Business Management : Internal Management of Vina Milk

Running head: BUSINESS MANAGEMENT
Business management
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1BUSINESS MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Determination of the organizational design.....................................................................................2
Determination of the people management system...........................................................................4
Determination of the marketing activities.......................................................................................6
Determination of financial activities...............................................................................................7
Financial plan...............................................................................................................................8
Cash flow statement.....................................................................................................................9
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

2BUSINESS MANAGEMENT
Introduction
The internal management process and practices are much different in the contemporary
business entities to that of the organizations from the past. In the current business scenario, there
are different and various factors to be considered by the business entities to match up with the
current business complexities. Moreover, it should also be ensured that each of the elements
considered is integrated in effective manner (Jeston 2014). Proper integration will help in having
the maximum return from the internal management. Vina Milk is the leading dairy brand based
in Vietnam. Hey are having extensive presence across the South East Asian regions and having
stake in the Miraka New Zealand (Vinamilk.com.vn 2019). In the international market, Vina
Milk is operating in intense competitive market with the presence of number of other leading
brands and in this case, it is their effective internal management that will be beneficial in dealing
with the competition.
The report will discuss about the extent to which the internal management of Vina Milk
is effective as well as integrated. In doing so, the people management, organizational design,
marketing practices and financial practices followed in the company will be discussed. Different
theories and models will be used to review their effectiveness.
Determination of the organizational design
Organizational design refers to the process of how the particular organization is internally
designed along with the placement of each of the roles. Structure of the organization refers to the
process of placement of the hierarchy levels in the organization along with their span of control
(Bovée and Thill 2015). Thus, the effectiveness of the organizational structure will determine the

3BUSINESS MANAGEMENT
extent to which the organizational affairs are well controlled. In the case of Vina Milk, it is
identified that even they are having vertical hierarchy levels, but still they are following
horizontal or flat organizational structure. This is due to the reason that according to their official
website, there are number of executive managers classified on the basis of functions who are
working under the leadership of the chief executive officer. For instance, the executive directors
are allocated for international business, dairy development, supply chain, human resource
management and finance. Thus, each of the departments is being headed by the single directors
and only the chief executive officer is above them in the hierarchy level. With the help of the flat
organizational structure in the company, the major advantage being gained by Vina Milk is the
effective communication process (Colombo, Croce and Murtinu 2014).
This is due to the reason that in the case of the horizontal organizational structure,
number of intermediaries is less in the hierarchy level and thus fewer barriers to be crossed in
communicating with the superiors. In Vina Milk, employees from each of the departments are
working under the directorship of the respective directors and they are accessible due to the lack
of middle level managers in between. On the other hand, it is also beneficial for the chief
executive officer to have the knowledge and understanding about the lower level factors due to
the fewer intermediaries in between.