1.

Introduction

I am a Global Strategy Analyst employed at a prominent global management consultancy,

based in Vietnam. This presentation focuses on formulating a global strategy for Vinamilk, a
prominent dairy company in Vietnam with a longstanding 45-year track record of sustainable
growth (Vinamilk, 2021). Vinamilk specializes in manufacturing and distributing an
extensive array of dairy items, including milk, yogurt, cheese, ice cream, and beverages.
Presently, the company has achieved a market presence of 2.4 billion USD, catering its
products to 56 countries and territories globally (Vinamilk, 2021). Additionally, it has
established strategic alliances with six leading companies in the fields of nutrition and
bioscience.

In my presentation, I'll delve into two primary topics: first, the impact of global market
operations on Vinamilk's structure, culture, and functions, and secondly, a comprehensive
global strategy designed to bolster decision-making processes at Vinamilk

2. Globalization is impact on organization governance, leadership, structure, and

functions (P3)

2.1. Globalization and Organizational Governance

Organisational governance refers to the framework overseeing how organisations are guided,
managed, and made accountable (OECD, 2023). It covers the systems, methods, and
protocols influencing an organization's choices, conduct, and general performance (OECD,
2023). Effective governance usually embodies openness, answerability, equity, duty, and
safeguarding stakeholders' concerns (OECD, 2023) . It guarantees that organisations function
with integrity and effectiveness, adhering to legal norms and societal standards, and ensuring
alignment with broader community expectations (OECD, 2023).

How globalization affects decision-making processes

Globalization influences Vinamilk's policy-making to facilitate the company's expansion

strategy within the market. Specifically, in 2022, VNM issued additional shares valued at
over 3.48 trillion VND (equivalent to 150 million USD) to augment its charter capital from
20.9 trillion VND (approximately 886 million USD) to 23.48 trillion VND (reaching 1 billion
USD) (Nguyen, 2023). The decision to increase VNM's charter capital requires unanimous
consent from all shareholders, considering its collective impact on all stakeholders associated
with VNM (Nguyen, 2023). As VNM extends its market presence, adequate capital becomes
essential for investments in infrastructure, machinery, raw materials, R&D initiatives,
marketing endeavors, and recruiting new talent, compelling the issuance of additional shares.
This action assists VNM in procuring additional capital necessary for the advancement and
growth of its business endeavours.

Expanding into the global market involves employees as active stakeholders contributing to
VMN's decision-making policies. VMN has embraced a global perspective, treating its
workforce as an international entity irrespective of their nationality or location (Vinamik,
2023). The company aims to attract, train, inspire, and retain top talent worldwide, advancing
them based on their performance, potential, and career aspirations (Vinamik, 2023).
Employing a performance-centric strategy, VMN assesses and rewards employees according
to their accomplishments, contributions, and alignment with the company's objectives,
employing an efficient job assessment mechanism to gauge employee performance, skills,
and actions (Vinamik, 2023). Conversely, VMN utilizes a potential-driven approach,
identifying and nurturing the skills of high-potential employees to prepare them for future
roles and responsibilities. Employing a talent management framework, the company
evaluates employees' strengths, weaknesses, opportunities, and formulates strategies.
Additionally, VMN adopts a career-oriented approach, facilitating an environment conducive
for individuals with entrepreneurial aspirations (Vinamik, 2023). Through a robust career
development system, the company endeavors to offer professional guidance, consultancy,
coaching, mentoring, and constructive feedback to its employees.

The impact of global market dynamics

When VNM adopts a global mindset within its organizational framework, numerous
obstacles emerge within its governance structure. The complexity inherent in VNM's
governance framework results in prolonged decision-making processes, hindering the
company's agility in responding promptly to market shifts (Vinamilk, 2022). Managing this
intricate governance setup demands substantial resources, encompassing time and human
capital, subsequently diminishing operational efficiency and potentially diverting focus from
strategic objectives. Additionally, the inclusive approach embracing all nationalities and
cultures among employees contributes to complexity within VNM's management hierarchy,
fostering discrepancies among various levels and departments (Vinamilk, 2022). This
complexity yields communication gaps, conflicting strategies, and impediments in executing
cohesive directives throughout the organization.

Adapting to the global landscape also poses challenges for VNM. The constant resource
demands necessitating ongoing alterations in policies, systems, and strategies strain the
company's resources, presenting challenges in maintaining holistic stability across the
organization. Furthermore, an overzealous approach to adaptation risks diluting VNM's
strategies or compromising its fundamental values (IFC, 2023). The rapid and frequent
changes within VNM may induce confusion among stakeholders or employees, thereby
impacting trust and overall stability (IFC, 2023). Finally, VNM encounters significant
financial implications while endeavoring to adapt to diverse environments and regulatory
frameworks across various countries and regions (IFC, 2023). Meeting the diverse
expectations of stakeholders, including customers, employees, suppliers, partners, investors,
regulatory bodies, and the community, necessitates substantial financial investment.

2.2. Globalization and Organizational Structure

An organizational structure is a systematic framework that delineates the direction of certain

operations to accomplish the objectives of an organization (Kenton, 2023). It encompasses
regulations, positions, obligations, communication channels, and decision-making power
(Kenton, 2023).

Several types of Organizational Structure:

● Functional structure: This structure categorizes personnel based on their distinct

expertise and roles, such as marketing, finance, human resources,...(Organ, 2023).
Every function is overseen by its own manager, who are accountable to the senior
management (Organ, 2023). This organizational framework facilitates specialization,
effectiveness, and unambiguous delineation of roles and duties (Organ, 2023).
Nevertheless, it may also generate isolated groups, impede communication, and
restrict adaptability across different departments (Organ, 2023).
● Product-based structure: This organizational structure categorizes people based on
the specific products or services they generate, such as software, hardware,
consultancy,...(Organ, 2023). Every individual product is assigned a dedicated
manager and team, who has full autonomy and responsibility to oversee their
respective activities (Organ, 2023). This framework facilitates innovation, customer-
 centricity, and adaptability to market fluctuations (Organ, 2023). Nevertheless, it may
also result in resource duplication, coordination issues, and conflicts of interest across
different goods (Organ, 2023).
● Geographical structure: This organizational structure categorizes people based on
their operational locations, such as nations, states, cities,...(Organ, 2023). Each site is
equipped with its own management and team, who has the authority to accommodate
the local culture, laws, and regulations (Organ, 2023). This framework enables a wide
range of variations, adaptability, and adherence to regulations (Organ, 2023).
Nevertheless, it may also give rise to isolation, complications in communication, and
obstacles in standardization and integration(Organ, 2023).
● Flat structure: This structure minimizes or eradicates hierarchical levels and
authoritative positions within the organization (Olmstead, 2023). Employees are
granted increased autonomy and accountability to make decisions and fulfill their
duties (Olmstead, 2023). Managers take on roles as facilitators or mentors rather than
solely serving as supervisors or controllers (Olmstead, 2023). This setup fosters
empowerment, innovation, and agility among both employees and managers.
However, it also holds the potential to generate disorder, uncertainty, and
overwhelming responsibilities among employees and managers (Olmstead, 2023).
● Matrix structure: This structure integrates many structures, such as functional and
product, or market and geographic (Organ, 2023). Employees possess dual reporting
relationships, indicating that they are accountable to two supervisors, one for each
dimension (Organ, 2023). This framework facilitates interdisciplinary cooperation,
the exchange of resources, and the incorporation of diverse viewpoints (Organ, 2023).
Nevertheless, it may also result in perplexity, role ambiguity, conflicts of authority,
and heightened intricacy (Organ, 2023).
● Network structure: This structure banks on outsourcing or subcontracting specific
functions or tasks to external partners or vendors (Organ, 2023). The emphasis is on
the company's core strengths, delegating non-core activities to a network of external
collaborators. This setup facilitates cost-cutting, enhances quality, and distributes
risks between the company and its partners or vendors(Organ, 2023). Nonetheless, it
has the potential to lead to reliance, diminished control, and communication
challenges between the company and its external collaborators (Organ, 2023).

How global operations impact the organisarion structure

Vinamilk adopts a functional organizational structure, dividing responsibilities among
distinct departments. These include dairy development, production and R&D, supply chain,
finance, projects, marketing, sales, and human resources & administration. This structure has
been Vinamilk's longstanding approach, persisting even as the company expanded globally.
Its branches in different countries maintain separate departments (Vien, 2023). Presently,
Vinamilk lacks a dedicated department specifically responsible for global functions.
However, its departments engage and collaborate with counterparts in other countries based
on their respective roles. For instance, the finance department might interact with global
functions concerning accounting standards or tax regulations (Vien, 2023). Similarly, the
project department collaborates with global functions related to product development or
quality assurance. Likewise, the marketing department communicates with global functions
concerning market research or consumer preferences. All departments align their efforts
toward a unified vision and mission of transforming VNM into a global brand (IFC, 2023).
This shared goal motivates seamless collaboration among VNM departments. Additionally,
Vinamilk has introduced multifunctional committees to facilitate joint efforts on particular
projects or tasks (IFC, 2023). Furthermore, with globalization, Vinamilk embraces
information technology tools like cloud computing and e-commerce platforms. These
technological aids streamline data sharing and communication among Vinamilk's
departments and committees, fostering effective coordination.

- The challenges and opportunities

Opportunities

The adoption of a functional structure has presented Vinamilk with several advantages.
Firstly, it establishes a clear allocation of tasks and responsibilities across various functions,
thereby enhancing overall work efficiency and the quality of outputs (Indeed Editor Team,
2023). Secondly, this structure enables employees at Vinamilk to specialize profoundly
within each department, nurturing expertise and excellence in particular domains (Indeed
Editor Team, 2023). Lastly, it offers a transparent career trajectory and growth prospects
within each function, potentially boosting employee motivation and fostering loyalty (Indeed
Editor Team, 2023).

Challenges
However, the traditional reliance on the functional structure has also posed challenges for
Vinamilk. Firstly, managing numerous departments creates complexity, leading to a
proliferation of decentralized decision-making processes (Indeed Editor Team, 2023). This
abundance can hinder the company's agility in responding to market shifts or swiftly adapting
to a dynamic business environment. Secondly, it has the potential to erect barriers between
different functions, resulting in isolated operations and difficulties in sharing information or
aligning strategies, leading to communication gaps and possible misconceptions (Indeed
Editor Team, 2023). Lastly, this structure might limit the organization's adaptability to
changing market conditions or customer needs, as individual functions may prioritize their
distinct goals and objectives (Indeed Editor Team, 2023). Moreover, it could stifle diversity
and innovation within the organization, as employees may become excessively specialized or
confined within their functional boundaries.

2.3. Globalization and Organizational Culture

The beliefs, values, and methods of interaction that comprise an organization's environment
constitute its culture (Huff, 2014). It determines the ultimate success of an organization by
regulating the work and operations of its employees (Huff, 2014). Organizational culture
influences learning, productivity, and growth at every level and can be analyzed from a
variety of vantage points, including consensus, subcultures, and the whole (Huff, 2014).
Additionally, the leadership style, vision, and objectives of an organization can impact its
culture.

How global market influences shape organizational values and beliefs

Cultural disparities naturally arise as Vinamilk extends its presence into the global market. To
communicate and uphold its culture, Vinamilk Corporation in Vietnam has implemented
specific strategies. Firstly, the corporation dispatches seasoned senior managers and leaders
well-versed in cultural nuances and corporate values to visit international branches (Nguyen,
1970). During these visits, they directly engage with local employees, elucidating Vinamilk's
policies encompassing quality standards, product development, market research, and
customer service. They offer guidance, share experiences, and exemplify best practices,
inspiring adherence to Vinamilk's vision and mission. Secondly, Vinamilk conducts
integration training programs tailored for newly recruited or relocated employees joining
overseas branches (Nguyen, 1970). These programs cover a spectrum of topics, including the
company's history, vision, mission, values, objectives, strategies, organizational structure,
and cultural facets. Additionally, they delve into local laws, regulations, customs, and
etiquette. The training incorporates interactive elements like games, quizzes, role plays, and
simulations, fostering experiential learning and enjoyment simultaneously. Lastly, Vinamilk
harnesses information technology tools like cloud computing and e-commerce platforms to
streamline data sharing and communication among employees across diverse locations
(Nguyen, 1970). Moreover, the corporation has an online rendition of the 'Vinamilk Cruise'
handbook, connecting all employees and providing unfettered access to reference Vinamilk's
corporate culture anytime, anywhere.

The impact of cultural diversity on global organizational cultures

Pros:

Diversity offers Vinamilk several advantages. Firstly, cultural diversity can enrich the
company's creativity and innovation by providing access to varied perspectives, ideas, and
solutions, thereby enhancing product quality and technological advancements (Vinamilk,
2023). Secondly, it can bolster customer satisfaction and loyalty as Vinamilk gains a deeper
understanding of diverse customer needs and preferences across different markets (Vinamilk,
2023). Lastly, cultural diversity can elevate Vinamilk's reputation and image by showcasing
its appreciation for diversity among employees, partners, and communities (Vinamilk, 2023).

Cons:

However, there are challenges in conveying and maintaining Vinamilk's cultural diversity.
Firstly, it poses difficulties in preserving the company's corporate culture as differences in
values, norms, and expectations among employees from diverse backgrounds may lead to
misunderstandings, conflicts, or resistance (Vinamilk, 2022). Secondly, managing cultural
diversity may increase operational complexity and costs as Vinamilk may need to adjust
policies, procedures, and systems to comply with varying local laws, regulations, customs,
and protocols across different countries or regions (Vinamilk, 2022). Lastly, cultural diversity
can present challenges and risks, exposing the company to uncertainties in the global market,
such as political, economic, social, or environmental factors that could impact the company's
performance and sustainability (Vinamilk, 2022).
2.4. Globalization and Leadership

Motivating a group of individuals to take action in pursuit of a common objective is the

essence of leadership (Ward, 2023). Proficient problem-solving skills, a distinct vision, a
supportive demeanor, and a readiness to consider alternative viewpoints are all essential
components (Ward, 2023). Leadership is more concerned with organizing, planning, and
regulating; this is in contrast to leadership (Ward, 2023). The market and the organization's
environments also exert an impact on leadership.

How global market influences shape leadership

Vinamilk's leaders maintain communication and collaboration with employees in branches

across different countries through various methods. They frequently embark on business trips
to directly engage and collaborate with these employees, sharing experiences and effective
methodologies to align with Vinamilk's vision and mission (Vinamilk, 2023). Additionally,
they utilize digital tools like video conferencing, virtual town halls, and webinars to ensure
direct communication and updates with global employees. Leaders also regularly update
emails and newsletters to disseminate crucial corporate messages to all international
branches. Moreover, Vinamilk provides internal communication platforms and intranet
systems, enabling employees across diverse locations to access information, updates, and
directly communicate with leadership (Vinamilk, 2023). Empowering employees, both within
the corporation and in overseas branches, is a priority for Vinamilk's leaders (Vinamilk,
2023). They've initiated global and regional recognition programs to commend outstanding
performance or contributions across different countries (Vinamilk, 2023). Furthermore,
leaders offer continual feedback, support, and coaching to ensure employees feel valued and
assisted in their roles. Moreover, leaders devise strategies to engage employees from various
countries in decision-making processes concerning their work, promoting participation and
motivation within the workforce (Vinamilk, 2023). This inclusive approach seeks to foster a
more engaged and empowered workforce throughout Vinamilk's global branches.

The challenges and opportunities

Challenges:
Interacting and collaborating with employees in diverse countries present challenges for
Vinamilk's leaders (Nguyen, 1970). Language disparities among employees in different
countries, varying proficiency levels in common languages like English, alongside different
accents and dialects, may hinder effective communication and comprehension (Nguyen,
1970). Additionally, employees' diverse cultural backgrounds influence their behavior,
attitudes, and preferences (Nguyen, 1970). Varying norms, customs, or rituals governing
interactions, communication, and work approaches may lead to misunderstandings, conflicts,
or resistance between Vinamilk's employees and leaders, possibly fostering stereotyping or
discrimination (Nguyen, 1970).
Opportunities
However, engaging with employees in different countries also offers valuable learning
opportunities for Vinamilk's leaders. Communication with global employees can foster
leaders' creativity and innovation by exposing them to diverse viewpoints, ideas, and
solutions for enhancing the company's products, processes, and technologies (Nguyen, 1970).
Moreover, collaborating with employees across borders serves as a chance for leaders to
explore and appreciate different cultures, thereby boosting cultural sensitivity and integration
within the organization (Nguyen, 1970). Effective communication strategies further enable
Vinamilk's leaders to enhance employee engagement, fostering motivation, higher
productivity, and a profound sense of belonging v. This facilitates aligning goals, strategies,
and values, ensuring a unified approach throughout the entire global organization.

3. Ethical and Sustainable Globalization (P4)

The objective of the concept of sustainable globalization is to encourage a more responsible,

fair, and just method of international integration and interaction (ESG, 2023). It is about
fostering a positive economic and social impact for all, safeguarding the environment and
natural resources, and upholding the human rights, dignity, and diversity of every individual.
Human beings. In order to assess the sustainability of a business or organization, the 3P
framework (profit, people, and planet) is applied (ESG, 2023). This necessitates that a
business or organization strike a balance between the interests and requirements of three
primary stakeholders: profit (which pertains to financial performance and the generation of
value), individuals (which concern the social impact and welfare of consumers, employees,
and communities), and the environment (which concerns resource efficiency and
environmental impact) (ESG, 2023). A business or organization can ensure its long-term
sustainable development by implementing the 3P framework, so provides a more
comprehensive and thorough assessment of its performance and contribution to the process of
sustainable globalization (ESG, 2023).
The integration of cultures, economies, markets, and policies in a manner that upholds social
justice, safeguards human rights, and cultivates a worldwide civic credo is referred to as
ethical globalization (Brodeur). Its objective is to establish a global community that is more
inclusive and equitable, wherein individuals can work together harmoniously and diversely
despite physical and financial separations (Brodeur). In light of the numerous global
challenges that demand global responses, ethical globalization is not merely a desirable but
also an essential objective.

Several aspects of Ethical and Sustainable Globalization

Vinamilk, a highly regarded organization, upholds stringent anti-bribery and discrimination

policies, demonstrating steadfast adherence to these guidelines. Notably, there haven't been
reported instances of bribery or discrimination towards its employees (Vinamilk, 2023). The
company enforces a universally applicable code of conduct across its global branches,
prohibiting any form of corruption or bribery in all business operations, both domestically
and internationally. Vinamilk mandates compliance with laws and regulations in the countries
it operates in, emphasizing honesty, transparency, and accountability among its employees,
executives, managers, and partners (Vinamilk, 2023). Moreover, the company has established
a whistleblowing system, ensuring that employees can report any suspected violations of the
Code of Conduct without fear of reprisal. Respecting and valuing diversity among its
employees, customers, and the community, Vinamilk staunchly opposes discrimination or
harassment based on race, ethnicity, gender, age, religion, disability, or any protected
characteristic (Vinamilk, 2023). Ensuring fair and equitable treatment, the company
guarantees a safe and healthy work environment for all employees (Vinamilk, 2023).
Additionally, Vinamilk invests in its employees' growth by providing comprehensive training
and educational programs (Vinamilk, 2023). These initiatives aim to enhance employees'
proficiency in various cultures and languages, fostering a more inclusive and knowledgeable
workforce.

The influence of ethical practices on organizational functions

Vinamilk has established a robust risk management system responsible for identifying,
assessing, and managing potential risks that could impact the company's performance and
sustainability. This system is overseen by the Risk Management Council, which monitors
risk-related activities and reports directly to the Board of Directors (Vinamilk, 2022).
Specifically, the focus is on identifying ethical risks like compliance violations, ethical
misconduct, or potential harm to the company's reputation (Vinamilk, 2022). Strategies are
then implemented to effectively manage and mitigate these risks. Ethical principles are
deeply ingrained throughout Vinamilk's organizational culture, influencing not just specific
departments but the entire company. This approach serves as a guiding force for decision-
making processes, policy formulation, and operational practices, ensuring that Vinamilk
operates within the boundaries of both legality and ethical standards (Vinamilk, 2022).
Vinamilk's Human Resources department goes beyond traditional HR functions such as
recruitment, training, and employee relations. It now emphasizes additional areas due to the
significance of ethical practices (Vinamilk, 2022). This expanded focus may involve
implementing ethics training, fostering a culture centered on integrity, addressing ethical
dilemmas, and ensuring compliance with ethical standards during hiring and promotional
processes. Moreover, Vinamilk has established ethical regulations that mandate compliance
across all departments. The company's legal and compliance departments play a pivotal role
in ensuring that operational practices align with the company's ethical standards and
regulatory requirements (Vinamilk, 2022). Across all Vinamilk departments, whether in
Vietnam or other countries, ethical considerations have become integral to their processes
and decision-making.

The importance of sustainable business practices

Vinamilk's adoption of sustainable business practices amid global challenges has yielded
significant advantages. Firstly, these practices secure the company's long-term viability by
mitigating risks associated with environmental, social, and governance factors (Virakul,
2015). This approach enhances Vinamilk's resilience, enabling it to navigate unforeseen
challenges effectively and sustain operations amidst fluctuating conditions. Secondly,
Vinamilk's commitment to sustainability drives innovation, resulting in waste reduction,
resource optimization, and the development of eco-friendly products and processes (Virakul,
2015). This not only streamlines costs but also enhances efficiency, setting Vinamilk apart in
the market and appealing to environmentally conscious consumers and investors. Thirdly, the
growing preference among consumers for environmentally and socially responsible brands
has benefited Vinamilk (Virakul, 2015). By showcasing its dedication to ethical and
sustainable practices, the company has successfully attracted and retained customers,
employees, investors, and partners who share these values. Ultimately, Vinamilk's sustainable
practices lead to substantial cost savings through enhanced resource efficiency, reduced
waste, and improved operational effectiveness. The investments made in sustainable
initiatives have significantly contributed to Vinamilk's long-term financial gains, bolstering
the company's profitability and overall stability.

6. Global strategy to support decision-making. (P5 & P6)

6.1. Effective Decision Making in a Global Context

Different approaches to decision-making

Ethnocentric:Vinamilk employs an ethnocentric decision-making approach when its

products, processes, or technologies offer a notable competitive edge or a distinctive value
proposition (Vinamilk, 2020). The company upholds consistent quality standards and uniform
product development methodologies across all markets, under the belief that its dairy
products hold superiority and uniqueness within the industry (Vinamilk, 2020).

Polycentric:Vinamilk adopts a polycentric decision-making strategy when encountering

diverse customer needs and preferences across various markets. To align with local market
conditions and cater to specific customer segments, Vinamilk tailors its marketing mix—
comprising product, price, place, and promotion (Vinamilk, 2020). For instance, the company
provides an array of product variations, sizes, and packaging suited to distinct markets, like
offering coconut milk in Thailand, condensed milk in the Philippines, and yogurt in Japan.

Regiocentric: Vinamilk employs a regiocentric decision-making strategy in regions that

share common traits or present similar opportunitie (Vinamilk, 2020)s. In its expansion
within the Asia-Pacific region, Vinamilk adopts a regional strategy, capitalizing on its brand
recognition, proficient services, and enduring partnerships to drive growth sustainably.

Geocentric: Vinamilk employs a geocentric decision-making approach when encountering

global challenges or opportunities demanding a cohesive and coordinated response. To
address this, Vinamilk adopts a global strategy for its sustainable development objectives.
This strategy involves managing quality, environmental initiatives, social responsibility, and
innovation in a consistent and comprehensive manner across the organization (Vinamilk,
2020).

The challenges and opportunities associated with global decision-making processes

Challenges:

Vinamilk faced numerous challenges in its decision-making journey. Firstly, managing

diverse cultures posed communication and alignment challenges, hindering effective
decision-making due to potential conflicts or misunderstandings arising from these cultural
differences (Vinamilk, 2020). Secondly, navigating varied legal frameworks across countries
created complexities in complying with diverse regulations encompassing legal, tax, and
trade norms.

Opportunities:

However, amidst these challenges lie significant opportunities for Vinamilk's decision-
making process. Leveraging diverse perspectives from different markets can fuel innovation
and problem-solving, enriching the depth of decision-making. Accessing a global talent pool
with diverse skill sets offers avenues for fresh ideas and expertise, augmenting the company's
capabilities (Vinamilk, 2020). Lastly, global decision-making enables Vinamilk to capitalize
on economies of scale, streamlining operations and reducing costs through standardized
processes and centralized strategies.

6.2. Objectives and Strategies for Global Decision Making

Various stakeholder perspectives in the global business environment

Vinamilk’s vision is to become a top-tier brand in the food and beverage industry, renowned
for providing trusted and health-focused nutritional products (Vinamilk, 2023). The
company's mission is to conscientiously deliver valuable nutrition to communities, driven by
respect, care, and a sense of responsibility (Vinamilk, 2023).

Shareholder: Shareholders, as the proprietors of Vinamilk, contribute their capital and

resources to the company. Their impact on Vinamilk's vision and mission is manifested
through financial backing, strategic guidance, and governance oversight. Shareholders
anticipate returns on their investment, including profits, dividends, and overall growth.
Additionally, they expect Vinamilk to uphold its values and maintain a positive reputation in
the market.

Employee: Vinamilk's workforce comprises its employees, actively engaged in the

company's operations and contributing to its overall performance. Employees significantly
shape Vinamilk's vision and mission by enacting its policies, delivering its products and
services, and fostering its culture of innovation (Vinamilk, 2023). Moreover, employees
anticipate fair treatment, equal opportunities for career advancement, and a conducive work
environment that ensures their satisfaction.

Government: The government represents the regulatory authority overseeing Vinamilk's

operations within the countries it operates in. Its influence on Vinamilk's vision and mission
lies in establishing and enforcing various laws and regulations encompassing taxation, trade,
environmental standards, and quality control that Vinamilk must adhere to (Vinamilk, 2023).
Additionally, the government anticipates Vinamilk's contributions toward the economic and
social progress of these countries, while also respecting and adhering to local customs and
norms.

Customer: The consumers of Vinamilk's offerings play a pivotal role in shaping the
company's vision and mission. Their impact is reflected in the feedback, suggestions, and
demands they express regarding Vinamilk's products and services, influencing the company's
market standing and reputation (Vinamilk, 2023). Customers expect Vinamilk to address
their needs and preferences while delivering quality, safety, and value through its offerings.

Strategies to accommodate diverse stakeholder interests in global decision-making.

Export strategy: This approach is employed by companies primarily focused on domestic

operations, occasionally exporting products to capitalize on international opportunities
(Lumen, 2023). However, these products remain unaltered and are not customized for various
markets abroad.

Standardization strategy: In this strategy, a company regards the entire world as a unified
market with minimal variations (Lumen, 2023). It employs identical products and techniques
across all countries without adjusting to local conditions or preferences.

Multidomestic strategy: Adopted when a company acknowledges the diversity among

nations, this strategy involves tailoring products and methods to suit individual local
conditions and preferences (Lumen, 2023). Different products and techniques are used in
different countries, emphasizing localization over a unified global strategy.
Transnational strategy: Companies employing a transnational strategy perceive the world
as a unified market and approach their products and techniques globally (Lumen, 2023). They
utilize consistent products and methods worldwide while also adapting them to accommodate
local conditions and preferences.

Vinamilk's strategy mirrors the transnational approach, striking a balance between global
integration and local responsiveness (Vinamilk, 2023). It sees the world as a unified market
and implements standardized processes and products across multiple regions (Vinamilk,
2023). However, it equally values local conditions and preferences, tailoring strategies to
meet diverse regional needs. This method enables Vinamilk to uphold global consistency
while meeting unique market demands, effectively blending global efficiency with localized
adaptation.

-Clear objectives for effective global decision-making processes

Objectives of Vinamilk: Achieve a minimum of 15% market penetration in identified Asian

markets within 12 months post-launch, generating a revenue increase of at least 10%
attributable to the new product line.

- Formulation of strategies to support decision-making aligned with business objectives

Step 1: Identify high-potential Asian markets like China, Japan, Korea, Thailand for the new
product line. Perform comprehensive market research to comprehend customer preferences,
behaviors, and competitive landscapes in each region.

Step 2: Devise a product strategy emphasizing quality, safety, and nutrition to meet local
standards while standing out from competitors. Customize product features, flavors, sizes,
and packaging to align with local tastes. Innovate production processes for improved
efficiency.

Step 3: Create a pricing strategy factoring in production costs, perceived value, and customer
demand. Set competitive yet profitable prices that attract customers and foster growth.
Deploy discounts or promotions to drive sales and market presence.

Step 4: Implement a distribution strategy ensuring widespread availability and accessibility of

products. Forge robust partnerships with local distributors, retailers, and wholesalers to
efficiently serve customers. Leverage online platforms to expand market reach.
Step 5: Craft a promotion strategy to raise awareness and interest in the new product line.
Employ a diverse mix of advertising, PR, sales promotions, and personal selling across
various media channels like social media, websites, TV, radio, newspapers, and magazines.
Engage local influencers or experts for product endorsements.

Step 6: Evaluate strategy efficacy using KPIs like market share, revenue, profitability,
customer satisfaction, and loyalty. Compare actual results against anticipated outcomes,
identifying discrepancies and their causes. Make necessary corrections or adjustments based
on insights gained.

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