Vinamilk: Analysis of Business Environment, Objectives and Functions

This report provides a detailed analysis of Vinamilk Joint Stock Company's business environment, objectives, size, scope, and legal structure. It examines the company's type, business objectives, and how its size, scope, and legal structure contribute to achieving these objectives. The report also explores the relationships among three important functions: marketing, finance, and human resources, highlighting the advantages and disadvantages of their interrelationships and their contributions to Vinamilk's business goals. Furthermore, the document references Vinamilk's organizational structure, financial performance, and strategic initiatives to support its analysis of the company's business environment and operational effectiveness. This comprehensive overview showcases Vinamilk's strategic approach to maintaining its leading position in the Vietnamese dairy market and its aspirations for global expansion.

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PROGRAM TITLE: Higher Nationals in Business
UNIT TITLE: Business and the Business Environment
ASSIGNMENT NUMBER: 1
ASSIGNMENT NAME: Assignment 1
SUBMISSION DATE: 3/10/2021
DATE RECEIVED: 3/10/2021
TUTORIAL LECTURER: Trần Thanh Thùy
WORD COUNT: 4090
STUDENT NAME: Phạm Thị Thanh Thanh
STUDENT ID: BKc12393
MOBILE NUMBER: 0963738302

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Summative Feedback:
Internal Verification:

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Table of Contents
I. General introduction to Vinamilk Joint Stock Company. .............................................................. 4
I. TYPE AND BUSINESS OBJECTIVES OF THE COMPANY (P1) .............................................. 4
1. Type of the company ....................................................................................................................... 4
2. Business objectives of the company ............................................................................................... 4
II. SIZE, SCOPE, AND LEGAL STRUCTURE OF THE COMPANY. ........................................ 5
1. SIZE, SCOPE, AND LEGAL STRUCTURE ............................................................................... 5
a. Size ................................................................................................................................................ 5
b. Scope: ........................................................................................................................................... 5
c. Legal structure ............................................................................................................................ 5
2. ANALYZE THE SIZE, SCOPE, AND LEGAL STRUCTURE CAN HELP THE
COMPANY ACHIEVE ITS BUSINESS OBJECTIVES. ................................................................... 7
a. SIZE ............................................................................................................................................. 7
b. SCOPE ......................................................................................................................................... 7
c. LEGAL STRUCTURE ............................................................................................................... 8
III. THREE IMPORTANT FUNCTIONS .......................................................................................... 9
1.THE RELATIONSHIP AMONG THE CHOSEN FUNCTIONS. .................................................. 9
a. Marketing and Finance .............................................................................................................. 9
b. Marketiing and Human Resource ............................................................................................. 9
c. Finance and Human Resource ................................................................................................. 10
2. ADVANTAGES AND DISADVANTAGES THAT EACH INTERRELATIONSHIP BRINGS
TO COMPANY ..................................................................................................................................... 11
a. Marketing and human resource .................................................................................................. 11
b. Finance and Human resource .................................................................................................. 11
c. Marketing and Finance............................................................................................................... 12
3. THE CONTRIBUTION OF EACH FUNCTION TO THE BUSINESS OBJECTIVE OF
THE COMPANY .................................................................................................................................. 13
a. Marketing .................................................................................................................................. 13
b. Human Resource ....................................................................................................................... 14
c. Finance ....................................................................................................................................... 14
References .................................................................................................................................................. 15

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I. General introduction to Vinamilk Joint Stock Company.
VietNam Dairy Products Joint Stock Company was established on the basis of Decision No
1552003QĐ-BCN dated October1, 2003 of the Ministry of Industry on the transformation of State-
owned Enterprise Vietnam Dairy Products Company into Vietnam Dairy Products Joint Stock
Company. The Company’s Bussiness Registration Certificate No 4103001932 was issued by the
Department of Planning and Invesment of Ho Chi Minh city on 2011-2013. Before December 1,
2003 the Company was a State-owned enterprise under the Ministry of Industry.
Full name: Vietnam Dairy Joint Stock Company
Abbreviation: VINAMILK
Address: No 10 Tan Trao, Tan Phu Ward, District 7, Ho Chi Minh City.
Fax: [phone]
Phone number: (028) 54 155 555
Products: Milk, drinks, nutritional products…
Services: Nutrition consulting, Customer care, Customer support after purchase.
I. TYPE AND BUSINESS OBJECTIVES OF THE COMPANY (P1)
1. Type of the company
Vinamilk is a joint stock company with legal status in accordance with the current legal status of
Vietnam.
The company was established by the method of transforming from a state-owned enterprise into a
joint-stock company organized and operated under the Law on Enterprises. Accordingly, the
Company has legal status from the Establishment Date, and the Shareholders are only liable for
the debts and other property obligations of the Company to the extent of the capital contributed to
the Company.
The company's charter capital is 20,899.554.450,000 billion VND.
Par value of shares is 10,000 VND/share. The total shares of the Company are equal to the Charter
Capital of the Company divided by the par value of the shares.
(Vianmilk, 2021)
2. Business objectives of the company
Mission: Vinamilk is committed to providing the community with top quality and high-quality
nutrition with its own respect, love and high responsibility for human life and society.

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Vision: To become the leading symbol of belief in Vietnam about nutrition and health products
serving people.
Goals: Become one of the top 30 largest dairy companies in the world.
Objectives: Vinamilk sets a revenue target of more than 62 trillion VND in 2021.
Taking the lead in innovation, creativity, and high applicability. Continuing the large and strong
domestic distribution system, increasing market share and maintaining Vinamilk's leading position
in the market.
Research and develop new products for the purpose of innovating, expanding and diversifying
products. Penetrate and cover rural areas with popular product lines.
II. SIZE, SCOPE, AND LEGAL STRUCTURE OF THE COMPANY.
ANALYZE THE SIZE, SCOPE, AND LEGAL STRUCTURE CAN HELP THE
COMPANY ACHIEVE ITS BUSINESS OBJECTIVES.
1. SIZE, SCOPE, AND LEGAL STRUCTURE
a. Size
Vietnam Dairy Products Joint Stock Company (“Vinamilk”, “Company”) announced its financial
statements for Q2/2021 with total consolidated revenue of VND 15,729 billion and consolidated
profit after tax of VND 2,862 billion. Accumulated in the first 6 months, the total revenue and
consolidated profit after tax completed 46.6% and 48.6% of the year plan, respectively. (Kiem sat
online, 2021)
b. Scope:
With a focus on raw material in 1991, this company concretized by taking the initiative in
production materials by building domestic raw material areas and combining with advanced
production lines to brings consumers high quality products. (Trang, 2019)
In the Vinamilk Dairy Association, Vinamilk is one of 10 enterprises with production and
processing lines. Self-sufficiency in a part of raw materials has helped Vinamilk to strictly control
raw materials and produce finished products.
Vinamilk currently owns 12 farms with a total herd of cows managed and exploited. Milk
production reached approximately 150,000 heads, helping to supply the market with over 1,000
tons of raw milk per day. (Vinamilk, 2021)
c. Legal structure

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Strategy
Subcommittee
Human Resource
Subcommittee
Compensation
Subcommittee
Audit
Subcommittee
General manager
Director of Internal
Control and Risk
Management
Internal control
director
Strategic
Planning
Director
Informtion
technology
director
International
business
executive
Domestic
sales
Executive
Marketing
Executive
Research
and
development
Executive
CEO
manufacturing
Management
Director of
Material Area
development
Supply chain
Excutive
Executive director of
HR- Administration
and External
Relation
GĐ Điều
hành Tài
chính
Administrative
Ancient General

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Vinamilk's organizational chart is presented in a professional manner and allocates departments in
a scientific and reasonable manner, specifically decentralizing the responsibilities of each member
and department in the company. The organizational chart helps us operate in the most effective
way, helping departments work closely together to create a strong Vinamilk. (Vinamilk, n.d.)
2. ANALYZE THE SIZE, SCOPE, AND LEGAL STRUCTURE CAN HELP THE
COMPANY ACHIEVE ITS BUSINESS OBJECTIVES.
a. SIZE
In order to become the leading symbol of nutrition and health products for the people, the staffs
have always researched and developed product strategies to bring satisfaction to domestic
consumers. and international.
On March 22, 2018, Anphabe career network and market research company INTAGE announced
the list of "100 best places to work in Vietnam 2017". In particular, this year Vinamilk has risen
to hold the No. 1 position in the FMCG industry and at the same time holds the No. 1 position of
the TOP 100. Best place to work in Vietnam 2017. (Vinamilk, 2018)
This is a favorable condition for human resources to develop and devote to projects for the
company to accomplish the set goals.
With a nationwide sales and distribution system, Vinamilk has covered the entire system of high-
quality products to consumers in order to increase market share and maintain Vinamilk's leading
position in the market.
With the financial report of the second quarter of 2021, Vinamilk's efforts and continuous
development have been shown to reach the sales target of more than 62 billion. The growth of
revenue is the money for Vinamilk to develop strongly, affirming the leading position and value
of a quality dairy company.
Specifically, On December 10, 2020, at the Annual Forum 2020 event of the Vietnam Institute of
Directors (VIOD), Vinamilk was the only Vietnamese enterprise to be honored as "The most
valuable investment asset in Vietnam". of ASEAN” (ASEAN ASSET CLASS). (Vinamilk, 2020)
b. SCOPE
To become the leading symbol of trust in product quality and to win the number one position in
the dairy market. Vinamilk has set the goal of taking the lead in innovation, creativity, and

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application of high technology in the breeding and production process to get quality products,
satisfying consumers.
The company has invested nearly 500 billion VND in modernizing machinery, equipment and
production technology. Many modern refining lines originating from advanced industrial countries
such as the US, Denmark, Italy, Germany, the Netherlands... (LADIGI digital marketing, n.d.)
The leading smart warehouse in Vietnam, with an area of 6000 m2 with 20 entry and exit gates,
105 meters long, 35 meters high, including 17 shelves with a capacity of 27168 lots. Import and
export goods automatically with 15 RGV (Rail guided vehicle) transporting finished pallets to the
warehouse and 08 Robot Crane (Stacker Crane) arranging pallets into the shelf system.
The operating system is based on the automation solution Tetra Plant Master, allowing to connect
and integrate the entire plant from input materials to finished products. As a result, the factory can
control all activities taking place in the factory, monitor and control the quality continuously. The
Tetra Plant Master system also provides all the necessary data to enable the plant to continuously
improve production and maintenance operations. (Vinamilk, n.d.)
Diversified products and nationwide store system are advantages to help Vinamilk penetrate and
cover the whole market, especially in rural areas. Helping Vinamilk's products dominate the
Vietnamese dairy market.
c. LEGAL STRUCTURE
In order to achieve the goal of becoming one of the 30 largest dairy companies in the world,
Vinamilk holds a professional management apparatus, which is scientifically distributed, helping
to create a strong foundation for the company in all activities.
The strategy department helps to accurately orient the responsibilities of each department, to make
specific plans such as marketing campaigns, product research...
Detect, prevent risks from occurring and promptly deal with disadvantages for the company
The close connection between the management apparatus helps the departments understand the
nature of each other's work, thereby detecting difficult problems and timely supporting each other.

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At each stage, circumstances. Managers will play an important role and make the right decisions
to help Vinamilk develop and maintain its leading position.
III. THREE IMPORTANT FUNCTIONS
1.THE RELATIONSHIP AMONG THE CHOSEN FUNCTIONS.
a. Marketing and Finance
To carry out marketing campaigns, Vinamilk spent nearly 25 billion on advertising and promotion
activities.
Specifically, Vinamilk spent 2,074.5 billion VND for advertising and market research costs and
more than 6,947 billion VND for promotion, display and product introduction services in 2016.
Selling expenses of Vinamilk in 2016 recorded an increase of nearly 72%, reaching VND 10,759
billion. The two largest expenditures are advertising - market research and service costs for
promotion - display - product introduction. (Sơn, 2017)
It can be said that the financial investment is important to help Vinamilk implement the strategy
to promote the brand to the market and bring effective sales to Vinamilk. With fierce competition
from domestic and foreign competitors such as TH True Milk, Nestle, etc., finance plays an
important role in promoting effective marketing strategies and bringing profits to Vinamilk by if
you pay 1 for advertising, you get 5.
b. Marketiing and Human Resource
In order to restore the study of marketing strategy and enhancing brand value for the company,
Vinamilk posted the recruitment of marketing specialists.
Job description: Support the Head of Marketing Department / Head of Brand Department in
formulating the development strategy of the category, detailed plan and implementation of
assigned Marketing programs/plans in accordance with the defined regulations. direction and goals
of the brand.
Application requirements: Graduated from a regular university – Majoring in Economics, Business
Administration, Marketing

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Experience: At least 02 years of working experience in the field of Marketing, brand marketing,
advertising ... in which at least 1 year of experience working in a similar position in multinational
companies / large-scale companies on dairy, food/fast-moving consumer goods.
Other requirements:Good communication in English, Proficiency in office computer, Dynamic
and creative, High teamwork spirit, Enthusiastic and proactive at work, Ability to manage time &
prioritize work well… (iVolunteer Vietnam, 2021)
Vinamilk wants to successfully complete its marketing strategies, it needs good and dynamic
human resources. In order to have marketing specialists, the human resources department plays
an important role in recruiting and selecting qualified candidates, suitable for the company's
operating environment, helping to develop the company in projects. big. Thanks to the human
resources department, quality human resources were promptly provided to the Marketing
department to promptly serve the research and product development process. And to the
Marketing department, the human resources department can communicate internally within the
company more easily to connect all departments of the company into a unified block.
c. Finance and Human Resource
The Human Resources Department is responsible for recruiting and managing personnel. But to
do well this responsibility requires financial investment. Specifically, human resource policy on
salary, bonus, allowance, social insurance to easily attract talents to serve the company.
Vinamilk's Human Resources Department recently posted a job posting for a marketing specialist
combined with finance offering a salary of 12 million/month. (sự, n.d.)
In order to have a salary and bonus regime to attract human resources, the finance department must
be responsible for considering and promoting the appropriate salary for each department. If the
company wants employees to really develop, finance is an important factor that motivates them to
work and generate high revenue. With financial payment and financial support, the human
resources department is responsible for completing projects and bringing profits to the company.
This is a mutually supportive, mutually beneficial relationship for the sake of increasing sales and
growing a strong company.

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2. ADVANTAGES AND DISADVANTAGES THAT EACH INTERRELATIONSHIP
BRINGS TO COMPANY
a. Marketing and human resource
Advantages: The combination of the relationship between Marketing and Human Resources is
the premise to help the company discover the right talents and candidates to contribute to the
company. The Marketing department itself was "born" through the selection and recruitment
process of the human resources department. When there is a close combination between Marketing
and Human Resources, it will help the company easily recruit quality Marketing human resources
thanks to the Human Resources department's recruitment, helping the company complete projects
such as developing product images, enhance brand value... and bring high revenue to the company.
Disadvantages: Mostly, Marketing departments want to recruit more experts to support projects,
after proposing, they need human resources as quickly as possible. But the human resources
department could not respond immediately, they had to ensure the recruitment processes for the
right people, for the right jobs. Therefore, the recruitment may be prolonged, leading to a shortage
of marketing human resources. This will lead to conflicts between the two departments. The
Marketing Department will blame the Human Resources department for delaying the work
progress and not providing adequate human resources for the company. This conflict will cause
the relationship between the two rooms to become bad. And resulting in reduced work efficiency,
affecting the overall profit of the company.
b. Finance and Human resource
Advantages: A close relationship between the finance and human resources departments will
positively impact the company's performance and profitability. Human Resources can consider
the costs and benefits of hiring new employees, as well as the impact of HR policies on the
organization's bottom line, to make recommendations to the finance department. From there, the
finance department will understand the nature and characteristics of each position to pay, estimate
the appropriate salary and bonus regime for employees, and deploy motivational programs to help
employees in the company. The company works effectively to bring success to the company in
projects.

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Disadvantages: If the finance department does not promptly approve the issues of expenses such
as salary and bonus, allowances, social insurance, activities, etc., conflicts are easy to arise.
Human resources include all departments of the company, they need to be fully and promptly met
with salary or problem solve expenses of the company. If the financial delay, affecting the progress
of the work. The Finance Department's failure to approve the expenses for theHuman Resources
Department will cause backlogs of work, conflicts will become acute, which will cause internal
problems within the company, seriously affecting the interests of the company.
c. Marketing and Finance
Advantages: Marketing departments can provide finance departments with business
forecasts. Help the finance department allocate resources efficiently. Marketing can also provide
accountants with information about which products or services sell best. The two departments
must also work together to budget for future marketing campaigns. The finance and marketing
departments keep the board of directors' attention on the success of specific marketing campaigns,
helping management create future strategies.
Although the finance and marketing departments are separate and distinct. But they must work
together to track sales trends and manage the effectiveness of marketing campaigns. When two
departments work collaboratively, sales trends are tracked, campaigns are budgeted wisely,
resources are allocated efficiently, and business runs more smoothly.
Disadvantages: Conflict between Marketing and Finance. The Marketing side always considers
themselves important, they want to spend a lot of money on sales and marketing. While the finance
side is responsible for controlling costs to ensure profits. So not every plan is proposed by the
marketing, but the finance also supports it, Marketing always says finance seek to make marketing
difficult.
When financial delays in approving proposed marketing projects will lead to lost opportunities to
implement potential projects that marketing has invested in research. This will result in loss of
profits for the business. If finance does not approve, it will cause the marketing department to