quản trị chiến lược công ty Vinamilk (bản tiếng anh RESEARCH ON THE STRATEGIES OF VINAMILK COMPANY)

RESEARCH ON THE STRATEGIES OF VINAMILK COMPANY quản trị chiến lược công ty Vinamilk Phân tích hoạt động sản xuất, marketing, nhân sự , tài chính của Vinamilk Đề ra chiến lược cho Vinamilk I. The company : VINAMILK II. Information about Vinamilk : 1. Vision, mission and core values • Vision : Vinamilk will become a symbol of international stature in the food and dink sector, that everybody can trust in safe and nutrition products. • Mission: Bring commmunities the most nutritiousness in all respects, love and responsibility with the life • Core values : Ethics : Respect established standards and realize ethically Equity : The company is equitable with employees, clients, suppliers and other stakeholder groups Integrity : Integrity, honesty in behaviours and all of the transactions Respect : Respect ourself, colleagues, the company, partners and have a cooperation with respect Compliance : Comply with laws, codes of conduct, statutes, policies and rules of the company Responsibility : We are always conscientious with works and we do with the highest responsibility Stable development : Our business focuses on the foundation of lasting benefits to clients, shareholders and other stakeholder groups Creation : We are very appreciative about innovation and creativity in quality, effective improvement of activitites Human development : Our business focuses on all of the knowledge and skill development for employees Clients at the centre : We always give consumers the best things. We focus on putting the clients at the centre of the business

RESEARCH ON THE STRATEGIES OF VINAMILK COMPANY Group name : Golden key Members and missions : Members Studen code Missions Hà Kiều Trang 20128667 CEO Lê Thanh Huyền 20128621 Finance/ account Nguyễn Mỹ Huyền 20128622 Marketing Hồ Trà Thục Uyên 20128670 Produce Nguyễn Khánh Lan 20128629 Human resource 2 I Information about Vinamilk : Vision, mission and core values • Vision : Vinamilk will become a symbol of international stature in the food and dink sector, that everybody can trust in safe and nutrition products • Mission: Bring commmunities the most nutritious in all respects, love and responsibility with the life • Core values : - Ethics : Respect established standards and realize ethically - Equity : The company is equitable with employees, clients, suppliers and other stakeholder groups - Integrity : Integrity, honesty in behaviours and all of the transactions - Respect : Respect ourself, colleagues, the company, partners and have a cooperation with respect - Compliance : Comply with laws, codes of conduct, statutes, policies and rules of the company - Responsibility : We are always conscientious with works and we with the highest responsibility - Stable development : Our business focuses on the foundation of lasting benefits to clients, shareholders and other stakeholder groups - Creation : We are very appreciative about innovation and creativity in quality, effective improvement of activitites - Human development : Our business focuses on all of the knowledge and skill development for employees - Clients at the centre : We always give consumers the best things We focus on putting the clients at the centre of the business The formation and development - - - 1976: Formerly, this is the Southern of milk and coffee company , under the Gereral Department Food Industry, with units under Thong Nhat milk factory and Truong Tho milk factory 1978: The company added more factory, that were Bich Chi mill factory, Lubico candy factory and Bien Hoa coffee factory The company was managed under The industrial and food Beside that, it renamed into “The complex enterprise milk, coffee and confectionary I” 1989: Dielac powder milk enter operation, milk powder products nutritional powder for children launched in Vietnam for the first time 1991: The “White revolution” starting formation built program “fresh raw milk” area First time company introduced UHT milk products and yogurt in Vietnamese market 3 - - - - - - 1992: “The complex enterprise milk, coffee and confectionary I” officially renamed into “Vietnam milk products company and under the managed of The ministry of light industry 1994: In the strategic of expansion, development and response market demand in northern of Vietnam, the company decided to build Hanoi milk factory On 7/10/1994, the company established sales branches in Hanoi, business manager of the provinces in the Northern region 1996: The joint venture with JSC Quy Nhon Frozen to establish a joint venture enterprise “Binh Dinh milk” Milk Factory went into operation in Hanoi In 5/1996, the company established sales branches in Danang, business management the provinces in the central region 1998: In order to expand and develop the business activities in the southwestern provices, the company established a sales brach in Can Tho 2001: Completed and put Can Tho milk factory in westhern came into operational 2003: Officially converted into a joint stock company in November 2003 and renamed JSC Vietnam milk suitable for the active form of the Company 2004 : Acquired Corporation Saigon Milk Increased charter capital to VND 1,590 billion 2005 : Purchase of the remaining shares of the joint venture partners in Binh Dinh Milk Joint Venture Company, renamed Binh Dinh Milk Joint Venture Company to Binh Dinh Milk Factory Nghe An Milk Factory inaugurated on June 30th 2005 2006 : Vinamilk officially traded on the Ho Chi Minh City Stock Market on January 19th 2006 In June, An Khang Clinic opened in Ho Chi Minh City that provides nutrition consultancy services, pediatric consultancy and general check-up all specialized centers This is the first clinic in Vietnam administered by the electronic information system In November, startup programs dairy farms starting from the acquisition of Tuyen Quang dairy farm with 1,400 cows This farm went into operation shortly after The Company makes strategic investments abroad by the joint venture to build a milk processing plant in New Zealand with a capital of 10 million, with 19.3% of charter capital Acquired 100% equity from VietNam F&N Co., Ltd and renamed to Vietnam milk powder Company This is a project to build a new 100% the second Milk Powder Factory of company Acquired 100% remaining shares in Lam Son Milk Join Stock Company to become Lam Son Milk One Member Limited Liability Company Opened and put Beverage Company in Binh Duong came into 4 - - - - operation Vietnam milk Joint Stock Company - Vinamilk was Forbes Asia honored and awarded the Top 200 Best business in Asia in 2012 This is the first and only a company of Vietnam was Forbes Asia recognized in this list 2007 : Buy 55% controlling shares of Lam Son Dairy Company in September 2007, based in Le Mon Industrial Zone, Thanh Hoa Province and renamed to Lamson milk Join Stock Company 2008 : Completed and put Tien Son Milk factory in Ha Noi came into operational 2009 : In September, inaugurated Nghe An dairy farms This is a modern dairy farm in Vietnam with farm size is 3,000 cows 2012 : In June, Danang Milk Factory came into operational and formal production 2013 : On October 21st 2013, the Department of Planning and Investment in Thanh Hoa issuanced of certificates of business registration for Thanh Hoa Unified Dairy Cows Limited liability company Vinamilk held 96.11% of the charter capital of the holding company and become the dominant power in this business On December 6th 2013, the Ministry of Planning and Investment issuanced of certificate No 663 / MPI-outward investment for the Company regarding the Company acquired a controlling share (70%) in Driftwood Dairy Holding Corporation, in California , USA 2014 : On June 1st 2014, the Ministry of Planning and Investment issuanced of certificate No 667 / MPI-outward investment to the Company 51% of the capital contribution with a foreign partner to establish Angkor Dairy Products Company Co., Ltd in Cambodia Operational objectives is build dynamic processors of dairy products for the Cambodian market It is expected that the factory had will go into operation in late 2015 On May 27th 2014, the Ministry of Planning and Investment issuanced of certificate No 709 / MPI-outward investment for the Company contributed 100% of the establish subsidiaries Vinamilk Europe Spostka Organiczona Odpowiedzialnoscia in Poland Operational objectives are trafficked live animals, raw milk production, milk, dairy products, food and beverages The corporate model and subsidiaries, joint – venture company 5 Bo sua Viet Nam limited liability com Sua Nam Son limited liability com VietNam Bo sua Thong Nhat Thanh Hoa lim company A Chau Sai Gon food material corpo Vinamilk Vinamilk Europe Spóstka Z Organic Odpowiedzialnoscia Driftwood Dairy Holdings Corpora Internation Angkor Dairy Products Co, Ud Miraka Limited • Subsidiaries Company name Ownership Bo sua Viet Nam limited liability 100% company Sua Nam Son limited liability 100% company • Vinamilk Europe Spóstka ZOrganiczona Odpowiedzialnoscia Driftwood Dairy Holdings Corporation Angkor Dairy Products Co, Ud Voting rights 100% 100% 100% 100% 70% 70% 51% 51% Joint – venture company Company name Ownership A Chau Sai Gon food material 15% corporation Voting rights 15% Miraka Limited 19.3% 19.3% Main business sectors • Main activities make profit and revenue of Vinamilk : - Process, product and business fresh milk, canned milk, powdered milk, baby foods, yoghurt, condensed milk, soya milk , soft drink and other dinks form milk - Breeding : Breed milk cows, provide animal varieties and farming techniques, methods The conpany focuses on breeding to supply fresh milk resource inputs for products form milk of Vinamilk • The main products of company : Dairy products They are accounted for more than 90% of the total sales of the company Dairy products include: - Powdered milk, baby foods - Condensed milk - Water milk : Sterilized milk, pure UHT milk, water yoghurt - Yoghurt - Other products from milk : icecream, cheese Dinks Dinks contribute less than 5% of total revenue of the company Main products include : - Soft drink - Juices : apples, oranges, grapes… - Teas : Antiso, aloe vera, - Dinks : Bottled water, daiquiri, … The list of main products - - - There are more 250 products with main lines : Water milk : + 100% fresh milk : 100% sterilized milk, 100% Pure UHT milk, 100% fresh milk is imported from New Zealand + Pure UHT milk : For children ADM+, For adults Flex, not lactoza Flex + Daily pure UHT milk : Fino Yoghurt : + water yoghurt : probi, susu, ozela, vinamilk + yoghurt : probi, susu, probeauty, aloe vera, yoghurt from 100% fresh milk Powdered milk and baby foods : 7 + Powdered milk: For mother and baby Dielac Mama Optimum Mama Dielac Anpha Dielac Anpha Gold Dielac Grow Dielac Optimum Dielac Pedia For adults Nutrition product for old The product helps strong bones The product for diabetes The product for losing weight Daily nutrition product + Baby foods : Ridielac baby foods - Condensed milk: Ong Tho, Phuong Nam star - Icecream and cheese - Soya milk, soft drink and drinks : +Soya milk : Goldsoy, goldsoy canxi- D + Soft drink: Vfresh, Vfresh Juki, Vfresh smoothie + Dinks : ICY bottled water, ICY daiquiri, lincha, antiso Vfresh, aloe vera Vfresh Bussiness area and distribution system : Yogurt, fresh milk and fruit juice have already available on Viet Nam and international airlines Vinamilk’s products have available in 650 mid-small scale supermarkets all over the country The company have market on whole country and spreading abroad • Domestic market: The company have 13 produce factories can meet up to market: Northern, Central and Southern Viet Nam Distribution offices have been established in Ha Noi, Da Nang and Can Tho in order to launch distribution system on whole country Below are specific details: Productive block and storage: - 13 Produce factories: in HCM city, in Binh Duong, in Bien Hoa, in Can Tho city, in Da Nang city, in Nghe An, in Binh Dinh, in Thanh Hoa and in Tien Son - storage enterprises in HCM and Ha Noi, in charge of transportation and storage materials, products - Business block: distribution offices in Ha Noi, Da Nang and Can Tho - Raw material development block: View page 110 for more detail - An Khang clinic: clinic in Ho Chi Minh in charge of periodic check up for employees and citizen 8 • - - • Foreign market: co-op company Miraka Limited to produce powder milk and fresh milk in New Zealand subsidiary – Driftwood Dairy Holding Corporation, produce and sale many milk products in California state, US subsidiary – Angkor Dairy Products Co Ltd, mainly produce milk products This company is in process of building factory and expected to run in 3rd quarter 2015 subsidiary – Vinamilk Europe Spostka … dealing with live animals, raw material to produce milk, milk products, foods and drinks Distribution system prototype Vinamilk Distributo rs Supermarket s Vinamilk showroom s Export Retailer Customers • - - - Distributor: Up to December 2014, The company have 265 exclusive distributors and these distributors sale up to 215.000 retailers on the whole country Supermarket: Vinamilk’s products have already available in 650 mid-small scale supermarkets on the whole country However, supermarket system in Viet Nam mainly gather in big provinces, cities and still developing so supermarkets only occupy 9% of domestic sales Vinamilk Showrooms: This is a chain of Vinamilk showrooms In the end of 2014, the company have 74 showrooms on the whole country Planning to have 110 showrooms in 2015 and in 2017 it will be 500 showrooms Export: 9 Export activities occupy about 10% of company sales Mainly export products are powder milk, nutrition powder and sweetened condensed milk In 2014, the company have exported to 29 country and teritories Vinamilk still export to traditional market at Middle-East and SEA, also develop new market at Central America and Africa The position of the company With the boom, the company sets a goal that will reach a total turnover is billion dollars and ranks in the Top 50 big milk company for the world in 2017 Vinamilk is Vietnam's largest milk companies continuously for more than 37 years since it opened in 1976.The company's current market share is over 50% in the dairy sector in Vietnam The growth rate of total sales, profits before tax and equity by an average of years is 31%, 31% and 28% respectively With the boom, company sets goals,which will reaches total sales is billion dollars and ranks in the Top 50 the world's largest dairy company in the year 2017 The company was listed on the stock exchange in Ho Chi Minh City in 2006 The company capitalization value on the market at the time of 31/12/2013 was about 5.3 billion dollars and the 2nd largest value on Vietnam stock market II Societal environment analysis of Vinamilk company Economic forces a The growth rate: According to the assessment of experts,the current state of the annual growth of the country's steadily increased Chart 1: Vietnam's GDP growth in recent years 10 10 and selection strategy is the subjective decisions of the enterprise based on the information, data, objective and based on the orientation of each business separately Based on these factors the impact of the external environment and inside with functions and tasks of the Vietnam Dairy Products Joint Stock Company - Vinamilk The goal of the company between now and 2020 are : Based on the comments on the situation of the market development and achievements in developing its production and business, Vinamilk has determined the orientation and objective long-term stable development, expanding production business Vinamilk potential to mobilize all available resources, to strengthen marketing capabilities, as well as increased investment costs for the construction of the plant, improve product quality, development of human resources Besides, Vinamilk establish cooperative relationships with domestic and foreign companies, to expand the functionality to meet the development going up day one of the Company Develop strategies for the company Maximizing shareholder value and pursuing business development strategy by expanding markets both domestically and abroad by increasing the value for our customers based on the following main elements: Expand market share in the domestic and foreign markets Comprehensive development of milk product portfolio intended a broad consumption force, while expanding into potential products as well as products made from raw milk This work contributes to satisfy the diverse tastes of consumers Consolidating on a strong brand, increase credibility for consumers Advanced system management, distribution With respect to sources of raw materials, the need to strengthen the supply guarantee to limit dependence on foreign countries On the basis of the development of the market and the achievement of business development, Vinamilk has determined the direction the goal of long-term stable development, expanding production and business development Vinamilk to mobilize all available resources potential, enhance the ability of marketing as well as increased investment costs for the construction of the plant, improved product quality, development of human resources Besides, Vinamilk set up cooperation relationship with domestic and foreign companies, expand the functionality to meet the development on an ascent of the company Space matrix 1.1 Space matrix overview Space matrix helps determine the position and trend of strategic actions for company 57 57 This matrix helps businesses select Aggressive, Conservative, Defenive or Competitive strategy is the most appropriate The axis of the matrix represent two elements inside of the Organization : FS - Financial Strength and CA – Competitive Advantage and two external factor : ES – Environmetal Stability and IS – Industrial Strength elements are important factors decide the location of the general strategy of a business The elements are located on the axis of the matrix Strategic position inside Financial Strength (FS) Business investment benefit Leverage Payment possibilities Capital transfers Cash easy retreat from the market Risks in business Strategic position outside Environmetal Stability (ES) Technology change Inflation rate Transformation of demand Disorders of the competitive product price Market entry barriers Competitive pressure Price elasticity of dental bridges Competitive Advantage (CA) Industrial Strength (IS) Market share Potential growth The quality of products Potential profit Customer loyalty The stability of the financial Use of capacity to compete The serect technology Serect technology The use of resources The control for the supplier and The scale of capital distributor The ease of market entry Use productivity, capacity Space Matrix Conservative Aggressive -6 Competitive Advantage Defenive 58 Financial Strength Industrial Streghth Competitive 58 1.2 Vinamilk determine the status and trend of strategic actions based on analysis of the matrix Space  The financial strength of the company Vinamilk A review on the financial strength of the company in recent years : total revenue growth of 31% on average each year from 2009 to 2013 reaching 31586 billion in 2013, with 8010 billion pre-tax profit in 2013 at the same level of 31% average growth per year in the past years The equity increase by an average of 28% in the same period with the total equity of 2013 is 17545 billion along the financial lever coefficient in safety levels at the rate payable amounting to 25% not in total liabilities Can see a higher growth, stability and speed ‘’safe’’ for investors Vinamilk is a business efficiently, deserves top 10 leading enterprises in Vietnam through the financial intex  A score for the company’s financial strength is  Dairy strength in Vietnam According to statistics of the Ministry of Industry and Trade of Vietnam, Vietnam dairy consumer demand rising rapidly in recent years, about 20% per year; the milk production of about 1.4 billion liters, consumption averaged more than 15 storage/person/year Specifically about the milk powder, the 2012 production of domestic consumption of about 65000 tons, of which only 20000 tons were produced in the country , 45000 tons remaining is imported About milk consumption per capita, according to data of the Ministry of industry and trade, in 1900 reached 0,47kg/person/year  A score for the dairy sector is points  The competitive advantage of the company Vinamilk The competitive advantage of Vinamilk compared to other rivals include : The familiar brands and diverse products, satisfying the needs of many different components Other reasons contributed to the success of Vinamilk’s extensive distribution network, the efficiency of the marketing strategies and modern production technology  A score for the competitive advantage of Vinamilk is -1  The stability of the environment Vietnam is a country with stable political regime, the legal system has not really tight but very enabling large enterprises in developed countries The government has policy push, advocates the development of Vietnam’s dairy sector with the adoption of decision 2001/167/QD/TTP of the development of dairy farming in the period 2001-1010 opportunities and conditions for sustainable development of dairy industry The milk market in the world and Vietnam started surging demand period  A score for the stability of the environment is -2 59 59 Based on all the analyses and to the point above, we get the status and trend of the strategic actions of the stock company Vinamilk on matrix Space The status and trend of Vinamilk’s actions on Space matrix Financial strength Aggressive -6 Competitive advantage Strength of the industry So Vinamilk is located in ‘’Aggressive’’ on the Space matrix  Trend is aggressive strategies In its business strategy, Vinamilk will be looking for new consumers, new markets or to exploit deeper into existing markets, new products, new uses To be able to offer more viable strategy for Vinamilk, based on the data and analysis environment inside and outside we will go into the Swot matrix analysis SWOT MATRIX 2.1 Swot matrix overview Swot analysis model is a very useful tool for understanding and decisions in all situations for any business organization An abbreviation of four letters : Strengths, Weaknesses, Opportunities, Threats Swot analysis tools provide a strategy, reviewing and evaluating the location, the orientation of a company or of a trading scheme Swot suit and analytical work in groups, used in the preparation of business plans, develop strategies, marketing, product development and service 2.2 Analysis of Viet Nam milk joint stock company – Vinamilk with SWOT * Strengths -Vinamilk has the advantage of being a leader : strong brands, market share - Good infrastructure, international standard machines - Product attracts consumers - Wide distribution network - Solid financial strength 60 60 - Diversified products, competitive prices - Sales and marketing campaign effectiveness, this brings huge success for Vinamilk - Closed production technology, modern - Sustainable relationships with partners - Staff of qualified, enthusiastic and experienced - With social policies and policies encouraging good employees * Weaknesses - Depending too much on foreign raw materials - Economic Leverage at 1.22, this indicator is still high compared to the world - Focusing too much on the domestic market - Field dairy products for babies and pregnant women are still not as popular as milk flows Abbott, Nestle - The line of products other than milk market is not as popular as expected: beer Zorok, Moment instant coffee, green tea Vfresh - Marketing activities primarily in the South, not active in the central region, and especially the North, which accounts for 2/3 of the national population * Opportunities - Our country has stable political regime,the government has many preferential policies for the dairy sector - The population is increasing - Awareness of the importance of nutrition are increasingly higher - Raw material supply has a stable - The market is expanding - The price of dairy products in the world started falling, Vietnam has advantages when exporting - Advanced technology production and dairy farming are guaranteed both quality and productivity * Threats - Competitors relatively strong and continuously gain market share - The state can not control the price of milk on the market - The system of state management loose, overlapping and ineffective - The testing of milk in Vietnam is not really effective - The exchange rate for instability, and Vietnam fell continuously - The economy is not stable (inflation, recession, ) - Many new competitors entering the sector - The natural environment of our country are not conducive to the dairy, which affect input materials of Vinamilk - Technology is changing day, this would be difficult if Vinamilk opponent 61 61 backward - The market is appearing more substitutes dairy products From the results of the analysis, the assessments, we build for Vinamilk SWOT matrix as follows: A SO strategy :  The market entry strategy: - Display products : The current situation shows that in our country, in supermarkets, convenience stores, mini- mart… products come with milk or products from milk, such as : filter coffee, teabagging, bread, cereal… have not been displayed with milk products in a counter Customers often buy these products, they have to go to other counters to get the milk That makes inconvenice to customers and can make them not choose dairy products So the display of dairy products in a gallery of additional products mentioned above are essential to increase the volume of consumption and also increase the competition in the display to compare the customer's choice with the other products The display of dairy products in these areas should be parallel to the display of dairy products in traditional shelves, such as: Product names Phuong Nam, Ong condensed milk Fresh milk and The display position at the counter Tho Dried coffee powder drinking Cereal food , cereal milk dots cake yoghurt Yoghurt and fresh milk Fruits , smoothie Condensed milk and fresh milk Sweet bread, fresh bread - Green strategy: Today, the development of green, clean productsare growing faster than ever Organizations and corporations in all fields were launched or implemented programs aimed at this topic, Vinamilk with the mission of "serving the community" can not be an exception In our country, the discharging wastewater of Vedan caused the serious pollution is a wake-up call for businesseswhen consumers increasingly concerned about whether the products of the business bring benefits to the environment and the community.Grasp the trend, Vinamilk should build "green strategy" for its products through invesments in improved packaging , using biodegradable packaging, upgrading sewage systems Vinamilk should implement green activities on the society and build brand image to society through making consumers to know friendly 62 62      - products with the environment The market of green, clean products really becomes potential and brings benefits to Vinamilk if Vinamilk helps consumers change their consumption behavior Therefore, Vinamilk should focus on the following five factorsto increase sales of products "green and clean" : Increase the level of awareness of customers about the green products of the company Ensure the quality of "green products" is always as good as traditional products Pledge on the company's products are always friendly with the environment Develop appropriate pricing strategy for the product Ensure coverage density of green products on the market in the distribution channels Vending machines for dairy products : Today, vending machines for dinks in the pulic has become so popular There are some places successful with this device but at the other place failed because the dull goods, the low demand, the consumption in automatic machines is not the habit of consumers However, dairy products have many differences with the beverage, because it provides more energy, vitamins and minerals for health benefits than other products.Currently, there are not any competitors apply this method, plus the list of Vinamilk products are now very rich from dairy, beer, soft drinks so can use the vending machine and then sell the milk to just combined sales of other new products This is also a form of branding, attracting the attention of consumers so well and Vinamilk can be put into use with products such as: Products Fresh milk Savour Milk with sugar , strawberry, Drink yogurt Yogurt box Soya milk cocoa Strawberry, orange flavor Yogurt with sugar, fruit flavor Soya milk with sugar Vending machines of dairy products operate 24/24, the product inside is always preservedto ensure the best quality product.This system only requires a lot of maintenance, but it saves labor costs at the counter At once, the milk is used more in the morning, so the operation of vending machines will ensure the supply when the grocery stores, shops, supermarkets don’t open  The concentric diversidication strategy : 63 63 With current technologies andnew tricks in avaiable resources, Vinamilk will give birth to new products such as "milk for men" with the flavor as Rhum, caramel and coffee to strike a customer segments, whoare quite limited in the consumption of milk in Vietnam with attractive functions such as increased energy of men through the addition of extracts "dong trung thao " with: the main market segmentation is men of 30 and older, living in urban areas, with average income and above Main customers are men and women who have family ; Potential rivals are businesses who want to penetrate the market such as Coca Cola, Kinh Do ; alternative products: Energy drinks like Red Bull, Sting, Number One  The mixed diversification strategy : Vinamilk should get on the production of functional foods Scientists in the world have predicted: Food of the people in the XXI century will be the functional foods The active ingredients of functional foods bring for humans are the valuable medicine to help people prevent and cure diseases For our country, this is a promising sector by diversification of natural resources In the trend, Vinamilk should get on the production of functional foods or dairy products, multi-functional beverage - - - B ST strategy:  The back integration strategy: Set objectives: to expand the scale of the fresh milk material to completely replace imported raw materials; ensure the safety of materials from thebreed to the transport, ensuring output resolution for fresh milk products to farmers, contributing to rapid growth in the herd of dairy cows in the country To achieve these goals, Vinamilk need provide strategicsto support farmers: Vinamilk should assist farmers to buy seed to develop dairy farming; the technical assistance helps farmers improve the seed quality, the quality of breeding facilities , pasture and commit about the underwriting of milk products for farmers The company need investe to develop dairy farm models with advanced techniques as learning sites for milk cow-breeding households Vinamilk should cooperate with companies and foreign experts to expand the agricultural extension, training workshops on how to grow and care for dairy cows, provide mix food, supplies for dairy farming with preferential price Encourage dairy farmers have good quality by adding bonus on the total volume of milk Measures of the company to stabilize price for procurement of fresh milk help famers feel secure and the company has adjusted policies to increase the price with each year 64 64  The pricing strategy: The company is a top industry with financial advantages, distribution channels, brand In addition, Vinamilk can create pressure on milk powder suppliers abroad by the large amount of purchase With the advantages, Vinamilk should continue to hold the lead to pricing strategy for the competition both inside and outside the country, maintain stable price increase so as not to affect the psychology of consumers The company should not keep up with high quality products with high prices, such as: Lothamilk and TH True milk to go a never-ending war In the next years, Vinamilk need hold until it can not hold out much longer, that time the company will increase the price Despite the foreign milk companies continue the race for profits, Vinamilk should still maintain the stable price, accept a low interest or make up from the number of orders and business various items to share the burden with consumers but the company is not loss-making C WO strategy:  Market entry strategy Stepping up marketing activities in northern markets Vinamilk should enhance the promotion of your product on the media in the northern region to increase the level of awareness and customer loyalty in this area through the following tools : Marketing and direct sales : Using mail, telephone and the indirect communication tool to inform existing customers and outlook clients in this area of the program, conferences, promotional information, while enhancing the company’s sales, force in the retail market as : grocery, dealers, supermarkets,…in order to create good relations beetween customers for the company’s products in order to increase energy consumption when in a difficilt market to penetrat as the North Stimulating consumption : deployment of the envisaged form of bonnus, promotions in short time to encourage the user to try and stimulate product sales Public relations and propaganda : Vinamilk will design different programs in order to uphold and protect its image in North area D WT strategy  Strategic decline Companies tend to expand the product portfolio to any merchandise category That’s why the market now flooded brand But as always, the brand at the forefront of any brand industry is not running under the expanded product 65 65 And recent new products seem to be in the new segment before not the advantage did not bring much success to Vinamilk (there are over 200 types of product) Expand the list of products in the short term proved to be beneficial in the long term but easy to cause a loss of the same implication in the management of a system of gigantic products In bringing out new products such as beer Zorok, Moment instant coffee, Vfresh green tea Vinamilk has forgotten that this product line has the pioneer brand, which is the company’s Sai gon beer Sabeco (32% of the market) Vinacafe soluble coffee and G7 (more than 60% market share), and green tea 0o of Tan Hiep Phat (56% market share) The market growth rate of instant coffe, beer and green tea : Instant coffee market : According to a survey by market research firm Euromonitor, soluble coffee market Vietnam strong growth with growth of about 10.5% per year in recent years The beer market : Have high growth rates According to Euromonitor, in organization, growth of the Vietnam beer industry reached about 9-10% and also continue to increase the output of beer consumption in 2015 could reach 2.8 billion litres Green tea market : The need to consume water products not ga increase nearly 30% per year with more than 50% of the consumers in the city turns the natural juices, sweet little product while soda water is gradually saturated Consumer tastes are changing over time, requiring the timely adaptation from the suppliers 66 66 Before the potential market there, Vinamilk’s products have very low market shares on the market The three products are only brought about less than 2% of revenue for Vinamilk The following is a matrix of three products : Location of some byproducts of Vinamilk on BCG matrix So could see the green tea tea product, beer and coffee is located at the first box means good growth market but sales of these products is too small, The SBU Vinamilk’s ineffective operations With the SBU operates not as effective on the Vinamilk, should use the strategy depletion means limiting and eventually eliminating these products The main strategy matrix 67 67 From the matrix reviews the external factors, the total number of critical points of milk company Vinamilk is 2.87 and matrix pictures compete with the total score is 2.73 shows that the company’s internal resources rather good, can take advantage of the opportunities and aviod the threat from external environment better than the competition Vinamilk is the company has a strong competitive position in the industry Look at the diagram of the main strategy matrix, Vinamilk has in place the corner I and we can realize the strategies appropriate to the company are : - Market penetration strategy - Diversification strategy of concentric - Diversification strategy chemical mixtures - Integration strategy behind Conclusions 4.1 QSPM quantitative matrix a QSPM matrix summary Because each company’s resource are limited, the business must choose the most compelling strategy of viable strategies to implement, according to the main strategy matrix, swot matrix space, them some strategies consistent with the objective of Vinamilk is : Strategy : Market penetration Strategy : Concentric diversification Strategy : To diversity the mix Strategy : Integration on the back 68 68 Strategic operations QSPM matrix is a tool that helps business determine the most desirable strategy To determine the score of each strategy we proceed : - List the factors that influence outside and inside - The classification level of attractiveness to companies Not attractive 1; Can slightly attractive Quite attractive 3; Very attractive - For the level of response of the company At least there response 1; But still The reaction medium 3; Have strong reactions - A : Attractions ; TNA : The total number of attractions b QSPM matrix of Vinamilk The important The strategy that can selection influence factor Classifie Strategy Strategy ds A TN A TN A A Macroeconomics factors Vietnam’s economic 12 12 growth Vietnam’s a coutry 3 9 have a stable political regime, legal system ventilation Vietnam’s in the 3 9 period of ‘’golden population structure’’ Industry factors Competition in the 2 4 country and abroad more and fiercer Ressure from 2 4 substitutes Financial indicators Liquidity ratio 4 16 16 ROA (Return on total 12 assets) 69 69 Strategy Strategy A TN A TN A A 12 9 9 4 3 12 12 ROE (Return on common equyty) Financial structure ratio Operational effectiveness ratioes The total number of attractions 9 9 12 12 16 12 9 9 96 93 93 With the results obtained from the QSPM matrix strategy can be arranged according to the degree of gravity as follows : Market entry strategy : 96 points Diversification strategy mix : 93 points Concentric diversification strategy : 93 points The integration strategy : 85 points With 96 points, the strategy ‘’to market’’ has the highest number of attractions  Strategies are chosen to propose to the group companies Besides Diversification strategy mixed and Concentric diversification strategy with a score of 93 should be considered as strategic reserve Market enty strategies for Vinamilk can help achieve the following objectives : Pursuing this strategy the company can focus Marketing activities, enhancing investment in human resource development, technological equipment, stimulating consumer products, strengthen competitive position in the region, hold and grow market share, improve profitability This strategy helped the company minimized the risk of the environment, step by step fix your weaknesses VII Conclusion With the development and innovation of the country, Viet Nam milk joint-stock company-Vinamilk also has tremendous advance in terms An industry leader always needs leading strategies to remain the position in the domestic market and expand new markets when it has opportunities Vinamilk needs take full available advantages and keep ahead of integration wave to adapt changes each day of fierce business environment Vinamilk needs to give appropriate development strategies to overcome the remaining restrictions in recent years and maintain growth with a current high speed Through the integration to bring the company's products and Viet brand to the ASEAN and European market The business strategies are only for reference but we hope through the analysis, evaluations , strategies were proposed based on the latest 70 70 85 data can help Vinamilk has more necessary choices for the company’s development strategies Thank for my teacher for useful knowledges, real teaching methods and your guidance, helping, highly valuable share in the study process to help us complete this essay Documentations The 71 annual reporting of Vinamilk from 2012 to 2014 : https://www.vinamilk.com.vn/vi/bao-cao-thuong-nien Strategic management and business policy book https://www.vinamilk.com.vn/vi/nhan-su-chu-chot https://www.vinamilk.com.vn/vi/he-thong-quan-tri http://khotailieu.com/luan-van-do-an-bao-cao/kinh-te/quan-trinhan-luc/quan-ly-nguon-nhan-luc-trong-cong-ty-co-phan-suavinamilk-viet-nam.html https://www.vcbs.com.vn/Utilities/Index/53 Giáo trình tài doanh nghiệp – PGS.TS Lưu Thị Hương Trường đại học kinh tế quốc dân 71