Strategy planning of Anh Khai Ky limited company in the period of 2011 - 2015

5 CHAPTER 1 : THEORETICAL BASIS AND PRACTICAL STRATEGY TO TRADE IN FOOD AND FROZEN FOOD AT ANH KHAI KY COMPANY LIMITED .... Then company continuously developed until the year of 2008 ch

TRAINING PROGRAM Global Advanced Master of Business Administration

- Nguyen Phu Cuong

- Nguyen Thanh Manh

- Nguyen Đinh Quang

- Nguyen Thi Phương Thanh

- Nguyen Thi Le Thy

HCM City – 2011

TABLE OF CONTENTS

PREFACE 5

CHAPTER 1 : THEORETICAL BASIS AND PRACTICAL STRATEGY TO TRADE IN FOOD AND FROZEN FOOD AT ANH KHAI KY COMPANY LIMITED 7

1/Theoretical basis concerning to business strategy 7

1.1./Concept of strategic management 7

1.2/Establishment processes and strategy selection 7

1.2.1/Define mission and goals of the business orientation: 7

1.2.2/Business environment analysis: 8

1.2.2.1/ External business environment analysis: 8

1.2.2.2/Inside environmental analysis: 9

1.3/ Analyze strategy and selection 10

1.3.1/ Strategic analysis –SWOT matrix tool 10

1.3.2/ Strategy selection 10

1.4/Execute the business strategy: 10

1.5/Evaluate strategy 11

2/Consumer and trend of using foods at Vietnam market 12

3/ Legal requirements on food 12

4/ Competition and need of strategic planning for processing food 15

CHAPTER 2 : ANALYSIS REALITY OF ANH KHAI KY COMPANY LIMITED 17

1/Overview of Anh Khai Ky Company Limited 17

1.1/Establishment and development of Anh Khai Ky Company Limited 17

1.2/ Organization structure of Anh Khai Ky Co., Ltd. 19

1.3/ Income statement 21

2/External environment analysis: 23

2.1/Macroscopic environment 23

2.1.1/Impacts of law, politics 23

2.1.2/Economic impact 26

2.1.3/Impact of culture, society 27

2.1.4/Impact of technology – technique 27

2.2/Microscope environment 29

2.2.1/Analysis of competitors 29

2.2.2/ Analysis of customer’s behavior 31

2.2.3/Analysis of supplier 33

2.2.4/Replaced product 34

2.2.5/Barrier of industry entrance 36

3/ Analysis of inside environment 36

3.1/Analysis of inside environment 36

3.1.1/Management: 36

3.1.1.1/Ability of Manager 36

3.1.1.2/Organization structure: See diagram No.2.1 37

3.1.2/ Marketing management. 37

3.1.2.1/Consumed product, price policy 37

3.1.2.2/Distribution channel 38

3.1.2.3/Marketing activities 40

3.1.3/Human source management 40

3.1.4/ Accounting and finance management 42

3.1.5/Research and Development management 44

3.1.6/Activity of information system 44

3.2/ IFE matrix analysis 44

4/ General observation about Anh Khai Ky Company Limited: 45

CHAPTER 3: RESOLUTION, PETITION AND CONCLUSION OF BUSINESS STRATEGY OF ANH KHAI KY COMPANY LIMITED UNTIL 2015 47

1.1/ The orientation target and mission 47

1.1.1/ The orientation target of industry from Government 47

1.1.2/ The Company’s oriental target 49

1.1.2.2/ Stable growth 50

1.1.2.3/ Competitive position 50

1.1.3/ Social target 50

1.2/ Strategic planning of development until 2015 51

2/ The solutions and suggestions of strategic implementation until 2015 53

2.1/ Some groups of strategic implementation solution until 2015 53

2.1.1/ The group of strategic implementation solution for human resource management 53

2.1.2/ Group of solutions in implementing the strategy of product diversification, goods sales 56

2.1.3/ The marketing solution 57

2.1.4/ Group of solutions implementing strategy of competitive price. 59

2.1.5/ Group of solution in financial accounting management. 59

2.2/ Other suggestions to the Government and Company 60

2.2.1/ The Government 60

2.2.2/ The Anh Khai Ky Company 60

CONCLUSION 61

REFERENCES 62

APPENDIX OF PRODUCTS 62

LIST OF CHART

Chart 2.1 : Spent level of consumption per capita person/ month for meat types of years 2007,

2008,2009 (thousand dong/person/month) 32

Chart 2.2 : Total revenue of imported meat and meat products (Years 2008 – 2010) 35

LIST OF DIAGRAM Diagram 2.1 Organization structure of Anh Khai Ky company 19

Diagram 2.2 Domestic distribution channel of Anh Khai Ky company 39

Diagram 2.3 Overseas distribution channel of Anh Khai Ky company 39

LIST OF TABLE Table 2.1 Income statement of Anh Khai Ky company (2008 – 2010) 21

Table 2.2 Revenue structure as per product 21

Table 2.3 Balance sheet of Anh Khai Ky company 23

Table 2.4 Economic norms of Viet Nam 26

Table 2.5 Matrix EFE of Anh Khai Ky Company 28

Table 2.6 Competitive matrix – CPM 31

Table 2.7 Table of total of imported meat and meat products 34

Table 2.8 Table of labor distribution per department 41

Table 2.9 Table of staff structure as age level 41

Table 2.10 Staff structure as per level 42

Table 2.11 Table of financial ratio of Anh Khai Ky Company 43

Table 2.12 IFE matrix of Anh Khai Ky company 45

Table 2.13 The plan of production for breeding field in the state of 2011 – 2015 49

PREFACE

In November 2006 Vietnam officially joined WTO after 11 years of holding

negotiation At that time, WTO event was considered as the most important active factor to speed up Vietnamese economics entering into the hot stage of investment, boom commerce, GDP growth at a high level, strongly increased in import-export, economic regulations and domestic business environment were improved in many aspects as per extending trade liberalization However, the bright long-sighted after joining WTO was put down by the wave of global financial crisis resonated with the internal weak structure of economy within many years ago, crisis was shown most clearly weaknesses of economic structure, competition of Vietnamese goods to penetrate into international market and at its homeland, ability to meet requirements and establish technical standards in goods exporting, ability of government firms in controlling goods importing to ensure health of people Period of post–WTO created much challenge for domestic manufacturers who had to face more with dump cases of foreign country for its exported products, competition of domestic and foreign manufacturers when tariff barrier has been gradually lowered and lifted

by its WTO commitments

Anh Khai Ky company is established in 2007 which was Anh Khai Ky dried beef processing base Then company continuously developed until the year of 2008 changing into Anh Khai Ky produce- commerce – services Company Limited which specializes in producing and processing dried beef, ham, etc Besides it trades frozen food (buffalo, beef, pork and chicken) Facing challenges of economy in generally and food industry in particular, company based solely on the strengths and experiences, it cannot stand firmly and continue to develop With desire to find heading, keep business position, Anh Khai Ky shall have a long-term strategy to create competitive advantage, and this is the matter that medium and small companies in Vietnam are not paid attention Catching importance of strategic planning for organization, and want to apply theory into company’s reality, our

team decide to choose topic: “Strategic planning for Anh Khai Ky Company Limited in the period 2011 -2015”

Research objective: the system of theoretical basis of business strategy, the concept of strategic management, establishment process and strategic choices Based on theoretical analysis going into the actual situation of production and business activities of enterprises, from which to build appropriate business strategies and building solutions for implementing successful proposed strategies

Object and research scope: research the process of establish and strategic choices of Company, the scope of research: Anh Khai Ky produce- commerce – services Company Limited, in addition to study the rival competitive Companies

Research method: Data which are taken out from many sources such as Anh Khai Ky, General statistics office, the press, internet, etc The dissertation use method of description, statistic, comparison and date analysis

Dissertation structure includes 3 chapters:

 Chapter 1: Theoretical basis and practical strategy to trade in food

and frozen food at Anh Khai Ky Company Limited

 Chapter 2: Analyze reality of food trading at Anh Khai Ky

Company Limited

 Chapter 3: Resolution , Petition and Conclusion

CHAPTER 1 : THEORETICAL BASIS AND PRACTICAL STRATEGY TO TRADE IN FOOD AND FROZEN FOOD AT ANH KHAI KY

COMPANY LIMITED 1/Theoretical basis concerning to business strategy

1.1./Concept of strategic management

science to set up, carry out and evaluate decisions relating to many functions for allowing an organization get a proposed target”

general action programs toward proposed target Strategy is not aimed to disclose specifically how to do for getting target because it is the responsibility of innumerable support programs, other functional ones Strategy only creates frame to guide thought and action”

1.2/Establishment processes and strategy selection

According to Fred David, the stage of strategic management consists of three

phases: formation strategy, strategy implementation, evaluation and test strategy

1.2.1/Define mission and goals of the business orientation:

organization Common message of mission is often covered three main

points :

+ Purpose of organization + Professional branch of activities + Value is brought back

wants to achieve anything, at any moment The objective must be linked to the mission and must be established on the basis of careful and scientific analysis

1.2.2/Business environment analysis:

With a view to consider company as a system, we can say business environment

of company contains opportunities and certain risk to its operation

1.2.2.1/ External business environment analysis:

kinds:

 Economic impact: Economic environment shows nature and

orientation of the economy in which company operates Economic impact of a company can alter the ability to create value and its turnover, such as growth rate, interest rate, foreign

exchange rate, inflation rate

 Impacts of society, culture, demographic and geography:

Changes in geography, demography, culture and society have an important influence to virtually all products, services, markets and consumers including: cultural values lead and create foundation of society; population; age structure; geographical

distribution; ethnic communities; income distribution

 Impacts of law, government and politics: New policies relating

to state control: antitrust law, tax law, law of labor; commercial policies; national protective barriers, etc Government can affect

operation and profitability of industry or companies

 Technological impact: the transfer of knowledge to the output of

products, processes and new materials Globally, opportunities and threats of technology affect all companies by purchase from outside or self-invented the new technology

- Competitive impact: The importance of checking the external factors

is to indentify competitors and advantages, disadvantages, capabilities, opportunities, threats, goals and their strategy

- EFE Matrix: A tool to summarize and evaluates information outside

nature, science and technology There are five steps in the development of EFE Matrix

 Make a list of factors that play a decisive role for the success, as identified in the inspection process from external factors, including the opportunities and threats affecting company

 Analyze importance from 0.0 (unimportant) to 1.0 (very important) for each factor Total these analysis must be equal 1.0

 Classify from 1 to 4 for each factor of success to show how the current strategy of the company's response to these factors in which 4 is the good reaction, 3 is the over average reaction and 1 is the less reaction

 Multiply important level for each factor to define score of importance

 Add total score of importance for each variable so that indentify total important score for organization

1.2.2.2/Inside environmental analysis:

outside environmental analysis

summarize and evaluate the strengths and weaknesses of the important

functional components of business functions, and it also provides foundation to identify and to evaluate relations among these parts, there are

five steps to evaluate matrix IFE, similar to matrix EFE

1.3/ Analyze strategy and selection

+ Decisive stage: Use Quantitative strategic planning matrix (QSPM)

1.3.1/ Strategic analysis –SWOT matrix tool

Weakness – Opportunities – Threats matrix (SWOT) is the important tool

in combination can help managers develop four types of following strategies:

1.3.2/ Strategy selection

allow strategists evaluate objectively strategies which can be replaced

tools like matrices can increase significantly quality of strategic decision, but should not use them to control strategic selection because it is

considered on aspects of culture, politics and administrate

1.4/Execute the business strategy:

Execution of strategy is related to many departments, sections in company,

so this requires that all managers and all staffs of departments, sections in company understand strategy, know how role they play in general strategy

of company, from this they can co-ordinate harmoniously because strategy

is the unity of issues:

+ Identify short term goal (yearly goal);

+ Create enough capital to implement strategy;

+ Financial statement forecast;

+ Drafts of financial budgeting;

+ Assess value of a company ;

1.5/Evaluate strategy

fights a hundred wins”, evaluate strategy timely can warn administrator to

be difficult or difficulties can happen before a case becoming serious Evaluate strategy can be a complex and keen responsibility Appreciate the strategic assessment can cause wasting and sometimes bring the opposite effect, however little evaluation can cause worse problems, the assessment consists of three basic activities:

+ Check essential foundations of a company’s strategy;

+ Compare desired results with actual ones;

+ Receive proper activities to ensure that the work being carried out in conformity with the plan

2/Consumer and trend of using foods at Vietnam market

total level of food consumption at Vietnam markets in stage of 2009-2014 will increase by 67.3%, respectively in year of 2014 this consumption level

is estimated at 426,997 billion dong Consumption per capita is estimated

at 56.4% (equivalent 4,537,628 dong) in year 2014 Characteristics of Vietnam today is the young population and increasing density so Vietnam becomes a potential consumption market of beverage products and food with brand name in medium term Besides, the strong expansion of retail industry will bring the average consumption per capita increased as well as competition of price at dealers However, according to GDP, the level of food consumption can be reduced lightly from 15.5% (year 2009) to 14.8% (year 2014), this shows income of people increasing but its level relatively

slow

demand for processed food increased Consumers presently are tending to consider and recognize better about origin and food safety to improve quality of life Therefore, the concern for health also encourages consumers

to buy processed food rather than using fresh living things

3/ Legal requirements on food

food“ is promulgated by Ministry of Health enclosing with Decision No 23/2007/QĐ-BYT dated 29.3.2007 officially valid, deleted Decision No 1370/1997/QĐ-BYT dated 17.7.1997 about promulgation “State inspection regulations of safe sanitary quality for imported food ” Base on that, all organizations and individuals import food shall register for inspection and

to be inspected by State inspection organization of safe sanitary quality for

food (SF) before taking goods to consume in the market

+ Stringent inspection: is to take sample in probability or taking

at suspected places to inspect Stringent inspection is applied for four cases stipulated under points a), b), c) and d) section 1 Article

inspection organ shall have result notice to owner of imported goods, at the same time report to authority organ also as per statute, each two year term one time or unscheduled, inspector of Health Ministry is in charge to combine with Department of food sanitary safe survey, inspect, execute this Statute of inspection organs and

report to leader of Health Ministry

inspection organ (at border gate, place gathered goods or in the preserved warehouse) Methods of inspection , sampling is applied as follows:

+ Usual tests: Perform test sample shipment inspection in the frequency of up to 10% depending on risk level of the goods This frequency is applied for each place of importation The sampling is done testing any of the imported consignment check Shipment inspection procedures allowed clearance without waiting for test results to target food safety

+ Stringent inspection: Execution of sampling to inspect surveying lot as per density 30% when discovering one previous inspection lot violated seriously about food safe; density 100% when discovering two continuous inspection lots before violated seriously about food safe In these cases, owner of goods shall keep himself his goods (at border gate, place where gathered goods or in the preserved warehouse) and only to be customs clearance when having certification of food safe issued by inspection organ or permitted by inspection organ In case of inspecting sample of two continuous inspection lots having result conformed to request will

be applied mode of normal inspection

safety inspection (in the form set out in Annex 4) with offices at the border

at least 24 hours before the goods arrives at the border gate Inspection process as follows:

+ Check record: Check the record: The inspection of the implementation review registration dossiers (origin, history of compliance with food safety regulations on the basis of production) and check the certificate of registration within one working days from receipt of full registration dossier

+ Perceptible inspection: inspection organ executes check status

of lot, packing, written label when goods arriving border gate

+ Sample Test: The test sample implementation for testing food safety norms at the site has been registered Test methods, sampling

as prescribed in Article 14 of this Circular

+ Make record of inspection and sampling (in the form stipulated under Appendix 5)

signed on 07/03/2003, stipulated knowledge of food safe sanitary for trader directly makes business on food signed on 20/12/2005…

4/ Competition and need of strategic planning for processing food

consideration : “In a trading produce branch shall suffer five competitive pressures: competitive pressure from supplier; competitive pressure from customer; competitive pressure from latent opponent; pressure from replaced product; branch internal competitive pressure” Competition is comparison, control essential force among companies, threats, challenges

or opportunities of company, mainly having from antagonistic process of this strength Competition is on many aspects : Trade name – Quality – Design – Price, etc Competition is rivalry among economic subjects (producer, distributor, retailer, consumer, businessman, etc) aiming to get position creating relative advantage in produce, consumption or consumed goods, services or economic interests, other commerce to get back much

interest for themselves From November 2006 Vietnam officially joined WTO, competitive environment of Vietnamese companies in generally and processing companies in particular is more violent, both is opportunities and challenges, and created condition for Vietnamese companies increasing export profit due to leave out gradually market barriers and trade barriers, meanwhile possible to make small companies not enough existence on business world more and more violently competitive Competition can happen among producers, distributors each other or can happen between producer and consumer when producer wants to sell his goods, services at the high price, but consumer wants to buy at the lower price Competition

of a company is company’s strategy with opponent in the same branch, etc

general industry and gross domestic product (GDP), it is the field attracting much foreign investment capital in recent years, strategic planning is a defined process to determine the orientation allows companies to change, improve and strengthen their competitive position, especially for companies in food industry always suffer many competitive pressures, and influenced from outside environment such as: competitors, substituted products, market change, customers

CHAPTER 2 : ANALYSIS REALITY OF ANH KHAI KY COMPANY

LIMITED 1/Overview of Anh Khai Ky Company Limited

1.1/Establishment and development of Anh Khai Ky Company Limited

From members of family Steering Committee of company who held a

slaughter post, trading beef, pork in Quang Ngai, in the year of 2000 family members moved into Ho Chi Minh City to settle life By over twenty year experiences, members established enterprise of trading import buffalo meat, beef and at the same time research to learn produce of dried beef, dried cattle

After over one year Vietnam joined World Trade Organization (WTO), family members decided to switch model from Individual operation Enterprise into type of limited Company to be more convenient in business transactions, especially in international business transaction with its higher legality

PRODUCING COMPANY LIMITED

“AKK”

Logo of Anh Khai Ky company

HCMC

ward, Binh Tan District, HCMC

- Website : http://anhkhaikyfoods.com

and Investment Department HCMC dated 01/08/2007

hundred million)

products, such as: buffalo meat, beef, pork, chicken, fish, cattle, etc Produce and process dried beef, crushed and desquamated meat, dried

cattle types

Director

Khai Ky dried beef Enterprise into Limited Company This enterprise is

established from year 2000, from family members of Director

1.2/ Organization structure of Anh Khai Ky Co., Ltd

Diagram 2.1 : Organization structure of Anh Khai Ky Company

+ Company’s branch has function to produce dried beef with trade name “Anh Khai Ky dried beef” Part of produce is located at address: 67/40/9 Nguyen Thi Tu, Quarter 3, Binh Hưng Hoa B

ward, Binh Tan district, HCMC It is including: produce workshop,

packing workshop and warehouse containing finished product

+ Administrative Department: carry out work of recruiting personnel ensure quality as per demand and strategy of the company Organize and combine with other departments to execute personnel management Build up regulation of salary and bonus Organize to execute guidelines, stipulation or Director’s instructions

+ Foreign trade Department: has function of negotiation, put order of import goods as per request of Sales department, meanwhile research new goods, new suppliers on the frozen goods market at abroad Besides, there is additional function of carry out receiving - delivery, make formality of customs clearance at the border gate

+ Sales department has responsibility of selling goods, research demand of market, extend distribution channel, explore daily unstable price

+ Accounting department has responsibility to settle, to enter in the accounts of daily arisen professions, synthesize, make financial report, enter in the accounts of tax report, etc

+ Cashier department has responsibility to collect money, follow sales debt, make plan of spent for orders

+ Warehouse control-delivery department has responsibility to control goods of company at the company’s and frozen warehouses rented by company to send goods enter and deliver goods for distributors

1.3/ Income statement

Table 2.1 : Income statement of Anh Khai Ky Company (2008 – 2010)

(Source: Financial statement of Anh Khai Ky)

(UNIT : Million dong)

2010

Density

2010

Table 2.2: Revenue structure as per product

(Source: Anh Khai Ky’s figure)

Comment: Economy is facing difficult, but company’s revenue increased

through years, revenue speed of year 2009 increased 50%, year 2010 increased 61%, from 95,621 million dong of year 2008 to 2010 revenue to

be 230,423 million dong , increased 140% against year 2008 In which revenue of each item, imported buffalo meat taken very big density to 71%

in total revenue of year 2010 Profit after tax of company year 2010 reduced very much against year 2009 and 2008, reason was accounting- financial administration of company was much limited, not yet control expenses Management Board only concentrated to develop market share, revenue, year

2010 had many policies of government made hidden expense of company increased highly as well

33,603,010,411

25,519,086,950

I Cash and equivalent

5,068,181,478

3,955,798,058

2,539,857,015

III Account receivable

15,725,083,935

13,484,960,053

9,879,819,183

IV Inventory

19,193,906,583

15,675,865,141

12,802,643,738

V Other current assets

611,479,381

486,387,159

296,767,016

III Investment property

1,240,464,000

1,240,464,000 -

TOTAL ASSETS

42,649,460,999

35,755,658,642

26,499,163,587

A – LIABILITIES

28,200,102,891

23,336,745,614

18,111,751,315

I Current liabilities

28,200,102,891

23,336,745,614

18,111,751,315

B – EQUITY

14,449,358,108

12,418,913,028

8,387,412,272

I Owner’s investment capital

14,449,358,108

12,418,913,028

8,387,412,272

TOTAL LIABILITIES & EQUITY

42,649,460,999

35,755,658,642

26,499,163,587

Table 2.3 : Balance sheet of Anh Khai Ky

(Source: Financial Statement of Anh Khai Ky)

Comment: Total assets and equity increased evenly from year 2008 to year 2010,

in which mainly increased in current assets Total liabilities and shareholder’s equity increased because of retained earnings increasing

2/External environment analysis:

2.1/Macroscopic environment

2.1.1/Impacts of law, politics

highly stable and safe countries in Asia Vietnam is increasingly improving the business environment: policy reform, to encourage the development of economic sectors, administrative reforms, continued amendment of the law-related economic activities, attract investment However, Vietnam's legal system more deficiencies, limiting the specific guidelines, the lack of reality Administrative formality has been wordy although having step of

innovating administrative formality in year 2010 of government

- Frozen food trading industry is suffered many stipulations of law Request of food safe sanitary for human health is very high This industry

is regulated mainly of four ministries, they are: Ministry of Health, Ministry of Agriculture and Rural development, Ministry of Finance, and

Ministry of Industry and Commerce

date

Name

goods origin from imported animal

permission of food safe sanitary for some ones origin from imported animal, produced and circulated in domestic belonged to control scope

of Ministry of Agriculture and Rural development”

Circular No BNNPTNT dated 08/04/2010 and Circular No 06/1010/TT-BNNPTNT dated 02/02/2010

monitoring of heading Beta-agonist

in animal husbandry

conditions for poultry slaughter

- Besides request of ensure food safe sanitary per stipulation, politic

factor also influences very big to this industry business Because Vietnam

is an agricultural country but it have to import essential items of

agriculture, so legal stipulation writings have protective qualities for

domestic agricultural industry For example, the main buffalo meat

imported from India except current stipulations of frozen foods, Veterinary

asked Agriculture Ministry of India issuing food safe sanitary certificate as

per stipulation and forms of Vietnam for Indian exporter was Allana

+ Step 1: Company sends application to Veterinary Department

– Ministry of Agriculture to be allowed import limit of frozen foods

from foreign exporters named in the list approved and agreed by

Aquatic product Department - Ministry of Agriculture as per Circular

http://www.nafiqad.gov.vn

+ Step 2: Sign contract of import

+ Step 3: When goods is arrived at port to make customs

clearance, shall apply two licenses, one is the automatic import

license as per request TT24 of Ministry of Industry and Commerce

and inspect sample of regional Venetary Department

Table 2.4: Economic norms of Vietnam

(Source: General Statistics Office – www.gso.gov.vn)

factors, not yet having trend of clear development, highly increased inflation Year 2010 GDP of Vietnam increased about 6,78% against year

2009, inflation of year 2010 as per General Statistics Office announced increase level of consumption price index was 11,75%, in which food price index increased 16,69% Jump to event in 2011, inflation rate has many complex factors, not following the rules of the previous years, Quarter I/2011 inflation index increased 6,12% In basket of goods inflation, the price of food and food services accounted for the largest

increase throne

business activity of company

water-bird, fruit vegetable are essential items served for daily meal of people

Demand of foods is on rise in line with trends of people’s income and population growth on increasing Viet Nam

reached 35,367.5 billion, up 5.4% compared to 2009 With such growth, vinegary industry became one that has the biggest growth speed in agricultural group (including cultivation, breeding and services), and bigger than general growth speed of entire agro-forest-aquatic product industry

(accounted 4.7%)

2.1.3/Impact of culture, society

male population taken 49.7%, female population taken 50.3%, labor age

from 16 – 60 years old

dishes made from buffalo meat, they are mainly rice, vegetables and fish General meal structure of Vietnamese people has rice, vegetable, fish Depend on region area, the most specific meal is salted egg-plant and spinach, North of Vietnam is due to cold climate so meals often to be fatted, especially fat meat For Central of Vietnam, climate is due to season, inhabitants also diversified in type of economic produce (plant wet rice, catch aquatic product, breeding, etc) so meals also having tastes different from North of Vietnam Those are hot, salt, acrid.etc However, hot is specific taste of the Central of Vietnam When enjoying sea products

is impossible lack of this taste in meals South of Vietnam meals are almost sweet taste, regions although have different eating and drinking lines but in

meals always having rice and fish sauce

2.1.4/Impact of technology – technique

innovative inventions are good conditions for business and frozen food sectors to makes a reduction of cold storage costs, transportation costs

2.1.5/Matrix EFE

opportunities and threats mainly from external environment influenced to operation process of company Through that, they help company manager evaluate reflection level of company with opportunities, threats and give out considerations about external influence factors are convenient or

difficult for company

company:

Table 2.5: Matrix EFE of Anh Khai Ky Company

Comment: With total score self evaluation of Anh Khai Ky Company is 2.13

marks, company is reflecting averagely with opportunities and threats of

Density number Score

microscope environment Hence, company should have better strategy to cope so that it uses got opportunities and minimize passive influence of external threats

2.2/Microscope environment

2.2.1/Analysis of competitors

environment and shall confront with many opponents in and out of country

- In current financial crisis status, high inflation, high lending interest rate and floating exchange rate The economy has not have signal showing the stable development Food trading also suffers much pressure especially the selling price

distribution channels to supermarkets, especially CoopMart, Big C

 Group of frozen foods :

Company Limited (CP Company), Thien But Company, Nam Phong Company

 Thien But Company: is the most competitive opponent for Anh Khai

Ky Company Limited Year 2010 Thien But Company imported value

of buffalo meat from India was USD 3,000,000 (as per consideration of Anh Khai Ky Company Limited), this is also company included old members of Anh Khai Ky Company separated to establish company and to be as direct opponent for company For financial source can be evaluated Thien But company has potential nearly equal with Anh Khai Ky, but for administrative ability Thien But company is more better than Anh Khai Ky Company Limited

 Nam Phong Company: is trade name of Nam Phong processing

enterprise, fresh foods trading and processing of animal meat, poultry under Saigon Agricultural General Corporation Ability of price competition, due to having semi-handmade slaughter base with low processing expense, is supported of Saigon Agricultural General

Corporation and also member unit, the raw material relatively stable, but its product has not yet high quality, product was suspected in a time

to have borax, so its prestige is decreased

 Joint Stock Companies: Frozen products of Anh Khai Ky is met

with strong competition of Joint Stock Companies This is company with 100% foreign capital investment capital and its market presence in Vietnam over 10 years Business operations of Joint Stock Companies

is breeding food and aquatic product, pig and poultry cultivation, trading processing foods , fresh foods and slaughter poultry Fresh product from chicken and pork of Company is competitive directly with imported products of Anh Khai Ky Company Joint Stock Companies have competitive strategy of price, and source of material always abundant, supplying timely and enough quantity, at the same time to be supported by very much from CP Group Thailand are the strengths of Joint Stock Companies But the weakness of Joint Stock Companies is not on the provincial distribution

 Processing product (dried beef) :

opponents on the market for this item, Anh Khai Ky Company is related to average rank group due to quality and design of company is still much limited

 Tuyen Ky Company: is the most competitive unit with Anh Khai

Ky dried beef product Tuyen Ky Company was born in year 1948 and developed, existing up to now Tuyen Ky Company is present almost markets in domestic and in some foreign countries such as: Taiwan, Korea, Japan and Australia Technology is accumulated many aspects: generation to generation know-how, sum up from real trading produce and combined with specialists in the field of dried food produce Tuyen Ky Company competes very strong about cheap

The main competitor of the Company is Thien But Company in line of frozen

products and Tuyen Ky Company in line of dried beef products

Mark of importance

Table 2.6 : Competitive matrix - CPM

Comment : Competitive ability of three companies are all strong with the mark is

over 2.5 however, Charoen Porphand (CP) company is stronger than Anh Khai Ky

in fresh meat and Anh Khai Ky is stronger than Tuyen Ky

2.2.2/ Analysis of customer’s behavior

(VHLSS) 2008 conducted by General Statistics Office, quantity of meat consumption types average per capita/month entire country year 2008 got 1.38kg/person/month, reduced 0.51kg/person/month against inspection VHLSS year 2006 In which, quantity of meat consumption average per capita of urban area was 1.77 kg/person/month and rural area was 1.26 kg/person/month

- Ha Noi and Ho Chi Minh City are two biggest centers of meat average per capita consumption in the whole country Ha Noi year 2008 was 2.79kg/person/month, increased 0.05kg against with year 2006 Ho Chi Minh City year 2008 was 2.11 kg/person/month, reduced 0.22 kg against with year 2006

consumption for meat types average entire country to be 76,400 dong/person/month, increased 7.7% against with year 2008 and increased 19.3% against with year 2006

years 2007, 2008, 2009 (thousand dong/person/month )

56 58 60 62 64 66 68 70 72 74 76 78