GROUP ESSAY STRATEGIC MANAGEMENT TOPIC ANALYSIS SFAS TABLE OF TH TRUE MILK

ABOUT TH CORPORATIONTH true MILK full name is TH dairy food joint stock company, under the management of TH Group.. Launched in October 2009, TH quickly left its mark on the Vietnamese d

GROUP ESSAY STRATEGIC MANAGEMENT

TOPIC

ANALYSIS SFAS TABLE OF TH TRUE MILK

Group 07 Class: MAG313_2111_6_L09_TA

Trần Thị Thùy Dương – 050606180073 Nguyễn Đức Huy – 030805170303 Phạm Lê Quỳnh Hoa – 050606180118 Nguyễn Thị Phương Thảo – 050606180363 Nguyễn Trần Xuân An – 030334180002

WHAT IS SFAS? 4

1 Finance 8

2 Brand Positioning 9

3 Production Technology 11

4 Products less variety 13

5 Dairy industry still has potential for development 14

6 Market entry barrier 16

7 Substitutes 17

8 Competitors 19

CONCLUSION 22

REFERENCE 23

TABLE OF FIGURES

Table 1 Vietnam dairy market revenue forecast for 2020-2025, source Babuki 15 Table 2 Milk nutrition chart, source Brands Vietnam 18 Table 3 Dairy industry market share in 2020, source SSI research 20

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ABOUT TH CORPORATION

TH true MILK full name is TH dairy food joint stock company, under the management of

TH Group The business was established in 2010 with financial advice from Bac A Commercial Joint Stock Bank.

TH true MILK's policy is to place the group's own interests in the common interests of the country, not seeking to maximize profits but rationalizing benefits with 5 core values [CITATION THG \l 1066 ]:

For true happiness For public health Completely from nature Environmentally friendly - Out-of-the-box thinking Harmony of interests

Although only established for more than 10 years, TH true MILK has achieved success and contributed a lot to society with 3 times being honored as National Brand, winning the Asia-Pacific International Quality Award [CITATION Tha21 \l 1066 ] 2021, becoming the first Vietnamese enterprise to export fresh milk to China [CITATION THG1

\l 1066 ] The Group also cares and contributes to the environment when co-founding the Vietnam Business Alliance for the Environment, is a key member of the Vietnam Packaging Recycling Alliance (PRO Vietnam) with 18 companies and groups leading groups such as Coca-Cola, La Vie, NutiFood, Saigon Co.op, [CITATION Pac \t \l

1066 ]

TH true MILK is still continuing to carry out its mission for public health with products that meet the criteria of clean, organic and good for customers health.

WHAT IS SFAS?

The SFAS (Strategic Factors Analysis Summary) Matrix summarizes an organization's strategic factors by combining the external factors from the EFAS Table with the internal factors from the IFAS Table The framework generates an insightful snapshot of the prevailing, holistic strategic equation for each company by identifying, weighing, prioritizing & ranking significant strategic factors present in the internal & external environment.

When hear about the definition of SFFAS, we tend to think of the SWOT matrix when both refer to the strengths, weaknesses, opportunities and threats that business has faced.

SWOT and SFAS both presenting 4 factors very clearly, easy to see and easy to understand the results The preparation and completion of these two matrices also does not take too much time when mainly based on the subjective opinion.

However, this also leads to the fact that the results of SWOT and SFAS are not highly authentic when there are not many studies and investigations to verify the factors of the enterprises mentioned At the same time, both do not have a clear analysis between strengths, weaknesses, opportunities and threats without considering the relationship between factors, when a factor can be both a strength and a threat Weaknesses, or opportunities are also challenges of the company.

SWOT and SFAS also have obvious differences when:

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Do not rank the rating of each element Rating each element

Present all four factors in turn, but do not summarize the problem

There are comments to help readers easily grasp the issue after each mentioned element

The maximum number of factors to be considered is not specified

Specify up to 10 factors, placing the focus and most important factors on the IFAS and EFAS tables

 SFAS Table

Strategic Factors Weight Rating

Weighted Score

Duration

Comment Short Intermediate Long

capital mobilization for businesses and ensuring that business and

investment operations are conducted on a constant and continuous manner.

Brand

Assert the product's worth and the

company's clout.

Production

Brings tangible benefits to businesses, creating greater profits while still meeting client demands.

Products less variety .10

TH true MILK has only a few basic types of milk.

TH true MILK's products have high prices

6

The dairy industry still has potential to develop

The country' s overall market size grew through the year

of the epidemic Export output output

Market entry barrier

New businesses want to join the milk market in vietnam facing many barriers to barriers

Many are headed for milk

substitutes for various reasons

Products ideas are easily imitated and dumped

1 Finance

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In today's business activities, finance helps businesses:

Control the financial flow of all business activities or production of the organization:

Perform currency checks and conduct regular and continuous analysis of financial indicators Specifically, those criteria are: financial structure, solvency, performance and use of financial resources; specific indicators of profitability.

Leverage stimulates and regulates business activities: The distribution function of

corporate finance in accordance with the law will make corporate finance become an economic lever that affects productivity growth and profit compared to invested capital.

Deciding on investments and funding: Planning is not enough, leaders or financial

managers must decide on effective methods of implementation, and identify investments and finance investments in assets, technology, people, etc how to be reasonable From there, profits can be grown appropriately compared to the investment in fixed assets, machinery or from upgrading current production technology to meet market demand.

Closely monitor and inspect all aspects of production and business activities of enterprises: Through the form, daily monetary expenditure, financial situation and the

implementation of financial targets Business leaders can generalize and control all aspects of business activities, timely detect problems in business From there, making decisions to adjust activities in accordance with actual developments.

Rating - 4

The investment in building the largest dairy factory in Southeast Asia helps TH Milk to have rapid development steps Launched in October 2009, TH quickly left its mark on the Vietnamese dairy market with the strategy of "True milk - real milk" This business accepts a huge initial investment to build a feed area, build a herd of cows, production, and a distribution and retail system in the market.

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In addition to capital from shareholders, the group received loans from BIDV and Vietnam Development Bank (VDB), Nghe An branch and Hai Phong bank (Maritime Bank).

TH Milk also received investment advice from Bac A Bank, where Ms Thai Huong is the General Director This bank used to be a shareholder, holding 7% shares of TH Food Milk company according to a 2014 report

In addition, TH Milk is also supported by the Israeli Government with an investment package worth 100 million USD Among the 3 companies operating the dairy business,

TH Milk Food has the largest charter capital of 3,800 billion VND, the other two companies have a charter capital of only a few hundred billion [CITATION TheLeader2018 \l 1033 ]

It is clear that the IPO plan in the next few years will solve the problem of financial resources for the group's ambitious dairy business both at home and abroad.

2 Brand Positioning

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In the first step of building, brand positioning aids businesses in identifying competitors and market trends Following that, brands devise unique tactics for effectively reaching customers and ensuring smoother communication operations.

In addition, brand positioning is a useful tool for future business expansion You don't have to invest a lot of money to establish a brand strategy and earn a good reputation with clients

A good positioning signifies that the brand occupies a specific space Customers will always prefer a respectable brand over one that simply talks about speculative profit margins As a result, brand positioning will attract loyal customers, providing a strong basis for future growth.

In the later stages of the business process, it is generally easier to expand and segment items with a brand that has firmly established itself in the minds of customers Then you won't have to spend as much money on communication but will still have a good reputation in the market.

In summary, brand positioning provides a firm basis for organizations at all stages of development and expansion.

Rating - 5

TH true MILK liquid milk has succeeded in positioning the word "clean" in the minds of customers with the slogan: "Truly natural", "The essence of nature in every drop of clean milk".

Before 2008, Vietnamese milk was not yet named on the world map From that starting point, TH created the first revolution - it was the clean fresh milk revolution, opening a new path for Vietnam's dairy industry Pioneering the application of high technology in agriculture, Ms Thai Huong and TH Group launched a $1.2 billion dairy farming and milk processing project After only 5 years- 2015, TH Group has made its mark with the largest high-tech dairy farm in Asia Before that, Vietnamese dairy products have existed for decades, but there has never been a fresh milk award From 2010 to now, international awards have continuously named TH's fresh milk products such as World Food Moscow (4 consecutive years from 2015 to now), ASEAN Best Food Product 2015, Gulfood Dubai 2016, Stevie Awards 2018

TH has pioneered to become a pioneer enterprise that clearly states the origin of input materials on product packaging - the most important factor constituting milk quality Under the direction of Ms Thai Huong, TH made recommendations to make the dairy market transparent in Vietnam, proposing that enterprises must clearly indicate the origin

of input materials on product packaging and authorities It is necessary to conduct a review, inspection, and classification of dairy products circulating on the market and strictly handle violations when there are violations And TH is also the first enterprise in 10

Vietnam that is allowed to write on the packaging as clean fresh milk [CITATION BáoTP2018 \l 1033 ]

To maintain its brand position, TH Group has proven it with its products, not just meaningless brand promises spread on social networks.

3 Production Technology

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Applying new technological processes and modern technologies in the production process brings competitive advantages to many enterprises, helping them to assert their position in the market When new food products are created according to technological standards, the quality meets the standards to serve the maximum needs of users, thereby attracting the number of customers to help increase revenue every day Besides that; The application of modern technological processes helps businesses reduce labor costs, minimize labor costs and high productivity.

The production capacity of an enterprise is not consistent with the size of the enterprise but is assessed through the efficiency criteria of the production and business process That means that a small-scale enterprise can be assessed as having production capacity in parallel with a large-scale enterprise Enterprise production efficiency depends on many factors in which: machinery and equipment have a direct impact on the production process Therefore, it is important for every business to modernize machinery and equipment or to innovate modern technology, and at the same time, it needs to develop its own technology innovation plan to survive and develop in the long run.

When technology is transferred to help modernize the production process; The operator, the main actor affecting it must apply it according to the previously built technological process, ensuring in the production process: the applied technological process does not cause any errors to create high quality products, diversifying many new product lines, increasing output, labor productivity, and reducing the cost of buying raw materials,

Rating - 5

TH Group is currently investing in many production and business projects in the field of food and beverage Prominent is the project "Milk raising and milk processing focusing

on high-tech application", producing clean fresh milk with TH true MILK brand The project operates under a closed production chain, implemented in October 2009 with a total investment of 1.2 billion USD The project has a total herd of 45,000 cows in Nghe

An, setting the record for the largest concentrated dairy farm in Asia in 2015 [CITATION BáoTNMT2021 \l 1033 ]

In December 2020, TH farm cluster in Nghe An was confirmed by the World Records Union (Worldkings) as a World Record, which is the record of “Cluster of farms with high technology application with closed production process with the largest scale in the world” with a cluster of farms owning large and modern barns with leading advanced standards

in the world, applying 4.0 technology and modern equipment in all stages of a closed process (which uses electronic chips to control feed, veterinary medicine, estrus ).

TH milk project has been expanded to many provinces, including Ha Giang, Cao Bang, Thanh Hoa, Phu Yen, Kon Tum and now An Giang.

The project of dairy farming and high-tech milk processing in An Giang by TH Group, applying high technology, technology 4.0 and the quintessence of management science from the project of dairy farming and milk processing, achieved a record TH's world in Nghe An continues to be applied with a closed process and meticulous care to create international standard milk cups TH's farm cluster in An Giang will also be designed and operated with the world's leading modern technology such as: Breeding process, cow herd management, barns using the advanced dairy cow management system Afimilk (Israel); New Zealand's veterinary and disease management process; Process and equipment for water and waste treatment of Japan, Israel, the Netherlands [CITATION NDT2018 \l

1033 ]

4 Products less variety

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