REPORT OF KINH DO

ORGANIZATIONS MANAGEMENT

NGUYEN DUY ANH KHOI CLASS: BABA7

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

I.History and Development

Kinh Do Corp is a forerunner of Contruct and Food Processing Kinh Do 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 bill VND. The company pruduct and trade on Snack and some new products for domestic customers. In 1994, the comany increas capital from 1,4 bill to 14 bill and buy process 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, Thuc Duc District and invest om process pruduct cookies cake with technology from Denmark to cost 5 mil USD and employees of company increase to 500s. In 1997 and 1998, company invested proccess of product bread to cost 1,2 mil USD with capacity 25 tons per day. In the last 1998, company bought proccess product choccolate with invesment capital is 800,000 USD. In 1999, company increased capital to 40 bil VND and established comercial center Savico Kinh Do in Dictrist 1, Ho Chi Minh City. And in that year, company started bakery systerm that was the fisrt to have store chain of Kinh Do business on cake and canndy from South to North after that. In 2000, company increased capital to 51 bil VND and extended factory to 40,000 square metter beside developed on multi product strategy. And in that year, company invested the chain for product crackers cake from Europe to cost 2 mil USD and that is the product cracker cake proccess largest in asian. In 2001, company bought a product candy chain proccess with capacity to 2 tons per hour to cost 2 mil USD. And in 2001, company increased capacity of product cracker products to 50 tons per day by increased the proccess cracker case to cost 3 mil USD. In Jan 5 2001, company got ISO 9002. And in that year, many products of company were exported USA, Frank, Canada, Germerny, Japan,... To get effective on management , on Sep 2002, Corporate Kinh Do was established with funtion product cake and candy to sell provines in South Viet Nam, Middle and to export. Corporate Kinh Do has capital 150 bil VND.

In 2002, to increased effective business and can intergrate with any countries in over the world, the quality management system follow ISO 9002 was replaced standard ISO 9001: 2000. In 2003, company bought proccess studious product chocolate to cost 1 mil USD. In 2005, company to issued 5,000,000 share and increased capital 250 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 increased capital to 469,996,650,000 VND. In 2008, company issued 10,115,221 bonus share to shareholders increase capital to 571,158,760,000 VND. In Jun 2010, company issued 20,047,879 bonus share to shareholders 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 an emphasis on food production, including baked goods, snack and soft drink. The corporate group also includes companies in the field of finacial services, real estate and a retail bakery chain. Kinh Do corporate manages a wide variety of brand names, distributes imported brand name snack and candy googs, 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 providing products and services which immediately realize the need and desires for Living Fine. Applying our dynamism, creativity, foresight and other core valude, we create products and services which delivery consumers what they want and make us all proud. People trust Kinh Do companies, products and services so much they rely on them for Fine Living every day. Kinh Do generates bonus personal, economic and commercial valude and pricde for staff, partners and stakeholders.

Goals: become both Vietnam;s and the Asia Pacific regions leading company 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: info@kinhdo.vn Webside: www.kinhdo.vn

III.

Organization structure
Members in system of corporate.

A. Organization structure of Kinh Do Corp.

Num Company name 1 Kinh Do Corpotare Capital: 1,012,765,800,000 VND 2 Ki Do Coporate Capital: 69,000,000,000 VND 3 Kinh Do Binh Duong Coporate Capital: 100,000,000,000 VND 4 VINANICO Corporate Capital: 90,000,000,000 VND 5 TN AN PHC Corporate Capital: 500,000,000,000 VND

Address 141, Nguyen Du, Dictrict 1, Hochiminh city Cu Chi North Industrial Park, Cu Chi district, Hochiminh city Viet Nam- Singapore Industrial Park, Binh Duong provine 436 N Trang Long, Bnh Thnh Dictrict, Ho chi minh city 6/134, 13 hight way, Thu Duc Dictrict, Ho Chi Minh City

Figure1: Kinh Do Organization Systerm Diagram

KINH DO BINH DUONG INCORPORATED COMPANY (80%) KIDO INCORPORATED COMPANY (28,3%) KINH DO CORPORATION VINABICO INCORPORATED COMPANY (51,2%) TAN AN PHUOC LIMITED COMPANY (49%)

Figure 2: Organization structure:

BOARD OF DIRECTORS

BOARD OF MANAGERS

MANAGERS' OFFICE Legal department Invest department Strategy department PR department Internal Auditing

SBU

TURNOVER DEPARTMENT Sales Marketing R&D

COST DEPARTMENT Production Purchasing Logisitc

ASS ISTANCE DEPARTMENT Accounting Staff IT Training

COOKIES

CRACKER

SNACK

CAKES

BUNS

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CANDIES

B. Managemenr level:
. Charman . CEO . Dicrectors . Marketing Manager . HR Manager . Customer Development Manager

.Supervisor .Controllers

There are 3 levels on the management, in top is the top-level, and next is middle-level and the last is suppervisory-level. The top management perform strategic plainning and the other two levels provide support in the form of proccessed information. This levl develops 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. This level develops the strategy for deciding the objectives of the organization, plainning recources to be use in order to attain those objectives, formulating polices to govern, use and disposition of the resources. The suppervisors level is invloved in day-to-day operation control and needs information for it working. It is the proccess of ensuring that operational activities are carried out to achieve optimum use of recources. It make use of pre-established procedures and decision rule.

IV.

Business activites.

A. Main product groups of company Now, company are producting 7 product groups: cookies cake, crackers cake, snack cake, moon cake, bread, candy and chocolate. 1. Cookies cake The element of cookies case include sugar, egg, and flour. With capacity to 843 tons per month, the cookies cake of Kinh Do gain 45% domestic market share and that is the traditional product. The cookies 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 cake Cracker cake is the product be processed from flour to ferment. That is the product has biggest to consume of company, with capacity to 1,484 tons per month. Due to about advantage technological, now Kinh Do is the producer largest on product cracker cake in Viet Nam. With main brain name AFC, cracker of Kinh Do hold 55% market share. Cracker cake be sold lot of domestic 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 14 flavors different of many different cake such as Love Rolls, Fest, Sera Sera,... 4. Snack Snack is a first products of Kinh Do, that product be applied high technology of Japan from 1994. Snack has many types with 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. Bread Packing bread is a read be producted and packing on high technology process have use dat from 7 to 9 days. That product can be used for handy breakfast. Now Aloha bread of Kinh Do is a head product on bread market in Viet Nam. Because of products quality and suitable price and handy ( easy to find and store). Beside the break, Kinh Do also has sponge cake with long day for use and good material such as wheat flour, chicken egg and cream. Sponge cake is a product main contribute on sale and profit of company. 6. Moon cake Moon cake is a product has season character, however it has big sales on total sales of company ( 15%). The output of moon cake has speed develop very high: in 1999 is 150 tons, in 2009 is 1,600 tons, it mean from 1999 to 2009 the output increase 967%. In 2009, company producted over 60 types of moon cake. Now Kinh Do, Duc Phat, Hy Lam Mon, Bibica are big producer in Viet Nam, and Kinh Do is leading number one. 7. Candy Kinh Do has two candy segment are Crundy and Milkandy. Crundy- is a combine fruit taste and Milkandy is a mixing of milk make to interesting for customer. 8. Chocolate Company product chocolate follow ball type such as stuffing snack, grapes, peanut,... are been producted on high technology, chocolate of Kinh Do have stable quality with good design.

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

Item Cost (bucket) Cookies Cracker Snack Bun&cakes Candy Others Total 8,939,894 2,194,922 1,289,042 7,113,721 255,753 19,793,332 2008 2009 9m of first 2010 Density Cost( Density Cost( Density bucket) bucket) 45,20% 10,204,640 53,90% 11,265,954 64,60% 11,10% 2,170,897 11,50% 1,531,145 8.8% 6,60% 639,203 3,40% 617,368 3.5% 6,50% 5,756,496 30,40% 3,890,504 22.3% 35.9% 151,089 0.8% 41,402 0.2% 0% 0% 84,178 0.5% 100% 18,922,325 100% 17,430,551 100%

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

Item

2008 Cost (mil vnd) 379,046 281,221 97,348 557,039 46,141 63,653 1,424,447

Density 26.6% 19,70% 6.8% 39.1% 3.2% 4.5% 100%

2009 9m of first 2010 Cost( mil vnd) Density Cost(mil vnd) Density 450,533 307,242 68,45 578,651 29,626 59,741 1,503,242 30,00% 20.4% 4.6% 39.1% 2% 4% 100% 456,541 229,576 71,416 473,104 10,874 79,872 1,321,330 34,50% 17.4% 5.4 35.8% 0.8% 0.6% 100%

Cookies Cracker Snack Bun&cakes Candy Others Total

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

Some pictures of Kinh Dos product:

C. To assess result of business The result of Kinh Do can say that is active while difficult on economic. The market share of every product are increase. Income before 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

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

4% 4%
11% 29%

13%

17%

22%

2. Develop on business:
Firgure 4: Incom index from 2005 2010
2500

2000

1500 Net revenue 1000 Profit after taxes bil vnd

500

2005

2006

2007

2008

2009

2010

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V.Material and cost. A. Material Main material be used in produce cake dry are wheal flour, suggar, egg, milk, cooking oil, shotening butter and other flavors,.. Main marerial be used in produce moon cake are: Chinna wheal flour, suggar, duck eggs, water coconut, tea, green gram,... 1. The resources material Some basic material such as suggar, egg, flour are be bought in domestic. And some material such as milk, material to produce chocolate,... 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 Chi Minh city, so that the available material always can supply to Kinh Do and the transaction cost is not so much. Egg and milk are the product from chickens and cows, they are produce with big size in Viet Nam market. And years ago, cause to dosmestic demand increased so that the farm and enterpsire 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 Binh Dong company, Wheal flour Technology Viet Nam Copmany,.. B. Produce cost Company controlls produce cost by on controll process produce. The proccess produce of Kinh Do are designed clearly, close , synchronous, so that company can sure the proccess can run right from start to find out mistake. Every months, 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 modern lines the Asia Pacific region.whole machinery of the company is equipped with a new 100%, each production line each product line is a fear of the optimal combination of modern machinery and equipment from many different countries.
Design capacity of the production line

Production line Cookies Moon cake Crackers Waffle Cakes Buns Snacks Chocolate Candy

Capacity (tons/mon) 843 1,485 1,484 345 1,172 2,331 780 325 354

Technology and line produce of Crackers

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But the packaging is special product line Crackers Kinh Do not invest now packing machine, packaging is still done by hand.The company is planning to invest automatic packaging line in the future.

Department paking of Crackers

VII. Management quality. 1. Systerm are applying: Companies are applying the quality management system ISO 9001: 2000 by the BVQI certification of the United Kingdom 10/2002. ISO 9001:2000 quality management system is strictly company. From 2002 to now, the company has held BVIQ conducted reassessment of the quality management system of the company 16 times (in cycles 6 months 1 times) with good results. 2. Checking quality department Check the quality of products made by management department to ensure quality control (Q & A) and research and development (R & D). 3. Food safety Food safety is a matter very focused company, sees this as one of the criteria to make the product competitive local Kinh Do. Ensuring food safety is taken continuously from raw materials to the stage of very strong sales as follows:

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For raw materials: The company always updates the health provisions of Vietnam and other countries in the export market of the company to control the amount of additives used in products that do not cause any impact on human health Using raw materials imported from the vendor brand and reputation. Closely examine inputs of quality, hygiene, status In the production process Set strict rules of hygiene in the production process. The workers in direct contact with the product are equipped with the knowledge of food hygiene and safety, all and all wearing gloves, a mask, hooded. Production tools and material contained regular cleaning and periodic regimes 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 to the central laboratory analysis services science and technology in Ho Chi Minh City analysts.

Line produce Crackers

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For products: Components are packaged in sealed packaging, hygiene To guide the company sales staff and distributors storage, display products according to the requirements of each product to avoid product damage The company encourages consumers to change, return the product if the product is damaged signs.

VIII. Distribution System.

Kinh Do to the distribution of products primarily through sales channels of communication (GT).Besides, Kinh Do also focuses on diversification of distribution channels in the distribution via various channels such as supermarkets, bakery systems, service, channel, schools, entertainment, ... System agents and distributors: confectionery company is now have the largest dealer network in the country with about 200 distributors and 75,000 retail locations and over 1,000 sales staff across the country, this systemconsumes about 72% of the company's sales. Supermarkets: the company's products have become familiar items in almost all supermarkets in major cities throughout the country, mainly in Ho Chi Minh City and Hanoi.Revenue from the 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 large stores on the main street of Ho Chi Minh City and Hanoi.Distribution system has strong growth prospects not only in Ho Chi Minh City and Hanoi, but also in other locations due to the deployment of the franchise business model has been applied.

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Firgure 5: Distribution system of Kinh Do

KINH DO

AGENT DISTRIBUTION

AGENT WHOLESALE

SUPERMARKET

AGENT RETAIL

CUSTOMER

IX.Competition
Competitive 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 Snacks cakes Cracker cakes Moon cakes Cookies cakes Bread candy Competitors Pesi(Poca), URC(Jack&Jill), Bibica, Hai Ha,.. Hai Ha Duc Phat, Nhu Lan, Hy Lam Mon, Bibica Hai Ha Pham Nguyen( Solite) 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
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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 at budget 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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Sales of some companies in 2009 ( bil vnd)

1800 1600 1400

1200 1000
800 600 400 200 0 KDC Huu Nghi NKD Bibica Hai Ha

Sales of some companies in 2009 ( bil vnd)

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 largest corporations): Filesize candy Vietnam about 156 millions USD in 2015 According to the research results of the Ministry of Planning and Investment, 2005

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Year
Level expense/year on buying candy Population (mil) Quantity of market

2000

2001

2002

2003

2004

2005

2006

2007

2015 (forecast) 96,525

25,623

28,134

33,258

37,589

42,185

46,215

48,987

52,462

77,635

78,685

79,727

80,902

82,031

83,119

84,366

85,632

96,464

1,989

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 or investment 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.The company 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 always improving 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 a significant 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 corporation www.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/chebienthuc pham.htm

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