kinh do of report - copy

7/22/2019 Kinh Do of Report - Copy

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REPORT OF KINH DO

N G U Y E N D U Y A N H K H O I

C L A S S : B A B A 7

ORGANIZATIONS MANAGEMENT


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REPORT OF KIN H DO CORPORATION

Content of report

1. History about establish and development

2. Intruduce about company.

3. Organization structure.

4. Business activities.

5. Material and cost

6. Technology

7. Management of quality

8. Distribution system

9. Competition

1o.Forecasting

11.Research situation and development of new products

12.Conclution and References


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I.History and Development

Kinh Do Corp is a forerunner of Contruct and Food Processing KinhDo Limited Company been stablished in 1993. In the first days,company only is a small workshop with square 100m at District 6, Ho

Chi Minh City and only has 70 workers and starting capital is 1,4 billVND. The company pruduct and trade on Snack and some newproducts for domestic customers.

In 1994, the comany increas capital from 1,4 bill to 14 bill and buyprocess product snack to cost 750,000 USD with Japan technology.That is the good basic for future development.

In 1996, company builded new factory in 6/134 high way 13, ThucDuc District and invest om process pruduct cookies cake withtechnology from Denmark to cost 5 mil USD and employees ofcompany increase to 500s.

In 1997 and 1998, company invested proccess of product bread tocost 1,2 mil USD with capacity 25 tons per day. In the last 1998,company bought proccess product choccolate with invesment capitalis 800,000 USD.

In 1999, company increased capital to 40 bil VND and establishedcomercial center SavicoKinh Do in Dictrist 1, Ho Chi Minh City.

And in that year, company started bakery systerm that was the fisrt tohave store chain of Kinh Do business on cake and canndy fromSouth to North after that.

In 2000, company increased capital to 51 bil VND and extendedfactory to 40,000 square metter beside developed on multi productstrategy. And in that year, company invested the chain for productcrackers cake from Europe to cost 2 mil USD and that is the productcracker cake proccess largest in asian.

In 2001, company bought a product candy chain proccess withcapacity to 2 tons per hour to cost 2 mil USD. And in 2001, companyincreased capacity of product cracker products to 50 tons per day byincreased the proccess cracker case to cost 3 mil USD. In Jan 52001, company got ISO 9002. And in that year, many products ofcompany were exported USA, Frank, Canada, Germerny, Japan,...To get effective on management , on Sep 2002, Corporate Kinh Dowas established with funtion product cake and candy to sell provinesin South Viet Nam, Middle and to export. Corporate Kinh Do hascapital 150 bil VND.


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In 2002, to increased effective business and can intergrate with anycountries in over the world, the quality management system followISO 9002 was replaced standard ISO 9001: 2000.

In 2003, company bought proccess studious product chocolate tocost 1 mil USD.

In 2005, company to issued 5,000,000 share and increased capital250 bil VND.In 2006, company issued 4,999,980 bonus share for shareholder

and increased capital to 299,999,880,000 VND.In 2007, company issued 5,999,685 980 bonus share for

shareholder and increased capital to 359,996,650,000 VND.In Oct 2007, company issued to public 11,000,000 share increasedcapital to 469,996,650,000 VND.

In 2008, company issued 10,115,221 bonus share to shareholdersincrease capital to 571,158,760,000 VND.

In Jun 2010, company issued 20,047,879 bonus share toshareholders and increase capital to 1,012,765,880,000 VND.

II. Introduce about company.A: Background.

Kinh Do Corp is a buseness group of Viet Nam with anemphasis on food production, including baked goods, snackand soft drink. The corporate group also includes companiesin the field of finacial services, real estate and a retail bakery

chain. Kinh Do corporate manages a wide variety of brandnames, distributes imported brand name snack and candygoogs, and manufactures food for export from Viet Nam.Main offices of company are located in Ho Chi Minh City.

B. Visions, mission and goals

Visioons and Missions: Kinh Do enriches peoples lives by providingproducts and services which immediately realize the need anddesires for Living Fine. Applying our dynamism, creativity, foresightand other core valude, we create products and services which

delivery consumers what they want and make us all proud. Peopletrust Kinh Do companies, products and services so much they rely onthem for Fine Living every day. Kinh Do generates bonus personal,economic and commercial valude and pricde for staff, partners andstakeholders.


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Goals: become both Vietnam;s and the Asia Pacific regions leadingcompany in the food category.

C. Impormation general about Kinh Do:

Name: Kinh Do Corporate

Abbreviate Name: KIDO CORP Logo

Capital: 1,012,765,880,000 VND

Head office: 141 Nguyen Du, Dictrict 1, Ho Chi Minh city.

Phone: (84-8)3827 0838 Fax: (84-8)3827 0839.

Email:[email protected]

Webside:www.kinhdo.vn

III. Organization structureA. Organization structure of Kinh Do Corp.

Members in system of corporate.

Num Company name Address

1 Kinh Do CorpotareCapital: 1,012,765,800,000 VND

141, Nguyen Du, Dictrict 1,Hochiminh city

2 Ki Do CoporateCapital: 69,000,000,000 VND

Cu Chi North Industrial Park, CuChi district, Hochiminh city

3 Kinh Do Binh Duong CoporateCapital: 100,000,000,000 VND

Viet Nam- Singapore IndustrialPark, Binh Duong provine

4 VINANICO Corporate

Capital: 90,000,000,000 VND

436 N Trang Long, Bnh Thnh

Dictrict, Ho chi minh city

5 TN AN PHC CorporateCapital: 500,000,000,000 VND

6/134, 13 hight way, Thu DucDictrict, Ho Chi Minh City
mailto:[email protected]:[email protected]:[email protected]://www.kinhdo.vn/http://www.kinhdo.vn/http://www.kinhdo.vn/http://www.kinhdo.vn/mailto:[email protected]


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KINH DOCORPORATION

KINH DO BINH DUONGINCORPORATEDCOMPANY (80%)

KIDO INCORPORATEDCOMPANY (28,3%)

VINABICOINCORPORATED

COMPANY (51,2%)

TAN AN PHUOCLIMITED COMPANY

(49%)

BOARD OFDIRECTORS

BOARD OFMANAGERS

TURNOVERDEPARTMENT

Sales

Marketing R & D

COSTDEPARTMENT

Production

Purchasing Logisitc

ASS ISTANCEDEPARTMENT

Accounting

Staff

IT

Training

COOKIES

CRACKER

SNACK

CAKES

BUNS

CANDIES

MANAGERS' OFFICE

Legal department

Invest department

Strategy department

PR department

Internal Auditing

SBU

Figure1: Kinh Do Organization Systerm Diagram

Figure 2: Organization structure:


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B. Managemenr level:

There are 3 levels on the management, in top is the top-level, andnext is middle-level and the last is suppervisory-level.The top management perform strategic plainning and the other twolevels provide support in the form of proccessed information. This levldevelops the strategy for deciding the objective of the organization,planning resources to be used in order to attain those objectives,

formulating policies to govern, use and disposition of the resources.The middle management level perform tactical plainning and control,and needs information to discharge these mangerical functions. Thislevel develops the strategy for deciding the objectives of theorganization, plainning recources to be use in order to attain thoseobjectives, formulating polices to govern, use and disposition of theresources. The suppervisors level is invloved in day-to-day operationcontrol and needs information for it working. It is the proccess ofensuring that operational activities are carried out to achieve optimum

use of recources. It make use of pre-established procedures anddecision rule.

. Charman

. CEO

. Dicrectors

. Marketing Manager

. HR Manager

. Customer DevelopmentManager

.Supervisor

.Controllers


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IV. Business activites.A. Main product groups of companyNow, company are producting 7 product groups: cookies cake,crackers cake, snack cake, moon cake, bread, candy andchocolate.

1. Cookies cakeThe element of cookies case include sugar, egg, and flour. Withcapacity to 843 tons per month, the cookies cake of Kinh Do gain45% domestic market share and that is the traditional product. Thecookies cake has many types:- Some brand butter cake and salty cake such as: More, Yame,

Doremi, Gold time, Famous,Bosca,...- Some butter cake: Fruito, Cherry cookies with cacao and

coffee, Fine, Friut and cookies, Ki-Ki, Kidos,...- Cookies IDO ....

2. Cracker cakeCracker cake is the product be processed from flour to ferment.That is the product has biggest to consume of company, withcapacity to 1,484 tons per month. Due to about advantagetechnological, now Kinh Do is the producer largest on productcracker cake in Viet Nam. With main brain name AFC, cracker ofKinh Do hold 55% market share. Cracker cake be sold lot ofdomestic and include USA. There are have some types:- Salty cake, original cracker: AFC, Hexa, Cosy,..

- Cream Cracker- Cracker cake with high calcium: Cracks, Bis-cal,...- Biscuit with more flavour: Deli, Vip, Creature of the sea,

Merio,...- Cracker cake cheese: Mini butter chees, chees flavor,...3. Waffle cake

Waffle cake is a cake has cylinder,soft, esay to break.Althought no has big turnover but waffle has good flavor with 14flavors different of many different cake such as Love Rolls,Fest, Sera Sera,...

4. SnackSnack is a first products of Kinh Do, that product be appliedhigh technology of Japan from 1994. Snack has many typeswith many flavors suitable to customers such as seafood,chicken snack, beef, chocolate,...Some brands name of Snack: Sachi, Bon-Bon, Big sea,Crocodile, Curry chiken snack, Dino,...


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5. BreadPacking bread is a read be producted and packing on hightechnology process have use dat from 7 to 9 days. That productcan be used for handy breakfast. Now Aloha bread of Kinh Dois a head product on bread market in Viet Nam. Because of

products quality and suitable price and handy ( easy to find andstore).Beside the break, Kinh Do also has sponge cake with long dayfor use and good material such as wheat flour, chicken egg andcream. Sponge cake is a product main contribute on sale andprofit of company.

6. Moon cakeMoon cake is a product has season character, however it hasbig sales on total sales of company ( 15%). The output of mooncake has speed develop very high: in 1999 is 150 tons, in 2009

is 1,600 tons, it mean from 1999 to 2009 the output increase967%. In 2009, company producted over 60 types of mooncake. Now Kinh Do, Duc Phat, Hy Lam Mon, Bibica are bigproducer in Viet Nam, and Kinh Do is leading number one.

7. CandyKinh Do has two candy segment are Crundy and Milkandy.Crundy- is a combine fruit taste and Milkandy is a mixing of milkmake to interesting for customer.

8. Chocolate

Company product chocolate follow ball type such as stuffingsnack, grapes, peanut,... are been producted on hightechnology, chocolate of Kinh Do have stable quality with gooddesign.


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B. Sales in 2008, 2009 and 9 months in 2010.

Item 2008 2009 9m of first 2010

Cost (bucket) Density Cost(

bucket)

Density Cost(

bucket)

Density

Cookies 8,939,894 45,20% 10,204,640 53,90% 11,265,954 64,60%

Cracker 2,194,922 11,10% 2,170,897 11,50% 1,531,145 8.8%

Snack 1,289,042 6,60% 639,203 3,40% 617,368 3.5%

Bun&cakes 7,113,721 6,50% 5,756,496 30,40% 3,890,504 22.3%

Candy 255,753 35.9% 151,089 0.8% 41,402 0.2%

Others 0% 0% 84,178 0.5%

Total 19,793,332 100% 18,922,325 100% 17,430,551 100%

Table: Yield annual in 2008, 2009 and 9 month in 2010.

Item 2008 2009 9m of first 2010

Cost (mil vnd) Density Cost( mil vnd) Density Cost(mil vnd) Density

Cookies 379,046 26.6% 450,533 30,00% 456,541 34,50%

Cracker 281,221 19,70% 307,242 20.4% 229,576 17.4%

Snack 97,348 6.8% 68,45 4.6% 71,416 5.4

Bun&cakes 557,039 39.1% 578,651 39.1% 473,104 35.8%

Candy 46,141 3.2% 29,626 2% 10,874 0.8%

Others 63,653 4.5% 59,741 4% 79,872 0.6%

Total 1,424,447 100% 1,503,242 100% 1,321,330 100%

Table: sales annual in 2008, 2009 and 9 month in 2010


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Some pictures of Kinh Dos product:

C. To assess result of businessThe result of Kinh Do can say that is active while difficult on

economic. The market share of every product are increase. Incomebefore tax and interest in banks are still good level.1. Sales

Sales increase about 32% with every business unit( SBU).


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Firgure 3: Contribute on sales in 2011

2. Develop on business:

Firgure 4: Incom index from 20052010

29%

22%17%

13%

11%

4% 4%

Biscuits Cakes Moon cake Buns Ice crean Yogourt Snack Candy/Choco

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009 2010

Net revenue

Profit after taxes bil vnd


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V.Material and co st.

A. MaterialMain material be used in produce cake dry are wheal flour,

suggar, egg, milk, cooking oil, shotening butter and otherflavors,..Main marerial be used in produce moon cake are: Chinnawheal flour, suggar, duck eggs, water coconut, tea, greengram,...

1. The resources materialSome basic material such as suggar, egg, flour are be boughtin domestic.

And some material such as milk, material to producechocolate,... are import from other countries.

Wrapping are bought in domesitc by big company in Viet Nam.2. The stability of resources material

The suppiers of company are have factory or stay on Ho ChiMinh city, so that the available material always can supply toKinh Do and the transaction cost is not so much.Egg and milk are the product from chickens and cows, they areproduce with big size in Viet Nam market. And years ago,cause to dosmestic demand increased so that the farm andenterpsire business on that area were increaed too. So that the

supply for milk and egg can be stable.The wheal flour be spplied by dosmestic company such as BinhDong company, Wheal flour Technology Viet Nam Copmany,..

B. Produce costCompany controlls produce cost by on controll process

produce. The proccess produce of Kinh Do are designedclearly, close , synchronous, so that company can sure theproccess can run right from start to find out mistake. Everymonths, Manager Accounting Department test about the

produce cost and reported to many level chief operting officer.Beside that, the proccess of company are high technology so

that it can be reduced wear out at the minimum.Good cost managment, so that the produce cost of company

has competition with other enterprises and other companies.


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VI. Technology.Kinh Do currently owns modern confectionery production

line in Vietnam, many of which are among the most modernlines the Asia Pacific region.whole machinery of the

company is equipped with a new 100%, each production lineeach product line is a fear of the optimal combination ofmodern machinery and equipment from many differentcountries.

Design capacity of the production line

Production line Capacity (tons/mon)

Cookies 843

Moon cake 1,485

Crackers 1,484Waffle 345

Cakes 1,172

Buns 2,331

Snacks 780

Chocolate 325

Candy 354

Technology and line produce of Crackers


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But the packaging is special product line Crackers Kinh Donot invest now packing machine, packaging is still done byhand.The company is planning to invest automaticpackaging line in the future.

Department paking of Crackers

VII. Management quality.

1. Systerm are applying:Companies are applying the quality management systemISO 9001: 2000 by the BVQI certification of the UnitedKingdom 10/2002.ISO 9001:2000 quality management system is strictly

company. From 2002 to now, the company has held BVIQconducted reassessment of the quality management systemof the company 16 times (in cycles 6 months 1 times) withgood results.

2. Checking quality departmentCheck the quality of products made by managementdepartment to ensure quality control (Q & A) and researchand development (R & D).

3. Food safetyFood safety is a matter very focused company, sees this as one ofthe criteria to make the product competitive local Kinh Do. Ensuringfood safety is taken continuously from raw materials to the stage ofvery strong sales as follows:


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For raw materials:The company always updates the health provisions of Vietnam andother countries in the export market of the company to control theamount of additives used in products that do not cause any impact onhuman health

Using raw materials imported from the vendor brand and reputation.Closely examine inputs of quality, hygiene, statusIn the production processSet strict rules of hygiene in the production process. The workers in

direct contact with the product are equipped with the knowledge offood hygiene and safety, all and all wearing gloves, a mask, hooded.Production tools and material contained regular cleaning and periodicregimes for each unit.Staff always quality control (QC) responsible for monitoring the

supervision of the observance of regulations on hygiene in the

production process.Perform product sampling for microbiological testing laboratory

company. In the case of complex test criteria, samples will be sent tothe central laboratory analysis services science and technology in HoChi Minh City analysts.

Line produce Crackers


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For products:Components are packaged in sealed packaging, hygieneTo guide the company sales staff and distributors storage, display

products according to the requirements of each product to avoidproduct damage

The company encourages consumers to change, return the productif the product is damaged signs.

VIII. Distribution System.

Kinh Do to the distribution of products primarily through saleschannels of communication (GT).Besides, Kinh Do also focuses ondiversification of distribution channels in the distribution via variouschannels such as supermarkets, bakery systems, service, channel,schools, entertainment, ...

System agents and distributors: confectionery company is nowhave the largest dealer network in the country with about 200distributors and 75,000 retail locations and over 1,000 salesstaff across the country, this systemconsumes about 72% ofthe company's sales.

Supermarkets: the company's products have become familiaritems in almost all supermarkets in major cities throughout thecountry, mainly in Ho Chi Minh City and Hanoi.Revenue fromthe modern distribution channels accounted for 5% of the net

sales of the company. Bakery system: through the chain store system consumers can

buy the company's products a convenient way through 40 largestores on the main street of Ho Chi Minh City andHanoi.Distribution system has strong growth prospects not onlyin Ho Chi Minh City and Hanoi, but also in other locations dueto the deployment of the franchise business model has beenapplied.


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Firgure 5: Distribution system of Kinh Do

IX.CompetitionCompetitive factors, is vital for business.

Determine the scope of the industry and competitors: corresponds to the

company's product groups to implement the defined industry includes

enterprises producing by-products of heading the company's products.

We can divide the candy business into six groups:

Groups Competitors

Snacks cakes Pesi(Poca), URC(Jack&Jill), Bibica, Hai Ha,..

Cracker cakes Hai Ha

Moon cakes Duc Phat, Nhu Lan, Hy Lam Mon, Bibica

Cookies cakes Hai Ha

Bread Pham Nguyen( Solite)candy Vinabico, Hai Ha, Quang Ngai,

Table:Competitors with Kinh Do

Moon Cakes: due to high product quality, relatively strong signal,

good marketing, ... Thus the product is always sold out before

collection and no occurrence of Sale BIG SALE, so profit of cakes

AGENT DISTRIBUTION

KINH DO

CUSTOMER

SUPERMARKET

AGENT RETAIL

AGENT WHOLESALE


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very high.Currently, Dong Khanh and Duc Phat are the most powerful

competitors with the company.

Candy: We always keep abreast of consumer tastes and always timely

adjustments in the introduction of new products consistent with

customers.However, today lollipops lowest proportion of the

company's revenue (2%).Currently the largest candy manufacturers in

Vietnam was candy production company Perfetti Van Melle Vietnam,

Bibica and Hai Ha Confectionery Joint Stock Companies.In the South,

Perfetti is the biggest competitor for products lollipops, the two Ha

fierce competition with companies in Central.

Chocolate Candy: Produced on modern technological lines, with

steady quality, nice design.However, chocolate is a luxury items, use

more imported materials, psychological consumers today prefer

Chocolate foreign company's Chocolate should be only targeted atbudget customers and customersunder 18 years of age.However, with

a wide dealer distribution system across the, Chocolate company still

offers on the market, compete with other brands in the mass market

segment to the middle class.


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X. Forecasting.Reviewed Filesize market is a very necessary, because it is the basis for

strategic planning and business.However, so far no one official statistics

of Vietnam's total production of confectionery.

To determine the content of the confectionery market in Vietnam, the

company based on three sources of information:

According to data from Mar (one of the world's largestcorporations): Filesize candy Vietnam about 156 millions USD in

2015

According to the research results of the Ministry of Planning and

Investment, 2005

0

200

400

600

800

1000

1200

1400

1600

1800

KDC Huu Nghi NKD Bibica Hai Ha

Sales of some companies in 2009 ( bil vnd)

Sales of some companies in

2009 ( bil vnd)


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Year 2000 2001 2002 2003 2004 2005 2006 20072015

(forecast)Level

expense/year

on buying

candy

25,623 28,134 33,258 37,589 42,185 46,215 48,987 52,462 96,525

Population

(mil) 77,635 78,685 79,727 80,902 82,031 83,119 84,366 85,632 96,464

Quantity of

market1,989 2,215 2,652 3,041 3,460 3,841 4,133 4,492 9,302

Table: forecasting for 2015

XI.Research situation and development of new products.

The company paying special attention to the research and development of

new products, if this is not the only task the Research and Development

department, but also the responsibility of the Board of Directors and the

board of directors.

And study new products, from preliminary processing of raw

materials, processing, packaging, storage products.

The study measures to improve product quality, design, packaging.

The production of research on new lines of investment orinvestment properties.

Research the use of new materials in the production process

Study the production of export products in order to ensure.

For research and development, human factor plays an important

role.Currently the R & D of the company have more than 20 experts in the

field of food processing is basic training from universities at home and

abroad, have more practical experience and coal part in short courses

everyyear.The company also opened the short-term training courses on

new production technologies for teaching staff with foreign experts.Thecompany always creates the best conditions for staff access to the latest

information on new products, new technology, new trends of the market.


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Industry Creacker:

Exploit the superior features of the new line with the successful research

and development to market line biscuit cocount products attractive quality

butter, the first in Vietnam. Besides, the company focus on improving the

quality of the main product lines AFC, Cosy, Marie in order to maintain

stable quality. Industry to ensure quality remained stable and alwaysimproving and is one of the factors that make a difference to compete with

the same products on the market.

Cookies cake industry:

technology investment, the father of the entire product line cookies from

the domestic consumer products used every day to the products as gifts

during the holiday ceremony.

Moon Cake

Timely capture consumer trends food low in sugar, the research and

development department successful pastry products, slimming,,, make asignificant difference in the taste of the product.

Cracker industry

Successful research and development for the cake 2 people on the new

production line, modern technology, new quality, unique special high food

hygiene safety.

Bun industry

In 2009, the company has successfully developed the product line fresh

bread with chicken the salt rub cotton and attractive quality, to meet the

sanitary conditions of food safety and consumer acceptance preferred.

Conclution

Vietnam is moving to market-oriented mechanism of socialist management

of the state, in terms of regional economic integration and the

world.Before changing business environment, competition is increasingly

intense as today, every business needs to find a correct direction to keep

up with new trends, constantly improving the position of enterprises in the

tradeschool.

- Along with the growth of the national economy, Kinh Do has gained not


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less successful, contributing to food and food processing industry of Ho Chi

Minh City in particular and the country in general a height moi.Tuy

However, Vietnam recently joined the World Trade Organization (WTO ),

the business environment will certainly have changed, if only based on the

advantages and previous business experience Kinh competition will not be

able to stand firm and continue to grow.

On the basis of analysis of the micro and macro environment the business

activities of Kinh to find out appropriate business strategy Kinh help

maintain position and continuously evolved into the corporate business

Vietnam's economic future

LIST OF REFERENCES

1.CP Vinabico

http://www.vinabico.com.vn

2. Hi Chu Candy Copany

http://www.haichau.com.vn

3. Bin Ho stock Copmany

http://bibica.com.vn

4.Kinh corporationwww.kinhdofood.com

5.http://www.vietnamfood.com.vn

6. Vietnam General Statistics Office

http://www.gso.gov.vn/default.aspx?tabid=387&idmid=3&ItemID=4679

7.Plan and invest in the growth of the confectionery industry

http://www.mpi.gov.vn/ttkt-xh.aspx?Lang=4&mabai=1415

8. Ministry of Finance

http://www.mof.gov.vn/Default.aspx?tabid=612&ItemID=38660

http://www.dpi.hochiminhcity.gov.vn/data/news/2003/7/143/chebienthucpham.htm

kinh do of report - copy

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