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Hrm asm1 - asm 1 hurman resources management

hurman resource management (Đại học FPT Hà Nội)

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ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title 5035: Human Resource Management

Submission date Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Student ID

Class Assessor name

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature:

Grading grid

P1 P2 M1 D1

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Internal Verifier’s Comments:

Signature & Date:

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I. Introduction.

II. Overview of Vinamilk.

1. Company introduction.

Vinamilk is the biggest dairy company in Vietnam. Based on the UNDP 2007 Top 200 largest firms in
Vietnam report, it is also the 15th largest company in Vietnam. The principal activities of the Vinamilk
are produce and distribute condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice-cream,
cheese, fruit juice, coffee and other products derived from milk. We have
the leading distribution network in Vietnam, giving us broad access to
consumers. We generate a substantial majority of our revenues from sales
of our products in Vietnam comprising both dairy and non-dairy products
and export to countries such as Australia, Cambodia, Iraq, the Philippines
and the United States We are the leading producer of dairy products in
Vietnam based on sales volume and revenue. Our products range from
core dairy products such as liquid and powdered milk, to value-added dairy products such as
condensed milk, drinking and spoon yogurt, ice cream, and cheese. We offer one of the largest dairy
portfolios in Vietnam, across a wide selection of products, flavour, and packaging sizes. We market the
majority of our products under our “Vinamilk” brand, which has been designated as both a Famous
Brand and one of the Top 100 Strongest Brands in 2006. We have also been voted the top brand in the
“Top Ten High-quality Vietnamese Goods” for each year between 1995 to 2007.

2. Vision.

To become a world-class brand in the food and beverage industry with nutritional and health
products that are trusted by everyone.

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3. Mission.

Vinamilk is committed to providing the community with the best nutrition through its respect, love
and high responsibility to human life and society.

4. Brand core values.

+ Integrity: whatever the company does is honest, transparent and ethical.

+ Will: dare to think, dare to do, dare to take responsibility to overcome all challenges to achieve
committed goals.

+ Creativity: appreciate passion, unique discoveries and innovative solutions.

+ Efficiency: always pay attention to added value in all investment, business and work activities.

+ Respect: self-respect, equality and dedication to the company's development.

+ Harmonizing benefits: Vianmilk's benefits are also the benefits of employees, partners, the state
and society.

+ Openness: frank communication with a constructive spirit is the basis to help staff become more
engaged and stronger (Vinamik, 2021).

5. Strategic objectives.

In 1998, Vinamilk began exporting its first powdered milk products to the Middle East, with the main
market being Iraq under the United Nations' oil for food supply program. This is the company's first
activity in the world market. Since then, after many years of efforts to find markets and participate in
trade promotion activities, Vinamilk's products have been exported to 43 countries around the world
with many product categories such as: milk powder, nutritional powder, condensed milk, yogurt...

Vinamilk's initial goal when investing in this market is not revenue and profit. However, the brand
and position of Vinamilk has been raised to a new level, paving the way for a foreign-invested

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enterprise to move forward. And this has been proven by the fact that Vinamilk entered the Forbes
rankings with high rankings for both the company and Vinamilk's leadership. It was Vinamilk's moves
to invest in international business strategies that made this brand a booming business "phenomenon"
during the crisis period at that time.

Vinamilk's international business strategy is now more specific. Producing products with high added
value, forming a closed "upstream" supply chain for consumers (Everest, 2022).

6. Business goals.

The goal of a differentiation strategy is to gain competitive advantage through creating customer-
specific products that satisfy customer needs in ways that competitors cannot.

The purpose of Vinamilk's business strategy is to meet the needs of a certain market segment
determined through geographical factors, customezr objects or product characteristics...

The company pays great attention to designing new, appropriate packaging designs and continues to
use media channels to promote its image. The company focuses on improving product quality,
diversifying product types and researching new product lines to fully meet customer needs and
contribute to dispersing risks for the company (Everest, 2022).

III. The analysis of industrial characteristics of Vinamilk and public HRM strategy.

1. The analysis of industrial characteristics of vinamilk.

1.1. Competitors.

Looking at the market, Vinamilk is currently facing relatively high competition in the dairy industry
with domestic and imported brands. We can mention a number of competitors that are creating
strong competitive pressure for Vinamilk, including: TH True Milk, Nesle, Abbott, Mead Jonson,... In
the future, the milk market will continue to expand and develop, leading to The level of competition
increases.

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Specifically, in milk products alone, Vinamilk accounts for a high proportion of sales but faces big
brands such as: TH True Milk, Dutch Girl, Moc Chau,... All of these brands have many brands.
Impressive marketing strategy, strong financial resources focusing on research and product
development.

Pressure from Vinamilk's competitors in the industry includes the extremely high number of
competing businesses. Fierce competition among businesses in competing for market share. At the
same time, low conversion costs greatly affect Vinamilk's competitiveness (Hai, V. 2023).

1.2. Customers.

Customers have the ability to put pressure on Vinamilk regarding the quality of dairy products.
Competition in the dairy industry is very large, leading to price differences in the milk market. This
makes switching costs between Vinamilk dairy products and other brands relatively low. Customers
can choose to use many different milk brands when they need to change the flavor or want to try a
different brand. Furthermore, today's consumers have also become more knowledgeable as they can
easily search for complete information on the Internet about products and compare them to make
appropriate choices. This has a significant impact on Vinamilk's total revenue because of customer
considerations (Hai, V. 2023).

1.3. Alternative products.

In order to meet the increasing desires of consumers, the food market always has constant changes
in product diversification. Facing this situation, Vinamilk is under great pressure from alternative
products. The product easily replaces other types of milk but still provides adequate nutrients such as
nut milk, soy milk, yogurt, cereal, beverages mixed with milk,...

These products can generally still provide necessary nutrients, are not too fatty and still retain high
nutritional value. However, this impact on Vinamilk is still weak because alternative products have a
short shelf life, are not as easy to use as Vinamilk and cannot completely replace the uniqueness of
traditional dairy products (misa amis, 2022).

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1.4. Suppliers.

Vinamilk also promotes its strategy of building dairy farms in Vietnam. This ensures supply and
controls the quality of its dairy products. Since its development until now, the brand has had 12 of
Asia's largest international standard farm systems, with a herd of 130 thousand cows.

All Vinamilk farms apply 4.0 technology in managing and raising dairy cows. Cows are imported
directly from the US, Australia, and New Zealand, creating a premise for Vinamilk to obtain the highest
quality fresh milk products. This farm system provides Vinamilk with 950 - 1000 tons of milk every day.
In particular, grasses specifically for cows are also self-controlled by the brand. Therefore, milk
suppliers for Vinamilk are gradually limited, leading to the supplier's bargaining power becoming
weaker (misa amis, 2022).

1.5. Potential opponents.

Product characterization: Most of the world's major dairy brands are present in the Vietnamese
market. Including large dairy companies, which own a certain market share and have little change over
time. So any new competitor wanting to enter the industry must have strong investment and the
ability to influence the old brand loyalty of consumers.

The reason new participating businesses cannot compete and dominate Vinamilk's market share is
because it requires huge costs to build a brand, operate machinery, factories, etc. Therefore, to survive
and develop to develop and gain customer trust, new businesses need to innovate with different
quality (Hai, V.2023).

2. Public HRM strategy.

2.1. Plamning.

According to shareholder meeting documents, in 2023, VNM expects total revenue of 63,380 billion
VND, an increase of 5.5% compared to 2022; Profit after tax was equivalent to last year at 10,496

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billion VND. Profit after tax for shareholders of the parent company is 8,514 billion, equivalent to 2022
results (Vietstock, 2023).

Source: Vinamilk, 2023.

Vinamilk often buys advertising time on popular television channels and radio stations to reach a
large number of potential customers, specifically: Has invested heavily with an amount of 2,000 billion
VND/year for advertising costs in period 2016-2019, with the goal of focusing on improving brand
image and maintaining a positive impression in the minds of consumers. Every year, they launch a new
advertisement, with images of happy and funny cows accompanied by memorable songs. This is how
Vinamilk creates a strong connection with users, especially children, the main consumers of the
product (Hai, V. 2023).

2.2. Recruitment and selections.

The company organizes recruitment at major universities nationwide. This is not only an
opportunity for students but also an opportunity for students to learn and discuss about Vinamilk,
thereby orienting their future careers. These activities are carried out on campus to help students
confidently demonstrate their abilities to employers. Not only recruiting talents for the company, but
the company is also interested in contributing to social benefits in many aspects. This activity helps
students realize their own abilities and help them improve those skills (Vinamilk, 2016).

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With the desire to help students find a job they love and have the opportunity to develop with one
of the leading companies in Vietnam, we always strive to create all conditions to turn your career
dreams into reality realistic.

In 2020, under the impact of Covid-19, human resources is truly a challenging problem for
businesses. In that context, Vinamilk, on the one hand, stabilizes the production and business
situation, and on the other hand, maintains the strength of human resources through talent
recruitment activities. In 2020, Vinamilk's rate of newly recruited employees reached 7%. At the same
time, the company deploys many human resources and organizational solutions to ensure the
company's operations and at the same time, attract and retain talented people.

The company flexibly organizes many training programs in many different forms, equipping a variety
of methods for employees to conveniently participate in courses. In total, in 2020, Vinamilk had nearly
27,400 students participate in training classes to improve knowledge, skills, and capacity...

2.3. Training and development.

The company has been preparing high-quality human resources in the future by recruiting students
from qualified universities and sending those students to study abroad. Officials and employees who
require study will be supported by the company for 50% of the cost of courses to improve their skills
and professional qualifications. In addition, the company also organizes short-term training courses
and sessions to help employees acquire new knowledge to be creative at work.

In 2020, the company launched the Management Trainee (MT) program, attracting more than 1,500
candidates. These are excellent young talents, eager to learn, have a creative and management
mindset, and are ready to take on management positions in the future. In previous MT programs, 41%
of MTs became corporate managers.

Ms. Bui Thi Huong, Executive Director of Human Resources, Administration and External Affairs of
Vinamilk shared: "At each stage of development, we need to have appropriate and ready human
resources. Therefore, at Vinamilk, Human development training is always valued and invested in.
Vinamilk has organized the Management Trainee program as well as talent incubation programs and

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successor team development programs for many years. These programs has helped Vinamilk have a
force of young talents ready for important management positions to implement the Company's
strategic goals."

The training and development process of an Management Trainee lasts 18 months, in which
Vinamilk will outline a clear rotation path for you with many challenges. With the goal of becoming a
management level of the Company, you will not only experience real work but also be given the
opportunity to participate in large projects. This requires you to learn and practice from the
perspective of administrators. The challenge will be greater when you need to assert yourself in a
large organization in both scale and position like Vinamilk, the leading nutrition company in Vietnam.
But this is also the attraction of the program for young people who have ambition and determination
to develop themselves (Vinamilk, 2022).

2.4. Performance manage.

2022 is the year the Company is run by a new Board of Directors and Vinamilk has continued to
increase its brand value to 2.8 billion USD, an increase of 18% over the same period, becoming the 6th
largest milk brand globally ( according to Brand Finance) and maintains its ranking in the Top 40 largest
dairy enterprises globally in terms of revenue (according to Plimsoll).

In 2022, total consolidated revenue will reach 60,075 billion VND; Profit after tax reached 8,578
billion VND. In particular, 2023 also marks the milestone of 20 years of successful equitization of this
enterprise. With revenue increasing 15 times and profit increasing 13 times compared to the time of
official equitization in 2003. With a total contribution to the State budget since then of nearly 55,300
billion VND, Vinamilk has always been in the group of businesses. The company pays the highest cash
dividends to shareholders, with a cumulative total of VND 76,228 billion since listing in 2006.

The company's 2023 revenue target is 63,380 billion VND, an increase of 5.5% over the same
period, and pre-tax profit plan is 10,496 billion VND, equal to 2022 (baochinhphu, 2023).

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2.5. Work environment.

Entering its 8th year, the best places to work in Vietnam survey is a reputable source of information
on personnel trends and human resources. This year, the scale of the survey was expanded to
measure the employer brand attractiveness of 675 businesses, in 24 industries with the participation
of 75,481 experienced working people.

Vinamilk has also affirmed its great "attraction" to the labor market when for the third consecutive
year it was voted to lead the Top 100 best places to work in Vietnam, according to Anphabe
Professional Networking Community Organization and the Company Intage market research.

Not only is it a brand that workers want to "join", Vinamilk has also received very positive
evaluations from the Company's staff. According to the results of an internal survey in 2020 on 5
aspects key aspects are Work, Direct Management, Colleagues, Compensation - Welfare, Training and
Development, the employee satisfaction index at Vinamilk reached 91.9%. This is the highest increase
in years the company conducts this survey.

All show that Vinamilk is a business with heart and vision for its employees. This human resources
management strategy of Vinamilk brings satisfaction to employees and attracts many talents to
promote Vinamilk's development reach out to the world. This is a successful strategy in the field of
Vinamilk brand development, also creating community value as well as building a good brand value for
Vinamilk. The purpose of this strategy is to help Vinamilk improve flexibility, innovation and
competitive advantage, improving business efficiency. Not only that, when this strategy is applied
properly, it can increase each employee's satisfaction in their work, help create a better working
culture, and improve consumer satisfaction rates (Vinamilk, 2021).

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Source: Vinamilk, 2021

2.6. Salary and bonus.

Vinamilk Dairy Joint Stock Company, in any branch or area, the company will recruit positions within
the company fully and regularly to ensure the working process, selling dairy products and perfecting
the human resources system company at that branch. Each job position will have a different basic
salary, depending on the functions, tasks, responsibilities, workload, and nature of the work at that
position.

Workers working for Vinamilk company with positions working on automatic lines, packaging,
stamping products... will receive an income of 7,500,000 - 8,500,000 VND/month. Workers working in
milk warehouses will receive a salary of 450,000 VND/day, if plus allowances, the monthly income is
equivalent to 15,000,000 VND.

In addition, there are other Vinamilk employee positions such as the company's human resources
staff, the company's technical staff operating machinery, the company's sales staff... Will receive the
minimum salary suitable for each position, you will be assured of the salary and workload suitable for
each position you are working or intend to work in Vinamilk Dairy Joint Stock Company in Vietnam.

The company also regularly has reward programs and has many salary increases for employees who
perform excellently and work according to their long-term seniority at the company (Glints, 2023).

IV. Company's digital business transformation.

1. Vinamilk's digital transformation.

Vinamilk has invested in technologies that reduce emissions and are environmentally friendly. Such
as operational management software to increase performance and optimize energy for machinery and
equipment; using LGV robots to replace old forklifts helps reduce up to 62% of emissions, or a heat
recovery system helps recover up to 92% of excess heat and reuse it to save electricity. Businesses
estimate that the money from saving resources now and in the future will bring benefits higher than
the initial investment costs, especially when the price of raw materials/fuels is increasingly expensive.

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Vinamilk's Executive Director of R&D also said that small and medium-sized enterprises that do not
have capital to invest in large transformation projects that require large resources can still participate
in green transformation in investment activities suitable for the specific production model and
enterprise scale. From another perspective, actions to protect the environment, such as reducing
plastic waste, saving water, electricity... are almost cost-free and can be done immediately and every
day.

After launching the new brand identity, Vinamilk will make a series of changes in digital
transformation, personnel recruitment, and management processes with the goal of reaching
consumers faster and more effectively.

In the second quarter, Vinamilk also announced highlight information in its sustainable
development strategy when it had the first dairy factory and dairy farm to achieve Carbon neutrality in
Vietnam, and announced a roadmap to achieve Net Zero by 2050. This is also a strategic spearhead
determined to be promoted by the company's leadership in the coming time and will create many
major transformations in production and business towards sustainability (nhandan, 2023).

Vinamilk has been a successful digital transformation enterprise starting from its own corporate
culture model. This business has adopted the Agile model (agile software development) along with
software development. This is aimed at getting products into customers' hands quickly.

2. Digital transformation affects Vinamilk's HRM.

Employee information management: Digital transformation helps Vinamilk manage employee

information more effectively. Companies can use human resources management software to store and
access employee-related information, including resumes, work history, and personal information.
Increases accuracy and speed in processing employee information and supporting human resource
management decisions.

Recruitment and selection: Digital transformation provides Vinamilk with online tools and platforms
to promote vacancies and attract talented candidates. Companies can use recruitment websites, social
networks and candidate management systems to enhance the recruitment and selection process.

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Helps increase the ability to find and attract employees with abilities and skills that match job
requirements.

Performance evaluation: Allows Vinamilk to apply online performance management tools and
software to evaluate and track employee performance. Companies can use online scorecards,
feedback applications, and performance appraisal tools to measure and provide feedback to
employees.

3. Talent acquisition.

Vd: Đào tạo thêm cho nvien vêề chuyển đôi sôố

Đêề xuấốt theo hoạt động hrm public

V. Conclusion.

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VI. References.

Vinamilk, 2021. Vinamilk.com.vn. Available at:

https://www.vinamilk.com.vn/baocaophattrienbenvung2021/values-en.html (Assecced: 10 October
2023).

Everest, 2022. Chiêốn lược kinh doanh của Vinamilk. Everest.org.vn. Available at:
https://everest.org.vn/chien-luoc-kinh-doanh-vinamilk/ (Assecced: 10 October 2023).

Misa amis, 2022. Mô hình 5 áp lực cạnh tranh c ủa Vinamilk (5 forces model c ủa Vinamilk).
Amis.misa.vn. Available at: https://amis.misa.vn/61778/mo-hinh-5-ap-luc-canh-tranh-cua-vinamilk/
(Assecced: 11 October 2023).

Hai, v. 2023. Phấn tích mô hình 5 áp l ực cạnh tranh c ủa Vinamilk chi tiêốt. Chuyengiamarketing.com.
Available at: https://chuyengiamarketing.com/mo-hinh-5-ap-luc-canh-tranh-cua-vinamilk/ (Assecced:
11 October 2023).

Vinamilk, 2022. Vinamilk chính thức khởi động chương trình “Quản Trị Viên Tập Sự 2020”.
Vinamilk.com.vn. Available at: https://www.vinamilk.com.vn/vi/tin-tuc-su-kien/2154/vinamilk-chinh-
thuc-khoi-dong-chuong-trinh-quan-tri-vien-tap-su-2020 (Accessed: 11 October 2023).

Vinamilk, 2021. Vinamilk – Top 3 nhà tuyển d ụng đ ược yêu thích nhấốt năm 2020, dấẫn đấều b ảng các
doanh nghiệp ngành tiêu dùng nhanh. Vinamilk.com.vn. Available at:
https://www.vinamilk.com.vn/vi/tin-tuc-su-kien/2272/vinamilk-top-3-nha-tuyen-dung-duoc-yeu-
thich-nhat-nam-2020-dan-dau-bang-cac-doanh-nghiep-nganh-tieu-dung-nhanh (Accessed: 11 October
2023).

Glints, 2023.Chính Sách Đãi Ngộ Nhấn Viên Của Vinamilk – Top Đấều Môi Tr ường Làm Vi ệc Tôốt Nhấốt
Việt Nam. Glints.com. Available at: https://glints.com/vn/blog/chinh-sach-dai-ngo-nhan-vien-cua-
vinamilk/#chinh_sach_luong_thuong (Accessed: 11 October 2023).

Vietstock, 2023. Vinamilk trình kêố hoạch doanh thu 63,380 tỷ đôềng trong năm 2023. Vietstock.vn.
Available at: https://vietstock.vn/2023/04/vinamilk-trinh-ke-hoach-doanh-thu-63380-ty-dong-trong-
nam-2023-737-1055669.htm (Accessed: 11 October 2023).

Hai, V. 2023. Kêố hoạch truyêền thông của Vinamilk nấng tấềm thương hi ệu Vi ệt.
Chuyengiamarketing.com. Available at: https://chuyengiamarketing.com/ke-hoach-truyen-thong-cua-
vinamilk/ (Accessed: 11 October 2023).

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Baochinhphu, 2023. Năm 2023: Vinamilk đặt kêố hoạc doanh thu k ỷ l ục. Baochinhphu.vn. Available at:
https://baochinhphu.vn/nam-2023-vinamilk-dat-ke-hoach-doanh-thu-ky-luc-
10223042523054747.htm# (Accessed: 13 October 2023).

Nhandan, 2023. Ra măốt nhận diện thương hiệu mới, Vinamilk báo cáo doanh thu và l ợi nhu ận quý
II/2023 tăng trưởng. Nhandan.vn. Available at: https://nhandan.vn/ra-mat-nhan-dien-thuong-hieu-
moi-vinamilk-bao-cao-doanh-thu-va-loi-nhuan-quy-ii2023-tang-truong-post764878.html (Accessed: 13
October 2023).

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