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TH True Milk Company

<b>Presented by</b>

Nguyễn Thị Thùy Trang Đỗ Thị HảoVũ Mai PhươngTống Khánh LyTrần Thị Yến NhiNgô Yến Dương

<b>Instructor: Trần Quang Thắng</b>

Fall, November 2023

ACKNOWLEDGEMENT

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Entering university is a thrilling moment in one's life, filled withyouthful ambitions and aspirations, but it's also a moment of greatresponsibility. It's not just your future that you carry on your shoulders,but the pride and hopes of your entire family. At this juncture, it'scrucial to make the most of your time in university, acquire newknowledge and skills, and prepare yourself for the journey ahead. Our experience studying at FPT University has been invaluable. It hastaught us many useful lessons and provided us with enrichingexperiences. We extend our heartfelt gratitude to FPT University, ourclassmates in MGT103, and our mentor teachers, without whom thisjourney would have been incomplete.

To our dear classmates in MGT103, we want to express our sincereappreciation for your unwavering support and friendship. Your kindnessand generosity have made all the difference, and we are grateful tohave shared this journey with you. Adapting to the intensity ofacademic and extracurricular activities at the university can bedaunting, but with the enthusiastic help from the school and thecounselor, we've found our place and become more confident andintegrated.

We owe a debt of gratitude to our mentor teachers, Teacher TrầnQuang Thắng for her inspiring guidance and invaluable advice incompleting this project. Her encouragement has instilled in us a senseof confidence and self-discovery, enabling us to identify our strengthsand weaknesses and how to develop them. Thank you, Trần Thắng.Thanks for being wonderful mentors and for your tremendouscontributions to our education.

In conclusion, we are proud of our growth and development at FPTUniversity. We will carry the lessons and experiences we've gained withus for life, as we step out into the world with a piece of full luggage ofknowledge and skills.

ABSTRACT

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TH True Milk is a popular dairy brand in Vietnam. It is known for itshigh-quality milk and dairy products. It also is a pioneer brand in theclean fresh milk industry in Vietnam and is the first unit allowed tolabel clean fresh milk on its packaging.

TABLE OF CONTENTS

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03● Company background and history….………..

….04● Statement of mission, vision, and core values…...

…05III. ANALYSIS OF KEY FACTORS IN THE COMPANY’S MANAGEMENT………..

● Influence the company’s HRM………..

3.Leading and controlling……….

….13● The company’s leadership………...14

● Control the quality of services/products.……….15

E. CONCLUSION………..

F. REFERENCES……….

………...18

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EXECUTIVE SUMMARY

<b> Company Background</b>

TH True Milk is owned by TH Group, a Vietnamese conglomerate thatoperates in various sectors, including agriculture, real estate, and retail. Thecompany was founded in 2009 by Thai Huong, and it has rapidly grown tobecome one of the leading dairy companies in Vietnam.

<b>Product Range</b>

True Milk offers a wide range of dairy products, including fresh milk,yogurt, cheese, butter, condensed milk, and ice cream. They emphasizeusing modern technology and sustainable farming practices to ensure thequality and safety of their products.

<b> Quality Standards</b>

True Milk owns large-scale dairy farms where they raise their owncows and control the entire production process. Their dairy farms areequipped with advanced facilities and follow international standards foranimal welfare and hygiene. The cows are fed a nutritious diet and receiveproper veterinary care to maintain their health. TH true Milk places a strongemphasis on quality control. They use advanced milk processingtechnologies to ensure that their products retain maximum nutrition andtaste. The company has obtained several certifications such as ISO 22000,BRC (British Retail Consortium), and HACCP (Hazard Analysis and CriticalControl Points) to guarantee food safety and quality.

<b>Sustainability Initiatives</b>

TH Group is committed to sustainable practices and environmentalconservation. They have implemented various initiatives to reduce theircarbon footprint and promote eco-friendly operations. For example, theyutilize biogas systems to convert cow dung into renewable energy, reducinggreenhouse gas emissions.

<b> Market Presence</b>

True Milk has a significant presence in the Vietnamese market andhas also expanded its operations internationally. They export their productsto countries such as China, Thailand, South Korea, and the Middle East.

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INTRODUCTION

TH True Milk is a prominent dairy company based in Vietnam. It was foundedby Thai Huong, a successful entrepreneur, in 2009. The company has quicklygrown to become one of the largest dairy producers in Vietnam, offering awide range of high-quality milk and dairy products.

TH True Milk's mission is to provide consumers with nutritious and safe dairyproducts while contributing to the development of the local dairy industryand improving the quality of life for farmers and communities.

TH True Milk aims to be the leading provider of premium dairy products inVietnam and expand its presence globally. The company envisions a futurewhere people can enjoy healthy and sustainable dairy products that areproduced with utmost care and integrity.

<b>Core Values</b>

TH True Milk is committed to maintaining the highest standards ofquality throughout its production processes. They strive to deliver productsthat meet or exceed customers' expectations. About Integrity, The companyoperates with transparency and honesty, ensuring that all their interactionswith stakeholders are conducted ethically and responsibly. nTH True Milkrecognizes the importance of sustainable practices in agriculture and isdedicated to promoting environmental sustainability in its operations. Theyfocus on reducing carbon footprint, conserving natural resources, andsupporting responsible farming practices. TH True Milk encouragesinnovation and continuous improvement in order to stay ahead in the ever-evolving dairy industry. They invest in research and development to offernew and innovative dairy products that cater to changing consumerpreferences.

ANALYSIS OF KEY FACTORS IN THE COMPANY’S MANAGEMENT

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1. Planning

<b>The company’s general environment</b>

<b> The political environment in Vietnam is gradually stabilizing, with a legal</b>

system that is becoming more complete. This creates stability andconvenience for the production and business activities of businesses. Thegovernment also has many meaningful policies such as encouraginginvestment in dairy farming through preferential loans, insurance for farmersin dairy-producing areas, or using industrial profits to compensate foragriculture, in order to encourage farmers to actively raise dairy cows.Vietnam has signed many free trade agreements (FTAs), creating conditionsfor Vietnamese dairy companies to export to foreign markets.

<b> </b>

Becoming a member of global trade organizations provides Vietnamesebusinesses with numerous opportunities for collaboration with large partners,including the dairy industry. The average GDP growth rate per capita inVietnam from 2002 to 2020 increased by 3.6 times, specifically reaching3700 USD. However, during the COVID-19 pandemic crisis, the GDP in 2021dropped to 2.58%. Nevertheless, the Vietnamese economy is graduallyimproving and showing signs of recovery. In the first 9 months of 2023, theaverage monthly income of laborers was 7.0 million VND, an increase of6.8%. This has led to higher purchasing power in the market with variousneeds and desires.

<b> The weight and height of Vietnamese individuals are</b>

significantly lower compared to people worldwide. This trend of wanting tocatch up with global standards has led to an increased demand for milkconsumption. Daily exposure to various sources of information through massmedia such as TV, the internet, newspapers, etc., regarding health issues,will make consumers recognize the importance of health care and physicalenhancement. This heightened awareness will lead to an increased demandto satisfy these needs, resulting in more convenient advertising anddistribution activities to reach consumers.

In the future, milk production technology will continue to beupdated. The farm is invested in both human resources and technology. Eachcow is equipped with a chip to monitor health and development, along withIsraeli breeding technology and other advanced technologies from aroundthe world to ensure the best living conditions.

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General environmental factors directly and indirectly impact theoperations of TH True Milk and play a crucial role in the company'sdevelopment. Indirectly, these factors can influence milk consumptiontrends, subsequently affecting TH True Milk's activities. To achievesustainable growth, TH True Milk needs to consistently monitor and analyzeenvironmental factors. This will enable them to formulate appropriatestrategies to respond to both opportunities and challenges.

Companies have to compete with each other based on quality,product variety, brand strength, and then price competitiveness. In terms ofproduct quality, currently, Vinamilk and Dutch Lady are highly regardedbrands in the market. However, TH True Milk is also a significant andformidable competitor in the fresh milk product category, sourced from dairyherds raised in Nghe An, without the use of imported powdered milk.

<b> Vinamilk is the largest dairy producer in Vietnam, with a market</b>

share of approximately 35%. Vinamilk boasts a large scale, strong financialcapability, and an extensive distribution network. Vinamilk possesses thefollowing strengths: Large scale, robust financial capability, widespreaddistribution network, reputable brand, and a diverse product range.

<b> Dutch Lady is a Dutch dairy company, holding a market share of</b>

about 20%. Dutch Lady brings with it experience and advanced milkproduction technology. Dutch Lady has the following strengths: Experienceand advanced milk production technology, high-quality products, and arigorous quality management system.

<b> Based on their economic strength, experience, production scale,</b>

and current distribution channels, TH True Milk could potentially enter thebeverage market in the future. Potential competitors for TH True Milk in thebeverage industry include current companies such as Tan Hiep Phat, Suntory,Pepsico, and Coca-Cola.

The main suppliers of TH True Milk include Fresh Milk Ingredients,Auxiliary Ingredients, Production Materials. TH True Milk operates large-scaledairy farms in Nghe An and Thanh Hoa, providing a clean and organic sourceof fresh milk for production. Additionally, the company collaborates withother domestic dairy farms to ensure a stable supply of raw materials. THTrue Milk partners with both domestic and international suppliers to importauxiliary ingredients such as milk powder, sugar, flavorings, and more. THTrue Milk collaborates with both domestic and international suppliers toimport production materials like machinery, equipment, and packaging.

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Customers are individuals or organizations that the companyneeds to serve and are a crucial factor in determining the success or failureof the company. Therefore, TH True Milk needs to constantly innovate intechnology and employ scientific methods to produce increasinglycompetitively priced products, meeting the growing demands of customers.As human life continues to develop, people desire high-quality products,especially everyday consumer goods like milk. Additionally, each customergroup may have different preferences in consuming various products. TH True Milk's strategic partners include Cooperation with MasanGroup, Cooperation with Vingroup. TH True Milk and Masan Group havecooperated to distribute milk through Masan's retail system, includingVinMart, VinMart+, VinEco,... TH True Milk and Vingroup have cooperated todevelop high-tech agriculture in Nghe An, including farming, animalhusbandry and food processing.

<b> Several environmental factors directly influence the</b>

operations of TH True Milk. Firstly, competition plays a critical role.Competitors in the market can impact TH True Milk's market share, revenue,and profitability. The level of competition in the dairy industry can shapepricing strategies, product differentiation, and marketing efforts. Secondly,customer-related factors are significant. Consumer demands, preferences,and consumption behaviors directly affect TH True Milk's product offerings,service delivery, and pricing strategies. Understanding and adapting toevolving customer trends are crucial for sustaining a competitive edge.Furthermore, supplier-related aspects hold substantial importance. Thereliability and accessibility of raw materials, as well as services provided bysuppliers, can significantly influence TH True Milk's production costs, productpricing, and overall profitability. Building strong relationships with reliablesuppliers is imperative for ensuring a smooth supply chain.

TH True Milk's BCG matrix

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Pasteurized milk leads the market share of the industry with a highgrowth rate and often faces fierce competition with the Vinamilk brand and anumber of other brands. Therefore, the TH True Milk brand has beeninvesting very high capital in product research and production technology. THTrue Milk has been implementing a "green strategy", developing cleanproducts that are safe and reliable for customers. Besides, carry outactivities that benefit the community to thereby bring your brand image toconsumers. TH True Milk always creates trust for customers with its greenproduct lines, ensuring quality safety and environmental friendliness.Overtime, pasteurized milk products can maintain a relatively high market sharewhile the industry growth rate declines, and SBUs will be moved to the dairycell.

<b> Yogurt has a low market share and small sales, but at the same time it</b>

is a segment with a high growth rate and quite high profit potential.Therefore, TH True Milk is continuing to invest in developing and promotingthe diversification of yogurt product flavors. From yogurt with its own flavoror a combination of fruits to seed yogurt lines that are rich in nutrients andgood for the health of consumers, especially children. Along with that, we are

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