Comprehensive Business Analysis: Vinacafe Bien Hoa Company

This report presents a comprehensive business analysis of Vinacafe Bien Hoa, a leading beverage company in Vietnam. The analysis covers the company's introduction, including its history as the first instant coffee company in Southeast Asia and its market leadership. It delves into the company's structure, ownership, type as a profit organization, purpose, vision, mission, core values, and objectives. The report examines Vinacafe's activities, size, scope, geographic locations, target customers, and the functions of the company, including its divisional structure and the relationships between its departments. It explores the company's market position, the relationship between size, scope, and objectives, and its financial performance, including revenue, assets, and liabilities. The report concludes that Vinacafe has significant potential for future success, emphasizing its achievements and contributions to the Vietnamese market. The report uses the 2019 annual report of the company for the data and analysis.

Table of Contents I.
INTRODUCTION:......................................................................................................................... 5
1. The chosen company’s introduction: ........................................................................................ 5
2. Profile of the business: ............................................................................................................ 5
3. The structure of the ownerships/ shareholders:........................................................................ 6
II. TYPE AND PURPOSE: .................................................................................................................. 6
1. Type of VINACAFÉ: .................................................................................................................. 6
2. Vinacafe’s purpose:................................................................................................................. 7
3. The activities of Vinacafé:........................................................................................................ 8
III. SIZE AND SCOPE: .................................................................................................................. 10
1. Size: ..................................................................................................................................... 10
2. Scope: .................................................................................................................................. 12
2.1. THE LOCATE OF GEOGRAPHIC: ............................................................................................ 12
2.2. THE MARKETS OF GEOGRAPHIC: ......................................................................................... 13
2.3. THE TARGET CUSTOMERS: .................................................................................................. 13
IV. EXPLANATION OF THE FUNCTIONS OF THE COMPANY: .......................................................... 14
V. CONCLUSION: .......................................................................................................................... 18
VI. REFERENCES:........................................................................................................................ 18

I. INTRODUCTION:
1. The chosen company’s introduction:
- Vinacafé Bien Hoa is the leading beverage company in Vietnam with a wide range of products
including instant coffee, nutritious cereals and bottled beverages.
- Vinacafé Bien Hoa is the first instant coffee company in Southeast Asia and was founded in 1968.
Moever, Vinacafé Bien Hoa is also keeping the market share No. 1 in instant coffee and the leading
position in branded beverage industry in Vietnam.
- In addition, Vinacafe Bien Hoa has a rich product portfolio including strong brands recognized and
trusted by consumers such as Vinacafe, Wake-Up, Café de Nam, Phil, Wake-Up 247 and Kachi.
2. Profile of the business:

II. TYPE AND PURPOSE:
1. Type of VINACAFÉ:
- Basically, a profitable organization exists with the main goal of making money and generating
profits and revenue. The profit earned will be kept in the business, itself, future reserves or shared
with the owner as dividends. In contrast, the nonprofit primarily focuses on the main goal of helping
the community and it only generates revenue and most of the profits will be used for social
purposes. The organization only cares about money when it is needed to keep it running. It can be
said that VINACAFÉ JOINT STOCK COMPANY is a profit organization. Because the company has
annual financial statements. According to the 2019 ANNUAL REPORT, Vinacafe Bien Hoa reached
VND 3,097 billion in net revenue and paid VND 681 billion in dividends
- Based on the ownership structure chart, it can be affirmed that Vinacafe is a private enterprise
owned by foreign and domestic shareholders.

2. Vinacafe’s purpose:
Vision: “Always innovating to revolutionize the way coffee is enjoyed by millions of Vietnamese
and the whole world with a unique, original Vietnamese coffee cup.”
Mission: “Vinacafé Bien Hoa will produce, market and sell unique and high quality beverage and
food brands, pleasing domestic and foreign consumers. The company will do this by understanding
the needs of consumers, customers and other stakeholders and by operating within a clearly defined
set of values.”
Core values:
 Maintaining the main product is instant coffee.
 Find ways to consistently apply international practices to corporate governance issues.
 Performing financial activities prudently, always aware that effective risk management,
asset preservation and liquidity maintenance are essential to the success of the company.
 Develop and market products to meet customer needs, build a company's reputation for
competitive prices, stable product quality, good customer service, and development new
products and services.
 Invest in people, develop employees' capabilities and give them the opportunity to share in
the common prosperity of your business.
 Respect for food safety and environment standards.

Corporate Objective: The overarching goal is to bring sustainable and outstanding financial
profits to the company's shareholders. The company will measure its achievement on this by
comparing it to peers.
3. The activities of Vinacafé: -
Towards the goal of a clean and beautiful environment, in the past year, vinacafe has built a clean
environment and open space in the workplace, namely the 5S program has been implemented in all
parts of the Company. The company (paying most attention to the production area) contributes to
improving work efficiency and environmental protection.

- In addition to protecting the environment, Vinacafé also takes care of the material and spiritual life
of workers through organizing health care for workers and creating a friendly and fair working
environment.
- Moreover, the company also contributes and sponsors charitable social programs and activities
organized by organizations. A typical example is the Social charity program named "Accompanying
with difficult areas" of the News Newspaper in cooperation with Vinacafé Bien Hoa Joint Stock
Company organized 60 gifts in cash and in kind for 60 poor pupils of Song Ma and Sop Cop districts
(Son La province).

and reached VND 2,225.3 billion. Short-term assets reached VND 1,651 billion, an

increase of 5%, which was mainly from customer receivables with VND 1,208 billion, up 10.8%.
Liabilities decreased from 814 billion VND to 783 billion VND. Moreover, equity increased from VND
1,402 billion to VND 1,442 billion. By the end of December 31, 2019, the Company had 286 officials
and employees, including 68 women, accounting for 24% of the Company's employees.
- According to a government decree (2020):
The Company's head office is located at Bien Hoa I Industrial Park, An Binh Ward, Bien Hoa
City, Dong Nai Province.
Vinacafe has a subsidiary, Café De Nam Joint Stock Company (formerly known as CDN
Trading Production Joint Stock Company), with its head office: Lot C I, III -3 + 5 + 7, Industrial
Park Long Thanh, Tam An commune, Long Thanh district, Dong Nai province.

2.3. THE TARGET CUSTOMERS:
- Vinacafé's goal is to create customers' trust in the company's products
and services and to satisfy all customers. In particular, the age group
between 18 and 25 and from 30 to 45 are considered as the target
market. With products directly related to the health of customers is the
product of Vinacafe, quality is always the issue that customers are most
concerned about. The product needs to conform to the requirements for
safe and hygienic food and the raw materials must ensure initial
resources. On the other hand, different customers will have different
differences and interests, but overall their preferences are always
changing, they may be willing to try a new product, a new flavor or even
the same product. products with a new layout design. In addition, one of
the most

important factors when choosing a product is price, a product of good quality and an acceptable
price compared to other products will be considered a successful product. The three factors
mentioned above are customer requirements for Vinacafe products.
Comparison of scope: Vinacafé is a large-scope company with consumption markets
both at home and abroad. That helps the company have a great source of revenue and
profit. In addition, it is easier for the company to attract large investors and good human
resources. On the other hand, companies with small scale, mostly operating only in the
country, will be limited in market as well as number of customers and revenue. If the
revenue is not large, it will be difficult to attract better investors and human resources.
The relationship between size, scope and objectives: With large market size and large
scope, Vinacafé will also set its company big objectives. It can be said that this helps the
company easily attract good investors and human resources. Therefore, the company has
many opportunities to accelerate the product consumption process, fully exploit the
potential of the market, business efficiency and production activities will be improved.
Therefore, the company will develop stably, increase market share, increase profits and
improve its position in the domestic and world markets.
VI. EXPLANATION OF THE FUNCTIONS OF THE COMPANY:

Figure 9. STRUCTURE MAP
- Vinacafe company has a divisionalstructure. This structure is an organizational design, in
which an organization is made up of semi-autonomous units called departments. Although
the departments have control of their day-to-day operations, they are still accountable to a
central agency that provides an overall strategy for the organization and coordinates the
performance of tasks between departments. The highest authority of the company is the
General Congress of Shareholders, which has the right to decide most issues according to
the duties and powers prescribed by the Law and the Charter of the company. The Board of
Directors appoints the General Director; Deputy General Director is in charge of
Administration and Chief Accountant to directly manage the Company. The Supervisory
Board supervises the policy pursued by the Managing Board, the Managing Board's
performance of its managerial duties and the company's general course of affairs, taking
account of the interests of all the company's stakeholders. This structure shows that
Vinacafe has organized functions, helping the company to manage its operations logically
and systematically

 The relationship between these departments: It can be said that
Vinacafe is one of the leading beverage brands in Vietnam, especially instant
coffee. To achieve that, the company must have a close association between the
parts. The marketing department will expand and promote the products to the
market to generate revenue for the company. Technical department manages and
inspects machines and production processes in combination with KCS department to
check product quality before putting it on the market; and the administrative
department will manage and recruit employees to ensure a good working process.
The revenue will be transferred to finance and trade department. Then the profits
will be aggregated by the finance department.

 The relationship between functions, objectives and organizational
structure:
- The functions, objectives and organizational structure are closely linked. Organizational and
operational functions are based on an organization based on its goals and organizational structure.
On the other hand, organizational structure affects the nature and rhythm of the overall function of
the organization. Organization functions do not work alone, they work collectively and create
superior values and work better in the company. The organizational function works better for
stakeholders to perform, revenue and performance. In particular, thanks to the good orientation and
the close relationship between the parts of the structure, the company seems to be on the right
track to achieving its goals. Vinacafé Bien Hoa has been selected as a National Brand Enterprise for
the period of 2018-2020, and is one of 20 businesses proud to win the National Brand 6 times in a
row. Moreover, profit increased significantly (especially after-tax profits distributed to shareholders)
and liabilities decreased year by year. Therefore, DISTRIBUTION STRUCTURE is appropriate and helps
the company to gradually achieve the objectives it is aiming at.
Advantages:
Allow each department of a company to be accounted separately for teams to be
flexible in generating ideas and actively working to achieve good results. However,
the departments still have close links and support each other to create a friendly
working environment and create corporate culture for the company.
In addition, each department undertakes a certain task, helping to increase
productivity, fast workflow,save time and ensure high work efficiency.
Moreover, the departments are flexible and do not interfere with other
departments in the context that the company changes a process.
- Disadvantages:
The dispersion of technical and professional competencies is sometimes
uneven or fosters unfair competition among departments.
Because often working individually on a department will lead to duplication
of ideas and similar products.
Lack of communication between departments leads to a lack of
understanding of the goals of other departments affecting the company
VII. CONCLUSION: -

According to the analyzed factors and some important factors, Vinacafe is a
company with the potential to become more and more successful in the future. For more than
50 years of establishment, Vinacafe has achieved many achievements and is on track to
become the No. 1 coffee brand in Vietnam. Vinacafe has almost fulfilled its mission of bringing
consumers to the world with unique and high quality food and beverage products. Moreover,
Vinacafe also benefits large and quite sustainable profits for shareholders. The company has
almost completed a significant part of its goals. In summary, we can see that Vinacafe is a
company with great potential to develop and invest worthy
VI. REFERENCES:
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giatri?lang_ui=en [Accessed 31 May.2020
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687c1c534d3419a6716d a5d0c141bb9d.pdf [Accessed 1 June.2020]
Vinacafe.(2019). Annual Report: THE LOCATE OF GEOGRAPHIC. [pdf]. Vietnam: Vinacafe, P.11.
Available at:
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