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

Definition
Vision Strategic vision is the long-term
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.
Mission The mission of the company is a
concept used to determine the
purpose of the company, the
reasons that why the company has
VINAMILK
VINAMILK focus all resources to build the
dairy and food company with health
benefits. By building strategic product lines
with long-term competitive advantage,
VINAMILK has become the company rapid
growth and most sustainable.
VINAMILK constantly diversifying product
lines, expanding the distribution territory
... in order to maintain the leading position
on the domestic market. VINAMILK would

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 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.
Goals The goal is set up by a company and
this is also the final result that they
want to achieve.
Objective 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.
like to become the most favorite products
of all regions, territories.
Become a dairy joint stock company
leading in Asia.
 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

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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.

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 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.

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 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:

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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 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.

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REFERENT
Sáng, M. (2011). Mục Đích & Mục Tiêu | Suy Gẫm & Chia Sẻ | Tinh Thần | Muối Ánh Sáng. [online]
Muoianhsang.com. Available at: http://muoianhsang.com/tinh-than/suy-gam-chia-se/muc-dich-muc-
tieu.html [Accessed 23 Mar. 2016].

Vinamilk.com.vn. (2016). Vinamilk - Vươn cao Việt 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-top-100-DN-hang-dau-

ASEAN-2014-Tiem-luc-Vinamilk-lon-den-dau-post150234.gd [Accessed 23 Mar. 2016].