With all the above analysis results about different kinds of activities and business environment of Kinh Do Joint Stock Company and their business strategic planning, we suggest some feasible measures to contribute to implement strategies chosen.
ENVIRONMENTAL BUSINESS ANALYSIS Of KINH DO CORPORATION GROUP – CLASS: HRM 60 - AEP ASSIGNMENT – GROUP Page of 48 ASSIGNMENT – GROUP Human Resource Management AEP 60 Group Group Members: Nguyễn Hiền Chang Nguyễn Thị Thu Hà Nguyễn Thúy Hiền Nguyễn Thị Thu Hiền Hoàng Thị Ngọc Huyền Nguyễn Thị Lan Đặng Ngọc Mai Phạm Minh Tâm Page of 48 ASSIGNMENT – GROUP CONTENTS A: INTRODUCTION .3 B: EXTERNAL ENVIRONMENT .5 1: Micro – Environment 2: Macro – Environment 12 C: INTERNAL ENVIRONMENT 16 1: Primary Activities 16 2: Support Activities 19 D: MATRIX ANALYSIS 23 1: SWOT 23 2: External Factors Evaluation ( EFE ) Matrix 24 3: Internal Factors Evaluation ( IFE ) Matrix 25 E: BUILDING A BUSINESS STRATEGY 26 1: The basis for builing a business strategy 26 2: Forecast of market demand .26 3: Goals 29 4: Strategic planning 30 5: Solutions 34 Some outstanding petitions 40 F: CONCLUSION 41 Page of 48 ASSIGNMENT – GROUP A: Introduction Kinh Do was established in 1993 by a small group of entrepreneurs in Ho Chi Minh City, Vietnam; beginning as a snack company Kinh Do successes on snack products opened a new opportunity with the strategy of diversifying product portfolio and affirmed the quality of a Vietnam brand From a small production facility with sales of only 10 billion in 1993, Kinh Do has rose to a scale of a Group with subsidiaries and factories with 8,000 employees Sales of the company in 2013 were 500 times of sales in the first year Total charter capital of Kinh Do Corporation is 3,483.1 billion dong Total revenue reaches 3,471.5 billion dong, in which the revenue from foodstuff accounts for 99.2%, total profit reaches 756.1 billion dong Over the last two decades, the company has developed and commercialized numerous snack products, resulting in market leading positions in categories, including biscuits, buns, cakes, moon cakes, ice cream, snacks and chocolates Kinh Do is one of the most known brands in Vietnam They have since expanded our product brands to include well-known brands such as AFC, Cosy, Moon Cake, Solite, Scotti, Merino, Celano… Products under the Kinh Do trademark are selling in all provinces through diversified distribution system nationwide including 524 distributors, 31 chain stores called Kinh Do Bakery and 200,000 retail outlets as well as franchised distribution systems with a growth rate of 30%/year The products of Kinh Do have been sold to 35 countries; particularly Kinh Do has conquered the most difficult customers such as Japan, USA, France, Germany and Singapore, e.t.c… Vision “Make life better every day” (Kinh Do) “Flavor your life” (Kinh Do Food) Kinh Do is constantly striving to always be a pioneer in the food industry Kinh Do brings flavor to every home's life with safe, nutritious, convenient and unique foods for a better life every day Kinh Do’s desire is to bring enthusiasm and creativity to embellish the happy life of every family Page of 48 ASSIGNMENT – GROUP Mission o Kinh Do's mission to consumers is to create convenient and appropriate products including popular, essential, complementary and beverage products Kinh Do provides safe, delicious, nutritious, and convenient products for everyone to stay ahead of the food market For shareholders, Kinh Do's mission not only stops to bring maximum profits in the long term, but also implements risk management, thereby giving shareholders peace of mind about investments With partners, Kinh Do's mission is to create sustainable values for all members of the supply chain by ensuring a reasonable profit, through products and services Kinh Do not only satisfies consumers but also satisfies customers' wishes o Always nurturing and creating all conditions to meet the needs and expectations at work to promote the creativity, dedication and enthusiasm of employees Therefore, Kinh Do always has a dynamic, creative, loyal, highly adaptable and reliable staff force In order to develop and help Kinh Do community, we are always proactive in creating and at the same time looking forward to participating in and contributing to community and social-oriented programs Page of 48 ASSIGNMENT – GROUP B: External Environment 1: Micro – Environment According to Michael E Porter, there are five basic competitive forces that influence the state of competition in an industry, as follow: Threat of new entrants: Rivals have not broken into the Vietnam market but they will and run a business with the same products of Kinh Do Since Vietnam joined the World Trade Organization (WTO) and ASEAN Free Trade Area (AFTA), import tax for confectionery was reduced remarkably, the domestic firms have been under the competitive pressure from not only foreign and local firms but also imports Many years of experience make them become strong Page of 48 ASSIGNMENT – GROUP competitors to Kinh Do, such as Kellogg’s, Cookies – manufacturers from Danish, Malaysia, … Rivals are operating in Vietnam market and not dealing in the same products of Kinh Do but It will be in the future Due to their business strategies and their effort to gain market share, they could affect to Kinh Do’s profitability Taking advantages of advanced technology and re-creating ideas from previous experience of reality can make them promote faster than traditional brands To conclude, many organizations and enterprises with potential capital and technology could invest in Vietnam market, especially in the confectionery That is a big challenge for existing firms requiring them to continually improve technology, improve products and customer services to retain loyal customers Bargaining power of buyers: The ability of customers to put the firm under pressure, which can affect directly to the whole commercial activity of the firm Here, we have to deal with questions how easy it is for buyers to drive your prices down How many buyers are there, and how big are their orders? How much would it cost them to switch from our products and services to those of a rival? Are your buyers strong enough to dictate terms to us? When you deal with only a few savvy customers, they have more power, but your power increases if you have many customers To Kinh Do, customers can be divided into categories: last consumers and distributors (retailers and wholesalers) For distributors – main customer group – consume almost of products + Kinh Do owns a large distribution system, just fewer than Masan and Vinamilk and It’s the largest in the confectionery industry, with 300 distributors and 200.000 retail outlets, including distribution channels such as supermarkets like Coop Mart, Big C, Metro,… and chain stores called Kinh Do Bakery Page of 48 ASSIGNMENT – GROUP + An intensive distribution network is one of the most vital factors in this field Only by the large market coverage, can Kinh Do’s products be easily approached + Due to a good discount policy with a high level of commission, the pressure of distributors to Kinh Do is not remarkable For last consumers (end-users) Due to the fast pace of life promotion, people have more and more choices in expenditure on shopping The non-stop increasing trend of their demand is restricted by their limited income, so consumers always want to buy items with the lowest expenses possible Products made by Kinh Do are mainly candy, jam, biscuit, cake, ice cream,… which costs inexpensive As a result, It is probable that Kinh Do’s clients consume similar products of other brands instead of Kinh Do because of the low switching costs That requires Kinh Do to constantly promote products and services to make consumers pleasant Bargaining power of suppliers: Material suppliers: With the position of a leading foodstuff Corporation in Vietnam, all materials of production are selected from the most prestigious domestic suppliers and imported from France, Australia, New Zealand, Uruguay, Thailand and used for whole Kinh Do system including Kinh Do Confectionery, North Kinh Do, Kinh Do Sai Gon, Vinabico and cream products, yogurt of Kido Company in order to exploit the good-quality and certified sources of materials Kinh Do always highly appreciates suppliers, who have responsibility, creatively renovation, and continuously improve the material quality and maintain competitive price in the market Such effort will create and maintain the win-win and long-term cooperation Materials account for 65-70% of the product cost, so the fluctuation of price will affect the profit of company In recent times, material prices fluctuated sharply, especially, wheat flour price increased by 100% in months, causing some Page of 48 ASSIGNMENT – GROUP businesses meet serious difficult However, with a large position in the confectionary market, Kinh Do easily transferred the increased input to customers Financial resources: Nowadays, due to the difficult situation in economic activities lasting since 2012, it has significantly affected the financial situation of banks The annual growth rate of non-performing loans is continuous increasing and there is no sign of decrease The difficulty in economy and real estate has led to many businesses going bankrupt and unable to pay their debts This makes the banks tighten and put more criteria before accepting loans The interest rates of bank also increased, making it harder for the company to access these funding sources Human resources: Currently, university-trained people are redundant, this create favorable conditions for the company to recruit employees who have good quality Hence, the bargaining power of suppliers is quite high The threat of substitute products: In general, the threat of substitute products to Kinh Do is quiet low There are some reasons explain why: Confectioneries stratify a lot of customer needs such as enjoy needs, nutritional needs or use them as gifts… There are very few products which can satisfy the same customer needs to meet the demand of customers That means substitute items can not easily take the place of Kinh Do in its customer segments Page of 48 ASSIGNMENT – GROUP 2025 16 35938.46 2026 17 38155.25 Table E.3 Set of equations in forecasting The forecast equation has the form: Yc = a.X + b a = 2216.79 b = 469.82 Yc = 2216,79X+469,82 Yc 2020 24854.51 2021 27071.3 2022 29288.09 2023 31504.88 2024 33721.67 2025 35938.46 2026 38155.25 Table E.4 Forecast of Kinh Do’s revenue to 2026 3: Goals o Building development goals for Kinh Do Company follow the bases: Analyze the Company's operating environment with strengths, weaknesses, opportunities and threats from the above strategic analysis Forecasts the product quality management The determination of The Administrative Board and The Control Board of the company Page 33 of 48 ASSIGNMENT – GROUP Combine with the solutions in human resource management We offer the following goals: Targets Unit Sorfware Billion sales s dong Profit after tax Billion s dong Dividen d payout ratio % 2020 24854.51 2021 27071.3 2022 2023 2024 2025 29288.0 31504.8 33721.6 35938.4 4970.90 5414.2 40 5857.61 40 6300.97 40 6744.33 40 7187.69 40 40 Table E.5: Some objectives of Kinh Do Company until 2025 Growth rate of revenue and profit after tax is expected at an average of 610% per year Profit after tax is expected to account for 20% of total revenue (According to data from the past, profit after tax accounted for 10-15% of total revenue) Page 34 of 48 ASSIGNMENT – GROUP 4: Strategic planning SWOT matrix abn nnd combined solutions: Strengths: 1.Having a stable supply of raw materials, ensuring food safety and hygiene 2.Diversified distribution network and extensive retail network make it easy for customers to access Opportunities: Threats: 1.People are more concerned about health, ingredients and brands 2.Increasing tourism leads to an increase in demand for processed food 3.Large population, under 30 years old accounts for 51% this is the age of highest demand for confectionery 4.Favorable geography facilitates export to foreign countries 5.Confectionery industry growth rate is high The tariff barriers are gradually removed to facilitate export 7.Competitive businesses with small scale 8.The stability of government and social 9.Science and technology develops, facilitating the application of advanced science into production 1.The level of national science and technology capacity is still low, making it difficult for economic integration 2.The erratic climate affects the consumption of products Confectionery ingredients cause heat when used (sugar, flour, vegetable oil, ) so summer consumption is poor 3.Many competitors in the market (Huu Nghi, Hai Ha, Bibica, ) 4.Consumers start replacing confectionery with products that are healthy, fast food,… 5.Difficulties in export due to many trade barriers Development of auxiliary industries SO ST => S3S4O2O3O6: Concentration strategy – Market development => S3S4O9: Concentration strategy – Product development => S2O4O5: Backward Page 35 of 48 => S2S3S4T3: Concentration strategy – Market development => S2S5T3: Backward vertical integration strategy ASSIGNMENT – GROUP 3.Owning a modern confectionary production line 4.Diverse products, good quality, competitive prices 5.Achieve high efficiency in marketing (high brand awareness) 6.Good customer service 7.Qualified labor force 8.Research activities thrive vertical integration strategy => S3O7: Horizontal integration strategy Weaknesses: 1.No uniform branding for the products 2.The export is limited 3.Remuneration for staff is still low 4.Complicated organizational structure 5.Much inventory 6.High selling costs WO =>W1-6O4: Joint ventures strategy WT =>W1W3W4T3: Joint ventures strategy Strategic analysis: 1: Forward vertical integration strategy This is the dominant and control strategy for distributors Nowadays, for the domestic distributors, Kinh Do can completely dominate the market because Kinh Do is known to offer high-quality goods and have a strong financial ability Although distributors have a good quality and bring the competitive advantage for Kinh Do, their capacity and acquaintance is limited In contrast, for the international distributors, Kinh Do has not caught the market due to the fact that Kinh Do has not been widely known in the foreign market Page 36 of 48 ASSIGNMENT – GROUP Therefore, Kinh Do continued to maintain and expand distribution network in our nation with the aim to break into domestic market share On the other hand, this strategy also promotes products through billboards in retail stores For international market, It is advisable for Kinh Do to the brand extension, raise product value, expand relationships, find more new distributors,… to gradually and stably growth the reputation of Kinh Do in the foreign market 2: Backward vertical integration strategy This is the dominant and control strategy for suppliers It is necessary to build and sustain close relationships with suppliers It will help the company to have a stable supply and competitive prices by signing long-term contracts, supporting financial state, … In reality, the pace of promotion in Confectionery is considered to be fast Meanwhile, many companies in this field also have the high growth rate The combination of diversified strategies with different directions may reduce the diversification of other competitors Besides, Kinh Do dominated a large market share, so that customer’s demand constantly and stably increase and this non-stop trend still have the increased sign Applying proper backward integration strategy will assure the inputs available However, in order to implement this kind of strategy, there are some requirements for Kinh Do in resources such as financial ability, stable revenue, the stable growth rate, … 3: Horizontal integration strategy Kinh Do may repurchase or joint venture with other companies in this industry This strategy helps Kinh Do to reduce initial costs, concentrate on improvement and exploitation according to Kinh Do’s strategy On the other hand, the joint venture will create greater production capacity, the ability to respond more types of product, regulate resources, access markets and research market more effectively Specially, joint venture with foreign businesses helps Kinh Do to learn the management level, improve the product quality, share the technology and market of partners, … 4: Concentration strategy - Product development Page 37 of 48 ASSIGNMENT – GROUP Product development is the strategy to increase revenue by improving or modifying the existing products or services to increase market consumption The advantage of this strategy is concentrating the resources of the company to promote their fortes, therefore, lay out their competitive position in the market In reality, competitors release many kinds of confectionery with good-quality and competitive prices Some popular brands can be mentioned here such as Hai Ha, Hai Chau, Biscafun, Trang An, Orion… At the same time, Kinh Do have the potential to the research and promote in the future There are realistic evidence for necessity to apply this strategy Kinh Do should intensify for R&D activities in terms of budgets, humans, machines to create higher quality products in different aspects such as models, packing, … 5: Concentration strategy – Market penetration Market penetration is a business strategy which aims to capture the market almost by the strong effort in Marketing Implement this strategy, Kinh Do aims to strengthen for advertising, sales activities, … to increase market share currently Kinh Do have a good-quality workforce and they did well in fundamental Marketing activities So, Kinh Do should find new ideas, new knowledge, new directions by using external resources, for instance, inviting professional marketing companies or marketing experts to consult and support marketing activity With the stable financial statement, Kinh Do completely has enough ability to pay for this service 6: Concentration strategy – Market development Market development is a business strategy which is used to gain a new market share to increase the amount of consumption For domestic market, Kinh Do needs to improve the distribution network, attempt to bring product to remote areas where people are still using poor quality products, fake products from small production facilities Besides, they build programs to conduct consumers choosing good-quality products, though social media or combined directly with local medicine centers… To Kinh Do, this strategy is suitable because distribution channels are willing to be effective Page 38 of 48 ASSIGNMENT – GROUP For international market, Kinh Do enhances trade promotion activities, find partners abroad, join exhibition, the market research, … to find a basis to promote a new direction 7: Related diversification strategy That means towards to the new market share and products which are suitable for business condition of the company Sources of corn kernels, cashew nuts, …in Vietnam are plentiful, market demand is high Moreover, these items have the same distribution location as confectionery, so Kinh Do can take advantage of the confectionery machines to produce more Nowadays, most of these products are manufactured by small facilities, so the quality of goods is not really good Kinh Do should focus on researching technology development, improving production process to dominate the market, diversify products and gain revenue Choose the strategy From the feasible strategies that have been built above, we analyzed to give the main strategies for the development of Kinh Do until 2025 The most appropriate strategies are backward vertical integration strategy, forward vertical integration strategy and horizontal integration strategy Because, at this period, Kinh Do has sufficient financial capacity, managemental experience, and brand reputation to dominate the power of distributors in a way that Kinh Do has the most benefits On the other hand, with the trend of economic integration, Kinh Do will develop, go beyond the domestic market, gradually exploit regional and international market Horizontal integration strategy is suitable for Kinh Do to continue to succeed in the new stage Page 39 of 48 ASSIGNMENT – GROUP 5: Solutions With all the above analysis results about different kinds of activities and business environment of Kinh Do Joint Stock Company and their business strategic planning, we suggest some feasible measures to contribute to implement strategies chosen 5.1 Marketing solution a Product solution Quality and type Improving product quality is one of the decisive factors to the success of the Company's product policy Therefore, the quality control is carried out strictly from the time of purchasing raw materials until the product is warehoused through technical staff With this testing process, Kinh Do's products are always worthy For after sale services The company needs to build a hotline so customers can reflect on product quality at any time This way will help the Company closer to customers, promptly handle product incidents, while improving the reputation of Kinh Do to increase customer loyalty towards the brand Developing new products The company can develop products in the direction of nutritious confectionary products extracted from natural materials, strengthening the beneficial nutrients for the body b Pricing solution Page 40 of 48 ASSIGNMENT – GROUP The rural market is an almost untapped area, while the rural population accounts for nearly 70% of the country's population Therefore, Kinh Do wants to expand its market share, Kinh Do should pay more attention to rural market with medium-priced product lines, targeting low and middle-income customers With the average pricing strategy, to ensure profitability, the company should take measures to reduce production costs while ensuring the quality of products such as: improving the qualifications of workers to reduce rate of loss, finding sources of input materials at competitive prices, reviewing to eliminate stages that not create value Besides, Kinh Do also needs to pay attention to the middle and high-end market because the living-standard of Vietnamese people are increasingly improved Because this market segment will bring a lot of benefits, such as increasing sales, profits, improving brand value for Kinh Do Kinh Do needs to conduct market surveys and research to offer appropriate prices to compete with imported goods while ensuring high profit margins When penetrating into different export markets, Kinh Do needs to have flexible prices suitable to each market For example, the US, Japan, EU and Kinh Do markets may choose a high price strategy, other markets may set average prices, and may vary slightly, depending on the market The price solution is both profitable for the company and helps the company to implement a more effective market penetration strategy c Distribution solution Opening branches in key markets to distribute products in order to reduce unfavorable pressure from distributors, and help the company quickly capture market information Planning to participate in trade fairs at home and abroad to find more distributors and brand promotion Increasing investment in online sales, this is an increasingly popular form of distribution in the world because of time and cost savings Sign long-term contracts with distributors, large and reputable customers, and have support policies such as credit, bonus to limit distributors in finding other suppliers because of the market In the current fierce competition market, the risk of losing distributors from competitors is very high d Communication solution Page 41 of 48 ASSIGNMENT – GROUP In sales promotion, the company needs to take advantage of the following channels: - Television advisement - Internet advertising - Organize events and sponsors - Display at the point of sale - Product trial organization (Sampling) - Promotion programs for consumers Financial solution The financial potential of Kinh Do is quite strong, the financial ratios are always quite high, and are highly appreciated by investors Kinh Do should take advantage of this advantage to mobilize additional financial resources from the outside through new and feasible projects However, Kinh Do must consider mobilizing reasonably, avoiding relying too much on the outside Kinh Do's payment term is evaluated quite well compared to other enterprises in the industry, on the one hand it is "attractive" to suppliers, and it also creates unreasonable costs that Kinh Do must maintain a High amount of liquid assets Therefore, Kinh Do needs to review the payment term for each supplier group to reduce bank loan costs Contracting costs to the parts, firstly the procurement of raw materials, have a policy of rewarding when they use expenses lower than the norm to stimulate departments to find suppliers with prices It is very competitive, which means that the price of products is lower For key distributors, it is necessary to have credit support policies such as: giving reasonable discounts based on their payment terms, otherwise in case of distributors having financial difficulties, they may increase payment term Human resources solution Page 42 of 48 ASSIGNMENT – GROUP a Make a clear goal Kinh Do needs to have not only strategy but also a clear goal for their own work and create the common aim for the employee and trying to carry out Directing for the staff is a very important element to improve not only work ethic but also is a promise to help people feel excited in the job b Understand staff’s ability clearly Kinh Do embrace overall human resources in their company, when Kinh Do know the advantage, disadvantage of staffs to offer a solution to raise advantages and improve disadvantage Through the work effective, Kinh Do will evaluate every person to consider and arrange to a suitable situation c Carry out balance policies Many enterprises face up with the problem of lacking staffs because they don’t have the balance between rewards and punishing policies for all employees So Kinh Do should consider making the suitable rule to avoid the dissent among staffs d Creating an effective environment A comfortable work environment will create a strong connection in the HR system Kinh Do should improve the creative ability and growth of the collective to complete the work in the best way HR system will avoid conflicts If the staffs admire and respect each other Product and operational solution a Plan to products Plan to technology It is clear that Kinh Do’s product line is from Vietnam and Japan but It is still necessary to keep developing technology Firstly, finding potential staffs for Research Department and building suitable policies is an effective way which motivates staff’s creativity Page 43 of 48 ASSIGNMENT – GROUP Also, they should encourage staffs to join expositions or market fair in both domestic and international area to rich the knowledge about more modern technology of advanced countries, to launch new product lines, meet the increasing demand of consumers Choose the device: The increasing of scale in both quantity and quality makes Kinh Do equipped modern devices, applying foreign achievement to improve the quality product, decreasing the price of the product Choose wattage: Through many steps to choose the highest wattage b Organizing production in Kinh Do Company With the aim to make customers more satisfied and reach the higher revenue with the lowest cost possible, Kinh Do needs to focus on production processes to ensure the quality of goods They should build a clear plan to take ultimate advantages of machine’s capacity, quickly depreciate the value of machinery and equipment, then invest in advanced technology around the world That will be the basis for Kinh Do to gain the quality of products in different aspects such as favor, packing, … Besides, they should focus on cut down the cost by minimizing the wastage rate, redundant processes which not create value This way is very complex so Kinh Do have to the research carefully before applying any decision Investing to human resources is a long-term method to promote the company It is advisable to encourage the contingent of engineers, staffs, … to conduct some analysis, study solutions to improve productivity of labor force, replace both outdated and imported machines and equipment As a result, this help the company to reduces cost using in production processes c Manage the material supply chain Kinh Do should schedule and plan to the demand of materials exactly to assure them available and offer promptly when factories need Besides, they need to find better suppliers, negotiate prices and related terms to ensure that raw materials have the high quality, stable supply, fast delivery… Only by signing long-term principle contracts, can their suppliers be assured to offer goods for Kinh Do This can help Kinh Do to reduce costs and hold on their present position Page 44 of 48 ASSIGNMENT – GROUP Other idea we want to mention is applying contractual for purchasing department to create the initiative for this department, built clear regulations concerning rewards and punishments, then motivate staffs work more effectively d Control and evaluate the quality: In each period, the data not match the expected so we should carry out measure and control the expected It is advisable to apply specific systems which is used to manage the product quality, as follows: ISO 14000 – a global series of environmental management system standards Hazard Analysis and Critical Control Points – HACCP – a systematic preventive approach to food safety from biological, chemical, physical hazards, radiological hazard in production processes… ISO 22000:2018 – a food safety management system with updated information which is more suitable and more specific Kaizen – a method applied to processes, such as purchasing and logistics 5S – a workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, shitsuke (sort, set in order, standardlize, sustain, self-disclipline) Some outstanding petitions 6.1 To government It is advisable for government to organize expositions about both domestic and imported food industry Enterprises in that field may conveniently approach domestic market, especially export market, then have the basis to rich their knowledge and explore new directions for their businesses Government measures should be meticulously prepared to anti-counterfeiting and tax evasion (tax fraud activity, not paying tax…) It may create a fair competitive environment for business, create promoted motivation for lawful enterprises Government should find the way to away with the still uneven livingstandard in urban and rural area In fact, the villager group is 75% of the population Page 45 of 48 ASSIGNMENT – GROUP lived in Vietnam, much more than citizens Therefore, only by stabilizing and improving cottager’s life, can this part of residents create a large market, ensure the long-term promotion for food industry 6.2 To food industry The actual state requires to establish an organization called Confectionery Manufacturers Association to support each other to develop and compete with rivals from countries in the region and around the world Every year, this association organizes conferences and seminars for enterprises in the industry to contribute ideas, strengthen cooperation, and implement the industry's general development strategy Page 46 of 48 ASSIGNMENT – GROUP F: Conclusion Strategic business planning plays a vital role in businesses It is a useful method for enterprises to capitalize on available resources, define the right direction in the promoting process Due to the fast pace of the conditional change, If enterprises are only operated based on the previous advantages but theirs administrators not adapt promptly to the change of business environment, It is hard for them to stand firm and promote for a long run As a matter of fact, few Vietnamese companies conduct strategic business planning for themselves seriously and scientifically and that is the reason explains why competitive ability of domestic goods is not high According to environmental business analysis both external and internal factors to make out strengths, weaknesses, opportunities and threats, we conducted an analysis about the ability to exploit and overcome these potential factors We put forward some ideas about business strategy, as follows: Forward integration strategy Backward integration strategy Horizontal integration strategy Centralized growth strategy on product development Centralized growth strategy on market penetration Centralized growth strategy on market development Related diversification strategy Implementing flexibly and synchronously the proposed solutions will contribute to satisfactory results, enhance the prestige, the portion of Kinh Do Joint Stock Company in the market However, throughout the operational process, It is compulsory to constantly check, evaluate and adjust timely to suit the specific state of the company Strategic business planning is a difficult and complex problem With the limited knowledge, our essay may have some unexpected defects Our group always look forward to receiving teacher’s and other’s opinions to improve on its Thank you! END Page 47 of 48 ... prestigious domestic suppliers and imported from France, Australia, New Zealand, Uruguay, Thailand and used for whole Kinh Do system including Kinh Do Confectionery, North Kinh Do, Kinh Do Sai Gon,... Vision “Make life better every day” (Kinh Do) “Flavor your life” (Kinh Do Food) Kinh Do is constantly striving to always be a pioneer in the food industry Kinh Do brings flavor to every home's life... and procedure: Kinh Do should use the Business Intelligence System to build the Kinh Do Brand effectively Formed Strategic Business Units (SBU) by produce line: SBU helps Kinh Do to have a