Sample of Scientific Report: Research ANALYZING HUMAN RESOURCE STRATEGY OF VINAMILK IN VIETNAM FROM 2016 TO 2018 PDF

Preview

Summary

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION ---------***--------SCIENTIFIC RESEARCH REPORTTOPIC:ANALYZING HUMAN RESOURCE STRATEGY OFVINAMILK IN VIETNAM FROM 2016 TO 2018Student’s name: Nguyễn Huỳnh Phúc Thịnh ID Number: 1...

Description

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION ---------***--------

SCIENTIFIC RESEARCH REPORT

TOPIC: ANALYZING HUMAN RESOURCE STRATEGY OF VINAMILK IN VIETNAM FROM 2016 TO 2018

Student’s name: Nguyễn Huỳnh Phúc Thịnh ID Number: 18DH480818 Class: KN1802 Instructor: Dr. Nguyen Nhat Tan

HCMC, December / 2020

2

Abstract Human resource management always plays an important role in an organization, the success or failure of the organization is always closely related to this factor. Human Resource Management is a true art, there is no more difficult management job than people management. In this research paper, we will look at what that art is through Vinamilk's HR strategies. Factors that help Vinamilk become the best workplace in Vietnam. The purpose of the research is to analyze the HR strategies of Vinamilk in Vietnam from 2016 to 2018. The author analyzes the data collected from companies, magazines, articles, ... later That compares with two important theories X (Douglas MC Gregor, 1960) and Z theory (W.Ouchi, 1970) to see the difference. The author approaches the secondary data source to analyze and evaluate, then give the research results. Find out problems and come up with solutions for the company to improve and grow more and more. Keywords: Vinamilk, human resource management, HR strategies.

3

Table of Contents Chapter 1: Introduction.........................................................................................................7 1.1 1.2 1.3 1.5

Rationale...............................................................................................................................7 Aims......................................................................................................................................8 Scope.....................................................................................................................................8 Structure...............................................................................................................................9

Chapter 2: Literature Review..............................................................................................10 2.1 Overview of the company...................................................................................................10 2.1.1 Brief information...............................................................................................................10 2.1.2 Historical development......................................................................................................10 2.1.3 Mission, vision and strategy..............................................................................................11 2.1.4 Scope of operation, product concepts and Competitive advantages:.............................11 2.1.5 Market share......................................................................................................................13 2.1.7 Company’s problem...........................................................................................................14 2.2 Concepts and definitions....................................................................................................14 2.3 Theories..............................................................................................................................15 2.3.1 Overview of the theories....................................................................................................15 2.3.2 The importance of Human Resource Management.........................................................15 2.4 Previous studies..................................................................................................................16

Chapter 3: Methodology......................................................................................................17 3.1 Research design..................................................................................................................17 3.1.1 Features of secondary methods.........................................................................................17 3.1.2 Reason for using secondary research method..................................................................17 3.2 Source of data.....................................................................................................................18 3.2.1 Book and article.................................................................................................................18 3.2.2 Company’s website.............................................................................................................18 3.2.3 The library, proquest.........................................................................................................18 3.2.4 Reports................................................................................................................................18 3.2.5 Other online website..........................................................................................................18 3.3 Data collection....................................................................................................................18 3.3.1 Google tools........................................................................................................................18 3.3.2 Internal library system in school......................................................................................18 3.3.3 Data systems on platforms and websites official..............................................................18 3.4 Data analysis.......................................................................................................................19

Chapter 4. Finding and discussion.......................................................................................20 4.1 The administrator's behavioral culture with subordinate employees...............................20 4.1.1 Performance.......................................................................................................................20 4.1.2 Assessment..........................................................................................................................22 4.2 Create awareness for employees.........................................................................................23 4.2.1 Performance.......................................................................................................................23 4.2.2 Assessment..........................................................................................................................24 4.3 Middle management issue, who makes the connection between senior management and employees........................................................................................................................................25

4

4.3.1 4.3.2

Performance.......................................................................................................................25 Assessment..........................................................................................................................26

Chapter 5: Conclusion and Recommendations....................................................................27 5.1 5.2

Conclusion..........................................................................................................................27 Recommendations..............................................................................................................27

5

List of abbreviations HRM

Human Resource Management

VNM

Vinamilk

HR

Human Resource

List of Figures Figure 2.1: Historical development of Vinamilk________________________________10 Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)__________________13 Figure 2.3: Vinamilk revenue (2016 - 2018)___________________________________14 Figure 4.1: Top companies with the best workplace in Vietnam 2016________________21 Figure 4.2: Top companies with the best workplace in Vietnam 2017________________21 Figure 4.3: Top companies with the best workplace in Vietnam 2018________________22 Figure 4.4: Vinamilk revenue (2016 - 2018)___________________________________24 Figure 4.5 Organizational structure and positions of management levels_____________25

6

Chapter 1: Introduction 1.1 Rationale Regarding the potential of the industry, Vietnam is considered to be a worthy dairy market to exploit with the amazing numbers it shows. In the market "liquid milk", if customers can meet the demand, it can reach more than 34,000 billion VND, while in the market "powdered milk" is more than 48,000 billion VND. This is both a great opportunity for Vinamilk to continue to develop and expand its market share, but it also shows that Vietnam is a competitive market and competitors will appear constantly. VNM has to continue to grow because as long as they stand still, they are lagging behind the rest of the competition and losing their market share. [CITATION VIR20 \l 1066 ] Vinamilk's full name is Viet Nam Dairy Products Joint Stock Company is the business activity in Food Manufacturing. A big man in the dairy industry in Vietnam beside competitors such as: TH True Milk, Tan Hiep Phat, Nutifood and so on. Vinamilk (VNM) demonstrates its strength by gaining market in turn. 54.5 percent, 58 percent and 55 percent respectively in 2016, 2017 and 2018. [CITATION Tâm19 \l 1066 ] Human Resources is a very important part of every company. Through the analysis of the Western theories X, Y, Z we will understand more about human resource management. However, since management is still an art, not rigid, it is up to each administrator to combine the above theories. Through theory, we will learn the tips that leaders possess to apply and bring the company to success.[CITATION sag15 \l 1066 ] Vinamilk also has its own problems, despite being regarded as one of the places with the best working environment in the world. A common example is the possibility of not having a replacement. The explanation is that they did not find qualified talent promptly to replace former employees who worked at the company. [CITATION Ann19 \l 1066 ] There have been many researches on VNM in the past. Two of them are "Evaluating brand openness according to the level of Vietnamese consumers of Vinamilk brand" [CITATION Phạ14 \l 1066 ] through methods used to analyze the data on looking for industry potentials to assess the openness and development of Vinamilk. The second

7

study is a study on corporate social responsibility performance at Vinamilk [CITATION ĐỗĐ13 \l 1066 ] with the aim of proving the social contributions of VNM after the successes of your own. 1.2 Aims The purpose of this study is to find the art of leadership, the differences in people management between VNM and other companies and how VNM's strategies operate to explain the results why they are always choosing Top selection to rank in the top best working environment in Vietnam from 2016 to 2018. This analysis builds secondary data from other studies, then through the statistical process and data selection. whether to give the best results. With the above purpose, at the same time we also want to find gaps and spread good and successful things that VNM has achieved to many young people and other company leaders to bring Vietnamese economy men go up. 1.3 Scope The article focuses on the research and information selection of articles from 2016 to 2018 in Vietnam market. Focus analysis on HR strategy and the successes of HR strategy for the overall development of the company. There is a bit of a limitation because these are data obtained from secondary data sources, there is not enough time and opportunity to approach and get statistical questions directly from VNM staff, so we have not gone into depth internal problems. 1.4 Significance of the study This study plays an important role in potential success formulas as well as the limitations in HR strategy that companies are facing. This analysis helps bystanders like us have a clearer view of the importance of HR strategy. For VNM, it will help them to further improve their strengths and weaknesses. From analyzing VNM's HR strategy from 2016 to 2018, the author has proposed a number of measures so that VNM can solve the problem of reducing a bit of pressure when working for its employees, creating in a competitive yet healthy environment.

8

1.5 Structure This research paper consists of five chapters. Chapter 1 is an introduction, in this chapter, the author introduces the company, some achievements and issues related to the research such as the purpose, scope and importance of the research. Second, Chapter 2 is a literature review, this chapter presents an overview of the company such as development history, market share and competitors, and analyzes the theory of personnel X and Y. In the chapter 3 is the methodology, this chapter presents the methodology used in the paper and how to collect the data, the effectiveness of secondary data in scientific research. Then, Chapter 4 is the findings and discussion written about the situation the company did in the 3 years 2016 - 2018 for evaluation and comparison with the theory. Chapter 5 is a conclusion and recommendation, which reaffirms the importance of HR strategy to the company's overall success and proposed solutions.

9

Chapter 2: Literature Review 2.1 Overview of the company 2.1.1 Brief information Vinamilk (VNM) is one of the largest dairy or dairy products companies in the Vietnamese market. VNM's living coverage is very large, from the old to the children, no one knows about this brand. In 2007, VNM was honored to be ranked in the top 15 most valuable companies in Vietnam. VNM also shows its dominance with over 70 percent market share in the dairy market. VNM currently has more than 94,000 points of sale covering 64 cities and provinces across Vietnam. In addition, VNM is also ambitious to bring its products to export to many countries such as France, USA, Canada, Poland, Germany, besides some countries in the Middle East, Southeast Asia [CITATION Rub20 \l 1066 ] 2.1.2 Historical development

Figure 2.1: Historical development of Vinamilk

10

and so on.

[ CITATION His18 \l 1066 ] Vinamilk (VNM) is a large dairy company in Vietnam established on August 20, 1976. After many non-stop efforts, to 1995 Inauguration of the factory in Hanoi. Perhaps VNM has started to find its right direction by continuously opening more factories in places like Can Tho (2001), Binh Dinh, Saigon (2003), Nghe An (2004), and so on. Next, VNM opened a cow farm in Tuyen Quang (2006) and many other establishments were inaugurated in the following years. During its relentless efforts in business operations, Vinamilk was awarded many labor medals from the government. In 2014, VNM decided to take a risky move to foreign investment. They raised their shares in Miraka in New Zealand with the ambition to step out onto the foreign playground. Vinamilk also launched its brand in Thailand and Myanmar in 2016. In 2017, VNM was ranked among the 2,000 largest listed companies in the world. Not stopping there until 2018, Vinamilk continues to be in the Top 200 companies with revenue of over 1 billion USD in Asia Pacific. [CITATION Vin15 \l 1066 ] 2.1.3 Mission, vision and strategy Vinamilk (VNM) wishes to continue to maintain its No. 1 position in the Vietnamese market. Besides, they also have a bigger ambition that is to try to be in the top 30 best dairy companies in the world in terms of sales. VNM is also ready for other mergers and acquisitions. This makes VNM stronger and stronger while eliminating some of their competitors. And VNM continues to show its ambition by entering the export market of wanting to become the most valuable dairy company in Southeast Asia. The mission of VNM is "To become the leading symbol of belief in Vietnam about health and nutrition products serving human life". “Vinamilk is committed to providing the community with top nutrition and quality with respect, love and high responsibility for human and social life”. [CITATION Vin152 \l 1066 ] 2.1.4 Scope of operation, product concepts and Competitive advantages: Vinamilk owns 7 subsidiaries and 3 associates, three of which are overseas. Some subsidiaries such as Driftwood Dairy Holding Corporation, Angkor Dairy Products Co., Ltd and so on. VNM operates two main distribution channels. The first distribution 11

channel (traditional channel) has nearly 220 independent distributors and more than 140,000 retail outlets. This channel helps to distribute nearly 80 percent of VNM's output. Vinamilk has opened 14 product showrooms in major cities such as Hanoi, Da Nang, Ho Chi Minh City and Can Tho to support the purchase and sale of this distribution channel. The second distribution channel is (modern channel) as a system of supermarkets large and small. Vinamilk has the advantage of being a system of dairy factories that are invested in many localities throughout the country. With more than 1,400 first-level agents and a distribution network spread across the country, with 5,000 agents and 140,000 retail outlets selling Vinamilk products as well as other direct distribution channels such as hospitals and supermarkets, schools and so on. In addition to Vietnam, VNM also expanded its influence to other countries such as Cambodia, the United States, Poland, New Zealand and so on. [CITATION Thu19 \l 1066 ] With strong potential and a sensible strategy. VNM always diversifies its products in different small markets such as Vinamilk Liquid Milk market share with products such as 100 percnt Vinamilk fresh milk, Super SuSu cocoa barley drink and so on. Market share Powdered milk Vinamilk with products Dielac Optimum Mama, Dielac Alpha Golda and so on. Vinamilk Yogurt Market Share with Vinamilk Probi Yogurt, Vinamilk Pasteurized Drinking Yoghurt, Vinamilk and Vinamilk Su Su and so on. Vinamilk's nutrition products for children from 6-24 months old. And finally Vinamilk's market share of adult nutrition products with Vinamilk Sure Prevent, Vinamilk CanxiPro and so on. It is the variety of products and the small market shares that help create a unique and strong mark of VNM to consumers in the country and the region. Of course, besides pleasing customers, VNM is always a fear to its competitors. Depending on each market share, they have separate competitors. But competitors are strong enough and have them pay attention such as TH true milk, Tan Hiep Phat, Nutifood and so on. [CITATION Vin151 \l 1066 ]

12

2.1.5 Market share

Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%) [CITATION Tâm19 \l 1066 ] As more and more rivals emerge on the market. It makes the rivalry fiercer, but by maintaining a market share of around 50 percent, VNM still retains its position. In particular, VNM still shows no sign of stopping and continues to retain its number one spot in Vietnam and expaining the international market.

13

Renvenue of Vinamilk ( VND) 2016

1017

2018

52629000000000 47506000000000 43982000000000 2018 0

0

0 Revenue

0

0

0 0

0

1017

2016

0

2.1.6 Market growth Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ] Statistics show that annual sales have grown as impressively as market share. Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up 8 percent ) and VND 52,629 billion for 2018 (increase 10 percent ) 2.1.7 Company’s problem Vinamilk also has its own problems, despite being regarded as one of the places with the best working environment in the world. A common example is the possibility of not having a replacement. The e...