Business and Business Environment of TH True Milk - Report
Added on 2022-04-18
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ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 23-8-2021 DateReceived1stsubmission
Re-submissionDate DateReceived2ndsubmission
Student Name Nguyen Thi Ngoc Anh Student ID BHBF200099
Class PBA17101 Assessor name Ngo The Nam
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of
plagiarism. I understand that making a false declaration is a form of malpractice.
Student’s signature Ngoc Anh
Grading grid
P4 P5 P6 M3 M4 D2
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 1: Business and Business Environment
Submission date 23-8-2021 DateReceived1stsubmission
Re-submissionDate DateReceived2ndsubmission
Student Name Nguyen Thi Ngoc Anh Student ID BHBF200099
Class PBA17101 Assessor name Ngo The Nam
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of
plagiarism. I understand that making a false declaration is a form of malpractice.
Student’s signature Ngoc Anh
Grading grid
P4 P5 P6 M3 M4 D2
Summative Feedback:ResubmissionFeedback:
Grade: AssessorSignature: Date:
InternalVerifier’sComments:
Signature&Date:
Grade: AssessorSignature: Date:
InternalVerifier’sComments:
Signature&Date:
Table of Contents
I. Identify the positive and negative impacts the macro environment has upon
the chosen company. ............................................................................................................5
1. The Competitive Environment (Five Forces Model). .........................................................5
2. TH True Milk ‘s P.E.S.T.E.L .................................................................................................8
II. Internal and external analysis of TH True Milk in order to identify strengths and
weaknesses. .......................................................................................................................... 11
1. Vision.............................................................................................................................. 11
2. Mission. .......................................................................................................................... 12
3. Core Values..................................................................................................................... 12
4. Brand value..................................................................................................................... 12
5. Organizational Structure................................................................................................. 13
6. Human resources............................................................................................................ 14
7. Fix/physical assets. ......................................................................................................... 14
8. Financial strength/ factors. ............................................................................................. 14
9. Technology base or Research and Developement........................................................... 15
III. Explain how strengths and weaknesses interrelate with external macro factors.
16
IV. REFERENCES ..................................................................................................... 20
I. Identify the positive and negative impacts the macro environment has upon
the chosen company. ............................................................................................................5
1. The Competitive Environment (Five Forces Model). .........................................................5
2. TH True Milk ‘s P.E.S.T.E.L .................................................................................................8
II. Internal and external analysis of TH True Milk in order to identify strengths and
weaknesses. .......................................................................................................................... 11
1. Vision.............................................................................................................................. 11
2. Mission. .......................................................................................................................... 12
3. Core Values..................................................................................................................... 12
4. Brand value..................................................................................................................... 12
5. Organizational Structure................................................................................................. 13
6. Human resources............................................................................................................ 14
7. Fix/physical assets. ......................................................................................................... 14
8. Financial strength/ factors. ............................................................................................. 14
9. Technology base or Research and Developement........................................................... 15
III. Explain how strengths and weaknesses interrelate with external macro factors.
16
IV. REFERENCES ..................................................................................................... 20
TH True MilkCompany Profile
INTRODUCTION
Company name: TH True Milk (one of three companies under the TH Group)
Establish year: 24/2/2009
Address: Location production: Nghi Son Commune, Nghia Dan District, Nghe An Province.
Headquater: 166 Nguyen Thai Hoc Street, Quang Trung ward, Vinh City, Nghe An
Province
Founder &
Chairman of the
Strategy Council:
Mrs.Thái Thị Hương
Tel no: 1800 54 54 40
Email: chamsockhachhang@thmilk.vn.
Website: http://www.thmilk.vn/ (TH True Milk)
Primary
Industry: Production, Processing and Trading Milk and Dairy Products.
Ownership
Status:
Privately Held
Company type: TH Milk Joint Stock Company (TH Milk JSC)
Description: TH True Milk (true happiness and true milk) is the top milk producer in Vietnam
with the slogan “"Truly natural, quintessential nature-truth in every drop of clean
fresh milk". First milk company applies the most technology into produced milk,
nearly 100% imported foreign countries such as New zealand, Germany, Israel. To
date,TH true Milk products have been registered in more than 60 countries around
the world.
INTRODUCTION
Company name: TH True Milk (one of three companies under the TH Group)
Establish year: 24/2/2009
Address: Location production: Nghi Son Commune, Nghia Dan District, Nghe An Province.
Headquater: 166 Nguyen Thai Hoc Street, Quang Trung ward, Vinh City, Nghe An
Province
Founder &
Chairman of the
Strategy Council:
Mrs.Thái Thị Hương
Tel no: 1800 54 54 40
Email: chamsockhachhang@thmilk.vn.
Website: http://www.thmilk.vn/ (TH True Milk)
Primary
Industry: Production, Processing and Trading Milk and Dairy Products.
Ownership
Status:
Privately Held
Company type: TH Milk Joint Stock Company (TH Milk JSC)
Description: TH True Milk (true happiness and true milk) is the top milk producer in Vietnam
with the slogan “"Truly natural, quintessential nature-truth in every drop of clean
fresh milk". First milk company applies the most technology into produced milk,
nearly 100% imported foreign countries such as New zealand, Germany, Israel. To
date,TH true Milk products have been registered in more than 60 countries around
the world.
TH Milk Joint Stock Company belongs to TH Group was established with the financial advice of Bac A
Commercial Joint Stock Bank, the first company of TH Group to have an investment project in an industrial
dairy farm.TH Group always focuses on developing to become a manufacturer and supplier of food and
natural products of international quality. The company's criteria is to always keep each product intact with the
essence of nature. Therefore, TH Group is equipped with and possesses the latest and top technologies,
equipment, and resources in the world.
In addition, TH Group applies a high-end management system, all regulated products are closed, automatic
and co-mode technology from farming to distribution to consumers to ensure product quality. TH true milk is
a prominent product line of TH Group today. The dairy market is one of the most competitive in Vietnam with
many famous domestic and imported brands such as Vinamilk, Nestle, Dutch Lady, NutiFood... Although
participating in such a competitive market, TH True Milk still has certain tools. The 30% figure is proof of TH
True Milk's efforts In order to ensure convenience for customers and consumers to have access to milk
everywhere, TH Group is also gradually developing many retail stores of TH true Milk to provide milk to
customers' hand with high quality products.
In order to clearly understand the impact of the macro environment on TH True Milk, this report will analyze
the positive and negative impacts of the macro environment on business operations. Conduct internal and
external analyzes of specific organizations to identify strengths and weaknesses. Beside, explain how
strengths and weaknesses interact with external macro factors.
I. Identify the positive and negative impacts the macro environment has upon
the chosen company.
1. The Competitive Environment (Five Forces Model).
• Threat of new entrants: LOW
Barriers to entry into the industry:
- Capital requirements: For businesses that want to
enter the industry, the capital factor is the most
noticeable issue, especially with the dairy industry
characteristic that there is a fairly high barrier to entry,
requiring a lot of capital for production, research,
promotion and especially product distribution.
- Product differentiation: Currently, the products of
famous dairy companies such as Vinamilk, Dutch Lady,
and Abbot have gained a foothold in the hearts of
consumers with specific product lines as well as a stable
market share. New businesses must make strong efforts
and investments to overcome this barrier.
- Access to distribution channels: The current large
dairy enterprises in Vietnam mostly have a large and
professional distribution system, so new businesses that
want to access these distribution channels will have to
spend more a lot of money.
Commercial Joint Stock Bank, the first company of TH Group to have an investment project in an industrial
dairy farm.TH Group always focuses on developing to become a manufacturer and supplier of food and
natural products of international quality. The company's criteria is to always keep each product intact with the
essence of nature. Therefore, TH Group is equipped with and possesses the latest and top technologies,
equipment, and resources in the world.
In addition, TH Group applies a high-end management system, all regulated products are closed, automatic
and co-mode technology from farming to distribution to consumers to ensure product quality. TH true milk is
a prominent product line of TH Group today. The dairy market is one of the most competitive in Vietnam with
many famous domestic and imported brands such as Vinamilk, Nestle, Dutch Lady, NutiFood... Although
participating in such a competitive market, TH True Milk still has certain tools. The 30% figure is proof of TH
True Milk's efforts In order to ensure convenience for customers and consumers to have access to milk
everywhere, TH Group is also gradually developing many retail stores of TH true Milk to provide milk to
customers' hand with high quality products.
In order to clearly understand the impact of the macro environment on TH True Milk, this report will analyze
the positive and negative impacts of the macro environment on business operations. Conduct internal and
external analyzes of specific organizations to identify strengths and weaknesses. Beside, explain how
strengths and weaknesses interact with external macro factors.
I. Identify the positive and negative impacts the macro environment has upon
the chosen company.
1. The Competitive Environment (Five Forces Model).
• Threat of new entrants: LOW
Barriers to entry into the industry:
- Capital requirements: For businesses that want to
enter the industry, the capital factor is the most
noticeable issue, especially with the dairy industry
characteristic that there is a fairly high barrier to entry,
requiring a lot of capital for production, research,
promotion and especially product distribution.
- Product differentiation: Currently, the products of
famous dairy companies such as Vinamilk, Dutch Lady,
and Abbot have gained a foothold in the hearts of
consumers with specific product lines as well as a stable
market share. New businesses must make strong efforts
and investments to overcome this barrier.
- Access to distribution channels: The current large
dairy enterprises in Vietnam mostly have a large and
professional distribution system, so new businesses that
want to access these distribution channels will have to
spend more a lot of money.
In the dairy industry the brand factor is very important, it affects quite a lot of the company's market share,
thereby impacting the revenue and profitability of the business. For businesses that want to enter the
industry, the question of how to build a brand, win consumer loyalty from big businesses in the industry is not
easy to answer.
Thus, it is easy to see that capital factors, distribution channels and brand recognition are among the biggest
barriers for muoons entering the dairy industry. In addition, the Vietnamese market is dominated by Vinamilk
with long experience and great potential plus a solidly built brand and products that can make it difficult for
any business to enter the market.
• Competitive Rivalry: HIGH
Vietnam dairy industry market share 2021
By market share, VINAMILK 43,3%, Friesland Campina 15,8% and Vinasoy 14,3% are the 3 brands with a very
large market share in the dairy industry of the country. TH True Milk, holds only 6,1% market share. In 2021,
VINAMILK still holds the highest market share in Vietnam’s dairy industry, so VINAMILK has the strongest
competitiveness and responds well to external factors. VINAMILK is the number one competitor of TH True
Milk holds the largest market share (with multiple market segments, some market share is almost exclusive)
and is still maintaining and constantly increasing market share. Although the competitiveness of TH true MILK
is lower than that of VINAMILK, it does not mean that TH's competitiveness is poor. (Ngành sữa năm 2021 sẽ
tăng trưởng theo kịch bản nào ?, 2021)
In reality, these businesses have been associated with the Vietnamese dairy market for a long time and have
made a certain impression on the subconscious of consumers. Moreover, these brands also constantly invest
in technology to make the product quality even higher. This is also one of the biggest pressures when TH True
Milk enters the dairy industry. However, despite many economic difficulties in 2009, the dairy industry is one
of the industries with good growth rates when the demand for repair is increasing. This is an opportunity for
TH True Milk to create success when they know how to find their own direction.
Thus, for current competitors in the industry, TH True Milk can easily see the pressure from the brand identity
factor, the question of requirements that constitute a barrier to the industry. In addition, the dairy industry
has a high growth rate, stable profits but requires a relatively large market share, so TH True Milk is currently
under a lot of pressure from the problem of market share competition.
thereby impacting the revenue and profitability of the business. For businesses that want to enter the
industry, the question of how to build a brand, win consumer loyalty from big businesses in the industry is not
easy to answer.
Thus, it is easy to see that capital factors, distribution channels and brand recognition are among the biggest
barriers for muoons entering the dairy industry. In addition, the Vietnamese market is dominated by Vinamilk
with long experience and great potential plus a solidly built brand and products that can make it difficult for
any business to enter the market.
• Competitive Rivalry: HIGH
Vietnam dairy industry market share 2021
By market share, VINAMILK 43,3%, Friesland Campina 15,8% and Vinasoy 14,3% are the 3 brands with a very
large market share in the dairy industry of the country. TH True Milk, holds only 6,1% market share. In 2021,
VINAMILK still holds the highest market share in Vietnam’s dairy industry, so VINAMILK has the strongest
competitiveness and responds well to external factors. VINAMILK is the number one competitor of TH True
Milk holds the largest market share (with multiple market segments, some market share is almost exclusive)
and is still maintaining and constantly increasing market share. Although the competitiveness of TH true MILK
is lower than that of VINAMILK, it does not mean that TH's competitiveness is poor. (Ngành sữa năm 2021 sẽ
tăng trưởng theo kịch bản nào ?, 2021)
In reality, these businesses have been associated with the Vietnamese dairy market for a long time and have
made a certain impression on the subconscious of consumers. Moreover, these brands also constantly invest
in technology to make the product quality even higher. This is also one of the biggest pressures when TH True
Milk enters the dairy industry. However, despite many economic difficulties in 2009, the dairy industry is one
of the industries with good growth rates when the demand for repair is increasing. This is an opportunity for
TH True Milk to create success when they know how to find their own direction.
Thus, for current competitors in the industry, TH True Milk can easily see the pressure from the brand identity
factor, the question of requirements that constitute a barrier to the industry. In addition, the dairy industry
has a high growth rate, stable profits but requires a relatively large market share, so TH True Milk is currently
under a lot of pressure from the problem of market share competition.
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