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Coffee is a very good substitute for coffee, but competitors are all weak nutritional value => There are lots of competitors who drink coffee in the age of Starbucks, but they are all weak nutritional value => There are lots of competitors who drink coffee in the age of Starbucks, but they are all weak nutritional value => There are lots of competitors who drink coffee in the age of Starbucks, but they are all weak nutritional value => There are lots of competitors who drink coffee in the age of Starbucks, but

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 30 August, 2019 DateReceived1stsubmission
Re-submissionDate DateReceived2ndsubmission
Student Name Nguyen Thi Thu Trang Student ID GBH18737
Class GBH0803.1 Assessor name Nguyen Thu Trang
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making a false declaration is a form of malpractice.
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Table of Contents
Company Profile ........................................................................................................................... 4
Competitive Environment ..................................................................................................................... 6
Threat of Substitute ......................................................................................................................................... 7
Industry Rivalry (current competition) ............................................................................................................. 8
Power of Buyer .............................................................................................................................................. 10
Power of Supplier .......................................................................................................................................... 10
Threat of Entry (Potential Competitor) ........................................................................................................... 11
PESTLE ................................................................................................................................................ 11
Political .......................................................................................................................................................... 11
Economic ....................................................................................................................................................... 13
Social Class .................................................................................................................................................... 17
Technological Advance .................................................................................................................................. 18
Legal .............................................................................................................................................................. 19
Environment .................................................................................................................................................. 19
Strengths and Weakness ..................................................................................................................... 20
Business Decision ................................................................................................................................ 22
TOWS Matrix ................................................................................................................................................. 24
Conclusion .......................................................................................................................................... 25
Bibliography ....................................................................................................................................... 26

Company Profile
Company Name Saigon Beer-Alcohol-Beverage Joint Stock Corporation
Stock Code SAB
Address 5th Floor, Vincom Center Building, 72 Le Thanh Ton,
Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Establishment 1875
Legal
Representative Koh Poh Tiong – Chairman of the Board of Directors
Tel No ([phone] - 3829 4083 - 3829 6342
Fax No ([phone]
Email [e-mail]
Website http://www.sabeco.com.vn/en-US/home
Headquarter 187 Nguyen Chi Thanh, Ward 12, District 5, Ho Chi
Minh City, Vietnam

Beer is an indispensable drink in parties, meetings, chatting with family and friends of Vietnamese people.
Based on this, Sabeco has focused on developing beer products mainly. The revenue of selling beer of
Sabeco in 2018 is 30,790,775,222,873 VND, increasing by 3.2% compared to 2017 and it accounts for about
85.7% of the total revenue of the company (Sabeco, 2019). Sabeco was born in 1875 with the strong
development of the national economy, Sabeco has become a leading group in the beer industry in Vietnam
with famous brands such as 333, Saigon Lager, Saigon Special ... (Sabeco, 2019). Although there is a strong
foothold in the domestic beer market (43% market share of beer consumption in Vietnam market 2018),
the competitor has come from inside and outside the country, especially strong and fierce competition of
big players like Heineken and Tiger ... make Sabeco very pressure (Khang, 2019).
The following report highlights the positive and negative effects of the macro environment on Sabeco's
business. Besides, it also mentions the strengths and weaknesses within Sabeco and each of their links to
external macro factors.

Macro Environment includes Competitive environment and PESTLE
Competitive Environment
• There are several
barriers to entry or
exit
ð Quite low
Barriers to
Entry/Exit
Current Competitor
• Target customers fall
in the age range of
25-50
=> lots of potential
customers
=> weak
Customer's Power
• The main materials
are imported from
many countries in
Europe, Australia and
America.

Threat of Substitute
No Product Price
(VND) Characteristic Competitive Advantage
1 Saigon Special
beer 15.000
Glass bottle (green)
330ml
100% Malt
Alcohol : 4.9%
Concentration
Perennial beer brand
Combine during meals
Good price
2 CAFFÈ
AMERICANO 65.000
Paper/Plastic cup
473ml
Caffeine 225mg
Alcohol : 0%
concentration
Global coffee brand
Separate flavors
Customer Service
3 Iced tea 3.000
Glass cup
330ml
Tea
Alcohol : 0%
concentration
Cheap price
Appear everywhere

refreshed. Especially in the summer and after work, choosing iced tea is better than carbonated soft drinks.
Beer made from barley, cereals, malt, houblon, beer yeast - ingredients rich in energy, vitamins and other
minerals, it also has very high nutritional content (Sabeco, 2019). However, all of these 3 types, if used
incorrectly, will affect health. Both beer, coffee, and iced tea can be taken anytime we want but especially
Beer can be used in combination with food, no one has eaten rice and coffee or iced tea, but sometimes
in meals, family members together to drink beer beer is very conspicuous. From here, it can be seen that
the competitive pressure of substitutes is mainly the ability to meet demand compared to products in the
industry in addition to the factors of price, culture and technology also affect the threat of replacement
products.
ð Opportunity: Other products are hard to replace the position of beer products.
Industry Rivalry (current competition)
No Product Price
(VND) Characteristic Market Growth Competitive
Advantage
1
Saigon
Special
(Sabeco)
15.000
Glass bottle
330ml
100% malt
The total revenue
2017 increases 11%
compared to 2016
A pioneer beer brand
in Vietnam market
Some products are
made from 100% malt
without rice
Reasonable price, rich
taste
2 Heineken
(Heineken) 19.000
Glass bottle
250ml
A-yeast
The total revenue
2017 increases 5,3%
compared to 2016
High-end segment
A-yeast

In the current beer market, Sabeco is facing two competitors, Habeco and Heineken. According to the
annual report of companies in 2018, the market share of the beer industry in Vietnam of Sabeco, Habeco,
Heineken is 45%, 15% and 25% + respectively (Khang, 2019) . Habeco's key product line is Hanoi beer. This
is a product that accounts for 70% of HABECO's products (Habeco, 2019). The product is contained in glass
bottles (brown yellow) with a capacity of 450ml, alcohol content of 4.4% and has a selling price ranging
from 7,500 - 9,500 VND for 1 bottle. The reason for the bottled beer in Hanoi has a strong position in the
markets of the provinces and cities in the North is because of the attractive bright yellow beer color,
durable foam, smooth white, harmonious bitter taste, and aftertaste deposition. With Heineken, the
mainstream product line is also bottled beer. The packaging design is a blue glass bottle with a capacity of
250ml, Heineken's alcohol content is 5.0% (Heineken, 2019). The main ingredients for beer production of
all three companies are water, malt, houblon, but Heineken is more special because it uses A-yeast -
characteristic yeast, creating the brand of Heineken. Heineken locates its products in the high-end - high-
end segment, so the retail price for 1 Heineken beer bottle of 250ml capacity falls between VND 13,950 -
14,160 per bottle depending on the supplier. If Heineken has a special A-yeast material, the main product
line of Sabeco Saigon Special is no less competitive when it is produced 100% from malt (without rice). The
design of Saigon Special is also extremely eye-catching when the bottle is made of green glass, combined
with Sabeco's label designed specifically for this product line. The capacity of 1 bottle is 330ml with an
alcohol content of 4.9%. Sabeco positioned the product in the high-end mid-range segment with the selling
price falling around VND 15,000-17,000. With the strong distribution ability and the "bear play" of
marketing and social charity activities, Sabeco helps create a beautiful image in the eyes of the public.
Special product line with specially designed dwarf bottle shape has been built by Sabeco for TVC with the
slogan "Although you are not high, everyone must look up" (Thắng, 2018). That slogan has become Viral
for a long time, and it has brought great recognition to Sabeco as well as its Saigon beer product. Besides,
Sabeco is the brewer with the highest total capacity, reaching 1.8 billion liters of beer / year with 23
breweries spread across the country. With the coverage of factories in both North, Central and South,

Power of Buyer
Sabeco's target customers are about 25-50 years old regardless of male and female (who like to indulge in
drink) and this is also the age group that accounts for the majority of our country's population (about over
50% equivalent to about 48,787,097 Vietnamese people) in addition. The foreign market is also the market
invested by Sabeco. As pioneers in the beer market of Vietnam, Beer of Sabeco has appeared since 1875,
so when it comes to Sabeco, people still feel a little taste of the tradition, the taste of the nation. Customers
choose Sabeco because of the bold and unique flavor that Special brings. However, there are many other
beer products on the market from domestic to import. Drinking beer is related to taste, sometimes
consumers want to change their taste, want something new, and the beer market has too many choices
for them to fully meet price to quality. So the transition to another brand is not too difficult. And beer is
not a product that is too necessary in life, so they can absolutely not use it. In the beer market, power of
buyer is quite high.
ð Threat: the buyer of Sabeco is easy to change into the other brand.
Power of Supplier
Sabeco is known as a corporation that focuses on quality investment. In order to ensure the highest quality
of raw materials, as well as to take initiative in supplying sufficient and timely raw materials for production
and business activities, Sabeco has diversified the supply of raw materials, positively looking for and
cooperating with capable and reputable suppliers at home and abroad. The main ingredients in beer
production process are malt (barley seeds), houblon flowers, enzymes imported from countries in Europe,
Australia and America. Since raw materials account for a large proportion in the cost structure of products,
the change in raw material prices will directly affect the cost and profit of the corporation. The malt barley
market in Vietnam may be rare, there are not many suppliers but the world malt output in 2010 reached
123.54 million tons (VIRAC, 2017). So to find a good quality malt supplier with good price is not too difficult
for Sabeco. Currently Sabeco is importing malt from countries such as China, France, Germany, Australia.

Threat of Entry (Potential Competitor)
Besides Sabeco, there are currently many breweries such as Habeco, Heineken, ... and other small
companies that also produce beer still exist on the market. There are many substitutes for beer such as
tea, coffee, wine, ... and the possibility of substitution is also very high. Especially, the prices of products
are often unlisted, vary depending on the seller, who provide the product directly to consumers. For
example, Saigon Special cans, the price for a carton with 24 cans of 330ml here and .com is VND 337,000;
at Lazada is VND 120,000 and at LOTTE.vn is VND 297,600. So the market structure of Sabeco is
Monopolistic Competition. Beer is an alcoholic beverage, so when Sabeco wants to introduce the beer
market to Vietnam, there are some legal and food safety barriers to the beer production process.
Vietnamese law has a circular 53/2014 / TT-BCT stipulating conditions for ensuring food safety for beer
production and trading establishments (Thoa, 2014); Circular QCVN 6-3: 2010 / BYT - National technical
regulation on alcoholic beverages (FSI, 2010). The beer market in Vietnam has a large consumption
capacity, an exponential growth rate so a lot of foreign investors want to enter the market, businesses
want to invest capital to participate in the beer market share. Vietnam is not too difficult. Businesses that
want to get out of the market also have some barriers. The initial investment and separate technological
lines of the business will be lost. Enterprises also have to compensate labor contracts for employees. In
general, the barriers are not too tight and not too big, so the beer market currently has a lot of members
and in the future there will be many new members who will enter this potential market.
ð Threat: the low barrier to entry or exit makes Sabeco having a lots competitors
PESTLE
Political
A country's politics has a lot to do with its business. Sabeco is currently developing most strongly in

was honored to welcome many heads of state from the US, Korea, Cuba, ...; was chosen to host the US-
Korea summit. The tenure of the heads of state is also very stable about 5 years for 1 term.
Vietnam currently has 3 very strong exclusive economic zones: Van Don (Quang Ninh); Bac Van Phong
(Khanh Hoa); and Phu Quoc (Kien Giang). Enterprises here will enjoy 10% tax rate for a period of 30 years,
4 years tax exemption and 50% reduction of payable tax amount for 9 subsequent years from the time of
taxable income. Particularly for income from real estate investment and business projects, the preferential
tax rate of 17% will apply (Sơn, 2017). So if Sabeco develops in these areas, it will be greatly supported by
the government and the state, the opportunity for Sabeco to expand its market. Since January 11, 2007,
Vietnam has officially become the 150th member of the World Trade Organization (WTO) (Dantri, 2007).
This is a major turning point in the process of integration with the international economy. Increased role
in the international arena of Vietnam is a good premise, creating favorable conditions for Vietnamese
enterprises to boost exports, including Sabeco Company. At the same time, it also brings Sabeco company
great challenges when competing with similar products of foreign companies imported into Vietnam.
Economic development policy: Our country is in the process of industrialization and modernization, so the
State creates favorable conditions, policies, and preferential tax system to encourage businesses.
Annually, the government spends a considerable amount of money on building infrastructure, bridges,
roads and auxiliary works that indirectly affect the business operation of the company. Besides, our
country has exchanged relations with many countries
In the world, it is convenient for us to export and find partners to develop markets abroad. As an enterprise
operating in the form of a joint stock company and listed on the Saigon Stock Exchange, the operation of
Sabeco is influenced by the legal documents on joint stock companies, securities and The stock market
includes the Enterprise Law, the Securities Law, its by-laws and regulations for listed companies. Laws and
sub-laws in this area are in the process of being completed, changes in policies can always occur and at
that time more or less affect the management and business activities of the Company. This afternoon,

increase by 1.32% and 4.04%, respectively by 2035. The total import turnover may also increase by 3.8%
lower than the export growth rate, so the overall impact on the trade balance is favorable. The
commitments in CPTPP on services and investment are expected to have a positive effect on improving
the investment environment, contributing to attract foreign investment capital. Thanks to this joining
together with the growth of the business, Sabeco has been getting more and more support and assistance
from foreign capital.
Sabeco is a multinational company, so the relationship between Vietnam and other countries greatly
affects Sabeco's business activities. Russia and Japan are the two Sabeco countries that are distributing
their products (Sabeco, 2019). Therefore, the relationship between Vietnam and these two countries
greatly affects Sabeco's business activities. Russia and Japan are two big beer consumption markets in the
world. In 2017, Russia consumed 7.4 billion liters equivalent to 3.9% of world output, Japan output reached
5.2 billion liters accounting for 2.7% of world output (Chi, 2018). For the development of the beer industry,
this is an ideal environment for learning and development. Besides, Japan is a strict country in terms of
food safety so Sabeco will have to raise and pay more attention on this issue. Russia reduces taxes on
products coming from Vietnam so that Sabeco can reduce large amounts of tax from the Russian market.
Entering foreign markets helps Sabeco learn more and adapt to the rigorous product evaluation standards,
so the quality of products is increasingly improved. Entering into a foreign market is a way to help
businesses expand their brand.
ð Opportunity: Sabeco has the opportunity to reach the world market, the import-export tax rates
among member countries are also reduced.
Economic
Vietnam's inflation rates in 2017 and 2018 were 3.53% and 3.54%, respectively (Vũ, 2018). In 2018, it
increased by only 0.01% compared to 2018, which is a good sign for Vietnam market, but these are still

growth in Vietnam averaged 6.28 percent from 2000 to 2018, reaching an all-time high of 8.46 percent in
the fourth quarter of 2007 and a record low of 3.14 percent. in the first quarter of 2009. GDP affects the
needs of households, businesses and the state. This will directly influence consumption decisions. From
there, all management activities of Sabeco will have to rely on GDP and the actual situation to make plans
for Sabeco.
According to News No. 20, in the fourth quarter of 2018, the whole country had 1,062 million people of
working age unemployed, down 7.6 thousand people compared to the third quarter of 2018 and sharply
decreased 8.81 thousand people compared to the fourth quarter / 2017 (Ánh, 2019). The unemployment
rate of working-age laborers decreased slightly, to 2.17%. Unemployment directly affects the income and
life of workers. Therefore, the life of workers and their families will be difficult, leading to a decrease in
beer consumption.
7.2 billion USD, Vietnam's record trade surplus in 2018 from the General Statistics Office came at the end
of 2018. The newly released figure of the General Department of Customs is 6.8 billion USD, although it is
low. a little more than the beginning, is an important result for Vietnam's economy in the context of our
country has just experienced a prolonged trade deficit. The sharp increase in exports contributed greatly
to GDP growth of 7.08% in 2018 (Hoài, 2018). At the same time, the positive impact spread to all other
indicators such as the contribution of large foreign currency sources, helping foreign reserves. regret.
Vietnam increased to the highest level after many years. A trade surplus as well as a reduction in the trade
deficit is often thought to be a favorable condition for the value of the local currency to increase. For
example, the trade balance between Vietnam and the US is about 30 billion USD deficit, which is beneficial
for Vietnam. However, nothing to worry about, the consumption of many goods from the US is not
harmful, even Vietnamese people benefit from the opportunity to access good products. than. Americans
bring goods to sell to Vietnamese people, then they collect a large amount of VND, what will they do? They
cannot use that VND in the US, so they will invest back in Vietnam, thereby creating more jobs for

goods, increasing unemployment, or even protection, which can lead to a break in the relationship
between the two countries.
In the context of the current economy, Vietnam's public debt has reached an alarming level and tends to
continue to rise. It can be said that this is the most noticeable issue recently. According to the Ministry of
Finance's report, Vietnam's public debt reached 61% of gross domestic product (GDP) as of September
2016 and this figure increased to approximately 65% in 2017-2018. According to experts, the Government
must pay 14% of the total government debt and government guaranteed debt annually. Vietnam is
struggling to borrow for development and because of its inefficient use, it has become one of the countries
with the fastest increase in public debt. But if you do not continue to borrow, there is no capital for
development and to repay the debt. It is predicted that in the coming time, Vietnam needs to mobilize US
$ 39.5 billion to invest in development by 2020. The growth rate of public debt will increase 3 times higher
than GDP growth rate. Every 3 months, Vietnam pays public debt including principal and interest with the
amount of about 25 trillion dong, approximately 1 billion US dollars. Public debt is directly affecting the
lives of the people in the country in all aspects: economy, health, education, social welfare ... The
consequences of high public debt are rising inflation; The currency depreciated and unemployment
increased, the economy was underdeveloped. When facing difficulties, the State will print more money to
stabilize part of its spending. This leads to an increase in the amount of money in circulation and the
depreciation of the currency. The tax increase is sooner or later because the State's income depends
largely on tax revenues. This has a direct impact on people's lives, when the public debt ratio increases,
the Government issues Government bonds, Government shares and savings among the people decreases.
When the debt is too big, the Government is forced to raise taxes to pay the debt, causing social losses.
This creates a vicious circle that cannot escape.
According to the outlook report 2018 of Vietcombank Securities Company (VCBS), although there were
certain fluctuations at the beginning of the year, 2017 was considered the year that the foreign exchange

Sabeco. Now, if the exchange rate increases, the price of raw materials will increase, which may affect the
economic forecast of the enterprise. But this will be extremely beneficial for the export of beer products
to foreign markets. In general, exchange rate fluctuations will affect in the direction of exports and
inversely to Import.
In the context of the world's economic and political situation in 2018 with many unpredictable challenges
and fluctuations, the State Bank took the initiative and flexibly operated monetary policy, closely
coordinating with fiscal policy. and other macroeconomic policies to stabilize the macro economy, control
inflation and support growth at a reasonable level, thereby achieving positive results. Average inflation in
2019 continued to be controlled in line with the target of 4% (Dương, 2018). Interest rates were kept
relatively stable to create conditions for securing capital for production and business, supporting economic
growth. In the foreign exchange market, despite a lot of pressure from the international market, the
domestic exchange rate is still relatively stable, especially when compared to the devaluation of emerging
and developing currencies. The liquidity of the market was still ensured, the transactions of foreign
currencies were smooth, the demand for legal buying of foreign currencies was fully and promptly met
and the State Bank net bought foreign currencies and added foreign exchange reserves. Government. The
administration of monetary policy has also ensured stable monetary market liquidity, reduced interbank
interest rates, facilitated the issuance of government bonds with longer maturities and lower interest
rates. In coordinating the control of inflation through the Price Steering Committee, the State Bank of
Vietnam has coordinated monetary policy instruments to control the average of stable inflation at a low
level (2016: 1.83 %; 2017: 1.41%; 2018: 1.48%) (Độ, 2018), creating room for adjusting the prices of goods
managed by the State, ensuring general inflation control in accordance with the target. The interest rate
in 2018 was 8.91%, increasing by 0.05% compared to 8.86% in 2017 (Loan, 2018). Increased interest rate
means that investment for Sabeco becomes more difficult. High interest rates will make the payback
period, the time to make a profit longer.

Social Class
According to a recent World Bank report, 70% of the Vietnamese people are economically secure, of which
13% belong to the world-class middle class. Deputy Prime Minister Vuong Dinh Hue said that the result of
poverty reduction is not really sustainable, the rate of poor households is still high. For every one hundred
households out of poverty, there are about 18 new poor households arising, the rate of arising poor
households is 17.8%. By the end of 2018, the proportion of poor ethnic minority households accounted
for over 55% of the total number of poor households nationwide, the average income of ethnic minority
households is only two-fifths of the national average income. The gap between rich and poor is also very
clear, with one year income of 210 super-rich people in Vietnam is enough to lift 3.2 million people out of
poverty and end extreme poverty across the country (Quyên, 2018).
The age structure of Vietnam is concentrated in the age group of 15-64, accounting for 69.3% of the total
population. In this age group, the ratio of men to women is 1:1. The idea of using products that Sabeco
aims to be about 25-50 years old and mostly men. The current population structure is a good stepping
stone to help Sabeco develop and expand its brand (danso, 2019).
(danso, 2019)

(danso, 2019)
In 2017, Vietnam had a total beer consumption of 4 billion liters, accounting for 2.1% of global beer output,
ranking 10th in the world and 3rd in Asia. The Vietnamese drink it for pleasure, not necessarily for any
special occasion. After stressful working hours, they drink beer to relieve stress but also with beer they
can negotiate big projects on the drinking table. Beer also appears at family meals, adding a touch of spice.
ð Oppportunity: Sabeco has a lot of potential customer.
Technological Advance
Previously, the company's machinery and equipment were mostly outdated and low in capacity. When the
company turned to beer production, it was obvious that the market of consumers was higher and higher,
the production equipment had to be modern to keep pace with the development of the market and better
meet the trend. The competition is increasingly fierce. Therefore, the company has invested in installing a
modern line to meet production needs. Although there are some machinery and equipment manufactured
by Vietnam, the quality is not inferior to that of imported equipment, which has low installation costs.
Some machinery and equipment in Vietnam have not been manufactured yet, so the company has to
import from foreign countries. The company has imported a number of machinery and equipment with
production origin in Asian countries such as China, Taiwan, and Japan with reasonable prices but the
quality still meets the production requirements. This modern technology, equipment is greatly improving
Sabeco's production capacity but the quality of Sabeco's beer characteristics is still kept intact (Tú, 2016).

Legal
To be operated and developed in Vietnam or anothers market, Sabeco must follow the laws of that area.
There are a number of legal documents affecting Sabeco's business activities:
o QCVN 6-3: 2010/BYT: National technical regulation for alcoholic beverages
o Decree 108/2015 / ND-CP: excise tax law
o Decree No. 53/2014 / TT-BCT: regulating conditions to ensure food safety for beer producing and
trading establishments.
Beer is an alcoholic product. The National Assembly has issued Decree No. 44/2019 / QH14 on the law
against alcohol harm, so it can be seen that beer is a product that goverment wants to reduce
consumption. Brewing beer should ensure about the allowed alcohol content, which customers use. The
legislation surrounding brewing is actually very strict. From 2018, the tax rate for this product will increase
to 65%.
ð Threat: Increasing tax make Sabeco’s profit decreas.
Environment
Vietnam is located at the gateway of Southeast Asia with a tropical monsoon climate and natural
incentives. With the long coastline adjacent to the East Sea, the trade between countries is very
convenient, attracting investment attention from abroad. Geological characteristics are quite stable but
often suffer from natural disasters such as storms and floods, causing serious damage not only to
manufacturing companies in particular, but also to the people - customers of industry. Vietnam climate is
tropical, so the demand for beer is very large. According to statistics, every summer, millions of liters of
beer are consumed. The main raw material for beer production is Malt but our weather is not suitable for
growing Malt so Sabeco has to depend on foreign supply and exchange rates. Besides, although the water
resource for production is abundant due to the dense river system, the water pollution in our country is

Strengths and Weakness
Strengths Weakness
Core value, mission
or vision
Vision: “DEVELOP SABECO TO BECOME THE
LEADING BEVERAGE GROUP IN VIETNAM,
HAVING FIRM FOOTHOLD IN REGIONAL AND
INTERNATIONAL MARKETS” (Sabeco, 2019)
Core Value:” HERITAGE BRAND; CONTINUOUS
IMPROVEMENT; COHERENCE; COOPERATION
FOR DEVELOPMENT; SOCIAL RESPONSIBILITY”
(Sabeco, 2019)
ð always towards development
Brand name or
brand equity
Sabeco is the famous brand in the beer
Vietnam market
Sabeco is ranked fourth in the top 40 most
valuable company brands in Vietnam. That
value has now reached 393 million US dollars
(Forbes, 2018).
Organizational
Structure
The organizational structure of Sabeco is
Fuctional Structure (Sabeco, 2019).
It is economical and effective, because:
• Employees are grouped according to
departments, with the opportunity
to deepen their skills, which makes
them work as specialized, leading to
high productivity.
• There is a sporadic
situation because FS only
cares about the
department he manages.
Easy to lose alignment.
• Communication between
departments is difficult,
which reduces creativity

• Reducing communication channels,
as staff only need to report to FM.
• No overlapping work. Each employee
has only 1 boss, 1 job.
• Employees are loyal and feel safe
doing just one job.
• Communication is appreciated.
departments is extremely
poor.
• Staff with poor
knowledge of what
happens outside of their
departments work.
• When Sabeco wants to
expand the market to
expand its products
further, this structure will
be very difficult to
manage well.
Human Resources
7.877 is the total labor of Sabeco (Sabeco,
2019)
ð Sabeco is bigger than Habeco (745
employee)
Employee graduated university and higher
acounts for more than 85% (Sabeco, 2019)
ð The education level of the staff is
high and the staff is high
The qualification and the skill
about technology is not high
• The total assets are 22,367 billion
VND; the owner equity is 16,112
billion VND and the total liabilities
are 6,255 billion VND (Sabeco, 2019).
Sabeco lost of 154 billion VND
because of OCB stock prices
falling

times than Habeco 86.500 VND
(VNDirect, 2019)
Marketing
Resources
In the first 6 months of 2017, Sabeco spent
790 billion dong for advertising, marketing,
product support and accumulated 6 months,
Sabeco saw 15.779 billion dong, up 7 % (Mỹ,
2017)
Physical Assets
• Sabeco has 4.567.091.079.194 VND
fix asset (Sabeco, 2019). It’s larger
than Habeco – current competitor
• Sabeco has 25 factory systems in
Vietnam
Technology based
• Sabeco has been applying 4.0
technology to its production line,
gradually replacing and replacing it
with automation lines.
• The fund for science and technology
development of Sabeco is VND
83,998,130,130 (Sabeco, 2019)
There are some old, out of date
machines.
Business Decision
Sabeco has a lot of business decisions in accordance with environmental factors that help promote its
strengths and overcome its weaknesses.

Sabeco decided to test the enterprise according to standards set by the International Organization
including ISO 9001 2008 (quality management system), ISO 14001 2004 (environmental management
system) and ISO 22000 2005 (system). food safety management). These systems and standards will make
Sabeco's production apparatus more professional. The application of these standards creates Sabeco's
competitive advantage over competitors and the application of these standards helps Sabeco's product
quality be better. These systems will help Sabeco operate more easily with the legal system of Vietnam
and the world.
In 2019, Sabeco tries to set a goal of capturing 50% of the market share in Vietnam, especially in the North
and major city centers. The purpose of this decision is to increase Sabeco's brand awareness, raise the
product segment to high-end, directly compete with Habeco and Heineken.
Because there are so many foreign members in the Vietnamese beer market, Sabeco tends to promote
communication activities to be able to fight these rivals.
In addition, the product changes and upgrades have also been noticed by the company, typically Sabeco
is changing its eye-catching, higher-class bottles to suit customers' tastes. While Sabeco is growing and
changing, it seems that Habeco is like "standing still" without any breakthrough. Habeco products usually
do not have much innovation since the launch until now. Perhaps the development capital of Habeco is
not really strong as Sabeco. Sabeco has financial strength, so they attach great importance to developing
technologies that help to improve products quickly, keeping up with the world trend of re-testing the best
products for consumers.

TOWS Matrix
Strengths
• Mostly, beer has a
Vietnamese taste
• Large distribution
network.
• Experienced staff
Weakness
• Main materials must be
imported from abroad
• Scale of production
plants is limited,
investment is patchy.
• Difficulties in
synchronous
management of
product quality.
Opportunities
• The market for beer in our
country fast growth.
• The people's living standards
have been improved, the
demand for beer, wine and
soft drinks is therefore also
increased.
• Vietnam's beverage market
has great potential.
1. Vietnam's beer market has
a fast growth rate.
2. Experienced staff
1. Difficulties in synchronous
management of product quality
2. The demand for beer, wine
and soft drinks is also
increasing due to the
government's stimulus policy
Threats
• Economic recession demand
dropped sharply for suong.
• The price of input materials
is constantly rising.
• Fierce domestic competition
1. Domestic fierce
competition market.
2. Mostly, beer has
Vietnamese taste
1. Main raw materials must be
imported from abroad,
2. Free market, beer import tax
is reduced, foreign competitors
attack Vietnam

Conclusion
All in all, Sabeco is the largest and most developed beer company in Vietnam. Both external and internal
factors facilitate Sabeco's development such as culture, politics and technology. Besides, they also
encounter some threats such as high inflation rate, interest rate increase or some laws such as excise tax
for the alcohol product portfolio. However, Sabeco still has certain advantages to be able to grow its
business to a world class.

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