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Table of Contents I INTRODUCTION The precursor of Traphaco Joint Stock Company (JSC) was a governmental medicine production group established in 1972 After a few decades, Traphaco Pharmaceutical & Medical Equipment JSC officially started operating in 2000 as a joint stock company with 45% state capital In 2001, the company changed its name to Traphaco JSC Traphaco's main business activities include: manufacturing and trading pharmaceuticals, chemicals and medical supplies; purchasing, cultivating and processing medicinal herbs; importing and exporting raw materials and supplements to make products (Traphaco, 2019) Picture 1: Logo of Traphaco (Source: Traphaco) The company currently has 28 branches nationwide, subsidiaries and associated companies, serving over 27,000 loyal customers In terms of production, Traphaco owns planting and collecting medicinal herbs that meet GACP-WHO standards, medicinal plant extracting factory and factories meeting GPs - WHO standards The headquarter of the company is located in Hanoi (Traphaco, 2019) During the process of development, Traphaco always encountered with many competitors in the domestic pharmaceutical market Especially, when Traphaco recently started producing new medicines related to the digestive system, the company faced competition from a small but emerging competitor, Tam Binh Pharmaceutical Company In addition, with the trend of globalization and integration of Vietnam’s economy, Traphaco will also have to have a good business strategy to compete with foreign pharmaceutical companies that are gradually entering the Vietnamese market, typically Abbott Laboratories from the United States The Tam Binh Pharmaceutical Company is a very young company It was founded by pharmacist Le Thi Binh in 2010 Tam Binh has established its brand in the Vietnamese pharmaceutical industry with products made entirely from herbs through the construction and development process Tam Binh has a large GMP-WHO standard factory in the suburbs of Hanoi, equipped with modern machinery and technology The company owns several herbal crops to supply raw pharmaceutical materials directly to the factory, therefore the company can make sure the medicinal sources are natural and quality (Tam Binh, 2019) On the contrary, Abbott Laboratories was founded in 1888 and has been wellknown all over the world for producing nutritional and pharmaceutical goods for over 80 years The company mainly focuses on research, development, manufacture and distribution of healthcare and pharmaceutical products and services Abbott established the first office in Vietnam in 1995 Abbott provides all Vietnamese with food products, pharmaceuticals and advanced diagnostic equipment (Abbott, 2019) It can be seen that Abbott is a major competitor of Vietnamese pharmaceutical companies in general and Traphaco in particular Recently, Abbott is tending to buy many shares of large pharmaceutical corporations, such as Domesco JSC or Glomed JSC This can be considered as an opportunity but also a difficulty for Vietnamese pharmaceutical companies like Traphaco II MAJOR FINDINGS Vision, mission, goals, objectives and core values 1.1 Vision Traphaco’s vision is to be the number one pharmaceutical company in Vietnam in terms of revenue growth, profits and market capitalization (Traphaco, 2018) According to Vietnam Report, in 2018, Traphaco ranked second in the ranking of the most prestigious pharmaceutical companies in Vietnam, just behind DHG Pharma Indicators such as financial score, media coding or survey score of Traphaco are almost superior to the companies ranked below On the other side, Tam Binh creates the vision to develop and to be one of the most successful pharmaceutical companies with the main products made from traditional herbs and medicines with good quality and fair prices (Tam Binh Pharmaceutical, 2018) The vision of Abbott is to be the largest healthcare and pharmaceutical company in the world The company wants to be the best employer, the best provider of healthcare and pharmaceutical industry, the best business partner and the best investment Abbott aims to become a leading company with the slogan: "Scientific achievement for the quality of life" to offer comprehensive healthcare services based on scientific achievement (Abbott, 2018) 1.2 Mission The mission of Traphaco is to lead the creation of Green pharmaceutical products to protect and improve human health (Traphaco, 2018) It can be seen that in the process of manufacturing, circulating and consuming pharmaceuticals, it requires processing a large amount of toxic chemicals Those substances will directly cause great harm to the environment and indirectly affect human health Thus, to build a successful and sustainable business, Traphaco will develop and apply scientific research to produce pharmaceutical products with natural ingredients to both prevent and cure diseases but also to protect the environment and human Tam Binh’s mission is committed to providing consumers with high-quality medicines as well as good service at affordable prices to protect patients’ health The company also wants to make a positive contribution to the healthcare and pharmaceutical industry of Vietnam to create a great social value (Tam Binh, 2018) For a long time, Abbott has developed with a saying: "Live the best life, now and in the future" Abbott's mission is to always create solutions to protect customers’ health, to strengthen their body in every moment of their life The company commits to provide customers with many new knowledge on health issues and medications so they can better manage their health condition (Abbott, 2018) 1.3 Goals In the pharmaceutical industry nowadays, the impact of Industrial Revolution 4.0 are very huge Thanks to the development of technology and science, the works in production and distribution stage of pharmaceutical industry are now becoming easier Nevertheless, pharmaceutical companies also have to face increasing numbers of challenges They are external challenges come from rivals, suppliers of medications, administrators of health care and internal challenges like opting for marketing costs, research and development of new products, product management, and comprehensive reliability Picture 2: 4.0 Pharmaceutical Industry (Source: ISPE.org) To follow the general trend of the world pharmaceutical industry, Traphaco has set several goals to catch up with the trend of industrial revolution 4.0 Specifically, the company has planned to manage the construction and application of the latest technologies for a new "smart" western-medicine manufacturing plant and also aspires to gradually digitize the management system (Traphaco, 2018) Tam Binh tries to achieve the aim of prioritizing product quality, along with the goal of developing many new products to meet the health needs of people and sustainable development (Tam Binh, 2018) Abbott's goals in the following years are to accelerate the development of research and discover more ingredients to create more products for medicine and healthcare The company also wants to develop the healthcare treatment and help the hospital to cure all kinds of diseases (Abbott, 2018) 1.4 Objectives After the year 2019, Traphaco aims to achieve the revenue of 2,160 billion VND (growth 15% compared to 2018) and net profit after tax of 205 billion VND (Growth 30% compared to 2018), thereby becoming the number one green pharmaceutical company in Vietnam (Traphaco, 2018) In fact, the total net profit after tax of Traphaco has now only reached over 65 billion VND after the first months of 2019, equals to 38% In the coming year, it will be very difficult for the company to approach the set plan without any development in marketing and business strategy Therefore, the objectives are still achievable if Traphaco follow the right track In order to evaluate the objectives of an organization, the popular method is to use the S.M.A.R.T criteria which was created by George T Doran in 1981 It specifies an ideal objective should be Specific, Measurable, Assignable (later changed to Attainable), Realistic (later changed to Relevant) and Time-bound Criteria Expression Evaluation Specific The objectives are mainly focus on finance Meet this criteria Measureable The objectives provide the detail number of revenue and profit Meet this criteria Attainable After months, Traphaco has completed 38% of the progress Meet this criteria Relevant The objectives were set to fulfill the vision of Traphaco to become the largest pharmaceutical company in Vietnam Meet this criteria The objectives require Traphaco to achieve in the year of 2019 Meet this criteria Time-bound Based on the S.M.A.R.T criteria evaluation, it can be concluded that the objectives of Traphaco are ideal and smart In fact, as a limited liability company, Tam Binh does not provide much information about their objectives to the public However, according to Dr Le Thi Binh (2018), the owner of the company, Tam Binh always aims to increase revenue, profit and market share in the following years but also to contribute more to the society In recent years, Abbott is very successful in selling its products in Vietnam market, the revenue For the following years, the company will set a new objectives to hit $1.5 billion in total revenue at Vietnam market, which is 30% increased compared to the last period (Abbott, 2018) 1.5 Core values The core values of Traphaco can be listed in words (Traphaco, 2018): ● Pioneer: Taking the lead in green value management, creating and applying new technologies and knowledge ● Creation: Creating perfect quality products and services bearing the pride of Traphaco's knowledge ● Responsibility: Committing and fulfilling the responsibilities to society, shareholders, customers, partners and employees on the principle of mutual benefit ● Identity: Representing Traphaco's culture and people in three ways: Aspiration, Passion and Dedication The core values of Tam Binh is contained in sentences (Tam Binh, 2018): ● Having a heart for the production ● Having a heart for the patients ● Having a heart for the employees ● Having a heart for the society Abbott's core values are expressed in things (Abbott, 2018): ● Client-centricity in mindset ● Integrity in professionals ● Intellectual honesty for clients ● Diversity in business ● Collaboration in workplace Legal forms, Size and scope Legal form Under the Law on Enterprises, there are several legal forms of companies that are allowed by the Government of Vietnam, including: Private business, Limited liability company (LTD or LLC), State-owned enterprise, Joint stock company (JSC) and Partnership In fact, most of the large pharmaceutical companies in Vietnam like Traphaco nowadays are joint stock companies JSC is a business entity where shareholders can buy and sell shares of the company's stock Every shareholder owns a proportionate share of the company, as evidenced by shares In the past, many of them were state-owned, but for the following reasons, they were equitized The first reason is due to the state's policies on divesting from companies to collect budget After 1986, under the impact of economic reform policies, pharmaceutical companies that were previously wholly state-owned would have to divest their state capital by listing on the stock exchange to expand the scale of production as well as enhance stability in organizational structure Linked to the vision of Traphaco to become the largest pharmaceutical company in Vietnam, the equitization is necessary for the company to achieve it and Traphaco actually did this in 2000 However, this is only a partial divestment, it can be seen that at the moment State Capital Investment Corporation (SCIC), which is a state agency that is responsible for investing with the government budget, still holds a large number of shares in company at 35.7% Secondly, the pharmaceutical industry is a specific industry that needs to follow the standards and update the research trends of the world in order to find medicines, especially in the integration stage of Vietnam as well as the globalization trend of the world The Government of Vietnam has set an ambition to make Vietnam a major center for manufacturing generic medicine in Southeast Asia by 2020 with many supportive policies The cooperation with foreign companies will bring more capital, technology and high quality human resources to domestic pharmaceutical companies, aiming to produce higher standards products (such as EU-GMP, PIC/S ); the connection with major retailers will help improve the distribution chain and expand the product consumption network (Scherer, 2000) For Traphaco, with the goals to catch up with the Industry 4.0 technology, this is a great opportunity to develop and finish the objectives In the opposite direction, the purpose of foreign companies entering the Vietnamese market is to take advantage of cheap labor, thereby reducing product costs, setting up facilities in Vietnam to produce medicine and then deliver to other markets ( Therefore, the trend of purchasing stocks of domestic pharmaceutical companies by foreign companies is becoming more popular This is also the strategy that Abbott is applying in Vietnamese market The Abbott Laboratories did initial public offering (IPO) in 1929 for the first time in the USA According to the USA Government, Abbott’s legal form is a Corporation which is pretty similar to the JSC in Vietnam Although there are many differences between American and Vietnamese pharmaceutical background, the main reason why Abbott turned into public is to raise the capital to invest in research and development On the other hand, Tam Binh is a limited liability company (LTD) and it only has one owner is pharmacist Le Thi Binh This company doesn't want to share its information to the public in order to ensure the confidentiality of the medicine formulation that Mrs Binh has been researching with many scientists for years 1.6 Size and scope According to Decree 39/2018/ND-CP, the Government of Vietnam regulates that large-scale industrial enterprises are enterprises having more than 200 employees, over 200 billion VND in total revenue and over 100 billion VND in total capital According to the 2018 Annual Report of Traphaco, which is an industrial company specializing in manufacturing and processing pharmaceutical products, with about 1,000 employees, the company has a total capital of 1560 billions VND and has a net revenue of 216 billions VND Thus, it can be concluded that Traphaco is a large-scale industrial company in Vietnam market The market share of Traphaco in Vietnam pharmaceutical market is now accounting for 1.3% (IMS Health Vietnam) Traphaco's main market is totally in the domestic market, with a special focus on the market in the South Traphaco's main customers are pharmaceutical distributors, hospitals and nearly 23,000 pharmacies nationwide (Traphaco, 2018) In addition, Traphaco also has its own distribution channels to directly sell its products to customers who have the interest In order to achieve the objectives of profit and revenue, the large number of distribution channels is necessary Currently, in Vietnam market, Abbott owns more than 3,400 employees with a huge revenue of more than half a billion USD per year (equivalent to more than 12,000 billion VND) and holds many shares in major pharmaceutical companies (Abbott, 2018) Although there is no exact figure of the company's profits, it can also be partly seen that Abbott is really a large-scale company in Vietnam Abbott is an international company so it has many markets, including Vietnam This company is on the way to achieve a dominant market share in Vietnam It can be denied that the Vietnam market contribute a lot for the total global revenue of Abbott Laboratories The company sells the products to customers via numerous retail stores across the countries Similar to Traphaco, Abbott needs many branches and distribution channels to reach its goals Because Tam Binh is Limited Liability Company so they not provide much information about their revenue and profit They only public the information about their workforce with nearly 200 employees (Tam Binh, 2018) Therefore, there is not enough information to identify the size of Tam Binh Also due to the lack of information, the scope of Tam Binh cannot be exactly defined The only thing may be true about the scope of Tam Binh are: it totally focuses on the domestic market and it sells the products via many pharmacies and also on its own website 3 Key stakeholders Stakeholders are people, communities, or organizations that are influenced by the company's outcome They are involved in the company's business from inside or outside and may be benefited from the business result (Freeman, 1999) To analyze and evaluate the stakeholders of pharmaceutical companies, it is common to use the Stakeholders Mapping, which divides the key stakeholders into groups with different levels of interest and power Each of the stakeholders has different interests and expectations, which lead to several conflicts between the stakeholders Therefore, the companies have to take responsibility to reduce those conflicts in reasonable ways High Group 2: Keep Satisfied ● ● Power Group 4: Manage Closely Vietnam Ministry of Health Media Group 1: Monitor ● Major Shareholders ● Management Board ● Government Group 3: Keep Informed (Minimum Effort) ● Patients ● Hospitals & Clinics ● Pharmacies ● Manufacturing ● Suppliers ● Scientists ● Employees Low Low Interest Stakeholder mapping of Traphaco High Initially, in the first group with the lowest level of power and interests, stakeholders such as factories, suppliers, insurers, and retailer stores are almost always focused on making a profit from the products of Traphaco Similarly, patients as well as hospitals and clinics desire to purchase products with good quality and reasonable price Therefore, to meet the interests of these stakeholders, Traphaco needs to enhance the quality of the products and create suitable price In the second group having more powerful stakeholders with low interests that Traphaco need to satisfied, the Vietnam Ministry of Health is responsible for managing the pharmaceuticals quality, pharmaceutical information, pharmaceutical prices and pharmaceutical business The media can bring very serious consequences for Traphaco if any unfavorable information is leaked Thus, Traphaco must have good strategies to maintain relationships with both of them Picture 3: Scientists take part in the R&D (Source: Vietnamnet) In the third group of stakeholders which Traphaco need to keep informed, scientists take part in the R&D (Research and Development) and they are interested in new technology and drugs formula of the company However, they cannot manage the budget to research or run projects Employees work to get paid and want the company to grow so they can increase the salary The key players of Traphaco’s stakeholder analysis in the fourth group include shareholders, management boards, and government The most important factors are the major shareholders In general, the shareholders mostly care about the profit and how much they can earned from the business activities The largest shareholder of Traphaco is State Capital Investment Corporation (SCIC) with 35.7%, which the main reason explains why government is included in the key players of this company In most of pharmaceutical companies in foreign countries, government is only put in the second group of stakeholders because they are only responsible for monitoring and collecting taxes, not really involving in the companies' business However, when running business in Vietnam with a different economic system, Traphaco received a deeper involvement of the state, typically SCIC's presence as a major shareholder Thus, the government not only requires Traphaco to pay taxes and comply with the law but also provides capital as well as benefits directly from the company's business Traphaco's management board is the ones who guide and plan the company's development strategies They directly control the financial budget and make decisions to use it effectively The interests of the company's management will be closely linked to the company's profits Therefore, their goal will be to develop the company rapidly and sustainably Picture 4: Tax payment - a problem for large company (Source: livemint.com) The most common problem of big company like Traphaco is between the government and the management Despite playing a big role in Traphaco as a major shareholder, tax collecting is still the most important task of the government However, managers always want to reduce every costs to maximize the profit, even try to avoid paying too much tax Moreover, as a large-scale company, Traphaco's financial data is very complex, so the accounting system face many difficulties and will lead to a delay in tax declaration and payment In order to solve the conflict between these two key players, Traphaco has to obey the law and is required to fulfill its tax obligations to the state In addition, the company also need to enhance the accounting part to ensure the balance of spending to comply with the regulations of the state but still make a stable profit Another obvious conflict of Traphaco is between the managers and the scientists This conflict is directly linked to the goals of the company Scientists who R&D need to have up-to-date machines and equipment to produce more qualified products that meet higher standards Unfortunately, the cost of upgrading facilities is very expensive and the manager does not want to raise the production costs Therefore, to satisfy the needs of the R&D part, managers will have to calculate wisely and carefully to measure the profitability of changing technology In case the change is found to be unprofitable, managers can completely refuse and find a different solution Power Low High Group 2: Keep Satisfied Group 4: Manage Closely ● Government ● Owner ● Media ● Management Board Power Group 1: Monitor Group 3: Keep Informed (Minimum Effort) ● Patients ● Hospitals & Clinics ● Pharmacies ● Manufacturing ● Suppliers ● Scientists ● Employees Low Low Interest High Tam Binh stakeholder mapping The differences of Tam Binh Pharmaceutical Company compared with Traphaco are the shareholders and the government Because Tam Binh is a Limited liability company, there is no shareholder and only one owner This owner invested most of the capital in the company and she wants the company to make a profit and follow the vision and core values that she created Similarly, in Tam Binh’s stakeholder mapping, without the state appearance as a shareholder, the government doesn’t directly involvement in the business of company like Traphaco and they only care about taxation and legal management Therefore, in order to satisfy the government, Tam Binh only needs to finish the tax payment as well as produce and does business sticking with legal regulations Power Low Low Interest High High Group 2: Keep Satisfied Group 4: Manage Closely ● Government ● Holding company ● Media ● Management Board ● Shareholders Power Group 1: Monitor Group 3: Keep Informed (Minimum Effort) ● Patients ● Hospitals & Clinics ● Pharmacies ● Manufacturing ● Suppliers ● Scientists ● Employees Low Low Interest High Stakeholder mapping of Abbott About Abbott, there are also differences to Traphaco Firstly, because this company is an international company in Vietnam market, the interest of government in the company is only about tax and regulation, which is not directed to the business work Secondly, the headquarter of Abbott is in the USA so there is another stakeholder called holding company, which manage the activities of Abbott in Vietnam and other countries This stakeholder more or less have the interest like the management board but slightly have higher power 4 Organization structure of Traphaco 4.1 The organization chart, advantages & disadvantages Hospital Traphaco Organization Chart The term organizational structure refers to the hierarchical assignment of duties, obligations and authority within the organization between individuals and groups (Greenberg, 2011) Organization structure is made to achieve the goal of the organization These goals are broken down into many jobs The jobs are divided into departments Departments are linked to form the framework of the organization The structure of the organization gives it the shape to fulfill its function in the business (Nelson & Quick, 2011) According to Traphaco’s organization structure is a mix of hierarchical and divisional structure Its structure is also organized by two factors: functions and geography Traphaco's management structure, including General Assembly of Shareholders, Board of Supervisors, Board of Director and Chief Executive Officer (CEO), is completely hierarchical system Standing at the highest position is the General Assembly of Shareholders, who will directly elect the Board of Directors The Board of Directors will operate for a 5-year term, responsible for deciding the company's strategy, development plan and annual business plan The Board of Directors also appoint and supervise the CEO and the Deputy Director General (DDG) in the company's business However, the board cannot and should not interfere with the dayto-day operations of the CEO and the DDG Board of Directors along with the CEO are supervised by the Board of Supervisors, who is appointed and directly managed by the Shareholders This supervisory board is responsible for monitoring and ensuring that system administrators perform their work transparently and always follow with the business strategy and core values of the company This management structure is pretty common in Vietnam companies There is an advantage is that the company's key positions are selected and supervised closely The General Assembly of Shareholders can fully cover, appoint and adjust the management positions when it is necessary with the help of the Board of Supervisory Moreover, the position of the CEO will not be affected in the work too much from the Board of Directors so he can have more freedom in running the company The fact is that this management structure is very simple and clear in most of joint stock companies in Vietnam so there are almost no disadvantages However, this structure requires the Board of Directors to maintain and manage their high power to avoid putting too much executive authority in the hands of the CEO If the CEO has too much power, the company may separate itself from the original strategy and core values set by the Directors Below the management board, Traphaco's system of departments and divisions is very well-described This structure is a combination of hierarchical and divisional structure, mostly divided by functions but also has some parts which are divided by geography There are DDGs and other main directors who are responsible for different divisions of the company In the sale division and branches, the geographical structure is used to set up branches system across Vietnam According to Malone and Smith (1988), the functional structure is the most popular form of organization all around the world The hierarchy of this function in Traphaco is very obviously The CEO is at the top and DDGs along with directors of divisions are below Therefore, this structure benefits the company a lot because every staff knows their responsibilities and limits so the chain of command is very clear In addition, each role in the organization is highly specialized For instance, the marketing director, the product director or chief accountant director are highly qualified professionals with in-depth knowledge of the work they Specialist jobs at various levels of work helps the company to develop according to the needs of the situation In fact, the directors of Traphaco will provide suitable strategy for development and production In this structure, the jobs will be transferred from one division to another in several different steps the main jobs can be completed quickly Every single tasks will be solved quickly because each division only has to a specific task Therefore, the company can be benefited by the huge increase in productivity (Bravoco & Yadav, 1985) Although this structure provides many advantages, there are still some weaknesses The company is inflexible due to the high specialization of each position, with little opportunity to promote workers into a higher role Since the management positions are filled with fixed staffs, employees can feel less motivated to succeed because there is no higher position they may interested in (Malone & Smith, 1988) For example, the staffs in production workshop of Traphaco always have to the same task everyday and may not have any promotion if the position of director is fixed The second drawback is that if the company create a large project with a wide range of products and services, each division may become overworked and overwhelmed without any transition of tasks to other departments (Stormer, 2008) In Traphaco, when the management board want to create new strategy to increase the sale and production, the workload of division like marketing or production will be very heavy About the geographic structure in sale division and branches, this structure will allow the sale team to respond flexibly to the changing of markets (Dalton, Todor, Spendolini, Fielding & Porter, 1980) Especially in Vietnam, where customers in each region has its own purchasing power and culture, Traphaco has to divide the sale system into separate parts However, the geographic structure requires the company to divide division and department into small specified groups so it will be more difficult to manage and operate With Traphaco, only one DDG is responsible for the whole sale system, which means he may carry a lot of work 4.2 The interrelation of organization’s functions The interrelation of different divisions and departments with different functions in Traphaco’s organization chart can be illustrated by several ways The process of making a new pharmaceutical drug is a great example to show this connection First of all, the Marketing and Planning division will propose a project with fully-detailed strategy and a reasonable timeline to the Directors, DDGs and CEO The management then consider whether this new drug project is practical, feasible and benefits the company If all the criteria are met, the management will hold a meeting with Financial and Accounting (F&A), HR, Risk Management and Marketing division and discuss about the financial budget and expenditure for the new project After that, it will be allotted to R&D division to be built and examined Risk Mgt Planning Div Quality Mgt Quality Mgt Marketing R&D Div Marketing Production workshops Creating a project R&D Fully licensed Mass production Final products Managers Material Supply Managers Material Supply Sale Div Directors Directors Marketing Hospital Sale Branches F&A HR Production process of Traphaco (Traphaco, 2018) In the R&D phase, the active ingredients and formulas of the new drug will be studied and undergone a series of tests to ensure its safety and effectiveness After that, if successfully developed, the new drug will be further tested at the Quality Management to check if the product meets the internal standards before being taken to the Production Workshop to conduct mass production The R&D will then hold another meeting with Marketing and Finance managers to discuss and agree on the quantity and cost of raw materials that will be needed to produce new drugs at the factories This figure will then be transferred to Import - Export Material Supply Management to purchase the required amount of materials In the middle of this process, a sample of the final product will be sent by the company to prestigious research institutes for approval of the Ministry of Health's quality assurance license When this new drug passes all the most stringent inspection processes, Traphaco will be able to apply for a business license for this drug product After being manufactured, large quantities of new drugs will be delivered to the Hospital Sales division, Sale division and branches nationwide to be distributed and sold Finally, post-marketing issues and concerns will be recorded by the Marketing and R&D division for research and reference purposes In order to analyze and evaluate the performance of an organization, the balanced scorecard (BSC) is often used by managers BSC is a graphical tool used to keep track of the tasks carried out by workers and control the implications of these acts In strategic planning, BSC are often used to ensure that the actions of the organization are consistent with overall strategy and vision The BSC demonstrates four perspectives to describe the indicators to be used to track the strategy's implementation The four perspectives including financial, customer, internal business process and learning and growth (Kaplan & Norton, 1992) For this reason, it is necessary to use the BSC to assess Traphaco’s efficiency and evaluate the interrelationship of the company’s functions Vision Be the number one pharmaceutical company in Vietnam in terms of revenue growth, profits and market capitalization Mission Lead the creation of Green pharmaceutical products to protect and improve human health Goals Objectives By year 2020, achieve revenue of 4,000 billion VND and profit of 500 billion VND Indicators Initiatives Result Implement the Net revenue; Sustainable Development Financial Strategy; statement Complete 37% of revenue & 36% of profit progress after months (+0.3% over the same period in 2018) Maintain and expand the Marketing; market share in Sales; Vietnam pharmaceutical market % Market Share Index; % Customer, patients & health facilities satisfaction index Appoint Marketing Director; Develop the distribution system; Hold 528 PR meetings Account for 1.2% of Vietnam's total pharma market (Increased); Partner with more than 23,000 pharmacies Internal Process Apply the technology of industrial revolution 4.0; Develop many new Green pharmaceutical products Create the latest pharmaceutical manufacturing infrastructure in Vietnam and being worldclass Number of factories meet the strict international standards of pharmaceuti cal like USFDA 21, GMP, GSP, GDP, Start building modern smart pharma factory; Digitize business management and distribution management systems medicinal plant extracting factory & factories meeting GPs WHO standards Learning & Growth Improve the quality of human resources; Building longterm values for workers By the year 2020, will become one of the leading working environments in Vietnam Number of employees with university or higher degree; Resignation rate Organize training and coaching courses inside and outside the company 40,52% employees have bachelor degree & higher; Resignation rate : 3.96% Financial Increase the revenue, increase the profitability & reduce the production cost Divisions Increase the sale of domestic market, especially the Customer southern Vietnam; Improve end user experience Marketing; Finance & Accounting; Risk Mgt; Mgt Board R&D; Quality Mgt; Production workshops; Marketing HR; Admin division; Planning; R&D Net profit; Balanced Scorecard of Traphaco (Data is from: Traphaco Annual Report 2018) Vision Be the number one pharmaceutical company in Vietnam in terms of revenue growth, profits and market capitalization Mission Lead the creation of Green pharmaceutical products to protect and improve human health Business goals and Strategy Map Financial Customer Increase the revenue Increase the profitability Reduce the production cost Increase the sale Improve end user experience Internal Processes Apply 4.0 technology Develop Green Product Learning & Growth Improve human resource Build worker value Business goals and strategy map of Traphaco Balance Scorecard By the Balanced Scorecard, it can be seen that the objectives of Traphaco are gradually being completed Most of the perspectives results have almost been achieved or completely achieved Therefore, it can be conclude that there is an effectiveness Traphaco’s operation With the investments in human resource and technology, there will be a little cut in production cost for a long-term and this really lead to a slight increasing in revenue and profit of Traphaco It means there is an efficiency in operation of Traphaco However, those investments also show that Traphaco have been using the profit it earned to enhance the productivity and quality of the products Thus, there is no economy in the company’s performance III CONCLUSION Report on types, sizes and other business information of Traphaco and of its competitors in the pharmaceutical market which are Abbott and Tam Binh has shown some clear detail about the overview, vision, mission, goals, objectives, core values, legal form, size and scope of them Moreover, the report has also illustrated the stakeholders mapping and organization chart to explain the different responsibilities and interrelation of the company’s different parts According to the report, Traphaco is a Joint Stock Company with large size, Abbott is a Joint Stock Company (Corporation) that was IPO in USA and Tam Binh is a limited liability company Their scope may be a little bit different but all of them are focused on the created goals and objectives Those companies all have stakeholder mapping that looks nearly similar but there are some differences about the government and shareholders The report also provides many information about the structure of Traphaco Traphaco’s organization structure is a mix of hierarchical and divisional structure Its structure is also organized by two factors: functions and geography The report points out some advantages and disadvantages of this structure and the interrelation of different business functions Finally, the report creates a Balanced Score Card of Traphaco and shows the company’s performance It can be concluded that there are an effectiveness and an efficiency in the operation but there is no economy REFERENCES Traphaco JSC (2018) Traphaco Annual Report 2018 Traphaco JSC (2018) Traphaco Sustainable Report 2018 Traphaco JSC (2018) Charter of Traphaco IMS Health Vietnam (2017) Pharmaceutical Industry in Vietnam: Sluggish Sector in a Growing Market Abbott Laboratories (2019) About Us| Abbott U.S [online] Abbott.com Available at: https://www.abbott.com/about-abbott.html [Accessed 13 Oct 2019] Tam Binh Pharmaceutical Company, (2019) About us [online] Available at: https://tambinh.vn/en/about-us/ [Accessed 17 Oct 2019] Scherer, F.M., 2000 The pharmaceutical industry Handbook of health economics, 1, pp.1297-1336 Abbott Vietnam (2019) Abbott Nutrition Vietnam – Offical Website of 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