Introduction: In 1993, Kinh Do Food Processing and Construction Co., Ltd was established in Binh Duong province, it launched Snack cake production line.. In 1999, the Company invested in
Trang 1Chapter 4: Part 2- Strategy formulation and implementation
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ASSIGNMENT 1:
Identify the types of corporate-level strategies that Kinh Do Company has implemented
sin the process of developing business activities in each period.
Introduction: In 1993, Kinh Do Food Processing and Construction Co., Ltd was established in Binh Duong province, it launched Snack cake production line
1 In 1996, the Company invested in building a new factory of a cookie production line in Thu Duc District- Ho Chi Minh City
Horizontal concentration growth strategy
2 In 1997 & 1998, the Company continued to invest in an industrial line of bread and cake production equipment At the end of 1998, Chocolate production line was put into operation
Concentration growth strategy
3 In 1999, the Company invested in building Savico - Kinh Do Trading Center - Ho Chi Minh City and build Kinh Do Bakery system - the direct sales channel of the Company
Forward Vertical integration growth strategy
4 In 2000, Kinh Do Company continued to expand its factory and invested in a production line of Cracker Savory Cake
Horizontal integration growth strategy
5 In 2001, Kinh Do began to promote exports to the United States, France, Canada, Germany, Taiwan, Singapore, Japan and established North Kinh Do Food Processing Joint Stock Company
Concentration growth strategy
6 In 2003, Kinh Do acquired Unilever's Wall’s ice cream factory (the market share of Walls ice cream at that time was 50%)
Related diversification growth strategy
7 In 2005, Kinh Do bought Tribeco's shares in order to make good use of TRI's distribution system as well as support TRI to develop more effectively through KDC's distribution system
By 2008, Tribeco 's equity was negative 5.32 billion dong, a loss of 145 billion dong Tribeco's stock went downhill and Kinh Do was forced to withdraw from Tribeco in 2012
Retrenchment renewal strategy
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8 In 2007, Kinh Do and Nutifood allied together to contribute capital to invest outside the industry, real estate, the both of companies did not launch any common products in the traditional industry
By the end of 2008, according to Nutifood's financial report, the company's loss was about VND 150 billion, approximately the charter capital After 5 years of capital contribution to Nutifood, KDC divested from Nutifood
Horizontal integration growth strategy
9 In 2008, Kinh Do merged with Vinabico which the company is leading the market of fresh cake and candy
Horizontal integration growth strategy
10 In 2013, Kinh Do bought a stake in Saigon Ve Wong Company, originating from Taipei and occupying about 5% of Vietnam's noodle market with A-One brand
Related diversification growth strategy
11 In 2014, KDC announced that it would hold 24% of the shares of Vocarimex, Vietnam Vegetable Oils Industry Corporation (Vocarimex), which owns 2 enterprises with a large market share of Tuong An Company (trademark Tuong An) and Tan Binh (Nakydaco brand)
Related diversification growth strategy
12 July 15, 2015- Kinh Do JSC transferred 80% of confectionery segment to foreign investor Mondelez (USA), Kinh Do Joint Stock Company only owns 20% of Kinh Do Binh Duong Joint Stock Company
Related diversification growth strategy
13 In 2015, Kinh Do also invested in Dong A Bank, Kinh Do spent VND 1,000 billion to buy
100 million Dong A Bank shares at par value
Unrelated diversification growth strategy
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