ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 3: Human Resource Management

Submission date 22/02/2024 Date Received 1st submission 22/02/2004

Re-submission Date Date Received 2nd submission

Student Name Hoang Thi Minh Phuong Student ID BH00706

Class BA06301 Assessor name Ngo Thuy Quynh

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Contents
I. INTRODUCTION......................................................................................................................................... 3
II. OVERVIEW OF VINAMILK...................................................................................................................... 3
2.1. Vision............................................................................................................................................. 4
2.2. Mission.............................................................................................................................................. 4
2.3. Business goals.................................................................................................................................... 4
2.4. Strategic objectives............................................................................................................................4
2.5. Brand core values.......................................................................................................................... 5
III. THE ANALYSIS OF INDUSTRIAL CHARACTERISTICS OF VINAMILK AND PUBLIC HRM STRATEGY..............5
3.1. The analysis of industrial characteristics of vinamilk.........................................................................5
3.1.1. Competitors................................................................................................................................ 5
3.1.2. Potential opponents................................................................................................................... 6
3.1.3. Customer.................................................................................................................................... 6
3.1.4. Suppliers..................................................................................................................................... 7
3.1.5. Alternative products................................................................................................................... 7
3.2. Human resources strategy of Vinamilk..............................................................................................7
3.2.1. Planning...................................................................................................................................... 7
3.2.2. Training and development..........................................................................................................8
3.2.3. Performance management.........................................................................................................9
3.2.4. Work environment....................................................................................................................10
3.2.6. Salary and benefits................................................................................................................... 12
IV. COMPANY'S DIGITAL BUSINESS TRANSFORMATION.............................................................................13
4.1. Vinamilk's digital transformation.....................................................................................................13
4.2. Digital transformation affects Vinamilk's HRM................................................................................14
V. RECOMMEND STRATEGIES TO ATTRACT TABLENT.................................................................................15
I. INTRODUCTION
In this report, as a human resources consultant of Vinamilk Dairy Company, I will help the company
attract talent and make the best choices. As well as implementing digital business transformation.
Through specific activities on employer branding, recruitment, and selection as well as introduction.

II. OVERVIEW OF VINAMILK.

VNMILK is the largest dairy company in Vietnam. Based on the UNDP 2007 report of the Top 200 largest
companies in Vietnam, this is also the 15th largest company in Vietnam. VNM's main activities are to
produce and distribute condensed milk, powdered milk, fresh milk, soy milk, yogurt, ice cream, cheese,
fruit juice, coffee, and other dairy products. Vinamilk has a leading distribution network in Vietnam, to
help widely reach consumers. They also generate most of their revenue from selling products in
Vietnam, including dairy and non-dairy products, and exporting to countries such as Australia, Cambodia,
Iraq, the Philippines, and the United States. . Vinamilk is the leading manufacturer of dairy products in
Vietnam based on sales volume and revenue. Products range from core dairy products such as liquid milk
and powdered milk to value-added dairy products such as condensed milk, drinking yogurt and spoons,
ice cream, and cheese. Vinamilk offers one of the largest dairy product portfolios in Vietnam with a wide
selection of products, flavors, and packaging sizes. In addition, they market the majority of their products
under the “Vinamilk” brand, which has been designated a Famous Brand and one of the 100 Strongest
Brands in 2006. Leading the way in Vietnam, Vinamilk is proud to be a National Brand, in the "Top 10
most valuable dairy brands globally" and "Top 36 largest dairy companies in the world in terms of
revenue".
2.1. Vision
VNM's vision is to become a symbol of Vietnam's leading belief in nutritional and health products serving
human life and to become one of the leading companies in the field of milk production and trading and
other products. dairy products in Vietnam as well as in the international market. VNM wishes to bring
customers high-quality, safe, nutritious products while contributing to the development of Vietnam's
dairy industry.

2.2. Mission.
Vinamilk is committed to providing the community with top-quality nutrition and quality through its
respect, love, and high responsibility to human life and society.

2.3. Business goals.

The goal of a differentiation strategy is to gain a competitive advantage by 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 segmentdetermined through geographical
factors, customer objects, or product characteristics...The company pays great attention to designing
new, appropriate packaging designs and continues touse 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).

2.4. 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 have been raised to a new level, paving the way for a foreign-invested enterprise to
move forward. 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).

2.5. 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's communication with a constructive spirit is the basis for helping staff become more

engaged and stronger (Vinamik, 2021).

III. THE ANALYSIS OF INDUSTRIAL CHARACTERISTICS OF VINAMILK AND PUBLIC HRM STRATEGY.

3.1. The analysis of industrial characteristics of vinamilk.

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

3.1.2. 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 that 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 qualities (Hai, V.2023).

3.1.3. Customer.
Customers can put pressure on Vinamilk regarding the quality of dairy products. Competition in the dairy
industry is huge, 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 significantly impacts
Vinamilk's total revenue because of customer considerations (Hai, V. 2023).

3.1.4. 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).

3.1.5. Alternative products.

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, and 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)

3.2. Human resources strategy of Vinamilk.

3.2.1. Planning.
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

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)

Kế hoạch truyền thông của Vinamilk vươn tầm Quốc tế 2023 (chuyengiamarketing.com)

3.2.2. Training and development.

The company has been preparing high-quality human resources for 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. 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 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 a Management Trainee lasts 18 months, in which Vinamilk will
outline a clear rotation path for you with many challenges. To become a management level of the
Company, you will not only experience real work but also be allowed 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 the ambition and determination to develop themselves (Vinamilk, 2020).

Vinamilk chính thức khởi động chương trình “Quản Trị Viên Tập Sự 2020”

3.2.3. Performance management.

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 maintaining 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 will reach 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
the pre-tax profit plan is 10,496 billion VND, equal to 2022 (baochinhphu, 2023).
Vinamilk đặt kế hoạch doanh thu 2023 kỷ lục hơn 63.000 tỷ đồng (baochinhphu.vn)

3.2.4. 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", but 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 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 and 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).
The factor "Health and spirit" for employees is always maintained and improved over the years.
Outstanding benefits brought by the company to employees such as health insurance employee and
family management program, construction of support facilities, training support, and employee work
Build facilities such as a gym, yoga, swimming pool, and creative space to care for health and create
event conditions for employees to work more effectively...
3.2.6. Salary and benefits.
Salary: 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
perfectingthe 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
thatposition. Workers working for Vinamilk company with positions working on automatic lines,
packaging, and 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, 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, and the company's sales staff... Will receive the minimum salary suitable for each position,
and 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 (Glints, 2023).

Benefits: One of the most important contents of Vinamilk's welfare policy is health insurance. All
employees are provided with comprehensive medical insurance covering both outpatient and inpatient
treatment. Additionally, the company offers life insurance and accident insurance, ensuring that
employees and their families are financially protected in case of misfortune.

In addition, Vinamilk also supports many other welfare benefits for employees such as travel allowance,
overtime allowance, and uniform allowance. These benefits ensure that employees have the resources
they need to come to work comfortably and maintain a healthy lifestyle.

Furthermore, Vinamilk has a strong commitment to work-life balance and flexible work arrangements for
employees. The company allows employees to work from home and offers flexible work schedules to
meet personal commitments. This flexibility allows employees to balance their personal and professional
lives while reducing stress, leading to greater job satisfaction and productivity (Glints, 2023).

Chính Sách Đãi Ngộ Nhân Viên Của Vinamilk (glints.com)

IV. COMPANY'S DIGITAL BUSINESS TRANSFORMATION.

4.1. 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 heat
recovery systems help 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.

Vina Milk's Executive Director of R&D also said that small and medium-sized enterprises that do not
have the 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 the digital
transformation, personnel recruitment, and management processes to reach consumers faster and more
effectively.

In the second quarter, Vinamilk also announced highlighted 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 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.

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

Performance evaluation: This 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.
V. RECOMMEND STRATEGIES TO ATTRACT TABLENT.
5.

VI. CONCLUSION

VII. REFERENCE.

Vinamilk, 2021 (no date) Chiến Lược Kinh Doanh Của Vinamilk, Công ty luật TNHH Everest - Công ty
Luật uy tín tại Việt Nam. Available at: https://everest.org.vn/chien-luoc-kinh-doanh-vinamilk/
(Accessed: 24 February 2024).

Hải 2023, V.T. (2023) Phân tích MÔ hình 5 áp Lực Cạnh Tranh Của Vinamilk 2023,
https://chuyengiamarketing.com/mo-hinh-5-ap-luc-canh-tranh-cua-vinamilk/. Available at:
https://chuyengiamarketing.com/mo-hinh-5-ap-luc-canh-tranh-cua-vinamilk/ (Accessed: 24
February 2024).

Vietstock (2023) Vinamilk Trình KẾ Hoạch Doanh thu 63,380 tỷ đồng Trong Năm 2023, Vietstock.
Available at: https://vietstock.vn/2023/04/vinamilk-trinh-ke-hoach-doanh-thu-63380-ty-dong-trong-
nam-2023-737-1055669.htm (Accessed: 24 February 2024).