Nghiên cứu năng lực cạnh tranh của tổng công ty bia – rượu – nước giải khát hà nội (HABECO) tt tieng anh

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES TA MINH HA STUDYING THE COMPETITIVENESS OF THE HANOI BEER ALCOHOL AND BEVERAGE JOINT STOCK CORPORATION (HABECO) Major : Business Administration Code : 9.34.01.01 SUMMARY OF THE THESIS HANOI, 2019 The work was completed at GRADUATE ACADEMY OF SOCIAL SCIENCES Scientific Supervisor: Assoc Prof.PhD Hoang Van Hai Assoc Prof.PhD Tran Thi Lan Huong Reviewer 1: Assoc Prof.PhD Bui Huu Duc Reviewer 2: Assoc Prof.PhD Bui Van Huyen Reviewer 3: Assoc Prof.PhD Tran Minh Tuan The dissertation will be defended before the thesis review council of the Academy at the Graduate Academy of Social Sciences at hour minute, day month year The thesis can be found at: - National Library of Vietnam - Library of Graduate Academy of Social Sciences INTRODUCTION The urgency of the topic Enhancing competitiveness is currently paid great attention in many countries and businesses (enterprises) in the world In Vietnam, this issue has become more urgent, in the context of active and positive international and economic integration, Vietnam's economy has been deeply integrated into the global playing field Therefore, in order to be able to compete and overcome foreign enterprises, Vietnamese enterprises need to constantly improve its competitiveness Beer - Alcohol - Beverage Industry is an important economic sector, producing many products to meet the essential needs of people, domestic needs and exporting needs in the world In Vietnam, beer is one of the items that account for a large proportion of consumer’s demand, beer accounts for 94% of total alcohol consumption and 31% of the total beverage market In 2018, the growth rate of this industry reached 5.7% - the highest among the 10 countries with the largest market size [24] According to the General Statistics Office, the Beer - Alcohol - Beverage Industry sector contributes annually to the State budget with impressive figures, in 2018, the whole sector paid over VND 50,000 billion to the State budget In addition, the industry creates jobs for a lot of workers with relatively high and stable income According to statistics of the Vietnam Beer-Alcohol-Beverage Association, as of 2018, the country has 110 breweries located in 43 provinces and cities According to the planning for development of Vietnam's beer, alcohol and beverage industry by the Ministry of Industry and Trade to 2025, with a vision to 2030, by 2020, the country will produce about 4.1 billion liters of beer; by 2025, the beer production scale will increase to 4.6 billion liters; By 2035, domestic beer production will increase to 5.5 billion liters In order to develop beer, alcohol, and beverage industry, enterprises in the industry need to research enough opportunities to seize and develop, besides, it is vital to be prepared to deal with increased market challenges [89] One of the enterprises having a very good position in this industry is the Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) with over 60 years of establishment and development The Corporation has experienced many ups and downs through many historical periods, gradually made a deep impression in the minds of customers not only in the Hanoi market but also nationwide and offerred products to access the regional and international markets The main product of the Corporation is beer, with special know-how accompanying the development of the Corporation After many years, its beer still retains the traditional flavor and image in the minds of consumers With the 3rd position in the beer industry's share, sales increased steadily over the years from VND 6,710 billion in 2013 to 7,867 in 2017 with consumption of 766 million liters However, since 2017, the Corporation's sales volume and revenue has showed signs of decline due to the fierce competition of enterprises in the industry Therefore, the reason for choosing the author's topic comes from certain grounds: Firstly, Vietnam is a signatory and member of many economic organizations in the world With fierce competition in the industry, especially when Vietnam joined many major economic organizations such as ASEAN, APEC, WTO and most recently the CPTPP This is a great opportunity for Vietnamese enterprises in general and HABECO in particular to expand the market, improve the reputation and bring Vietnamese enterprises' brands to the world However, the Corporation faces huge challenges of domestic as well as foreign enterprises in order to maintain market share and reputation Therefore, improving the competitiveness of HABECO is necessary for the Corporation to compete effectively and enhance its position in both domestic and international markets Secondly, the Corporation introduces a number of different types of beer to meet relevant market segments However, with the fierce competition in the market, rival businesses often have new products to meet the changing and growing needs of consumers Sabeco still holds the largest market share in the beer market, but its revenue is lower than Heineken and HABECO are experiencing a sharp decline in both revenue and market share In 2018, revenue decreased by 5%, profit after tax decreased by 23% compared to 2017, this is a very worrying issue for HABECO The consumption trend of customers has changed dramatically from the intermediate market to high-end market This has greatly changed the production mindset of businesses If the Corporation does not quickly research and provide suitable products, its competitiveness will be reduced Thirdly, the market area of the Corporation is narrowed due to the lack of investment worthy of expanding the market In 2014-2017, the company's beer market witnessed the strongest growth, especially in the Southern region, but this market share is gradually being occupied by other companies, especially by a very strong competitor known as Sabeco, and the Northern market has also decreased This is alarming because the North market has been the company's main market for many years Another problem is that the high-end market segment is being occupied by foreign investors In 2015, the Corporation launched Truc Bach beer product to enter this market, although it has received good feedback but it has not yet brought significant results In 2018, the Corporation's market share and consumption area continued to be narrowed to 15% of the market share compared to 17% in 2017, this is a sign of the decline in the competitiveness of the Corporation Because of the above reasons, the PhD student decides to chose the topic: "Studying the competitiveness of Hanoi Beer Alcohol Beverage Joint Stock Corporation (HABECO)" as the topic of the dissertation Study purposes and objectives 2.1 Study purposes Study and propose solutions to improve HABECO's competitiveness by 2025, with a vision to 2035 2.2 Study objectives From study purposes, the dissertation focuses on the following tasks: - Systematize the theoretical issues on competition and competitiveness, clarify the meaning of improving the competitiveness of enterprises Develop criteria framework to evaluate the constituent elements of competitiveness - Analyze the actual situation and the components of the competitiveness of HABECO - Develop a study procedure, conduct surveys, collect ideas from employees and customers, and calculate results to analyze the situation and factors affecting the competitiveness of HABECO - From the strengths and weaknesses of HABECO, the author proposes solutions to enhance the competitiveness of HABECO with a vision to 2035, recommending to the macro management agencies on the competitiveness of enterprises in general and beer, alcohol and beverage-industry businesses in particular Object and scope of the study 3.1 Object of the study The study object of the dissertation is the competitiveness of Hanoi Beer, Alcohol and Beverage Joint Stock Corporation 3.2 Scope of the study * Regarding content: The dissertation focuses on the theoretical and practical basis of competition and competitiveness of HABECO including the following elements: governance capacity, human resource capacity, financial capacity, marketing capacity, production technology capacity and corporate culture * Regarding space: Analyzing and evaluating the competitiveness of HABECO through employees of the specific Corporation: Parent Corporation; Me Linh - Hanoi Beer Factory; Hanoi Beer Trading Joint Stock Company (HABECO - TRADING.,JSC) specializes in draft beer business; Hanoi Beer Trading Co., Ltd (One member) consumes bottled beer and canned beer The study is conducted mainly in the North which is the main market of HABECO * Regarding time: Analyzing and assessing the reality of the competitiveness of HABECO in the period of 2013-2018, proposing solutions to improve the competitiveness of the Corporation by 2025, with a vision to 2035 Methodology and study methods of the dissertation The dissertation is based on a combination of the following study methods: - Method of descriptive statistics The dissertation used many sources of data from the General Statistics Office, Ministry of Industry and Trade, Vietnam Beer - Alcohol - Beverage Association, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation, previous documents, newspapers and study reports These documents were gathered by the PhD student to analyze and assess the reality of the competitiveness of HABECO - Method of synthesis, analysis, comparison In addition to the documents collected from the Corporation and its subsidiaries, the PhD student also collects secondary documents from specialized newspapers, magazines, documents from seminars and websites whose content is related to the topic - Method of interviewing experts: The author collected opinions of experts, researchers in the field of competition through seminars and exchanges Focus on meeting and collecting opinions of the leading officials in the Corporation; then, built up an appropriate questionnaire - Methods of investigation and survey + The author conducted a survey of 400 employees of Hanoi Beer Alcohol and Beverage Joint Stock Corporation (HABECO) and 300 customers who are HABECO's target markets + Customer survey data through surveys and interviews conducted in the period from April 2018 to October 2018 New contributions to the science of the dissertation Firstly, the PhD student offers elements that make up the competitiveness of HABECO: (1) Management capacity; (2) Financial capacity; (3) Human resource capacity; (4) Marketing capacity; (5) Technology and production capacity; (6) Corporate culture Impact factors are: (1) Policies and laws; (2) Population; (3) Economy; (4) Nature; (5) Competitors; (6) Assessment of customers Secondly, from the results of surveys and direct interviews, the dissertation determines the influence of each factor on the competitiveness of HABECO After testing the model and study hypotheses, and the results are satisfactory and ensure reliability From these results, the dissertation proposes recommendations to improve the competitiveness of HABECO in the future Theoretical significance and practical significance of the Dissertation 6.1 Theoretical significance There are many studies focusing on competitiveness in many different fields but there are barely of those that studying on the competitiveness of beer, alcohol and beverage enterprises as well as those centered on HABECO The dissertation has sucessfully given the concept of Competitiveness of beer, alcohol and beverage enterprises Developing the components of competitiveness and analyzing the factors affecting the alcoholic beverage and soft drinks industry 6.2 Practical significance Firstly, HABECO is an enterprise with more than 60 years of establishment and development, however, in recent years, the enterprise has experienced a decline in its output and is gradually losing its position in the market The dissertation gives a comprehensive view of the Competitiveness of this Corporation over the years, emphasizing the successes achieved and the limitations that from which help to propose advanced solutions in the future Secondly, conducting surveys and taking model accreditation related to the Competitiveness of HABECO From which there have been findings found in term of practical significance on the Competitiveness of HABECO, used as the basis for desging solutions and recommendations Thirdly, the dissertation is a reference for researchers, students, and those who are interested in the Competitiveness of HABECO Business administration manager and state management agencies therefore draw lesons and apply in making strategic planning and improving competitiveness The structure of the Dissertation In addition to the introduction, conclusion and references, the dissertation has chapters Chapter 1: A summary of the situation being investigated that related to the topic of the Dissertation Chapter 2: Theoretical and practical basis for enterprise competitiveness Chapter 3: Analyzing the competitiveness of Hanoi Beer Alcohol Beverage Joint Stock Corporation Chapter 4: Solutions and recommendations to enhance the Competitiveness of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation Chapter A SUMMARY OF THE SITUATION BEING INVESTIGATED THAT RELATED TO THE TOPIC OF THE DISSERTATION 1.1 An overview of the research works focusing on competitiveness 1.1.1 Foreign documents on competitiveness 1.1.1.1 The concepts of competition and competitiveness The concepts of competition and competitiveness have been around for a long time There are a great number of researchers interested in bringing out different concepts but have not yet to come up with a unified concept of Competitiveness Competitiveness can be considered and studied under levels: National Competitiveness, Industrial Competitiveness, Enterprise Competitiveness and Product Competitiveness All of these levels have a close relationship with each other, however the dissertation only focuses on researching the competitiveness aspect of the enterprise 1.1.1.2 Competitiveness models a SWOT matrix model b Diamond model c Five forces model 1.1.1.3 Factors constituting enterprise competitiveness There have been a large number of works and economists conducting studies on the criteria and factors affecting the competitiveness of enterprises Each study analyzed those factors from different perspectives Sankrusme, Sinee (2011) in the study titled " Marketing Strategy Competition among Beer Companies before Liquor Liberalization" [109], analyzing marketing strategies of some domestic and imported beer companies in Thailand The marketing strategies of local beers brands are product-related strategies such as product diversification, local wine sales with beer, pricing strategy, communication strategy, distribution strategy, brand strategy and strategies focused on customer satisfaction, after-sales services Some companies use the SWOT matrix to devise competitive strategies in the increasingly fierce beer market A study on a well-known Japanese brewery named Sapporo with the title of “Holdings Limited 2006 company profile edition 1: SWOT Analysis” [117], emphasizing the decisive factor to maintain and improve the quality of beer products is raw material input, therefore, the Company tighten the controls over its suppliers The study uses SWOT matrix to analyze the strengths, weaknesses, opportunities and challenges of the company in a fierce competition of domestic and foreign brewing companies in the Japanese beer market 1.1.2 Domestic studies on competitiveness Nguyen Viet Lam (2014), "Discussion the methodology to determine the Competitiveness of Vietnamese enterprises " [39] proposed a list of typical criteria and component elements that constitute the Competitiveness of enterprises The list includes groups, 10 criteria and over 20 different elements Group consists of the criteria related to production and business efficiency: Including sales and market share; Production and business results include elements: Costs per VND 1,000 of net revenue, profit per VND 1,000 of net revenue, coefficient of return on capital employed; coefficient of profitability of assets, profitability of equity Group consists of the criteria related to business capacity in the value chain of enterprises and creating value for customers which includes indicators: Capability of capital, human resources, scientific and technological level, management and innovation ability, marketing planning ability, marketing mix capability, ability to provide services, brand power of enterprises In addition, the author also presents the methods of assessing and measuring the value of indicators as well as qualitative and quantitative factors such as the method of expert interviews and appropriate audience interviews The article also mentioned the way to determine the weights of the criteria by expert method, multivariate regression method, and general method This is one of the articles giving a complete set of According to English-Vietnamese dictionary (2002), “Competition is a rivalry between enterprises in the same market to win more customers and increase the sales ” [22] According to Michael Porter, the goal of competition is to take over market share The nature of the competition is to seek out profit, the profit higher than what the enterprise is currently having In his book “Competition Strategy”, he states that “The factor of price is the method of competition commonly used by the participants, when an enterprise lowers the prices, the rivals will the same, the differences between products are the cause of competitiveness between enterprises, enterprises create uniqueness by making their products different, which will improve value, and so customers accept a higher and superior price than the additional shares” [55, pg 34-35] Over all, for competitions in this new era, enterprises not need to focus on rivaling against one another to take over more market shares and benefits, but to go their own ways and make their products unique compared to all others, to have their own market, with high sales and growth but without rivaling against one another 2.1.2 Benefits for competing Benefits for competing can be superior traits that the enterprise has or creates, so as to make products or traits superior than the rivals and gain higher sales in the market 2.1.3 Competitiveness The author presents the concept of competitiveness of Beer-AlcoholBeverage enterprises: “Competitiveness of beer-alcohol-beverage enterprises are shown in joint improvement of the resources of the enterprises, aiming to make products of outstanding and impressive quality, flavor and color, to satisfy the customers more than the rivals.” 2.2 Aspects of competitiveness of beer enterprises: 2.2.1 Governance capacity 2.2.2 Finance capacity 2.2.3 Human resources 2.2.4 Marketing capacity 11 2.2.5 Technology and production 2.2.6 Enterprise culture 2.3 Aspects affecting competitiveness There are many aspects that affect enterprises competitiveness but the dissertation focuses on aspects that have strong impacts on enterprises in beeralcohol-beverage industry: policies, law, population, consumer tastes, economy, environmemt, regional culture, rivals, and consumers’ satisfaction 2.4 Experience on improving competitiveness of some beer-alcoholbeverage enterprises, and lesson learned for HABECO 2.4.1 Heineken International 2.4.2 China Resource Breweries Ltd 2.4.3 Experience of Saigon Beer-Alcohol-Beverage Joint Stock Corporation 2.4.4 Lesson learned for Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO) First, about governance capacity, if the company cannot establish a proper administration apparatus that can adapt to the changes of the economy and the demands of the market, or converge senior leaders who are competent, experienced and qualified, then it is very difficult to set guidelines for the development of the company Second, about human resources, companies should pay attention to the process of fostering, training, encouraging, motivating and encouraging their members to voluntarily participate in training programs, to self-improve and to contribute into the development of the company Third, about financial capacity Enterprises need to take effective measures to build strong and stable financial sources to not only ensure that the production and business activities of the company take place smoothly, but also to increase trust with investors and banks, which are indispensable sources of capital mobilization when businesses embark on new projects Fourth, about Marketing Marketing strategies need to be planned and changed regularly to suit market needs with an unchanged goal of satisfying customer needs to the maximum, and in the most different, unique way 12 Fifth, regarding technology and production, enterprises, especially those in the business of beer-alcohol-beverage, need to always improve and update new technology lines and modern production processes to be able to improve the quality of products, reduce the consumption of raw materials and fuel, and be environmentally friendly Thứ sáu, about enterprise culture A company that has the standards or values which people can share and adhere to, such as work culture, mannerism, etc will create a friendly, positive, inspiring working atmosphere, encouraging the working spirit of the members in the company to the max Chapter ANALYZING THE COMPETITIVENESS OF HANOI BEER ALCOHOL BEVERAGE JOINT STOCK CORPORATION 3.1 General view of HABECO 3.2 Analysis results of competitiveness of HABECO 3.2.1 Governance capacity The survey results show that employees have a high opinion about the company's leadership, In order to manage and operate the activities well, the corporation built a system of subsidiaries, associates and affiliates to implement the company's activities effectively Every quarter, every year, the units, subsidiaries and affiliates must send papers, books and reports in full details about the operation situation to the parent company 3.2.2 Actuality of finance capacity Studies show that the financial status of the company is healthy, with good financial autonomy The corporation does not suffer from financial imbalance, does not use borrowed capital, and ensure sufficient finance for its production and business activities The total capital of the company has increased steadily over the years and has no borrowed capital, so the enterprise does not suffer from much pressure It is because the state divestment route has not been completed, so the company still has to focus on solving this financial problem 3.2.3 Actuality of human resource capacity Human resources of enterprises show that those with good qualities and traits such as dynamism, responsibility, etc and those with long-term working experience, underestimate the competitiveness of HABECO Thereby we see 13 that the people who have worked for a long time in their businesses have undergone periods of development of the business and they see that there were golden periods when HABECO products of beer, alcohol and beverages dominated the entirety of market of the northern and central Vietnam However, nowadays there are many products of the same type in the market that are competing and dominating HABECO's market, thus the more experienced and concerned the workers are to the development of the company, the more they underestimate the competitiveness of HABECO 3.2.4 Marketing capacity 3.2.4.1 Market study work and target market selection work HABECO's market office has always performed well in market study activities at the company The company constantly conducts researches, some of which are grand research plans that the company has to rely on professional and big-name market research companies like Nielsen, along with other smaller, separated surveys 3.2.4.2 Product policy HABECO is currently trading in main areas with beer, wine and soft drinks In particular, beer accounts for more than 70% of the company's total output Although the two categories of wine and soft drinks also contributed to the profits of businesses, they were not significant The growth of beer consumption of the Corporation in the recent period is slow, much lower than the 2006-2012 period, due to the impact of the economic recession, the impact on consumption of products, and the competition becoming more intense between imported beer products and domestic beer enterprises 3.2.4.3 Price policy With fast-moving consumer goods like beer, price is not a prerequisite for customers to choose which products to use Therefore, depending on the brand and quality, enterprises offer the most reasonable price suitable with customers’ solvency but this is not the most effective tool to compete with this product 3.2.4.4 Distribution policy Distribution is one of the key forces of the Corporation and must be studied and built for many years After 60 years of establishment and development, HABECO has built a tight and synchronous distribution system 14 to form a network to bring products to customers in the fastest way and ensure the quality of products 3.2.4.5 Mixed promotion policy This is a good sign, because nowadays customers no longer believe in advertising programs or recommendations of businesses but often decide to choose products based on the appreciation of acquaintances or customers who have used the product, whether through chat or through reviews, comments on the website of the enterprise or on online sales sites, social networks This is an aspect that HABECO needs to pay attention to and focus on exploiting for more effective communication activities 3.2.4.6 HABECO brand The brand identity system of the Corporation is still quite inadequate The Corporation has not really invested properly in the process of building and developing brands, the Corporation is taking positive steps to build a truly distinctive brand identity system in order to attract the loyal customers of the Corporation 3.2.5 Beer production technology 3.2.5.1 Materials In order to offer a finished product which is a good, cool beer for customers, beer companies often have a relatively similar beer production technology The key to beer quality, taste, smell and color depends on the ratio of the ingredients 3.2.5.2 Technology and production Hanoi Beer products are manufactured on production lines and technology of the Federal Republic of Germany with fully automatic bottling lines, ensuring quality, food safety and hygiene HABECO's system of brewing equipment is always modernized and automated at all stages: material handling, cooking, water purification, rapid cooling, fermentation, beer filtration, beer extraction, pasteurization, labeling, stacking pallets etc 3.2.6 Current situation of corporate culture Activities of building corporate culture of the Corporation have not been methodically and properly cared for, although the Corporation's culture does not become clear and specific documents, the tangible and intangible symbols such as leadership style, management, relationships between employees have many other forms of expression as well 15 3.3 Quantitative results The author uses quantitative methods to test the scale and measure the status of competitiveness of HABECO Surveying and researching main subjects: (1) The Board of Directors, the employees and workers at the Corporation and its member companies and production factories directly under HABECO; (2) HABECO's customers in the North and Central regions as these are the two main markets of the Corporation The reliability of the scale is assessed by the method of intrinsic consistency through Cronbach's Alpha coefficient Using the Cronbach’s Alpha reliability coefficient method before analyzing the EFA factor to eliminate inappropriate variables because these variables can create fake factors (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2009) After factor analysis, the criteria will be automatically extracted to create new factors to include in the regression analysis The regression model table of factors affecting the competitiveness of the enterprise according to the enterprise Model Coefficientsa Non-standardized Standardized factor factor B Std Error Beta 0.442 0.287 0.345 0.053 0.295 0.099 0.055 0.079 -0.267 0.054 -0.185 0.160 0.067 0.135 Constant Finance Administration Human Resources Marketing Production -0.039 technology Corporate culture 0.491 2 R=0.770; R =0.593; R correction =0.586 F=84.187, Sig = 0,000 t Level of significance 1.544 6.492 1.792 -4.979 2.388 0.124 0.000 0.074 0.000 0.017 0.046 -0.029 -0.855 0.393 0.055 0.456 8.855 0.000 In the study, there are variables with large coefficient β, respectively: Corporate culture (0.456), Finance (0.259), Human resources (-0.185), Marketing (0.135) that are factors strongly affecting the competitiveness of the enterprise 16 3.4 Factors affecting the competitiveness of Beer - Alcohol – Beverage enterprises The dissertation has analyzed in depth the factors affecting the competitiveness of beer - wine - beverage enterprise, which are policies and laws; Population and consumer tastes; Economy; Nature; Cultural regions; Competitors; Customer satisfaction Each factor has different levels of influence on enterprises 3.5 General assessment of competitiveness of HABECO 3.5.1 Success Firstly, the Corporation's management apparatus is formed by leaders who have both ability and vision, good leadership ability, a new generation of leaders will create a new page in the development history of HABECO Secondly, the Corporation is using a well-qualified human resources team through rigorous input recruitment with clear criteria to recruit the right people for the right jobs Thirdly, the Corporation's finance is stable, the ability to turn around capital well, without long-term debt is a solid foundation for the development of the Corporation in the coming time when the Corporation has many plans Fourthly, marketing strategy is one of the weak aspects of HABECO, this is an activity that the Corporation should focus on promoting and developing Fifthly, the corporation’s production technology is relatively modern, meeting the current needs of consumers in terms of quality, as well as bottles, product packaging, product preservation, keeping the flavor when it comes to customers Sixthly, the corporate culture of the corporation was initially formed and had clear manifestations at the corporation The material or non-material logos have been considered by the corporation and there are plans to build a complete corporate culture for the Corporation Since then, combining the activities and relationships in the Corporation so that the Corporation is growing and growing 3.5.2 Limitations and causes 17 Firstly, about management capacity The management apparatus of the Corporation has to be reorganized, so there is still the inconsistency and unity in the Management Board, getting used to the new position takes quite a lot of time The State capital withdrawal has not been implemented completely, resulting in the Corporation's operation plans and strategies, which have not yet fully promoted the company's capabilities, leading to a decline in revenue in 2017 and continue into 2018 Secondly, about human resources Because it is still a state-controlled corporation, human resource management activities are still subject to many complicated documents, papers and procedures, resulting in difficulties in the development activities of the Corporation Thirdly, with reference to Financial activities Finance of Corporation is relatively stable, but because Corporation is managed by the State, expenditures for investment are still limited That leads to difficulties in product development operation as well as Corporations’ profit and revenue increase Fourthly, with reference to Marketing activities With reference to Marketing, market share of HABECO decreases from 20% in 2015 to 15% in 2018 and has decrease trend, it is worrying sign of HABECO About product, HABECO inherently develops about products for target customers, who are common customers with intimate aroma and cheap price However, because of environmental effect, people’s income increase, customers’ demand is changing towards higher grade beer with price that is suitable for quality They push “common” product of HABECO out of “playground” With reference to distribution HABECO’s distribution network is still soft, the system of new distribution network has deployed for short-time, which needs more time to develop, stabilize as well as draw on experience to change limited sides of this system Although Corporation’s distribution network expands from North area to Central area, it focuses in an area, while Sabeco’s distribution network covers all over the world 18 With reference to promotion activities According to report about the cost of corporation’s media, the cost of media increases annually (from 276 billion in 2015 to 303 billion in 2017), which shows that corporation focused on media, but reached not high effectiveness, it is expressed in decrease in revenue growth, from 8.2% in 2015 to only 3.92 % in 2017 Although as experts and researchers, demand for beer consumption in Vietnam increasingly rises, beer production growth rate increase because of rising income fast and young population, HABECO’s revenue decreases, which proves that marketing operation of Corporation is not good The frequency of advertisement appearing on television and media is still less and advertisement is not still interesting, so it has not make strong impression to customers Even if the cost of media still increase, it is not enough to go up the frequency of HABECO’s products appearing on market According to FPT Securities Joint Stock Company, FPTS, North area and provinces of North Central including Thanh Hoa, Nghe An, Ha Tinh account for about 35% of total beer consumption in the country Differ from other areas, Northern people have trend on preferring draft beer and draught beer Thus, HABECO transferred manufacturing structure to increase draft beer production density in order to meet customers’ needs Draft beer does not require over high selling and marketing expense, so HABECO does not focus on investing and promote marketing operation, the level of beer brand recognition in Hanoi is declining on the main market of HABECO With reference to brand development Brand identity system of the corporation is still faint, cannot reach the public Many people cannot remember the slogans of Corporation because it is not impressed and relevant to Hanoi The corporation’s logo is quite diffuse and hard to remember, before each affiliated company owned different logo, since the corporation has department of brand identity, all affiliated companies use a general logo of the corporation In 2019, Corporation changed brand of identity system, but it has not been widely deployed HABECO’s brand communication activities are not strong, the frequency is not high, the level of contact with customers is low 19 Thus, brand’s image of HABECO fades out in mind of loyal customer and does not approach young customers who are main target market of HABECO Fifthly, with reference to manufacture technology Corporation’s machine meets current needs, but they want to diversify products, improve the quality, they should need more devices This issue still remains because of Corporation’s finance Revenue, profit decreased in recent years, so lack of capital to invest in machine, device Sixthly, with reference to corporate culture Although, there are signs of material and non-material in corporation, it is not clear, because corporation does not set corporate culture professionally and completely Corporation does not apprehend the aim and the value of setting corporate culture Moreover, In addition, the issue of state capital withdrawal has not been "finalized," has not been negotiated with the partner who wants to repurchase shares that is the Carsberg company, so that staff is still confused, does not know the effect of capital withdraw to their works and life or not Chapter SOLUTIONS AND RECOMMENDATIONS TO ENHANCE THE COMPETITIVENESS OF HANOI BEER - ALCOHOL - BEVERAGE JOINT STOCK CORPORATION 4.1 Opportunity, challenge to HABECO and develope orientation in coming time 4.1.1 Opportunity 4.1.2 Challenge 4.1.3 Development trend of Vietnam Beer Industry in coming time According ti FPTS, some trends will be changes in consumer need as well as the effect of enterprises to manufature as folloing: high class trend, trend of consuming beer with little alcohol or without alcohol 4.2 Developed orientation of corporation to 2025 and vision 2035 Developed orientation of corporation is to focus on developing market, enhance competitiveness, bring customers satisfy of quality products and perfect service 20 Table 4.1 Some targets of HABECO to 2025 Average annual Quantity Target growth (%/year) (Million liter) Revenue of industrial 7,0 production Beer Types 5,0 891 Alcohol Types 10 23 Filtered Water 45,4 13 Profit before tax 1,7 Source: Department of Marketing 4.3 Some solutions to enhance competitiveness 4.3.1 Enhance ability of administrative Each individual, managers have to study to enhance their level by themselves by ways such as taking part in advanced management training class in Corporation or out of Corporation, courses and workshops oversea will be more effective To change the form of management is to be more suitable as using modern technical software, apps, artificial intelligence in all administration activities, avoiding avoid the overlapping, rigid left over from the old management perspective Actively apply and promote the effectiveness of ERP software 4.3.2 Improving financial capacity Focus on mobilizing and attracting investments in all economic sectors to ensure sufficient capital for the investment in the Corporation's development Conduct the listing of stocks on the international stock market to attract more foreign investments and improve business efficiency as well as HABECO brand 4.3.3 Improving human resources Recruitment activities of the Corporation need to strongly base on the actual demands of the company as well as the market and focus on the weaknesses of the company, which are the human resources having a high level of technical and technology skills and working at the production line 21 4.3.4 Solutions on Marketing Organize regular market research on a large scale; Strengthen research and development (R&D) activities; Maintain and stabilize the Northern market, seek to penetrate deeper into the Central and Southern markets; Enhance the capacity of machinery and equipment, effectively exploit the equipment that has been put into production, research technological and technical solutions to maximize the capacity and improve the quality of beer products; Plan and build a professional distribution system; Diversify promotion activities to bring product information to customers 4.3.5 Solutions on production technology The Corporation needs to review, inspect and re-evaluate all the machinery and equipment in the Corporation's production line Remove the old, outdated machines and replace them with modern machines along with the latest technology 4.3.6 Solutions on perfecting corporate culture Make complete plans and strategies on building the corporate culture of the Corporation; Clarify tangible and intangible symbols to distinguish appropriate elements in corporate culture These symbols should clearly show the specific nuances of the Corporation and express its goals, culture and core values 4.4 Some recommendations to the state management agencies 4.4.1 Recommendations to the Ministry of Industry and Trade The Ministry should recommend to the State to improve the business environment of Vietnam, create a fair competitive environment for enterprises in the industry; Actively negotiate, sign, join and enforce agreements of international economic organizations, 4.4.2 Recommendations to the Vietnam Beer-Alcohol-Beverage Association - Promote the function of "a bridge" between enterprises in the industry and state management agencies Promote the ability of enterprises in the industry to access the Vietnam Beer-Alcohol-Beverage Association in the region and around the world 22 CONCLUSION In the era of economic globalization as we see it, enterprises must participate in a very tough competition to be able to maintain and develop their market share in the market The market for beer, alcohol and soft drinks is no exception Enterprises need to analyze the factors that constitute the competitiveness to understand their strengths and advantages so that they can take advantage and promote to seize opportunities In addition, analyzing competitiveness also helps enterprises identify weaknesses and shortcomings to take measures to overcome and avoid risks in production and business activities Hanoi Beer Alcohol And Beverage Joint Stock Corporation has undergone more than 60 years of establishment and development and has left a deep impression in the minds of customers nationwide and especially the customers in the North market With positive business results for many years, HABECO is still on the way of developing and aiming at new opportunities in the market where more and more competitors appear from the domestic and foreign markets Although measures have been taken, the revenue still declines in recent years In this dissertation, the author has an in-depth analysis of the constituents and impacts on the competitiveness of enterprises producing beer and alcohol in general and in-depth analysis of the constituents of the competitiveness of HABECO Based on an overview of previous studies as well as through the discussion with experts, the dissertation built a model to study the constituents of HABECO's competitiveness through factors such as management capacity, financial capacity, human resources, marketing capacity, production technology and corporate culture The dissertation uses qualitative and quantitative methods to analyze the contribution of factors to the competitiveness of HABECO From that, the advantages, limitations and causes can be drawn up so that recommendations can be made to partly help the Corporation to improve its competitiveness in the future The author has proposed groups of solutions related to the constituents of HABECO's competitiveness: management capacity, financial capacity, human resources, marketing capacity, production technology and corporate culture In 23 particular, the dissertation focuses on the solutions that strongly affect the competitiveness of the Corporation that the research results have given such as expanding distribution channels, regaining lost market share in the North and "strike" the market in the South and the Central In addition, it is necessary to diversify products to keep up with the shift of customers' needs to other market segments such as high-end market Financial factors and corporate culture also need to be more concerned to synchronize the activities of the business to achieve the highest goals of the Corporation In order to realize the solutions, it takes a lot of conditions from the Corporation and it is impossible not to mention the important contribution of state policies, of the Ministry of Industry and Trade and the Vietnam BeerAlcohol-Beverage Association 24 LIST OF THE AUTHOR’S PUBLISHED WORKS "Enhancing the competitiveness of Hanoi Beer Alcohol And Beverage Joint Stock Corporation in the context of international integration", Journal of Economics and Forecasting (special issue of March 2016), pp 56 -58 "Improving the competitiveness of Vietnamese beer enterprises", Finance Journal, (Issue + of February 2019), pp 207-209 “Factors affecting the competitiveness of Hanoi Beer Alcohol And Beverage Joint Stock Corporation (Habeco), Journal of the Asia Pacific Economy, (issue of the end of the month - February 2019), pp 54-56 "Enhancing Habeco's competitiveness", Journal of Economics and Forecasting, Issue 07, March 2019, pp 28-30 ... including the following elements: governance capacity, human resource capacity, financial capacity, marketing capacity, production technology capacity and corporate culture * Regarding space: Analyzing... competitiveness of HABECO: (1) Management capacity; (2) Financial capacity; (3) Human resource capacity; (4) Marketing capacity; (5) Technology and production capacity; (6) Corporate culture Impact factors... indicators: Capability of capital, human resources, scientific and technological level, management and innovation ability, marketing planning ability, marketing mix capability, ability to provide services,