2.2.

IFAS (Internal Factors Analysis Summary)

IFAS analyzes the factors and forces of the internal environment of the enterprise
to identify and evaluate the important strengths and weaknesses in the functional
business parts of the enterprise, which can use the integrated assessment model
of internal factors (IFAS).

Steps to build IFAS model:

1. Identify and list 10 to 20 factors that are fundamental strengths/weaknesses
that play a decisive role in the success of the business.
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to
each factor. The weight assigned to a given factor indicates the relative
importance of the factor to be successful in the firm's industry. Regardless of
whether a key factor is an internal strength or weakness, factors considered to
have the greatest effect on organizational performance should be assigned the
highest weights. The sum of all weights must equal 1.0.
3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents
a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength
(rating = 3), or a major strength (rating = 4). Note that strengths must receive a 3
or 4 rating and weaknesses must receive a 1 or 2 rating. Ratings are thus
company-based, whereas the weights in step 2 are industry-based.
4. Multiply each factor's weight by its rating to determine a weighted score for
each variable.
5. Sum the weighted scores for each variable to determine the total weighted
score for the organization.

Internal factor Weight Rating Weighted Rating rationale

 score

Strength

With more than 40 years of

establishment and growth, the
Vinamilk milk brand is gradually
asserting its position as
Vietnam's number one fresh
milk brand, with fresh milk
products that are not only
trusted by home consumers but
also exported to domestic
markets. export to the most
competitive international
markets.

With a market share of 37

1. Strong brand 0.2 4 0.8
percent, it is Vietnam's largest
dairy company, with 45 percent
of the liquid milk market, 85
percent of the condensed milk
market, and 85 percent of the
yogurt industry. As a result,
Vinamilk has the power to
decide the domestic selling
price.

From 1995 through 2009,

consumers chose Vinamilk as
one of the "Top 10 High Quality
Vietnamese Goods."

2. Product 0.1 3.5 0.35 Many prominent dairy products

quality are available in Vietnam: Ong
Tho condensed milk, Sao,
Dielac, Yogurt Vinamilk...
 It has the greatest market share
in Vietnam among suppliers of
comparable items, with high
quality products at cheaper
prices than imported products
of the same sort.

A wide range of items to appeal

to a wide range of audiences.
With pricing that are
appropriate for each area of the
market. The "Ong Tho and Star"
condensed milk product line, in
particular, is a low-cost option
that meets the requirements
and preferences of the majority
of Vietnamese people today.

3. Wide 0.1 4 0.4 Vinamilk's dairy product

distribution distribution network, which
network includes both contemporary
and traditional distribution
channels, reaches across the
country and exports to
international markets.

Vinamilk currently has a

countrywide distribution
network that spans 64
provinces and includes more
than 250 distributors and
135,000 retail locations.

Vinamilk increased its stake in

GTNFoods to 75% in 2019,
giving it an indirect 51% stake in
Moc Chau Milk.
 This role not only broadens
Vinamilk's dairy market
environment, but it is also
viewed as a strategic move for
the company's development,
given that the industry's largest
dairy firm is slowing down.

To apply to the production line,

all of Vinamilk's dairy plants
have invested in contemporary
4. Invest in and innovative technology
modern, acquired from European nations
high-quality such as Germany, Italy, and
0.03 3.5 0.105
equipment Switzerland. Vinamilk is the only
and firm in Vietnam with a spray
technology drying technique created by
Niro of Denmark, assuring
consumers receive high-quality
dairy products.

5. Quality 0.05 3 0.15 The firm invests in the

natural milk construction of organic dairy
source, farms that meet worldwide
international standards, assisting dairy
standard farmers in making informed
farm decisions regarding input
materials. In addition, the
corporation has a project in
New Zealand to grow dairy
cows (the country that exports
the most raw milk to the
Vietnamese market).

Vinamilk's milk factories are

 strategically positioned near the
farm, allowing the company to
not only retain and deepen
connections with suppliers, but
also to secure the acquisition of
fresh, high-quality milk.
Vinamilk consumes more than
half of the country's raw raw
milk output, and it's a business
that can navigate the
Vietnamese market's milk
pricing.

Vinamilk attaches great

importance to market research
and understanding user tastes,
as well as sales activities of
6. Methodical distributors, listening to
and consumer feedback in many
professional 0.02 3 0.06 aspects, making good use of the
marketing media.
strategy Social network to make a brand
and thanks to that, Vinamilk
provides the best and most
suitable dairy products to
consumers slowing down.

7. Financial 0.1 4 0.4 While many firms are struggling

strength due to high loan interest rates,
Vinamilk has a relatively solid
capital structure and strong
financial independence. In
addition, the company's
financial capital is improved and
expanded as a result of the
indirect acquisition of Moc Chau
milk.
 The consolidated financial
statements of Vietnam Dairy
Products Joint Stock Company
Vinamilk for the third quarter of
2019 have been released, with
both revenue and profit targets
increasing, with a net profit of
nearly 8,380 billion dong in the
first nine months, meeting 80
percent of the year plan.
According to Kantar Worldpanel
statistics, milk and dairy
products remained the leading
FMCG category in the second
quarter of 2019, with strong
growth. In addition, owing to
ASEAN's expansion, the export
segment rose as well. In
September 2019, Vinamilk also
officially exported to the
potential market of China and
received many positive
feedbacks.

Weakness

1. Lacking 0.1 1 0.1 Because of the growing demand

control over for fresh milk among
raw material consumers, indigenous raw
sources resources only cover around
30% of production demands,
with the remaining 70%
imported from New Zealand,
the United States, the European
Union, and Japan. As a result,
input costs rise, and product
 prices rise as well. Vinamilk, on
the other hand, is pushing the
development of raw material
areas in order to meet the
growing demands of the
domestic population.

Vinamilk milk no longer has a

monopolistic position in the
dairy market due to increased
customer expectations and
2. The market competition from international
share of milk brands imported from the
powdered 0.3 2 0.6 United Kingdom, the United
milk is not States, and the Netherlands.
high According to a survey, imported
milk accounted for 65 % of the
Vietnamese market, Vinamilk
for 16 %, and Dutch Lady for
20%.

Overall 1.0 2.965

Vinamilk responds effectively to the company's organization and internal

control, as seen by its overall score of 2.965.