ASSIGMENT 1: BUSINESS STRATEGY

Introduction: Established August 20, 1976, far VINAMILK has become

Vietnam's leading companies in the processing and supply of dairy products,
was ranked in the top 10 strongest brands in Vietnam. VINAMILK not only
occupy 75% market share of domestic milk, but also exports its products to
many countries around the world such as America, France, Canada...

Task 1.1 Strategy process

Vision

Mission

Definition
Strategic vision is the longterm orientation that the
governance outlines of the
enterprise in the future
based on forecasts of the
volatility of the business
environment. It is a source of
inspiration and motivation; it
even creates trends affecting
the development of the
whole society.
The mission of the company
1

VINAMILK
VINAMILK focus all resources to
build the dairy and food company
with health benefits. By building
strategic product lines with longterm
competitive
advantage,
VINAMILK
has
become
the
company rapid growth and most
sustainable.

VINAMILK constantly diversifying

Goals

Objectiv
e

is
a
concept
used
to
determine the purpose of the
company, the reasons that
why
the
company
has
establish
and
existence
bases, its development. The
company's mission is the
manifesto of the company to
society; it demonstrates the
usefulness and significance
of the company's existence
to society.
The goal is set up by a
company and this is also the
final result that they want to
achieve.
To accomplish the final goals,
we
have
set
out
the
objectives to achieve it. And
often, the targets associated
with the quantification of
time, number ... clear, and
goals must be feasible.

product lines, expanding the

distribution territory ... in order to
maintain the leading position on
the domestic market. VINAMILK
would like to become the most
favorite products of all regions,
territories.

Become a dairy joint

company leading in Asia.

stock

By 2020 the construction of

30 branches in the major
markets of Asia such as:
China, Japan, Korea, India,
Indonesia, Thailand
By 2025, construction of 15
factories in China, Thailand,
India, Indonesia.
2030 to occupy 30% of the
Asian market in the field of
nutritional
products.
Construction
of
500
thousand
points
of
distribution throughout Asia.

Core Competencies: As one of the leading dairy producers in Vietnam,

VINAMILK rapid and sustainable development, holding the largest
market share in Vietnam milk, liquid milk sector which accounted for
51.3% market share of the output (more than 45% market share in the
domestic milk market, more than 85% market share in yogurt and
condensed milk, in which 2 staples sector as milk and yogurt
continuous growth of over 30% each year).
Task 1.2 Factors influence on strategic plans
2

a) People: are the resources to implementation the strategic plan of

VINAMILK.
- Broad network of VINAMILK is factors leading to success in many
activities. Allow VINAMILK occupy bulk of gained customers and ensure
the introduction of new products and effective marketing strategies
across the country.
- With the team of experienced sales includes 1,787 sales staff across
the country. They have the potential to promote the success of the
business strategy.
b) Finance: Net sales of VINAMILK reached 19,216 billion VND in 2015
increased by 13% compared to 2014. Cost of sales and administration
expenses increased compared to the last year, in which cost of sales
increased to 92% (an increase of more than 800 billion VND).
Meanwhile, cost of sales fell; pushing the gross profit rose sharply,
reaching 4,387 billion, corresponding to an increase of 50%. Since
2015, financial strength of VINAMILK increased significantly,
demonstrating the feasibility of the goals that VINAMILK has set.
c) Physical resources, information:
- Physical resources: Facilities modern techniques are one of the key
factors contributing to ensure product quality. The company always
innovation, investment in equipment line and modern production
technology, the most advanced at the global level (from countries with
technology and equipment developed dairy industry as Sweden, the
US, Denmark circuit, the Netherlands, France, Germany, Switzerland)
to ensure quality and food safety.
- After more than 38 years of development, VINAMILK has become one
of the leading companies scale Vietnam and contributed greatly to the
prosperity of the country. The subordinate units of VINAMILK - including

3 subsidiaries, 15 factories, two warehouses and three subsidiaries are

creative, relentless efforts to brand to reach new heights.
d) Technology: Vietnam Dairy Factory is equipped with production lines
sterilized milk with modern equipment and advanced production
technology currently leading. The plant operates on an automated
production line, closed, from input to output of products.
Thanks to a combination of factors: advanced processing technology,
technology UHT sterilization and aseptic filling technology, products
can keep fresh flavor for 6 months without preservatives
Operating system-based solutions Plant automation Tetra Master,
which allows connecting and integrating the entire plant from raw
material to finished product for. So that the plant can control all
activities that occur in plants, monitoring and quality control
continuously. Tetra Plant Master System also provides all the necessary
data can help plants to continually improve manufacturing operations
and maintenance.

In addition, warehouse management systems Wamas integrated ERP

systems management and automation solution brings Tetra Master
Plant seamlessly smooth operation of the plant in the planning
activities from production and import raw materials to finished
products warehouse of the company.
e) Resources provided by suppliers and partners:

Suppliers: Building long-term development goals and sustainable for

large vendors at home and abroad is the main goal of VINAMILK to
ensure raw material supply stability not only of high quality but also in
price very competitive.
In addition, the dairy farm is the strategic partner of VINAMILK very
important in providing for the consumer to high-top products. Milk is
purchased from farms to consistently achieve quality standards were
signed between VINAMILK and local dairy farm.
Fonterra is a multinational corporation in the world top in the field of
export of milk and milk products, this group held the third volume of
purchases worldwide. This is a major supplier of high quality milk
powder for many famous companies in the world as well as VINAMILK.
The whole of VINAMILK products are produced on the system of
modern machinery from Sweden, other European countries - the G7
and are strictly controlled under the quality management system
according to international standards ISO, HACCP by the world's leading

companies certified.
Partners: Vietnam Dairy Joint Stock Company (VINAMILK) has officially
signed

with

DSM

Group

(Switzerland),

the

company

Lonza

(Switzerland) and the Group Chr.Hansen (Denmark) on "International

Cooperation in Research and Application nutrition science to develop
specific nutrition products for children in Vietnam ", this is the top
three European partners specialized in the research, development and
application

of

science

and

micronutrients.

VINAMILK

also

has

comprehensive cooperation with the National Institute of Nutrition to

support the investigation of children's nutritional status, actual dietary
and micronutrient shortage of children, to guide the construction of the
product line for the development of children VN today.
Task 1.3: BCG growth share matrix:

Market growth: showing the growth of the market (of products) high or low.
Market share: represents the market for products that your company now
dominate large or small.

Star: products and services in this frame will have a high growth rate,
wide market share, are becoming more prominent in the market. There
are competitive advantages and opportunities for development.
Product result lies in this frame is rated very high on profitability.
However, it means that it takes a large amount of capital investment in
order to compete for the top position.
Question mark: products in this frame is often weak competitive
products, there is not much market share. However, a question mark
can become a star if the company know seize opportunities and right
time investments.
Cash cow: This frame corresponds to slowing growth in market share,
but the positive profit is calculated merely on the business
performance of the product.
Dog: products in weak competitive position, lower market share, fell
into recession and poor profits. If a product falls into this frame,
enterprises can consider complete elimination.
Example of VINAMILK:
There is a product on the question mark frame and has the potential to
become star. It's 100% UHT milk Twin Cows of VINAMILK. The reason to
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develop this product is because after a series of articles about fake

milk, shoddy milk rampant in the market. People will look for trusted
companies or milk from the brand abroad. Twin Cows meet both
because raw milk is produced 100% in New Zealand, besides it also
carry the leading milk brand VINAMILK, the price is lower than other
foreign products. The investment in this product is very appropriate at
the present time and permanent.
Besides, there also has a product in dogs frame and capable to remove
is ZOROK beer. Beer ZOROK is a product of VINAMILK JSC, when just hit
the market has been praised for the quality and price. As you already
know, Vietnam is the biggest beer consumption in Southeast Asia. But
VINAMILK has not succeeded in competing with the oldest brands such
as Saigon, Heineken ... consideration should be removed ZOROK is
very reasonable.

Conclusion: VINAMILK is currently the leading dairy company in Vietnam. To

maintain the top position, VIINAMILK has outlined the goals, objectives and
practical strategies. They are always creative to affirm the mission and vision
that they pose for company.

REFERENT
Sng, M. (2011). Mc ch & Mc Tiu | Suy Gm & Chia S | Tinh Thn | Mui nh
Sng. [online] Muoianhsang.com. Available at: http://muoianhsang.com/tinhthan/suy-gam-chia-se/muc-dich-muc-tieu.html [Accessed 23 Mar. 2016].
Vinamilk.com.vn. (2016). Vinamilk - Vn cao Vit Nam - Vinamilk. [online] Available
at: https://www.vinamilk.com.vn/vi [Accessed 23 Mar. 2016].
Giaoduc.net.vn. (2016). [online] Available at: http://giaoduc.net.vn/Kinh-te/Lot-top100-DN-hang-dau-ASEAN-2014-Tiem-luc-Vinamilk-lon-den-dau-post150234.gd
[Accessed 23 Mar. 2016].