Luận văn thạc sĩ xây dựng chiến lược phát triển kinh doanh công ty cổ phẩn nước khoáng thiên nhiên VITAL

LUẬN VĂN Xây dựng chiến lược phát triển kinh doanh công ty cổ phẩn nước khoáng thiên nhiên VITAL THESIS MBA BUILDING DEVELOPMENT STRATEGY FOR VITAL MINERAL WATER PRODUCT OF VITAL JOINT STOCK COMPANY TABLE OF CONTENTS LUẬN VĂN Xây dựng chiến lược phát triển kinh doanh công ty cổ phẩn nước khoáng thiên nhiên VITAL THESIS MBA BUILDING DEVELOPMENT STRATEGY FOR VITAL MINERAL WATER PRODUCT OF VITAL JOINT STOCK COMPANY TABLE OF CONTENTS LIST OF FIGURES .5 LIST OF TABLES ABBREVIATIONS .7 INTRODUCTION I Background .8 II Purposes of the research 10 III Objective, scale and methodology 10 IV Structure of the report 10 CHAPTER 1: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT 11 1.1 Overview of strategy and strategic management 11 1.1.1 Fundamental definitions .12 1.1.1.1 Definition of strategy .12 1.1.1.2 Definition of strategic management 12 1.1.2 Roles of strategic management 13 1.1.3 Levels of strategic management 15 1.2 Strategic management process 16 1.2.1 Defining mission & objectives 16 1.2.2 External environment analysis 18 1.2.2.1 Macro-environment 18 1.2.2.2 Micro- environment .21 1.2.2.3 External Factor Evaluation EFE .24 Total weighted score of 2.46 indicates that the business has slightly less than average ability to respond to external factors 26 Source: External factor evaluation, Maxi-Pedia Directory, 2008 .26 1.2.3 Internal environment analysis 26 1.2.3.1 Resource evaluation 27 1.2.3.2 Evaluation of functional departments 28 1.2.3.3 Internal Factor Evaluation IFE 31 1.2.4 Strategy formulation .33 1.2.4.1 Strategy formulation process 33 1.2.4.2 SWOT Matrix 33 1.2.5 Strategy implementation 35 1.2.6 Strategy evaluation and control 36 CHAPTER II: THE REAL SITUATION OF PRODUCTION-BUSINESS ACTIVITIES OF VITAL JOINT STOCK COMPANY .37 2.1 General information of Vital Joint Stock Company 37 2.1 History and development 38 2.1.2 Operation sectors 39 2.1.3 Personnel structure 40 2.2 Situation of production and business of Vital mineral water Company in the period of 2005 – 2009 42 2.2.1 Productivity growth 42 At the present, mineral water source of the company is exploited from drilling well and put into operation from 2003 and a new one has be used form 2009 With the current exploiting capacity, the company has produced some kinds of products: carbonated bottled mineral water, non-carbonated bottled mineral water, purified mineral water The company’s output has increased steadily over the years, especially in the 2009 with the amount of 10.66 million liter, by 158% comparing to 2008 The growth rate is different according to each specific product, varies from 147% to 163.7% (Table 2.1) 42 2.2.2 Business performance and market share of Vital 43 2.3 Analysis of factors affecting on operations of Vital Joint Stock Company 47 2.3.1 External environment 47 2.3.1.1 Macro-environment 47 2.3.1.2 Micro-environment .51 2.3.1.3 External factor evaluation matrix EFE 55 2.3.2 Internal environment 56 2.3.2.1 Human resource 56 2.3.2.2 Marketing activity 56 2.3.2.3 Research & Development 57 2.3.2.4 Finance and investment 58 2.3.2.5 Internal factor evaluation matrix IFE .59 2.4 Analysis on the status of creating and performing strategy for Vital mineral water product of Vital Joint Stock Company 60 2.4.1 Market expanding strategy 60 Expansion of market share is the ultimate objective of almost enterprises and Vital Joint Stock Company is not an exception Over the last few years, the company has tried to expand the market and market share as well by many different ways 60 2.4.2 The strategy of investing in infrastructure development 63 2.4.3 Product development strategy .64 2.4.4 Marketing strategy .65 Promotion is considered to be an important activity that promotes sales of enterprises in FMCG field like Vital natural miner water 65 2.4.5 Strategy of developing human resources .67 2.5 General review on practical results of performing strategy 68 CHAPTER 3: SOME SOLUTIONS TO BUILD DEVELOPMENT STRATEGY FOR VITAL JOINT STOCK COMPANY 70 3.1 Developing objectives of Vital Joint Stock Company by the year of 2005 70 3.1.1 Vision, mission and core value of the company 70 More than 10 years of performing, Vital Joint Stock Company always keeps vision, mission and core value These factors are the guideline to all of long-term and short-term strategy of the company .70 3.1.2 Development objectives .71 Be aware of challenges opportunities of the natural mineral water market and with the hope of continuing building and developing Vital brand sustainable, Vital Joint Stock Company set developing objectives as following directions: .71 3.2 Using SWOT Matrix to making strategy of the Vital Joint Stock Company 72 3.2.2 Choosing developing strategy .75 3.3 Solutions to build development strategy for Vital JSC 2010-2015 .77 3.3.1 Market expansion solution 77 3.3.2 Marketing solutions 78 Marketing is perhaps the most important activity in a business because it has a direct effect on profitability and sales Larger businesses will dedicate specific staff and departments for the purpose of marketing It is important to realize that marketing cannot be carried out in isolation from the rest of the business For example: The marketing section of a business needs to work closely with operations, research and development, finance and human resources to check their plans are possible Operations will need to use sales forecasts produced by the marketing department to plan their production schedules Sales forecasts will also be an important part of the budgets produced by the finance department, as well as the deployment of labor for the human resources department A research and development department will need to work very closely with the marketing department to understand the needs of the customers and to test outputs of the R&D section 79 3.3.3 Research & Development solutions 80 3.3.4 Personnel solutions 81 3.3.5 Financial solutions to invest in new technology and equipments 82 CONCLUSION 85 LIST OF REFERENCES 86 APPENDIX .87 Vital natural mineral water factory project in Dong Nai .87 LIST OF FIGURES Figure 1.1 Five-force model of M Porter .24 Source: Comparative advantage theory, M Porter (1990) .24 Figure 2.1 Structure of Vital product 40 Figure 2.2 Personnel Structure of Vital Joint Stock Company 41 Figure 2.3 Marketing department structure 42 Figure 2.4 Turnover growth of Vital in Hanoi, 2009 45 Figure 2.5 Turnover of Vital mineral water in term of regions (2009) 46 Figure 2.6 Market shares of various brands in Vietnam market (2009) 46 Figure 2.7 GDP growth of Vietnam over years .48 Figure 2.8 The income growth in Vietnamese rural and urban area 49 Figure 2.9 Changes in consumption belief of Vietnamese 50 Figure 2.12 Percentage of indirect sales channel (in percentage) 62 Source: Vital Joint Stock Company (2009) 62 Figure 2.13 Volume of direct sales channel 63 Source: Vital Joint Stock Company (2009) 63 Figure 2.14 New packaging of Vital (2009) .65 LIST OF TABLES The sum of all weighted score is equal to the total weighted score; final value of total weighted score should be between ranges from 1.0 (low) to 4.0(high) The average weighted score for EFE matrix is 2.5 any company total weighted score fall below 2.5 consider as weak The company total weighted score higher then 2.5 is consider as strong in position 25 Table 1.1 An example of External Factor Evaluation .25 Table 1.2 An example of IFE matrix 32 Table 2.1 Vital mineral water output over the years tank 43 Table 2.2 Consumption of natural Vital mineral water 44 Table 2.3 Mineral water turnover in term of brands 44 Table 2.4 SWOT analysis of competitors 52 Table 2.5 Five-force analysis model 54 Table 2.6 External Factor Evaluation matrix 55 Table 2.7 Vital’s internal factor evaluation matrix 59 Table 2.5 Monthly bonus income to distributors (2009) 66 Table 3.1 SWOT analysis of Vital natural mineral water 72 Table 3.2 GREAT analysis 75 ABBREVIATIONS Terms Description ATL Above the line BTL Below the line CEO Chief Executive Officer FAO Food and Agriculture Organization SBU Strategic Business Unit UNIDO Vital JSC United Nations Industrial Development Organization Vital Joint Stock Company INTRODUCTION I Background Vietnam has approached the market economy for over 20 years This duration is not too long as well as too short for Vietnamese enterprises to apply management methods of the market economy procedure Strategic management has been considered as one of the most useful business theories which can help enterprises to achieve successes in a long – term The way they are using these theories, however, should be re-considered in almost all organizations in Vietnam In 1996, with the approval of Thai Binh People Committee, Vital Joint Stock Company was established and started to build the most modern natural mineral water production factory in Vietnam by a technology chain from Italy All equipments of the factory are also controlled and checked by experts from FDT – Italy Through many years of developments, Vital natural mineral water - its main product - has achieved a certain position step by step in the market as well as in consumers’ mind In comparison with other products in the bottled market, however, the awareness of Vital natural mineral water is not really clear If consumers know about Aquafina as one of the most quality pure water products or Lavie as an absolute part of life, they still confuse about Vital’s image due to its dull position and scattered appearance in communication vehicles Moreover, the company often encounters with the situation of lacking products for sales because the production capacity of its unique factory in Thai Binh cannot meet the increasing demand of customers In addition, there are more and more bottled water products and the market is becoming so competitive It is clear that Vital product is sort of clear and effective strategies, especially marketing strategy or financial strategy to stay stable in the bottled water which is on its way to be saturated Therefore, we decided to choose the topic “Building development strategy for Vital mineral water of Vital Joint Stock Company 2010- 2015” for our capstone project This topic does not only apply knowledge of strategic management but also contributes significant practical recommendations for the development of Vital JSC as well as Vital brand II Purposes of the research The research focused on following issues: - Fundamental theories of strategy and strategic management - Useful models to analyze the process of establishing and choosing strategy - The real situation in which Vital JSC has been implementing its strategy - Analyze factors of the external and internal environment which affect on - company’s strategy Appropriate solutions to build the development strategy for Vital natural mineral water brand of Vital Joint Stock Company III Objective, scale and methodology - Objective and scale: The research focuses on current strategic management activities of Vital JSC and provides some solutions for the period of 2010-2015 - Methodology: The research used two kinds of information sources: Primary and secondary information The secondary information came from various sources However, a major percentage of them were from reports about current business situations of Vital natural mineral water brand which were provided by Bitexco and Vital JSC Besides, they were also gathered from many opened sources such as internet and books In addition, the research took uses of information from reports of market researches of famous international research companies such as AC Nielsen or TNS IV Structure of the report 10 Various strategies Low-cost Differentiating Point Converted Point Converted Items Weight Gain (G) Risk (R) Expense (E) Achievability 0.1 0.25 0.3 0.25 20 20 20 40 (A) Time (T) Total 0.1 45 point 10 4.5 27.5 30 15 15 20 15 point 3.75 4.5 1.5 17.75 Mixed strategy Point Converted 40 20 30 35 40 point 8.75 30.75 In an intensively competitive market like that, Vital is not too differentiating to consumers, high production costs, especially purified bottled water Based on all the things above, the way that Vital has chosen is employed simultaneously: • Differentiating strategy • Low cost strategy In traditional ways, enterprises often choose one of two strategies, differentiate or low cost However it is changed over the times Mineral water market is intensively competitive, so if the company uses the old strategy, it will not business in long-term This is “Ocean blue” philosophy which is applied successful by lots of enterprises at the moment Low cost as a strategy is about producing what, to the consumer, appears to be the exact same product as a competitor or a nearly identical product with the same value, just being able to produce it more inexpensively When competing soley on price, the firm with the lower cost structure wins, since it could either charge less than the competition an increase volume, or charge the same as the competitor to generate more margins on the same volume If you're not producing the exact same product as a competitor, your 76 strategy is to differentiate your product somehow Even companies that appear to be pursuing a “low cost” strategy really are differentiating themselves Product managers will always be dealing with differentiated products - after all, if you are producing a non-differentiated product, you not need a product manager, just a production manager to drive down costs The challenge as a product manager is to differentiate your product from the competition and provide value for your customers To achieve this, Vital Joint Stock Company need to do: • Upgrading products to create more added value • Minimizing unnecessary cost • Investing in technology development to improve product quality and reduce production cost • Expanding distribution system • Increasingly advertising brand’s image • Investing in market research • Ensure the flow of information system in the enterprises 3.3 Solutions to build development strategy for Vital JSC 2010-2015 3.3.1 Market expansion solution To implement successfully in the market expansion, the company needs to focus on following perspectives: - Investment in the Vital factory in Dong Nai in order to supply goods for the southern area and the whole country (this content will be analyzed in the next - part) Widen the distribution system, ensure that it stable and broad over the country 77 Conducting a broad distribution policy is what the company should implement at this time If its distributon policy is effective, marketing & promotion actitvities will be promoted fast through these distribution channels Vital’s distribution system is still short and mainly in developed areas It is too easy to realize that Vital’s distribution system operates strongly in the nothern area The company still leave the central and southern markets while these are really potential areas where can bring high profits for the company However, the company started to develop a distribution system in Ho Chi Minh city from the early 2009 but it does not work professionally With current situations, a distribution strategy which can be appropriate for the company contains following objectives: • Promote the distribution system in the sothern area, especially in HCM • Widen indirect distribution channels in provinces in order to stablize the whole distribution channel of the comapny • Re-check the distribution channels, especially distributors in Hanoi in order to determine the most suitable number of distributors • Business, HR, salary policies needs to be stablized to increase sales • Maintain distribution system of hotels, restaurants and promote shop channels as well in order to make sales increase • Improve skills of planning as well as forecasting the increase of sales • A clear direction for managements of direct and indirect channels in Hanoi to remove the price competition between two channels • Offices, households channels in Hanoi & Ho Chi Minh City need to be widen more and more 3.3.2 Marketing solutions 78 Marketing is perhaps the most important activity in a business because it has a direct effect on profitability and sales Larger businesses will dedicate specific staff and departments for the purpose of marketing It is important to realize that marketing cannot be carried out in isolation from the rest of the business For example: The marketing section of a business needs to work closely with operations, research and development, finance and human resources to check their plans are possible Operations will need to use sales forecasts produced by the marketing department to plan their production schedules Sales forecasts will also be an important part of the budgets produced by the finance department, as well as the deployment of labor for the human resources department A research and development department will need to work very closely with the marketing department to understand the needs of the customers and to test outputs of the R&D section A analyzed above, however, marketing activities of Vital brand still meets many difficulties and has a lot of shortcomings Therefore, an effective marketing strategy should include following contents: • TV commercial is the key which helps to increase the brand’s awareness and stimulate consumption demand in the next time • To support for TVC, advertisements in magazines, newspaper should also carried out in order to remind consumers about brand’s image • Keep sponsorship activities, PR which can help the brand appear more frequently in public communications • Besides above-the-line performances, promotion activity is one of the effective methods that the company can take use of However, Vital’s distribution system should be re-checked 79 • Time allocation between promotion campaigns should be rationalized This will help the company to have enough time between campaigns to achieve good preparations • A tight management of promotion activities should be built in order to avoid the cheating situation of intermedia distributors • Intensy to carry out promotion campaigns for the final consumers This does not only help to increase sales but also increase brand’s awareness 3.3.3 Research & Development solutions R&D is investigative activities that a business chooses to conduct with the intention of making a discovery that can either lead to the development of new products or procedures, or to improvement of existing products or procedures Research and development is one of the means by which business can experience future growth by developing new products or processes to improve and expand their operations However, there are a few Vietnamese enterprises has spent for R&D They have not realized the full role of R&D for their business The same with Vital, R&D is an activity that the company seems to be too weak R&D would be an appropriate solution for the company to expand its market share and to be different with hundreds of bottled water products floating in the market In Vietnam, there are some international research companies which serve for fast consumption sectors like bottled water market They are AC Nielsen, TNS, FTA They provides various packages of market research services One of these services would be suitable for Vital JSC conditions and budgets Investment on market research is an intelligent decision for any enterprise Besides market research, the company also should invest in product developments By investing in and innovating technology and equipments, the company can create the highest quality products which can serve their customers best Unfortunately, research 80 and development are very difficult to manage, since the defining feature of research is that the researchers not know in advance exactly how to accomplish the desired result As a result, higher R&D spending does not guarantee "more creativity, higher profit or a greater market share 3.3.4 Personnel solutions The Human Resources function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies Usually small businesses (for-profit or non-profit) have to carry out these activities themselves because they can't yet afford part- or full-time help However, they should always ensure that employees have and are aware of personnel policies which conform to current regulations These policies are often in the form of employee manuals, which all employees have Nowadays, the competition in business is really violent The company cannot stand stable in the market if they don’t have a strong human resource Therefore, human resource management is one of the key factors which determine the existence of the company in the market The Human Resources function may set strategies and develop policies, standards, systems and processes to implement these strategies in a whole range of areas for which the following would be typical of a wide range of organizations - Recruitment and Selection (Resourcing) 81 - Organizational design and development Business transformation and change management Performance, conduct and behavior management Industrial and employee relations Human resources (or workforce) analysis and the management of workforce - personal data Compensation, rewards and Benefits management Training & development (Learning management) In recent years, Vital JSC has been performing well in HR management They have a high-quality and strong staffs thanks to professional short training courses which is held by experienced experts from famous universities Besides, they also have effective policies in recruitments However, they have to be more flexible in salary policy and supports out of main salary in order to keep their staffs staying with the organization longer and longer 3.3.5 Financial solutions to invest in new technology and equipments With over 10 years operating in the bottled water market, Vital has been really familiar with every single Vietnamese person, especially in economic-social events It has been known as a high-quality narual mineral water product which is good for consumer’s health VITAL mineral water has become the first Vietnamese sponsor to sign an exclusive agreement with the organizers of SEA Games Bitexco, the producers of Vital, has won the right to be the sole supplier of water for all athletes and officials at the games for many years It had beaten off in the process several well-known rivals National Sports Committee vice head Luong Quoc Dung said Vital was selected as it had a proven track-record in sponsoring regional sports meets Moreover, Vital was the first Vietnamese mineral water-maker to get into sponsorship of regional football events like the Tiger Cup and Asian U-16 In addition, Vital often appears in important conference of government and national assembly, in almost big restaurants and hotels 82 Vital is also a close partner of customers in domestic and international fights Furthermore, Vital is also a close friend of many people in offices, schools, banks, hospitals, sport areas, households… With the development of the economy and income of Vietnam people, demand for highquality bottled water products is becoming higher and higher However, the capacity of Vital factory in Thai Binh is just enough for the northern area and a small demands of the southern market Therefore, the company needs to develop another factory in this market and Vital factory project in Dong Nai is a long-term solution This project is necessary because: • Improve the production capacity, meet the increasing demand of the market • Help the company to reduce costs and prices, increase the quality of Vital products • Take advantages of current Vital brand with experiences in many years T • Create more jobs for many people Currently, Vital JSC is facing with many difficulties in production capacity The out of stock situation has been lasting for a long time while demands for bottled water products have increased more and more Capacity of Thai Binh factory just meets demands of consumers in the North and a major of consumers in the South cannot be reached This current issue is really dangerous because it is an opportunity for competitors to take over Vital’s market share As Dong Nai factory is officially used, the ability of meeting the demand of the whole market would not be Vital’s nightmare anymore Vital products would appear in every single comer in Vietnam The project is also an opportunity for the company to cut down unnecessary costs such as transportation, distribution and inventory costs In addition, with a modern production line, arisen costs in the production process would be restricted as much as possible Not 83 only in saving costs, the quality of Vital product can be also improved significantly thanks the new and modern production line Consumers would be happier and has no complaint about Vital products There is one more important thing that the project can solve financial issue for the company The project is a great promise about many jobs for people in Dong Nai and especially high profits Therefore, is can attract various investment resources This helps the company to have a stable and abundant financial source With the current situation, Vital new factory project is considered as one of the key solution which helps the company expands its market share in coming years (see more details on appendix) 84 CONCLUSION For an enterprise, objectives for all business- production activities are profit and its position in the market However, each enterprise has its own value For Vital Joint Stock Company, providing safety products which are good for consumers’ health is their task and is what they are forwarding Based on this point of view, the company does not stop trying to expand its production, especially planning effective marketing strategies With over 10 years operating in the bottled water market, Vital JSC has achieved certain results Vital products are becoming more and more popular with social, economic and political events as well as Vietnamese people However, with a limited resource, Vital cannot avoid shortcoming in the process of planning and implementing strategy This report does not only point out shortcomings but also give directions for the company in planning and implementing its strategy The company then can complete its mission and objectives In coming years, Vital brand can be one of three top brand in the bottled water market in Vietnam In a mean time, the report cannot avoid some certain mistakes Our group would like to receive sincere contributions and comments from professors and other students to make the report more complete and can be a direction for future researches 85 LIST OF REFERENCES Business reports of Vital Joint Stock Company from 2005 to 2009 Fred R David, Overview of strategic management, Statistical Publishing House Nguyen Dình Tho & Nguyen Thi Mai Trang (2007b), Research on marketing – Application of models SEM, TPHCM, National University - HCM Nguyen Huu Lam, Dong Thai Hoang, Pham Xuan Lan, Strategic management for comparative advantage development (1998), Education Publish Nguyen Tan Phuoc, Strategic management and business strategy (2009), Dong Nai Publish Le The Gioi, Nguyen Thanh Liêm, Tran Huu Hai, Strategic managemern (2007), Statistical Publishing House Le Van Tam, Strategic management (2000), National economic university Nguyen Thi Lien Diep, Pham Van Nam, Business strategy and policy, Statistical Publishing House Nguyen Thanh Do, Nguyen Ngoc Hien, Business strategy and policies for the development of enterprises (2002), National economic university 10 Temporal Paul (2007), Advanced strategic management, Ho Chi Minh Youth Publish 11 Pham Thi Thu Huong, Strategic management in the global economy, Science and Technical Publish 12 Dinh Cong Tien (2008), Marketing by PR, Statistical Publishing House 13 Duong Huu Hanh (2008), Marketing strategy, HCM Statistical Publishing House 14 Raymond Alain - Thiétart, Strategies for enterprises (2000), France-Vietnam Center 15 Building and implementing business strategy (2005), Education and Management Research Institute, Social Labor Publishing House 86 16 Westwood John (2008), Effective Marketing Planning, HCM Statistical Publishing House APPENDIX Vital natural mineral water factory project in Dong Nai Overview The project has an official name ‟Vital natural mineral water factory” which is built in Xa Doi 61, Trang Bom town, Dong Nai province The factory is constructed with an expected production capacity of 25 million little per year Main products will be Vital natural mineral water 350ml, 500ml, 1500ml and littler, 12 littler & 19.5 littler Objectives of the project Coming with the development of the economy, income of Vietnamese has increased significantly Therefore, people care more about high-quality products which are good for their health Water, especially natural mineral water, which brings good health, is one of products that people are aiming However, the providing capacity for the market is now not enough This is an opportunity for Vietnam enterprises to enter and extent their business Vital Joint Stock Company has over 10 year in mineral water business-production Vital brand has become one of the most popular brand names in the market as well as in consumer’s mind With this project in Dong Nai, it has a chance to extent its market share, especially in the southern area Technology chain Natural mineral is explored from the deep of 450m and has a stable temperature of about 38oC with the capacity from 10 to 12 m3 per hour following the indicator tube to the 87 Oxygenated equipment The company uses Ozon as a factor to remove soft substances such as Fe++, Mn ++ out of mineral water After that, water is pumped up to the multi-filter equipments MMF1, MMF2 to remove inpurities Clean water after filtering is put into a treatment tool S1 From here, filtered water is automatically pumped to the last treatment equipment FCA and FCC Production capacity : Unit: Litter Orde r Production capacity Items Unit Underground water exploration Water tackling ability Bottling ability Decantering ability PET production m3/day m3/day Bottle/day Decanter/hour Bottle/hour Before After 60 120 2400 120 2400 240 200 4000 200 4500 Technology solutions: Advantages of technology solutions Order Comparison items Before Pouring equipment Ozon equipment Cleaning, extracting and closing equipment are separate It’s difficult to control Only provide Ozon equipment for bottle cleaning equipment After Pouring equipment has functions and ensure the food safe Provide Ozon for the whole water treatment system 88 Equipment to produce PET bottle: - Materials cost to produce bottles - Power cost (kw/h) 2,4 kg kg 300 150 Price reduction: Production cost Order Items Before After 500ml non- 1,235 1,065 VND/bottle, in there: carbonated - Saving materials : 130 VND VND/bottle - Power saving: 40 VND/bottle (Decrease by about 10-15%) Exploration and factory management Vital natural mineral water factory was invested by the most modern technology chain and equipment in Vietnam with a productivity of 25 million litters per year In early years, the factory will focus to produce main products including: bottles of 350ml, 500ml, 1500ml and decanter of l, 12 l & 19.5 l In the future, when the capacity of the factory is explored fully, Vital brand can be known with new products which meets the demand of Vietnam soft drink market Vital Joint Stock Company has a strong marketing in HCM branch in many last years To be ready for requirements of the new factory, the company has recruited new senior marketing staffs, sales staffs and built a new distribution system in the sourthern area These new staffs will be also trained by famous experts Besides, the company will 89 transfer some key people of the head quarter to its branches in order ro support more for the new market Analysis of effectiveness To build Vital factory in Dong Nai, one of the most modern factory in natural mineral exploration and production factories in Vietnam, the company intends to invest 40,050,414,500 VND with main items including: Cost for drilled well, Factory construction cost, Cost for intermediary stocks, Equipment cost, Transportation vehicles, interest, marketing budget, provision Details: Main items Cost for drilled well Value 649,519,000 Factory construction cost 11,130,210,000 Cost for intermediary stocks 10,000,000,000 Equipment cost 8,046,996,500 Transportation vehicles 2,348,064,000 Interest 975,625,000 Marketing budget 5,400,000,000 Provision 1,500,000,000 Total 40,050,414,500 To be careful, in the first operating year, the company intends to work with about 52% of productivity and then will increase step by step Details, the factory will operate 63% of its capacity in 2011, 70% of its capacity in 2012, 80% of its capacity in 2013, 85% of its capacity in 2014 and then 95%-100% from 2015 Therefore, this project is considered as an opportunity which can helps the company to take a high jump in the future 90 ... LUẬN VĂN Xây dựng chiến lược phát triển kinh doanh công ty cổ phẩn nước khoáng thiên nhiên VITAL THESIS MBA BUILDING DEVELOPMENT STRATEGY FOR VITAL. .. and developing Vital brand sustainable, Vital Joint Stock Company set developing objectives as following directions: .71 3.2 Using SWOT Matrix to making strategy of the Vital Joint Stock... of Vital product 40 Figure 2.2 Personnel Structure of Vital Joint Stock Company 41 Figure 2.3 Marketing department structure 42 Figure 2.4 Turnover growth of Vital