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Business Strategy Analysis of Bach Viet Food Industries Limited
Liability Company

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TABLE OF CONTENT
TABLE OF CONTENT................................................................................................1
RESEARCH OF CONTENT........................................................................................3
1. Introduction on the Bach Viet Food Industries Limited Liability Company..............3
1.1 The process of formation and development.............................................................3
1.2 The process of purchasing, storage and processing of honey..................................3
2. Analysis of PEST model...........................................................................................6
2.1 International environment.......................................................................................6
2.2 Economically..........................................................................................................6
2.3 Politically................................................................................................................7
2.4 Regarding culture....................................................................................................8
2.5 Science and technology...........................................................................................8
2.6 Infrastructure...........................................................................................................8
3. Analysis of the competitive factors...........................................................................8
3.1 Competitors.............................................................................................................8
3.2 Supplier...................................................................................................................9
3.3 Market and Customer..............................................................................................9
4. Analysis of internal factors of the company............................................................10
4.1 Situation of Management......................................................................................10
4.2 Finance..................................................................................................................10
4.3 Marketing Activities..............................................................................................11
4.4 Markets.................................................................................................................12
4.5 HR activity............................................................................................................12

4.6 Product quality......................................................................................................13
4.7 Machinery and equipment and process technology...............................................13
4.8 Activity information system..................................................................................14
5. Analysis of SWOT matrix......................................................................................14
5.1 Opportunities.........................................................................................................14
5.2 Threats................................................................................................................... 15
5.3 The strength........................................................................................................... 15
5.4 Weaknesses...........................................................................................................15
6. Proposed solutions to the business strategy of the company...................................15
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RESEARCH OF CONTENT
1. Introduction on the Bach Viet Food Industries Limited Liability Company.
1.1 The process of formation and development
Bach Viet Food Industries Limited Liability Company was established in mid
2009, is one of the companies producing and processing food of Vietnam's leading
honey product.
Products of diverse company, has been serving useful for everyday life, always
correspond and meet all technical standards, food safety standards demanding that
markets and consumers requires. Products of the company are maintained and
developed with highly specialized, modern production technologies, with the motto
"Always towards the purity of nature".
The company was established in July 2009 production and trading items
mainly honey processing finished products for domestic consumption and export
directly to foreign countries:
- English Name: BACH VIET FOOD INDUSTRIES COMPANY LIMITED
- Address of Head Office: 94/5 Tran Khac Chan Street, Ward 9, Phu Nhuan
District, Ho Chi Minh City
- Date of establishment: on July 1, 2009

- Capital: 2,000,000,000 VND
- Business activities: Production and processing of food (honey, coffee, canned
fruits and vegetables of all kinds), designing specialized manufacturing food
processing.
1.2 The process of purchasing, storage and processing of honey
This process goes through nine steps, beginning from honey from the farm was
transferred to the buying station, then through the test sample analysis to determine
the quality of honey, sugar and other signs of drug toxic in secret (preliminary test and
it accounts for 3 to 6 days), during this period are warehoused bile collection and after
results are transferred to the warehouse confidential company and then put into the
storage tanks for moisture content, concentration,,etc,..., after the refining process to
process impurities, launched part,etc,..., the bile of finished products.
Honey production processes:
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Harvesting honey

Buying stations

from bee farms

Through refining
processing workshop and
separating impurities

Honey finished

Storage in the

products

tank

Packaging Standard

Transferred
warehouse

The warehousing

Export or domestic sale

awaiting shipment
Diagram 1: Honey production processes in the Company
To export, bile samples to be tested by the importer under EU or US standards
(which represents between 7-10 days due to send samples to the importing country for
testing), then packaged and transfer container export port. The quality of honey
depends very much stitching as:
- Like bees and management methods exploiting honey bees
- Sources of nectar: Coffee, Rubber, longan trees, cashew trees, lychee, flowers
Melaleuca,etc,...
- Quality barrel beekeeping and preservation tools. Ensuring quality honey
products according to international standards is very important because over 90% of
production is for export honey. Regulations of world on the composition honey:
Natural honey is a mixture of sugars and some other ingredients; mainly
fructose (about 38.5%) and glucose (about 31%) in addition to maltose, sucrose,etc,...
Specific composition of honey depends on the type of flower, the flowers that
bees exploit.
Honey is the food directly for human use & is derived from nature, the

provisions of the State management agencies mainly provisions on residues of toxic
antibiotics can affect health of consumers.
Standards of some countries (USA, EU, Vietnam, China,etc,...) As follows:
a) Physical properties:
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- Hydraulic parts of honey: not greater than 18.6%.
- Honey has no foreign matters, specific colors.
- Characteristic aroma
- No layered crystalline after a storage period.
- Diastase min 10ppb, 15ppb HMF max
- Phenol Max 50ppb
- Glycerin max 300ppb
b) Limit toxic antibiotic residues:
- Chloramphenicol <0,3ppb
- Streptomycin, sulphonamides, Tetracylines <10ppb
- Flumequine <2ppb
- Tylosin <2ppb
- Nitrofurans ≦ 0.5ppb
Key indicators of pure honey of Bach Viet :
* Physical properties:
- Hydro share not exceeding 18.6%
- The proportion of about 1.4 tonnes/m3.
- Dissolve in warm water, slightly soluble in cold water
- No crystallization temperature (- 10) °C
- Meet other provisions of HMF, diastase, phenol,etc,... According standards
typical of the countries listed above
- Preserving the environment is at normal temperature
* The microbiological criteria:

- Satisfying regulations on antibiotic residue typical of the countries listed
above
- No harmful bacteria such as ecoli, coliferms,etc,...
- The acid does not exceed 40 (ml/kg).
When compared with the strict technical standards of most countries around the
world, the quality of the honey products company has met all the technical
requirements. In 2009, the US was the first country imported honey of Bach Viet to
serve retailers in the domestic market. Therefore in order to ensure credibility on the

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world market and increasing the amount of annual exports, should abide by a strict
process of nurturing, harvesting and processing.
2. Analysis of PEST model
2.1 International environment
Overall, the market for honey in the world are making positive changes, in
favor of the processing industry honey in Vietnam. This is evident through the
increasing consumption tends to increase. It is the result of the effort, learning and
continuing higher realm of both branches of beekeepers intelligent, love my job.
Production levels, quality management of Vietnam honey industry afford to meet the
increasing requirements of the market. Vietnam's honey was actually reputed for
quality and quantity on the world market honey. However, global demand in the past,
present and future are very important products of high quality honey, consumer
demand is also very high. Therefore, Vietnam's enterprises need more effort in
improving production technology to meet the market's demand. The political situation
of the country's most stable and economically developed world increasingly in the
direction of cooperation, stability and mutual investment.
2.2 Economically
In recent years the growth rate of Vietnam's economy is continuously growing.

Per capita income increased stability, increased commodity demand. In 2011, the
government said mission control inflation, stabilize the macro-economy, ensuring
social security to achieve positive results.
Highlights that inflation is abating. Export turnover continues to achieve high
growth rates over the same period last year and compared to the plan, achieving
35.4%. Near the trade deficit by 9.8% of export turnover. Balance of payments surplus
of positive foreign currency, savings deposit rate at 14% -15%, lending rates have
fallen and continue to fall trend.
In addition to the economic achievements of Vietnam also faced some
difficulties. The world economy is facing many great challenges, impact negatively on
our country. On the domestic macroeconomic unstable. Inflation remains high,
business production was no less congested, large inventory. According to the General
Statistics Office said that the commodity prices on world markets continue to

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unpredictable changes; food supplies on the domestic market but has positive sign but
the price of some services and essential commodities will increase.
To handle above situation, The Government has implemented monetary policy
- strict fiscal; improve investment efficiency; promoting export, import controlled to
reduce the deficit; improve production efficiency. In the long term, it should focus on
shifting the growth model based on the application of advanced science and
technology, improve the productivity of social labor, increase the competitiveness of
economic masonry; restructuring the economy. Ensuring price stability, the
Government directed the ministries focusing on solving difficulties and promote the
development of agriculture, forestry and fisheries.
Besides, Vietnam's economy remained challenging: higher budget deficit
accounted for approximately 5% of GDP, foreign trade deficit, investment efficiency
of the economy is still low, is expressed through Vietnam's ICOR is higher than other

countries in the region. Vietnam businesses, including coffee businesses are facing
many difficulties, such as: capital intensive especially during the current period loan is
not going to be easy though interest is very high, namely, interest on bank loans
formerly 19%/year but now is 17.5%/year. Increasingly polluted environment,
extraordinary storms caused extensive damage, the competitiveness of enterprises in
Vietnam is still poor.
2.3 Politically
The political situation in the country, the region and the world have changed
along the trend of peace and stability and cooperation for development become
increasingly demanding practical and pressing each country, plus the way renovation
and opening of the Party and the State in international relations with the present policy
on multilateralism, diversification of external relations and especially in becoming an
official member of the World Trade Organization (WTO ),etc,...
Thus, trade and investment activity growth, the strata, ethnic compatriots
solidarity in a prosperous people, a strong country, social justice, democracy and
civilization; economic components are formed and developed, legislation, economic
policies are reviewed and adjusted accordingly. All the above can be said is a
prerequisite extremely important and very convenient for all the businesses in which
the Bach Viet Food Industries Limited Liability Company.
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2.4 Regarding culture
Social and cultural fields with the positive changes, people's living standards
improved, the rate of literacy is 90% / total national population, health problems
improved. Up to now, the national income per capita of about $ 1,000. These are very
basic advantageous for the development of the sector, including the coffee industry.
On the other hand we also know that our country has strengths in agriculture with
about 75% of the rural population. So the development of the coffee sector will
contribute using abundant human resources in rural areas contribute to addressing

employment for the country and improve the living standards of farmers.
2.5 Science and technology
Numerous scientific advances and new technologies in the country and the
world is and will be applied rapidly in agriculture, processing industry, will be a
powerful agent creating new landmark not only in production, but also in business.
2.6 Infrastructure
Infrastructure of Vietnam is generally too low. Especially the harbor planning
issues is inadequate, not according to the actual situation closely, improper planning.
This has made for overcrowding in all the ports, especially the ports in Ho Chi Minh
City in recent years, causing serious jams container. This has a direct impact on the
profitability of enterprises in Vietnam in general and Bach Viet Food Industries
Limited Liability Company in particular.
3. Analysis of the competitive factors
3.1 Competitors
That is the business activity in honey export business. Currently, there are a
few dozen major unit of Vietnam export and re-export more direct clue that foreign
merchants should cause painting purchase sell very drastic. This caused a huge
influence on trade to export and cause damage to the whole industry in general honey
processing and Bach Viet Food Industries Limited Liability Company in particular
and it is economically beyond Vietnam because honey is a commodity brought the
country an amount large exports annually. Some of the strengths and weaknesses of
them as follows:
- Strengths:
+ Strong financial.
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+ There is a wealth of experience in international trade.
+ The abundant raw materials.
- Weak spot:

+ Machinery and equipment not yet caught up with the requirements of the
market.
+ Staffs research and product development is weak.
3.2 Supplier
It is the private enterprise, the production base, the honey farm, honey,etc,...
Supply honey for Bach Viet Food Industries Limited Liability Company.
For agricultural farms, Bach Viet Food Industries Limited Liability Company
often implementing policies to enhance stock production efficiency.
However, most of the honey export Bach Viet Food Industries Limited Liability
Company has been purchased from suppliers. In general, due to a single enterprise of
honey processing industry meets country eligible for honey export finished products
should Bach Viet Food Industries Limited Liability Company has certain advantages
in purchasing from suppliers and sources. Therefore, Bach Viet Food Industries
Limited Liability Company may be the source of the initiative. However, though
buying from whatsoever source also require advance payment source for the supply
unit so this is a difficult but sometimes Bach Viet Food Industries Limited Liability
Company not active in buying and sales for large quantities, long-term delivery.
In summary, in terms of suppliers of the Bach Viet Food Industries Limited
Liability Company also compete to buy from the competition and this is a fact can not
be changed when the financial situation of the Bach Viet Food Industries Limited
Liability Company is so weak.
3.3 Market and Customer
Needs of the world's honey are increasing. This is a very favorable factor for
the honey industry existed and developed. The honey products of Bach Viet Food
Industries Limited Liability Company has been Vietnam market, Japan, US and EU
acceptance. However, due to the new company set up more than two years of market
products of Bach Viet Food Industries Limited Liability Company remains modest.
This is a very big limitations and challenges are greatest for Bach Viet Food Industries
Limited Liability Company. The reason is that:
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- Business market, poor marketing.
- No professional staff, veteran international business.
- Insufficient financial resources to undertake large contracts for the amount,
nature long-term delivery. Thus, current market of Bach Viet Food Industries Limited
Liability Company is too small. In the future, Bach Viet Food Industries Limited
Liability Company requires expanding markets.
4. Analysis of internal factors of the company
4.1 Situation of Management
Newly established in 2009 with the workforce of 70 employees, before the
period of fierce competition as today, although the company is small, the organization
operating the apparatus includes some pretty neat essential departments operation,
through three years of operation of the management of the Bach Viet Food Industries
Limited Liability Company is effectively shown growth levels in recent years.
Company leaders attach importance to the work of building a business plan, namely:
- Determining strategy: Board of Directors and relevant departments to discuss
yearly work out specific strategies in the short term as well as long-term.
- Policy Development: The company set up the appropriate policies to support
the department created an electric finish that the company plans to put in place,
implement strategic business elements of the company such as:
+ For bee husbandry department, the company supports the capital, farming
techniques, price support,etc,...
+ For the production department supports appropriate salary when working
overtime
+ For parts management, office support policies and training, improve their
professional qualifications.
4.2 Finance
Small-scale enterprises should scale of capital is one of the top concerns of
company leaders. In the past year the company pretty good control of financial, sales,

debt receivable and payable, inventory, cost of production and business. Although the
company managed well financially but still some difficulties following:
- Due to pressure sales company made direct payment method to our
customers, making recovery time of rising debt.
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- Lack of capital, capital needs to purchase honey at harvest time while waiting
for higher prices of new cheap sale is great, but in the state capital as current limited
companies not take full advantage of this opportunity. This gave, Bach Viet Food
Industries Limited Liability Company missed big opportunities in the business having
to skip the high-value contract.
- Lack of capital plus interest rates too high Bank forced the company to
minimize finished goods inventory, fast exporting to revolving fast, so efficient use of
capital is not high.
4.3 Marketing Activities
The Company does not have a separate marketing department, which is just a
marketing department of the company's sales department. The market research
company infrequent. Marketing work longer passive, no short-term marketing strategy
as well as long-term. marketing activities of the Bach Viet Food Industries Limited
Liability Company in recent years as follows:
- Packaging: For each product category, the company designs, different
packaging designs. The company's logo appear next to the name of products. On the
packaging product is always full product components, a content and preservation,
manufacturing date, expiry date, weight,etc,... But, compared with the product of
some developing countries, the technical sophistication packaging is not high.
- The size: Is the diversity of company sizes, to meet the needs of each market
segment.
- Price: The cost to make up the cost of honey products Bach Viet Food
Industries Limited Liability Company is quite low, so the selling price of products at

average levels lower and honey products of other companies. Simultaneously the
company also adjusted according to the fluctuation of the price of the market, research
the supply and demand and tastes of consumers to make decisions about the right
price.
- Advertising: The advertising company on the media like newspapers: Youth
Newspaper, newspaper employees, advertising on TV, via the distribution channels on
the internet,etc,...

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- Promotion: In 2014 the company began to focus on the domestic market held
rich and thin invites customers to try the product content, gifts with purchase,
discounts to customers who buy in bulk,etc,...
- Sales Promotion: The company participated in trade fairs program Vietnam
high quality goods, participation in international fairs program.
4.4 Markets
The Company does not focus on developing the domestic market but only
interested in the export market, so domestic sales of the company accounted for a low
proportion of total sales revenue of the company. Current market mainly export
market to the countries, the US - Japan - EU countries. The company is quite
confident to penetrate this market as the company is a unique company in Vietnam
with modern machinery and technology, producing products with very high quality
meet the required criteria very strict specifications. Currently most of Vietnam
companies exporting honey sold as semi-processed raw product, private company
with technological superiority is the first company to produce refined products lines
branded Vietnam exported to foreign countries through distribution channels to sell
directly to consumers.
Trademarks and product quality of the company has been more known foreign
partners and the end of 2011 had many foreign companies contracted consumer

products company. Market share of the company's products is growing. But taking
advantage of the prestige of Vietnam's honey on the world market, some enterprises
have imported low-quality honey from the regional countries and re-exported to the
fine under Vietnam origin, thus the product the company also faced many difficulties
in penetrating the US market because of technical barriers increasingly stricter.
4.5 HR activity.
- Labour skilled qualified, highly experienced accounting for 30% of all
employees have college degree and university or higher. Study who were trained in
combination with experience has been accumulated, promote all of the coal capacity.
The labor force is mostly held the key positions of the company.
- Unskilled workers accounted for about 70% of them are high school educated
workers. Their work is the worker bee farm in the company, dedicated to providing
the main raw material input and direct production workers in the sewing handmade.
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- Coaching Training: The Company pays great attention to the training and
retraining of officers and staff as: Regular classes specialized knowledge for company
staff, skills training for workers dynamic, send people to participate in technical
training of advanced technologies.
- Policy salary: The salary of the company is quite consistent with the
economic situation as the current market, salary structure of the company is quite high
for a team of professionals and technicians skilled, creating business dynamics of
manufacturing companies increasingly more efficient. For workers paid directly to
producers under the direct mass produced products.
4.6 Product quality
Product quality honey exports Bach Viet Food Industries Limited Liability
Company is natural honey, it comprises a mixture of sugars and some other
ingredients; mainly fructose (about 38.5%) and glucose (about 31%) in addition to
maltose, sucrose,etc,... specific composition of honey depends on the type of flower,

the flowers that bees exploit. Honey is the food directly for human use & is derived
from nature, honey production process of the company always adhere to the
provisions of the state primarily on antibiotic residues may toxic affect the health of
consumers.
Honey quality of the Company to satisfy the following basic parameters:
+ Water content ≦ 18.6%, diastase ≧ 10, HMF ≦ 15ppb.
+ Chloramphenicol ≦ 0.15ppb, nitrofurans ≦ 0.5 ppb.
+ Streptomycin, Sulfonamides, Tetracylines ≦ 10 ppb.
+ Tylosin ≦ 2 ppb.
The honey products of the company are now only pass the strict control of the
quality inspection organization US food safety and has been approved for import into
this market. Again to confirm the quality of the product line of the company honey,
late November 2011, the first shipment of honey Bach Viet have been cleared, pass
strict inspection fence of Japan. This is also the first month, the company launched a
line of honey products exported to the US had been for years, to sell at the local
market.
4.7 Machinery and equipment and process technology.

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The only difference of Bach Viet Food Industries Limited Liability Company
versus domestic enterprises and the business sector, owns a unique technology for the
modern product line of pure honey and products honey products of the company
always satisfy and meet all technical standards, food safety standards demanding that
markets and consumer demands.
Modern production technology, qualified skilled workers in processing material
area clean - stable; Bottled honey products of the Company always keeps the flavor
inherent natural color. The products of the Company factory are tested strictly as per
standards consistent with international practice.

4.8 Activity information system.
- Gather information law: Company updated pretty good about the legislation
from the Government, departments (corporate law, investment law, commercial law,
food safety ordinance,etc,...) in order to serve the operational system as a basis for
implementing the business and production activities in accordance with law.
- Crawl market: The company has made the investigation of market
information. The investigation was conducted by the marketing department of the
company and have provided some useful information about customers, competitors.
Do not regularly collect feedback from so clients are very limited.
- Providing information: The company has the infrastructure for direct
interconnection network all three rooms, attached parts to ensure uniform operation of
the entire system of company information timely and accurate.
- To provide better information Bach Viet Food Industries Limited Liability
Company building company website .
5. Analysis of SWOT matrix.
5.1 Opportunities
- The growth rate of the economy, high and stable, life improved, rising
consumer spending.
- Potential market inputs of local raw honey is very large and widely across the
country.
- Market for domestic honey products and the world is very wide.
- The political situation in the country stabilized, complete legal system.
- The need to use pure honey and more.
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- The labor of abundant and stable country.
5.2 Threats
- The business environment is highly competitive with many competitors have
strong financial situation, many new competitors.

- The barriers of hygiene, food safety among countries is increasing.
- Environmental pollution, communicable diseases, as well as honey quality
harmful impurities.
- Technology for producing high hill increasingly sophisticated level.
- The competitiveness of potential rivals in the future.
5.3 The strength
- Board of Directors, company executives have extensive experience and
market expertise, staff closely associated with the company.
- There is a team of skilled workers, with the spirit of enthusiasm, enthusiastic,
dynamic, respected the rights of consumers.
- The quality of company products high and meet the requirements of the
market and customer trends and current consumers.
- There is strong brand in export markets.
- Technology modern production beyond domestic rivals.
- The company is very focused and regular research and development of new
products to meet the needs of the market.
5.4 Weaknesses
- Business Marketing not flagged
- The advertising of products of the Company have not been promoted,
marketing sales to consumers are limited.
- Due to the limited liability company established with small-scale business
capital is weak.
- Collect market information is limited.
6. Proposed solutions to the business strategy of the company
- Entry into the market is a critical factor for business owners to contribute to a
strong foothold in the competition. This work not only interested in the process of
exchanging goods that even in the stage of sales or need to improve quality at the
request of customers.
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- Need to raise awareness of the responsibility of the purchasing department,
transporting raw honey products, guiding them properly preserved.
- Focus on doing good care input area (beekeeping sector) of the Company and
its affiliate partners, good communication responsibility for environmental protection,
environmental hygiene at the premises beekeepers.
- Business information and marketing company must be promoted more
strongly, have fully equipped art information and business to avoid failure in trading,
especially with international partners exterior.
- Final quality through processing will be the crucial step in improving the
profitability of the Company. Also before the market requirements of the World is the
product quality increasing, reached at the level of deep processing, product
diversification. Requires urgent company must continue to invest in research and
scientific and technical achievements applied via advanced processing pure honey
with natural purity.
- Competition is taking place very intense and complex on domestic and
foreign markets, especially for companies, so the company product price lower than
the selling price of the same products. However the implementation of measures on
prices should scrutinize the relationship between price and quantity sold. Pricing
system aimed at enterprise: The company needs to rely on the document, the actual
figures of the previous year's price, then the expected price on the basis of the
conclusions of the expenses were incurred. Determining the expected costs on the
basis of the results of the analysis of the actual costs. Determine the wholesale price or
the retail price flexibility in the structure of each product on each market.

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