GROUP ASSIGNMENT

Course: MGT103 - Introduction of Management

Lecturer: Nguyễn Thị Thanh Nhàn

Class: MKT1801

Group name: Group 5

Group members: Lý Thanh Trúc-SS170098

Trần Thiên Bảo-SS180870

Lương Xuân Danh-SS170046

Phạm Thành Nhân-SS170022

Table of content 1

1. Introduction 2

2. Body 2

2.1 Internal environment 2

2.2 External environment 4

2.3. Organizational structure 5

2.4 One to two management issues or challenges faced by that company 6

2.5 Suggestions and strategies to overcome the obstacles 7

3. Conclusion 9

References 9

1
1. Introduction

Table 1. General introduction

VNR500 rating 50

Tax code 0300583659

Stock code SAB

Head office Số 187 Nguyễn Chí Thanh - Phường 12 - Quận 5 - TP. Hồ

Chí Minh

Tel. 028-38296342

Fax 028-38296856

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

Year of establishment 01/06/1977

(Source: VNR500, 2023)

2. Body

2.1 Internal environment

Economic sectors

Sabeco, also known as Saigon Beer Alcohol Beverage Corporation, is a Vietnamese company
that specialises in the production and distribution of alcoholic and non-alcoholic beverages.

2
The business's main sector is the beverage industry, and its goods are classified as relating to
the following market segments.

First of all, about the Food and Beverage Manufacturing, Sabeco produces a wide range of
alcoholic and non-alcoholic beverages, including beer, wine, spirits, and soft drinks.
Specifically , the company's main product is Saigon Beer, a well-known beer label in
Vietnam. Second , refers to Retail and Distribution, with an infrastructure of wholesalers,
merchants, and distributors spread throughout Vietnam, Sabeco sells its products. For
instance, the company has established a strong presence in the domestic market and has
expanded its distribution network to other countries in the region. Third, about Hospitality
and Tourism, Sabeco's products are widely consumed in the hospitality and tourism industry,
including hotels, restaurants, bars, and nightclubs. With the purpose of promoting its products
and raising customer awareness, the corporation also sponsors a variety of cultural and
athletic events.

Overall, SABECO operates primarily in the food and beverage industry, but it also has a
presence in the manufacturing, retail, and export industries

- Total labours in 2021 : 8,135 employees

- Total revenue in 2021 : 23,238,177,342,527 VND

- Total capital : 6,412,811,860,000 VND

3
From all the statistics, Sabeco is a large enterprise .

2.2 External environment

Some of the major competitors of SABECO in Vietnam include Hanoi Beer Alcohol and
Beverage Corporation (SABECO), Heineken Vietnam Brewery, and Carlsberg Vietnam.
SABECO's customers include individuals, households, companies, and government agencies.
The individual and household segments are the largest customer groups, accounting for the
majority of SABECO's sales. SABECO also has contracts to supply beer to a number of
government agencies and companies, such as airlines and hotels. SABECO's key suppliers
are primarily local companies that provide raw materials such as malt, hops, and yeast.
SABECO also imports some of its raw materials from international suppliers. The company
relies on a steady supply of quality raw materials to ensure the consistency and quality of its
beer products. SABECO faces competition from substitute products such as wine, spirits, and
soft drinks. While beer is a popular beverage in Vietnam, consumers have a range of options
when it comes to alcoholic and non-alcoholic drinks. Overall, the external environment of
SABECO is characterised by competition from domestic and international beer producers, a
diverse customer base, a reliance on local and international suppliers for raw materials, and
the availability of substitute products.

2.3. Organizational structure

4
In order for Sabeco to be widely known in the market, SABECO has specific strategic
campaigns in the marketing department. The marketing department has strategies such as
advertising on television, through social networks, the internet and in the press and media. In
addition, Vietnamese people have heard about radio from the past, so advertising through
radio is also a marketing department strategy. SABECO's marketing department gives
customers a better view of the product through quick advertising on all strategies.

About the Investment Department , the top brewer in Vietnam, Sabeco, decided to switch to
Cadena HRM Series 5 as its new human resource management system by the end of 2019.
This was done to unify and consolidate its many HR systems and enhance its operational
procedures. Using a combination of Excel spreadsheets and regional systems, Sabeco was
still in charge of administering the payroll and human resources for its 10,000 employees.The
price of maintenance was high. Processes were time-consuming and weighed down by
copious paperwork. Compared to other providers Cadena has a higher quality of service and
customer support. It is developed based on more than 15 years of experience in implementing
HR and payroll systems for many different industries across many Southeast Asian countries.

Besides, the Investment Department takes responsibility of advising and assisting the Board
of Directors and the General Director in planning and developing strategies for the
development of breweries under the SABECO system, annual and long-term investment
plans for the Corporation.Furthermore, participating in planning and deploying the
warehouse system for beer sales, and supervising the execution of the planning, development
strategies, annual and long-term investment plans, as authorised by reporting SABECO's
management on the performance of their investments. Thus , regarding the R&D department,
they have accelerated the process of research and development of product portfolios to give
customers more choices, promote product quality improvement, and also reduce product
costs to improve product quality. gain a large number of consumers. Not only that, it also
aims to affirm the company's position in the Vietnamese beer market as well as satisfy the
consumer trends of buyers.

Regarding the R&D department, they have accelerated the process of research and
development of product portfolios to give customers more choices, promote product quality
improvement, and also reduce product costs to improve product quality. gain a large number
of consumers. Not only that, it also aims to affirm the company's position in the Vietnamese
beer market as well as satisfy the consumer trends of buyers.

5
2.4 One to two management issues or challenges faced by that company

Sabeco is the Saigon Beer-Alcohol-Beverage Corporation. So, more or less, the company
also faces many problems and challenges during its operation.

This passage will help us understand the problems that Sabeco is facing today. Firstly,
COVID-19's effects on the supply chain: The COVID-19 epidemic has disrupted several
supply chains throughout the world, notably those for the beer sector. Due to the shutdown of
industries and ports, as well as the disruption of transportation, Sabeco has had difficulty
obtaining raw materials and packaging materials. The company's profitability has been
damaged as a result of manufacturing delays and increased expenditures. Besides, Sabeco
competes against a number of domestic and foreign breweries for market share in an industry
that is very competitive. The firm has struggled to preserve its market position and
profitability in the face of fierce competition, which has led to price wars and promotional
activities that might have a long-term negative influence on the company's profitability. Also,
the introduction of new and creative rivals has exacerbated rivalry and made it difficult for
Sabeco's management team to maintain market leadership.

In conclusion, Sabeco faced several management issues and challenges in 2021, including
supply chain disruptions and increasing competition. Due to these difficulties, the business
has had to be flexible and responsive in order to adjust to shifting consumer demands and
market conditions.

2.5 Suggestions and strategies to overcome the obstacles

From COVID-19, the whole world has been severely affected, not only Sabeco. However,
after COVID-19 ends, it is time for companies and corporations to race to restore the market
with smart strategies, and each company or group has its own ways to get out of this
situation. stagnation. With Sabeco, the company must immediately open meetings, deploy
accurate plans to ensure production capacity as well as the company's supply chain, optimise
transportation routes, and optimise the quantity of products. The warehouse and operation
will be effective in delivering the freshness of the beer. In addition, it is also necessary to
study more about the potential of applying technology, improving production processes
quickly to compete with competitors in the market. Polarity offers outstanding potential plans
for new products and continues to conduct thorough research and evaluation before bringing
the product to market so that it can continue to rise or maintain its position in the competitive

6
market. Not only that, Sabeco must continue to promote the spirit of workers to create a
passionate working environment with bonuses. In addition, we must continue to create
efficient workflows that optimise worker time and effort, and with new workflows that help
with productivity.

SMART Goals

Goals : Develop Vietnam’s beverage industry to keep pace with the world.

Specific (S) Increase the production capacity of Sabeco's manufacturing facilities by

20% over the next 2 years.

Measurable(M) Monitor the monthly production output of each manufacturing facility

and track progress towards the 20% increase in production capacity.

Achievable(A) Evaluate the feasibility of increasing production capacity by assessing

the availability of resources such as raw materials, equipment, and
skilled labour.

Relevant(R) It aims to boost the beverage industry's competitiveness and encourage

the expansion of the Vietnamese economy.

Investments in marketing, distribution networks, R&D, and the

establishment of reliable supplier and distributor relationships are all
examples of relevant objectives.

Time-bound(T) This goal has a specific timeline of 5 years, which provides a clear
deadline for achieving the objective.

7
 Goals : There is a problem in human resource management of SAB company

Specific (S) The goal is specific in terms of what is expected to achieve. It specifies
that SABECO Co will reduce employee turnover rate by 20%, increase
employee engagement scores by 15%, and improve training and
development programs to achieve a satisfaction rating of 4 out of 5

Measurable(M) The goal is measurable in terms of the 20% reduction in employee

turnover rate, 15% increase in employee engagement scores, and a
satisfaction rating of 4 out of 5 for training and development programs.
These measures can be tracked and quantified.

Achievable(A) The goal is achievable as it is based on the company's current

capabilities and resources. SABECO Co has the necessary resources to
improve its human resource management practices and reduce employee
turnover rate while increasing employee engagement scores.

Relevant(R) The goal is relevant to the company's overall objective of improving its
human resource management practices to retain talented employees and
maintain a competitive advantage.

Time-bound(T) The goal has a clear timeline, with a deadline set for the end about 2023
or 2024. This allows for accountability and helps to ensure that the
company stays on track.

3. Conclusion

Overall, Sabeco is the oldest beer and beverage company in Vietnam with a track record of
growth and profitability. External and internal factors contributed to the increase in sales.
Besides, Sabeco also has a strong organizational structure and a reasonable business strategy,

8
which changes according to the needs of customers. However, like many other businesses,
Sabeco will face difficult challenges in the process of doing business. Its continued success
will depend on its ability to adapt to changing market conditions.

References

Armstrong, M. (1999). Managing Activities. London: CIPD.

Campbell, D. & Craig, T. (2005), organization and business environment, Elsevier, UK:
Oxford.

Graicunas, V.A. (2004). In: Cole, G.A. (ed.). Management Theory and Practice, 6th edn.
London: Thomson.

Lawrence, P.R. and Lorsch, J.W. (1969). Organisation and Environment. USA: RD
Irwin.

Taylor, F.W. (1998). The Principles of Scientific Management. Toronto: Dover.

Urwick, L.F. (1955). The Elements of Administration. London: Pitman.

Weber. (1964). The Theory of Social and Economic Organisation. USA: Macmillan.

Worthington, I. & Britton, C. (2006), the business environment, Pearson, UK.