Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 12

VIETNAM NATIONAL UNIVERSITY

HCMC UNIVERSITY OF TECHNOLOGY


SCHOOL OF INDUSTRIAL MANAGEMENT

STRATEGIC MANAGEMENT

REPORT GROUP PROJECT

ANALYSIS VISION AND MISSION OF HEINEKEN


AND COMPARE WITH ITS COMPETITOR - SABECO

Written by: Group 3 – CC01

Instructor: Lai Van Tai

HCMC, 02/2024
TEAM MEMBERS CONTRIBUTION

No ID Name Distribution
1 2153165 Nguyễn Ngọc Vân Anh 100%
2 2152498 Nguyễn Quang Đại 100%
3 2153519 Bành Khánh Linh 100%
4 2153237 Bùi Thái Cơ 100%
5 2153333 Phạm Hiếu Hạnh 100%
TABLE OF CONTENT
1. Analysis of Heineken’s vision and mission.............................................................1
1.1 Overview of Heineken.........................................................................................1
1.2 Vision and core value of Heineken.....................................................................1
1.3 Mission and Strategy...........................................................................................2
1.4 Compare and highlight the changes..................................................................3
2. Analysis of SABECO’s vision and mission.............................................................4
2.1 Introduction.........................................................................................................4
2.2 Vision....................................................................................................................4
2.3 Mission..................................................................................................................4
3. Comparison between Sabeco and Heineken..........................................................5
3.1 Vision....................................................................................................................5
3.2 Mission..................................................................................................................5
3.3 Strategy................................................................................................................6
4. Suggest ideas for Heineken to improve in the future............................................7
5. References..................................................................................................................9

3
1. Analysis of Heineken’s vision and mission
1.1 Overview of Heineken
HEINEKEKEN and SATRA (Saigon Trading Group) established a successful j
oint business entitled HEINEKEN Vietnam. The firm has a distinguished 30-year hist
ory, having expanded from its first brewery in Ho Chi Minh City in 1991 to six locatio
ns around the country, employing over 3,000 people at present.
The firm assists Vietnamese citizens in their national development. At present,
they are generating 152,000 employment opportunities along the value chain, making
up 0.7% of Vietnam's GDP, and are among the top taxpayers in the nation.
1.2 Vision and core value of Heineken
The vision of Heineken Vietnam is to be the leading, proud & responsible br
ewer in Vietnam, guided by their values: Respect for People & Planet, Enjoymen
t, Quality, and Passion for Winning.
Heineken Vietnam’s vision is not only about being the leading brewer in Vietn
am but also about being proud and responsible for its impact on the people and the pla
net. The company’s vision is guided by its values of respect, enjoyment, quality, and p
assion for winning. These values reflect the company’s culture and identity, as well as
its commitment to excellence, innovation, and customer satisfaction.
The vision is also aligned with its global EverGreen strategy, which aims to cre
ate a positive and lasting impact on the world. This means that the company is part of
a larger network of Heineken breweries that share the same vision and goals and that i
t can leverage the global resources and expertise of Heineken to achieve its vision. Mo
reover, Heineken Vietnam’s vision is supported by its ambitious targets for 2025, such
as using 100% renewable energy, balancing 100% of its water use, and sending zero w
aste to landfills.
Besides, the vision is also influenced by its understanding of the Vietnamese m
arket and customers, as it diversifies product portfolio to meet the changing tastes and
preferences of different segments. This shows that the company is adaptive and respon
sive to the local context and that it strives to offer the best value proposition to custom
ers.

1
1.3 Mission and Strategy
A company known for its unwavering innovation, it combines global experienc
e with indigenous skills and knowledge to create a diverse range of products that cater
to Vietnamese consumers' preferences and drinking occasions. Notable brands include
Heineken®, Tiger, Larue, BIVINA, Bia Viet, Strongbow, and Edelweiss. A large num
ber of our beers are unique creations created by Vietnamese brew masters just for Viet
nam.
HEINEKEN Vietnam conducts business with a commitment to sustainability a
nd responsibility. The Sustainable Development Goals (SDGs) of the UN are aligned
with and supported by HEINEKEN's global and Vietnamese sustainability strategies.
HEINEKEN has helped to execute eight out of the seventeen Sustainable Developmen
t Goals (SDGs) in Vietnam through creative collaborations with essential stakeholders
from the State and private sectors, concentrating on important areas where the Compa
ny feels it can have the biggest influence. Sustainable and responsible development wi
ll always be the guideline for all company decisions, and HEINEKEN Vietnam will co
ntinue to develop together with the country and people of Vietnam, contributing to cre
ating a better world for everyone.
HEINEKEN's global EverGreen Strategy is the guiding principle leading Heine
ken Vietnam to join hands in "Brewing a Better Vietnam," motivating the company to
raise ambition for the 2030 sustainable development goals with three main journeys:
 Journey towards Zero Environmental Impact
 Journey towards an Inclusive, Fair, and Equal World
 Journey towards a Responsible Drinking Culture
As a result of their unwavering dedication to "Brewing a Better Vietnam," Hein
eken Vietnam has been named one of the top 3 most sustainable manufacturing busine
sses by the Vietnam Chamber of Commerce and Industry (VCCI) for six years runnin
g, from 2016 to 2021. At the moment, 52% of the energy required to run their breweri
es comes from renewable sources, and all of their waste and byproducts are recycled o
r repurposed. In 2020, they launched Heineken® 0.0 to aid the government's initiative
s in combating drunk driving in Vietnam, since they are also ardent supporters of mod
eration in consumption.

2
Vietnam is now experiencing a lot of chances as well as difficulties concerning
the environment, society, and economic growth. To take advantage of these possibiliti
es and overcome obstacles, important stakeholders must be dedicated to choosing and
growing effective and sustainable business models. They also need to be open to chan
ge and innovation.
1.4 Compare and highlight the changes
Developing Heineken's 2020–2030 sustainable development plan: a quick and t
argeted design approach:
Strategy for Sustainability
To formulate a successful SD strategy framework, Heineken first looked at the
external environment in which it would function. The team examined the 2030 SD fra
mework's target audience, the primary competitors and stakeholders, and significant m
arket developments in the first week of the sprint using Fronteer's Lighthouse model.
By the conclusion of the first week, the team had co-created three story routes, all of
which were based on the strategic vision they produced from this study. The team set
out to confirm the viability of the several story paths developed in the first week durin
g the second week. They organized validation meetings with many Heineken Operatin
g Companies (OpCos) located across the globe to achieve this. The three inclusive and
operational narratives were refined and perfected through an iterative process with fee
dback from OpCos from Ireland, Brazil, Hungary, Indonesia, and Vietnam. The third
and last week of the sprint was devoted to refining the ideas and using design to make
them a reality. To find the ideal match between the visual and the plot, the team experi
mented with several visual experiments.
The outcome
Heineken is delighted with the SD framework plan that they developed in colla
boration with their team, and they extend an invitation to others to join them in their o
bjective to positively influence the transition to a more sustainable global consumer ec
onomy. Heineken is in a strong position to carry on with their sustainable developmen
t journey over the next ten years with their new SD plan in place.

3
2. Analysis of SABECO’s vision and mission
2.1 Introduction
Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco), Vietnam gov
ernment, representative Ministry of Industry and Trade, accounts for 90% of equity.
With a history of nearly 150 years accompanying the changes of the country and peopl
e of Vietnam, the golden flow of Beer has been. It will always be preserved by efforts
to continue, always existing in the emotions of Vietnamese people who are proud of V
ietnamese products. The unique flavor of Saigon Beer is the crystallization of the prod
ucts of the rich Southern land and the generous spirit of Saigon people, becoming an i
ndispensable part of daily happy and sad life. Saigon Beer and Beer 333 are the leadin
g Vietnamese brands in the Vietnamese beer market and are on their way to conquerin
g demanding markets such as Germany, the US, Japan, the Netherlands, etc.
2.2 Vision
The strategic development of Sabeco by 2025 aims to become Vietnam's leadi
ng beverage industry group, with a position in the region and internationally. To
do that, one of SABECO's key concerns in the development investment process is to b
uild a sustainable development model, contribute to the economy, develop human reso
urces, and contribute to sustainable development projects, and environmental protectio
n. Consumption, conservation, culture, and country are the 4 core pillars of the sus
tainable model in Sabeco.
2.3 Mission
Sabeco's commitment is to contribute to developing Vietnam's Beverage indust
ry on a world-class level with Vietnamese cuisine. “Affirming class, creating trust, c
ommunity responsibility and changing for development” is the guideline to provid
e tangible advantages to partners, consumers, shareholders, workers, and the communi
ty. Moreover, the company wants to enhance people's quality of life by offering whole
some, safe, and superior drinking products. Affected by the trend of sustainability, the
company executives orient the operation to fulfill all obligations to the State based on
transparency in business and actively participate in community activities.

4
3. Comparison between Sabeco and Heineken
3.1 Vision
In terms of vision, both companies encapsulate the effort to be at the top of the
industry based on their own resources and strengths. Incorporating with the current tre
nd of sustainability development, the visions also give a path of how both companies c
an achieve the goal. The differences lie in the scope of the vision with Sabeco striving
to be the leading brewer outside of Vietnam while Heineken Vietnam focuses on a mo
re localized goal - the Vietnamese market. This can be attributed to Heineken belongin
g to a larger network, which shares the same vision and goals and they can reach the v
ision with the resources from Heineken Global. Heineken Vietnam’s vision is guided
by its values of respect for people and planet, enjoyment, quality, and passion for win
ning, while Sabeco’s vision is based on the four core pillars of consumption, conservat
ion, culture, and country. Heineken Vietnam’s values reflect its culture and identity, as
well as its commitment to excellence, innovation, and customer satisfaction, while Sab
eco’s pillars reflect its social and environmental responsibility, as well as its contributi
on to the economy and the nation.
3.2 Mission
The missions of both Sabeco and Heineken Vietnam centers around different p
oints. As a Vietnamese company, Sabeco focuses on putting the Vietnamese brewing i
ndustry on the world map and enhancing the sense of belonging to Vietnamese culture.
Whereas Heineken Vietnam utilizes its global appeal advantages and understanding o
f the region to suit every taste and cement its place on the Vietnamese market.
Both Heineken and Sabeco have missions that align with their visions and highl
ight their commitment to sustainability and responsibility. However, they have differe
nt approaches and priorities in achieving their missions. Heineken’s mission is based o
n the Sustainable Development Goals (SDGs) of the UN, which are a set of universal
goals to address the global challenges of poverty, inequality, climate change, and mor
e. Heineken has helped to execute eight out of the seventeen SDGs in Vietnam, focusi
ng on areas where it can have the most impact, such as water stewardship, renewable e
nergy, responsible consumption, and social inclusion. Sabeco’s mission is more gener
al and vague and does not specify how it will affirm its class, create trust, be responsib

5
le to the community, and change for development. Sabeco’s mission may appeal to its
loyal customers and stakeholders, but it may not be as clear and compelling as Heinek
en’s mission.
3.3 Strategy
Both Heineken and Sabeco have strategies that support their missions and
visions, but they differ in their product offerings and marketing tactics. Heineken’s
strategy is to pursue zero environmental impact, an inclusive, fair, and equal world,
and a responsible drinking culture.
To do this, Heineken has invested in green technologies, social initiatives, and
awareness campaigns. Heineken also leverages its global experience and local knowle
dge to create a diverse range of products that cater to Vietnamese consumers’ preferen
ces and drinking occasions. Heineken has notable brands such as Heineken®, Tiger, L
arue, BIVINA, Bia Viet, Strongbow, and Edelweiss, many of which are unique creatio
ns by Vietnamese brewmasters. Heineken also has a strong marketing presence, spons
oring major events such as the Champions League and the Formula One Grand Prix. S
abeco’s strategy is based on four core pillars: consumption, conservation, culture, and
country.
These are the main aspects that guide Sabeco’s business operations and social r
esponsibility. Sabeco has a dominant market share in the low-end segment, with its fl
agship brand Saigon Beer, but it is also trying to expand into the mid-tier segment wit
h its Saigon Special brand, which is rebranded in a green bottle to compete with Tiger.
Sabeco’s marketing is more focused on local events and cultural activities, such as fest
ivals, concerts, and sports.

 Strengths and weaknesses: Heineken’s strengths include its clear and specific
vision and mission, its alignment with the UN SDGs, its diverse and innovative
product portfolio, and its strong marketing presence

4. Suggest ideas for Heineken to improve in the future

Continued focus on consumer needs and preferences:

6
 Deeper consumer insights: Leverage advanced data analytics to understand co
nsumer behavior better, identify emerging trends, and develop targeted marketi
ng strategies.
 Personalization: Implement personalized marketing campaigns and product of
ferings based on individual consumer preferences.
 Sustainability and ethical sourcing: Continue to emphasize sustainability pra
ctices in the brewing process and source ingredients ethically to attract environ
mentally conscious consumers.

Innovation and product diversification:

 Expand beyond beer: Continue exploring and investing in new beverage categ
ories like cider, hard seltzers, and non-alcoholic drinks to cater to changing tast
es and preferences.
 Premiumization: Focus on premium and craft beer segments, offering unique
flavor profiles and locally-sourced ingredients, to capture a higher profit margi
n.
 Beverage innovation: Develop innovative and exciting new beer and other bev
erage options to attract new customers and stay ahead of the curve.

Digital transformation and omnichannel presence:

 Invest in e-commerce platforms: Develop strong e-commerce platforms and


partnerships with online retailers to reach consumers directly and bypass traditi
onal distribution channels.
 Social media engagement: Utilize social media effectively to connect with co
nsumers, build brand loyalty, and promote new products.
 Direct-to-consumer initiatives: Explore innovative direct-to-consumer deliver
y models to provide customers with a seamless and personalized experience.

Sustainable and responsible business practices:

 Focus on environmental sustainability: Implement sustainable practices thro


ughout the supply chain for a smaller environmental footprint.

7
 Responsible alcohol marketing: Promote responsible drinking habits and addr
ess social concerns related to alcohol consumption.
 Diversity and inclusion: Foster a diverse and inclusive workforce that reflects
the changing demographics of the global beer market.

Additionally:

 Strengthening emerging market presence: Invest in expanding brand awaren


ess and market share in developing economies with high growth potential.
 Collaboration and partnerships: Collaborate with other beverage companies
or technology providers to access new markets, technologies, and expertise.
 Agility and adaptability: Maintain a flexible and adaptable approach to addres
s unforeseen challenges and capitalize on emerging opportunities.

8
5. References

(No date) About Us. Available at: https://heineken-vietnam.com.vn/en/about-us/


(Accessed: 26 February 2024).

(No date) Heineken Vietnam continues to inspire the business community in


Sustainability Commitment and competitiveness enhancement. Available at:
https://heineken-vietnam.com.vn/en/news-events/press-release/heineken-vietnam-
continues-to-inspire-the-business-community-in-sustainability-commitment-and-
competitiveness-enhancement.html (Accessed: 26 February 2024).

Giới thiệu. (n.d.). SABECO. https://www.sabeco.com.vn/gioi-thieu

Đô H. a. T. T. T. (2023, April 22). SABECO - Hành trình bền bỉ với sứ mệnh khẳng định vị t

hế thương hiệu Việt. Báo Tuổi Trẻ Thủ Đô. https://tuoitrethudo.com.vn/sabeco-hanh-t

rinh-ben-bi-voi-su-menh-khang-dinh-vi-the-thuong-hieu-viet-222303.html

Heineken (2023) Elemental. Available at: https://elementalstrategy.com/works/heinek

en/ (Accessed: 26 February 2024).

You might also like