INTERNSHIP REPORT Prepared for: UNITED BUSINESS INSTITUTES Prepared by: 11336 Date: 21STJune, 2016 Topic: Analyses on Nutifood’s Long Term Strategies “Solutions from nutrition experts” INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES TABLE OF CONTENTS INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES I Executive Summary After about months of internship at companies Nutifood, I made this article to your practice report The contents of the report including analysis practice the operations of the company Nutifood: the process of formation and development, organizational structure and operating results and business operations From the study of organizations operating model of the company, my research focuses on long-term development strategy of the company Since then, I suggest some personal opinions in the work of building long-term strategy there II Internship Search Through one of my best friend, I was acquainted with Ms Tran Thi Minh Deputy Chairman of the Board Then I had to email my CV to Ms Nguyet and practice approved at Nutifood In one week early to practice at the company, according to personal wishes, I was on work practices at the Admission Department n 2016, Nutifood will enroll new student for their football academy, which established in July 2015, named Nutifood Hoang Anh Gia Lai Arsenal JMG in HCMC and I worked for this sector This is an activity to with football brand Nutifood and within Nutifood marketing strategy Therefore, I have the opportunity to have direct access to one of the strategic long-term development strategy of the company III Knowledge and Skills Used In the course of practice in Nutifood and reporting practice, I have applied the knowledge from courses in fields such as corporate governance, business strategy and apply the practical suggestions in Nutifood At the same time, to complete this article, I used the skills analysis, comparison and descriptive statistics to assess and evaluate research issues INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES IV Introduction Nutifood was a phenomenon on the dairy market in 2000 Distribution System in 64 provinces to present an ambitious campaign "big fish swallow the little fish", against the multinational corporation holds most of the milk market Vietnam at this time Revenue over the period increased 250% per year, the highest market share of full cream milk powder However, in 2008, Nutifood lose money, disappearance of the charter capital (150 billion VND) Receiving the presidency from Mr Tran Le Nguyen in 2011, Mr Tran Thanh Hai crave find Nutifood spotlight more than 10 years ago According to Mr Hai, chairman of Board of JSC Food Nutrition during Nutifood sideline events, specifically, in 2014 Nutifood perform 5,563 billion VND total revenue, an increase of 102% compared to 2013 and reached 24% of the plan Profit after tax of nearly 386 billion VND, up 258% and 168% of target reached EPS quite impressed with 28.125 contracts With such potential, the long-term strategy for Nutifood to maximize its assets and business strategic management should be taken into consideration, rather than making short-term and month-based decisions solely My task is in Admission Department, in months from 01stFebruary to 01stApril 2016 and my supervisor is Ms Tran Thi Minh Nguyet – Deputy Chairman of the Board In 2016, Nutifood will enroll new student for their football academy, which established in July 2015, named Nutifood Hoang Anh Gia Lai Arsenal JMG in HCMC I worked for this sector I have better conditions for studying the long-term development strategy of Nutifood My report consists of three parts: Part 1: Overview about Nutifood Part 2: Long-term Nutifood's recent strategies INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Part 3: Recommendations INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Part 1: Overview about Nutifood History and development JSC Dong Tam Nutrition Food - Nutifood was established on 29thMarch 2000, with the line of business is the production and processing of food nutrients (especially for children, pregnant women and nursing mothers , the sick, the elderly) with an initial capital of billion VND In 2012, the company was renamed to JSC Nutifood nutritious foods and change the system brand identity, product packaging In 2013, Nutifood took the second factory in Pho Noi Industrial Zone - Hung Yen went into operation During the same period, the company signed a sponsorship contract with comprehensive nutrition Academy of Hoang Anh Gia Lai - Arsenal - JMG, nutrition sponsor for Vietnam U19 team competing internationally In 2014, Nutifood signed with Hoang Anh Gia Lai Corporation in project 120,000 breeding cows and started construction of the plant in Highland Nutifood Tra Da Industrial Zone - Pleiku City with a capacity of up to 500 million liters milk/year In 2015, Nutifood constructed factory in Kien Khe Industrial Complex, Ha Nam with a processing capacity of 200 million liters of milk and 31,000 tons of milk powder In this year, the company signed contracts Soccer Academy was established Nutifood Hoang Anh Gia Lai Arsenal - JMG, starting entrance from June 2015 To expand the scale of operations, Nutifood has been continuously increasing equity capital At 30 thJune 2015, the equity of the company reached 1,097 billion VND, total assets of 4346 billion VND Nutifood defines "Always focus on improving customer satisfaction with the products with consistent quality, safety and INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES best service with reasonable prices" competition policy is to put Nutifood become one of the leading food companies in Vietnam and in the region Structure of the operating company The structure of the operating company includes: Shareholders General Assembly: is the highest authority, is responsible through the reports of the board on the status of production and business activities, additional change of charter companies, through strategic development strategy, dismiss elected board members, supervisory board Board of Directors: is the organization's highest management of the company by the general meeting of shareholders elected Board of Directors to decide on all matters related to the purposes and interests of the company, making strategic development objectives for the entire company Supervisory Board: organization monitoring and checking the reasonableness and legality in the management of business operations, in bookkeeping and financial accounting of the company to ensure that the legitimate interests of the shareholders The provisions: - Sales Department: responsible for building, organizing and managing product distribution, merchandise, sales planning, implementing strategic objectives for product consumption for each stage of the company - Marketing Department: responsible for strategic planning for advertising and marketing, surveys, market analysis, market assessment, construction and development company brand INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES reputation and product brands, coordinate support Sales assistant for the room to achieve the strategic objectives for the whole company - Public Relations Department: creating understanding and support of our customers, society, government, agencies for the products, images and activities of the company - Department of Finance - Accounting is responsible for planning, analysis organizational and structure control of of financial the financial accounting, situation, books and accounting statements and accounting data of the Company, support all production and business activities of the company - Medical Relations Department: responsible for strategic planning, building, maintaining and developing relationships with agencies and establishments in the health sector or related to promote and support the business of company - Administrative Office of Human Resources: strategic planning of human resources development, construction-related policies in the field of human resources, labor, salary, reward, company-wide training, administrative work company - QA: has the task of planning control plan quality input raw materials, finished products and processed products are not appropriate, build and maintain the systems and policies for quality management ISO 9001: 2000, HACCP, GMP - Production Department: is responsible for development, implementation of production plans in order to fulfill the service of production and business goals across the company - Chamber of research and development (R & D): Coordinate with Marketing Department to develop strategies developed by INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Sam of the entire company, technology research for new production, production management testing manufacturing and process official production, technology, process technology - Supply planning department is responsible for organizing the supply of materials, equipment and coordination with related departments planning to import raw materials, supplies and goods, forecasting and resource price fluctuations providing material - Technical Department: responsible for repair and maintenance of all machinery and equipment at the plant, scheduling periodic maintenance to ensure the operation of the plant to the transparent Results of operations Unit: Billion VND, source: Nutifood Revenue Profit Through the years, revenue and profit growth of Nutifood have considerable incentive In 2008, Nutifood losing money, to the point almost lost its charter capital (148 billion VND) But then, the company has implemented restructuring activities, from HR to INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES sales and marketing The company focused on building mode consumer care, unit sales The company has gradually regained Nutifood aura, 2014, profit reached 143 billion VND Part 2: Long-term Nutifood's recent strategies In 2008, the activities of the losses to the extent Nutifood negative equity The reason for that comes from companies with investment activities in other industries such as real estate Therefore, after receiving the position of President of the Board of Directors, Mr Hai has restructured operations organizational structure, personnel apparatus, determine the long-term development strategy focusing on key areas of activity , traditions and strengths of the company is the dairy industry Therefore, the company has a series of specific strategies such as: • In 2014, the company has put into operation the factory manufacturing yoghurt, milk powder plants, mechanical systems expand the scale of investment increases the production capacity of liquid milk times now At the same time the company has also built a factory in Gia Lai and fresh milk to put into operation in October 9/2015 (Baodatviet.vn, 2014) • Nutifood also collaborated with development aimed at dairy herds with 100% fresh dairy products from local raw materials Hoang Anh Gia Lai (HAGL) Specifically, in June 2014, HAGL has completed the signing of investment cooperation with Nutrition Food Co and Vissan This is also the time for Vietnam first enterprise jointly invested in projects of large-scale agricultural investment value of over ten trillion (Baodatviet.vn, 2014) Accordingly, HAGL will conduct stages of production, and the two partners are committed Nutifood and Vissan will collect meat - milk and INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES supply in the market Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai, is expected to grow 236,000 cows (including milking and livestock breeding) and can be increased to 300,000 in favorable conditions Opportunity is Nutifood dairies chosen as proprietary projects as an investor group with a capital of 6,300 billion VND Estimate of the total herd is 236,000, including 120,000 cows and 116,000 beef cows • In 2015, started construction Nutifood Vietnam Factory in Kien Khe Industrial Zone, Ha Nam with a processing capacity of 200 million liters of milk and 31,000 tons of milk powder, is the largest-scale machine North Viet Nam • Also in 2015, has signed a contract Nutifood established Nutifood Football Academy - Hoang Anh Gia Lai - Arsenal JMG, starting from March key entrance 6/2015 in provinces throughout the country With the slogan "Solution nutrition experts", is considered to be the guideline for its action orientation, Nutifood invest heavily in research and development of specialized nutrition products With the cooperation of the nutrition experts at home and abroad, the company Nutifood domestic first-to-market of specific types of milk for feeding patients can through gastric tube at just over distribution products half for the compared treatment to of imported diabetes, products; for specialty children and adolescents, for obese people; the product line life cycle from infant, to the age required for brain development, growth in height, for pregnant women and nursing mothers, until the elderly need calcium supplements Recently, research Grow successfully saved PLUS + is the only product on the market for malnourished children stunted, consumers enthusiastically supported INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES In the programs broadcast on television recently, ad templates Nutifood create deep feelings mentioned by maternal tenderness in the story of nutrition physician founder of Nutifood Photos the blender to help save the lives of thousands of patients in the country difficult period, Nutifood persuaded consumers identify with a company "built with endless love for children" and have confidence in the team of nutrition experts of the company even if 100% is Vietnam, with a very humanistic message to consumers Vietnam: "Before an expert, we see life in the heart of a father, a mother " Currently the products of JSC Food Nutrition Nutri sold in over 64 provinces and cities nationwide Customers can buy these products at stores, supermarkets the closest To company more sustainable development, and staff officers determined Nutifood continuous improvement in all aspects, the company's leaders are committed to: • Use all resources necessary to implement, maintain and continually improve the effectiveness and efficiency of the quality management system in accordance with the requirements of ISO 9001: 2000, HACCP • Always listen to opinions and feedback of our customers to improve and diversify products • Employees at all levels are trained enough knowledge and skills required by the requirements of each job and aware of the importance of meeting the highest requirements of the customer is the key factor to bring success to the company • Try to ensure that this policy is understood, implemented and maintained at all levels in the company INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Part 3: Recommendations With the implementation of the long-term strategy, after 2008, Nutifood has gradually regained his position on Vietnam's dairy market Total revenue and net profit of the company continued to increase over the years Thus, we can see the development strategy being implemented in recent years is the correct and effective However, to continue to promote the effectiveness of long-term development strategy as well as to respond to changes in the business environment constantly changes, company leaders should note the following issues: • Promote export-oriented products: Before the cooperation with HAGL, domestic milk market share of Nutifood still quite modest According to a report published in 2013 on the domestic milk market, Vinamilk is the leading enterprises with 40-50% market share Next to the Dutch Lady, Moc Chau Milk, IDP and Hanoimilk, Nutifoodis just one company among the remaining milk producers with total market share of around 15% However, with the scale of the project with HAGL, Nutifood undoubtedly become a new force in the fresh milk market in Vietnam Moreover, Nutifood is also capable of affecting the whole milk powder market, because once milk will be processed into milk powder, according to milk production surplus Over, the HAGL dairy, reaching maximum levels originally planned 120,000 cows, would be equivalent to 70% of the total dairy herd Vietnam in 2013, 170,000 cows Meanwhile, combined with plant capacity of 500 million liters at the maximum, the company's market share in the domestic milk powder and the market will certainly major changes Like some bold investment decisions before, the latest product with the investment strategy of high-tech agriculture, INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES HAGL has introduced such as rubber, cost sugar cane with only half the domestic prices HAGL representatives confirmed that, in their agreement with Nutifood, if a resource to support the market value is not clear, then it will be the support price However, the biggest problem faced by Nutifood not the number above or production capacity, but the ability of the market to absorb and expand with similar speed Statistics of the Ministry of Industry and Trade show that liquid milk consumption per capita in Vietnam has increased rapidly through each stage, but still very low compared to the region and the world Specifically, consumption of milk per capita in our country has increased from 0.5 liters / year in 1990 to 15 liters in 2013 However, compared to the neighboring countries, it is still too modest For example, milk consumption per capita in China is 25 liters/year, Thailand 35 liters/year, Singapore 40 liters/year, and India 45 liters/year Therefore, along with the gradual dominate the domestic market, Nutifood should study foreign markets to export operations carried out in the near future • Policies to employees: In order to encourage workers and parts operations more efficient, improve labor productivity, monthly company rewards for taking active part in the business, results exceeded plan out, and rewards for outstanding individuals Companies can reward with bonuses in cash equivalent to 8% -20% month salary or a promotion for individuals Year-end bonuses based on the results of operations that year The company regularly conducts training activities, fostering and improving skills for workers Training costs average about 200-300 million/year Forms of employee training is now mostly held training classes at the center Coaching & Training of the Company INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES or / and invited lecturer in teaching or appointed officials and employees participated in the due course the training center held In addition to the above policies, and other policies are applied in accordance with the Labor Law as: - Was signed labor contracts - To be paid in accordance with the contents of labor contracts and the Law of Vietnam regulations - To create favorable conditions in the labor and learning - Being social insurance, health insurance during the work - To lodge complaints and disputes on labor contracts - To be the priority to buy shares when the company offered more shares (if any) - Besides, the company also rewarded, organizing trips for workers Members of the Company • Dividend policy: The company will pay dividends to shareholders when the business is profitable and fulfilling the obligations towards the State as prescribed by law - Shareholders will get a dividend corresponding to the shares and, depending on the characteristics of the business situation as decided by the AGM - Dividend rate will be the AGM decided on the basis of recommendations of the Board with the bases are the result of years of business operations and business plans for the coming years INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES - Dividend rate for the coming years is expected to maintain about 15% to 25%/year In the development strategy of social development of a country, raising the level of milk production and milk consumption is one measure to assess the level of development of that country Therefore the Vietnam government has outlined the goal of increasing milk consumption current average of 10 liters / person / year to 20 liters / person / year in 2020 Therefore, the Company in strategic Nutifood its development is not out of the overall development strategy of the dairy industry is ready to meet the growing needs of society INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Conclusion V In months internship at Nutifood, I've learned about the organizational structure and operational activities of the Company At the same time, I was the siblings in creating conditions for direct participation in the Admission department During this time, I also learned about the long-term development strategy of the company and in the content of this report, I suggested some ideas about that strategy Reference VI Nutifood.com.vn (2016), Lịch sử hình thành phát triển [online] Available at: http://www nutifood.com.vn/vi/lich-su-hinh-thanh-va-phattrien/ [Accessed 21th June 2016] Vnexpress.net (2016), Canh bạc làm thương hiệu bóng đá ông chủ nutifood [online] Available at: http:// kinhdoanh.vnexpress.net/tintuc/khoi-nghiep/canh-bac-lam-thuong-hieu-bang-bong-da-cua-ong-chunutifood 3286177 [Accessed 21th June 2016] Baodatviet.vn (2016) Mượnsức HAGL, Nutifoodthànhônglớn [online] Available at: http://www.baodatviet.vn/kinh-te/doanh-nghiep/muon- suc-hagl-nutifood-thanh-ong-lon-3042466/ [Accessed 21th June 2016] Anon, (2016) [online] at:http://www.avsc.com.vn/portal/news/detail.do?id=11087 21th June 2016] Available [[Accessed INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Dna.com.vn (2016) Sữađặccóbịkhaitử? [online] Available at: http://www.dna.com.vn/vi/tinh-huong-thuong-hieu/s/sua-dac-co-bikhai-tu/ [Accessed 21th June 2016] Vneconomy.vn (2011) Mộtsốnhãnsữa “đòi” tănggiáđến 10% [online] Available at: http://vneconomy.vn/20111208092435989P0C19/motso- nhan-sua-doi-tang-gia-den-10 [Accessed 21th June 2016].] Cafebiz.vn (2013) New giátrịnhậpkhẩusữacủaViệtNam Zealand chiếmgần 30% [online] Available at: http://cafebiz.vn/thi-truong/new zealand- chiem-gan-30-gia-tri-nhapkhau-sua-cua-viet-nam-2013080517232032319ca101.chn [Accessed 21th June 2016] Tinmoi.vn (2016) ThịtrườngsữaViệt Nam vànhữngthayđổitíchcực [online] Available at: http://www.tinmoi.vn/thi-truong-sua-viet-nam-vanhungthay-doi-tich-cuc-01643532.html [Accessed 21th June 2016] Cafebiz.vn (2013) Sữabột Việt Nam: Nhìnlênkệlàhiểu [online] Available at: http://cafebiz.vn/cau-chuyen-kinh-doanh/suabot-o-viet- nam-nhin-len-ke-la-hieu-20130304105356794ca47.chn [Accessed 21th June 2016] nhipcaudautu.vn (2016) Nutifoodđạt 5.563 tỷđồngdoanhthunăm 2014 [online] Available at: http://nhipcaudautu.vn/doanh-nghiep/tu- gioithieu/nutifood-dat-5563-ty-dong-doanh-thu-nam20143274905/#axzz46qDymXQP [Accessed 21th June 2016] Thoibaokinhdoanh.vn (2016) [online] Available http://thoibaokinhdoanh.vn/441/news-detail/701049/lang-kinh/thi- at: INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES truong-sua-nhintu-vu-sua-fonterra-nhiem-khuan-yeu-cau-minhbach- ve-nguon-goc-nguyenlieu.html [Accessed 21th June 2016] Dantri.com.vn (2016) VinamilkgiớithiệusảnphẩmsữatiêệttrùngkhôngLactozađầutiêntạiViệt Nam [online] Available at: http://dantri.com.vn/doanh- nghiep/vinamilk-gioi-thieu-san-pham-sua- tiet-trungkhong-lactoza- dau-tien-tai-viet-nam-807352.htm [Accessed 21th June 2016] [...]... consumers enthusiastically supported INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES In the programs broadcast on television recently, ad templates Nutifood create deep feelings mentioned by maternal tenderness in the story of nutrition physician founder of Nutifood Photos the blender to help save the lives of thousands of patients in the country difficult period, Nutifood persuaded consumers identify... person / year to 20 liters / person / year in 2020 Therefore, the Company in strategic Nutifood its development is not out of the overall development strategy of the dairy industry is ready to meet the growing needs of society INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Conclusion V In 2 months internship at Nutifood, I've learned about the organizational structure and operational activities... kinhdoanh.vnexpress.net/tintuc/khoi-nghiep/canh-bac-lam-thuong-hieu-bang-bong-da-cua-ong-chunutifood 3286177 [Accessed 21th June 2016] Baodatviet.vn (2016) Mượnsức HAGL, Nutifoodthànhônglớn [online] Available at: http://www.baodatviet.vn/kinh-te/doanh-nghiep/muon- suc-hagl -nutifood- thanh-ong-lon-3042466/ [Accessed 21th June 2016] Anon, (2016) [online] at:http://www.avsc.com.vn/portal/news/detail.do?id=11087 21th June 2016] Available [[Accessed INTERNSHIP REPORT – 11336 UNITED... milk market share of Nutifood still quite modest According to a report published in 2013 on the domestic milk market, Vinamilk is the leading enterprises with 40-50% market share Next to the Dutch Lady, Moc Chau Milk, IDP and Hanoimilk, Nutifoodis just one company among the remaining milk producers with total market share of around 15% However, with the scale of the project with HAGL, Nutifood undoubtedly... strategy of the company and in the content of this report, I suggested some ideas about that strategy Reference VI Nutifood. com.vn (2016), Lịch sử hình thành và phát triển [online] Available at: http://www nutifood. com.vn/vi/lich-su-hinh-thanh-va-phattrien/ [Accessed 21th June 2016] Vnexpress.net (2016), Canh bạc làm thương hiệu bằng bóng đá của ông chủ nutifood [online] Available at: http:// kinhdoanh.vnexpress.net/tintuc/khoi-nghiep/canh-bac-lam-thuong-hieu-bang-bong-da-cua-ong-chunutifood... strategy of high-tech agriculture, INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES HAGL has introduced such as rubber, cost sugar cane with only half the domestic prices HAGL representatives confirmed that, in their agreement with Nutifood, if a resource to support the market value is not clear, then it will be the support price However, the biggest problem faced by Nutifood not the number above or... June 2016] nhipcaudautu.vn (2016) Nutifood ạt 5.563 tỷđồngdoanhthunăm 2014 [online] Available at: http://nhipcaudautu.vn/doanh-nghiep/tu- gioithieu /nutifood- dat-5563-ty-dong-doanh-thu-nam20143274905/#axzz46qDymXQP [Accessed 21th June 2016] Thoibaokinhdoanh.vn (2016) [online] Available http://thoibaokinhdoanh.vn/441/news-detail/701049/lang-kinh/thi- at: INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES... including 120,000 cows and 116,000 beef cows • In 2015, started construction Nutifood Vietnam Factory in Kien Khe Industrial Zone, Ha Nam with a processing capacity of 200 million liters of milk and 31,000 tons of milk powder, is the largest-scale machine North Viet Nam • Also in 2015, has signed a contract Nutifood established Nutifood Football Academy - Hoang Anh Gia Lai - Arsenal JMG, starting from.. .INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES supply in the market Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai, is expected to grow 236,000 cows (including milking and livestock breeding) and can be increased to 300,000 in favorable conditions Opportunity is Nutifood dairies chosen as proprietary projects as an investor group... bring success to the company • Try to ensure that this policy is understood, implemented and maintained at all levels in the company INTERNSHIP REPORT – 11336 UNITED BUSINESS INSTITUTES Part 3: Recommendations With the implementation of the long-term strategy, after 2008, Nutifood has gradually regained his position on Vietnam's dairy market Total revenue and net profit of the company continued to increase