Luận văn BUSINESS STRATEGY FORMULATION FOR VNF1 DISTRIBUTION AND RETAIL JSC

THESIS MBA BUSINESS STRATEGY FORMULATION FOR VNF1 DISTRIBUTION AND RETAIL JSC, DURATION 2015-2020 Page of 77 TITLE: BUSINESS STRATEGY FORMULATION FOR VNF1 DISTRIBUTION AND RETAIL JSC, DURATION 2015-2020 TABLE OF CONTENTS INTRODUCTION .5 Overview of VNF1 JSC Necessity of the Project Objectives of the Project and Its Contribution to the Development of VNF1 JSC Methodology Structure of the Capstone Project CHAPTER 1: THEORETICAL FRAMEWORK .9 1.1 Strategy and Business Strategy Management 1.1.1 Strategy 1.1.2 Business strategy management 1.2 Process of strategy plan formulation 10 1.2.1 Mission and core objectives .11 1.2.2 Selection and formulation of strategic objectives 12 1.2.3 Analysis of external environment 12 1.2.3.1 Macro environment 12 1.2.3.2 Micro level environment (sectoral) 16 1.2.4 Analysis of internal environment 19 1.2.4.1 Analysis of area of operation -Value Chain 19 1.2.4.2 Core ability .20 1.2.5 Selection of strategy 21 1.2.5.1 Analysis Tools 21 A SWOT analysis 21 B EFE – External Factor Evaluation Matrix 22 C IFE - Internal Factor Evaluation Matrix 22 1.2.5.2 Selection of Strategy with QSPM .23 A Strategy of cost leadership 24 B Strategy of product differentiation 24 C Strategy of focus point 25 D A combination of strategies .25 CHAPTER 2: ANALYSIS OF VNF1 JSC STATUS .27 2.1 Overview of VNF1 JSC 27 2.1.1 Establishment of VNF1 JSC .27 2.1.2 Capital 28 2.1.3 Organizational Structure 28 2.1.4 Areas and Activities 28 2.1.5 Characteristics of rice trading and the initial role of VNF1 JSC in the market.29 2.2 Analysis of macro environment (PESTLE model) 32 2.2.1 Politics - Legislation 32 2.2.2 Economics and Environment 33 Page of 77 2.2.3 Technology 34 2.2.4 Culture - Society 34 2.2.5 Trend of globalization 35 2.2.6 Opportunities/ Threats for VNF1 JSC .38 2.2.6.1 Opportunities .38 2.2.6.2 Threats .38 2.3 Sectorial analysis (PORTER model) 39 2.3.1 Current competitors 39 2.3.2 Substitute products 41 2.3.3 Powers of customers 42 2.3.4 Powers of suppliers 42 2.3.5 Potential rivals 43 2.4 Analysis of Internal Environment 45 2.4.1 Organizational structure 45 2.4.2 Factories, field/ material site 46 2.4.3 Business networks 48 2.5 SWOT analysis 48 2.6 Target customers 52 2.7 Market segment 53 CHAPTER 3: RECOMMENDATIONS ON STRATEGIC PLAN FOR VNF1 JSC, DURATION 2015-2020 55 3.1 Mandate-Mission and Vision 55 3.2 Strategy selection for VNF1 JSC 58 3.2.1 External Factors Evaluation (EFE) of VNF1 JSC 58 According to theory, the total EFE point of 2.7 illustrates that VNF1 JSC's reaction against external factors at average level 58 3.2.2 Internal Factors Evaluation (IFE) of VNF1 JSC .58 According to theory, the total IFE point of 3.49 (above 2.5) demonstrates that the VNF1 JSC is strong in internal factors 59 3.2.3 Quantitative Strategic Planning Matrix (QSPM) and strategy selection for VNF1 JSC 60 3.3 Recommendations on strategies for VNF1 JSC .61 3.3.1 Marketing mix strategy 62 3.1.1.1 Product .62 3.3.1.2 Promotion 63 3.3.1.3 Place 65 3.3.1.4 Price 67 3.3.2 HRM strategy 68 3.3.3 Production management strategy 70 3.3.4 Other functional strategies .71 3.4 Milestones in the year strategy implementation 72 3.5 Other Recommendations 73 3.5.1 At the macro level 73 3.5.2 At the micro level 73 CONCLUSION 73 REFERENCES 75 ANNEX .76 List of Abbreviation Page of 77 VNF1 Corporation or Corporation: VNF1 JSC or VNF1, or Company: HACCP: TCVN: Vietnam Northern Food Corporation; VNF1 Distribution and Retail JSC International food hygiene and safety standards Vietnam food hygiene and safety standards List of Figures Figure 1.1 Process of strategy formulation .11 Figure 1.2 Levels of external environment .13 Figure 1.3 The five forces of competition (Porter Model) .17 Figure 1.4 Porter’s model of Value Chain 20 Figure 2.5 Fluctuations in the rice market in the past decades ($/ton) 30 Figure 2.6 Changes in domestic rice market in 2008 (Source: VNF1 report, 2008) 30 Figure 2.7 Real GDP Growth Rate Across Southeast Asia (Source: Fearless Forecasts, CBRE, 2010) .33 Figure 2.8 Rice as a percentage of total caloric intake by region (2000) 35 Figure 2.9 Modern shopping channel development (Source: VNEconomy, 2008) 36 Figure 2.10 Value line of VNF1 JSC and competitors (50kg packed rice) 44 Figure 2.11 VNF1 JSC material areas map (Source: VNF1 Report, 2008) .47 Figure 3.12 Exploitation of Philip Kotler 5- product levels 63 Figure 3.13 Procedures of rice supply (Source: VNF1 Market survey, 2008) 66 Figure 3.14 VNF1 JSC distribution system 67 Figure 3.15 HRM clients 69 Figure 3.16 Integral connections of performance appraisal .69 List of Tables Table 2.1 Comparison of some competitors in high-quality rice market (Source: Market survey, VNF1, 2008) 40 Table 2.2 Analysis of VNF1 JSC’s target customers 2009/2010 .52 Table 3.3 Market objective of VNF1 JSC, duration 2015-2020 (Source: VNF1 report, 2008) 57 Table 3.4 Target market share (Source: VNF1 report, 2008) 57 Table 3.5 QSPM for VNF1 JSC .60 Table 3.6 Milestones in the year strategy implementation 72 Page of 77 INTRODUCTION Rice is life Rice is the grain that has shaped the cultures, diets, and economies of Vietnam Rice is the stuff throughout all the subjects of our group in the Griggs MBA Program This research is the integral link of all these study and efforts of group members, the continuous assistance from lecturers, encouragement from the Company management and the emotional support from family members Project title: BUSINESS STRATEGY FORMULATION FOR VNF1 DISTRIBUTION AND RETAIL JSC, DURATION 2010-2015 Page of 77 Overview of VNF1 JSC VNF1 Distribution and Retail Joint Stock Company is a member of the VNF1 Northern Food Corporation The Company was established and came into operation on the 1st of July, 2008 according to the direction of the Prime Minister on the strategic plan for the Corporation in production and trading in the northern areas, from Nghe An Province with the aim to maintain food security in the northern market Target of VNF1 JSC establishment is to improve the weakness in the industry of food and rice trading through the development of a professional business administration model, with the close and systematic collaboration among different process of production, trading and distribution The Corporation will multiply the success of the model in the entire Corporation, with the aim of continuous improvement to catch up with the integration trend of the market The Corporation now has 27 independent member companies, of which are partnerships and are joint ventures with foreigners All are food trading companies with decades of experience as buying agents for Corporation’s export purposes Necessity of the Project VNF1 JSC is quite a young company, having no official development strategy This research project is of great importance for the Company in particular and for the Corporation in general towards the target of building up a modern business model in the food trading sector In a greater context of the Corporation, the development of VNF1 JSC will assist the Corporation to start modern business model, to generate a quite new approach with customers, from which to assist the Corporation to reach its sustainable target of building up a modern, specialized, intensive and extensive Page of 77 distribution system, gradually mastering the market of rice, leading the market of a strategic commodity to advance in the right and healthy direction Objectives of the Project and Its Contribution to the Development of VNF1 JSC VNF1 JSC is participating in a highly competitive market with lots of challenges In this market, there is not yet a real successful player; a competitor is not a company as a single player, but is a full public business orchestra Though without a leader, the “orchestra” is performing perfectly, generating a huge impact by the strength of a true open market As a matter of fact, members of the Group 6, Class M06, being officials in and out of the industry, expect to use the modern knowledge of business administration achieved in the Griggs MBA Grogram to response to the urgent need of the Company of working out a professional action plan, for the short run first, through which to study issues and identify problems of priority to solve, to study target customers, to know competitors, to build up strategy of product, price and so on This short term strategy will be the launching stage for the Company to develop efficiently and professionally Objective of the Project is to identify year business strategic plan for VNF1 JSC to become the leading high quality rice producer and trader in Vietnam Methodology The group uses problem analysis, SWOT analysis based on secondary and primary data, deployment of various economic tools including Porter model, PESTLE analysis, IFE & EFE, QSPM tools Structure of the Capstone Project o Introduction o Chapter 1: Theoretical framework for the Project o Chapter 2: Analysis of the VNF1 JSC Status Page of 77 o Chapter 3: Recommendation on strategy o Conclusion Page of 77 CHAPTER 1: THEORETICAL FRAMEWORK The terminology of strategy has been mentioned largely in the business world nowadays Each enterprise has its own method to approach and to build up its business strategy In this Chapter, we would like to introduce a popular methodology to design and to select business strategy, its process and some relevant experiences 1.1 Strategy and Business Strategy Management 1.1.1 Strategy Strategy is the plan to control and to use the organization’s resources such as finance and HR to improve and to ensure the essential benefits of the organization According to Kenneth Andrews, strategy is what an organization has to based on its strengths and weaknesses in the context of certain opportunities and threats A good strategy with effective implementation will help managers and operators at different levels be able to identify objectives, identify orientation for action, contributing to the success of the enterprise There might be different methodology, but the core contents of strategic management include: • To identify a master action plan with future orientation on basic and long term business objectives of the enterprise • To identify the process for such action, method to implement and resources allocation to reach such objectives • Important policy and measures of the enterprise will be decided to change by the enterprise’s owner 1.1.2 Business strategy management Business strategy of an enterprise is the master action plan with future orientation in implementing its objectives Strategy will not identify concretely how to reach such objectives because it is the functions of other supporting programs Page of 77 and functional strategies Business strategy will just create a framework to guide critical thinking towards business orientation and action In the enterprise’s business operation, the existence and success depend firstly on the rightness of the identified strategy and the implementation process Business strategy is essential because: Firstly, a business strategy will help the enterprise to see clearly objectives and direction to go in business operation From that, the enterprise will know how to organize the business mechanism, what to to achieve success and milestone for such achievement Secondly, in the fast changing business environment, there are abundant of profit opportunities together with risks A strategy will help the enterprise to be well planned to take the best and the earliest of all opportunities and to reduce to the least potential risks or have good risk management plan Fourthly, in the fierce competitive environment, by all sided analysis of factors at the macro and micro level, the enterprise will be able to identify competitors of all kinds, from which to design master solution to intensify competitiveness of the enterprise 1.2 Process of strategy plan formulation Each cycle of strategy formulation will start by a mission and core objectives statement of the enterprise Then comes the analysis of internal and external factors and strategy selection The process will complete by the design of organizational structure and relevant monitoring system for the selected strategy implementation Page 10 of 77 - High protein rice - Vitamin rich rice - Rice for glycorrhea a specialty traditional values pure rice fragrance ISO/HACCP standards - Original characteristic of rice - Stable quality - Registered brand - Professional design packaging clean and high quality sanitary and safety standards Figure 3.12 Exploitation of Philip Kotler 5- product levels In brief, activities to implement this strategy is: • To build up a system of rice mills with established standards of HACCP, ISO 9001-22000 Slogan is “to be fresh from the field to the kitchen” • To have plan for stable material areas supply to ensure quality and safety of products • Outstanding product, true quality and natural fragance 3.3.1.2 Promotion Investment for quality is surely not enough to compete Eighty percent of product success depends on factors outside of quality matters VNF1 JSC is recommended to design a series of promotion products and campaigns around the core value of clean food and for daily essential These will be done based on development of new ideas which relate to daily life events, in art or business aspects, in Vietnam or in the world, creating a close connection between Vietnam rice and the world, linking the past and the future It can come from diplomatic event like in the speech of US President Bill Clinton at Vietnam National University in November 2000 saying: “In fact, one of our founding fathers, Thomas Jefferson, tried to obtain rice seed Page 63 of 77 from Vietnam to grow on his farm in Virginia 200 years ago.” Or it can come from the traditionally greeting of Vietnamese saying: “Have you eaten rice today” It is impossible without a patient and dedicated PR schemes to orient perception and behaviors of customers It will be done through professional staff and professional facilities and consulting role on contents of rice in the market of VNF1 JSC Through all these combined efforts, customers will believe in what is high quality VNF1 rice • VNF1 JSC is to demonstrate its community social responsibility through humanity or sponsorship activities for disadvantageous people, commitment to product quality and ready with crisis management ability • VNF1 JSC is to be rice specialist in the market: regular writing on nutrition value of rice, knowledge on safety standards of rice, as well as commercial specialist of rice in local and international market • VNF1 JSC is the stylish and smart cook for all family: various recipes for rice, manual for acknowledgement of safety rice and consequences of no knowledge on recognition of bad quality rice • VNF1 JSC is the pioneer in experiment of new rice and ready for feedback from the public: establishment of a theme restaurant (rice, a world of ideas), introduction of traditional rice as modern or foreign rice • VNF1 JSC is in the mind of people by direct advertisement, or TV show sponsorship, exploitation of rice as art element: painting of rice, photo of rice life and farmers lives, rice as domestic pottery plants, an alive rice museum in (real piece of rice field) in the Vietnam Museum of Ethnology • VNF1 JSC is high tech in all aspects including delivery, distribution and customer services: ongoing update and improvement of VNF1 JSC website, improving online delivery service in terms of technology and customer care, linking of relevant website of advanced countries Page 64 of 77 including US, Thailand, and so on, keeping in touch of customers via convenient tools like email or SMS • As a key, VNF1 is a brand name for rice: commitment on standard quality and HACCP standards for food safety and hygiene; research and development for to new brands per year These brands is to be developed in different levels of premium, high class, medium and healthy rice Supreme objective of this functional strategy is to formulate and to manage the multi level brand of VNF1, aiming at different target customers (high class, premium, healthy purposes and local speciality.) 3.3.1.3 Place Rice consumption system in Vietnam is quite complicated with the involvement of many players including farmers, buying agents, rice mill owners, traders, individual retailers and state retailers All are classified at levels of local and central ones FARMERS HOUSEHOLD/ COMPANIES FARMERS COLLECTORS TRADITIONAL CHANNELS QUALITY CONTROL CONTRACTS WHOLESALES SUPERMAKETS HIGH QUALIT SHOPS Y RETAILS POOR CONSUMMERS NON-POOR CONSUMERS Page 65 of 77 Figure 3.13 Procedures of rice supply (Source: VNF1 Market survey, 2008) Since the renovation in the 80s, domestic rice market has been free from many restrictions Distribution system is open for competition among hundreds of companies of different economic sectors Regarding forms of rice distribution, there are forms: (i) Packed rice: at certain quantity, mostly distributed through modern channels of supermarkets and convenience stores; (ii) Unpacked rice This is the traditional way which allows customers to buy at any volume This is mostly used for traditional channels of open markets and agents With the identified target of product and customers, VNF1 JSC is recommended to consider the strategy to catch up with the dominant trend of modern distribution channels and take any advantages of traditional channels The Company should distribute rice by channels of shop specialized in rice, supermarkets, convenience shops of VNF1 JSC and available shops of other partners with aims (i) to pulse customers response; (ii) to approach the markets when VNF1 JSC shops are not fully developed in terms of size and coverage The channel with be matching with the target customers of high income population which account for 7% of Hanoi population Hi tech also should be adopted in distribution strategy So online and telephone customer care operation should be considered Provincial agents will be selected in the next steps for other northern market from Nghe An The system they own will finally create the image of a rice producer with high quality, professional; at the same time expand markets share and coverage VNF1 JSC’s distribution system is expected to be as below Page 66 of 77 Figure 3.14 VNF1 JSC distribution system Distribution strategy will be implemented through specific design of roadmap, HR arrangement and relevant financial policies Final objective of this is to have a distribution channel which is diversified and ensure the best convenience for customers, based on the available network advantages, study to catch up with the most modern distribution channel, and continuously focus on the supply chain cooperation with big customers This will promoted by creative and constant policies on credits and discounts 3.3.1.4 Price Based on the attention and investment for quality, based on the close watch on competitors’ price ranges (taking into consideration of brands and distribution channels), VNF1 JSC is to commit to competitive high medium price, when maintaining quality at high level Price list of competitors though modern outlets of supermarket in comparison with VNF1 JSC is in the Annex Page 67 of 77 Based on the lines of products designed, VNF1 JSC is to formulate a clear pricing mechanism for specific product line, for example: • For common product line: Products in this line are highly competitive in terms of price in the market Profit for this line should not be so high At some stage, even no profit are made from this line, but to gain trust in customers • For high class and healthy line: price will be decided with good margin for added values Additionally, promotion, discount campaigns should be conducted in harmonization and effectively with each other to attract customers Being a service minded business; VNF1 JSC is recommended to pay attention to the strategy of 3P plus combined in their basic 4P marketing plan They are People, Process and Physical evidence which are designed in integration with relevant functional strategies with attention to meet the service quality criteria 3.3.2 HRM strategy HRM is embedded within the work of all managers and most individual contributors due to the need of managing people at all level as well as teams With the goal of being the leader in the market of clean rice production and distribution, VNF1 JSC should have HRM strategy with the base of considering customers as the center and VNF1 JSC employees as lead of all activities In the first stage of attracting employee, VNF1 JSC should target those with rich knowledge in agri business, experience in management and modern business administration, with clear point of view on clean food business VNF1 JSC should have a sound and effective organizational structure, design system of job analysis, job specifications, staffing planning, training and development schemes A successful company should have strong schemes to deal with all the below clients: Page 68 of 77 Figure 3.15 HRM clients A key component of HR strategy is to design a sound performance appraisal system with integral connection with other elements including job description, compensation (financial and non financial) motivation policies and training and development plan Figure 3.16 Integral connections of performance appraisal VNF1 JSC should gradually re-construct the compensation system including both financial and non-financial one, with consideration to the profit and cost This system should be able to generate sound motivation among the staff, and should be a strong demonstration of reward and disciplines policy in a business oriented company Page 69 of 77 As a powerful support for HRM, VNF1 JSC should uphold the necessary of a corporate culture with clear guidelines Staff is the core of all activities As a matter of fact, staff should be motivated; there must be room for their proactiveness and innovation, respects for their efforts towards to common goal of the business through common movement and support for the modern leadership style Especially, today, every company has to compete for good staff A good staff planning and development is essential HRM should create healthy competitive atmosphere in the company, promote learning atmosphere, ongoing improvement of individual and team performance HRM will support their internal clients to have a strong and stable staff through coordination with functional managers More importantly with their good planning, they will be consulting to the leaders’ long term development plan ahead In brief a smart recruitment practices and effective training supervision and well balanced compensation policy with help VNF1 JSC to have the best sustainable and suitable staff 3.3.3 Production management strategy Doing business in high quality rice production and trading, VNF1 JSC should focus on: • Forecasting demand: VNF1 JSC has collected data, conducted analysis in marketing and sales plans to forecast demand of consumers, then worked out plans for material storage and production This really helps avoid waste of money for inventories, production due to improper machineries, poor working skills and attitude For distribution process in supermarkets, it is advisable to find out causes for loss in order to bring down the loss percentage in retail sector from per cent to 0.25 per cent in or years • Improving productivity, reducing cost, promoting initiatives: VNF1 JSC should define causes for production downturn so that measures could be Page 70 of 77 delivered to raise productivity and cut production cost It is an important strategy to replace manual labor with machineries in automatic production assembly, packing and classifying products Besides, food sanitary at factories should also be ensured as standardized • Quality control: The Company should enhance its quality control procedures to improve product quality by restructuring production line, applying modern methods for production such as JIT/LEAN, realizing such programs as 5S or controlling quality according to HACCP, ISO 9001/22000 • Effective cooperation among partners of the authority, farmers, scientists and businessmen in which farmers should be paid best attention though training in capacity building, production processing and knowledge of their key values in the supply chain VNF1 JSC was established to business in rice distribution and retails The differentiation is to cover both products quality and services, in which clean rice quality is the first priority As a matter of fact, the development of standard rice production is the key for achievement of their target 3.3.4 Other functional strategies Additionally, to reach its business goal, VNF1 JSC should implement functional strategies including: Financial strategy Strategy of controlling input cost, minimizing material cost, increasing the return on investment (ROI) rate; Frequent review of contingent costs, define production norm, supply chain management and long term cooperation with various suppliers to buy best suitable materials, optimal plan for inventories and reserves for cutting down on expenses This should ensure effective financial operation of the company As a result, the company would promote all available resources, mobilize external resources, improve capital usage efficiency and raise return-on-investment ratio, the major concern of VNF1 JSC shareholders Page 71 of 77 Investment strategy To take an advantage of a broad market from Ha Tinh province upward for developing its distribution network, VNF1 JSC should build up an effective long-term investment strategy Due to limitation of time, we have not been able to study this perspective in this document 3.4 Milestones in the year strategy implementation To realize its strategies, VNF1 JSC should build up a roadmap to implement each functional strategy, and a master plan to maximize the synergy of all functions to reach a common goal A monitoring and evaluation plan for all these to measure effectiveness is also vital to have timely and proper adjustment in such implementation Milestones expected to reach from the recommended strategies are summarized below Area HRM HRM Q 1+2 Milestones Q 3+4 2011 Q Q Q 1+2 3+4 1+2 Corporate structure and culture reenforcement Completion of job analysis, performance appraisal, compensation and feedback system Promotion campaign for VNF1 brand Promotion products Strengthening of distribution system/ policy Product quality Strengthening of standard production process control HRM Survey on staff satisfaction Q 3+4 2013 2014 Q Q Q 1+2 3+4 1+2 Q 3+4 2015 Q Q 1+2 3+4 Deadlines achieved, Place 2012 Budget Objectives Level of absorb of feedbacks 2010 Criteria for evaluation Table 3.6 Milestones in the year strategy implementation Survey on customers awareness on Promotion VNF1 brands Page 72 of 77 3.5 Other Recommendations 3.5.1 At the macro level Proper macro policies on the company’s business should be developed and realized, regularly reviewed and adjusted to fit the best practice of market and the situation of the company itself 3.5.2 At the micro level The business of VNF1 JSC should be organized and operated based on the approved strategies This will be the foundation for VNF1 JSC to set up its business action plans with SMART short-term yearly, quarterly and monthly objectives CONCLUSION The research has made recommendations on strategic plan for VNF1 JSC in years with objective to become a leading producer and trader of safety and high quality rice in the market of Vietnam through a deep analysis of all internal and external factors relating to the business Business of production and distribution of high quality rice is of great opportunities and at the same time, facing lots of threats That environment requires VNF1 JSC leaders be well informed, confident and constant with identified target Implementation of the plan is expected to be: • The spring-board for the Company to develop business flexibly and sustain ably, • Preparing for Company to penetrate into the world’s markets through established international retail channels in Vietnam, • Promoting the value of core agricultural product of Vietnam, relevant to the Government’s strategy in promotion of local products, • Relevant to the trend of highlighting clean food production, and Page 73 of 77 • Relevant to the common trend of WTO admission and global integration Being a niche market, well controlled distribution system together with stable quality of high quality rice are always key concerns for VNF1 JSC The recommended strategy is expected to build up distribution strength and public confidence on VNF1 quality, which in return will grow the competitiveness of the Company in the market Page 74 of 77 REFERENCES Textbooks on Strategic Management of MBA Program, Griggs University VNF1 JSC Website AC Nelson survey results Development of core distribution system for domestic market, PhD Hoàng Thọ Xuân, WTO Info Gate of the Ministry of Industry and Commerce at http://wto.nciec.gov.vn/Lists/MarketAccess_vn/DispForm.aspx?ID=124 Website VNIndustry Article “A must to build up brand for Vietnam rice” May 31, 2005, The Labor Newspaper “Finding solutions for selling”, PhD Do Hoa, at Website http://www.marketingchienluoc.com of the International Management Excellence Ltd Article “A war among distribution channel starts”, by Đặng Lê Nguyên Vũ, CEO of Trung Nguyên Coffee Corporation, June, 24, 2005, The Youth Newspaper Article “Establishment of the largest Vietnamese distributor”, dated 29/03/2007, VnMedia 10 FAO Website 11 Rice- A World of Great Ideas (US Rice Association) 12 “Why is rice importance” at http://www.patentlens.net/daisy/RiceGenome/3649/3591.html Page 75 of 77 ANNEX Price comparison with competitors of VNF1 JSC (Source: VNF1 Marketing Department) No Supermark ets Company / Brand types of rice Unit Price (VND) Pack 5kg An Đình Intimex Yamada Thái Hà Hapro Quan Nhân Hapro An Đình Nam Khánh Unimart Yamada An Đình Hapromart Yamada 10% Hapro of Pack of 1kg Gạo Kohishikari Gạo Hàn Quốc Ấp Bẹ Tám Điện Biên Bắc Hương Tám Thái Lan Nếp Cái Hoa Vàng Tám Điện Biên Bắc Hương Nếp Cái Hoa Vàng Tám Xoan Hải Hậu Tám Điện Biên Tám Xoan Hải Hậu Nếp Cái Hoa Vàng Gạo Kohishikari Gạo Giống Nhật Gạo Hàn Quốc Thái Ngựa Hồng Tám Thái Lan Homali Thái Lan Nếp Thái Tám Xoan Hải Hậu Tám Ấp Bẹ Tám Điện Biên Bắc Hương Tám Thái Lan Nếp Cái Hoa Vàng Lứt thơm 132.000 85.000 90.000 82.000 96.000 88.200 91.500 83.500 120.000 102.000 87.500 127.500 94.300 151.500 145.000 143.000 178.500 84.500 139.500 121.200 91.500 92.000 92.500 76.000 104.000 95.500 108.000 26.400 17.000 18.000 16.400 19.200 17.640 18.300 16.700 24.000 20.400 17.500 25.500 18.860 30.300 29.000 28.600 35.700 16.900 27.900 24.240 18.300 18.400 18.500 15.200 20.800 19.100 21.600 Gạo Kohishikari Gạo Giống Nhật Gạo Hàn Quốc Tám Xoan Hải Hậu Tám Ấp Bẹ Tám Điện Biên Bắc Hương Tám Thái Lan Nếp Cái Hoa Vàng Lứt thơm Tám Xoan Hải Hậu Tám Điện Biên Tám Thái Lan 136.000 117500 114.000 80.000 81.000 83.000 74.500 91.000 84.000 108.700 89.500 82.000 92.000 27.200 23.500 22.800 16.000 16.200 16.600 14.9000 18.200 16.800 21.740 17.900 16.400 18.4000 Page 76 of 77 Comparision of price (VND) VNF1 unit Balance Balance price for 1kg for kg (1kg) 21.400 18.200 15.000 4.400 -200 -1.400 22.000 -1.000 -7.000 17.500 18.200 15.000 17.500 20.000 18.200 20.000 17.500 -140 -100 -1.700 -6.500 -400 700 -5.500 -1.360 -700 -500 -8.500 -32.500 -2.000 3.500 -27.500 -6.800 20.000 21.400 18.200 15.000 1.700 3.000 -300 -200 8.500 15.000 -1.500 -1.000 17.500 -1.600 -8.000 20.000 21.400 18.200 15.000 4.000 5.200 1.600 100 20.000 26.000 8.000 500 17.500 -700 -3.500 20.000 18.200 2.100 1.800 10.500 9.000 Big C Bảo Minh 15% Yamada An Đình Fivimart Fivimart Bắc Hương Gạo Tẻ hạt dài Tám Thơm Hải Hậu Tám Xoan Hải Hậu Tám Thái Lan Bắc Hương Hải Hậu Nếp Cái Hoa Vàng Tám Điện Biên Tẻ Thơm Xi Dẻo Tám Xoan Xuân Đài Tám Thái đỏ Tám Thái Gạo Kohishikari Gạo Hàn Quốc Tám Điện Biên Bắc Hương Điện Biên Đài Loan Tám Xoan Hải Hậu Tám Hương Bưởi Xi Dẻo Nếp Cái Hoa Vàng 75.000 60.000 Gạo rời Gạo rời Gạo rời Gạo rời Gạo rời Gạo rời Gạo rời Gạo rời 80.000 89.500 97.200 141.200 120.500 94.600 81.800 87.500 94.200 95.000 57.500 121.000 Page 77 of 77 15.000 12.000 15.200 16.100 17.600 14.700 17.800 15.800 13.500 9.900 16.000 17.900 19.440 28.240 24.100 18.920 16.360 17.500 18.840 19.000 11.500 24.200 15.000 20.000 3.900 15.000 17.500 18.200 300 -300 2.400 11.000 1.100 18.200 15.000 18.500 20.000 -720 -1.360 1.000 1.160 -3.600 -6.800 5.000 5.800 11.000 17.500 -500 -6.700 -2.500 -33.500 ... management and the emotional support from family members Project title: BUSINESS STRATEGY FORMULATION FOR VNF1 DISTRIBUTION AND RETAIL JSC, DURATION 2010-2015 Page of 77 Overview of VNF1 JSC VNF1 Distribution. ..TITLE: BUSINESS STRATEGY FORMULATION FOR VNF1 DISTRIBUTION AND RETAIL JSC, DURATION 2015-2020 TABLE OF CONTENTS INTRODUCTION .5 Overview of VNF1 JSC Necessity... 77 VNF1 Corporation or Corporation: VNF1 JSC or VNF1, or Company: HACCP: TCVN: Vietnam Northern Food Corporation; VNF1 Distribution and Retail JSC International food hygiene and safety standards