Coca-Cola Vietnam: Industry, Competitors, and Business Functions

This report provides a comprehensive analysis of Coca-Cola Vietnam, beginning with an overview of its history both globally and specifically within Vietnam. It delves into Coca-Cola's activities in Vietnam, including its product lines and market performance, supported by financial data and market share information. The report then examines the business environment, including the beverage industry in Vietnam, Coca-Cola's competitors (PepsiCo and Tan Hiep Phat), and the growth of the business environment. It explores the organizational structure, advantages, and disadvantages of the functional structure within Coca-Cola Vietnam. The report concludes with an analysis of Coca-Cola's financial performance, market position, and key business functions, providing a detailed insight into the company's operations within the Vietnamese market. The report also includes information about the vision and mission statements of the competitors and stakeholders.

Pearson Education 2020
Higher Education Qualifications

Pearson Education 2020
Higher Education Qualifications
TABLE OF CONTENTS
1. Introduction ......................................................................................................................
1.1. An overview of the history of Coca-Cola ................................................................... 1
1.2. History of Coca-cola Vietnam ................................................................................... 1
1.3. Coca-Cola’s activities in Vietnam ............................................................................. 1
1.4. Organization sizes and legal forms in Vietnam .......................................................... 4
2. Business environment of Coca-Cola Vietnam ..................................................................................
2.1 The Coca-Cola industry ........................................................................................... 5
2.2 Sub-sector in Vietnam. ............................................................................................. 7
2.3 The growth of Business environment: ....................................................................... 8
3. Two selected competitors of Coca-Cola Vietnam ...............................................................................
3.1 Background details and activity of PepsiCo ............................................................. 11
3.2 Organizations sizes and legal forms of PepsiCo in Vietnam ...................................... 12
3.3 Background details and activity of Tan Hiep Phat ................................................... 13
3.4 Organizations sizes and legal forms of Tan Hiep Phat .............................................. 14
3.5 Vision statement and mission statement. ................................................................. 14
3.6 Information their stakeholder ................................................................................. 15
4. Business functions of Coca-Cola Vietnam ......................................................................................
4.1 Organizational chart of Coca-Cola Vietnam ............................................................ 16
4.2 Advantages of functional structure ......................................................................... 18
4.3 Disadvantage of functional structure....................................................................... 18
4.4 The cooperation between departments .................................................................... 18
5. Conclusion ........................................................................................................................
REFERENCES .....................................................................................................................

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Higher Education Qualifications
TABLE OF FIGURES/PICTURES
Picture 1: Revenue of beverage brands in Vietnam 2016-2019 ........................................... 2
Picture 2: Performance indicators of Coca-Cola Vietnam 2016-2019 ................................ 3
Picture 3: Vietnam beverage market share chart in 2017.................................................... 4
Picture 4: Business activities of Coca-Cola Vietnam (Unit: billion VND) .......................... 6
Picture 5: Beverage market 2017.......................................................................................... 10
Picture 6: The organizational chart of Coca-Cola Vietnam company .............................. 17

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1. Introduction
1.1.An overview of the history of Coca-Cola
Coca-Cola Invented by John Stith Pemberton in 1886. Dr. John S. Pemberton began making
a new non-alcoholic beverage. He came up with a pleasant-tasting syrup that could be blended
with carbonated water and offered as a refreshing drink at a freshwater fountain. Coca-Cola
is one of America's largest corporations and the world's largest beverage manufacturer and
distributor, with over 2,800 products distributed in over 200 countries. The company's
headquarters are located in Atlanta, Georgia (The Coca-Cola company, 2021).
1.2.History of Coca-cola Vietnam
Coca-Cola was first introduced in Vietnam in 1960. After the US lifted the trade embargo, in
February 1994 Coca-Cola returned to Vietnam and started the business. The first joint venture
between Coca-Cola Indochina and Vinafimex was created in August 1995 and was located in
the north. Due to the partnership between Coca-Cola and Chuong Duong in Vietnam, the next
joint venture, Coca-Cola Chuong Duong beverage firm, was formed within a month. Another
joint venture appeared in the Central area in January 1998. This is the last joint venture that
Coca-Cola Indochina in Vietnam, with a partnership with Da Nang Beverage Company. In
June 2001 Coca Cola beverage companies in 3 regions were merged into 1 and have the middle
management of Coca-Cola Vietnam with head office in Thu Duc District, Ho Chi Minh City.
Coca-cola Vietnam is named Coca-Cola beverages Vietnam limited liability company. Coca-
Cola has three manufacturing sites in Vietnam, located in Hanoi, Da Nang, and Ho Chi Minh
City.
1.3.Coca-Cola’s activities in Vietnam
Coca-Cola Vietnam with the orientation to become a comprehensive, consumer-oriented
beverage company, the company constantly improves and provides a variety of quality and
diversified beverages, including product lines. low sugar and no sugar. Coca-Cola, Coca-
ColaLight, Coke Zero, Sprite, Fanta, Minute Maid Nutriboost, Minute Maid Teppy,
Schweppes, Dasani, and Aquarius are among Coca-beverage Cola's brands in Vietnam.

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Capturing the trend of customers in Vietnam, Coca-Cola diversified its products with fruit
juices, teas, coffees and zero-calorie drinks. According to Mr. Sanket Ray, Managing Director
of Coca-Cola Vietnam. Coca-Cola Vietnam had a good year in 2017. Coca-Cola has
completed its $300 million commitment for 2013-2016 and announced a new investment of
$285 million in its manufacturing units in Hanoi, Da Nang, and Ho Chi Minh City for 2017-
2020. Overall, as a total beverage company with new innovations for customers, Coca-Cola
Vietnam has achieved steady growth and is poised to grow even stronger in the coming years.
(Vietnambiz.vn, 21)
Picture1: Revenue of beverage brands in Vietnam 2016-2019

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Coca-revenue Cola's has continually increased by trillions of dollars per year in recent years.
Coca-income Cola's in 2016 was VND 6,872 billion, which climbed by VND 346 billion to
VND 7,218 billion in 2017. Coca-Cola Vietnam's revenue in 2019 was VND 9,297 billion, up
9% from the previous year (Vietnambiz, 2021).
(Vietnambiz.vn, 21)
Picture 2: Performance indicators of Coca-Cola Vietnam 2016-2019
However, this business only recorded a negligible profit. Despite a steady increase in revenue,
this unit's declared profit more than halved to VND 227 billion in 2017. During the years 2018
and 2019, the company earned 549 billion dong and 812 billion dong, respectively. However,

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in 2019, the profit/revenue margin (ROS) was only 7.3 percent, which was much lower than
other companies in the same industry (Vietnambiz, 2021).
1.4.Organization sizes and legal forms in Vietnam
The Coca-Cola Corporation is the largest beverage company, as well as the world's leading
soft drink manufacturer and marketer. To reach the top of the soft drink business, Coca-Cola
used a number of technologies, producing new technologies and paradigms that burst the
status quo like a soda bottle cap. Coca-Cola perfected Coke as a beverage and used technology
to promote it over the world. Over the last decade, the Coca-Cola Company's net operating
revenue and operating profitability have fluctuated. In Vietnam, Coca-Cola entered the
Vietnamese market in 1994. After decades of investment in the Vietnamese market, two
foreign-owned companies, Coca-Cola and Pepsi, now control nearly the entire market for
carbonated soft drinks. Tan Hiep Phat is the only company with 100 percent domestic capital
that is still dominant in the non-gas beverage segment.
(Vietpress.vn, 2018)
Picture 3: Vietnam beverage market share chart in 2017 (Alcohol-Beverage Association)

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According to the Alcohol-Beverage Association, Coca-Cola currently has a market share of
41% in the beverage industry. PepsiCo owns 22.7 percent, Tan Hiep Phat 25.5 percent, and
other small firms control the remaining 10.5 percent. The non-alcoholic beverage industry in
Vietnam is highly interesting to investors, according to the chairman of the Association of
Alcohol - Beverage, because major nations such as France, Japan, and others estimate a 2%
annual growth rate in the home market. In recent years, Vietnam has maintained an
exceptional growth rate of 6-7 percent.
There are three main types of business are: sole trader, limited company and partnership. The
different between the sole trader, limited company and partnership. Sole trader is a sole trader
is a self-employed person who owns and runs their own business as an individual (Johnathan
Korchak, 2021) A limited company (LC) is a type of business entity that restricts the amount
of risk taken on by the firm's stockholders (ADAM HAYES, 2020). A legal agreement
between two or more persons to manage and operate a firm and share profits is known as a
partnership (CAROL M. KOPP, 2021). Based on 3 definitions of sole trader, limited company
and partnership, Coca-Cola Vietnam is a limited company with 100% foreign investment.
2. Business environment of Coca-Cola Vietnam
2.1 The Coca-Cola industry
Coca-Cola is one of the largest beverage industries in the world. The Coca-Cola brand accounts
for about 75% of the Company's total beverage sales.

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(Vietnamnet.vn, 2021)
Picture 4: Business activities of Coca-Cola Vietnam (Unit: billion VND)
Looking at the business performance data of Coca-Cola Vietnam in this period, Coca-Cola
Vietnam's sales has grown at a compound annual growth rate (CAGR) of roughly 23.06
percent.Assuming this business maintains the above growth rate, our estimate in 2014 this
company will achieve revenue of nearly 6,000 billion dongs (TriThucTre, 2015).
• Definition beverage industry: Beverage industry is the production of beverages and
ready-to-drink products e.g energy drinks, bottled water, soft drinks, tea products. This
industry consists of two main categories alcoholic and non-alcoholic. The alcoholic
beverage industry includes wine, wine and beer. Non-alcoholic beverages include
syrup-based soft drinks; soft drinks and bottled water and canned bottled juice....
• Coca-Cola's main competitors: Coca-Cola is a famous brand around the world in the
beverage industry. As society develops and technology becomes more modern, more
and more famous brands in the beverage industry are developing strongly. They are
ready to compete fairly with Coca-Cola. This makes it difficult for Coca-Cola to sell
its products. Coca's direct competitors are Pepsi products of PepsiCo and THP.
• Coca-Cola's target customer: Coca-Cola targets every customer, segmenting them
mainly based on age and income. The main market that Coca-Cola wants to target the

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most is younger people in the 10-25 age group. This is the most potentially lucrative
age group that Coca-Cola wants to target. Perfect segmentation has been the decisive
factor for Coca-Cola's success until now. In addition, the company targets universities
and high schools where many students and students are concentrated. Coca-Cola also
makes products for dieters, addressing the elderly segment, considering people with
diabetes, obesity, people 40 years of age and older. The firm sells its product in a
variety of sizes and packaging at various price points, making it accessible to students,
families, and the middle class.
• Industrial structure of Coca-Cola: When there is a large number of sellers and a
large number of buyers in a market, that market is regarded as a perfectly competitive
market or industry. This is because there are large numbers of buyers and large
numbers of sellers in this market. Coca-cola is a beverage industry in which there are
many competitors such as Pepsi, Neste, Dr.pepper...They compete on products on
strategies and prices to attract customers, generate profits for the company. Although
the ingredients and flavors of their products are very similar, many consumers swear
by one brand over the other. These companies offer their products in a wide variety of
flavors and variants.
2.2 . Sub-sector in Vietnam.
Coca-Cola Vietnam is a private sector. The private sector is the component of the economy
that is operated for profit by individuals and businesses rather than by the government. As a
result, all for-profit firms that are not owned or run by the government are included (Private
Sector Definition, 2021). Coca-Cola Company invests in the Coca-Cola Vietnam system in
order to expand the business, make profits, and construct new infrastructure in order to support
robust, long-term growth and talent development in the area. local. The manufacturing and
distribution capacity of the Coca-Cola Vietnam system has been increased. Local businesses
will benefit from the construction of new filling lines and the installation of new cold drink

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coolers, which will assist improve beverage sales. The voluntary sector is defined as
organizations whose primary goal is to make a positive social effect rather than make a profit.
The volunteer sector differs from the private sector in that it is not governed by local or national
governmentsa. With the public sector being the part of the overall economy of the Country that
is controlled by the Government or various Government agencies. With 3 definitions of the
private, public, and voluntary sectors, it can be seen that Coca-Cola Vietnam is in the private
sector. Coca-Cola regularly invests in sustainable development to grow and generate profits.
It is profit-driven primarily, and it is not owned or operated by the government. The
characteristics of Coca-Cola Vietnam are not suitable for the public sector and voluntary
sector.
2.3 The growth of Business environment:
Microenvironment of coca-cola: The microenvironment refers to the internal elements that
influence corporate operations. Employee interactions, work environment, and motivating
factors are among these elements. Competitors, employees, customers, shareholders, suppliers,
and the media all have a role in the company's microenvironment. Coca-Cola has amassed a
sizable consumer base in a variety of domestic and foreign markets. Coca-Cola has segmented
the market differently to attract customers and increase sales. Regarding the five-force model,
the five force includes 5 factors bargaining power of suppliers, bargaining power of
buyers/customer, threat of new entrants, threat of substitutes, competitive Rivalry. For Coca-
Cola, the two factors threat of substitutes and Competitive Rivalry are the most important.
+ Threat of substitutes: Coca-Cola's main substitutes are beverages produced by Pepsi, fruit
juices, energy drinks and hot drinks. The substitutes are generally of good quality. As a result
of these factors, substitute products pose a significant threat.
+ Competitive Rivalry: Two major players in the soft drink industry are Coca-Cola and Pepsi.
The two major corporations are roughly the same size, and their products and strategies are
similar. Both brands invest heavily in marketing and promotion. The difference between these

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two brands is very low. Therefore, the battle between Coca and Pepsi competing on price and
market share is very fierce
Macro environment of Coca-Cola: A company's macro-environment contains a number of
external elements that influence the organization's policy rules. Government policies, inflation
rates, import and export management, foreign exchange rates, changing demand and supply
conditions, technological and legal considerations are all examples of such factors. Coca-Cola
has reacted positively to a variety of external factors in order to boost its international market
share. Regarding the Pestel model, the pestel model includes 6 factors: Political factors,
Economic factors, Social factors, Technological factors, Environmental factors, Legal factors.
Coca-Cola in PESTEL's analysis of political, environmental and legal factors that have great
influence on the maintenance and development of Coca-Cola in Vietnam.
+ Political factors: Political factors influence not only transnational corporations' investment
decisions, but also companies like Vietnam Coca. The cost of doing business, as well as long-
term viability, is derived by the political environment and other factors.
+ Environmental factors: Coca-Cola is required to follow environmental regulations when
producing its products. If something goes wrong, it could affect how the product is delivered -
or even cause production to stop.
+ Legal factors: What Coca Vietnam needs to do to comply with domestic health and safety
laws. Because different countries have different attitudes towards health and safety, Coca
Vietnam should conduct extensive prior research to entering the market. Coca-Cola past and
future all business rights, including past and future products developed through a patented
process
Growth of industry:

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(thp.com, 2017)
Picture 5: Beverage market 2017
The beverage industry grew by 6.3 percent year over year in the first half of 2016. By 2020,
this figure will have risen to approximately 8.3-9.2 billion liters per year. Non-alcoholic
beverage consumption in Vietnam will increase to 2.7 billion liters in 2017, corresponding to
an average growth rate of 7% (Zing, 2017). As of 2018, the average beverage consumption per
person in Vietnam is only about 23 liters/year.
According to Vietnam beverage market statistics 2020. Soft drinks, instant teas, fruit juices,
energy drinks, and other beverages account for 85 percent of the Vietnamese beverage
market's annual production and consumption. The remaining 15% is due to mineral water,
which accounts for the remainder. Vietnam is a rapidly rising emerging market that is a great
place to do business (Vuaphache, 2021). Coca-Cola Vietnam has established itself as a critical
and reliable partner in assisting Vietnam in achieving its aim of being a highly integrated and
competitive country.

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3. Two selected competitors of Coca-Cola Vietnam
3.1 Background details and activity of PepsiCo
The first Pepsi-Cola was created by Caleb D. Bradham (1866–1934). In the hope of repeating
the success of Coca-Cola. D. Bradham named the sweet Cola-flavored carbonated drink Pepsi-
Cola in 1898. In 1931, Charles G. Guth (1876–1948) acquired and founded the new Pepsi-
Cola company, thanks to a Chemists create a better drink, establish new bottling operations.
Suntory PepsiCo Vietnam is a 100% foreign owned founded in April 2013 as a joint venture
between PepsiCo Inc and Suntory Holdings Limited. Through a strategic alliance, Suntory
Pepsico entered the Vietnamese market in 1995 and is now officially recognized as Suntory
Pepsico. After nearly 25 years of establishment and development, Pepsi has risen to become
one of the major beverage brands.. The head office of Suntory PepsiCo Vietnam is located at
88 Dong Khoi, District 1, Ho Chi Minh City.
PepsiCo produces and markets a variety of soft drinks including Pepsi-Cola as a carbonated
beverage, Pepsi diet as a carbonated beverage for dieters... With the aim of expanding the Pepsi
market also launched Twister, Miranda, Sting with the desire to have more choices for
consumers. Compared to Coca-Cola, Pepsi and Coca products are similar in categories such as
carbonated drinks, teas, sports drinks, and fortified milk. For example, Coca-Cola Company
offers Sprite, and Pepsi Company offers 7up. Both of their drinks are really similar in
composition and taste. Product flavor difference Coca-Cola and Pepsi-Cola are different
flavors. According to Malcolm Gladwell, Pepsi has flavors of oranges, tangerines, and lemons,
and has more sugar, calories, and caffeine. Coca-Cola has raisin and vanilla flavors, as well as
a higher sodium content than Pepsi.In addition to the beverage industry, Pepsi also expanded
into the food industry with the cooperation of the fast-food chain KFC and the production of
Snack PoCa. Pepsi-Cola is the main product line of Pepsi that is known to all consumers around
the world. Compared to other beverage products, Pepsi is one of the well-known and well-

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positioned beverage industries. Pepsi always focuses on customer feedback to change and
bring satisfaction to customers about PepsiCo's product lines.
In Vietnam market, PepsiCo is one of the three largest beverage manufacturers, along with Tan
Hiep Phat and Coca-Cola. According to the 2018 financial report, PepsiCo achieved revenue
of nearly 17 trillion dong, up 14.6 percent over the previous year. In 2018, the firm declared a
net profit of more than VND 1,639 billion, up 15% over the previous year's same time. The
cumulative loss of PepsiCo Vietnam came to an end at the end of 2016. At the end of 2018,
the firm achieved a total profit of more than VND 3,200 billion. (Theleader, 2021).
3.2 Organizations sizes and legal forms of PepsiCo in Vietnam
There are three sizes of organization: Small business: usually owned and operated by a single
person (sole trader) or several (partnership) and tends to sell their goods or services locally
direction. They usually employ less than 50 people. Medium-sized businesses: Usually
employing 50 to 250 people operating at the local or national level. Large enterprise: usually
has factories/offices and stores in many cities and often in many countries. Based on the
definitions of the size of a business, it can be seen that, like Coca-Cola, Pepsi is also a large
enterprise and is in the top of the Vietnamese beverage market. PepsiCo currently has 5 large
production plants, which are Hoc Mon, Can Tho, Dien Ban, Bac Ninh, and Dong Nai factories.
The number of employees of PepsiCo Vietnam is from 1001-500 employees. PepsiCo
continues to invest in the Vietnamese market with an investment of USD 250 million in 2010
(Suntory PepsiCo, 2021). Pepsi has a well-trained and efficient staff with a nationwide sales
and distribution system. According to the statistics of the beer and wine association PepsiCo
Vietnam has the highest market share in 2017 of 22.7% in 2017. Beverage industry with
modern production lines and large factories. Suntory PepsiCo is aiming to diversify its
products to serve a wide range of customers with various needs, leveraging its strengths in
finance and technology. Based on the definitions of sole trader, limited company, partnership
mentioned above. Suntory PepsiCo is a limited company with 100% foreign investment

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capital, similar to Coca-Cola Vietnam. It is a joint venture between PepsiCo Inc and Suntory
Holdings Limited.
3.3 Background details and activity of Tan Hiep Phat
Tan Hiep Phat is an enterprise specializing in the production and trading of soft drinks and
bottled drinks. Established in 1994 with the potential of being a Ben Thanh beer and beverage
factory with the function of producing and trading soft drinks and beer. Tan Hiep Phat's head
office is located in Thuan An, Binh Duong. THP has grown to become Vietnam's leading
beverage corporation, competing on an equal footing with international beverage corporations
after 20 years of establishment and development. Tan Hiep Phat owns a variety of production
technologies, including some of the world's most advanced production lines and a chain of new
factories including Number One Chu Lai, Number 1 Ha Nam, Number 1 Hau Giang.
Tan Hiep Phat is proud to be the market leader in the field of introducing healthy drinks, with
famous brands such as herbal tea, green tea, squash tea, exercise water, water. energy drinks,
soy milk, purified water... Tan Hiep Phat's products are similar to those of Coca-Cola, but the
biggest difference is between Coca-Cola and Tan Hiep Phat's products that is Tan Hiep Phat
produces non-carbonated beverage products and favors teas rather than energy and healthy
drinks. Tan Hiep Phat's products have consistently won the title of "Vietnamese High-Quality
Goods" as voted by consumers, as well as the National Brand and numerous other awards and
accolades. Tan Hiep Phat's products are widely trusted due to the guarantee of environmental
protection, quality management.
According to the Tan Hiep Phat group of companies' business data. Between 2014 and 2017,
revenue reached nearly VND 7,000 billion per year, then increased to VND 8,300 billion in
2018 and VND 9,200 billion in 2019. Between 2014 and 2016, the company profited around
VND 1,000 billion, rising to VND 2,000 billion in 2018 and VND 3,300 billion in 2019.. Tan
Hiep Phat's revenue is comparable to Coca-and Cola's half of Suntory Pepsi's, but thanks to its
superior profitability ratio, it makes much more profit than its two competitors (TVSI, 2021).

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3.4 Organizations sizes and legal forms of Tan Hiep Phat
Statistics of the beer and wine association show that THP's market share was 25.5% in 2017
in the beverage industry in Vietnam.Tan Hiep Phat has invested continuously in creating
production line systems and modernizing technology, and is pleased to be one of the domestic
units with many of the world's most cutting-edge production technologies and lines, with the
goal of "becoming a leading corporation in Asia in the field of beverages and food" (Tan Hiep
Phat Beverage Group, 2021). Like Coca-Cola Vietnam, Tan Hiep Phat is also a large
corporation, a leading beverage company in Vietnam, benefiting from many incentives and
convenience of the distribution system due to being a domestic corporation.
Like Coca-Cola and PepsiCo Vietnam, Tan Hiep Phat is a limited liability company with a
family business structure. Tan Hiep Phat becomes a strong brand, dominating the Vietnamese
market in the field of beverage.
3.5 Vision statement and mission statement.
A strong corporate vision will help the organization create a thorough mission statement, which
is necessary before alternative tactics can be devised and implemented. As a result, any
company must develop a strong vision and mission.
Vision is the long-term goal of the company/enterprise. Coca-aim Cola's is to offer popular
brands and beverage options that refresh people's bodies and minds. And done in ways that
result in a more sustainable business and a better shared future that benefits people,
communities, and the environment (Purpose & Company Vision | The Coca-Cola Company,
2021). PepsiCo's vision is to continue to strengthen and maintain its leadership position in the

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beverage industry while living with the company's values (Suntory PepsiCo, 2021). Tan Hiep
Phat's ambition is to establish himself as a top beverage and culinary company in Asia. (Tan
Hiep Phat Beverage Group, 2021).
The organization's mission statement should capture the organization's goals and the specific
role it plans to play in society over the long term. Coca Cola's roadmap begins with their long-
term mission. It articulates their company's mission and serves as a standard by which they
measure their actions and decisions. PepsiCo's mission is to provide consumers around the
world with hundreds of beverage and food products that make them happy, pursue sustainable
development goals, benefiting the company's workers and business relationships, as well as
contributing to the communities where it operates (Suntory PepsiCo, 2021). Tan Hiep Phat's
aim is to create and trade healthy products for Asian consumers that have suitable taste and
product quality in accordance with international standards, while meeting current and future
needs customers to become a favored business partner (Tan Hiep Phat Beverage Group, 2021).
3.6 Information their stakeholder
A stakeholder has a vested interest in a company and can either affect or be affected by a
business' operations and performance. Typical stakeholders are investors, employees,
customers, suppliers, communities, governments (Jason Fernando, 2021). Coca-Cola has more
than 500 brands sold in more than 200 countries and regions (The Coca-Cola Company, 2021).
Its main stakeholders include bottling partners, suppliers, consumers, customers, industry
partners, governments and NGOs (Who are Coca-Cola’s partners in sustainability? | The Coca-
Cola Company, 2021). Local rural communities, environmental activists, NGOs such as the
World Wildlife Fund, CIFACOM, and several local NGOs are among Coca-stakeholders
Cola's in Vietnam. In addition, Other key stakeholders include the Duyen Thai People's
Committee and local government health officials. Coca-Cola Vietnam lacks an employee
volunteer component, which is an important stakeholder who should be involved in community
projects in Vietnam, which, in other areas of the globe, are an important aspect of strategy
(Coca Cola CSR at the Vietnamese Market, 2021). PepsiCo Vietnam is an alliance between
PepsiCo Inc and Suntory Holdings Limited. Under the terms of the deal while PepsiCo has a

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49% shareholder in the company (Suntory, 2021). PepsiCo's main stakeholder group ranked in
order of company priority Consumers and customers (top priority) Community Employees
Investors Government. PepsiCo's corporate social responsibility strategy prioritizes consumers
and customers. This group of stakeholders is in charge of determining the company's revenue
position. High-quality products at reasonable prices are appealing to consumers and customers.
Customers who do business with PepsiCo want to see their business performance stabilize and
improve. Tan Hiep Phat operates under the model of a family company with 100% ownership
by family members. Mrs. Pham Thi Nu, Mr. Thanh's wife, is Tan Hiep Phat's largest
shareholder, with 54.4 percent of the company's charter capital. Tran Uyen Phuong and Tran
Ngoc Bich, two daughters, own the rest (Doanhnghieptiepthi, 2021). Three companies must
provide reasonable treatment and requirements to internal stakeholders, as well as ensure
human rights for employees who wish to join the company's management, as this is one of the
key forces in bringing products to market.
4. Business functions of Coca-Cola Vietnam
4.1 Organizational chart of Coca-Cola Vietnam
Organizational structure is the formal arrangement of jobs within an organization. An
organization chart is a drawing that shows the structure of an organization, major job
classifications, and the reporting relationships among the organizational personnel. The
organizational structure outlines how certain activities are directed to achieve the organization's
goals and has an impact on the company's operations since it serves as the foundation for the
rest of the standard operating procedures and processes.

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(business.amchamvietnam.com)
Picture 6: The organizational chart of Coca-Cola Vietnam company
The organizational type of Coca-Cola Vietnam is functional structure. A functional structure
is a business structure based on the function of each job inside the company, as well as the
knowledge and abilities of the team members that perform each duty. In the Vietnamese
market, Coca-Cola is one of the most famous international brands. Coca-Cola's manufacturing
plants in Ho Chi Minh, Hanoi and Da Nang. Coca-Cola Vietnam has directors for supply chain,
marketing, human resources, technology, customer care, legal work, and more. Each of these
directors is in charge of their divisions and is accountable for the tasks assigned to them. The
functional structure of Coca-Cola is depicted in this diagram. At the top is the CEO, then to the
executives of functional departments such as sales, marketing, production, finance, human
resources, and more. Each of these departments has a manager and a group of employees who
achieve the set goals by working together.

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4.2 Advantages of functional structure
+ When companies use a functional organizational structure, people with similar knowledge
and skills are grouped together. This enables employees to become experts in their field.
+ Employees' qualifications have been significantly improved.
+ Employees have the chance to advance in their functional areas, which can be a motivator to
stay on for the long haul. Their knowledge and expertise are being put to good use by the
company.
+ The career paths are clear; the employees may be motivated to advance their careers.
+ Functional specialization might help you save money on operating costs.
4.3 Disadvantage of functional structure
+ Collaboration with other departments may result in unhealthful competition within the
functional organization.
+ These functional groups may not be able to communicate more frequently, reducing
flexibility and innovation., resulting in a lack of overall organizational growth.
+ The possibility of a lack of unit coordination is another issue with functional organizational
structures. While the functional units may be more efficient, they may struggle to communicate
effectively with one another, potentially jeopardizing collaboration.
4.4 The cooperation between departments

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The activities that firms participate in in order to develop and launch new goods and services
are referred to as R&D. It's usually the first step in the development process (MARGARET
JAMES, 2021).
Human resources (HR) are the department of a company that is responsible for finding,
screening, recruiting, and training prospective employees, as well as administering employee
benefit programs (JULIUS MANSA, 2020).
Marketing refers to the activities a company undertakes to promote the purchase or sale of a
product or service to customers and retain customers.
The finance department is responsible for managing the company's cash flow and determining
the most cost-effective funding source for the manufacturing and marketing operations.
How do the departments cooperate for efficiency?
+ Departmental collaboration requires more than just "collaborating" with other organizations.
It comprises a shared vision, mutual respect, and a comprehensive grasp of each other's project
roles, all with the objective of generating good business outcomes and giving an outstanding
customer experience.
+ The marketing department and the financial department will need to work closely together.
Sufficient budget to meet research, promotion, and distribution needs. The finance department
has a summary of the entire organization to ensure that all businesses operate within their
financial capabilities. The marketing department may want to overspend if profitable marketing
opportunities emerge during the year. Furthermore, marketing may be used as a primary
strategy for achieving financial objectives when establishing a marketing campaign to sell new
debt and equity issues.

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+ To ensure that appropriate skills and staffing levels are in place, the marketing department
will need to collaborate closely with HR to investigate and develop new product concepts,
achieve the production goal, and create a sales team that is both ambitious and capable.
+ In collaboration with Human Resources, job descriptions, screening criteria, training
programs, and reward systems should all be developed (H&R).
+ R & D and marketing work together in the R & D process. It can help the R & D department
improve product quality while also accelerating the development process. If the marketing
department is not involved, businesses may manufacture items that do not match market
demands. If R & D and marketing work together effectively, creating goods will be easier and
more efficient. By providing insight into customers' unmet issues and needs, as well as
measuring their satisfaction.
5. Conclusion
In Vietnam, Coca-Cola is one of the leading beverage companies in the Vietnamese beverage
market. Coca-Cola's products are manufactured in a variety of ways with the aim and needs of
customers. Coca-Cola's revenue in recent years has grown steadily. Competition in the
beverage market is intense. Coca-Cola needs to focus on the market and develop its business
strategies to generate revenue for the company. The strategy in Coca-cola Company effectively
used is marketing and advertising strategy, so I strongly believe in the future the company
continuously conduct such more effective strategy. Internal and external factors also affect
Coca-Cola Vietnam. Organizational structure is very important for Coca-Cola, departments
need to have cohesion and cooperation to help Coca-Cola Vietnam develop and achieve their
goals.

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Coca-Cola should promote its marketing strategy, create more fresh and unique ads to attract
customers to bring in profits. Need to focus on the needs of customers and care to keep them
with your brand. In the context of too much competition in beverage, customer retention is
extremely important
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