PHân tích SWOT hoạt động kinh doanh của vinamilk ẹm

Introduction In order for Vietnam Dairy Products JSC Vinamilk Corporation to obtain daily sales and inventory reports from its retailers, this leading producer of dairy products in Vietn

PHÂN TÍCH SWOT HOẠT ĐỘNG KINH DOANH CỦA VINAMILK

1 Introduction

In order for Vietnam Dairy Products JSC (Vinamilk Corporation) to obtain daily sales and inventory reports from its retailers, this leading producer of dairy products

in Vietnam had to station one staff member permanently at each of the 260

distributors that it works with countrywide

2 The History

Significant events in our business are set out below:

1976: Our Company was founded under the name of Southern Coffee-Dairy

Company, a subsidiary of the General Food Directorate and had six factories in operation, namely Thong Nhat Dairy Factory, Truong Tho Dairy Factory, Dielac Factory, Bien Hoa Coffee Factory, Bich Chi Powder Factory and Lubico

1978: The management of our Company was transferred to the Ministry of Food

Industry and our Company was renamed United Enterprises of Milk Coffee Cookies and Candies I

1988: Introduced powdered milk and cereal with milk powder at the first time in

Vietnam

1991: Launched UHT milk and spoon yoghurt to Vietnam market

1992: The United Enterprises of Milk Coffee Cookies and Candies I was formally

renamed Vietnam Dairy Company and came under the direct management of the Ministry of Light Industry We started focusing on the manufacturing and processing

of dairy products

1994: Hanoi Dairy Factory was built in Hanoi as part of our Company’s expansion

and market development strategy to cater to the market in the northern region of Vietnam

1996: Binh Dinh Dairy Joint Venture Enterprise was founded as the result of our

joint venture with Dong Lanh Quy Nhon Joint Stock Company This joint venture enabled our Company to successfully gain access to the market in the middle region

of Vietnam

2000: Can Tho Dairy Factory, which is located in Tra Noc Industrial Zone, Can Tho

City was built to better meet the demands of consumers in the Mekong Delta In the same year, we set up the Logistics and Warehouse Enterprise located in 32 Dang Van

Bi St., Ho Chi Minh City

2003: Was formally converted into a joint stock company in December 2003 and

changed its name to Vietnam Dairy Products Joint Stock Company to reflect its change in status

2004: Acquired Saigon Milk Joint Stock Company Increased share capital to VND

1,590 billion

2005: Bought over our joint venture partner’s remaining shareholdings in Binh Dinh

Dairy Products Company Ltd (as Binh Dinh Dairy Factory was then known) and inaugurated Nghe An Dairy Factory, located in Cua Lo Industrial Zone, Nghe An province, on 30 June 2005

* Entered into a joint venture agreement with SABMiller Asia B.V and established SABMiller Vietnam Joint Venture Company Ltd in August 2005 Our first joint venture product, Zorok, was also launched in the first half of 2007

2006: Vinamilk was listed on the HOSE on 19 January 2006 with the SCIC holding

approximately 50.01% of our Company’s shareholdings

* Opened An Khang Clinic in Ho Chi Minh City in June 2006 This is the first clinic

in Vietnam managed by a sophisticated electronic management system The clinic offers a diverse range of services such as nutritional consulting, gynecology testing, pediatrics consulting and health screening

* Commenced our dairy cow farms program with the acquisition of Tuyen Quang dairy farm, a small scale farm with 1,400 heads of cows in November 2006 The Tuyen Quang dairy farm was operational at the time of acquisition

2007: Acquired a 55% interest in Lam Son Milk Company Ltd in September 2007,

located in Le Mon Industrial Zone, Thanh Hoa province

3 Core Mission and Values

VISION

Vinamilk will be the fastest and sustainable growing healthy dairy and food

company by building a long-term competitive advantaged product portfolio across the scale

MISSION

Vinamilk continues to expand its existing geographical coverage and product

portfolios to maintain its sustainably dominant position in the local market and maximizing its shareholder value

Vinamilk wish to be the most favourite product in all areas, territories Therefore, we meditate that quality and creation is the companion of Vinamilk Vinamilk considers customers our focus and commit to meet all demands of customers

Vietnam Dairy Products Joint Stock Company’s quality policy

Always satisfy customers with high-quality, safe, and diverse products, the best service and competitive prices

4 Organisational Structure

5 Products

Yoghurt Drinking Yoghurt Fermented Yoghurt Ice-Cream

Cheese Milk powder for elders

Milk powder for babies Ridielac Cereal powder for kids

Fruit juice Smoothie Atiso Tea Vfresh Aloe Vera Condensed Milk Longevity

Southern Star

6 External Analysis

Headquartered in Ho Chi Minh City, Vietnam, Vinamilk only had an enter-prise resource planning (ERP) system that managed the data and process flow between the company and its distributors “We did not have a system that tracked and

managed the data that was ex-changed between our distributors and the 90,000 retailers that they distribute our products to,” says Tran Nguyen Son, IT director at Vinamilk “Our staff had to manually collect data and collate it in Microsoft Excel spreadsheets every day As a result, the information would sometimes be inaccurate Our staff also spent a long time consolidating the data.”

Staying on Top of the Game

Vinamilk has 4,000 employees and one of the largest portfolios of dairy products in the country Its offerings range from core dairy products, like liquid and milk

powder, to value-added dairy products, such as condensed milk, yogurt, ice cream, and cheese Voted by consumers as the number-one brand in the “Top Ten High-Quality Vietnamese Goods” survey every year since 1995, Vinamilk decided in 2006 that it needed to address this inefficiency before it affected the company’s leadership position in the long run This prompted the company to implement the SAP®

Customer Relationship Management (SAP CRM) application and the SAP

NetWeaver® Business Warehouse component and integrate them with its existing ERP and distribu-tion management systems The SAP NetWeaver Process

Integration technology was also included in this system upgrade exercise “The goal

of this SAP project was to increase the visibility of sales information from our retailers, as well as lever-age the information to better under-stand our customers’ needs We also wanted to increase the effectiveness of our trade promotions

program,” adds Tran “More important, we wanted to reduce operations cost.”

Immediate Savings

After evaluating the SAP offerings, Vinamilk selected them because of their rich CRM functionality and powerful integration capability “We com-pared SAP

software with what was available in the market, and the SAP solutions were best suited for our needs,” says Tran The implementation took 10 months to complete for 70 users at Vinamilk The integrated system went live in June 2007 and, with this, ended the inefficient and costly process of gathering secondary sales data

“There is no need for us to dedicate 150 staff members just to sit at our dis-tributors’ offices to do the menial task of collecting information Imagine the savings there,” says Tran

Enhancing Control and Visibility

With the CRM feature and a tighter integration of Vinamilk’s key business

functions, distributors are able to consolidate secondary sales data into their systems and send the information directly across to Vinamilk’s headquarters without human intervention When the information reaches Vinamilk, it is automatically

synchronized with the company’s ERP system This information from the

distributors is sent three times daily, giving Vinamilk enhanced visibility of its sales performance and greater control of its sales channels “The SAP solution has

improved business transparency across our enterprise It allows us to easily track and monitor our sales performance closely, and data integrity is ensured as well,” adds Tran

7 Industrial Analysis

Improving Effectiveness of Trade Promotions Previously, Vinamilk also faced challenges in executing its trade promo-tions scheme Trade promotions are

temporary price cuts that manufacturers typically offer retailers to encourage them to reduce retail prices For Vinamilk’s trade promotions program, distributors will

undertake the trade promotions that the company gives to its retailers Vinamilk will then pay its distributors for the price difference at the end of the month The amount

it pays will be based on documents sub-mitted by distributors at every month’s end

“Before the SAP solution was in place, the information that we received was not 100% accurate This affected payment processing and resulted in payment delays,” explains Tran “But things are different now With improved visibility of our sales performance, we are able to better control our product prices and the discounts that

we give Every sale that our distributors push through under trade promotions is also recorded in a centralized system This allows us to pay our distributors on time,” he adds

Empowering the Sales Force

The SAP CRM application and SAP NetWeaver Business Warehouse component

have empowered Vinamilk’s sales force too, giving them a clearer picture of their retailer’s sales performance and stock position “Our sales force people carry with them a personal digital assistant that contains data that is synchronized with our central enterprise system With this, they are able to better engage our retailers and drive sales,” says Tran “Vinamilk operates in a very tough and highly competitive environment We have to manage our margins very care-fully, and we must do all that we can to drive revenue and reduce cost The SAP solutions that we have

implemented will help us achieve our business goals and enhance our competitive edge.”

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8 Internal Analysis

SWOT Matrix

• In business since 1976

MD has xx years of experience in

the industry and as head of the

company

• Sales and profits have grown

steadily

• Sales and profits were $xx million

and $y00,000 in 2007

• MD responds personally to all

customer complaints

 Junior Manager has no experience or education for his position of Sales

Manager

 Marketing assistant has little marketing experience

 MD says that he is not a good executive

 Employees feel free to complain directly to MD

 MD can’t find a good General Manager

• MD wants to get involved in

marketing

• “We run a tight ship”, MD

• “We have an excellent reputation

for quality,” MD

• “Manufactured Products,”

“Modifications” and “Repairs”

have Gross Profit margins greater

than 50%

at the salary he wants to pay

 Company is having trouble selling Derf1 (its new product)

 MD is worried about converting 5,000 Derf1 into cash

 Stock held increased too much during recent months with resulting interest cost

of $4,000 a month

• “The opportunities (for growth)

are there,” MD

• Professional help is available for

designing new products

• Reliable manufacturers are

available for producing new

products

• There is a market for 1500 Derf1

at $45 a unit

• MD can’t break the habit of

getting involved in everything

• The sales compensation system

• a) Pays out too much money

• b) Is too complicated

• c) Does not motivate sales reps to

sell Derf1

• Sales reps do not present Derf1

• Many of their industrial customers are going elsewhere for the controls

• The $50,000 Derf1 designer did not

do a good job

• There was a business recession

• What is your competition doing that you should be worried about

• Are the required specifications for your job, products or services changing

• Is changing technology threatening your position\

• Do you have bad debt or cash-flow problems

• Could any of your weaknesses seriously threaten your business

• Political effects

• Legislative effects

because they do not know it well

• Derf1 is priced higher than

competing products

• The company does not appear to

have historical trend data

• They spent $192,000 advertising

Derf1 and they have trouble

selling it

• There is a conflict between Sales

manager and Marketing manager

regarding pricing policy on Derf1

• Environmental effects

• IT developments

• Competitor intentions – various

The end