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)