Introduction
Rationale
Vietnam's dairy industry presents significant growth potential, with the liquid milk market valued at over 34 trillion VND and the powdered milk market exceeding 48 trillion VND This creates a lucrative opportunity for Vinamilk to enhance its market share However, the competitive landscape in Vietnam necessitates continuous growth; stagnation could result in losing ground to emerging competitors.
Vinamilk, officially known as Viet Nam Dairy Products Joint Stock Company, is a leading player in Vietnam's food manufacturing sector, particularly in the dairy industry Competing with notable brands such as TH True Milk, Tan Hiep Phat, and Nutifood, Vinamilk has established a significant market presence, achieving market shares of 54.5%, 58%, and 55% in 2016, 2017, and 2018, respectively.
Human Resources plays a crucial role in every organization, and by analyzing Western theories X, Y, and Z, we can gain insights into effective human resource management Since management is an art rather than a strict science, it is essential for administrators to blend these theories to enhance their leadership strategies and drive company success Despite being recognized for its excellent working environment, Vinamilk faces challenges, such as the difficulty in finding qualified talent to replace departing employees Previous research on Vinamilk includes a study evaluating brand openness among Vietnamese consumers and an analysis of the company's corporate social responsibility performance, highlighting Vinamilk's significant social contributions following its successes.
Aims
This study aims to explore the art of leadership and the unique people management strategies employed by VNM, which have consistently earned the company a top ranking as one of the best workplaces in Vietnam from 2016 to 2018 By analyzing secondary data from various studies and applying statistical methods, the research seeks to identify the factors contributing to VNM's success Additionally, the study aims to highlight the gaps in current practices and share VNM's successful strategies with young professionals and other leaders, ultimately contributing to the advancement of the Vietnamese economy.
Scope
The article focuses on the research and information selection of articles from 2016 to
In 2018, the Vietnam market experienced significant developments, particularly in human resources (HR) strategies that contributed to overall company growth This analysis highlights the successes of these HR strategies, although it is important to note that the findings are based on secondary data sources Due to time constraints and the lack of direct engagement with VNM staff for statistical inquiries, a deeper exploration of internal challenges was not possible.
This study highlights the critical role of HR strategy in determining a company's success while also addressing its limitations By providing insights into effective HR practices, it enhances understanding for stakeholders and emphasizes the significance of strategic human resource management For VNM, this analysis serves as a valuable tool for identifying areas of strength and weakness, paving the way for further improvement.
An analysis of VNM's HR strategy from 2016 to 2018 reveals several proposed measures aimed at alleviating employee work pressure These strategies are designed to foster a competitive yet healthy work environment, enhancing overall employee well-being and productivity.
Structure
This research paper is organized into five chapters, beginning with Chapter 1, which serves as an introduction to the company, highlighting its achievements and outlining key issues related to the research, including its purpose, scope, and significance Chapter 2 follows with a literature review that provides a comprehensive overview of the company's development history, market share, and competitive landscape, while also analyzing relevant personnel theories.
Chapter 3 outlines the methodology employed in this research, detailing the data collection process and the value of secondary data in scientific inquiry Chapter 4 presents the findings and discussion, analyzing the company's performance from 2016 to 2018 to evaluate and compare it with established theories Finally, Chapter 5 concludes with recommendations that emphasize the critical role of HR strategy in driving the company's overall success and offers proposed solutions for improvement.
Literature Review
Overview of the company
Vinamilk (VNM) stands as a leading dairy company in Vietnam, widely recognized across all age groups In 2007, it earned a spot among the top 15 most valuable companies in the country, showcasing its significant market presence with over 70% share in the dairy sector VNM boasts an extensive distribution network, with more than 94,000 points of sale across 64 cities and provinces Additionally, the company aims to expand its reach by exporting products to various countries, including France, the USA, Canada, Poland, Germany, and several nations in the Middle East and Southeast Asia.
Figure 2.1: Historical development of Vinamilk
[ CITATION His18 \l 1066 ] Vinamilk (VNM) is a large dairy company in Vietnam established on August 20,
Vinamilk (VNM) has undergone significant growth since its establishment in 1976, culminating in the inauguration of its Hanoi factory in 1995 The company expanded its operations by opening additional factories in Can Tho (2001), Binh Dinh, Saigon (2003), and Nghe An (2004), followed by a cow farm in Tuyen Quang in 2006 Throughout its journey, Vinamilk received numerous labor medals from the government in recognition of its business achievements In 2014, VNM made a bold move into foreign investment by increasing its shares in Miraka, New Zealand, aiming to enter international markets The brand further expanded into Thailand and Myanmar in 2016, and by 2017, Vinamilk was ranked among the 2,000 largest listed companies globally The company's success continued in 2018, securing a spot among the Top 200 companies in the Asia Pacific with revenue exceeding 1 billion USD.
Vinamilk (VNM) aims to maintain its leadership position in the Vietnamese market while striving to rank among the top 30 dairy companies globally by sales The company is open to mergers and acquisitions, which enhances its competitive edge and reduces competition Additionally, VNM is focused on expanding into the export market with the goal of becoming the most valuable dairy company in Southeast Asia Their mission is to serve as a leading symbol of trust in health and nutrition products in Vietnam, committed to delivering top-quality nutrition with respect, love, and a strong sense of responsibility towards human and social well-being.
2.1.4 Scope of operation, product concepts and Competitive advantages:
Vinamilk operates through seven subsidiaries and three associates, including international entities like Driftwood Dairy Holding Corporation and Angkor Dairy Products Co., Ltd The company utilizes two primary distribution channels: the traditional channel, which consists of nearly 220 independent distributors and over 140,000 retail outlets, accounting for approximately 80% of its output, and the modern channel, encompassing a network of supermarkets To enhance sales, Vinamilk has established 14 product showrooms in major cities such as Hanoi, Da Nang, Ho Chi Minh City, and Can Tho With a robust distribution network that includes more than 1,400 first-level agents and 5,000 agents nationwide, Vinamilk also reaches customers through direct channels like hospitals and schools Additionally, Vinamilk has expanded its market presence beyond Vietnam to countries such as Cambodia, the United States, Poland, and New Zealand.
With strong potential and a sensible strategy VNM always diversifies its products in different small markets such as Vinamilk Liquid Milk market share with products such as
Vinamilk offers a diverse range of products, including 100% fresh milk, Super SuSu cocoa barley drink, and various powdered milk options like Dielac Optimum Mama and Dielac Alpha Gold Their yogurt market is represented by Vinamilk Probi Yogurt and Vinamilk Pasteurized Drinking Yogurt, catering to different consumer needs Additionally, Vinamilk provides nutritional products for children aged 6-24 months and adult nutrition solutions like Vinamilk Sure Prevent and Vinamilk CanxiPro This extensive product variety and significant market presence have established Vinamilk as a strong brand in both domestic and regional markets, making it a formidable competitor against other brands such as TH True Milk, Tan Hiep Phat, and Nutifood.
Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)
As competition intensifies with the rise of new rivals, VNM successfully maintains a market share of approximately 50 percent, solidifying its leading position in Vietnam The company shows no signs of slowing down as it continues to dominate the local market while expanding its presence internationally.
Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ]
Statistics show that annual sales have grown as impressively as market share. Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up 8 percent ) and VND 52,629 billion for 2018 (increase 10 percent )
Vinamilk, recognized for its exceptional working environment, faces challenges such as difficulty in finding qualified talent to replace departing employees This issue highlights the company's struggle to maintain its workforce stability despite its positive reputation.
Concepts and definitions
Human resources play a crucial role in determining the success and growth of organizations Effective human resource management is a fundamental aspect of the management process, addressing various employee-related challenges within the workplace This discipline combines scientific principles with creative approaches, as it is deeply intertwined with organizational culture and emphasizes human values more than any other management area.
Human resource management encompasses various critical activities, including talent acquisition, employer branding, training and development, and compensation and benefits These elements are interconnected and play a vital role in the effectiveness of the HR department, ultimately contributing to the overall success of the organization.
Theories
Human resources play a crucial role in determining the success and growth of organizations, making the management of human capital a top priority Effective human resource management addresses all work-related human issues and is a fundamental aspect of the overall management process This field combines scientific principles with creative approaches, as it is closely linked to corporate culture and emphasizes human values more than any other management area.
In human resource management, various domains exist, including talent acquisition, employer branding, training and development, compensation and benefits, and the role of human resources business partners This study will concentrate on three key factors: the behavioral culture of administrators towards their subordinate employees, the importance of raising awareness among employees, and the critical role of middle management in bridging the gap between senior management and staff.
2.3.2 The importance of Human Resource Management.
The study of Western theories X, Y, and Z enhances our understanding of human capital management, emphasizing the need for effective human resource management to align with an organization's strategic objectives Properly managing human resources not only creates a structured framework but also fosters a positive working environment, motivating employees and boosting overall labor efficiency within the enterprise.
It is these factors that will affect the company's growth [ CITATION AFC18 \l 1066 ]
Previous studies
Numerous studies have focused on Vinamilk, including an evaluation of brand openness among Vietnamese consumers, which analyzed industry potential search data to assess the pricing and development of Vinamilk This research is instrumental in facilitating the company's scale expansion and growth in the near future Another significant study examined Vinamilk's corporate social responsibility activities, highlighting the company's commitment to social and environmental initiatives.
In 1066, the focus was on showcasing Vinamilk's contributions to society following the company's achievements Additionally, a study titled "Analyzing Factors Affecting Customers' Loyalty to Vinamilk's Fresh Milk in Gia Lam, Ha Noi" aimed to identify the key determinants of customer loyalty towards Vinamilk This research is crucial for Vinamilk's sales department to develop effective strategies that enhance revenue growth.
Methodology
Research design
The selection and collection of data are crucial in research, significantly impacting the study's findings and authenticity There are two main types of research data: primary and secondary Primary data is collected directly by the researcher to address a specific research problem, while secondary data is previously gathered information that researchers often prefer due to its accessibility and established credibility Secondary data is readily available through various sources such as websites and articles, making it a convenient choice for researchers seeking reliable information.
While secondary data can be useful, it has notable drawbacks, including the potential unreliability of information from certain websites Furthermore, this type of data often lacks continuous updates, which can make it less relevant to current research needs.
3.1.2 Reason for using secondary research method
The utilization of secondary data in this study offers significant advantages, primarily by leveraging insights from existing research and data from previous studies Firstly, secondary data can be conveniently accessed via the Internet or public libraries Secondly, cross-referencing multiple sources helps identify and eliminate false or inaccurate information Lastly, using secondary data effectively reduces both the cost and time associated with data collection, making the research process more efficient.
The significance of secondary data collection is crucial for obtaining precise figures and evaluations of Vinamilk (VNM) This data reveals annual fluctuations in sales and market share, which significantly impact the company's management structure and essential human resource management strategies for success.
Source of data
Secondary data is highly diverse and readily accessible from various sources, including articles, live websites, official company websites, libraries, books, and online reports.
3.2.1 Book and article: www.sciencedirect.com
3.2.2 Company’s website: https://www.vinamilk.com.vn/
3.2.3 The library, proquest: http://lib.huflit.edu.vn
3.2.4 Reports: http://CafeF.vn/doanh-nghiep.chn
The domestic websites have a high reputation and are widely used by other researchers.
Data collection
To optimize time and reduce costs, the author conducted research using various familiar channels and tools, including Google data systems, school internal library resources, and official platforms and websites.
Easily search and access articles, reports and books to explain definitions of research problems, solve sales figures, revenue
3.3.2 Internal library system in school
This is a valuable instrument for secondary data collection In order to help get the right details, the data in the library is highly theoretical and diverse.
3.3.3 Data systems on platforms and websites official
This data source allows to find basic facts, development history, and analysis with secondary data from market rivals without having to go to the company for research.
Check for relevant data from the company's annual sales and profit figures, as market share and market growth are more reliably evaluated.
Data analysis
This study employs a secondary research approach to gather data and insights Initially, the author searches online for company information, meticulously analyzing and filtering the data obtained Additionally, the author reviews annual financial statements to estimate and compare details across different years Finally, the research data is thoroughly analyzed to draw meaningful conclusions.
This article analyzes Vinamilk's human resource management techniques through secondary research methods, aiming to identify and quantify relevant data By assessing these techniques and associated challenges, the study highlights the significance of effective human resource management within the organization.
The research paper includes charts and statistics that illustrate historical developments and compare market share and growth within the industry Visual aids such as images simplify complex ideas and definitions, enhancing understanding.
Finding and discussion
The administrator's behavioral culture with subordinate employees
In an organization, administrators bear significant responsibility in creating a management structure aligned with the company's goals and financial strategies When mistakes happen, managers typically hold more accountability than employees, making it crucial for them to exercise sound judgment and maintain positive relationships with their teams This approach fosters a smooth operation and leads to favorable outcomes for the company.
Managers must adopt assertive strategies to effectively guide their employees towards the collective goals of the organization This involves mastering key behaviors such as persuasion, reprimanding, rewarding, and discipline when necessary By establishing a clear framework and direction, managers can foster a positive work environment, minimizing the risk of employee unrest that could jeopardize the organization's stability and success.
Vinamilk (VNM) leaders excel in fostering a collaborative work environment, uniting employees towards the company's shared objectives This effective leadership is a crucial element in driving VNM's smooth operations and achieving remarkable successes.
Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)
As competition intensifies with the emergence of new rivals, VNM maintains a strong market share of approximately 50 percent, solidifying its leading position in Vietnam The company shows no signs of slowing down and continues to expand its presence in the international market.
Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ]
Statistics show that annual sales have grown as impressively as market share Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up 8 percent ) and VND 52,629 billion for 2018 (increase 10 percent )
Vinamilk, recognized for its excellent working environment, faces challenges such as the difficulty in finding qualified talent to replace former employees This issue highlights the company's struggle to maintain a consistent workforce despite its positive reputation.
Human resources play a crucial role in determining the success and growth of organizations Effective human resource management is vital within the management process, as it addresses all issues related to personnel and their development.
Human resource management is a vital activity that blends scientific principles with creative approaches, deeply rooted in the organization's culture and emphasizing human values It plays a crucial role in enhancing workplace dynamics and fostering a positive organizational environment.
Human Resources encompasses various activities, including talent acquisition, employer branding, training and development, and compensation and benefits Each of these elements is interconnected and plays a vital role in the success of the HR department and the overall performance of the company.
Human resources play a crucial role in determining the success and growth of organizations, making the management of human capital a top priority Effective human resource management addresses various work-related issues and is a fundamental aspect of the overall management process This discipline combines scientific principles with creative approaches, as it is deeply intertwined with corporate culture and emphasizes human values more than other management fields.
Human resource management encompasses various aspects, including talent acquisition, employer branding, training and development, compensation and benefits, and the role of HR business partners This study will concentrate on three key elements: the behavioral culture of administrators towards their subordinate employees, the importance of raising awareness among staff, and the critical role of middle management in bridging the gap between senior management and employees.
2.3.2 The importance of Human Resource Management.
The study of Western theories X, Y, and Z enhances our understanding of human capital management, emphasizing the significance of effective human resource management in aligning with an organization's strategic goals Successful human resource management not only fosters a positive working environment but also motivates employees, ultimately boosting overall labor efficiency within the enterprise.
It is these factors that will affect the company's growth [ CITATION AFC18 \l 1066 ]
Numerous studies have been conducted on Vinamilk (VNM), including an analysis of brand openness among Vietnamese consumers, which utilized industry potential search data to assess Vinamilk's pricing and growth strategies This research is crucial for accelerating the company's expansion and development Another significant study focused on Vinamilk's corporate social responsibility initiatives, highlighting the brand's commitment to social and environmental issues.
The study on customer loyalty to Vinamilk's Fresh Milk in Gia Lam, Ha Noi, aims to identify the key factors influencing consumer loyalty This research will provide valuable insights for Vinamilk's sales department, enabling them to develop effective strategies to boost company revenue.
The selection and collection of data are crucial in research, as they significantly impact the findings and authenticity of a study There are two main types of research data: primary and secondary data Primary data is gathered directly by a researcher to address a specific research problem, while secondary data refers to information that has already been collected and published by others Although both data types have their advantages and disadvantages, researchers often prefer secondary data due to its accessibility and the credibility it may carry from previous scientific use Secondary data can be easily sourced from various platforms, including websites and articles, enhancing its appeal for researchers seeking reliable information.
Secondary data presents certain limitations, including the unreliability of information sourced from various websites, which can lead to misinformation Furthermore, this type of data often lacks continuous updates, making it less relevant to the current timeframe of research.
3.1.2 Reason for using secondary research method