PHÂNTÍCHSWOTCƠNGTYSỮAVINAMILK Subject: Board of Directors requires you as an officer in charge (the highest level) of information technology in business to plan to build an Information System to improve the efficiency of Management and Business in the five-year period from 2012 to 2016 and vision to 2020 Prepare a report and submit it to the Board of Directors for approval of funding, personnel, deployment time and proposal of specific targets The basic content of the report: * Introduction of Vinamilk: Founded in 1976, Vietnam Dairy Products Joint Stock Company was formerly Southern Coffee-Dairy Company as a subsidiary of the General Food Directorate Through a number of mergers, conversion of functions and organizational structure In 2003, Vietnam Dairy Products Joint Stock Company (VNM) was established under Decision No 155/2003/QD- BCN in November 2003, with the founding charter capital of 1.590 billion dong Main business lines: Manufacturing and trading canned milk, milk powder, milk, soy milk, fruit juice and other dairy products Trading technology food, spare parts, supplies, chemical, raw material Trading real estate, leasing warehouse Breeding milk cow, mixed farming and livestock Manufacturing and trading alcohol, beverage Manufacturing and trading plastic products Vinamilk’s Mission: Constantly diversifying product lines, expanding distribution territory in order to maintain and sustainably leading the domestic market and maximize the benefits of the company VNM’s goal: Becoming one of the leading healthy food and beverage group in Vietnam; maximizing shareholder value * Status of Vinamilk: Currently, dairy products not have substitutes; on aspect of the needs of consumers, dairy products can compete with many other health care items such as beverage, etc Vinamilk is not under pressure from any distributor For fresh dairy product, when purchasing price of materials is high, the company could sell them at a high price that consumers have to accept Therefore, the dairy industry can turn the disadvantage from external suppliers to customers Product category of VNM: Diversified and strong Main products are milk and drinks Diversified products serve many consumer objects Some products aim at a target customer, specifically small children, adults and the elderly, and other products are for households and business establishments such as restaurants and coffee shops Various products with different sizes are provided to customers to make them feel convenient because they can bring it anywhere NM is one of the few companies of food and drinks with a selling system using cooler and freezer Using cooler and freezer for selling is one of big barrier for competitors who want to participate in the food and drinks market because cooler and freezer cost require a high budget VNM builds a sustainable relationship with suppliers to ensure a reliable milk supply: It provides a financial support to farmers so that they can buy milk with a good quality at a high price The plants are located in strategic positions near the dairy farm It carefully selects the location of milk collection center to ensure a good quality of fresh There is a fierce competition between companies in the industry such as: Hanoi milk, Nestles, etc Vinamilk is the country's largest dairy company holding 37% of market share Core values of the company: Dignity, equality and dedication to the development of the company Daring to think, daring to and daring to take responsibility to overcome all challenges to achieve commitments Openness, frank exchange in the spirit of team building as the basis to make VNM united and stronger Integrity: anything that VNM is doing is straightforward, transparent and ethical Benefits of VNM are also benefit of employees, partners, Government and society Effectiveness: VNM is interested in value increase in investment activities VNM respects for the passion, the unique discoveries and innovative solutions * SWOT analysis of Vinamilk: + Strengths: Leading position thanks to a well-built brand (advertising on the mass media with much time, many eye-catching forms of marketing, innovative products, good knowledge of consumer trends) Extensive distribution and sales network, effective marketing strategy Sustainable relationship with suppliers; research and market development capacity Equipment and technology to international standards; application of information technology in production, management and sale of goods + Weakness: Weak marketing, no message for consumers to understand the difference of milk from reconstituted milk and pasteurized milk + Challenge: Risk of payment; Imitation and poor quality of milk products, affecting the reputation of the company The competition with international brand dairy products; Melamine contamination affecting consumer psychology leading to fall in revenue + Opportunities: Vinamilk is listed in the top 10 high quality Vietnamese goods since 1995 VNM is famous in the domestic market and many countries around the world Attention and incentive of Government to encourage farmers raise mil cow to create raw materials for the company Comparison with competitors: Vinamilk Advertisement Same Vietnam Travel Vietnam Airlines on Advertisement on mass Advertisement on media mass media mass media Website to introduce Website to introduce products products Constant change of Constant change of the the product design Customers irrespective of age, gender, nationality Website to introduce products product design Constant change of the product design Customers irrespective of age, gender, nationality Customers irrespective of age, gender, nationality Experience and lessons drawn from the application of information technology in business: For effective application of information technology, it is required to know the products to be provided, objectives, and the needs of the consumer to provide the service; provide telecommunications infrastructure connecting computers together; universalize knowledge of information technology for employees; make focus investment; use information technology personnel regardless of age for the business; they must knowledge and capacity of information technology A good collaboration a team or a group of people is also required to improve the efficiency of IT operations in business + Solution of information technology application in Vinamilk Online sales and provision of complete services from infrastructure, transmission lines to servers; synchronous enterprise management system and integration between IT and telecom Application of business management software such as ERP Orale EBS11, SAP CRM (Customer Relation Management System), BI (Reporting system); using SAP program through the Internet or Offline connection using Microsoft’s Solomn software Information technology and e-commerce application strategy of Vinamilk: Vietnam Dairy Products Joint Stock Company (VNM) is a leading enterprise of the milk processing industry VNM holds more than 80% of the milk market in Vietnam In addition to the distribution of products in the country, VNM exports products to many countries such as: USA, France, Canada, Poland, Germany, etc to meet the increasing demands of consumers VNM continuously renovates its technology and makes investment in modern machinery and equipment VNM applies information technology in production and business activities of the enterprise IT and e-commerce are applied in the entire business system, including marketing, sales, distribution and payment With the spirit of "understanding and speaking the same language", all VNM’s data from distributors to sales staffs around the country will be identically managed, so the system users can use any data and information with a high accuracy Route of sales and store display image are sent to the system in a convenient and quick manner to help managers to monitor employee's activities in the market, in order to increase the quality of customer service, enhance corporate reputation, improve efficiency of corporate management and governance With the purpose of strengthening, building and developing a system of powerful brands to best meet the needs and psychological consumption of customers VNM explores the power and reputation of Vinamilk brand as a nutrition brand with scientific reputation and the most reliable one Vinamilk commits to provide the community with the best nutrition and the best quality with respect, love and responsibility in respect of human life and society Vinamilk’s mission: Becoming a No symbol of belief in Vietnam for nutritious and healthy products to serve human life Making specific action plan and targets: Due to the nature of business, VNM is the consumer goods industry which must maintain a regular advertising so that consumers always know its brand Therefore, Vinamilk has invested heavily in promotional costs and distributor support In 2009, advertising cost was 369 billion dong; profit before tax cost was 10,614 billion dong In 2010, advertising cost was 485 billion dong; Profit before tax cost was 15,753 billion dong In 2011, advertising cost was 400 billion dong; Profit before tax cost was 21,627 billion dong To convince consumers with science and fact, VNM needs to ensure three core issues including quality-price-service style To become a strong and reputable brand in domestic and international market, VNM’s roadmap for information technology and e-commerce development n the short and long term is allocated as follows: The period 2012 - 2016: Investment of VND 100 billion in the following items: Computer, email and Website to search information on the Internet Software to promote the business on Website; Product and services support for customers; application of software of Human Resource Management, Accounting, Sales, and Production; corporate intranet development Deployment of a software system for Customer and Supplier management and Resources management Training of human resources, managers and staffs of Information technology and e-commerce application in their work Introduction and advertisement of the products through media such as: TV, radio, newspapers, Internet, etc In the period 2016 - 2020: It will invest 200 billion dong to upgrade the system and apply the information technology and e-commerce in the entire business operation Product introduction and promotion, design, customer seeking, product quality management, sales, payment, inventory control, application of science and technology in the production and storage of goods will apply IT and e-commerce; with a team of managers, sales staffs, marketing staffs, good understanding and use of machinery is required so that IT and e-commerce become an effective tool to help VNM increase profit, reduce costs, assert the brand not only in the country but also in the international market By 2020, Vinamilk is expected to become one of 50 leading enterprises in the world 1- ... transparent and ethical Benefits of VNM are also benefit of employees, partners, Government and society Effectiveness: VNM is interested in value increase in investment activities VNM respects for... carefully selects the location of milk collection center to ensure a good quality of fresh There is a fierce competition between companies in the industry such as: Hanoi milk, Nestles, etc Vinamilk. .. feel convenient because they can bring it anywhere NM is one of the few companies of food and drinks with a selling system using cooler and freezer Using cooler and freezer for selling is one