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