Corporate social responsibility, Exercises of Strategic Management

Download Corporate social responsibility and more Exercises Strategic Management in PDF only on Docsity! LE TAM THANH – LE THI HAI VAN 1. We choose Vinamilk as the enterprise to determine a CSR campaign. 2. Research the community challenges where THAT BUSINESS OPERATES and select A CAUSE that is of interest to you that they as a business could help solve AND BENEFIT FROM SUPPORTING. Describe in one paragraph how you selected THE CAUSE and why it is a good match for the business / customers.  Challenges Besides opportunities, Vinamilk also needs to face a number of challenges. - Many competitors enter the market The dairy market is also a highly competitive market. Therefore, this is a challenge that Vinamilk has to face. - The increasing demand for products leads to the emergence of new competitors. With a long-standing brand like Vinamilk, this is both an opportunity and a big challenge. Currently, Vietnamese consumers are facing many choices of dairy products. Especially foreign brands are landing in Vietnam, leading to Vinamilk's position in the market gradually "shaken". - Some of Vinamilk's main competitors can be mentioned such as: TH True Milk, Dutch Lady, ... and emerging brands such as Meadow Fresh or Table Cove. - The increase in the number of competing companies causes many potential risks for Vinamilk such as reducing the variety of dairy products (competition in niche markets), difficulty in maintaining loyal customers, loss of market shares, etc. milk into the hands of competitors…  Unstable input materials Another challenge Vinamilk faces is unstable input materials - Although owning international standard dairy farms, Vinamilk's raw materials still depend on imports. In addition, because the profit from livestock production is not high, farmers tend to switch jobs. This has created a great pressure on Vinamilk, requiring the brand to focus on developing domestic raw materials, avoiding dependence on imported materials from abroad. - Vietnamese customers tend to prefer foreign milk The tendency of Vietnamese people to prefer foreign milk is a big challenge for Vinamilk. - For health-related products, customers tend to prefer foreign products. They believe that the nutritional content and safety of portable products is higher than that of domestic products. With this situation, Vinamilk needs to strengthen more brand promotion campaigns, affirming that the nutritional value of the product is not inferior to any famous foreign brand.  Weaknesses Besides the strengths, Vinamilk also has weaknesses that need to be overcome. - Not being able to control the source of raw materials, depending on imported raw materials is one of Vinamilk's weaknesses. - When domestic raw materials only meet about 30% of production demand, 70% of supply and input material ratio depends on the world milk supply-demand relationship. With this dependence, Vinamilk's production and business situation will be affected by the external environment as well as factors such as inflation, economic crisis, etc.  The market share of powdered milk is not high. - Currently, users tend to use imported powdered milk higher than domestically produced powdered milk. In addition, the market appears more and more foreign milk brands imported from Europe, so Vinamilk's powdered milk market share, which holds a monopoly position, tends to decline. - To capitalize on strengths and overcome weaknesses, Vinamilk can seize a number of beneficial opportunities to develop its brand and increase sales as follows. - The supply of raw materials is being supported by the government, imported materials have a reduced tax rate. In recent years, the Government has had a lot of great impacts on the domestic dairy industry. Specifically, since Vietnam became a member of ASEAN and WTO in 1995 and 2007. In July 2010, the Ministry of Health of Vietnam approved regulations requiring dairy products, especially milk for children. must meet certain standards.