Analyzing the internal environment of the Nafoods Group

Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group Analyzing the internal environment of the Nafoods Group

TABLE OF CONTENTS A Introduction B Content Chapter I Theoretical basis Resources 2.Capacity Core competencies Competitive advantage Value chain Chapter II: Introduction of Nafoods Group 10 1.Overview of Nafoods Group 10 Objectives, vision and mission 12 Chapter III: Resources and capabilities of the Nafoods group 13 Resources of Nafoods Group 13 1.1 Tangible resources 13 1.1.1 Financial resources 13 1.1.2 Physical resources 13 1.1.3 Human resources 14 1.1.4 Organizational resources 14 1.2 Intangible resources 15 1.2.1 Resources for skills 15 1.2.2 Resources for innovation 15 1.2.3 Reputation, position 15 The capacity of the Nafoods Group 16 Nafoods' core competencies in the market 17 3.1 Valued 17 3.2 Rarely 18 3.3 Hard to imitate and irreplaceable 20 3.4 Can be exploited 20 Chapter IV Competitive advantages of Nafoods 21 Identify the competitive advantage of Nafoods 21 Factors affecting competitive advantage of Nafoods 22 2.1 Productivity 22 2.2 Quality 23 2.3 Innovation and creativity 23 2.4 Customer feedback 24 Chapter V Value chain of Nafoods Group 24 1.Logistics input 24 Production 25 Logistics output 27 Marketing and sales 27 Services 29 Infrastructure 29 Technology development 30 Human Resource Management 31 Procurement Management 33 C Conclusion 34 A Introduction In the period of economic integration and development, competition is an important factor to decide the success or failure of an enterprise, it is also the driving force for that business to grow Therefore, improving their competitiveness is something that businesses must always strive to achieve In addition to broadening their horizons to detect each threat and seek opportunities, strategic managers must evaluate the strengths and weaknesses within their organizations As with external opportunities and threats, an awareness of internal strengths and weaknesses has practical implications for knowing which corporate goals and strategies are viable Usually, the process of analyzing the internal environment begins with identifying and evaluating the resources and capabilities of the business This is the basis for strategic managers to identify the core competencies of the business These core competencies are the foundation of the company's development strategy as well as building competitive advantages Vietnam is a country with dominant agriculture and that is an important area for the development of our country Besides, Vietnam is a country located in the tropical monsoon region - favorable conditions for growing and developing tropical plants As of 2011, our country has 832,000 of fruit tree land with a variety of fruits with high nutritional quality, annual output of 7-8 million tons, one of the countries with growing area Large fruit trees in the area Taking advantage of this advantage of Vietnam, Nafoods Group, with more than 20 years of construction and development, has always strived to accompany Vietnam's agriculture Nafoods Group is steadfast in its goal of becoming the leading economic group in Vietnam and Asia in the field of green agricultural value chain production, competing globally with a professional, sustainable, and closed development strategy from seeding, planting, tending, processing, exporting and distributing - retailing to consumers To learn more about the above problem, we researched on the topic: "Analyzing the internal environment of the Nafoods Group" to better understand the resources and capabilities of the business From there, we learned about the core competencies of Nafoods Group Through that core competencies, we will know the competitive advantages of enterprises in order to capture strengths so that enterprises can apply development strategies suitable to their capabilities and current situation Chapter I Theoretical basis Resources 1.1 Concept Resources are the inputs to the production process of a business organization, including factors such as capital, employee skills, brand monopoly, finance and management capacity Moreover, resources also include individual, social and collective factors 1.2 Classify Each business will have its own tangible and intangible resources: • Tangible resources: assets that we can see and quantify, including groups: - Financial resources: Equity; loans; ability to create corporate internal funds - Physical resources: The sophistication of the equipment or the plant location; control over raw materials - Human resources: Training, experience, judgment, intelligence, wisdom, adaptability, industrial devotion and the loyalty of individual managers and employees - Organizational resources: Structure of official reports, plans, inspection and supervision system, organizational system • Intangible resources: invisible and quantifiable resources, divided into groups: - Skilled resources: Patents, trademarks, copyrights or business know-how Resources for innovation: Technical and skilled labor - Reputation: Reputation with customers: brand, the acceptance of product quality, durability and reliability; reputation with suppliers 2.Capacity 2.1 Concept Capacity demonstrates the ability to use linked resources purposefully in the areas of activity of the business in order to achieve the desired goal 2.2 Capacity formation • Capacity builds on the complex interactions of tangible and intangible resources • Capacity based on the development, collection and exchange of information and knowledge through human resources in the enterprise Core competencies 3.1 Concepts and meanings Concept: Core competencies or core competencies are the foundation for all competitive strategies It refers to a company's expertise or skills in key areas that directly deliver high performance Meaning: Core competencies reflect the company's competitiveness and distinctive qualities Core competencies are formed over time through learning, systematically and organized accumulation of how different resources and capacities are exploited 3.2 Characteristic standards of core competencies The core competencies of the business must ensure at the same time standards: valuable, rare, difficult to imitate and irreplaceable Valuable capacity Valuable competencies are those that can generate profits for a company by taking advantage of opportunities and neutralizing challenges from the outside environment → Helping a business neutralize threats as well like an opportunity from the outside Competencies are rare Rare features are capabilities that very few businesses have Competencies that too many businesses own are not considered the competitive advantage of any business Instead, valuable but not uncommon resources and capabilities will be the basis for perfect competition At that time, competitive advantage is due to the development and exploitation of capabilities that other businesses not have Competencies are hard to be imitated Competence that is hard to be imitated is a criterion for judging whether or not competencies are core competencies? It is an advantage if our competitors cannot imitate or if we do, it will be very expensive financially, take a lot of time Conversely, a competency will not be considered a core competency of an enterprise if it is easy for competitors to copy Capacity cannot be replaced Irreplaceable capacities are competencies that not have a resource or other competencies of equivalent value Two valuable resources of the business are assessed as equivalent when each resource itself, when used separately, still creates the same strategy Competitive advantage 4.1 Concept Competitive advantage is what makes a business stand out, while other competitors don't As a result, businesses will perform better than other businesses This is the factor that helps the company become successful and long-lasting, different from its competitors 4.2 Types of competitive advantage According to M Porter, there are competitive advantages as follows: Low cost advantage: when businesses provide similar products / services at lower prices than their competitors Differentiation advantages: when businesses provide different products / services compared to competitors The advantage of centralization: Requires businesses to focus on the process of responding to a narrow and exclusive competitive segment to gain a local competitive advantage rather than in the whole market big 4.3 Factors that create competitive advantages Outstanding quality Competitive advantage Satisfy Outstanding performance customers with Low cost Differentiation Outstanding innovation Outstanding performance: Concept: Efficiency is measured by the number of inputs required to produce a unit of product output = Output / Input Impact: Efficiency means higher productivity and lower cost Outstanding performance helps businesses gain a competitive edge through reducing cost structures How to achieve outstanding performance: + Take advantage of economies of scale + Make use of the road to influence learning + Take advantage of the experience curve Flexible production systems and planning + Management of input materials + Focus on R&D strategies, human resource management, information system management and infrastructure management Outstanding quality: Concept: Outstanding product quality is assessed based on two attributes: High reliability: Performs all functions designed and durable Excellent: Perception by the customer is excellent - Affect competitive advantage: + Products of outstanding quality are capable of differentiating and increasing the value of products according to customer reviews + Eliminating product defects helps to avoid waste, increases efficiency and thus reduces cost structure, making profits increase - How to achieve outstanding quality: + Increase the quality of outstanding products based on reliability: apply quality standards such as Sigma, TQM, ISO + Increase the quality of the product based on excellence: Research which product attributes are most important to the customer; Design Sp comes with a service to highlight the most important attribute; Outstanding innovation: Concept: Innovation is the activity of creating a new product or process - Affect: + Create products that can satisfy customers better + Improve the quality of existing products + Cost reduction - How to innovate: a) Forms of renewal: + Product innovation: create products that customers find more valuable, and increase the profit margin for the business Process innovation:: creating value by minimizing production costs b) Innovation process: + Build skills in basic and applied research + Select project and conduct management + Consolidation of functional areas Use product development teams + Develop parallel complementary processes Outstanding customer satisfaction - Concept: Outstanding customer satisfaction means identifying and satisfying customers' needs better than competitors - How to satisfy customers: Innovation and outstanding quality are indispensable to be able to satisfying customers + Customers goods products / services according to special needs of individual or institutional customers + Can enhance customer response through response time response, design method, after-sale service, customer support → Outstanding customer satisfaction creates differentiation for the products / services of the business, thereby creating the customer's loyalty to the brand and the business can achieve the optimal price Value chain 5.1 Concept A value chain is a set of activities with vertical links to create and add value to customers The value chain includes activities related to the value creation strategy for customers, including: - main activities: input supply, production process, product distribution, marketing- sales, service - support activities: general management, human resource management, technology development, purchasing activities 5.2 Value chain model (M Porter) M Porter has identified basic activities in the value chain of enterprises, including: Input logistics, operation, output logistics, marketing-sales, services; and supporting activities including: infrastructure, resource management, technology development and procurement Content of activities in the value chain of the enterprise: - Logistics inputs: Raw materials will be received from the suppliers of the business and preserved and stored until they are put into the production process - Production: Raw materials are put into the production exploitation or assembly process Single activities can be hotel room service, book / video packaging of online retailers, etc - Logistics output: complete production, finished products stored, packed and transported to the distribution system - Marketing and sales: to provide products and services according to the needs of the target customers of the business through brand positioning, forms of advertising, - Service: to provide after-sale services and auxiliary services to customers through installation, inquiry service, training, guidance, Infrastructure: often supports the entire value chain, not just any single activity including general administration, planning, finance, accounting, legislation, - Technology development: including product manufacturing technology, online marketing activities, production efforts, in order to reduce costs, protect and maintain the competitive advantage of enterprises - Human resource management: To ensure that businesses have a sufficiently skilled workforce to carry out effective value-creating activities - Purchasing management: ensuring the payment of raw materials, services and other physical means to ensure the lowest possible price for the payments to get the highest level of quality available can Chapter II: Introduction of Nafoods Group 1.Overview of Nafoods Group On August 26, 1995, Thanh Vinh Limited Liability Company - the forerunner of Nafoods Group Joint Stock Company was established Twenty-five years of establishment and development, from the desire to be a business in fresh water, Thanh Vinh Limited Liability Company has grown to become the leading enterprise in Vietnam in processing and exporting products frozen fruit juices, fruits and vegetables, dried fruit, nuts and fresh fruits; widely known in domestic and foreign markets as Nafoods Group Joint Stock Company (Nafoods) With the main business field of production, export and distribution of products for fruit juices and vegetables Nafoods specializes in fruit juices / NFC, puree, concentrates, IQF and fresh fruit It is one of the pioneering groups to develop green and sustainable agricultural value chains, providing the world with natural, safe agricultural products and providing a good life for everyone Since 1998, faced with fierce competition from foreign brands such as Pepsi, Coca Cola, the company has turned to agricultural products with the establishment of a vegetable and fruit processing factory in Vietnam Nghe An province (2003) Experiencing many difficulties with the development of pineapple products, by 2009, the company developed passion fruit juice The product has brought great success to the company in both domestic and export markets Since then, the company continuously develops product lines and expands the market scale, invests in production line technology On June 29, 2010, the company changed to joint stock company operation model, renamed to Choa Viet Food Joint Stock Company After that, the company was renamed to Nafoods Group JSC With the successes achieved, in 2019, the company successfully called for million USD of investment capital in preferred shares from IFC - a member of the World Bank and nearly 500,000 USD of capital investment in stocks Endurance Capital Vietnam I Limited - in order to improve fruit processing capacity, expand export markets and further develop the new fruit seed business Besides, in 2019, Nafoods marked success in the field of passion fruit seed production when it was the first company in Vietnam to be granted the right to protect 03 varieties of passion fruit under the Nafoods brand: Dai Nong1, Que Phong and Bach Huong From the end of 2019, Nafoods officially tested e-commerce retail in the domestic market After months of product introduction, actively surveying customer responses, we realize that this is a very potential market Nafoods is constantly exploring to diversify products, providing domestic customers with natural products with high quality and intact nutritional value Up to now, Nafoods accounts for more than 80% of concentrated passion fruit juice produced in Vietnam with a raw material area of nearly 50,000 stretching across regions and neighboring countries In the international arena, Nafoods Group's passion fruit products have conquered the most demanding markets such as Europe, America, Japan, Korea, Australia providing about 8% of the concentrated passion fruit output is the world and the largest supplier of passion fruit concentrate in Asia 2.Objective, vision, mission 2.1 Target: Nafoods Group aims to reach more than 2,300 billion in revenue by 2022; gross profit margin more than 25%, EBITDA rate (profit before tax, interest and depreciation) more than 15%, profit after tax rate is more than 10%, ROE (return on equity) more than 25 %; has more than 1,000 quality customers, with 70% of direct sales; control 50% of raw materials throughout Vietnam for key fruits; main warehouses and more than 100 technical transfer points / seed selling agents nationwide In addition to the goal of profitability and efficiency, businesses also focus on investing resources in R&D and application of IoT as the core technology needed in the near future, which is sustainable agricultural development under variable conditions Climate and agricultural land are increasingly narrowed Nafoods aims to apply digitalization comprehensively in the coming time The Group sets sustainable development goals with the development of safe products; ensure the working environment and the interests of employees; environmental Protection; supporting community development and local economic development 2.2 Vision Nafoods is a pioneer group in developing digital, green and sustainable agricultural value chains 2.3 Mission Provide the world with natural, safe agricultural products and bring a good life to everyone, especially farmers Chapter III: The resources and capabilities of the Nafoods corporation Resources of the Nafoods Group 1.1 Tangible resources 1.1.1 Financial resource Nafoods group has expanded cooperation relationship with a number of financial and investment partners, such as IFC - a financial institution under the World Bank Nafoods is the second agricultural company in Vietnam, invested by IFC in phase with million USD and commits to continue longterm investment Nafoods Group has exploited Southeast Asia's competitive advantage in growing specific fruits including passion fruit, banana, dragon fruit, coconut and citrus fruit to develop material areas of Nafoods Group in Vietnam, Laos, and Cambodia Along with the convenient location of warehouses and factories near local seaports, more than 5000 tons of the company's fruit products (~ 85% of export losses) are shipped to all over the country each year 3.2 Rare Management's mindset: The different mindset made Mr Nguyen Manh Hung decide to choose Que Phong, a poor border district of Nghe An province, to build the Nafoods Seed Institute, which surprised many people when he was far away lack of conditions He has a right mindset and vision when he sees that Nghe An has a suitable climate, clean soil, low virus infection for breeds, and keeps technological know-how safe And so far, passion fruit has become the main crop of Que Phong district when 1,200ha is planned for this plant When Nafoods identified key products, the Company found that many fruit and vegetable products suffered from great competition from China, Thailand and the Philippines There are only a few products such as passion fruit, gac, we have a competitive advantage and other products such as pineapple, lychee, banana we not have a competitive advantage compared to regional competitors Furthermore, we are also at a more tax disadvantage During the development of passion fruit trees, the company found that this is the most suitable variety in Vietnam, although passion fruit appeared first in Taiwan, Thailand, Malaysia, China 30 years ago, but in terms of efficiency then in Vietnam is still the most effective In 2019, Nafoods is the first and only enterprise in Vietnam to create varieties of passion fruit certified and protected by the Ministry of Agriculture and Rural Development, including Nafoods 1, Que Phong and Bach Huong - Passion fruit seedlings: The seedling product of Dai Nong passion fruit seedling is produced by Nafoods Seed Institute in a modern greenhouse system with a closed process, strictly controlling the virus and introduced to the market since 2014 The launch of the product This product creates a closed circle of a vertical agricultural value chain at Nafoods Group, not only gives Nafoods Group a significant revenue structure but also acts as a bridge, a vehicle for Nafoods Group to control and well manage raw material areas, ensure stable sources of raw materials for production Therefore, Nafoods Group has determined that passion fruit seedling will be an important product contributing to its differentiation and sustainable development - IQF frozen fruits and vegetables: Including fast frozen processed vegetables, tubers and fruits such as: Banana IQF, Red Dragon fruit IQF, IQF Coconut, IQF Mango, IQF Pineapple, IQF Passion, IQF Carrot, IQF Ginger After the production complex and fruit processing for export in Long An came into operation in April 2018, the processing output and sales of these products have increased strongly, contributing more and more to the revenue structure of Nafoods Group, especially IQF Dragon fruit, IQF Mango and IQF Coconut In addition, the company has expanded cooperation with a number of financial and investment partners, such as IFC - a financial institution under the World Bank Nafoods is the second agricultural company in Vietnam, invested by IFC in phase with million USD and committed to continue longterm investment 3.3 Hard to imitate and irreplaceable The management's leadership ability for the staff has a great influence on Nafoods Group Because in the production and processing of these fruits products can be easily replicated, but people themselves are the only difference that cannot be reproduced, and then from different people create products product difference For that reason, since its inception, Nafoods has attached great importance to building staff to create a core competency through organizing training on skills, knowledge and especially attitudes to ensure that the quantity and quality are suitable for the job and the inheritance The Group has organized the training of 1467 turns of people, with 5205 hours of training This is the hardest resource to imitate and the company has exploited it well to create differentiated products, successfully developing in areas where there are many big competitors to complete its value chain 3.4 Can be exploited With existing human resources, including many domestic and international experts, with a deep understanding of the agricultural activities of Vietnam and the world Nafoods has boldly integrated information technology (IoP - Internet of Things) into the garden management and control system, built a centralized database, developed application for management of agents and customers; Gradually modernize agricultural activities, asymptotic to smart digital agriculture The company also started construction of a factory processing passion fruit, vegetables, fruits for export; received Global GAP certification for Nafoods passion fruit farm in Moc Chau The passion fruit, vegetable and fruit processing factory was built in Bo Bun Industrial Park, Dong Sang Commune, Moc Chau District, Son La Province on an area of hectares, the total investment for phases is 200 billion VND Nafoods has boldly invested in a chain of frozen fruits and vegetables and is now a reputable frozen fruit and vegetable producer and exporter to demanding markets such as Europe, Australia, America, and Korea National, Japanese Nafoods products all have achieved prestigious international certificates such as: International Quality Assurance Control System (SGF IRMA); Certificate of global food safety and quality standards for retail food KOSHER, HALAL, BRC; Food safety management system ISO 22000: 2005 / HACCP Some typical products of Nafoods have a significant impact on the revenue growth of the business such as: - Cashew nuts - value added products These are the newly tested products of Nafoods Group in Q4 2018, including value-added products such as cashew kernel, dried mango exported to Russia, Middle East However, these products have yielded remarkable and promising sales results in a short time period -Fresh fruit At the end of 2017, Nafoods 'fresh fruit passion fruit product was officially exported to Europe, marking an important step in Nafoods' business strategy Following that success, in 2018, fresh fruit products such as dragon fruit, sour lemon, banana, were exported to Asian and Middle East markets, especially China - Market the world's greatest potential for fresh fruit demand Nafoods core competency assessment At Nafood group, people are the core values of the business, so the company always focuses on building a team of human resources with enough talent and virtue to participate and dedicate themselves in the construction career business development is more and more successful The company determines that human resources are one of the most important assets, contributing to creating a competitive advantage for businesses Therefore, resource development is really focused on by Nafoods Group through training of skills, knowledge and especially attitude to ensure quantity, quality, suitability and inheritance The enterprise has organized training courses for 1,467 people, with 5,205 hours of training Including outstanding training programs such as Responsible Cultural Training and not blame internally; training on ISO standards, PRP regulations, hazards affecting product quality in factories Selective program content, suitable for each object, helps employees increasingly raise their hands career, self-improvement to meet the production and business requirements of the Company in the 4.0 era Chapter IV Competitive advantages of Nafoods Identify the competitive advantage of Nafoods Nafoods' competitive advantage is differentiation Enterprises always aim to differentiate, improve the quality of existing products while creating new products with added value to meet the requirements and standards of customers Factors affecting competitive advantage of Nafoods 2.1 Productivity Nafoods has complete control over its value chain including: raw material areas (seedlings, cultivation), harvesting (fresh fruit), processing and production, export and distribution Nafoods buys agricultural products from monopolistic farms, 70% of the raw materials come from smallholder farmers or ethnic minority farmers The company contracts for all agricultural production that the farmers co-produce, provides them with high-quality seedlings, assisting them with agricultural techniques and farming options Therefore, Nafoods can control the input materials with high quality and reasonable price The company is supported by IFC to advise and invest in the implementation of a food safety management system for the company's cold chain in accordance with the world's certification The company currently owns a system of modern factories in many localities such as: Nghe An, Long An, Tay Bac, Tay Nguyen, Binh Thuan Nafoods has applied the BSC & KPI creatively, with an appropriate salary and bonus regime that has attracted a team of capable workforce Nafoods has applied information technology in many different fields: Building a seedling agent management application platform; successfully built an online meeting room system to make it easier for employees to communicate; Research to build a CRM platform for Fresh Fruits and Traditional Business to focus group database items on a single With existing human resources, including many domestic and international experts, with a deep understanding of the agricultural activities of Vietnam and the world Nafoods has boldly integrated information technology (IoT - Internet of Things) into the garden management and control system, built a centralized database, developed the application of agent and customer management; step by step modernize agricultural activities, asymptotic to smart digital agriculture The company has increased productivity When there are many factories in many places, it facilitates the quick processing of agricultural production as well as the building of many agents will facilitate the distribution Application of science and technology, information technology helps the company to be more controlled Reasonable remuneration is also the factor affecting the productivity increase because employees feel more secure, they will devote themselves to the company, creating more value 2.2 Quality With the control of input quality, Nafoods products are more assured of quality Processing plants are located in many provinces across the country to minimize post-harvest damage to fresh produce as the agricultural products will go directly to factories for processing after harvest The company has exported to difficult markets such as the US, Japan, Australia, France; there are also Korean and Chinese This shows that the product quality of Nafoods is increasingly recognized by foreign partners In factories, the Group strictly applies quality management standards, effectively and rationally controls food hygiene and safety In particular, Long An factory complex quickly completed the quality management system shortly after its inauguration, achieved international standards and passed stringent assessments of customers The quality of the production line as well as the product has received the confirmation of organizations around the world, and can be exported to difficult markets to help customers put more trust in the business 2.3 Innovation and creativity In the face of pressing for a way out for businesses, responsibility once again rests on the shoulders of those who are always dedicated to the survival of Nafoods "Change or die" is a constant question in the mind of the collective leaders of the company The first thing is to accept the pain to change the pineapple tree as the key material of the turning point in the past with the passion tree Starting from here, the story of Nafoods associated with a passion fruit tree has extended a new chapter In 2007, Nafoods contributed to the development of the area of passion fruit in the Central Highlands From here, the first batch of Nafoods branded passion fruit concentrate products were officially present in the EU market Continuously in the following years, Nafoods has always been the leading enterprise in purchasing passion fruit output in the Central Highlands, contributing to stabilizing agricultural output for farmers In addition to passion fruit, Gac is also a basic choice of Nafoods to produce Gac Puree for export While the products of domestic and foreign competitors are mainly fresh unprocessed fruits, Nafoods finds its own direction, bringing new products: concentrated passion fruit (In the early years this product made up 60% of the company's revenue) After many experiences, Nafoods is deeply aware that, in order to be determined to pursue and develop sustainably with the agro-processing industry, the only option is to change the governance model, which is tissue globally competitive agricultural value chains With this core value, Nafoods is consistent with the target strategy, vision and mission set out Apply high technology in agricultural production and manufacturing and processing According to this model, in recent years, Nafoods has transformed strongly in both quantity and quality Up to now, after ups and downs, Nafoods has risen to become the No enterprise in Vietnam and Asia in terms of exporting fruit juice products and natural nutritious drinks With the model linking four houses: Farmer, Entrepreneur, State and Scientist, Nafoods was completely active in material areas Up to now, Nafoods has planned over 900 hectares of high quality passion fruit in Que Phong, 250 hectares Gac in two districts Anh Son and Quynh Luu (Nghe An), 300 hectares in the southwestern provinces Not stopping In some monotonous products, Nafoods advocates to diversify products The products with Nafoods brand name, in addition to concentrated passion fruit juice, concentrated pineapple juice, nutritious drinks there is also a product of Puree Gac (pure Gac oil) and is proud to be the exporter Gac oil import is the largest in the world and is the first enterprise in Vietnam to be active in the variety of high yield disease-free passion fruit varieties 2.4 Customer feedback The company always tries to improve the quality of seedlings, selling seeds directly to the people Not only selling seedlings, the company also provides fertilizer for agricultural materials to the purchase of agricultural products when harvested This is something few companies can Chapter V The value chain of the Nafoods Group Currently, Nafoods Group has built and developed a solid and efficient ecosystem in the market This helps the company form a strong value chain 1.Logistics input Regarding agricultural product procurement, Nafoods raw materials are collected from monopolistic farms and contract manufacturers, with about 70% of raw materials coming from smallholder farmers or ethnic minorities The company drafted cooperation contracts with clear commitments Nafoods purchased all the fruits annually that the cooperative farmers produce With the goal of expanding the raw material area, including 30% exclusive material areas, 50% from subsidiaries and branches, the rest from farmers cooperating with the company who has cooperated with local authorities in the raw material areas important materials in Vietnam, expanding in Southeast Asia and investing heavily in R&D for seedlings to develop raw material areas In terms of seedling products, in collaboration with Chung Hsing University of Taiwan, the Institute for Plant Research and Breeding was established with a capacity of million seedlings per year Nafoods owns a high-tech passion fruit seed institute with a greenhouse area of hectares, a capacity of - 6.5 million seedlings that are free of diseases / year, supplying seeds for a large area of passion fruit material across the country and exported to your country Laos Currently, Nafoods Group has cooperated with local authorities to plant 1500 hectares of passion fruit in Nghe An, 3000 hectares in Gia Lai and 5000 hectares in Son La Manufacturing In order to reduce production costs including transporting, minimizing and handling post-harvest damage to fresh produce, the Nafoods Group has developed its processing plants close to the raw material supply Two factories in Nghe An and Long An are convenient from all directions of Vietnam, Laos and Cambodia Therefore, the raw materials are processed shortly after harvest For raw material areas, they are invested with a modern irrigation system, synchronous farming techniques to bring clean fruit and vegetables with quality standards Currently, Nafoods has a system of modern factories in many localities across the country With the modern European technological line of machinery and equipment, clean fruits, vegetables and fruits are quickly transported to the factory, classified and put into the production line The factory chain of Nafoods Group is evenly distributed throughout Vietnam, including: Nghe An province, Long An province, Son La province, Gia Lai province and Binh Thuan province Total capacity of more than 20,000 tons of products per year, meeting the needs of domestic consumption and export, creating good jobs for thousands of people across the province Naprod Nghe An factory, in Quynh Luu district: includes concentrated juice production line and IQF production line, with an area of 5ha, capacity of 5,000 tons of concentrated juice / year and 2,900 tons of production IQF products / year - Que Phong seedling factory, in Que Phong district, in association with experts from Chung Hsing University - Taiwan has a greenhouse area of 6ha, capacity of million seedlings / year - Nasoco Long An factory in Duc Hoa district includes concentrated juice production line and IQF production lines with an area of 6.5 hectares, capacity of 7,000 tons of concentrated juice / year, 5,000 tons of products IQF products / year, consuming 100,000 tons of fruit materials / year - Tay Bac Packaging Factory prepares, packaging and preserves fruit for export in Moc Chau, including a sorting, freezing and preservation system covering an area of hectares (to be expanded to hectares by 2020) , consuming 50,000 tons of fruit material / year - The Central Highlands high-tech complex in Gia Lai covers an area of 13 hectares, including a research center for high-tech plant breeding and a production factory to classify, separate, pack and preserve fruit for export - The Nafoods Binh Thuan Fruit Packaging Complex in Binh Thuan Industrial Park includes a packaging factory and a cold storage system with an area of hectares, consuming 60,000 tons of fruit materials / year At the factories, the Group strictly applies quality management standards, effectively and rationally controls food hygiene and safety Especially, Long An factory complex quickly completed the quality management system shortly after its inauguration, achieved international standards and passed stringent assessments of customers; Rearranging production planning and raw material supply, focusing on centralized control at the corporate level, to ensure fast, efficient communication and full chain control Logistics output Nafoods Group is one of the most innovative vegetable growing, processing and exporting groups in Vietnam, specializing in fruit juice / NFC, puree, concentrate, IQF and fresh fruit The company supplies more than 13,300 tons of fresh and processed fruit annually from farmers in different regions in Vietnam including the Central Highlands, Northwest and North Central Coast regions The company's products are distributed all over the world especially in Europe, the United States, Oceania, the Middle East, Japan and Korea The US and Europe markets, from accounting for nearly two thirds of sales, have dropped to just one third of sales, replaced by new markets such as China, the Middle East and Russia Nafoods distributes its products to domestic and international markets through both direct and indirect channels In which, air transportation is only applied for orders from fastidious markets such as the US, Australia, France, Korea, Japan and Shanghai (China) due to high air transportation costs Marketing and sales With the aim of expanding markets, customers, and diversifying product lines through marketing activities of the company, have obtained many positive results Products after being manufactured, packed, quickly put into the storage system to preserve and load onto the Container to be transported to the seaport for export Currently, Nafoods has exported products to more than 50 countries around the world, especially the most difficult markets such as Europe, America, Australia, Japan, - For traditional products such as frozen fruit juices and vegetables: the company continues to well maintain available markets such as Europe, America, Japan, Korea, Diversify its products of Nafoods in these markets and continued to attack China, the Middle East and Eastern Europe - For seedling products: The Company has continued to improve the quality of existing seedlings, promoting the sale of seeds directly to people Continue to increase and promote the sale of seeds to the Northwest, Central, Central Highlands and Laos markets Combining with agricultural extension programs from supplying seeds, fertilizers, agricultural materials to product consumption helps the company have more revenue from commercial activities - For fresh fruit products: In 2018, Nafoods Group, in addition to promoting fresh fruit and passion products in the European market, also exploited and developed other products with high added value such as fresh dragon fruit , sour lemon, banana, purple sweet potato to the Asian, Middle East markets In which, especially the Chinese market - the most potential market for fresh fruit demand Although only starting to focus on development since October 2018, remarkable results have been obtained - For other new categories: The Company has successfully expanded value-added products such as cashew kernel, dried mango, exported to Russia, Iraq similar to fresh fruit products Only focusing on development since October 2018 but the results are very positive - In the last months of 2018, the company's market expansion has achieved a lot of success with the continuous successful signing of agreements, memorizing cooperation on agricultural exports with partners big products coming from China, Russia, Australia, India,… will open up a huge export market for the company in the coming years Along with that, the group has increased more trade promotion activities by appearing more at international agricultural trade fairs such as Seoul Food International Food Exhibition, World Trade Moscow, participating delegation of Ministry of Agriculture and Rural Development in the Netherlands, International Fair for Food and Beverage (Anuga), Sial Paris Food and Beverage Fair, as well as organizing social programs such as charity and gratitude customers, stimulating consumer demand Constantly researching and searching for ways to innovate, optimize production and business and integrate with the world economy, Nafoods believes that changing arguments is the most important factor Nafoods focuses on digital solutions and information technology application in all stages to optimize resources, improve labor productivity and product quality In particular, the e-commerce channel will be promoted, in addition to the traditional sales channels up to now And so, from the end of 2019, Nafoods officially tested e-commerce retail in the domestic market Service During the procurement process of agricultural products, the company drafted cooperation contracts with clear commitments that the Nafoods Group buys all the fruits annually that cooperative farmers produce This ensures farmers benefit in stable quantity and competitive prices, provides farmers with high quality seedlings that help farmers have better farming options, as well as assists farmers through talent major and agricultural engineering Regarding research and development with the aim to differentiate, improve the quality of existing products while creating new products with added value, meeting the requirements and standards of customers, the company always focus on R&D activities Regarding governance: The Group has thoroughly applied the KPI / BSC system to manage production and business activities and at the same time administer action plans to bring about the highest efficiency Prominent ones can be mentioned as the successful construction of an online collaboration system, which enhances the need for group exchange in the coordination between remote geographic areas Infrastructure For management, IT Application Group - KPI / BSC system manages production and business activities and action plans to bring about the highest efficiency Build a seedling / dealer management application platform Successfully built the online meeting room system, raising the need for team exchange in coordination between remote geographical areas (especially Sales and Marketing); Working with partners, researching to build application platforms, CRM software for Fresh Fruits and traditional business to Concentrate database items in individuals; Deploying upgrading machine infrastructure and dividing data in individuals; Deploying and upgrading server infrastructure, in order to meet infrastructure requirements when deploying and putting into use synchronous enterprise administration software; Implement an overall monitoring system, aimed at overall monitoring, to aimlessly monitor key areas of the corporation At the factories, the Group strictly applies quality management standards to effectively and rationally control food hygiene and safety In particular, Long An factory complex quickly completed the quality management system shortly after its inauguration, achieved international standards and passed rigorous customer assessments; Rearranging the Production Planning and Raw Materials Division, focusing on centralized control at the corporate level, to ensure fast, efficient communication and full chain control Nafoods integrates information technology (IoP - Internet of Things) into the garden management and control system, builds a centralized database, develops agent and customer management applications; To step by step modernize agriculture, asymptotic to digital agriculture Technology development To minimize production costs, including transporting, minimizing and handling post-harvest damage to fresh produce The Nafoods Group has developed its processing plants close to the supply of raw materials Two processing factories in Nghe An and Long An are convenient from all directions of Vietnam, Cambodia and Laos Hence the raw fruit material is processed shortly after being harvested Currently, Nafoods has a system of modern factories in many localities across the country such as Naprod Nghe An Factory, Que Phong Seedling Factory, Nasoco Long An Factory, … Research and development, with the aim to differentiate, improve the quality of existing products while creating new products with added value, meeting the requirements and standards of customers, operation Research and development are always interested and focused by the Company And there are results such as: + Select and create new varieties of passion fruit suitable for processing and eating needs, higher yield and better disease resistance By 2019, Nafoods has been certified and granted protection rights by the Ministry of Agriculture and Rural Development for these passion fruit varieties, including Nafoods 1, Que Phong and Bach Huong + Implementing research and perfecting technology for preserving passion fruit by means of gas modulation (MAP), currently waiting for appraisal by the Ministry of Agriculture and Rural Development + Research on models of cultivation of passion fruit towards organic direction, currently in the testing stage of fertilizers and plant protection products suitable for cultivation of passion fruit, currently found a partner to provide and is implementing testing various types of fertilizers and preparations Human Resource Management Labor is an expensive and vital asset to businesses Each organization needs to be able to manage recruitment, selection, training, fostering, and rewarding Therefore, human resource management at Nafoods Group is very focused Nafoods organizes training on skills, knowledge, especially attitudes to ensure quantity, quality, suitability for work and inheritance Education policy: Taking the BSC balanced scorecard method to run the business, in which Nafoods Group focuses on the root aspect of "Learning and Development", so focusing on promoting training and retraining activities especially internal training For direct employees: on-the-job training courses are offered to improve the skills and knowledge of workers about the industry The company conducts training and retraining to improve the labor efficiency of existing employees Employees are also always encouraged and facilitated to participate in training courses to improve their professional qualifications to meet new requirements in their work For employees of professional departments, the Company always facilitates participation in domestic and foreign courses with professional professions suitable for job requirements, participating in shortterm professional refresher courses on the regimes and policies of the State Working mode: Working time: Indirect department works 5.5 days / week (Saturday afternoon and Sunday off), 8am / day, lunch break 1.5h; Direct department works days / week (Sunday off), hours / day, lunch break 1.5 hours When there is a request for business progress, the company's employees are responsible for working overtime and the Company has regulations to ensure the rights of employees according to the State's regulations and provide adequate remuneration for employees Indirect parts work by working hours, direct parts are arranged to work in shifts Working conditions: The office is spacious and airy The direct workforce is fully equipped with working facilities and tools, and labor hygiene Salary policy: The Company applies a 3P salary policy (the most progressive salary policy today) to motivate employees, specifically: P1 salary: Pay according to the position the employee is holding in the business, qualifications, working seniority Salary P2: Pay based on capacity (assessed every months - 12 months / time) P3 salary: Pay according to the level of job completion or the performance of the work is assessed periodically month / quarter / by the KPI tool to manage the business goals associated with the management of key targets assigned to each department and each individual Bonus policy: In order to encourage staff and employees in the Company to increase the efficiency of contributions, increase productivity and quality to complete the work, every quarter, the company annually organizes voting for individuals and collectives Contribution to the Company as well as other initiatives to increase work efficiency Reward consideration is based on individual or collective achievements in implementing savings, technical innovation initiatives, business organization methods, finding new customers, new markets, and completing successfully achieve the assigned tasks, achieving high efficiency in business, preventing waste Bonus forms are also very diverse, besides cash and in-kind bonuses, the Company also organizes rewarding with overseas travel when possible, rewarding with bonus shares of the Company Besides, the company also handles, century The appropriate laws are individuals whose conduct is detrimental to the company's image and performance Insurance and benefits policy: Social insurance, health insurance and unemployment insurance are deducted and paid by the Company in accordance with current law The company implements the social protection regime for employees according to the Labor Law, Labor regulations The company is always interested in the life and improving conditions for its employees The company always focuses on labor safety issues for direct production workers The insurance regimes for the employees are fully implemented by the Company in accordance with the Labor Law On holidays, Tet The Company always organizes regular tours and vacations for employees in the Company Recruitment policy: Attracting qualified employees to work for the Company, meeting the needs of expanding production and business The employees who hold high positions are carefully selected by the Company to meet the qualifications and experience required by the job Procurement management With the goal of expanding raw materials to include 30% of the monopoly energy area, 50% from subsidiaries and branches and the rest from cooperative farmers, the company has cooperated with local authorities in raw areas important materials in Vietnam, expanding in Southeast Asia and investing heavily in R&D for seedlings to develop raw material areas Nafoods' sources of raw materials are collected from both monopolistic farms and contract manufacturers, with about 70% of raw materials coming from smallholder farmers or ethnic minorities The company drafted cooperation contracts with clear commitments from the Nafoods Group to buy all kinds of fruit every year that farmers co-produce This ensures farmers benefit in stable quantity and competitive price; provide farmers with high quality seedlings; helping farmers to have better farming options; as well as supporting farmers through agricultural finance and technology → The Group should develop value in the direction of: Nafoods Group is a group associated with Vietnam's agriculture, especially fruit trees Along with the increasing demand for fruit in the world market, the demand for domestic fruit consumption is also increasing due to the increasing income and living standards of the population On the market both at home and abroad, there are diversified varieties of crops, fruit trees and fruits all year round to serve diners Therefore, if Nafoods wants to continue to develop and develop more and more, Nafoods should pay attention to technology development, focus on research and further development of new plant varieties, crop varieties that create productivity withstand different types of weather Because with soil conditions and tropical climate mixed temperate, though very convenient for many types of fruit trees in our country to develop, it also brings many difficulties due to the weather The Group needs to cooperate with many fruit tree research and development centers to bring about many successes similar to when the group has succeeded in bringing Vietnamese purple passion fruit products to 50 countries around the world accounting for 9% of the proportion of passion fruit imported in the European market In the current period, technology is at the forefront of all trends, so Nafoods needs special development to create more achievements C Conclusion Thus, we can see that a business that wants to grow, wants to position itself in any market or industry, also needs different capabilities Because only difference can create good products that satisfy customers' needs at the highest level possible Nafoods is no exception, by building and developing the core resources and competencies of the group, applying ways to achieve an outstanding competitive advantage, Nafoods Group has achieved achievements has a certain position and has its own place in both domestic and foreign markets Over the past years, Nafoods Group has made impressive progress, becoming one of the largest enterprises of processing and exporting fruit and vegetable products in Vietnam and is constantly making efforts to conquer the international market Nafoods Group always defines the business principle as harmoniously linking business goals with responsibility to the community, society and the environment Nafoods Group has been improving and building a corporate culture with its own identity each day, creating a solid, civilized foundation, committed to ensuring all benefits for employees in the company Therefore, during the past 24 years, the Company has always pursued the goal of sustainable development with the mindset of bringing the product of a closed, green agricultural value chain with a management model towards specialization under the brand name and Nafoods cultural identity - "whole from nature" comes to customers, along with protecting the environment and creating a positive impact on the community and society ... about the above problem, we researched on the topic: "Analyzing the internal environment of the Nafoods Group" to better understand the resources and capabilities of the business From there,... Usually, the process of analyzing the internal environment begins with identifying and evaluating the resources and capabilities of the business This is the basis for strategic managers to identify the. .. of Nafoods Group 1.Overview of Nafoods Group On August 26, 1995, Thanh Vinh Limited Liability Company - the forerunner of Nafoods Group Joint Stock Company was established Twenty-five years of