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Team 3 :

Le Nguyen Hung Son

Ngo Thi Le Nga

Nguyen Ngoc Phuc Loi

Tran Duy The Vu

Dang Phuoc Tho

KINH DO COMPANY IFE MATRIX


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VALUE CHAIN OF KINH DO


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PRIMARY ACTIVITIES

Inbound Logistics

Operations

Outbond Logistics

Marketing and Sales


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Inbound Logistics

Inbound Logistics includes two main activities:

o Purchasing activity: Must ensure every resource to

buy at the best price, quality assurance, source must

be stable and continuous, uninterrupted.

o Inventory and reserve activity: The storage and

preservation comply with the quality management

process. All kinds of materials used for the production

workshops are generally concentrated in raw

materials warehouse.


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Inbound Logistics

Strengthso Kinh Do is often dealing with large orders so Kinh Do has

strong negotiating power, and often buys goods at cheap

prices, good quality.

o Professional coordination between the departments and thecompany always has enough raw materials for production,

despite orders arising out of the plan.

Weaknesses

o The inspection of the amount of inventory is done well but

lacking in the report shows how the use of raw materials. Do

not handle this matter, the material should be damaged at a

later time.


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Operations

Mordern production lines: Kinh Do is currently

produced on mordern confectionery production lines in

VietNam, which has many lines of most mordern in AsiaPacific.

Specialization production lines: Machines are

100% new investment, each production line for each

product line is the optimal combination of modern

machinery originating from various countries.


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Operations

Strengths

o Modern production technology compared to the industry and

compared with other countries in the region.

o The key personnel in the R & D department has skilled and

long-term commitment to the company. This is a very

important factor in the development and preservation

technology secrets.

Weaknesseso Research activities to develop new products of R&D

department has not met the requirements of the company.

o Some machinery unused capacity.


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Outbond Logistics

Output: Output is concentrated in the company's finished

goods inventory, the inventory cycle is strictly managed

according to the number of days inventory. Average Kinh Dos

inventory is from 7 to 10 days.

Outbond Logistics stages: Kinh Do products are brought to

consumers through the following stages:

Product

StorageWarehouse

Distributor Agents Consumers


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Marketing and Sales

Product: Kinh Do products with breakthrough quality, are

improved, changed models frequently with at least 40 new products

each year.

Place: Nearly 200 distributors, 40 stores Kinh Barkery, more than

75,000 retail points with 1,000 sales staff across the country. This

distribution network is considered as one of many strong evaluation

system in the country, adapt to market fluctuations, consumes about

85% of company sales.
http://www.google.com.vn/url?url=http://www.vapartners.ca/part-time-sales-and-marketing-tips/&rct=j&frm=1&q=&esrc=s&sa=U&ei=2TNJVJ_2JOLSmgXEuIGgBA&ved=0CBoQ9QEwAw&usg=AFQjCNFyr9qIcxfVl9CaPOYucf25qjFkOw


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Marketing and Sales

Price:Many good incentive policies for customers and dealers. The

discount rate for distributors is quite high compared to competitors,

thereby expanding the distribution network of Kinh Do is quite easily.

Promotion:Advertising and marketing policy of the company is

done with the aim of ensuring the effectiveness of advertising, just to

keep advertising costs at a reasonable level so as not to increase the

cost.


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Marketing and Sales

Strengths

o Kinh Do brand supports well for products

o Be always a pioneer in the research and development of new

products

o Diverse sectors: Some strong sectors like Crackers (with brands

such as AFC, Marie, Cream), cookies (butter cake jam, moon cake),

waffles, fresh bakery,

o Strong and wide distribution system

o Competitive price (both domestic and export)


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Marketing and Sales

Strengths

o Price is suitable for many consumer segment

o Budget for promotional activities is quite large

o Creative ideas and experience to plan promotional programs

o Marketing team is young, dynamic, enthusiastic, highly qualified

and professional

o Having a good relationship with the authorities, suppliers


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Marketing and Sales

Weaknesses

o Many products but not brand planning for each sector

o Not to fulfill these key products, potential products to develop

several segments: Fresh bread, Crackers, waffles

o Some product loss but maintained, no remedial measures such as

candy, Cookies cake

o The product no different than competitors

o Packaging of the product less innovation, improvement


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Marketing and Sales

Weaknesses

o Two-way communication system between the marketing and

distribution system is limited

o Support advertising in retail outlets is not strong and

comprehensive

o No valuation research thoroughly before bringing products to

market

o Coordinate organization promotion between departments is not

high


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SUPPORT ACTIVITIES

Firm Infrastructure

Human Resource Management

Technology Development


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Firm Infrastructure

Plays an important role in the operation of the entire

value chain of Kinh Do.

Departments in the company are organized by function,

closely supported, and aims to develop the company.

Kinh Do have a clear organizational structure, which

make the decentralized management.


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Human Resource Management

Recruitment: The recruitment objectives of the company is to

attract qualified employees to work in order to meet the needs of

business expansion.

Training: Company focused in promoting the training and

retraining of professional qualifications as well as management level

employees. The training is done at the training center of Kinh Do.

Salary and bonus policy: Company built its own wage and

bonus policy consistent with the characteristics of business.


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Technology Development

Production technology investment is a strong competitive

advantage of Kinh Do. Thus, in the course of its development,

Kinh always interested to invest and innovate production

technologies.

Besides, the company is also interested in investing in the

development of information technology in management.

Currently, the company is conducting evaluation and selection

management software firms Oracle and SAP to invest.


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Organizational Culture

Kinh Do maintains the family atmosphere, intertwines,

employees are trained continuously, through so many

challenges from the vivid reality to mature, that stimulate the

passion and creativity .

Leaders must always keep up efforts to integrate, as such,

must learn from colleagues, to know the assignment, the

responsibility and authority, understanding and appreciation

of each person capacity.


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Main Competitive Advantage

Main competitive advantages Evidence

Largest distribution channel in Viet Nam

bakery industry. This factor has contributed to

create the competitive advantage about low

cost, the price of KDsproducts appropriate in

the domestic market.

In 2010 KDC successfully merged with north

Kinh Do and Ki Do to increase the bakery

market share to 28% (source: report analysis

of Kinh Do 2012)

Successful in marketing itself and building a

trademark.

According to ACNielsen, Kinh Do trademark

was ranked as the fourth out of 10 most

recognized brands in Viet Nam

The KDC also active in the field of real estate,

this factor help KDC that has a competitive

advantage compared to other competitors in the

choice of location to facilitate for the sale and

distribution of products.

KDC is now concentrating on 4 fields including

Food, Retail, Properties and Financial

Investment. Currently 90% of its revenue

comes from food production activity, real estate

activity has just started to bring considerable

revenue and profit since 2010.( source: FPT

securities)


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Main Competitive Advantage

Main competitive advantages Evidence

R & D is focused and develop to create

conditions for the research and

development of new products. This factorhas created a competitive advantage about

the variety of products in KDC.

KDC is now having a huge category of

over 500 products types covering all lines

of confectionary industry includingcrackers, cookies, moon cake, wafer, bun,

chocolate & sweet, ice-cream . Its

products target to all groups of customers

from children to young people, elders as

well as workers, pupils, officers,

homemakers(source: KDC and ACBs

research 2012).


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Main Competitive Advantages

Products 2010 2011 2012

Growth Growth Growth

Cakes 11% 40% 45%

Bread 11% 30% 40%

Cookies 18% 25% 31%

Cracker 10% 39% 80%

Moon

cake

30% 30% 31%

Bun &

cake

5% 20% 10%

Candy -36% 20% 15%

The bakery product are KD corp's most

important product line which account for

89% total revenue. As a market leader, Kinh

Do corp is holding significant market share

for all of its bakery product line.

specifically, the company is holding 31%,

80%, 31% and 40% shares of cookies,

cracker, moon cake, and bread markets

respectively. (Extract from annual report

of KDC) Source: KDC and ACBs

research 2012


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IFE MATRIX

No Factors Inportance(a) Weight(b)=a/a Rating(c) Evidencefor rating Weightedscore

(d)=(b)*(c)

Strengths

1 Strong

negotiating

power, and often

buys goods at

cheap prices,

good quality.

8 0.05 4 Decrease

from 5% to

7% per

orders from

suppliers.

0.20

2 Enough raw

materials forproduction,

despite orders

arising out of the

plan

5 0.03 3 Reserve

from 10%to 15% raw

materials.

0.09


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IFE MATRIX

No Factors Inportance(a) Weight(b)=a/a Rating(c) Evidence for rating Weightedscore

(d)=(b)*(c)

Strengths

3 Modern

productiontechnology

compared to the

industry and

compared with

other countries in

the region

9 0.05 4 Machines are 100%

new investment, arethe optimal

combination of

modern machinery

originating from

various countries

(France, Japan, )

0.20

4 The key personnel

in the R & D

department has

skilled and long-

term commitment

to the company

5 0.03 4 0.12


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IFE MATRIX


(d)=(b)*(c)

Strengths

5 Kinh Do brand

supports well forproducts

6 0.04 4 0.16

6 Be always a

pioneer in the

research and

development ofnew products

7 0.04 4 Average 40 new

products per year

has been

developed.

0.16

7 Strong and wide

distribution

system

9 0.05 4 260 distributors

and 40,000 retail

outlets across the

country

0.2


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IFE MATRIX


(d)=(b)*(c)

Strengths

8 Diverse sectors:

Some strong

sectors like

Crackers (with

brands such as

AFC, Marie,

Cream), cookies

(butter cakejam, moon

cake), waffles,

fresh bakery,

8 0.05 4 0.20


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IFE MATRIX


(d)=(b)*(c)

Strengths

9 Competitive price

(both domesticand export)

8 0.05 4 0.20

10 Price is suitable

for many

consumer

segment

9 0.05 4 Low, average and

high price for each

comsumer

segment

0.20

11 Budget for

promotional

activities is quite

large

8 0.05 4 Average 3% of

total cost

0.20


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IFE MATRIX

No Factors Inportance(a) Weight(b)=a/a Rating(c) Evidence forrating Weightedscore

(d)=(b)*(c)

Strengths

12 Creative ideas and

experience to plan

promotional

programs

7 0.04 4 0.16

13 Marketing team is

young, dynamic,

enthusiastic, highly

qualified andprofessional

9 0.05 4 Average age is

lower than 30

0.20

14 Having a good

relationship with

the authorities,

suppliers

7 0.04 4 0.16


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IFE MATRIX


(d)=(b)*(c)

Weaknesses

1 Lacking in the

report showshow the use of

raw materials.

7 0.04 2 0.08

2 Research

activities to

develop new

products of R&D

department has

not met the

requirements of

the company

6 0.04 1 0.04


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IFE MATRIX


(d)=(b)*(c)

Weaknesses

3 Some machinery

unused capacity

3 0.02 2 Crarcker production

line is used about

90% capacity

0.04

4 Many products but

not brand planning

for each sector

3 0.02 1 All of product has

Kinh Do brand

0.02

5 Not to fulfill these

key products,

potential products

to develop several

segments: Fresh

bread, Crackers,

waffles

6 0.04 2 0.08


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IFE MATRIX


(d)=(b)*(c)

Weaknesses

6 Some product loss

but maintained, no

remedial measures

such as candy,

Cookies cake

6 0.04 2 0.08

7 The product no

different than

competitors

5 0.03 1 The different

rate is less than

10%

0.03

8 Packaging of the

product less

innovation,

improvement

6 0.04 2 Average 2-3

years Kinh Do

improve the

packaging.

0.08


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IFE MATRIX


(d)=(b)*(c)

Weaknesses

9 Two-way

communication

system between

the marketing and

distribution

system is limited

4 0.02 1 0.02

10 Support

advertising inretail outlets is not

strong and

comprehensive

4 0.02 2 0.04


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IFE MATRIX


(d)=(b)*(c)

Weaknesses

11 No valuation

research

thoroughly

before bringing

products to

market

6 0.04 2 0.08

12 Coordinate

organizationpromotion

between

departments is

not high

7 0.04 1 0.04

TOTAL 168 1.00 3.08


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Conclusion

The most important weakness of the company is

family-managed culture, it limited the capacity of

promoting talent.

The greatest strength of Kinh Do is distribution system,

brand and financial strength.

Total important point of Kinh Do is 3.08, higher than

the average level (2.00), so Kinh Do has a strong

internal.


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References

www.kinhdo.vn

www.kinhdobakery.vn
http://www.kinhdo.vn/http://www.kinhdobakery.vn/http://www.kinhdobakery.vn/http://www.kinhdo.vn/


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