PRIMARY ACTIVITIES AND COSTS Supply chain management Raw material Raw milk supply comes from two

main sources: directly from company farm and from local farm. Recently, the number of cows in the farm has up to 4000 cows. But that number still does not satisfy the growing demand of the production so the company has to buy raw milk from the local farms nearby. Beside milk, the company also has others dairy products such as yogurt, with many flavors and X factors (collagen, calcium, vitamin, etc) designed for our target customers. Yogurt is made with a variety of ingredients including milk, sugars, stabilizers, fruits and flavors, and a bacterial culture. So, in order to ensure the quality control process in accordance with International standard, the additives are bought directly from the most well-known suppliers in the industry. Suppliers Aim at creating and developing a long-term relationship with sustainable growth with large strategic suppliers at home and abroad, Golden Milk wants to ensure the supply of raw materials to be high quality, at very competitive prices. The main suppliers of GOLD MILK: STT Ltd, FBT Corporation, VCC Ltd, Tiko Group, BBC Corporation Operations

Collecting

Separating

Fortifying

Pasteurizing

Homogenizing

Packaging

Cleaning

Distribution Golden Milk has overall 50 distributors in Viet Nam, each distributors cover 200 shops, retailers and supermarkets every day. Totally, each distributor can sell around 2000liters/day. The company provides two main products but with wide variety of flavors and types suited for target customers. But since GOLD MILK focus on the local market, they expand their distribution channels by 20 specialty shops with shop assistants to help customers choose the right product. Golden Milk covers almost 1/8 market share in the milk industry in Vietnam just for 3 years. We can see GOLD MILK products everywhere we go in Vietnam.

Sales and marketing Golden Milk main targets are not only the volume sales but also the customer satisfaction and loyalty. The first thing is to make sure the products when reaching the customers has to be update and fresh, yummy. The second is to make sure the shop assistants are well trained the basic of heath and GOLD MILK products to give correct and good information to customers. Customers Caring department was created with that concept. They both work online and offline, through telephone or mail, communication method that are comfortable and convenient for customers. They deal with complaints by following the procedures that Toyota has applied. And they are also in charge of big and important clients to ensure the relationship with them go smoothly. The company also created Charity Fund "Golden Milk with elderly people". Since initially founded, the fund has rewarded ...... for elderly people with poor conditions nationwide. With this program, Golden Milk hopes that the company will accompany all the poor elderly people to help them have a better life standard The marketing strategies are entrusted with Beal. They are small company but specialized in marketing and advertising field. They knew the Vietnamese market so well and can always create a new creative campaign with flexible concept and efficiently push sales volumes to a new level. Whenever there is a new promotion for the new products Beal will work with the sales department in accordance with GOLD MILK CEO decisions. Many discount policies on the products The company is currently conducting many discounting programs for customers. In addition to that, Golden Milk has strong promotion systems which will reward in accordance with employees performance. Services Consulting website: Goldenmilk.com.vn In this website, Golden Milk will introduce all of the existing products relating to the main two target customers: lady and elder people. Golden Milk will spare a specific part in the website to solve all of the problems that the customers are coping with and is always available to consult the customers with the most appropriate

products Solving complaints and problems In the process of circulation of products in the market, it is impossible to avoid any damage or deficiencies in the products subjectively or objectively. Gold Milk will also be willing to receive any feedback and complaints regarding to product quality. Customers can call the call center or the hotline of the company to share their problems, or they can send their feedback indirectly through the company website: Goldenmilk.com.vn. The company shall reply to all of the customer complaints in the shortest period of time. SUPPORT ACTIVITIES AND COSTS Product R&D, Technology and Systems Development Process R&D For R&D, the company has its own R&D department to cover activities such as basic research, development, fundamental concept research, technology new product development, development, advanced process

development,

development, prototyping, R&D portfolio management, technology transfer, etc After new ideas of new products have been created by R&D department, the company will work with Beal the company being in charge of all of the marketing activities for the company to reach the final marketing strategies for new products Technology All of the production equipment and technology of the company is subject to international standards. Packaging procedure is uniform. We import technology from European countries such as Germany, USA, etc to support the production line. With Vinamilk, Golden Milk is the second milk manufacturer which owned the machinery systems using drying technology of Niro - Denmark, the world leader in industrial drying technology and production. Human Resources Management Golden Milk is the place where always creates the best opportunities for employees to reach their career goals. The company has a number of training courses and programs for employees on a regular basis. These courses are normally celebrated domestically or overseas throughout the year. As a result, Gold Milk employees will have the opportunity to

enhance their occupational knowledge and skills to adapt to the challenges of the job and the particular competitive strategy of the company Gold Milk also has quite a few attractive salary policies and incentives for competent and deserved employees. The amount level of salary is definitely commensurate with the employees competence and their dedication to the company. Every year, the company has many programs to appraise the employees working efficiency. In addition, Gold Milk employees can benefit from Social Insurance policies and back-up transportation programs during the time of working at the company Finally, Gold Milk owns a wonderful corporate culture which creates good inspiration for employees to work more effectively and imaginatively. Employees will enjoy a friendly environment when working here. All of their opinions and complaints shall be listened and discussed thoroughly. Working at Gold Milk, each employee will play an important and unchangeable particular part in reaching the overall company success General Administration Hierarchy Structure of Gold Milk Gold Milk Corporation

Transaction office

Ha Noi branch

Da Nang branch

Ho Chi Minh branch

Gold Milk has 10 dairy factories in total. Safety and Security Gold Milk also ensures the workplace safety for employees to guarantee the workers well-being and health, protect employees from work-related hazards. The company also have its own solutions to violence, drug and alcohol related problems among workers. For workplace security, the company will be ready to cope with any accidents that can be take place during the production progress. For instance, the company did prepare the exit gates for employees in the event of fire breakouts.

Enhancing this will in turn boost the company creativity and increase production for the company. Strategic alliances with suppliers From the beginning, Gold Milk pointed out that its really important to get access to the quality and consistent sources of milk materials. As a result, the company established sustainable relationships with main suppliers, particularly: Gold milk shall buy milk directly from farmers to get quality materials with competitive price. The majority of dairy factories of Gold Milk were established close to the cow farms of the peasants. This will help the company establish good relationships with peasants and create the convenience in transportation Gold Milk signs annual contracts with a number of suppliers inside and outside the country. Foreign businesses located in Australia and England as follows: Name of suppliers STT Ltd FBT Corporation VCC Ltd Tiko Group BBC Corporation Materials supplied Milk powder Milk powder Tins Carton packages Packaging machine