Báo cáo thực tập _internship report nutifood

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

2


INTERNSHIP REPORT – 11336
UNITED BUSINESS INSTITUTES
I.

Executive Summary

After about 2 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 do 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.

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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 2 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
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Part 3: Recommendations


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Part 1: Overview about Nutifood

1. 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 3 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


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best service with reasonable prices" competition policy is to put
Nutifood become one of the leading food companies in Vietnam
and in the region.
2. 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


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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


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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
3. 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

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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 3 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 3 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


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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 1 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.


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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.


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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,


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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

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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.

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- 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


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Conclusion

V.

In 2 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.

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UNITED BUSINESS INSTITUTES

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