Chapter 4: Part 2- Strategy formulation and implementation

PRACTICE:

Identify the types of corporate-level strategies that Kinh Do Company has implemented
in the process of developing business activities in each period.

Introduction: In 1993, Kinh Do Food Processing and Construction Co., Ltd was established in
Binh Duong province, it launched Snack cake production line.

1. In 1996, the Company invested in building a new factory of a cookie production line in
Thu Duc District- Ho Chi Minh City.

Concentration…………………………………………………………………………………

2. In 1997 & 1998, the Company continued to invest in an industrial line of bread and cake
production equipment. At the end of 1998, Chocolate production line was put into operation.

In 1997&1998 growth in backward vertical integration

At the end of 1998, growth in horizontal integration

3. In 1999, the Company invested in building Savico - Kinh Do Trading Center - Ho Chi
Minh City and build Kinh Do Bakery system - the direct sales channel of the Company.

Growth in unrelated diversification

4. In 2000, Kinh Do Company continued to expand its factory and invested in a production
line of Cracker Savory Cake.

growth in backward vertical integration

5. In 2001, Kinh Do began to promote exports to the United States, France, Canada,
Germany, Taiwan, Singapore, Japan ... and established North Kinh Do Food Processing Joint
Stock Company.

Growth in horizontal integration and unrelated diversification

6. In 2003, Kinh Do acquired Unilever's Wall’s ice cream factory (the market share of Walls
ice cream at that time was 50%).

Growth in unrelated d7. In 2005, Kinh Do bought Tribeco's shares in order to make good use
of TRI's distribution system as well as support TRI to develop more effectively through
KDC's distribution system.

By 2008, Tribeco 's equity was negative 5.32 billion dong, a loss of 145 billion dong.
Tribeco's stock went downhill and Kinh Do was forced to withdraw from Tribeco in 2012.

…………………………………………………………………………………………………

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@Ms. Duong Thi Hoai Nhung Page 1

 Chapter 4: Part 2- Strategy formulation and implementation

8. In 2007, Kinh Do and Nutifood allied together to contribute capital to invest outside the
industry, real estate, the both of companies did not launch any common products in the
traditional industry.

By the end of 2008, according to Nutifood's financial report, the company's loss was about
VND 150 billion, approximately the charter capital. After 5 years of capital contribution to
Nutifood, KDC divested from Nutifood

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

9. In 2008, Kinh Do merged with Vinabico which the company is leading the market of fresh
cake and candy.

…………………………………………………………………………………………………

10. In 2013, Kinh Do bought a stake in Saigon Ve Wong Company, originating from Taipei
and occupying about 5% of Vietnam's noodle market with A-One brand.

…………………………………………………………………………………………………

11. In 2014, KDC announced that it would hold 24% of the shares of Vocarimex, Vietnam
Vegetable Oils Industry Corporation (Vocarimex), which owns 2 enterprises with a large
market share of Tuong An Company (trademark Tuong An) and Tan Binh (Nakydaco brand).

…………………………………………………………………………………………………

12. July 15, 2015- Kinh Do JSC transferred 80% of confectionery segment to foreign investor
Mondelez (USA), Kinh Do Joint Stock Company only owns 20% of Kinh Do Binh Duong
Joint Stock Company.

…………………………………………………………………………………………………

13. In 2015, Kinh Do also invested in Dong A Bank, Kinh Do spent VND 1,000 billion to
buy 100 million Dong A Bank shares at par value.

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@Ms. Duong Thi Hoai Nhung Page 2