inadequacies in business strategy 3.5.2.1 Lack of strategic, stable material sources Raw material source supplied by some companies (fresh cow milk, milk powder, sugar, cardboard wrapping and tin) is not stable and difficult to control their quality Hanoi Milk Factory is on the defensive in case of big order because of material shortage or because raw materials not reach quality standards In procedure of raw material examination, the factory is completely on the defensive for urgent production Technical materials supplied by Company are also completely on defensive by other suppliers Quality of some materials bought in market can be not controlled 3.5.2.2 Poor recognition on the importance of product quality According to Decree No 163/2004/ND-CP, the factory has determined that milk and products made fromby milk is one in ten products with high danger Factory only applies Quality Management System ISO 900-9001 for its products In the business strategiesy, the factory has not attached special importance to introducing HACCP system into verification of product quality so the that product quality of the factory has not met the demand of international market Meanwhile, import market has very high requirements oin product quality and requires food products must be applied HACCP system as a method to control food safety in international trade 3.5.2.3 Poor management information system Hanoi Milk Factory has not attached special importance to build information supplying system so thehat company has not grasped timely information on market, competitors and customers Due to the shortage of information, so that Hanoi Milk Factory did not heighten its researches to create new products having both good quality and nice model in order to attract customers 34 Chapter key adjustments of business strategy of hanoi milk factory for 2008-2012 period and solutions for their implementation 4.1 Essential adjustments of business strategy of Hanoi milk factory When joining WTO, Vinamilk joint-stock company in general and Hanoi milk factory in particular are required to have proper business strategies so that they can survive and compete with competitors at home and abroad Factory’s business strategiesy wereas built long time ago and are not topical In addition, the factory should have appropriate adjustment to its business strategiesy in order to achieve its targets of export 4.1.1 Essential adjustments to product and service strategies of the factory Because the products are typically made of milk, capacity of bacterial contamination is high and affects health of consumers ‘ health European countries or big markets such as Japan, America, Australia, Canada require products not only to assure food safety in accordance with ISO standard but also to apply the HACCP system In Vietnam, Prime Minister issued decision no 43206/QD-circular dated 20 June 2006 on plans of food safety to 2010, in which “Step by step apply system of food safety quality management according to HACCP Striving to 2010, 100% food producing units is able to apply HACCP” As a result, to make products be accepted by customers and meet the requirements of integration progress as well as the requirements of import markets, to assuringe the development and competiveness with competitors, Hanoi Mmilk Ffactory should have all the products comprehensively inspected by HACCP besides strategies of models, packages of products At present, there are many products with both good quality and appropriate model or package catching consumers’ eyes in the milk market Moreover, the factory needs particular strategies so that it can produce or new and advanced products or articles in comparison with existing ones each year Consequently, Hanoi Mmilk Ffactory should adjust and supplement further to its strategies of products and services: - Proposed products have to be processed and satisfy international inspection 35 standard HACCP - Innovate models of products - Develop products - Accompanied service should be usual and the best 4.1.2 Adjustments to strategic market and marketing strategy 4.1.2.1 Adjustments to strategic market Each market has its private customers so the factory should classify the types of markets in order to set upfor proper strategies To so, it is necessary to have a department which ispart in charge of researching thestudying market and customer’s needs and wants and then proposing appropriate solutions It is advisable that the factory puts market factors to the important position following production strategiesy, studying requirements and tastes of each customer and market Objects of the factory are not only neighboring Asian countries but also European countries because it is certainly to take interest in them when joining WTO 4.1.2.2 Adjustments to marketing strategy When living quality is remarkly inproved, the consumers not only have high requirements onabout product quality but also take consideration of price and stability of the products, so enterprises need to launch Marketing campaignsstrateg whichy are representeded not only on television but also on means of mass communication such as press, radio Advertisement should be short, concise and suitable with each different object of customers, so it is advisable that Hanoi Mmilk Ffactory should adjusts its promotional methodsMarketing strategy properly because: - Advertisement is practical and represented on means of mass communication - Different Marketing strategy, advertisement should be established for each private market - Product advertising campaigns should be implemented -> times a year 4.1.3 Essential adjustments to strategy of developing human resource of the factory WorkersHuman resource directly produce products so it is necessary to emphasize the attach much importance ofto training, recruiting and improving human resource in order for them to have enough knowledge to identify and dosolve 36 their tasks works self-consciously and responsibly Human resource with Hhighly skilleds and firmly professional workers will reducelimit errors in production and work more effectively It is suggestedadvisable that the factory needs adjustments to particular strategiesy toof developdevelop ing the human resources in order to assure health, professional qualification, skills of the labor, to makinge the most use of their skills and experiencequalification 4.1.4 Essential adjustments to financial strategy of the factory As a member of Vietnam Mmilk Jjoint Sstock Ccompany, most of the finance of the factory depends on the company However, the factory should be more active in financial mattere if it desires to survive and develop It is advisable that the factory should have policies to contact financial banks to be active in production and business in order to capital sources for its operation; makinge its capital structure with dept due fluctuate at 80% and 20% 4.1.5 Competitive strategy of the factory for new period In tendency of integration to global economy as at present, potential competitors are actually the top interests of the enterprises in general Vietnam has become an official member of the Word Trade Organization (WTO) and joined international economic forums and organizations Appearance and direct participation of top suppliers of products made of milk in the world are obvious Up to then, Vietnam Mmilk Jjoint-stock Ccompany in general and Hanoi Mmilk Ffactory in particular will facemeet a lot of difficulties in holding its current positions firmly Therefore, it is advisable that Hanoi Mmilk Ffactory should build practical competitive strategies which are y suitable forwith customer’s trends present tendency 4.2 Major solutions to performance of business strategy of the factory To achieve targets of Vietnam Mmilk Jjoint-stock Ccompany in general and targets and business strategies of Hanoi Mmilk Ffactory in particular, it is necessary to carry out certain solutions in order to improveperfect its business strategies 4.2.1 Improving business system 37 4.2.1.1 Improving supply system and management mechanism for supply system * Target: Select materials suppliers, who apply system of quality management, in respect of materials directly used for the product processing, for the factory * Estimated results: - Quality of materials provided to the factory will be more stable and meet requirements onabout food safety and origins - The factory will be active in production and accordingly reduce time waiting for materials * Methods of implementation: - Check suppliers, select suppliers on the basis of price and capacity of provision, give priority to who apply system of quality management ISO and HACCP - Search more new capable suppliers - For sources of fresh milk provision, the factory has to organize and control from breeding to milking besides colleting on the spot Quality of materials is required to be inspected by ISO and the system HACCP as well 4.2.1.2 Strengthening and step by step expanding the system of agents and consumption system * Targets: Expand the market not only in Vietnam but also in international market * Estimated results: Make a firm position in domestic and international market * Methods of implementation: - Set up more wholesalers and retailers places - Set up more distribution channels agents fromalong North to South - Regularly check and update information about the business picture of agents and manage agents systematically - Make use of agents, distributors, wholesalers and retailers places to collect responses from customers 4.2.1.3 Improving research and development works For the Hanoi Mmilk Ffactory, R&D works has not been invested much and 38 attention toof the technical board is limited *Targets: - Develop products in both quality and quantity - Increase in competitiveness * Estimated results: - Exploit resources of the factory effectively - Become foundation for the factory to carry out system of quality management ISO & HACCP comprehensively * Methods of implementation: - Set up quality groups in order to display effectiveness of the quality management work - Organize research and combine it with studying demand on product, technique to manufacture new products 4.2.2 Improving business management work * Targets: Support the factory to implement the business management better * Method of implementation: To have an effective management, the factory should comprehensively carry out the following works: - Establish a departmentpart in charge of setting upmaking strategies of the factory - Monitor and update the management information system - Promote and expand systems of agents - Make the most use of open policies and investment encouraging policies of the State - Establish relations with financial banks 4.2.3 Improving the management information system * Targets: - Modernize the management information system - Usually and sufficiently uUpdate text of law about quality standards, information about products and goods, information about services in the market usually and sufficiently 39 * Estimated results: - Assist leaders of the factory to have timely and exact information to make quick and effective decisions on management * Methods of implementation: - Do research and identify demands on information of each part ofin the factory - Equip computers, internal network, internet sufficiently to departments, parts related to management work - Update information about workforce, products, materials, customers, suppliers and competitors, ect - Update responses and ideas about products and system implementation from customers and staff in the factory - Build data base systems 4.2.4 Improving quality of human resource of the factory * Targets: - Assure that employeers are capable enough to meet present and long-term requirements of the factory - Make employeers aware of the fact that the development of the factory is accompanied with their benefits * Estimated results: - System of food safety quality management will be done more effectively - Employeers will complete their assigned duties with high quality well and accept new technology - Strive to work without errors, closely and systematically control all the dangers to reduce production costs, raisinge labor productivity, therefore so as to decreasinge the product price and increasinge product’s competitiveness in the market * Methods of implementation - Put emphathesis on theAttach special importance ofto training or teaching professions suitable forwith real works and assigned positions - Recruiting new labors should be oriented to the factory’s expansion and development 40 - Arrange labors logically so that it is suitable with each person, work, qualification and profession in order to pay appropriate amounts of worth salary - Give entitlement policies to high-profession labors and to people who haves proposals that bringing great economic effectiveness to the factory - Encourage labors to learn by themselves to improve their qualification and profession, supporting partial labor costs for the labors - Coordinate with social organizations or unions to educate the labors to be aware that their work quality will benefit them and the whole community -Recruit and enlarge technical labors, who have degree of university and college in the field of technology, food machine and so on, for production shop, mechanical and machine-building shop and electro-mechanic department who have degree of university and college in the field of technology, food machine, ect - Be active in repairing and maintaining machine, equipment - Training form applying theseree following ways is practical and economical: • Learn and work regularly (on-the-job training) This is a basic way which the factory should applybe applied because it is economical and is the most effective Teachers are persons who haves real experiences in the factory Literatures are problems happening in the factory This form is very suitable with and practical for parts and positions ofin the factory, such as operator, machinery repairer, package worker, ect The trainees can immediately practice and acquire knowledge to repair their errors However, there are many implicit risks due tobecause of labors’ passive and limited views; and till a certain time effectiveness of the training will be reduced • Organize training classes in the factory In this way, the labors in the factory will have broader views, updated methods and learn experience learneds from other units Parts will base on the approved plans to prepare content of training and to organize the training as registered duration • Assign staff for outside training (off-the-job training) This form will help the factory quickly approach new technology and the trainee will update new knowledge The factory should have many training strategies, selecting qualified young staffs who are heartfelt with the factory, creatinge stable reserves of personnel 41 4.2.5 Improving equipment, technology of the workshop and carry out maintenance of machine and equipment * Targets: - Ensure production capacity to satisfy customers - Ensure food safety quality - Guarantee the time of delivery - Guarantee quantity in accordance with the order * Estimated results: It is necessary to invest in machinery, workshops and to maintain regularly until the factory has enough capacity to meet requirements of customers about quantity, quality, and time of delivery * Methods of implementation: - Intensify the labors for technical and electro-mechanic parts in order to guaranteeensure themaintenance, and repairs and maintenance of machines and equipment - Make particular plans for the maintenance and repair work Prepare replaceable materials sufficiently, and perform the plan of maintenance - Plan overall platform of the factory, improvinge the area of workshop according to requirements of the HACCP - The factory needs to invest, construct and enlarge its scale for a long time, makinge project for synchronous new equipment - Rehabilitate internal road, sewage drainage system, ect 4.2.6 Solutions to implementing systems ISO and HACCP comprehensively * Targets: - Apply ISO and HACCP to aAll the parts of the factory apply ISO and HACCP - Comprehensively connect both systems of quality and food safety management between factory to company * Estimated results: - Reduce hidden costs and faults caused by systems, reduce hidden cost - Improve effectiveness of management systems - Improve product quality * Methods of implementation: 42 - Re-plan the overall platform of the factory; improve the area of workshop in accordance with HACCP - Set up HACCP team and implement HACCP management - Check procedures on documents, process in order to avoid repetition between HACCP and ISO - Implement the management in accordance with HACCP at the worker kitchen 43 Conclusion Building and implementing business strategy is still a new issueproblem for many Vietnamese enterprises, both in theoretical and practical aspects Changes inof business environment possibly help enterprise to growdevelop rapidly but also bring many risks to enterprise and lead tothe bankruptcy The strict and exact analysis and assessment on business environment will help business administrators to establish and adjust suitably their business strategy so that enterprise can develop unshakably Strategy and strategy administration areis indispensable in a modern enterprise Strategiesy draws long term step for enterprise Recognizing and analyzing opportunities and dangers from business environment, as well as correctly assessing its current state, enterprise will have a right direction and can create competitive benefitsadvantages in comparisoned to competitors in order to direct to stability and sustainable development Realizing that building and forming strategiesy of an enterprise is a very important issueproblem, after studying and researching problems existing at Hanoi Milk Factoryperiod, this thesis has achieved the following results: - Systematize basic arguments in building business strategiesy - Suggest opinion and basis in building business strategiesy of an enterprise - Suggest procedure in building business strategiesy in enterprise - Analyzing main properties affecting on Hanoi Milk Factory - Assess limitations and inadequacies in business strategiesy of Hanoi Milk Factory - Suggest some solutions to complete business strategiesy of Hanoi Milk Factory - Complete business system - Complete business management operation - Complete management information system - Increase quality of human resource of the factory Due to limitations of time and personal experience, my thesis could not avoid certain shortcomings and mistakes I would like to receive opinions of experts, teachers and readers who are interested in this field references Ordinance on food safety Social Political Publishing House (2003) Decree No 163/2004/ND-CP dated 7/9/2004 of Government Vietnam Standard 5603:1998 CAC/RCP1 -1969 Rev (1997): Practical procedures of general principles on foods safety 44 John Naisbitt: Paradox in international business Statistic Publishing House Supplying administration Doan Thi Hong Van Statistic Publishing House 2004 Philip Kotler: Principles of marketing Prentice -Hall David A Secenzo, Stephen P Robbins (2002), Human reseurce Management, 7th John Wiley & Son, Inc Irene Chow, Neik Holbert, Lane Kekkey, Julie Yu (1997), Business Strategy: An Asia -Pacufuc Ficus, Prentice Hall Gregory G Dess, G.T Lumpkin, Marilyn L Taylor (2004), Strategic Management, Irwwin/McGraw-Hill 10 Henry Mintzberg, James Brian Quinn, John Voyer (1995), The Strategy Process, Collegiate Ed Prentice Hall 11 Michiel R Leeder, Harold E Feason (1977), Purchasing & Suppply Management, 11th E Feason (1977), Purchasing & Supply Managemeent, 11th Ed Irwwin/ McGraw -Hill 12 Peter Wright, Maek J Kroll, John Parnell (1996), Strategic Management: Concepts and Cases, 3rd Ed Prentice Hall 13 Rechard L Daft (1989), Organization Theory and Design, rd West Publishing Company 14 Thomas L Wheelen, J David Hunger (2004), Strategic Management and Bsiness Policy` [...]... Labors of Hanoi Milk Ffactory are stable and increase regularly every year - In 2003, the number of labors of the factory is 253 - In 2004, the number of labors of the factory is 257 - In 2005 the number of labors of the factory is 272 - In 2006, the number of labors of the factory is 278 - In 2007, the number of labors of the factory is 296 Human force of the factory has relatively high professional... applying new strategy and popularize strategy in the whole enterprise so that all members of thein enterprise can implement that strategy together 14 Chapter 3 Analysis of current state of business strategy in Hanoi milk factory 3.1 Establishment and development of Hanoi milk factory Hanoi Milk Factory is located next to Phu Thinh Industrial Zone, Gia Lam district, Hanoi city It and was build and officially... production line reached only 30-40% machine’s capacity However, thebut operation of Hanoi Milk Ffactory has grown since the beginning of 2007 Table 3.1: Production result of Hanoi Milk Factory Year Total production (VND) 2005 2006 2007 467.786.000.000 520.453.000.000 598.688.000.000 (Source: Hanoi Milk Factory) 3.2 Main properties of Ha noi milk factory affecting on strategy of factory Properties mainly affecting... According to theBasing on demand of production development which is suitable to the quality policy and objective of Vinamilk Joint Stock CompanyCompany, Hanoi Milk Ffactory should builds up an annual training plan to submit to the Company for approval such as new training, re-training, external training, in- place training especially: - Training newly recruited workers - Training workers in case of work change... Development objectives and strategy of Vinamilk Joint Stock Company * Based on production and business properties, Vinamilk Joint Stock Company proposes the following development objectives as follows: - Gathering all resources to build Vinamilk to become a leading food group in Vietnam and in region with diversified business line and products - Increasing processing capacity of Vinamilk from 491 liter/year... because theyit can not exploit the whole resources in the factory * Regarding to technological resource: Business strategy has not exploited all capacity of machines in the factory Most of the Almost machines are only exploited about 80% of theirits capacity This is too wasteful while the factory only satisfies 85% of product demand of customers * Regarding to human resource: Labor level of the factory. .. Northern area from Da Nang city and the Company do not haves no any big export order 3.5 Limitation and inadequacies in business strategy of factory 3.5.1 Limitation and inadequacies in business strategy of factory In fact, business strategiesy of Hanoi Milk Factory wereas set up since a long time ago when Government and State haves not given prominence to the role of food hygiene and safety Moreover,... factor for setting upmaking the business strategies of the enterprise 2.3.1.3.3 Financial resource For the enterprises,F financial resource plays an important role in preparing information for the strategy construction Status of financial indexes evaluates the enterprise’s position in the market and is used as foundations to make the business strategies 2.3.1.4 Select strategies of the enterprise for... of factory Hanoi Milk Factory has 4 production lines with advanced technology which is currently applied and used by big groups in the world: - Production line of sweetened condensed milk - Production line of sterile fresh milk - Production and processing line of yoghurt - Production and processing line of ice-cream Normally, the factory organizes 3 work shifts per day, 3 periodical day-off for maintaining... growthdevelopment of the enterprise in 11 future The economic environment, which mainly influencesing the enterprise, consists of GDP rate of economic growth, macroeconomic policies, business cycle, rate of inflation rates, unemployment, rate of exchange rates, financial system and , market rate of interest rates In tendency of integration into the international economy as at present, this factor brings many ... Limitation and inadequacies in business strategy of factory 3.5.1 Limitation and inadequacies in business strategy of factory In fact, business strategiesy of Hanoi Milk Factory wereas set up since a... choose the topic Improving business strategy of Hanoi Milk Factory in the period 2008-2012 as the theme for my graduation thesis Choosing this theme helps me to apply my knowledge gathered in university... number of labors of the factory is 272 - In 2006, the number of labors of the factory is 278 - In 2007, the number of labors of the factory is 296 Human force of the factory has relatively high professional