End module assignment module leadership & management

1.2 Background Vinamilk, also known as the Vietnam Dairy Products Joint Stock Company, is aprominent Vietnamese firm specializing in the production and distribution of milk,dairy products

END-MODULE ASSIGNMENT

Module: Leadership & Management

Code: BSS028-2

MIDTERM ASSIGNMENT

Ho Chi Minh City, October 2023

Student: Nguyễn Văn Vĩnh Phát

Student ID: 2245519016

Cohort: K60BFC

Semester: I

Academic year: 2023-2024

Headteacher: Le Son Dai

Submission date: 3th October , 2023

Student’s signature:

FOR EXAMINERS ONLY

Grade (in number):

……… Grade (in words):

……… Examiner 1

(Signature & Fullname)

……… Examiner 2

(Signature & Fullname)

Semester: I Academic year: 2023 - 2024

Lecturer: Le Son Dai

Ho Chi Minh City, October 2023

UNIVERSITY OF BEDFORDSHIRE

SCHOOL OF BUSINESS

-*** -FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

-*** -Except where reference is made in the text of the end-module assignment, thisassignment contains no material published elsewhere or extracted in whole or inpart from an assignment which I have submitted or qualified for or been awardedanother degree or diploma.

No other person’s work has been used without due acknowledgements in the module assignment

end-This end-module assignment has not been submitted for the eveluation of anyother modules or the award of any degree or diploma in other tertiary institutions

Ho Chi Minh City, October 2023

Nguyen Van Vinh Phat

Table of Contents

STATEMENT OF AUTHORSHIP 3

1 Introduction 6

1.1 Abstract 6

1.2 Background 6

1.2.1 Mission , Vision and Core Value 7

1.2.2 Product 7

1.2.3 Customer and Customer gain and pain 7

2 Strategic plan 8

2.1 Objective 8

2.2 Business environment analysis 8

2.2.1 Exteral enviroment 8

2.2.2 Internal analysis 13

2.2.3 SWOT analysis 15

2.3 Strategy 16

3 Action plan 16

3.1 Timelines 16

3.2 Financal plan 18

3.3 Human resource management 19

4 Control method and risk management 19

4.1 Control method 19

4.2 Risk management 20

5 Conclusion 20

6 Reference 20

List of table

Table 3.1 Table of investment cost 18Table 3.2 : Personnel assignment 19

1 Introduction

1.1 Abstract

In today’s cosmopolitan world , especially in business , Management play animportant role in business activities It enables managers to get control of thefirm's condition and then make suitable decisions to assist the company flourish.And this essay will present about management’s situation of Vinamilk

1.2 Background

Vinamilk, also known as the Vietnam Dairy Products Joint Stock Company, is aprominent Vietnamese firm specializing in the production and distribution of milk,dairy products, as well as associated machinery and equipment In 2007, it ranked

as the 15th largest corporation in Vietnam according to data from the UnitedNations Development Program

Within the milk processing industry, Vinamilk holds a dominant position as themarket leader, commanding an impressive 75% share of the Vietnamese milkmarket In addition to serving the domestic market, Vinamilk exports its products

to various countries, including the United States, France, Canada, Poland,Germany, the Middle East, and Southeast Asia

Vinamilk has established a robust domestic distribution network, collaboratingwith 183 distributors and spanning nearly 94,000 sales outlets across 64 provincesand cities in Vietnam Over its more than 30 years in operation, Vinamilk hasdeveloped 8 plants, 1 enterprise, and is actively working on expanding with theconstruction of 3 additional factories

Currently, Vinamilk boasts a diverse portfolio comprising over 200 differentproducts, primarily centered around milk and milk products that undergosterilization and pasteurization processes to ensure quality and safety

1.2.1 Mission , Vision and Core Value

Mission : To become a world grade brand in food and beverage industry, wherepeople put all their trust in nutrient and health products

Vision : To deliver the valuable nutrition to community with our respect, love andresponsibility

Core value : To become a world grade brand in food and beverage industry, wherepeople put all their trust in nutrient and health products

1.2.2 Product

Vinamilk constantly provides top-tier nutritional goods drawn from across theworld, addressing the demands of a varied client base by supplying tasty,nutritious, and health-conscious products connected with various known market-leading brands Vinamilk fresh milk, Vinamilk yogurt, Ong Tho and Southern Starcondensed milk, Dielac powdered milk, and Vfresh fruit juice are among its mostpopular items

1.2.3 Customer and Customer gain and pain

Like other large corporations in the world, Vinamilk has a large customer basedivided into two main groups: individuals and businesses

high Most households are able to afford and access Vinamilk products because theyare priced in a range that is reasonable for Vietnamese families.

Businesses :

- Vinamilk's corporate clients are more diversified than its individual consumers

- To begin, Vinamilk sells products to grocery shops, agencies, and supermarketsthat distribute dairy products and products This client group and Vinamilk havecontractual obligations and contracts in place regarding selling price, profitpercentage, sales bonuses, commission bonuses, and futhermore

- Following that are organizations that consume and utilize Vinamilk goods, such

as schools, canteens, food and beverage stores, bakeries, and so on Whencompared to individual consumers, the costs for these units will be lower Theywill then source things at lower prices from there

2 Strategic plan

2.1 Objective

The primary goal of Vinamilk is to improve and develop the quality of itspasteurized fresh milk product line, which will result in greater revenue, marketexpansion, corporate growth, and supremacy in the nutrition and health business

To that purpose, Vinamilk will continue to expand its operations, conductresearch, and improve product quality

2.2 Business environment analysis

2.2.1 Exteral enviroment

Political & Legal

Vietnam has a high level of political stability We have had a reasonably full andsynchronized legal system in most domains up to this point, with variables such aspolitical stability, legal system, judicial system

The government constantly accompanies, supports, and creates the mostadvantageous conditions for company production and commercial operations,therefore sustaining employment and wages This is an advantageous situation forVinamilk to construct and develop a long-term commercial plan in Vietnam.Many investment and financing programs have been implemented by theVietnamese government to support dairy farming and processing in order toenhance local fresh cow milk output and reduce the quantity of milk importedfrom overseas This has enabled businesses to invest proactively in domestic dairyfarms in order to cut production costs and be more proactive in raw materialsourcing.

Furthermore, by 2020, Vietnam will have 30 strategic and comprehensive strategicpartners; diplomatic relations with 189/193 countries; economic relations with 160countries and 70 territories, creating opportunities for many businesses tocollaborate with foreign partners, including dairy products

Economic

The state of the economy has a significant impact on Vinamilk and otherbusinesses Inflation, economic development level, trade balance, foreigninvestment, income distribution, and purchasing power

Inflation: When the exchange rate between USD and VND rises due to inflation,the price of imported goods must rise as well, because the price of importedmaterials is determined in foreign currency Vinamilk was obliged to adjust milkpricing at the time Price increases will have a long-term negative impact on salesand will cause consumers to experience psychological distress

Furthermore, Vinamilk is under pressure from excessively high animal feed prices

If Vinamilk raises the purchase price, the problem of output price will be worthdiscussing because raw materials account for around 70% - 80% of the productprice

Income distribution and purchasing power: Vietnam's average annual income isaround $1,100 per person Dairy consumption per person in Vietnam remains low.Vietnam, which is located in Southeast Asia, is now recognized as a low-lying part

of the world milk market, with an average consumption of 11.2 kg/person/year(2006), which is quite low when compared to the averages in Asia (62kg/person/year), Europe (290 kg/person/year), and the rest of the world (96kg/person/year) As a result, Vinamilk's client base is geared toward low-incomeconsumers, and the prices of Vinamilk's goods will be modified to reflectemployees' earnings

Social

Because rural residents account for more than 60% of the country's population,underprivileged individuals cannot afford to drink milk Because Vietnam lacks adairy industry, the majority of people do not consume or drink milk on a regularbasis

However, due to the young population structure and rising average income; thetrend of using nutritional supplements and immune enhancing products; and thetrend of consuming convenient, branded products that ensure food hygiene andsafety, demand for dairy products in Vietnam has recently increased

At the same time, Vietnam has 7 cultural areas and 25 sub-regions Each locationhas its unique customs and conceptions of beauty, resulting in varying customerinterests and allowing companies to be innovative in bringing new items to market

as well as developing and implementing regulations conducting business incertain cultural zones and sub-regions

Technological

The majority of dairy plants are equipped with a comprehensive and sophisticatedinvestment scale Synchronous equipment lines and modern technology areimported from countries with established dairy industry technology and

equipment, such as Sweden, Denmark, Germany, Italy, and Switzerland, withclosed automatic and semi-automatic production lines Companies have invested

in automatic control programs in technical lines in order to tightly managetechnological parameters and ensure that the items produced are of consistentquality and fulfill the intended objectives

This is a threat to Vinamilk's company if they do not continually enhance theirmanufacturing technique

Environmental

Currently, producers have difficulties in managing biosecurity in dairy production.Vietnam's natural environment is very vulnerable to biological hazards anddangers, particularly infectious illnesses such as rabies, infectious viral diarrhea(BVD), infectious mastitis, and respiratory syndrome Salmonella, steam, andother infections

However, Vietnam is physically placed in a world-leading strategic zone.Southeast Asia is positioned on an important transit route, with marine andcommerce lines that are among the busiest in Asia, thus Vinamilk will benefitgreatly in terms of growth

Substitute Product

Vinamilk milk substitute goods might include nut milk (soy milk, walnut milk,macadamia nut milk ), cereals, milk-flavored drinks, and so on However,because of their necessity, nutritional value, and popularity, milk products arefrequently less challenged by alternative goods Regardless of how many newdrinks are invented, dairy products, particularly Vinamilk milk, will never beforgotten

Competitors

Today's dairy sector is extremely competitive As we can see, Vinamilk'scompetitors are progressively rising and jeopardizing the brand's dominantposition Vinamilk requires particular competitive approaches to optimize industryentrance costs, improve distribution networks, and continually develop distinctivevalue in order to preserve its leadership position against a number of local andglobal competitors.

New companies enter

With higher user expectations and competition from international milk brandsimported from the UK, USA, and the Netherlands, Vinamilk milk no longer has amonopolistic position in the milk market Although Vinamilk continues to havethe largest market share, international brands remain a major worry for Vinamilk.Customers

Customers of Vinamilk include consumers and agents, wholesalers, retailers,supermarkets, distributors, and so on Because milk is a need for small children,pregnant women, the elderly, and the sick, the price issue is unimportant tocustomers Quality, flavor, and distinction from other brands are more important tothem As a result, Vinamilk concentrates on developing a product image linkedwith promoting a 100% pure fresh milk brand At the same time, we are alwaysintroducing new goods with delectable flavors to better serve our clients

In terms of quality, this firm works with the National Institute of Nutrition to doresearch on nutritious product lines This method assists Vinamilk in gainingconsumer confidence

Suppliers

Vinamilk obtains raw materials for milk processing from farms developed by thefirm and small farmers The problem of this supply is because farmers lack proper

care skills; they are mostly haphazard and inexperienced, therefore milk quality isfrequently variable.

The remainder of the supply comes from imported foreign resources Vinamilk is

in a passive position with this group of suppliers since it is dependent on taxes andmarket price adjustments

2.2.2 Internal analysis

Employees

Vinamilk believes that employees should be valued and treated equally, regardless

of gender, geographical location, or religion Every employee, whether in the field

or at a higher level, has the ability to voice their opinions and contribute to theoverall success of the firm

According to the data table above, this is a somewhat high-quality resource, withroughly half of all workers holding a university degree Employees with auniversity education make up 46.95% of the workforce, which is a considerablebenefit for human resources The sales and marketing team has vast expertisestudying and detecting customer tastes and trends, and direct sales personnel issupported in understanding consumer desires through direct marketing Reach out

to customers at a variety of sales points on a regular basis Furthermore, Vinamilkstaff can conduct product research and development in order to improve productquality and increase product lines for consumers The research departmentcommunicates closely with the marketing department, which is always in contactwith market research groups in order to detect customer trends and preferences

Furthermore, Vinamilk has always had great human resource policies in terms ofrecruiting, training and development, remuneration, perks, and so on Humanresource development, implementation, maintenance, and ongoing improvementare always top priorities head In terms of income, bonuses, and perks, Vinamilk

is regarded as one of the most appealing employers