Case Study: Management and Leadership in Vinacafe Bien Hoa (2021)

This assignment presents a comprehensive case study on Vinacafe Bien Hoa Joint Stock Company, a leading instant coffee producer in Vietnam. It begins with an introduction to the company, including its history, mission, vision, core values, product offerings, and organizational structure. The study then delves into a comparison between the roles and characteristics of managers and leaders, highlighting the differences between management and leadership. It further examines the application of management and leadership roles within Vinacafe, supported by relevant theories and concepts. The assignment also explores the application of theories such as "chaos theory" and "management by objectives" to Vinacafe, analyzing their impact on the company's growth and sustainable performance. Finally, the assignment concludes with an analysis of the impact of managers and leaders on Vinacafe, along with recommendations for future improvements, providing a detailed overview of the company's operations, leadership, and strategic decisions.

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MANAGEMENT AND OPERATIONS ASIGNMENT 1
Lecturer: Ph.D Pham Hoang Hien
Student name: Nguyen Tuan Kiet
Assignment Title: Case study: “Vinacafe Bien Hoa Joint Stock
Company”
Submission date: 22nd April ,2021

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Table of Contents
Introduction: ............................................................................................................................................... 3
1. Conduct an introduction to the organization and management structure: ................................... 4
1.1 Company name, Address (locations), type of business: ........................................................... 4
1.2 State the mission, vision, and core values of the company and what products or services it
is currently providing to its customers and clients: ............................................................................. 5
1.3 History development, company structure, cornerstones/milestones as the company grows
and changes over time and important achievements: .......................................................................... 7
1.4 Disclose relevant financial data: The corporate profile should include revenues, profits,
assets and information on tax filings. Any mergers or acquisitions should also be noted:............ 13
1.5 Account for company policies and how relationships are maintained with investors,
shareholders and other stakeholders................................................................................................... 15
2. Define and compare the different roles and characteristics of a manager and a leader, highlight
the differences between management and leadership: .......................................................................... 16
3. Discuss and Explain the different roles of management and leadership in application to
different organizational situations, supported by theories and concepts: ........................................... 17
3.1 Define roles of management and leadership in business workplace: ................................... 17
3.2 Role of manager and leader in Vinacafe Bien Hoa Joint Stock Company: ......................... 19
4. What theories such as “chaos theory” and “management by objectives” apply to Vinacafe and
how these have supported growth and sustainable performance: ........................................................ 21
4.1 Chaos theory define: ................................................................................................................. 21
4.2 Management by Objectives: ..................................................................................................... 22
4.2.1 Define of MBO: ................................................................................................................. 22
4.2.2 Management by objectives process: ................................................................................ 22
5. Produce the conclusions on how managers and leaders have made an impact on Vinacafe
comapny and recommendations for future improvements: .................................................................. 24
Conclusion: ................................................................................................................................................ 26
References:................................................................................................................................................. 27

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Introduction:
In this assignment, the writer will present issues related to leadership and management, a
comparison between leadership and management based on the theory of "Chaos theory" and
"Management by Objectives" and the application Vinacafe case study. Firstly, in the
introduction, the writer will present basic information of the Vinacafe company such as the
introduction of the location, type of business, organizational structure, mission, vision,
development history, financial situation, etc. In the next section, the writer will analyze the main
purpose of the article, compare the differences and roles of managers and leaders, and clarify the
difference between management and leadership, and apply to the Vinacafe company, talking
about the responsibilities and the importance of managers and leaders in the company. In the
next section, the writer will continue to analyze the "Chaos theory" and "Management by
Objectives" and analyze them, thereby outlining the benefits of the company applying these two
theories. Finally, the writer will explain the impact of management and leadership on Vinacafe
and make suggestions for future improvement.

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1. Conduct an introduction to the organization and management structure:
1.1 Company name, Address (locations), type of business:
The precursor of Vinacafe Bien Hoa is Coronel Coffee Factory, established in 1969 with a
design capacity of 80 tons of instant coffee/year with the entire machinery system imported from
Germany. In 1975, Coronel Coffee Factory was renamed Bien Hoa Coffee Factory. On
December 29, 2004, Bien Hoa Coffee Factory was transformed from a state-owned enterprise to
a Joint Stock Company and renamed Vinacafe Bien Hoa Joint Stock Company (Vinacafe BH).
Vinacafe Bien Hoa is considered the No. 1 instant coffee producer in Vietnam, successfully
developed two brands of Vinacafe and Wake-Up, accounting for 41% of the instant coffee
market share. In addition, Vinacafe Bien Hoa is also the national leader in product quality,
business efficiency, technology innovation, creation, and the successful application of scientific
and technical advances. (Vnr500,2020)
In addition, the product distribution system of Vinacafe Bien Hoa (under Masan's beverage
distribution system) is considered the strongest, deepest and widest distribution system in the
country with 130,000 beverage retailers, 3,000 employees sales, 8 distribution centers to ensure
the distribution of goods in 63 provinces and cities nationwide. In the coming time, the Company
will continue to maintain instant coffee as the main product and build its reputation not only
domestically but also in the world. (Vnr500,2020)
Company's head office: Bien Hoa 1 Industrial Park - An Binh Ward - Bien Hoa City - Dong
Nai Province. (Vnr500,2020)
The production plants are located at:
- Bien Hoa II Coffee Factory Branch: Lot C I, III -3 + 5 + 7, Long Thanh Industrial Park, Tam
An Commune, Long Thanh District, Dong Nai Province.
- MSI branch - Vinacafé Bien Hoa Joint Stock Company: Lot 6, Tan Dong Hiep A Industrial
Park, Di An City, Binh Duong Province.

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1.2 State the mission, vision, and core values of the company and what products or
services it is currently providing to its customers and clients:
 Mission of Vinacafe company:
Vinacafé Bien Hoa will make, market, and sell unique, high-quality brands of beverage and food
products that satisfy consumers at home and abroad. We will do this by understanding the needs
of our consumers, customers, and other stakeholders and by operating within a clearly defined
set of values. (Annual Report,2016)
 Vision of Vinacafe company:
Vinacafe's 10-year plan (2015-2025):
+ Maintaining a leading position in the instant coffee market in Vietnam.
+ Export of processed coffee to key markets.
+ Gradually penetrating the market for beverages originated from coffee and other food products.
+ New products are brought to the market, making coffee a popular and daily drink throughout
Vietnam.
+ Developing brand name of VINACAFÉ, WAKE-UP widely, strong, enough for development.
(Annual Report, 2020)
 Core value of Vinacafe:
In working to achieve our overarching objective, we will adhere to certain principles in the
conduct of our business. Specifically, we will:
1) Maintain instant coffee products as the main product.
2) Find ways to consistently apply the international practice to corporate governance issues.
3) Conduct our financial operations carefully, always aware that effective risk management,
preserving assets, and maintaining liquidity is essential to our success.
4) Develop and market products to meet customer needs, build a company's reputation for
competitive pricing, stable product quality, good customer service along with product
development, and new service.
5) Invest in people, develop employees' competencies and give them the opportunity to
share in the shared prosperity of the business.
6) Respect food safety and environmental standards. (Vinacafebienhoa,n.d)

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 List of products the company is providing to customers:
1) Vinacafe and Wake-up instant coffee brands:As the main product line of the Company
from the very first day of its establishment, the 3-in-1 instant coffee product (with three
main ingredients: coffee, sugar, cream powder) was consumed by consumers. Received
as both a familiar and strange gift when it is possible to immediately enjoy a delicious
original coffee without waiting for every drop of coffee like a filter, but the delicious,
rich taste is not inferior - Opening a new breakthrough and success for Vinacafe Bien
Hoa. (Annual Report,2020)
2) Vinacafe and Wakeup branded roasted coffee:
Pure coffee from pure 100% Robusta and Arabica for pure coffee flavor.
3) Nutritional grains under the brand name B'fast:

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4) Wake-up Coffee 247 energy drinks:
1.3 History development, company structure, cornerstones/milestones as the company
grows and changes over time and important achievements:
 History development of Vinacafe Bien Hoa Joint Stock Company:
+ 1968: Mr. Marcel Coronel - Coronel Coffee Factory:
In 1968, Mr. Marcel Coronel, French nationality started
construction of CORONEL Coffee Factory in Bien Hoa
Industrial Park (now Bien Hoa 1 Industrial Park), Dong Nai
Province. to reduce the cost of transporting coffee to France.
(Annual Report,2020)
+ 1975: Bien Hoa Coffee Factory was born:
When Vietnam was reunified, Mr. Coronel's family
returned to France. They handed over the factory to the
provisional Revolutionary Government of the Republic
of South Vietnam. Coronel Coffee Factory was
renamed Bien Hoa Coffee Factory and assigned to the
General Department of Food Industry to manage.
(Annual Report,2020)

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+ 1977: first successful batch of instant coffee:
On the occasion of the 2nd anniversary of the
reunification of Vietnam, the first batch of instant coffee
came out of the oven with the joy of all employees of
Bien Hoa Coffee Factory. (Annual Report,2020)
+ 1978: Started export of instant coffee to foreign countries:
Since 1978, Bien Hoa Coffee Factory started to export
instant coffee to countries in the former Soviet Union
and Eastern Europe.(Annual Report,2020)
+ 1983: Vinacafé brand was launched:
Along with the production address listed on each product
package, the name "Vinacafe" began to appear in the Eastern
European market starting from 1983, marking the birth of the
Vinacafe brand. (Annual Report,2020)
+ 1990: Back to conquer Vietnamese consumers:
In 1990, Vinacafé officially returned to Vietnam market
although some products of Bien Hoa Coffee Factory were
sold in this market before. (Annual Report,2020)

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+ 1993: The first product: 3-in-1 instant coffee is born:
The solution of adding sugar and cream powder to pre-
packaged coffee in small packages has helped Vietnamese
people satisfy the habit of drinking coffee with milk for the
first time without having to wait for the coffee to drip through
the filter. (Annual Report,2020)
+ 1998: production expansion, second coffee factory construction:
The second instant coffee processing factory was
started construction on the premises of the old
factory. This factory has a design capacity of 800
tons of instant coffee/year, 10 times larger than
the old factory. (Annual Report,2020)
+ 2004: Equitization, Vinacafe Bien Hoa Joint Stock Company was established:
On December 29, 2004, Bien Hoa Coffee Factory
transformed the type of enterprise - from a state-owned
enterprise to a joint-stock company. (Annual
Report,2020)

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+ 2010: On the rise, build a third factory in Long Thanh Industrial Park:
On December 15, 2010, Vinacafe Bien Hoa Joint
Stock Company started the construction of an instant
coffee processing factory on a land of nearly 5
hectares in Long Thanh Industrial Park, Dong Nai
with a capacity of 3,200 tons of coffee/year. (Annual
Report,2020)
+ 2011: Listed shares on the stock exchange:
On January 28, 2011, all 26,579,135 shares of Vinacafe Bien Hoa Joint Stock Company,
equivalent to 100% of the charter capital of VND 265,791,350,000, were officially listed on the
Ho Chi Minh City Stock Exchange. (Annual Report,2020)
+ 2012: Consolidate the distribution network of Vinacafe Bien Hoa and Masan Consumer:
In the first quarter of 2012, merging the two distribution
systems of Vinacafe Bien Hoa and Masan Consumer to form
a common distribution system, which is growing, spreading,
and operating effectively. (Annual Report,2020)
+ 2013: Operating instant coffee production line at Long Thanh Factory:
In the second quarter of 2013, the Company started to test an instant coffee production line at
Long Thanh Factory. (Annual Report,2020)
+ 2014: Confirmed the position of two key brands: Vinacafe and Wake-up:
Early March 2014: By changing the look of new packaging, the
Company reintroduced the traditional golden milk coffee products.
With the aim of diversifying products and developing new products
originating from coffee, on March 30, 2014, Vinacafe Bien Hoa
launched the coffee-flavored energy drink Wake-up Coffee 247.
(Annual Report,2020)

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+ In 2017: Vinacafe is one of 6 recognized brands in Vietnam:
Vinacafé's brand name is officially recognized by the Ministry of Science and Technology and
the International Trademark Association (INTA) as a famous trademark in Vietnam. (Annual
Report,2020)
+ December 2020: Achieved the national brand:
Vinacafe continues to be selected as the enterprise with the National Brand for the period 2020 -
2022 and is also a proud enterprise of achieving the National Brand 7 times in a row.
 Company structure of Vinacafe Bien Hoa Joint Stock Company:

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Figure: Vinacafe’s Company Structure (vinacafebienhoa,2016)
According to the diagram, the Company's organizational structure includes:
1) General Meeting of Shareholders;
2) Board of Directors;
3) Supervisory Board;
4) Executive Board (Board of Directors);
5) Functional Departments.
+ The General Meeting of Shareholders, including all shareholders with voting rights, is the
highest decision-making body of Vinacafé Bien Hoa Joint Stock Company. The General Meeting
of Shareholders elects the Board of Directors, the highest governing body. The General Meeting
of Shareholders also elects the Supervisory Board, assisting the General Meeting of Shareholders
to control the internal control of the company. The Board of Directors appoints the General
Director; Deputy General Director is in charge of the Administration and Chief Accountant to
directly run the Company. Vinacafe Bien Hoa has a fairly complete structure of specialized
departments and 03 factories to meet the company's current and future production and business
needs. (Annual Report,2020)
+ The Board of Directors decides all important issues related to the Company that is not under
the authority of the General Meeting of Shareholders and is responsible for supervising and
directing the General Director and other managers in operating the daily business of the
Company. Currently, the Board of Directors of the Company consists of 6 members, operating
for a term of 5 years, the current term of the Board Directors is from 2020 to 2025. (Annual
Report,2020)
+ To supervise financial activities of the Company, on behalf of shareholders, supervise the
legality of activities of the Board of Directors, Board of Management, and protection of interests
of the Company and shareholders. The General Meeting of Shareholders elected the Board of
Supervisors, the Supervisory Board of the Company includes 03 members, of which all 03
members have financial expertise, operating for a term of 5 years. The current term of the
Supervisory Board is from 2020 to 2025. (Annual Report,2020)
+ The Executive Board of the Company includes 03 members (01 General Director, 01 Deputy
General Director in charge of expertise, 01 Chief Accountant). The Chairman of the Board of
Directors and the General Director are also the legal representatives of the Company. (Annual
Report,2020)

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1.4 Disclose relevant financial data: The corporate profile should include revenues,
profits, assets and information on tax filings. Any mergers or acquisitions should
also be noted:
Below is the Income Statement and Balance Sheet of Vinacafe Bien Hoa Joint Stock Company.
(Investing,2021)
 Income statement of Vinacafe Bien Hoa Joint Stock Company: (Unit: Billion VND)
Income statement
For year ending December 31, 2020
Total Revenue
Cost of Revenue, Total
949,166.97
647,251.34
Gross Profit 301,915.63
Total Operating Expenses 636,835.07
Selling/General/Admin. Expenses, Total
Research & Development
Depreciation / Amortization
Interest Expense (Income) - Net Operating
Unusual Expense (Income)
Other Operating Expenses, Total
7,818.64
-
-
-18,234.91
-
-
Operating Income 312,331.9
Interest Income (Expense), Net Non- Operating
Gain (Loss) on Sale of Assets
-
-
Net Income Before Taxes 312,331.9
Provision for Income Taxes 59,440.85
Net Income After Taxes 252,891.05
Minority Interest
Equity In Affiliates
U.S GAAP Adjustment
647.33
-
-
Net Income Before Extraordinary Items
Total Extraordinary Items
253,538.38
-
Net Income 253,538.38

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Balance sheet of Vinacafe Bien Hoa Joint Stock Company: (Unit:Billion VND)
Balance sheet
December 31, 2020
Total Current Assets 1,619,382.38
Property/Plant/Equipment, Total – Net
Property/Plant/Equipment, Total – Gross
Accumulated Depreciation, Total
466,968.31
1,098,095.2
-631,126.89
Goodwill, Net
Intangibles, Net
Long Term Investments
Note Receivable - Long Term
Other Long Term Assets, Total
14,720.39
309.28
-
5
30,393.99
Total Current Liabilities 628,116.93
Accounts Payable
Payable/Accrued
Accrued Expenses
Notes Payable/Short Term Debt
Current Port. of LT Debt/Capital Leases
Other Current liabilities, Total
162,459.76
-
44,107.05
317,243.74
-
104,306.37
Total Liabilities 619,702.83
Total Long Term Debt
Long Term Debt
Capital Lease Obligations
Deferred Income Tax
Minority Interest
Other Liabilities, Total
-
-
-
-
-13,639.77
52,25.67
Total Equity 1,512,076.51
Total Liabilities & Shareholders' Equity 2,131,779.34
Total Common Shares Outstanding 26.58
Total Preferred Shares Outstanding -

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1.5 Account for company policies and how relationships are maintained with investors,
shareholders and other stakeholders.
Relationships are maintained with investors, shareholders and other stakeholders:
 Principle 14: Rights of shareholders:
The Company recognizes and respects the rights of the shareholders and owners of the
Company.
The Company has ensured fair and appropriate treatment for each shareholder through accurate,
transparent and timely information disclosure. The Company focuses on the completeness of
disclosure so that shareholders can make informed decisions at the shareholders meeting,
including voting and expressing their opinion on significant changes and select members of the
Board of Directors based on accurate, complete, transparent, and fairly shared information.
(Annual Report,2016)
 Principle 15: Communicate with Shareholders:
Communication with shareholders through Investor Relations, who work closely with the Board
of Directors to ensure positive communication with shareholders through provide timely
information.
The unit has held a number of meetings during the year, especially after the quarterly and annual
earnings results are announced, so that investors can question the Board of Directors on finance,
marketing or war comb. The Investor Relations Department also meets regularly with investors
to communicate the Company's policies and strategies so that they understand the Company's
operations. Investor Relations also provides timely details through the Company's website.
The Unit also reports to the Board of Management on investors' opinions and concerns. Contact
information for Investor Relations is presented in the Investor Information section of this Annual
Report and is also available in the Investor Relations section of the Company website. (Annual
Report,2016)
Vinacafe can clearly understand the concerns and expectations of investors, shareholders and
stakeholders. They always encourage dialogue with investors as a way to understand the risks
and opportunities the company will face. One of the best things is that Vinacafe has to listen to
shareholders and investors because they make reasonable conclusions through deep
understanding of the subject, through which Vinacafe can understand thoughts and make the best
fit for the company's future
Vinacafe should communicate everything the company wants to achieve and strengthen
shareholders' confidence in Vinacafe's ability to lead the company and the vision of Vinacafe's
leadership and management. Must make Vinacafe's enthusiasm, vision and mission known to
stakeholders because investors and shareholders are always looking for tenacious, enthusiastic

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businesses with a clear business strategy and Vinacafe must demonstrate that they can run the
company through the mission envisioned. (Annual Report,2016)
2. Define and compare the different roles and characteristics of a manager and a
leader, highlight the differences between management and leadership:
Leader and manager. There is always a buzz when we talk about a leader and the manager.
Leadership is a skill and the person who possess this ability is known as a LEADER. On the
other hand, Management is a discipline, and the practitioner of this discipline is known as the
MANAGER.
Leader and manager have a great role to play in any organization, in the sense that a leader is the
one who inspires, encourages and influence his men, to work willingly, in the attainment of the
organization’s objectives. On the other hand, a manager is an important link between the firm
and its stakeholders, i.e. employees, customers, suppliers, shareholders, government, society, and
so forth. He is the one who performs basic managerial functions. (Surbhi S,2018)
 Leader:
A leader is a person who influences his subordinates to achieve a specified goal.
A leader is someone who can see how things can be improved and who rallies people to move
toward that better vision. Leaders can work toward making their vision a reality while putting
people first. Just being able to motivate people isn’t enough — leaders need to be empathetic and
connect with people to be successful. Leaders don’t have to come from the same background or
follow the same path. Future leaders will actually be more diverse, which brings a variety of
perspectives. Of course, other people could disagree with my definition. The most important
thing is that organizations are united internally with their definition of leadership.
(Keydifferences,2021)
 Manager:
A manager is an individual that supervises both activities and people within a given organization.
In other terms, it is the person in charge of overseeing things that to get done.
The manager is an organization manager so that he is responsible for planning, organizing,
directing, coordinating and controlling. They are the ones who get the job and are done by the
staff through a number of ways and competent to hire or fire that employee. There are many
different types of manager available in a company like the top manager, the function manager,
the project manager, and the personnel manager. (Surbhi, 2018)
 Leadership and Management:
People often mistake leadership and management as the same thing but in essence, they are very
different. The main difference between the two is that leaders have people that follow them,
while managers have people who simply work for them. Particularly in small businesses, for a
small business owner to be successful they need to be both a strong leader and manager to get
their team on board with working towards their vision of success. Leadership is about getting

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people to comprehend and believe in the vision you set for the company and to work with you on
achieving your goals, while management is more about administering and making sure the day-
to-day activities are happening as they should. (Circlebizz,n.d)
Leadership and management must go hand in hand. They are not the same thing, but they are
necessarily linked and complementary to one another. Any effort to separate the two within an
organisation is likely to cause more problems than it solves. For any company to be successful, it
needs management that can plan, organise and coordinate its staff, while also inspiring and
motivating them to perform to the best of their ability. (Circlebizz,n.d)
Below is a table describing the differences between management and leadership:
Management Leadership
Managers give directions Leaders ask questions
Managers have subordinates Leaders have followers
Managers use an authoritarian style Leaders have a motivational style
Managers tell people what to do Leaders show people what to do
Managers have good ideas Leaders implement good ideas
Managers react to change Leaders create change
Managers try to be heroes Leaders make heroes of everyone around them
Managers exercise power over people Leaders develop power with people
3. Discuss and Explain the different roles of management and leadership in application
to different organizational situations, supported by theories and concepts:
3.1 Define roles of management and leadership in business workplace:
1) Leader invents or innovates while a manager organizes:
A leader often gives new ideas to change the organization or moves to a progressive mindset.
Leaders often have eyes “ahead of time” developing new techniques and strategies for the
organization, they have extensive knowledge of almost all fields, grasping business trends and
having clearly about purpose and vision
The manager only maintains what is set up, the manager only supports the leader by monitoring
employees and organizational processes in the organization, helping employees to properly
implement what the leader sets and prevent chaos in the organization. (Avantika,2018)

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2) Leaders create vision, managers set goals:
Leaders draw a picture they feel and inspire their subordinates to make that vision a reality. They
think beyond what individuals do. They know that higher functional groups can accomplish more
work together than self-employed individuals.
Managers focus on setting up, measuring calculations and achieving goals. They control and
manage cases to achieve or exceed their goals. (Insid,n.d.)
3) Leaders inspire and trust while managers rely on control:
A leader must motivate employees by inspiring and motivating them to try their best and know
how to create a suitable pace of work
A manager who controls employees by relying on job descriptions to establish employees
controlling , requiring managers to understand their subordinates to do their jobs effectively.
(Avantika,2018)
4) Leaders accept risks, managers control risks:
Leaders are ready to challenge new things even if they can fail miserably. They know that failure
is a step on the path to success.
As for managers working to reduce the risk of happening to them. They seek to avoid or control
problems rather than embrace them. (Anon, 2019)
5) Managers often think short-term but leaders think long-term:
Leaders have their intention, they do what they say, maintain motivation towards a big goal,
think about the next stages to orient the ultimate goal.
On the contrary, managers work on short-term goals, seeking superiors’ recognition of abilities
and awards. (William,2016)
6) Leaders build relationships and communities, managers build systems and
processes:
“Building relationships is one of the strongest skills sets related to leadership effectiveness”
(Jean Leslie,2017)
Leaders focus on people-all parties involved in realizing their vision. Leaders spend most of their
time with stakeholders and building loyalty, trust with promise.
Meanwhile managers focus on the structure needed to establish and achieve goals. They focus on
the analytical and assurance systems available to achieve the desired results, they work with
individuals and their goals. (William,2016)

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7) Leaders have subordinates, managers have employees:
Leaders have people who go beyond them, who follow them to become passionate about their
work and help them build their brand and achieve their goals.
With the manager, the staff follow the instructions and find ways to please the boss. (Surbhi,
2018)
3.2 Role of manager and leader in Vinacafe Bien Hoa Joint Stock Company:
1) Key leader of Vinacafe Company: Mr. Doan Quoc Hung- General Manager of
Vinacafe:
New General Director of Vinacafe Mr. Doan Quoc Hung was born in 1972, has a chemical
engineering degree. He was appointed as Deputy General Director of VCF in April 2015. Before
that, Mr. Hung worked at MeKong Inspection Company, Fujitsu Vietnam Company, Sa Tien
International Transport Joint Stock Company, Vitec Food Company, Viet Tien Food Technology
Joint Stock Company, Company Limited Masan Industry, etc
2) Role of leader in Vinacafe company:
+ Leaders illuminate and impart the vision and mission of Vinacafe to employees:
This is one of the first steps that the leader of Vinacafe must understand and establish the reasons
that the organization must exist and fulfill. Mission and vision must be illuminated and
communicated by leaders to all employees. Employees will understand their roles and
obligations if they understand the company's vision and mission, giving them an understanding
of the company's current and future direction. (Annual Report, 2017)
+ Leader relations with employees by heart:
At Vinacafe, the leaders' dedication and enthusiasm give the individual motivation and
inspiration to perform at a high level as the leaders shape the overall goals of the organization. In
addition, the leaders encourage the individuals within the company to openly contribute ideas
and discuss new ideas in an active and dynamic working environment. To increase cohesion,
individuals are encouraged to take advantage of different experiences and new thinking.
Moreover, the leader has an open and engaged relationship with the employees in the company.
This relationship shows that each employee is an indispensable part of the organization. From
here, create a connection between personal goals and company goals and create a sense of
ownership among individuals. (Hendrick, 2018).
+ Leaders impart for employees the best way to accomplish the company's goals:
Leaders impart the approaches and plan to the employees of Vinacafe. They are to imbibe the
qualities and the way of life in the association since these assume a vital part in guaranteeing the
accomplishment of the organizational goals. Moreover, leaders give an organized approach. The
organized approach can produce an arrangement of action that most effectively meets the

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company goals. An inclusive arranging process additionally gives the chance to individuals to
identify, add to, comprehend, and accomplish well-defined objectives (HCA, 2013).
3) Manager of Vinacafe company: Ms. Phan Thi Thuy Hoa- Chief Accountant of
Vinacafe Bien Hoa Joint Stock Company:
Date of birth: November 26, 1977.
Qualification: Bachelor of Economics.
Working process:
1999 to 2000: General accountant - Rong Viet Trading Co., Ltd - Rinnai Viet Nam
From 2001 to 2013: Chief Accountant - Viet Tien Food Industry Company Limited
From 2014 to now: Head of Accounting Department - Masan Consumer Joint Stock Company
From April 21, 2015: Chief Accountant of Vinacafé Bien Hoa Joint Stock Company.
4) Role of manager in Vinacafe Company:
+ Managers must monitor the activities of their subordinates to minimize risks can be
incurred:
According to Vinacafe's annual report in 2016, the monitor is one of the jobs of managers such
as planning, motivating, organizing, and recruiting. If the monitoring is not tight or neglect it will
bring results that were not as originally planned. Minimizing the difference between plan and
reality is the general purpose of monitoring. At Vinacafe, managers must continuously monitor
the work of subordinates to minimize errors, thereby ensuring projects can be on the right track
and on schedule.
+ Managers must find ways to make every strategy well done, less risky:
Managers must run production activities in the Vinacafe spending plan and achieve the highest
Vinacafe benchmarks. Managers must ensure financial returns through innovation, development,
and delivery of a quality mix of products. This will be driven by ensuring that all work strategies
are evaluated and best implemented so that Vinacafe can grow its business in providing excellent
customer service (Chen, 2017).
+ Management coaching staff to follow a pre-established process:
One of the important parts of management is coaching. Managers will guide the subordinates
about the direction of Vinacafe's business and how to do it. In a simpler way, they are instructors
and trainers for their subordinates. The purpose of the training is to grow the business of
Vinacafe by enhancing the human potential of the business (Rapids, 2017).

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4. What theories such as “chaos theory” and “management by objectives” apply to
Vinacafe and how these have supported growth and sustainable performance:
4.1 Chaos theory define:
Chaos is the science of surprises, of the nonlinear and the unpredictable. It teaches us to expect
the unexpected. While most traditional science deals with supposedly predictable phenomena
like gravity, electricity, or chemical reactions, Chaos Theory deals with nonlinear things that are
effectively impossible to predict or control, like turbulence, weather, the stock market, our brain
states, and so on. These phenomena are often described by fractal mathematics, which captures
the infinite complexity of nature. Many natural objects exhibit fractal properties, including
landscapes, clouds, trees, organs, rivers etc, and many of the systems in which we live exhibit
complex, chaotic behavior. Recognizing the chaotic, fractal nature of our world can give us new
insight, power, and wisdom. For example, by understanding the complex, chaotic dynamics of
the atmosphere, a balloon pilot can “steer” a balloon to a desired location. By understanding that
our ecosystems, our social systems, and our economic systems are interconnected, we can hope
to avoid actions which may end up being detrimental to our long-term well-being.
(Fractalfoundation,2019)
Chaos theory is extremely useful in guiding behaviors in an organization that depends on project-
based work for its vitality. The theory informs us that small initial conditions can have a huge
impact on project outcomes; however, what actually happens is unpredictable. Nature, while
chaotic, follows regular patterns, as does human behavior in organizations. An organic approach
to the implementation of project management implies that we can learn tremendous lessons from
nature on how to achieve better, more harmonious outcomes from our projects.
Chaos theory suggests that management should place more emphasis on adaptability, initiative
and entrepreneurial creativity to cope with a future that is inherently unknowable.
We are living in the industrial age 4.0 and the influence of globalization. Therefore, businesses
like Vinacafe are affected by many dimensions of the world economy, affected by
macroeconomics, under pressure of industry competition, etc. The business environment always
has hidden reasons that cannot be foreseen by businessmen. So, according to the chaos theory,
nothing is permanent, yesterday's way of doing business only relates to yesterday. In order to
survive and thrive, there is no other way, Vinacafe must learn to adapt, manage risk and manage
change to grow its business. Mr. Doan Quoc Hung (general manager) of Vinacafe must learn
how to limit uncertainty, Mr. Hung should identify current approaches and set long-term goals in
the future. At the same time maximizing the short-term operational capacity is essential for
managers and leaders. In addition, instead of considering chaos as undesirable, Ms. Hoa (Chief
Accountant) of Vinacafe must know how to creatively exploit the natural resources available in
the organization that exploits and manages them to be effective. Explore the existing or potential
strengths of both individuals and companies, laying the basis for good results with minimal
energy. This is an approach that helps not overlook the talent of the organization and improve
Mr. Hung's leadership. Besides, trust is a necessary factor. Everyone knows running a business is
important, but leaders find it difficult to give up on certain important and important tasks.

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However, if the leader does not assign subordinates, they will surely make mistakes, only a small
mistake of them puts an entire organization at risk of collapse. The focus of managers and
leaders is on associating individuals and optimizing the best results for the company.
4.2 Management by Objectives:
4.2.1 Define of MBO:
Management by objectives (MBO) is a strategic management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both
management and employees. According to the theory, having a say in goal setting and action
plans encourages participation and commitment among employees, as well as aligning objectives
across the organization. (Investopedia,2019)
4.2.2 Management by objectives process:
Management by objective outlines the five steps that organizations should use to put management
techniques into practice.
Figure: Management by objectives process

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Step 1: Revise the Organizational Objectives:
In this step, the organization will set or revise its objectives for the next period. Most
organizations will use a 3-month (quarterly) planning period.
The first step is to either determine or revise organizational objectives for the entire company.
This broad overview should be derived from the firm's mission and vision.
The objectives of the organization should be revised when major events such as laws affect the
organization, or the company changes its vision or mission. Because of the importance and the
far-reaching influence of objectives which should be revised and updated at planned intervals.
For the Vinacafe company, it is extremely important to review the organizational goals. Mr.
Doan Quoc Hung is the general manager of Vinacafe as an executive and participant in the
organization's goals. He will consider and specifically ask questions: Are the company's goals
based on the company's vision and mission? What achievements will the company achieve in the
next stage, assessing the organization's current tasks and future plans
Step 2: Set Employee Objectives:
"Many people fail, not for lack of ability or brains or even courage, but simply because they have
never organized their energies around a goal."- Like Elbert Hubbert
Setting employee goals is definitely an art form on its own. And as a coach or a team leader, you
need to master this kind of art form. You need to guide the goal-setting process but also be able
to set individual goals that satisfy different expectation.
Goal setting is an uncomfortable process. It demands leader to predict the unforeseen, challenges
leader and their team, and makes you ditch the all too familiar comfort zone, which no one really
likes stepping out of. Nevertheless, it won't get any easier in the future. That's why it's crucial to
start setting and tracking goals with your team and employees now.
Leaders and managers should use the SMART tool (specific, measurable, acceptable, practical,
time-limited) to express this concept.
This is a multi-step process for Vinacafe, with Mr. Hung, together with his colleagues, will
discuss with his subordinates the projects to be completed within a time period and the budget
has been calculated and a resource is available upon their request. From here, Mr. Hung and his
staff will discuss the most possible options for the company and departments.
Step 3: Monitor:
In this role, managers regularly seek out information related to their organization and industry,
looking for relevant changes in the environment. Leaders also monitor their team, in terms of
both their productivity, and their well-being.
Monitoring progress has some advantages. It gives the employee and manager the opportunity to
rectify a situation should progress start to go off track. In the worst case, where a solution to the
problem can’t be found, it allows for proactive contingency planning.

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After Vinacafe's goals are shared with employees, employees will be encouraged to set their own
goals to achieve Vinacafe's big goals. This will help motivate employees more and empower
them.
Step 4: Evaluate:
Employee evaluation brings a lot of human resources benefits, helping Vinacafe's leaders and
managers to know their current capacity and level of dedication, determine the "way forward".
Specifically, employee evaluation will aim to:
 The job goal is always accurate, clear and measurable.
 The assessment of employees is intuitive and eliminates the emotional factor. From there,
it is possible to identify outstanding employees in a fair manner.
 Accurate evaluation will help them develop their highest working capacity.
 Update weaknesses in performance, thereby making adjustments in the KPI plan to
develop their expertise.
 Motivate and encourage employees to work better. Thanks to the assessment, the human
resources will grow stronger and the human resources will be allocated more
appropriately.
At this stage, the managers of Vinacafe will review whether each employee has successfully
fulfilled the company's goals, because loose supervision will bring undesirable results. Managers
must closely supervise at each stage
Step 5: Reward:
When choosing a method to evaluate the performance of employees, managers should always
remember that the end result has a positive impact on the motivation and increase the sense of
personal worth of people. Actual goals, positive feedback and listening are very important
elements for evaluation.
Following the completion of all phases, Vinacafe should hold a meeting where the manager
addresses employee benefits and offers an excellent opportunity for feedback. Both managers
and staff will benefit from this two-way feedback system. As the organization enters the next
management cycle, it can also contribute to improved target setting.
5. Produce the conclusions on how managers and leaders have made an impact on
Vinacafe comapny and recommendations for future improvements:
Conclusion:
The role of leaders and managers in the organization may be different, but they must go hand in
hand and support each other to jointly develop the common goal of a growing the organization.
Organizations need a clear organizational structure, maximizing human resources to manage and
lead can work easily.

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Effective leaders and managers will bring the best to the organization through their processes and
skills. A good leader can help a company on the verge of bankruptcy recover, a good manager
will raise employees' awareness of the organization's vision and goals.
Recommendation:
When preparing a sales-heavy project, it places and prioritizes trustworthy employees, handling
things calmly and team-thinking.
To implement a new project, leaders propose to improve the production department by
enhancing market forecasting, flexible production and business organization, in line with market
developments. Vinacafe should expand and exploit the existence in the value chain to create
added value.
In addition, Vinacafe is always in a competitive position with competitors such as Trung
Nguyen, Vinacafe need to constantly improve and innovate to improve productivity, product
quality, and competitiveness. The company needs to actively improve internal resources, highly
competitive products, thereby building a synchronous and modern steel industry. In addition,
Vinacafe needs to invest more in research and development to keep up with the new changes of
the market as well as the company's competitors.
Department leaders, when recruiting, must evaluate the candidate's core competencies such as
the ability to work in groups, know how to create value for the company before paying attention
to their attitudes.
As one of the largest beer enterprises in Vietnam. Vinacafe has to face many challenges by
Covid 19. Vinacafe needs to implement a business maintenance plan in order to minimize the
health risks of employees during work while maintaining stability. operation of the system.

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Conclusion:
In Vinacafe, employees are always encouraged to cooperate and develop together as the leading
cafe company in Vietnam and Asia. Vinacafe constantly strives to improve product quality and
bring jobs to millions of Vietnamese people. Vinacafe always knows how to harness the power
of its employees and use it in a timely manner. Chaos theory and management by objectives also
help organizations better manage their employees and their jobs. Each organization has its own
strategic thinking and a unique business secret that helps them promote their situation. The
company's business goes up, always innovate and be creative in order to keep up with today's
dynamic business conditions.

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Available at:https://www.vinacafebienhoa.com/con[Accessed 19 04 2020]tent/mission-and-core-
values/su-menh-va-cac-gia-tri
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thuong-hieu
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chuc?lang_ui=en
[Accessed 20 04 2020]
Investing,2020. “VCF Income Statement” [Online]
Available at:https://www.investing.com/equities/vinacafe-bien-hoa-jsc-income-statement
[Accessed 21 04 2020]
Tradingview,2019. “Financial statements” [Online]
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[Accessed 21 04 2020]
Investopedia,2019. “Management by Objectives (MBO)” [Online]
Available at:https://www.investopedia.com/terms/m/management-by-objectives.asp
[Accessed 21 04 2020]
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