ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 21st October, 2020 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Cong Phuong Anh Student ID GCH190762

Class GBH0907 Assessor name Do Thu Trang

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
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Table of Contents
I. Introduction .............................................................................................................. 5
II. Micro and Macro environment .................................................................................. 5
1. Competitive environment: ............................................................................................... 5
2. PESTEL ANALYSIS: .......................................................................................................... 10
III. Internal analysis: ................................................................................................. 14
1. Mission, Vision and Core Value ...................................................................................... 14
2. Organizational structure ................................................................................................ 16
3. Human resource ............................................................................................................ 17
4. Financial strength .......................................................................................................... 18
5. Market resources: ......................................................................................................... 20
IV. Business decision: ................................................................................................ 21
V. Conclusion............................................................................................................... 24
I. Introduction
Wells Fargo is a US multinational company where I work. So, as a business analyst at finance services
firm Wells Fargo, I will analyze the internal and external environments of Bibica confectionery. This is a
company specializing in providing confectionery products in Vietnam market such as Choco chips, Hura
sponge cake, moon cake, candies ... as far as I find out, Bibica is a manufacturer. reputable confectionery
manufacturer, receiving a lot of trust from people in Vietnam. The company has been established since
1999 and has been operating for 20 years and is currently a subsidiary of PAN food Group (Bibica,
n.d).This report will show the opportunities or challenges of micro-environmental factors and the macro
environment has a direct impact on the company. In addition, the analysis process also shows the
strengths and weaknesses of the internal factors of the business and the influence of all of the above
factors in making the company's strategies and decisions. .

II. Micro and Macro environment

1. Competitive environment:

Overview chart

a. Potential competitors:
Bibica is a large confectionery producer and supplier in Vietnam. Specifically, Vietnam is a country
with 9 million people and the average population growth rate in Vietnam in recent years has been about
1.14% per year, so the demand for Vietnamese products is very large (General Statistics Office, 2019).
Along with that, the number of traders in Vietnam is also increasing. It also proves that the confectionery
business market in Vietnam has no market barriers to entering or withdrawing from the industry. In fact,
the perfectly competitive market in Vietnam has brought many competitors to Bibica Group. For
example, the company with the most potential in the market to compete with Bibica is the company
Liwayway or people often call by name Oishi.

Indeed, a potential competitor is one of the most difficult to identify for businesses. These potential
competitors are often new to the category, the customer segment is likely to become a direct
competitor on a certain product. For example, Oishi is a company whose standout item is snacks, so the
target audience is mostly children. In fact, Coishi has not launched high-end bakery products such as
cake, moon cake, pie ... like Bibica company, but with the same target of customers as Oishi children, it
also creates a huge competition (Bibica, n.d). In addition, revenue from the bakery business at Bibica
company accounts for 63% compared to other products within the company (Bibica Crop, 2020). This
also proves that the cake is very popular in Vietnam. Oishi may be based on the large consumer demand
for bakery products that they can take new business directions in this category. For example, Oishi has
entered the new confectionery market by launching a number of confectionery products such as Oishi
Akiko snack, pillow, and candy ... (Bachhoaxanh, n.d). Since then, Bibica may face a decrease in the
number of bakery products sold by Oishi to launch a bakery product. Bibica's bakery brand will also be
affected negatively as there are many new products that make the market more competitive.

• The influence of potential competitors on the company:

Bibica's potential competitor has created many challenges for the company. Because the more potential
competitors go to the confectionery market, the more competition for market share as well as producing
goods increases. For example, Bibica is currently the third-largest bakery business in Vietnam (Hong,
2020). This position of the company may be overtaken by new entrants to the market. In addition, new
competitors in this market will always do everything possible to find a business in this perfectly
competitive market. as they will defy the risk of increasing price pressures that make the competitive
environment unstable. This creates a direct barrier to the company's development.

b. Current competitors:
For Bibica mentioning competitors, it is impossible not to ignore the Kinh Do company. Because in the
Vietnamese confectionery market, both Kinh Do and Bibica are two large corporations that share the
same business items, so both will target the same customers and business goals. Both companies have
similar products in the market so the main factor of competitiveness is the product price. An example is a
moon cake, a signature moon cake that both companies sell to the market. There is a slight difference in
the price of both brands between Bibica and Kinh Do. Like the same type of moon cake that collects
jambon 1 egg with a weight of 150, Kinh Do sells for 70,000 VND, and Bibica offers 73,000 VND
(Mientayzone Co, 2020). If comparing these two prices, Bibica is weaker because it is the same product,
but Kinh Do brings to the market at a lower price, Bibica will have problems with reducing the number of
customers. In addition to the price competition, the two companies also have a competition for services
such as Bibica that the discount of products with customers will be divided according to the order value
(Mientayzone Co, 2018). Unlike Bibica, Kinh Do offers discounts to customers based on the number of
products. Moreover, the factor that makes Kinh Do the current competitor of Bibica Company is also the
market share that each company already owns in the confectionery market. Currently, Bibica is the
enterprise with an 8% confectionery market share, ranking second after the giant Kinh Do in the
domestic market (Quyen, 2017). Therefore, Bibica always has strategies and plans to compete directly
with Kinh Do to become the market leader in the coming years.

• The influence of current competitors on the company:

The public competing directly with the giant in the confectionery industry in Vietnam brings both
opportunities and challenges to the Bibica business. This competitor initially put a great deal of pressure
on the market for Bibica. Because Kinh Do is the firm with the largest market share for confectionery in
Vietnam (Thuy, 2020). This also means that Kinh Do has created a lot of trust for consumers. Since then,
the products released by Bibica will always be compared in terms of quality as well as design and price
with products of this competitor. In addition, for investors, the Capital will have many advantages over
Bibica in attracting investors. Bibica faces a major contract robbery from this big man. On the other
hand, Kinh Do also creates opportunities for Bibica to work and develop more. In fact, Bibica always has
a great ambition to overtake Kinh Do's leading company in the confectionery market in Vietnam. This is a
great driving force to promote the development process and create many breakthrough products in the
market. especially since the Kinh Do occupies the largest market in Vietnam, so are very complacent with
their positions. the enterprise can rely on the subjectivity of a rival company to come up with strategies
that no one can expect. For example, Bibica is currently the first business in Vietnam that sells low-
calorie snack products. This is also a huge breakthrough created from the ambition to become a leading
enterprise in the market.

c. Substitute products:
In a perfectly competitive environment, it is difficult for a product to last long. Companies operating in
this market are always faced with substitution by demand or social trend. Indeed, the current
Vietnamese income is very stable, so confectionery is no longer a luxury item. With Bibica's natural
products, mainly cakes, candies, and nutrition (Bibica Crop, 2020). All Bibica products are easily replaced
because confectionery products in Vietnam are very diverse and the customer choice segment is also
very wide. In addition, because Bibica is a company with a large production line, the shelf life of the
product is quite long to suit this system. but now, instead of products with a long shelf life, people prefer
fresher foods. In fact, Tous Les Jours is one of the companies with a large chain of fresh cakes in Vietnam
(Moca, n.d). Although Tous Les Jours and Bibica do not sell the same product, the rival company's fresh
cakes can replace some of Bibica's bakery products such as sponge cake , pie. The direct reason that this
fresh cake product can replace other types of Bibica cakes is that they both have the effect of adding
energy and are human snacks. Moreover, the products of Tours Les Jours company are also very diverse,
it can be said that these chain stores are the sweet paradise for consumers. from the company's product
diversity rivaling the clientele of Bibica could reduce interest in the company's current confectionery
products. This can indirectly affect Bibica's business process. Especially with the appearance of this new
item, Bibica products may become outdated. More dangerously, a business may be faced with the
elimination of a product on the business list due to being replaced by those of the substitutions
competitor. This also makes the competition of the Bibica company in the trading market more difficult.

• The influence of substitute products on the company:

Alternative products are always the one that poses many challenges to the business because the
company mainly focuses on direct competitors. It can be said that the substitute product is like an
indirect killer for Bibica business. These substitute items are often not the same as the traditional
products the company sells, but they always prevent profit growth in the company. For example, Bibica's
traditional bakery product, which has a net profit of VND126,793 million from its business in 2018.
However, when the fresh product launched in the market, the company's profit was reduced by 13% in
2019 to only 110,431 million VND (Bibica Crop, 2020). In addition, the alternative fresh products of Tour
Les Jours may cause Bibica products to be priced lower than expected. Alternative products often offer
better quality and cheaper prices, so companies that want to have a competitive advantage over this
competitor have to lower the cost of the product. A cheese cake from Tour Les Jour costs 100,000 /piece
while a box of Bibica cake is only 85,000 / box. Thereby, it can be seen that the substitute products are
very easy to attract consumers, making traditional products at risk of disappearing in the market, so
Bibica always has to be careful of competitors who own substitute products.

(Tour les Jours, n.d) (hienanneshop, n.d)

d. Power of supplier:
Because Bibica is a large confectionery manufacturer, the demand for raw materials such as flour,
sugar, additives, flavoring ... is also very large. Most of the raw materials in the company's production
process are obtained from external sources, not by the company's finished production and self-
consumption like other companies. In fact, the company has linked with 8 domestic suppliers and 3
overseas suppliers such as Bien Hoa Sugar Joint Stock Company, which specializes in supplying sugar, SIM
company supplies cocoa powder, milk … (Bibica, 2005) This level will play a very important role in Bibica's
production. This shows that the company that the quantity and quality of the company's products can
meet the market requirements need to depend greatly on these suppliers. In addition, to ensure that the
raw materials are always supplied fully, Bibica has built up strong relationships with suppliers by signing
annual contracts. For example, with tapioca materials of Tapioca Vietnam Joint Venture Company, BiBica
signed a one-year contract worth up to 15 billion VND (Bibica, 2005). With stable and long-term
contracts, which the company has signed, the costs for changing suppliers are enormous.

• The influence of substitute products on the company:

The power of supply is the biggest challenge for Bibica because the company is heavily dependent on
these suppliers. Vendors will be able to adjust the price of the product because the material is supplied
by them. For example, worldwide sugar prices have been slightly raised in early 2020 since new products
launched by the company will cost slightly higher (Huynh, 2020). However, Bibica will experience a
reduction in margins from some of the products that have been released for a long time because when
these supplies increase the cost of raw materials, the company can receive less profit. Since the product
is already on the market, it is very difficult to change its price even if the raw materials the company
imports are higher. Furthermore, Bibica cannot create materials in production by itself, so the company
may face production risks when these materials suddenly stop supplying or supplying insufficient
supplies. For example, if one of the suppliers still has a contract with the company but is suddenly
bankrupt and is unable to continue supplying the company with raw materials the production process
will not be possible. This leads to the risk of the company not meeting the needs of its customers.

e. Power of buyer:
Customer's power does not affect Bibica business. Bibica's customers are quite different from other
businesses in the market, as Bibica is aimed at all customers including pregnant women, children, or
people with diabetes and obesity. With a large target group of customers, the company has a huge
number of people using the product. This is reflected in the index of sales at Bibica in 2019 which
reached 1503 billion VND and increased by 8% compared to 2018 (Bibica Crop, 2020).

In addition, Bibica also focuses on the form of retailing products for distributors or agents … (Bibica,
2005). In fact, with the retail form that the company has chosen, the greater the number of customers
using the product, the lower their power over the company. In other words, the company will not be
under too much pressure on customer factors as well as it will be difficult for consumers to force the
price set by the company.

From the model of 5 competitive forces of Bibica Company, it has shown that the enterprise has very
good competitiveness in the market to have the current big position. Thereby also demonstrating the
company's great ambition to occupy the number one position in this tough competitive market. If it is
not possible to combine this volume of customers anymore, the company may receive connections with
other sources of customers.

• The influence of substitute products on the company:

The power of customers in the market has created great opportunities for the company in the business
process as well as development. Large customer base creates advantages in selling products that the
company is doing business. For example, Bibica has a lot of high-end bakery items such as goody cake,
goody gold, goody classic.... (Discover, 2018) These high-end items are usually quite high, so low-income
customers will rarely find them, however This bakery product still has a large consumption from
customers with high income and donation purpose. Thanks to the huge source of customers in Vietnam
and divided by income classes, Bibica will be very beneficial in launching new products. When a company
offers any product, it is easy to get the reception of a certain source of customers in the market. For
instance, Bibica recently introduced a low-calorie biscuit product, of course with a large number of
customers, the product will still be consumed and still bring profit to the company. Through this, it can
be seen that the large source of customers has created an opportunity for Bibica to easily offer a variety
of products, while not having to worry about products being sold.

2. PESTEL ANALYSIS:
a) Social factor:
Vietnam's class is divided into 5 strata and depends on the standard of living of each person (BaoBao,
2020). The lowest class in Vietnam is the extreme poor but it is not the most common class group in
Vietnam. In fact, the economic security group and the middle class are the two main groups in Vietnam
(BaoBao, 2020). As the economically stable class and the middle-class increase, so does the demand for
products and their spending on diet. Especially, Vietnam is also the third-largest country in Southeast
Asia, so the demand for confectionery is also increasing. Because of the huge demand for confectionery
in Vietnam, the company has had to invest a lot in production to meet the needs of customers. Besides,
today Vietnam no longer has illiteracy like in the days before 1945, most people can read and write. The
level of literacy in Vietnam has also increased thanks to the declining rate of illiterate people. Vietnam
has 36.5% of the population aged 15 and over with the lowest educational attainment, high school
(UNFPA, 2019). This also significantly affects the company's business strategy. For example, when the
intellectual level of people in Vietnam increases, they will also have higher requirements for products
that are marketed such as quality, color, design, aesthetics... Perhaps that is why Bibica always launches
high-end products with high aesthetics. Furthermore, the Vietnamese lifestyle is extremely healthy, so
the consumers' buying style also focuses on health products. Today, for example, people often favor
fresh, low-calorie products…, so that confectionery would not be an option for consumers. Bibica may
face the risk of reduced confectionery consumption, or being replaced by other products.

In addition to the factors of social class, lifestyle, education level, market segmentation also plays a
decisive role in the business environment. Currently, the number of people under 15 years old in
Vietnam is 24.931.000 in 2010 and tends to decrease compared to previous years (Ministry of Labor -
Invalids and Social Affairs, 2012). This created a huge barrier to increasing the number of production. In
fact, children of the same age group have a higher preference for eating confectionery than other ages.
As a result, the decrease in the number of children means Bibica faces a reduction in its product
consumption. Bibica is one of the chocolate businesses, this is a symbolic gift of men's love for women
on Valentine's Day. Therefore, with a higher proportion of women than men, Bibica's chocolate products
are not consumed strongly. On the other hand, Vietnamese consumer behavior tends to spend on
products imported from abroad. This has increased competition between domestic confectionery
products and products from abroad entering the market. To solve this problem, Bibica creates a lot of
quality products, suitable to the taste of Vietnamese people to regain the trust of users with domestic
bakery products (bibica, 2018). In addition, the media also creates many opportunities for business
problems within the company. Vietnam is one of the top 10 countries in the world in terms of the
number of viewers on social media channels. This makes it easy for Bibica to bring the company's
products to the customer area through these communication channels. From there, the company can
increase the number of customers using the product and thereby increase revenue.

• The influence of social factor on the company:

Social factors in the macro environment have brought both opportunities and challenges for Bibica
businesses. Firstly, with each social market that has great development potential like Vietnam, it has
created opportunities for the company to develop production output. In fact, the average income of
Vietnamese people is at a very stable level compared to the world, so the demand for confectionery
products is also increasing. for example, in the past, the people living in Vietnam were mainly the poor
and their greatest need at that time was mainly to have enough daily food so confectionery for them was
very expensive, seldom thought of. However, now, people's lives are also full and better off than before,
so securing their daily food source is no longer a concern for them. Since then, everyone's eating
demand is also improved instead of just eating rice during the day, they start looking to buy
confectionery products to use for meals during the day or the need to use candies on Lunar New Year.
Increase very clearly. It can be seen that Bibica's confectionery output on the occasion of the Tet in 2019
has reached a consumption of 3000 tons and has increased by 20% compared to the Lunar New Year in
2018 (Ha, 2019). Since then, businesses will have more opportunities to bring products to consumers.
Especially with the strong development of media, Bibica can expand its business model as well as bring
its products to foreign markets. In 2017, the company has brought about 200 confectionery products to
foreign markets such as Korea, China, the US ... (Hoa, 2017). With the diversity and rapid movement of
communication, the company can sell a lot. more products. Since then, the company also has the
opportunity to receive a large profit from the application of sales on media sites.
On the contrary, this social factor also makes businesses face challenges in their business process.
Consumers' demand for confectionery is increasingly strict, so the company always has to invest time,
money and effort into researching and creating new products, improving the quality of products. old
products to meet consumer demand. Especially with the change in the buying behavior of consumers
very quickly, Bibica has to constantly change marketing strategies as well as product packaging. For
example, nowadays, consumers are highly appreciating the quality and design of imported confectionery
products, so Bibica will face directly with consumers' neglect for domestic bakery products. the company
is operating under a business. This directly affects the process of market domination in Vietnam. In fact,
Bibica cake products only occupy the 3rd market share in Vietnam while foreign bakery products have
the second market share in the country (Nhipcaudautu, 2015). Bibica brand is facing the risk of fading
and gradually shrinking because of the growth of foreign bakery products in Vietnam.
 (Nhipcaudautu, 2015)

b) Technology factor:
Vietnam is a country that always prioritizes technology development. Specifically, Vietnam is
implementing the industrial revolution 4.0 for both the production process as well as the business
process of enterprises (Anh, 2020). Technological reality helps to increase the productivity and
operational efficiency of all processes for businesses. For example, Bibica took advantage of the
opportunity to innovate technology into production by building a smart factory. The operator will be
automatically over-earning the company's production data and production inspection information. The
company also uses a lot of machinery, production lines imported from abroad such as biscuit production
line according to APV technology from the UK, Enzyme hydrolysis technology, and ion exchange
technology from Taiwan ... (Bibica, n.d). This helps the company to strictly control the production stage
to both avoid risks and improve employee's labor efficiency. In addition, Vietnam is the 48th country
with a fast speed of digital economic transformation in the world (Hang & Hien, 2019). This also creates
an opportunity for the confectionery business to improve the business model of the company. Bibica has
caught up with the market trend to expand e-commerce business through sales applications such as
Lazada, Shopee, Sendo ... (Bibica Crop, 2020). E-commerce applications have enabled the company to
continue. reach and attract more customers to the business.

In addition, because Vietnam's technology is always being renewed, catching up with the world's trends,
it has attracted a lot of investors in the production technology of enterprises. In 2007 Bibica received an
investment in technology by the Lotte company, which is a large Korean corporation (Bibica, n.d). Thanks
to Lotte's investment and technology in pie production, Bibica can reduce production costs as well as
product costs so that businesses can improve their product competitiveness in the consumer market.

• The influence of technology factor on the company:

Technology factor of PESTEL also brings opportunities and challenges to businesses. With developed
technology, Bibica has the opportunity to increase productivity in the production process. The company
can both create many products and improve product quality in the application of technology in
production. For example, the company has successfully applied two production lines, the technology of
producing crackers and wafer cakes from Europe and the US, into its western manufacturing factories
(Bibica Crop, 2020). This new technology product of the company has generated 10000 tons/year (Bibica
Crop, 2020). This production line also helps the company keep up with all the development progress as
well as meet the needs of customers that have been set out. Moreover, the thorough application of new
technologies in production also helps the company attract more investment sources in the business and
also attracts many employees with specialized technical skills. The production process is more efficient.
Especially when attracting technology investors such as Lotte Group, the company has the opportunity
to develop the company's capital and production process faster and more economically. In addition, the
company can also save money to pay for employees working in the production department. Because if
there is no development of technology, factories will have to produce by hand, which is both time-
consuming and not enough to meet the requirements of the market and requires a lot of manpower for
the production process. product manufacturing.

Although technology has helped the production of Bibica to be highly effective, it is still heavily
formulated. Bibica has applied technology to production, however, in some factories, new machines
have not been invested, so the production of remaining products such as confectionery, pie has not
really achieved efficiency. In fact, some factories of the company are currently operating at full capacity
but have not produced enough products as originally expected. This makes the company only achieve
88% profit compared to expected (Bibica Crop, 2020). If the company does not invest heavily in all
manufacturing plants, the number of products created is certainly not enough for the increasing human
demand.

III. Internal analysis:

1. Mission, Vision and Core Value
-Vision: “The leading confectionery company in Vietnam.” (Bibica Crop, 2020)

Mission:

- Consumer benefits: “Nutritional Value & Food Safety and Hygiene.” (Bibica Crop, 2020)

Social benefits: “100 classrooms, 1000 scholarships.” (Bibica Crop, 2020)

-Core values:

“+Providing customers with nutritional value products, ensuring safety and hygiene

Food, beautiful appearance, attractive, all for the health and preference of the customer.

+ Constantly improve the management, improve the quality of products and services to obtain best
products and services with the best prices.

+ Maintain mutually beneficial relationships with dealers, distributors, suppliers and business partners
and other joint.

+Comply with state regulations, ensuring the conditions for food safety and hygiene

products manufactured at the company.

 +Responsible for society, actively contributing to society, protecting the environment for the quality of
the life lived in the community.” (Bibica Crop, 2020)

- Strength:
The vision that Bibica has set out seems to be very ambitious, but in fact it is very realistic. Currently,
Bibica is the company with the largest confectionery market share among domestic trade, so with a
vision of becoming the leader in the confectionery market share in Vietnam is completely in line with the
company's development strategies. Indeed, Bibica based on the company's vision to set a growth target
for 2020 will capture 15% of Vietnam's total confectionery market share (Bibica Crop, 2020). Moreover,
with the mission and core values of the company, they have received great trust from consumers. The
fact that the company always ensures the nutritional value and safety of the products to consumers
creates the brand's reputation (Bibica Crop, 2020). From there the company can stand firmly in the
competitive market. Bibica also tries to offer the best services to customers, so that businesses can easily
attract consumers and make them satisfied in the process of using services as well as products. In short,
all factors such as vision, mission, and core values that the company has set out completely support
making practical strategies to help the company thrive.

- Weakness:
Although the company's vision is very realistic, the social mission that the company has set is too high
compared to what the company can do. Currently, the ratio of total assets and equity in the company is
on a downward trend in 2019 (Bibica Crop, 2020). This also proves that the firm's capital is decreasing
and the debt is increasing. The company is still facing the risk of losing money, so to build 100 classrooms
and give 1000 scholarships to the company's mission, it is indeed very hard. Moreover, the vision of the
company is realistic, but it is still not motivated enough for development. The company's vision is too
narrow. Instead of being the leading confectionery company in Vietnam, Bibica should bring the
company's vision to the world. In the Vietnamese environment, development opportunities will be lower
than in foreign countries. In fact, the annual confectionery consumption in Vietnam is only 1.9 kg /
person, 0.5 kg lower than the world average (Hoa, 2014). Thus, the vision that Bibica sets is not strong
enough to lead the company.
 2. Organizational structure

(Bibica Crop, 2020)

From Bibica's organizational model of dividing human resources into separate departments, it has been
shown that Bibica's organizational structure is designed according to a functional structure.

- Strength:

Bibica is a large confectionery producer in Vietnam, so the application of the organizational structure by
each function has helped the company achieve all goals. In fact, the division by each function makes it
easy for the company to divide the tasks clearly. Since then, the working efficiency in the company is also
effective. For example, the revenue that Bibica achieved in 2019 was VND 1,503 billion and this number
also reached 94% of the company's plan (Bibica Crop, 2020). In addition, the functional organizational
structure also helps employees to bring into full play their abilities in the working process. The well-
working staff also creates many opportunities to develop business market share, from which Bibica can
move closer to its position as the leading confectionery company in Vietnam as proposed by the group.

- Weakness:
Although the organizational structure of a Bibica business was effective in implementing the strategies, it
did not really match the size of the company's operations. According to VIETNAM REPORT showed that
Bibica is a large confectionery business in Vietnam (Vietnam Report, n.d). Therefore, the company's job
requires a lot of work diversity and flexibility, but this management structure focuses only on the
division. Therefore, the promotion opportunities of employees in the company will not be high, it is also
possible that the work and management of the company are not really professional. In theory, the
application of a functional organizational structure will bring high efficiency to departments. However,
for Bibica this structure is not really effective. These departments work together to fulfill the company's
goals. The company's human resources department is not working effectively. while the company always
has strategies to expand markets and increase production processes. To achieve that goal, it takes a lot
of manpower to do it. However, in 2019, the company recruited only 49 people, but up to 27 people quit
(Bibica Crop, 2020). This can directly affect the company's production process when the factory is not full
of staff. Thereby, it can be seen that the company's management process is not really effective, so the
combination of departments in the company has not been really successful.

3. Human resource

(Bibica Crop, 2020) (Haihaco, 2020)

- Strength:
Human resources is a very important factor in an organization. Even though Bibica does not have a large
number of employees, the quality of human resources in the company is very good. Compared to its rival
HaiHaco, Bibica has 231 employees with university level education and 23 more than its competitor
(Haihaco, 2020). Especially at Bibica, there are 2 people with postgraduate qualifications, while in Hayao
Company, the highest level of staff education is the university level, so Bibica is having an advantage over
the rival company in terms of high level of human resources in the company. With quality human
resources in the company, Bibica can create more products and services better than the rival company.
In fact, in 2019, Bibica has achieved the title of "high quality Vietnamese goods 2019" and the title of "Ho
Chi Minh city service products" (Bibica Crop, 2020). Meanwhile, the rival company Haihaco did not
receive any awards in 2019. In addition, Bibica has a strong human resource that is more effective in
selling and marketing products than the rival company with a weaker workforce, Haihaco. This is evident
in the market share the company achieves in a competitive market. Thanks to sales and marketing from
potential employees in the company, Bibica has 1% more market share in a competitive market than its
rival Haihaco (Nguyen, 2017)

- Weakness:
Although Bibica has a good human resource, the number of employees in the company is not much.
Compared with the number of employees, Bibica is weaker than the Haihaco company. The total number
of staff in the Bibica company was 967 people with 426 employees less than the competitor company
(Bibica Crop, 2020). Bibica is facing a lack of human resources because the company is not only poor in
human resources but also has a very large scale of operations. For example, when a company wants to
develop brand name closer to consumers, it needs more employees to handle product marketing
positions. However, with the number of employees less than 1000 people in Bibica, it will be difficult to
implement this strategy of expanding the brand. It can be seen that this small amount of human
resources has caused many challenges in the development of the company. In addition, it also makes
the workload of the members in the company increase when implementing the strategy to expand the
scale of operations. Since then, it is difficult for employees to achieve high performance in the working
process.

4. Financial strength
- Strength:
Finance is a factor that clearly shows the development trend of the company as well as its competitive
advantage in the market. According to the balance sheets of Bibica and rival Haihaco, Bibica has a much
larger equity source than its rival company. In fact, at the end of 2019, Bibica had an equity of
1,003,877,376,699 VND while the rival company only got 431,443,518,624 VND (Haihaco, 2020) (Bibica
Crop, 2020). The equity index of Haihaco is nearly 6 trillion VND less than that of Bibica enterprise. In
addition, the enterprise also has a much larger assets than the debt that the company must pay (Bibica
Crop, 2020). From there it shows that the company has a huge capital source. This is also a sign of
business success because when the capital is larger than the debt, it also means the company can pay off
the debt after doing business. Especially with a large amount of capital, the company neither need to
borrow interest nor depend on the bank. It also creates an opportunity for Bibica to invest in a more
profitable year in the following years.

Furthermore, despite experiencing the stressful Covid-19 epidemic, the company still achieved the
second-highest net sales compared to its competitors such as Hai CHau, Hai Ha, Hanoi confectionery. The
fact that the company's net revenue has increased by 8% compared to 2018 (Bibica Crop, 2020). This
shows that the quality of the company's products has satisfied customers' requirements, so that the
volume of product consumption increases with That is why the company's net revenue also develops
very strongly.

(Hoang, 2020)

- Weakness:
Despite having a huge and solid capital source, the company has accepted a net loss of more than 14
billion dong in the second quarter (Hoang, 2020). This issue of Bibica shows that the company's business
process is not really effective. The company has not received a profit after the strenuous business
process. Since then, the company's capital resources will not be able to grow if the company does not
gain profits from future business campaigns.

In addition, although Bibica's share price is still higher than Haihaco in 2019, the company's stock growth
is not as stable as its rival company. In fact, during the period from October 1 to October 15, the
company's stock price had many fluctuations in its rise and fall. For example, on October 9, the stock
price increased to 50,000, but on October 15, the stock price was reduced to 495500 (Bibica, 2020). The
unstable stock prices made it difficult to attract investors to dividends. The company's capital resources
will also see a negative change from not receiving investment. When the capital source is adversely
affected, it will create a barrier for both the expansion and development of the company. For instance,
when no investors buy dividends from Bibica, it means that the company's capital cannot grow. Since
then, the public will not have enough finance to pay for expansion strategies such as increasing
production volume, investment in advertising ...

5. Market resources:
Kinh Do is one of the relatively heavy competitors for Bibica company in terms of market resources.

- Strength:
Firstly, although the capital and Bibica are both big companies in the confectionery industry, they
always have different promotion strategies. Indeed, the capital always offers strategies to follow the
trend of youth. In fact, in 2017, the Oreo moon cake of Kinh Do was launched with new and popular
flavors such as chocolate, strawberry jam, cappuccino (Nguyen, n.d). On the contrary, Bibica does not
choose to follow the trend of young people, but the company uses a marketing strategy to address
consumer concerns (Nguyen, n.d). Bibica is very quick in analyzing the consumer psychology of
customers. Actually, customers nowadays tend to choose products with good quality instead of quantity
as before. Therefore, the company always has a strategy to improve the quality of traditional products,
not choose innovative methods according to the trend of young people like Kinh Do. From then on, it can
be seen that Bibica has a very good vision in product marketing. Because the trend is always an unstable
factor, it is very easy to change, so focusing on enhancing traditional products both helps the company
gain consumer trust and brings a lot of value in the long term.

Moreover, Bibica also enhances the brand value and reputation of the company through reportage
programs, documentaries. Especially, Bibica also combines product promotion with charity trips. In this
way, the company is also extremely successful in building customer-friendliness so that the number of
people who consume its products is also increased.

- Weakness:
Although the marketing strategy implemented by Bibica creates many opportunities for the company to
attract customers, the product distribution system is not really effective in dominating the market.
Indeed, the three main distribution systems of the company are concentrated in Ho Chi Minh city but not
across the country (Bibica, n.d). As a result, the company's products in the North are not very popular.
Meanwhile, rival Kinh Do is considered to have a very perfect distribution system (Nguyen, n.d). Kinh Do
launched a dense network of operations nationwide. Because Bibica's network of activities is not as
diverse as Kinh Do, businesses will encounter difficulties in bringing products to small regions and cities.
it also hinders Bibica's conception of the confectionery market. In fact, in terms of market share, Bibica
accounts for a much less proportion than its rival company, Kinh Do. Thereby, Bibica will not have a
competitive advantage over competitor Kinh Do in the same business market.
IV. Business decision:
Although in 2019 there are many factors that influence the formulation of a company's development
strategy. Indeed, the Covid-19 epidemic has made it difficult for many commodities to develop.
However, Bibica made a very bold decision to launch a new product of Lurich cracker during that
stressful epidemic. The company's decision to launch the product has been carefully considered by the
company through 3 factors.

First, new products are launched based on internal factors. Indeed, Bibica's strength is always carrying
on its mission to bring consumers products with full nutritional value (Bibica Crop, 2020). Based on the
quality factor of the product, the company decided to launch a snack with low calorie Lurich. From the
nutritional factors that the company put into the new product, it can be seen that the company has
fulfilled its duties and responsibilities as promised. Especially with the implementation of the company's
mission also increases the company's trust in using the product. Moreover, Bibica has a very good vision
in clearly defining the mission from the very beginning. Therefore, businesses can have advantages in
making development strategies as well as launching new products in accordance with the company's
mission.

On the other hand, the introduction of this new product also helps the company to balance its
finances in the company. In fact, one of Bibica's weaknesses is its finances. The company suffered a loss
of 14 billion in the second quarter (Hoang, 2020). The launch of new products enables the company to
restore profits in the business. For example, because the company's Lurich cracker has met consumer
demand, it's a low-calorie snack product. Therefore, the company's products will attract customers who
are in need of weight loss, diet ... The successful attraction of customers, helping the company increase
profit in the bakery product by 3% in 2019 (Bibica Crop, 2020). Meanwhile, the company also solves the
loss problem and continues to achieve profit growth targets in the future. It also helps to stabilize the
company's finances, creating opportunities for the company to receive more investment in dividends
and products.

Second, the company's strategy to launch new bakery products depends heavily on macro-
environmental factors. Indeed, among the 5 Pestel elements of the macro environment, the main social
factor created many opportunities for the company to decide to launch Lurich crackers. In reality,
Vietnamese society has many changes, since then people's lives have also been improved. The demand
for human products is also increasing in quality as people's lives change day by day. Moreover, due to
the stricter requirements of customers' products, the company must research and come up with new
products to meet the needs of consumers. Today, weight is always a concern, so there will be a huge
demand for products that are low in calories but still have enough nutrients. Especially for Bibica,
compliance with customer criteria is always central to the product development process (H.T, 2020). In
fact, all Bibica products are based on human consumption needs. Biblica's new product launch strategy is
perfectly suited and meets all the requirements for low-calorie products that today's consumers want.
Thereby, we can see that thanks to the lifestyle of everyone in society, Bibica can clearly see the needs of
consumers, so the company can successfully launch products that suit those needs.

In the end, Bibica's decision to introduce Lurich crackers was also based on competition with rival
companies in the market. In fact, Bibica's Bibica bakery is facing the challenge of each of its rival
company's alternative products. Indeed, rival company Tour Les Jours has launched a fresh alternative to
the company's sponge cake. Implementing a product launch strategy helped the company prevent the
risk of being replaced by a rival company. The company used its new bakery feature, the low-calorie
cake, to compete with fresh produce. The reason is also that consumers always believe that
confectionery is a product that contains a huge amount of calories, including fresh cakes or other
confectionery on the market. Therefore, consumers, especially those with obesity disease, are very
interested in buying confectionery. Bibica's new bakery products are brought to the market with good
response in terms of both nutrition and weight control (H.T, 2020). From there, it can be seen that
Lurich's new products have great potential for development in the market. In addition, the fresh
products of Tour Les Jours can only be used for one day while the products targeted by the company are
all products with a long shelf life. Based on this advantage, Bibica introduces a product that is both low
calorie and long-term in accordance with the current epidemic. This decision to launch this new bakery
product can become a powerful weapon for the company to combat alternative fresh bakery products in
the market.
 • SWOT Model :

- Have●a very
SWOT or TOWS
practical Model
development vision and - Not real love in making the company's mission
orientation.
- Have a very capital resource and the company - Not have a vision to expand to the world market
does not have a large amount of debt and are
not dependent on bank loans. - Not match organizational structure with the
- Have met the requirements of customers. scale
- Have the trust of customers.
and have good marketing strategies that bring
great value in the long run.
- Not have abundant human resources
- Have a scientifically organized structure that can
achieve all the goals and achieve a lot of - Not achieved high profits in the business process
efficiency in the working process.
- Have a human resource with high working skills - Not yet attracted investors in the stock market.

- Not evenly distributed network operations

throughout the territory of Vietnam.

Streng Weakness - Not able to reach all the customers in the

market.
th

Opportunitie
Challenges
s
- has been replaced by a fresh product

- Increase the number of products -Priced product prices

consumed in the market -Reduced profits
- Increase the number of products in - Insufficient quantities are supplied during
production in a short time production
- Increased capital - spend a lot of money on advertising and
- Increase productivity changing product packaging

- Attract more investors in production - The number of buyers is reduced due to

technology. consumers' habit of buying imported
goods.
V. Conclusion

Thus, through the process of analyzing the factors of the external and internal operating environment of the
company, we can see that Bibica is a company with great potential to develop in a perfect competitive market like
Vietnam. . From there, the investment in Bibica confectionery business can bring us a lot of profit in the present as
well as in the future.
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