ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Pha ̣m Thi ̣Thảo Ly Student ID GBH18137

Class GBH0801 Assessor name Đoàn Thi ̣Thùy Trang

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BIBICA CORPORATION
COMPANY PROFILE

INTRODUCTION

Company name Bibica Corporation

State full legal name of Bibica Joint Stock Company

company

Adress 443-445 Ly Thuong Kiet St. - Ward 8 - Tan Binh

Dist. - HCMC

Establish day 16/01/1999

Contact Person Mr. Truong Phu Chien – Chairman - CEO

Tel no (84.28) 3971 7920

Fax no (84.28) 3971 7922

Email bibica@hcm.vnn.vn

Website http://www.bibica.com.vn

Company type Joint Stock Company

Total Capital 1,119,459,018,138 VNĐ

Product Products cakes, candies, malt, nutritious powder, milk, dairy

products, soya milk, beverages, beverage powder
and others

Structure of ownerships Private enterprise

Talk about the type of Bibica, it is a profit organization.

2.1. Divident Per Share material (Annual report 2017)

According to the Annual Report 2017, the advance series 1 for dividend per share in 2017 is
10%. That means company profit after being paid for the debts and obligations, will be
share for shareholders. Definitely, Bibica must be a profit company.
 2.2 Bibica Listing Information (Vietstock)

Bibica is a public company. The figure indicates that Bibica is a public company. The listing
date of Bibica is 12/19/2001 on HOSE stock exchange market with the code of the
company’s stock is BBC.

2.3. Structure of Bibica ownerships (Provided by Vietstock 2018)

The pie chart shows that until 01/10/2019 state-owned shareholders start to have a holding
about 17.47% in the owner structure of Bibica. That means the rest of the holding (82,53%)
is belong to foreign and domestic individuals/institutions. It’s clear that Bibica is a private
enterprise.

In terms of Bibica’s type and purpose, let talk about their purpose. Bibica has a vision, that
is: “VIETNAM LEADING CONFECTIONERY COMPANY”. Their mission is: “CONSUMER
BENEFITS: NUTRITION VALUE & SAFETY OF FOOD HYGIENE/SOCIAL BENEFITS: 100 SCHOOLS,
1000 SCHOLARSHIPS.” In addition to Bibica purpose, their values are: “Providing customers
with products of nutritional value, ensuring food safety and hygiene, beautiful and
attractive forms, all because of the health and preferences of customers. Constantly
improve management, improve product and service quality to get the best products and
services with the best price. Maintaining a mutually beneficial relationship with agents,
distributors, suppliers and other business partners. Comply with state regulations, ensure
food hygiene and safety conditions for products manufactured at the company. Responsible
to society, contributing positively to society, protecting the environment for the quality of
life of the community.”

About the objectives of Bibica, it is divided into two type of objectives: economic objectives
and social objectives. The economic objectives that Bibica has planned are in 2018, a part
of Hung Yen project will be implemented and lasted until the end of 2019, using 250 billion
to invest in the factory. Bibica also plans to replace retail equipment such as candy cooking
system about VNĐ 22 billion, complete the packaging process. Regarding long-term
business strategy, by 2022 Bibica will become the leading confectionery company in
Vietnam. Sales from 2017 - 2022 average growth of 20% / year. In particular, focusing on
distribution system in big cities in Ho Chi Minh City and Hanoi accounts for 30% of sales. At
the same time, developing high quality confectionery line and nutritional product line, using
materials of natural origin; developing Online sales channels for retail stores and
consumers. About the social objectives, Bibica has many activities towards the community
and society such as the Relay Program to school (sponsored VND 170 million / year);
Explore the confectionery world (a place for students and students

exchange knowledge, practical experience, ... VND 230 million / year; To hand the
scholarship every year for students and students to study well, live well, have difficulties
(more than 50 million VND / year). Bibica is keeping on track with their purposes. In 2017,
Bibica put Hifat high quality candy production line into operation, market high quality milk
candy product AHHA. The company was implementing software to support business
management: Production regulation on ERP, BI Leadership Report and Sales App for Shop
key. According to Tien Phong (2017), from September 27 to October 4 2017, Bibica
coordinated with the Association for the Protection of Children, the Blind Association, the
Red Cross, Women's Union, My Phuoc (Binh Duong), Doan Binh Duong Province, Center.
promotion of trade and investment in Ho Chi Minh City, the Fund for businesses to organize
gift giving programs including: 4433 moon cakes, 1440 boxes of Lotte, 50,000 boxes of Hura
cakes for the less fortunate lives in Ho Chi Minh, Binh Duong, Binh Phuoc, Dong Nai, Hanoi.
The 2018 "Bibica - Relay to school" program, carried out from May 22 to May 31, 2018 in 35
elementary schools across the country. This year Bibica donated 1,000 grade 5 textbooks,
20 bicycles and thousands of confectionery gifts as the company's products with a total
budget of over VND 300,000,000. (Bibica home page). Bibica has always focused and cared
about the impacts that could affect the living environment of the Community, so in 2017
there were many innovations and improvements such as improvement from oil-fired
furnace to gas furnace (reducing cost fuel 115 million VND / year and the amount of
emissions to the environment decreased significantly); make use of condensed water (the
utilization rate of 19.6% of water use) re-use contributes to preserving water resources
(saving the company 280 million VND / year); Use biodegradable bags and non-woven bags
to help protect the living environment.
Every company has their own size and scope. Let’s start with the size of Bibica.
 3.1. Bibica Balance Sheet 2017 (Vietstock)
According to the Bibica Balance Sheet 2017, the total asset of Bibica is 1,119,459 Million
Dong. Also in the balance sheet 2017, Bibica’s total liabilities is 300,011 Million Dong. The
owner’s equity of Bibica base on The Balance Sheet 2017 is 819,448 Million Dong.
 3.2 Bibica Balance Sheet yearly (Vietstock)

It can’t be denied that Bibica is more and more development. According to the balance
sheet, the total assets 78,31 Million Dong fewer 2017 than 2016, liabilities increase slightly
11,72 Million Dong more 2017 than 2016. Owner’s equity of Bibica raise considerably
66,591 from 2016 to 2017.Liabilities/Assets 0,9% more 2016 than 2017. It’s a sign of the
progress of Bibica.

3.3 The number of labor and average income in Bibica 2017

3.4 The Bibica labour structure (Bibica Annual Report 2017)

The average annual labor of Bibica in 2017 is 1668 employees, lesser than 2016 69
employees. In a little more detail, the employees with Manual Labour take primarily 47.3%
out of 100% labour structure. Intermediate and Technical Worker is 25.54% in overall of
labour structure. Post Graduate is the smallest, 0.12%. The rest are University and Junior
College in order 14.87% and 12.17%. Mostly of Bibica’s employees are at the age of 22-35, a
young labour source.

3.5 Bibica’s retail distribution (Bibica Annual Report 2017)

Bibica’s scope is very large. In 2015, Bibica had 117 exclusive distributors, retail points and
their products had in 250 big and small supermarkets and grocery stores, export had small
market share. In December 2017, it had 120 exclusive distributors, available in all provinces
and cities nationwide. In 2017, they had more than 120.000 retail points in all over the
country. Bibica’s products available in more than 1.500 big and small supermarkets and
grocery stores. Export contributes about 7% in consolidated total revenue of the company.
The main market of Bibica is in the domestic market (accounting for over 90% of the
company's revenue). It is the Southern region, in which Ho Chi Minh City plays a leading
role. Until the end of 2017, Bibica exported to more than 16 nations and territories. It’s one
of the leading confectionery manufacturing and trading companies in Vietnam and has a
very familiar brand name to consumers. Each year the company can supply the market with
more than 20,000 tons of confectionery types such as Tet cake, hura cake, biscuits,
chocolate, moon cake, hard candy, and candy, ... in which Hura, Goody, Orienko, Migita, Tu
Quy, ... are quite strong brands in the market. (Annual Report 2015, Annual Report 2017)

The main products of Bibica are bread and candy. Bibica's Hura sponge cake has great
advantages in fresh cakes: delicious, beautiful packaging and especially shelf life of 12
months. The Hura’s price is at the middle. It is the main product line, accounting for 20% of
the Bibica's annual turnover, and also accounts for 30% of the national cake market share.
Let’s concentrate on the target customers of the product Hura. As a kind of food so Hura is
used by both genders without religion distinguish or racialist. The age of target customers is
from 7-35. They usually are officers, pupils, students, … who are busy and adaptable. Hura
can be used as snacks before go to work/school, during break time or used as gift. Target
customer’s location can be in cities, towns, countries. Hura brings convenience and healthy
for customers. However, there are now many brands that have the same target customers
with same kind of product like Kinh Do, Huu Nghi and become competitors for Bibica.

4.1 Bibica’s structure chart

According to the map of Bibica’s structure, it’s obviously a functional structure. It divided
into many blocks with their own function.

To know clearer about the function of departments, let take general manager and
marketing as example. General manager is the one who has the decisive influence on the
success or failure of the business. The general manager has to be the one who gathers the
wisdom of all employees in the enterprise, ensures right decisions and brings high
economic efficiency. Another important role of the general manager is to organize the
administration apparatus in sufficient quantity, strong in quality, rationally arranged,
balancing the administrator force to ensure sustainable relations in organization and
operation, good completion of the set objectives. Improper promotion or bonus will also
cause discontent in the apparatus, adversely affecting the corporate governance apparatus.
General manager has also an important role is to be responsible with labor. General manager
manages hundreds of thousands, even tens of thousands of workers. The role of the
director is not only responsible for the employment, income, life of the number of
employees but also responsible for the spiritual life, improving the level of education and
expertise for them, giving them opportunities to advance. (Luatduonggia, 2016)

The connection between the control board and the management is that there is a
representation of the management in the board. This implies the other board individuals
need to think about the choices taken by these individuals cautiously so that there are no
organization issues or conflicts. Just when the board and the management exist together in
an amicable way can there be genuine advancement for the association. The relationship
between the board and management become stressful when company is not doing well.
This happens as the board has a best perspective of the association and the administration
has a more profound understanding. Henceforth, to be reasonable for the administration,
they are the ones who need to run the association thus they can't be obliged by what the
board directs sitting on its roost. This is the exemplary issue that numerous organizations
confront particularly when they are not doing great and the solution for this is to bring the
board into certainty about the complexities of the everyday activities and running the
association.
There are three basic tasks of marketing: building customer relationship, understand
marketplace and create competitive advantage. Company often choose marketing to
establish the relationship between customers. They can update what information customer
would ask and give the truth worthy answers, they can be the online interaction with
customers, … Only by satisfying consumers will make them buy products from that
company again. To satisfy them, company should know who they are, what their favor is
and produce product basing on customer’s needs. After that, company make consumer
service to take care their consumers. Marketing can be used to understand marketplace.
Understanding marketplace is to do market research. As Kotler and Armstrong (2012, G5)
concerned, “market research is the systematic design, collection, analysis and reporting of
data relevant to a specific marketing situation facing an organization”. Understanding
market environment is really important because it help company take opportunities and
ward off threats. After that, marketers have to do segmentation, divide the big market into
small parts. Firms have to target a consumer group which fit with them. Then, marketers
should research the consumer behaviour. Company bases on the information to identify
consumer demands, what is the buying trend now, how good in quality do consumers
usually ask, then make the product to satisfy those needs, set reasonable price, spread out
them, sell them and capture value from them. The last basic role of marketing is to create
competitive advantage. The marketing strategy not only have to be accordant with
consumers but also can be opportunist with opponent’s strategy having the same target
customers. To be differentiable, company should have special products which help them to
stand out from others. It may come from their product quality, product distribution,
customer services, people and their own image.
Although marketing plays a key role in business in several ways, it is just a partner in
attracting and keeping consumers. It must effectively partner with other company
functional units to form a value chain serving customers. The relationship between
marketing and R&D is an example. Any organization must link closely the R&D effort to the
marketing and the product development efforts. A lot of technology oriented companies
develop products without concerning the relationship between marketing and R&D which is
engineer’s dream but marketer’s nightmare. The relation between marketing and R&D is
shown in the new product development efforts of firms. From generating idea to the final
product development stage, new product requires the close interaction between R&D and
marketing. Marketing research inputs on product depicts most desired by many objective
market segments, have a positive effect on product design stage (which is regarded as the
sole domain of R&D). When creative focus on the combination of R&D and marketing, it’s
called marketing innovation. Marketing innovation bring the real advantage of product, and
the competitive advantage of a company. (Sciencetificbulletin, 2012)

Organization structure is established to fulfil the objective. It will be suitable for Bibica to
achieve their objectives with this kind of structure. Specifically, the first objective of Bibica
is by 2022 become the leading confectionery company in Vietnam. The development of
company requires the structure expand in horizontal. Each manager level has to perform
the function of management which need the depth knowledge to make a right decision.
Each block has their own tasks base on the objectives of company. To be the leading
confectionery company in Vietnam, it’s market share has to be the largest one and the
amount of confectionery consumption is large too (marketing block). The product system of
company is not only high quality in product but also in packaging, diversity in type (R&D
block and QA block task). Besides, the equipment has to be invested more to bring the
highest efficiency (investment techniques block and finance block task), … There should be
more competitive advantage, building unique products and customers relationship
(planning and service block and marketing block task). To do all these tasks, blocks have to
perform their own jobs and incorporate with other blocks well. Bibica also plan to reach the
revenue from 2017 - 2022 having an average growth of 20% / year. This kind of structure
develop the best professional capacity of each block. If company wants to increase the
average growth per year, it has to have increase the number of customers, average
transaction size, the frequency of transactions per customer or raise product price. But
Bibica products are in middle price and low price so this is a difficult task. To approach the
objective, there must be efficient working of every block requiring their professional
capacity. Hanoi and HCMC are 2 largest consumption market of Bibica. Their objective is
focusing on distribution system in big cities in Ho Chi Minh City and Hanoi accounts for 30%
of sales. The company will invest to expand production at Eastern Bibica Limited Company
and Northern Bibica Company Limited to promote consumption by product diversification,
increasing in product number and large distribution system. They all depend on marketing
block and other block. High concentration on each block is really important for Bibica’s
development. In general, a joint stock company with many branches and distributors like
Bibica, functional structure is suitable for Bibica to reach their goals.

In general, functional structure is one of the most traditional structures. However, every
coin has two sides, like other structures, this kind of structure has its own pros and cons.
The first advantage of functional structure is specialization. It guarantees a trustworthy
dimension of departmental competence. Enrollment in this gathering could require a
bachelor's degree in software engineering, manager's recommendation and a minimum
number of years of field involvement. This ensures support issues are taken care of by
completely qualified personnel, which builds consumer loyalty and maintenance. The
second benefit of functional structure is operational clarity. Isolating the workforce
according to function make it clear in organizational responsibility and task division. This
tends to dispose duplication of things that waste time and effort, makes it less demanding
for management to guide work to suitable employees. About the disadvantage, the primary
disadvantage of this kind of structure is lack of coordination. As the characteristics of
functional structure, different blocks only focus on their own tasks and put these on top. In
some cases which need corporation between departments, managers of other functional
groups may not respond helpfully or in a timely way because they suppose that it is not
their problem. By the time the need for cooperation has been established, the moment
when cooperation would have been most effective may already have passed. The second
disadvantage of functional structure is many commanders. Functional structure makes
public management apparatus. Each employee has too many heads: material, technology
and planning managers. That makes it difficult to implement a responsibility regime and
establish a proper discipline regime. Many heads not only do not give the same orders but
sometimes give conflicting orders, employees do not know who to follow. That’s all about
the pros and cons of functional structure.

Nowadays there are a lot of companies following this kind of structure like Honda,
Vinaconex, DIP Vietnam, Hoa Phat, DHG Pharma, …

In brief, Bibica company is a private profit company. It’s a public enterprise. As a Vietnam
brand, experting in manufacturing and trading confectionery for more than 20 years, its
brand is very familiar to Vietnamese consumers. To become the leader in Vietnam
confectionery business by 2022, Bibica has to keep developing and go beyond their big
component Kinh Do. Although Bibica have not be the leader, by the advantage
understanding Vietnam confectionery market for a long time, Bibica is able to be the leader
by far, a suitable investment choice.

Reference
Vietstock. Viewed 20 January 2019 from https://f3.vietstock.vn/BBC/transaction-
statistics.htm

Bibica. Viewed 20 January 2019 from http://www.bibica.com.vn/

Tien Phong. Viewed 20 January 2019 from https://www.tienphong.vn/kinh-te/bibica-to-

chuc-nhieu-chuong-trinh-tu-thien-xa-hoi-1194090.tpo

Phillip Kotler & Gary Armstrong (2012). Principles of Marketing. Pearson, Fourteenth
Edition, G5

Scientificbulletin. CROSS-FUNCTIONAL LINKAGES BETWEEN MARKETING AND THE OTHER

BUSINESS FUNCTIONS IN AN INDUSTRIAL ORGANIZATION. Viewed 18 January 2019 from
https://www.scientificbulletin.upb.ro/rev_docs_arhiva/fullb5f_319240.pdf

Luat Duong Gia. Viewed 22 January 2019 from https://luatduonggia.vn/vai-tro-cua-giam-

doc-trong-doanh-nghiep-va-giai-phap-nang-cao-chat-luong-giam-doc-trong-cac-doanh-
nghiep-nha-nuoc-o-viet-nam-hien-nay/