Vinamilk: Evaluating Management and Leadership in the Dairy Industry

This report provides a detailed analysis of the management and leadership of Vinamilk, Vietnam's largest dairy company. It begins with an overview of Vinamilk's organizational structure, highlighting its functional structure and key departments. The report then defines management and leadership, outlining their respective roles, functions, and associated theories. It contrasts management and leadership perspectives, emphasizing the differences in their approaches and actions. The core of the report examines the leadership and management styles of key figures within Vinamilk, including Mrs. Bui Thi Huong and Mrs. Mai Kieu Lien. It explores their roles, functions, and the application of management theories such as MBO within the company. The report also analyzes how these leaders have contributed to Vinamilk's success, including its expansion into international markets and its response to challenges such as the COVID-19 pandemic. The report concludes by highlighting the importance of both effective management and strong leadership in driving Vinamilk's continued growth and success in the dairy industry.

Name: Vu Khanh Huyen
Class: F13B
ID: F13-274
1. An introduction to the Vinamilk organization management structure.
Vinamilk is Vietnam's largest dairy company, which was established in 1976 as the state-
owned Southern Coffee-Dairy Company. In 1993, it became the Vietnam Dairy company and in
2003, the company changed legally its name to Vietnam Dairy Products Joint Stock Company. In
2013, Vinamilk to be concluded in the top 500 Vietnamese biggest private organizations and
global 2000 the world's biggest public organizations in 2018 (Vinamilk, 2021).
While the global economy was impacted by COVID-19, the export revenues of Vinamilk
reached nearly 2.5 trillion VND (US$105.37 million) over the first half of 2019 (Vietnamnews,
2019). Vinamilk announced total revenue in the first quarter of 2020 up to VND 14.2 trillion
(Vietnamnews, 2020). It can be seen that in the future, the business will be grown and more
successfully achieved with the right management and leadership of the company.
Vinamilk's main activities are to produce and distribute condensed milk, powdered milk,
soy milk, ice cream and yogurt, cheese, juice of the fruit, coffee, and other dairy products.
Vinamilk products are sold to the Middle East, Cambodia, the Philippines, and Australia, for
example, powdered milk and condensed milk (Vinamilk, 2021). Vinamilk is a big company in
the Vietnamese market and also reaches the international markets. It can be seen that Vinamilk
also has a diverse organizational management structure and leadership departments.
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Figure 1: Vinamilk's organization structure
(Source: Vinamilk, 2021)
Vinamilk has a tall organizational structure which can be seen in the operational
departments such as Planning, Finance, R&D, Sales, Marketing department work closely with
the Director as well as Chief Executive. Being a functional structure, its CEO of each functional
department work closely and report directly to the Board of Directors. They are usually reminded
of that connection among individuals and coordinated efforts among operating groups which are
critical for development and success.
2. Definition, roles, functions, and management theories
2.1 Definition
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Management is the organizational process that consists of strategic strategy, targets,
resources management, the allocation of human and financial assets required to accomplish the
objectives, and measuring outcomes. Management often involves record and save data and
information for future use or those within the enterprise for monitoring (Kaehler and Grundei,
2019).
Management is guidance about human resources within a dynamic, challenging
organization until its aims are met to the satisfaction of those served, and with great moral on the
part of those rendering the service (Lawrence, 2012).
In general, based on those definitions, it can see that management all have in common is
the processes or operations that use human resources like finances tangible, HR to achieve the
business objectives.
2.2 Roles
According to Mintzberg (1971) there are 10 main roles of management as below:
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3. Definition, roles, functions, and leadership approaches
3.1 Definition
Leadership is the process by which an individual impacts others to achieve a goal and
leads the company more attached and closely (Northouse, 2007).
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According to Gary Yukl, leadership is a process that helps people understand and agree
on what is needed and how it is achieved, and a process of facilitating actions by individuals and
groups to achieve joint goals (Gary Yulk, 2006).
In short, the two definitions above have things in common - one person influences others
to achieve a particular goal. Leaders perform this process by applying their knowledge and
leadership skills, also known as the leadership process. However, each person has certain traits,
and these characteristics influence their actions (leadership traits) (Jago, 1982). Also, for this
reason, there are some conceptions that leadership is innate.
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