Bài tập: QUESTION: Please identify strengths and weaknesses of Vinamilk? Basing on the identified strengths and weaknesses, please establish IFAS framework of Vinamilk? INTERNAL ANALYSIS Divisions in VNM’s value chain have contributed to creating impressive results and successfully completing the annual plan Value chain starting from material purchase and cow farming to production and distribution Transportation and warehousing always work closely with production to ensure the products are not only supplied to the VNese consumers but also reach out to international markets PURCHASING CAPABILITIES AND INPUT MANAGEMENT CAPABILITIES VNM has always been transparent about the origin of raw milk used in production VNM accompanies with farmers to provide guidance and advice on dairy farming techniques VNM managed 83 raw milk collection stations with a total of more than n 100.000 cow heads which gave over 600 tons of milk a day (Develop dairy farm households) Developing and completing the system of high-tech industrial dairy farm Invest and apply technology into specific environmental and climate conditions in Vietnam In 2006, Vinamilk was the pioneer enterprise in developing large-scale, state-ofthe-art dairy farms with a total investment of up to VND 500 billion The entire farm system is built as closed, automated with carefully selected cow breeds to bring the highest milk yield In 2019, VNM has a total of 12 global G.A.P dairy farms with a total head of about 30,000 cows The Company also offers training and coaching to ensure sustainable development and personnel succession PRODUCTION Raw milk quality is fully reserved and delivered in time to factories for production The center is equipped with modern machinery and equipment, Vinamilk has been carrying out production activities following internal processes in order to ensure quality to meet food safety, Organic and Halal standards STRONG FINANCIAL POSITION Vinamilk continued to maintain financial stability in 2019 Consolidated net revenue reached VND 56,318 billion for the whole year of 2019, up 7.1% from the previous year and completed 100% of the year’s plan About weaknesses Due to the increasing demand for fresh milk from consumers, domestic raw materials only meet about 30% of production demand, while 70% are imported from New Zealand, the US, EU and Japan Therefore, input costs increase and product costs also increase However, Vinamilk is also stepping up the development of raw material areas to serve the growing needs of domestic people Input materials are not stable Although investing in many dairy farms but the company’s main source of raw materials still has to be imported from aboard On the other hand, Vinamilk’s main business products are fresh milk while VNese consumers preferring to use foreign portable products over domestic ones The increasing fierce competition with domestic and international dairy brands VNese consumers have more choices about dairy product The market share of powdered milk is not high, not competitive with powdered milk products imported from the US,… IFAS of Vinamilk KEY EXTERNAL FACTORS Strengths VNM managed 83 raw milk collection stations with a total of more than n 100.000 cow heads which gave over 600 tons of milk a day Vinamilk (VNM) has been known as the most popular firms in Vietnam’s dairy industry Vinamilk continued to maintain financial stability in 2019 Consolidated net revenue reached VND 56,318 billion for the whole year of 2019, up 7.1% from the previous year and completed 100% of the year’s plan The Company’s logistics has been improved and applied to manage trips of warehousing and transportation enterprises and other transportation units with route splitting software, which saves 1.5 hours of transport time for each unit and closely manages outsourced units VNM also has coded and applied traceability on the company’s ERP system with more than 500 manufacturers Weakness Vinamilk’s main business products are fresh milk while VNese consumers preferring to use foreign portable products over domestic ones Input materials are not stable Although investing in many dairy farms but the company’s main source of raw materials WEIGHT RATINGS WEIGHTED NOTE/ SCORE EXPLANATI ON 0.1 0.1 4 0.5 1 2 2 0.05 1.5 2