ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 49: Sales Management (5031)

Submission date 10th December, 2023 Date Received 1st submission 10th December, 2023

Re-submission Date Date Received 2nd submission

Student names & codes Final scores Signatures

1. Nguyen Anh Thu Thu

Group number: 2. Tran Thi Ngoc Hien Hien

3. Nguyen Phuong Vy Vy

4. Le Trung Thuan Thuan

Class BA05201 Assessor name Trinh Hoang Kim Phuong

Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is
a form of malpractice.

P6 M4 D2
 OBSERVATION RECORD
Student 1 Nguyen Anh Thu– BS00024

Description of activity undertaken

- Introduction (100%)
- Create investment portfolio
- Apply the portfolio Review Meeting tool to Masan's portfolio creation process
- Conclusion (100%)

Assessment & grading criteria

- Develop a portfolio management process that supports sales growth and profitability to maximise revenue for
an organisation (P6)

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor
name:
Student 2 Tran Thi Ngoc Hien –BS00105

Description of activity undertaken

- Prepare a list of Masan's investment portfolio

- Performance reviews to track portfolio progress
- Use Multiple-Criteria Weighted Ranking to evaluate performance for Masan

Assessment & grading criteria

- Develop a portfolio management process that supports sales growth and profitability to maximise revenue for
an organisation (P6)

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor
name:
Student 3 Le Trung Thuan - BS0007

Description of activity undertaken

- Develop strategic goals for Masan

- Apply roadmap and give examples of SWOT for Masan in setting goals

Assessment & grading criteria

- Develop a portfolio management process that supports sales growth and profitability to maximise revenue for
an organisation (P6)

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor
name:
Student 4 Nguyen Phuong Vy – BS00042

Description of activity undertaken

- Risk management and continuous improvement in the process of implementing investment

portfolios
- Use capability and capacity analysis to manage risks for Masan

Assessment & grading criteria

- Develop a portfolio management process that supports sales growth and profitability to maximise revenue for
an organisation (P6)

How the activity meets the requirements of the criteria

Student
Date:
signature:

Assessor
Date:
signature:

Assessor
name:
 Summative Feedback:  Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

 Table of Contents
Introduction...................................................................................................................................................................................8
1. Develop strategic goals........................................................................................................................................................... 10
1.1. SWOT Analysis.............................................................................................................................................................. 10
1.2. Strategy development.................................................................................................................................................. 12
2. Create a portfolio of investments...........................................................................................................................................14
2.1. Portfolio Review Meeting.............................................................................................................................................15
2.2. Example about Masan..................................................................................................................................................18
3. Performance assessment........................................................................................................................................................ 19
3.1. Actions to be taken during the phase.......................................................................................................................... 19
3.2. Use Multiple-criteria Weighted Ranking tools.............................................................................................................21
4. Risk management and continuous improvement..................................................................................................................22
4.1. Overall assessment of the business environment....................................................................................................... 23
4.2. Use capability and capacity analysis............................................................................................................................ 25
Conclusion....................................................................................................................................................................................28
Reference.....................................................................................................................................................................................29
Introduction
As per portfolio definition, it is a collection of a wide range of assets that are owned by investors. The
said collection of financial assets may also be valuables ranging from gold, stocks, funds, derivatives,
property, cash equivalents, bonds, etc. Individuals put their money into such assets to generate
revenue while ensuring that the original equity of the asset or capital does not erode.

Depending on one's know-how of the investment market, individuals may either manage their portfolio
or seek the assistance of professional financial advisors for the same. As per financial experts,
diversification is a vital concept in portfolio management.

Masan is a leading multi-industry corporation in Vietnam, operating in the fields of consumption, retail,
technology, finance and agriculture. Masan was founded in 1993 by Mr. Nguyen Dang Quang. The
group has had a rapid development over the years, becoming one of the largest corporations in
Vietnam. Masan's business scale is currently very large, with revenue in 2022 reaching 76,189 billion
VND (Anh, 2023). The group has more than 40,000 employees and operates in more than 20 provinces
and cities across the country (Anh, 2023). Is the leading corporation in Vietnam in terms of revenue,
profit and brand. Owns many famous brands in the fields of consumption, retail, technology, finance
and agriculture. Has a wide distribution network throughout Vietnam, including supermarkets,
convenience stores, grocery stores and online retail channels. Investing in new technology areas, such
as electronic payments, e-commerce and distribution. Masan is continuing to expand its investment
portfolio and develop new business areas to become a leading corporation in Vietnam and the region.
With investments in consumer products, MEATLife, technology materials, consumer retail, ... Masan's
shares are listed on the Ho Chi Minh City Stock Exchange (HOSE) and the Hong Kong Stock Exchange.
Kong (HKEX). Masan is one of the enterprises ranked by Forbes Vietnam in the list of 50 largest
enterprises in Vietnam.

Masan's vision is to become the leading corporation in Vietnam in terms of revenue, profit and brand,
meeting the essential needs of 100 million Vietnamese consumers.

Masan's mission is to bring better products and services to Vietnamese consumers, helping them spend
less on daily necessities.

For Masan, a multi-industry group operating in many different industries, effective portfolio
management is crucial to maximize revenue and achieve sustainable growth.

Effective portfolio management plays a key role in Masan's ability to maximize revenue and achieve its
strategic objectives. By carefully selecting, evaluating and monitoring its investments, Masan can
improve financial performance, create value for shareholders and position itself as a leading company
in the Vietnamese market.

Investment revenue in industry groups and the following businesses

Investment Revenue Profit Cost %Profit/Revenue %Profit/Cost

Consumer 28,103,489 10,903,130 2,414,949 39% 451%
products
MEATLife 4,784,571 321,879 1,087,474 7% 30%
Technological 15,549,548 2,376,906 3,148,193 15% 76%
materials
Consumer 29,374,928 6,507,907 2,214,881 22% 294%
retail

With such complexity, it is necessary to manage a portfolio, so my team proposes a portfolio

management process for Masan as follows:
1. Develop strategic goals
In the process of building strategic goals for Masan, to build these goals, several tools and techniques
can be used including PESTEL analysis, SWOT analysis, or Stakeholder analysis. Our team decided to
choose SWOT analysis, performing a detailed SWOT analysis to plan activities is a key factor, in helping
to grasp opportunities and challenges, as well as understand the direction and progress. Implement
strategic goals systematically and effectively.

1.1. SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats are the four components of the SWOT model,
which is frequently applied in business plan analysis. The purpose of the SWOT matrix is to graphically
display information regarding opportunities, challenges, strengths, and weaknesses in a real-world
setting. A business's strengths and dangers are considerations. These are the traits that provide an
organization or corporation relative advantages (or equivalent drawbacks) over rivals. Opportunities
and challenges, on the other hand, come from outside sources. Opportunities are aspects of the
outside world that a company can take advantage of to boost performance, such as increasing sales or
increasing profit margins. The competitive advantage of a corporation might be threatened by
challenges. (Nguyen Do, 2020).

Masan's strategic goal is to become a leading consumer goods group in the region, with a leading
position in key product industries.

Masan's 2023 goal has a Roadmap. This Roadmap was announced in January 2023, including specific
goals and priorities for each pillar of the "Growing with Vietnam" strategy. The overall goal of Masan's
Roadmap 2023 is to achieve revenue of VND 100,000 billion. To achieve this goal, Masan sets specific
goals for each pillar as follows:

Branded consumption: The revenue target is VND 45,000 billion, an increase of 15% compared to 2022.
Masan focuses on developing essential consumer goods brands with high quality, reasonable prices,
and customer satisfaction. needs of Vietnamese consumers.

Modern retail: The revenue target is 30,000 billion VND, an increase of 20% compared to 2022. Masan
promotes the expansion of modern retail systems, including the VinMart supermarket chain, VinMart+
convenience stores, and chain stores. specializes in WinMart,...
Consumer finance: The revenue target is 25,000 billion VND, an increase of 25% compared to 2022.
Masan develops consumer finance products, providing financial solutions for Vietnamese consumers.
(masangroup, 2023).

Below is Masan's SWOT analysis

Strengths

The staff has good knowledge of the domestic market and a lot of experience in the international
market with foreign partners. Masan Consumer focuses on investing in building strong brands, thanks
to which many brands quickly achieve leading market shares in the spice, convenience food, and coffee
industries. Extensive distribution and agent system: Masan Consumer owns an extensive distribution
channel system. The company's distribution network is very strong, sales points are spread throughout
64 provinces and cities. The company has unique marketing activities, multimedia communications,
and promotional campaigns, so brand recognition is very high. The company owns the most modern
Product Research and Development Center (MRD - Masan Research & Development Center) in Vietnam.
"Closed" production process, strict management, promoting the development of consumer products,
and diversifying product types. The company's products have been chosen by many consumers. Many
products such as Chinsu fish sauce or Omachi instant noodles are suitable for the consumption needs
of Vietnamese people. Strict management, "closed" production process, encouraging the creation of
consumer products and offering many diverse products. Many customers have chosen the company's
products. Many products, including Omachi instant noodles or Chinsu fish sauce, are suitable for the
needs of Vietnamese consumers.

Weakness

Exceeded budget for product development and promotion costs. There was poor management and pay
for staff and key management teams. Currently, most raw materials are imported from abroad, causing
production costs to increase. The company's plans were significantly impacted by its inability to quickly
adjust to unforeseen changes in the sector or the state of the economy.

Opportunities

Masan Company can raise money from various sources in the financial sector because it is a
respectable joint stock company. Vietnamese companies currently enjoy preferential export policies
due to Vietnam's WTO membership, helping to enhance their international expansion capacity. Exports
of consumer goods to foreign markets are encouraged by state programs, which are driving demand
for them. There is a high demand for packaged food products to maintain food safety and nutrition due
to economic recovery and rising incomes. Faced with the current situation, the State is promoting the
movement "Vietnamese people prioritize using Vietnamese goods". The goal of this campaign is to
increase the proportion of the domestic market consumed by goods and services produced in Vietnam,
thereby encouraging sustainable market growth.

Threats

Recently, the COVID-19 epidemic has become complicated, disrupting costs and production. The
impact of the pandemic also delayed the company's intention to introduce new products. The use of
foreign-branded products is increasingly popular, and the State's open-door policy creates easier
conditions for foreign companies to launch a fierce attack on the domestic market. Customers have
increased their expectations as their income has increased. This makes it difficult for manufacturers to
change products and maintain competitive prices, quality, and product status. Competitive prices in the
field of import and export. As more potential competitors and important international brands enter the
market, competitive pressure to attract workers will appear. Inflation and exchange rates between the
Vietnamese dong and other foreign currencies often increase, increasing the cost of importing raw
goods used for production.

1.2. Strategy development

In a rapidly moving and challenging market context, building strategic goals for Masan is not only an
important step but also the key to shaping its future and maximizing its growth potential enterprise.

Strengthen Supply and Partners

To ensure a stable supply of raw resources at a reasonable level, Masan can invest in industries that
use them such as forestry, fishery, and agriculture. To ensure the quality of raw materials and services,
Masan can cooperate with reliable domestic and foreign suppliers. Masan must establish long-term
relationships of trust and mutually beneficial cooperation with its suppliers. Masan must cooperate
with merchants and distributors to grow its business and attract more customers. Cooperation with
global companies: Masan can cooperate with global companies to increase market share and access
new markets. Masan can cooperate with technology companies to use new technology in production
and business, increase operational efficiency, and cut costs.

Diversify products and markets

With new items, Masan will be able to reach consumers who have never used its products. Masan will
be able to develop new product lines and increase revenue from existing product lines with the support
of new items. By expanding its product line, Masan can minimize risks in the event a specific industry
faces challenges. Masan will be able to expand into new product lines and boost sales of existing
products thanks to this new market. Because new markets often have more expansion opportunities
than mature markets, Masan can increase earnings.

Invest in research and development

R&D supports Masan in creating innovative products that meet growing customer demands for
convenience, taste, and quality. This way, Masan will be able to attract more customers and increase
sales. R&D helps Masan become more competitive, meet international standards, and improve current
product quality. Masan's income and revenue will increase thanks to this. Support Masan in discovering
new, more efficient production techniques to reduce costs and increase revenue.

Optimize price and quality strategy

Masan must build a strategy to compete in price and quality, meet customer needs, and outperform
competitors in the industry. To maintain market share and increase earnings, Masan's pricing approach
must outperform industry competitors. To maximize profits, Masan must ensure its pricing plan is
successful. Masan's quality plan must ensure that the company's goods meet customer needs for
convenience, taste, and quality. To preserve market share and increase earnings, Masan's quality
strategy must outperform its industry competitors.

Strengthen outreach and advertising strategies

To reach more people and increase sales, Masan needed to develop an effective outreach and
advertising plan. Masan's outreach plan must take into account the needs of consumers in all regions,
including border areas, rural areas, and cities. Masan's approach to public relations must be on par
with its competitors industry competitors, supporting Masan in expanding its customer base.
Accurately identifying Masan's target consumers is essential in its advertising method. Masan's
marketing must leave a lasting impression and attract consumer interest. The goal of Masan's
marketing approach is to entice people to buy its products.

2. Create a portfolio of investments

Masan's portfolio execution is in portfolio management step 2 because it is an important step in the
portfolio management process. This step was created to monitor plan implementation progress,
evaluate member company performance, and immediately alter the investment portfolio as needed.
Portfolio Construction is the first step in portfolio management, in which Masan will set strategic goals,
examine the external and internal environment, evaluate investment opportunities, and pick suitable
investments.

Masan will manage the implementation of the investment portfolio, which includes the following
activities:

Monitoring the implementation of the plan: Masan often reviews the progress of each member
company's investment strategy, covering targets such as sales, profit, market share, and so on. Targets
this is compared to the plan to assess implementation effectiveness and make needed changes as soon
as possible. Masan can grasp the operating situation of its members and quickly find problems that
need to be fixed by monitoring the progress of plan implementation. It assists Masan in ensuring that
member businesses are on the correct track and meeting goals.

Evaluating member business performance: Masan evaluates member businesses using financial and
non-financial variables. Revenue, profit, cash flow, and other economic indicators are examples.
Market share, brand recognition, and other non-financial measures are examples. The outcomes of
performance evaluations are utilized to determine investment and investment decisions. Masan can
identify member firms with good performance and members that need to improve performance by
reviewing member business results, which allows Masan to increase revenue and create value for
shareholders.

Masan keeps track of the market condition and the actions of its member businesses to rapidly change
its investment portfolio. Acquisitions, mergers, and new investments are examples of decisions to
change the investment portfolio. Masan can ensure that the portfolio is balanced by making portfolio
changes. Its investment is in line with the group's overall growth strategy and matches market
demands. Managing the performance of Masan's portfolio is a continuous task that must be carried out
carefully. Masan can ensure that its investments are on track and that its strategic goals are met by
carrying out the tasks listed above.

Example:

In 2022, Masan acquired Vinacafé Bien Hoa Joint Stock Company. After the acquisition, Masan made
several changes to improve Vinacafe Bien Hoa's operating efficiency, including:

Invest more in production infrastructure, improve product quality, expand distribution markets,...
Strengthen marketing and brand promotion activities. Thanks to these changes, Vinacafe Bien Hoa's
revenue and profit will grow strongly in 2022. Thus, managing the implementation of Masan's
investment portfolio is an important factor that helps the group maximize revenue conversion.

2.1. Portfolio Review Meeting

The process of implementing portfolios can be done using tools like Portfolio Review Meeting, Portfolio
Management System, Quantitative and Qualitative Analysis... But in this step, my team chooses the
Review Meeting tool to apply to portfolio implementation. The project portfolio meeting is an ongoing
event that addresses all projects in the general multi-project context. Meetings allow participants to
make important decisions that help improve project management.

This tool can be applied to Masan's 'Portfolio Implementation' Step according to the following steps:

Step 1: Create an agenda.

The agenda for the portfolio review meeting should contain an overview of the economic and industry
conditions, which is required to comprehend the macroeconomic and industry environment that can
affect investment portfolio performance. Furthermore, while evaluating the success of investment
portfolios, this information should compare the performance of investment portfolios to the stated
goals as well as on other portfolios in the same industry. Following that is knowing opportunities and
problems for investment portfolios, which assists investors in identifying opportunities and challenges
that may affect the future performance of investment portfolios. Finally, it is vital to give advice on
changing investment portfolios to increase productivity.

Step 2: Put together information and data

Before the meeting, gather the facts and information needed to assess the performance of investment
portfolios, such as financial reports, business activity reports, and market analysis reports.

Step 3: Hold the meeting.

Portfolio Evaluation Meetings must be held on a regular basis, usually quarterly or annually, and must
be coordinated by a group of investing specialists. Speakers will discuss the performance of investment
portfolios at the meeting, with the conversation topic based on prepared statistics and information.

Step 4: Monitor and implement

After the meeting, it is necessary to monitor the implementation of the meeting's recommendations. If
necessary, adjustments should be made to the investment portfolio.

Masan is a multi-industry corporation, operating in many different fields. Portfolio Review Meeting can
be applied to Masan to evaluate the performance of business lines, subsidiaries, and financial
investment portfolios. To evaluate the performance of the food industry, the Portfolio Review Meeting
may focus on the following contents:

 Compare the revenue and profit of the food industry with previous years

 Compare the revenue and profit of the food industry with the set goals

 Identify opportunities and challenges for the food industry

 Make recommendations on adjusting the food industry's strategy

 Through the application of the Portfolio Review Meeting, Masan can ensure that its portfolios are
implemented effectively and achieve their set goals.

Portfolio Review Meeting requires the participation of members related to the portfolio being
evaluated. The participation of these members will help ensure the meeting is conducted effectively
and that the decisions made are appropriate. Before organizing a Portfolio Review Meeting, it is
necessary to carefully prepare the necessary information and data that will help the meeting proceed
smoothly and the decisions made be accurate. Decisions made at the Portfolio Review Meeting need to
be agreed upon by all attendees, helping to ensure decisions are implemented effectively. With the
effective application of the Portfolio Review Meeting, Masan can improve the performance of
investment portfolios, thereby achieving the group's development goals (the project group, 2023).
Based on the achievements achieved in 2022, Masan targets net revenue of 90,000-100,000 billion
VND and profit after tax of 7,000-8,000 billion VND in 2023, Masan expects consolidated net revenue
reach from VND 90,000 billion to VND 100,000 billion, growing by 18% and 31% respectively compared
to VND 76,189 billion in 2022. TCX is still expected to be the main revenue growth driver with a
contribution ratio of more than 70%. in net revenue in 2023. To achieve this goal, Masan needs to
continue to carry out activities such as expanding the store network, developing new products,
improving product quality, and optimizing processes. production and distribution. Masan needs to
continue expanding into other fields, such as technology, and finance,... to minimize risks, focusing on
developing its strong brands, such as Omachi, Chin-su, and Vinacafe,... to increase competitiveness in
the market, needs to improve its financial management ability to reduce debt-to-equity ratio
(masangroup, 2023).
2.2. Example about Masan
Masan has a goal of increasing revenue from The CrownX. To achieve this goal, Masan needs to
develop new products and improve the quality of existing products. In the Portfolio Implementation
step, Masan will research and develop new products that meet customer needs. Masan will also invest
in new technologies to improve the quality of existing products. Masan will monitor the performance
of new products to determine which products are successful and need continued development.

3. Performance assessment
Performance evaluation is an important part of the portfolio management process. This process helps
investors determine whether their portfolio is meeting their investment goals.

Specifically, evaluating investment portfolio performance in the third phase is to control the progress
of implementation to achieve investment goals in terms of profit, risk, and time and make adjustments,
if any errors so investors can adjust or improve their management process.

3.1. Actions to be taken during the phase

During this phase, the following actions are required:

- Measure and analyze performance: Managing and evaluating performance helps investors determine
whether their investment portfolio is achieving effective development and whether investors are
detecting potential risks in an investment portfolio. During this phase, Masan Group should measure
and analyze the performance of each product or service in the portfolio against predetermined goals
and standards. This analysis should consider factors such as revenue growth, profits, market share, and
customer satisfaction.
- Identify areas that need improvement: Performance management and evaluation help investors
minimize investment costs. This is because investors can identify ineffective assets in the portfolio and
eliminate these assets to reduce investment costs. This is an area that businesses need to identify in
their risk management plans and improve their performance assessment process in their investment
portfolio. Based on performance assessment, Masan Group should identify areas where improvements
can be made to optimize performance. This may involve investing in new technology or processes,
improving supply chain efficiency, or enhancing customer engagement strategies.

The first step is to determine performance indicators (KPIs) through the rate of employees completing
goals to measure the effectiveness of management and performance evaluation. After identifying KPIs,
it is necessary to collect data related to those KPIs. This data can be collected from many different
sources such as: Performance Management Systems, Employee Surveys, Employee Interviews (Dinh,
2020)

The result is a report for stakeholders so they can understand the performance measurement results in
implementing the portfolio in a clear, concise, and easy-to-understand way. The process of measuring
and analyzing performance needs to be done objectively and fairly. In addition, relevant parties can
understand the risks and what needs to be improved during the implementation process to come up
with improvement measures and improve the efficiency of management and performance evaluation.

The obtained data must be examined to ascertain if the performance management and assessment
process is having the desired impact. Data analysis techniques and technologies like elicitation
methodology, PMIS (Portfolio Management Information System), Multiple-Criteria Weighted ranking,
capability and capacity analysis, etc. may be used to conduct the data analysis process. However, my
team decided to utilize the Multiple-Criteria Weighted Ranking and PMIS tools for performance
management and evaluation at this stage.

The portfolio management process is supported by a technology called a portfolio management

information system (PMIS). It assists investors in efficiently monitoring and managing their investment
portfolios, from setting financial objectives and evaluating risk to monitoring performance and making
gradual portfolio adjustments (Jonh, 2022). This tool offers the features and functionalities required for
efficient portfolio management, such as:
Gather and keep asset data: Asset data may be gathered by the program from several sources, such as
media outlets, research organizations, and stock exchanges. Price, interest rate, profitability ratio, and
market index statistics are all included in this report.

The program can examine asset and market data to find investment possibilities. Both quantitative and
qualitative techniques can be used to analyze data.

Track and assess portfolio performance: The application has the ability to generate reports on portfolio
performance along with alerts on possible hazards.

Masan can utilize the PMIS tool to oversee investment performance and help improve sales and profits
to optimize income for the group by offering the following features and functions:

Monitoring profitability ratios: The application has the ability to monitor investment portfolio
profitability, including overall and asset-by-asset profitability ratios for Masan.

Performance comparison: A portfolio's performance may be compared to that of other Masan

portfolios, reference portfolios, and investor portfolios, using this tool.

Risk analysis: The tool can analyze the risk of the investment portfolio, including both systematic risk
and unsystematic risk for Masan. In addition, the tool can alert Masan about potential risks to the
investment portfolio.

3.2. Use Multiple-criteria Weighted Ranking tools

Multiple-criteria Weighted Ranking is a decision-making tool used to prioritize and select the best
alternative among a set of options based on multiple criteria. It involves assigning weight to each
criterion based on its importance and then scoring each alternative based on its performance in each
criterion. The alternatives are then ranked based on their overall score (Barron & H Person, n.d).
Multiple-criteria Weighted Ranking is often used in many different fields and situations such as
engineering, management, and environmental studies. In particular, it can be used to evaluate
performance and risk management for Masan to help Masan's leaders make wise choices. It allows for
a more comprehensive evaluation of alternatives by considering multiple factors simultaneously rather
than relying on a single criterion. This helps ensure that the option chosen is the most suitable option
for the given situation.

Investment Weight Revenue Growth Limit Rate Priority

portfolio Level Point Level Point Level Point

Consumer 50% 10 5 8 4 4.5 4

products
MEATLife 16% 4 3 5 2 0.8 2
Technological 10% 2 2 7 3 0.5 1
materials
Consumer 25% 5 4 9 5 2.25 3
retail

The weight of each criterion is assigned based on its relative importance to the portfolio.

Total score = (weight multiplied by assessment score) revenue growth + limit rate

Score: each criterion is evaluated on a scale from 1 being the worst and 5 being the best

In general, the weight in the Multiple-criteria Weighted Ranking table above is a percentage that
represents the relative importance of Masan's two criteria, Revenue growth, and Limit Rate, in the
decision to choose an investment category. A higher weight shows that investment is necessary for
Masan

Consumer products account for 50% - a very important criterion

Consumer retail accounts for 25% - an important criterion

MEATLife accounts for 16% - an important criterion

Technological materials account for 10% - quite important criteria

4. Risk management and continuous improvement

To develop a specific risk management strategy for Masan Group, the team implemented the following
steps:
4.1. Overall assessment of the business environment
To identify hazards and get a thorough understanding of the risks that the business confronts, as well
as the business environment and variables impacting Masan, via both internal and external evaluations
of the business. Businesses are directly impacted by the following factors:

Risks related to the economic environment: they might arise from changes in the exchange rate,
inflation, recession, or economic catastrophe. Whether or not they undertake international commerce,
businesses are directly impacted by domestic and global economic variables. For instance, interest
rates and currency rates impact imports and exports, and inflation influences people's psyche and
consumption patterns (Nguyen Le Ha Phuong, 2023)

The political climate poses risks to businesses since they are immediately impacted by both internal
and foreign politics when conducting business in the nation. Numerous enterprises' and organizations'
operations are disrupted by unstable political activity or frequent changes in the administration
(Nguyen Le Ha Phuong, 2023)

Legal risk may be defined as the possibility that laws are not in line with societal growth or that laws
change too often, leading to several commercial deficiencies; alternatively, there may be numerous
risks associated with conducting international business due to disparate legal systems in various
nations (Nguyen Le Ha Phuong, 2023)

Risks resulting from cultural and social environments can arise when businesses fail to comprehend the
traditions, practices, beliefs, way of life, and shifts in human values and behavior standards of every
region of the country or nation (involving international business activities). This can lead to
inappropriate actions and directions. Proper or improper handling of human resources causes harm,
loss, and missed commercial opportunities for the company (Nguyen Le Ha Phuong, 2023)

Natural environmental risks, such as natural catastrophes, earthquakes, droughts, frosts, and so on, can
directly impact the enterprise's assets and human resources.(Nguyen Le Ha Phuong, 2023)

Technological environment risks: developments in science and technology and new technology
applications (production lines, modern machinery, etc.) have an impact on product quality and pricing,
as well as shortening production and technology life cycles and changing product demand. (Nguyen Le
Ha Phuong, 2023)
Determine the probable hazards.

Determine the exact hazards that Masan may encounter. Risks should be classified as financial,
strategic, legal, planning, or market. Prioritize hazards based on their severity and likelihood of
occurrence.

There is a lot of rivalry and danger coming from many sides when it comes to an active business, such
as:

Supplier risk: incidents such as items not being delivered on schedule or of poor quality may
occur.(Nguyen Le Ha Phuong, 2023)

Customer risk: when existing customers switch to other firms, consumers exert pressure on the
business on pricing, payment terms, quality, delivery circumstances, and so on. (Nguyen Le Ha Phuong,
2023)

Risk from alternative products: puts existing competing firms under pressure in areas such as pricing,
features, uses, new designs, new consumer trends, and so on. Risk management is unquestionably
crucial in assisting firms in increasing sales and profitability. It forecasts business variations so that
Masan can adjust and overcome them. When firms manage risk well, they get several benefits,
including:

Financial security: Risk management safeguards Masan's finances from financial risks such as inventory
loss, currency volatility, and raw material price variations. This contributes to financial stability and
capital preservation, hence generating ideal circumstances for sales growth. (Pace website, n.d)

If a supplier unexpectedly raises raw material prices, Masan can use a consolidation approach to
reduce the impact on product costs. Simultaneously, the adoption of futures contracts or financial risk
protection methods aids in cost stabilization and financial protection. (Dang Khoi, 2023)

Improve your capacity to respond to market variations: Risk management assists organizations in
swiftly recognizing and adapting to market changes, such as shifting consumer preferences and greater
competition.

Being adaptable helps firms retain and gain market share and revenues.
Masan can forecast consumer trends and assess market volatility using data and technology. This
enables organizations to swiftly respond to market changes by modifying marketing and product
strategies to match changing client requirements.

Increase your capacity to respond to market variations: Risk management assists organizations in
promptly recognizing and adapting to market changes, such as shifting consumer preferences and
greater competition. (Editor, 2022)

Being adaptable helps firms maintain and develop market share while increasing sales.

Masan can forecast consumer trends using data and technology. This enables organizations to swiftly
respond to market changes, modifying marketing and product strategies to match changing client
requirements.

Maintain brand reputation: Risk management contributes to brand reputation by responding maturely
to situations that may harm the company's image. A well-known brand attracts and maintains clients
effortlessly while also establishing ideal circumstances for sales development.

Masan can implement tight quality control systems and fast remedial procedures in the case of a
product quality fault. This contributes to the preservation of Masan's brand reputation and consumer
confidence.

Identify and capitalize on possibilities: Risk management entails not just dealing with hazards but also
discovering new opportunities. Careful risk assessment and management may assist firms in
recognizing and capitalizing on new market possibilities, therefore developing new revenue streams.
(Pace website, n.d)

Masan may assess the possibility of new markets or product groupings using market data and risk
analysis. This assists firms in identifying business possibilities and developing expansion strategies,
which contribute to sales growth.

4.2. Use capability and capacity analysis

The term "capability and capacity analysis" usually refers to the strategic process of reviewing,
optimizing, and aligning an organization's resources and capabilities to deliver its portfolio of projects
and initiatives efficiently. The following is a broad appraisal of the key elements of this activity:
Strategic alliances:

Active: Assure that the organization's projects are in line with its strategic aims.

Negative: Deviations might arise if not adequately controlled, resulting in wasted resources on
initiatives that do not contribute to the main purpose.

Resource Allocation:

Active: Allows for the most efficient use of resources, avoiding over-allocation or under-utilization.

Negative: Poor resource management can result in fatigue, delays, and expense increases.

Risk reduction: Be proactive in identifying and mitigating risks, strengthening the organization's ability
to react to uncertainty.

Negative: Ignoring risks can result in project failure, financial loss, and reputational damage to the
business.

Adaptability and innovation:

Active: encourages innovation and flexibility, allowing the firm to respond to changing market
conditions more successfully.

Negative: An organization's capacity to stay competitive might be hampered by inflexibility and

reluctance to change.

Financial transactions:

Active: Help to enhance financial performance by ensuring that resources are deployed on projects that
provide value.

Negative: Poor portfolio selections can result in financial losses, harming the organization's overall
health.

Communication and cooperation:

Active: Effective portfolio management facilitates clear communication and collaboration among teams,
departments, and stakeholders.
Negative: A lack of communication can lead to misconceptions, redundant efforts, and disputes.

Metrics that can be measured:

Positive: Measurable metrics enable the firm to monitor the progress of its portfolio management
activities and make data-driven choices.

Negative: A lack of data makes evaluating the impact of portfolio management on organizational
performance challenging.

Extension ability:

Positive: Scalability allows for growth and changes in the organization's size and complexity.

Negative: An organization's capacity to manage a rising number of projects and various activities might
be hampered by its inability to scale.

Continuous enhancement:

Positive: Adopting a continuous improvement culture means that the firm learns from its mistakes and
modifies its portfolio management methods.

Negative: Resistance to change and a failure to learn from failures in the past can stymie growth and
innovation.

In brief, effective capability and capacity analysis is crucial for businesses seeking to manage their
resources, align projects with strategic goals, and prosper in a volatile economic climate. Regular
review, learning from experience, and a dedication to continuous growth are critical success
components.
Conclusion
Masan, a multi-industry business operating in a range of disciplines, must develop an effective portfolio
management approach. This process must be created in keeping with Masan's goals and planning, as
well as market requirements and the economic climate. Effective portfolio management is critical to
Masan's power to optimize revenue and meet its strategic goals. Masan can improve financial
performance, create value for shareholders, and position itself as a market leader in Vietnam by fully
selecting, assessing, and monitoring its investments. Masan may consider using new technology to
support the portfolio management process in addition to the ideas given above. Such tools can assist
Masan in doing business steps, collecting and analyzing data, and making more informed investment
decisions. Implementing new technologies will help Masan increase portfolio management efficiency,
allowing it to meet sales and profit growth targets faster and reliably.
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