•Nguyễn Thị Phương Anh

•Nguyễn Thị Minh Hằng

•Nguyễn Lan Phương
Group 7 •Cao Thanh Thảo
•Chu Phương Trang
•Lê Thị Thu Trang
 CONTENT

BACKGROUND

THE RADICAL CHANGE IN

ORGANIZATIONAL STRUCTURE

RECOMMENDATIONS

Q&A
BACKGROUND
 HISTORY

FIRST DAIRY VINAMILK ORGANIC

ESTABLISHED FARM FRESH MILK
1976 2006 2016

1995 2010
FIRST DAIRY INTERNATIONAL
FACTORY INVESTMENT
VISION
To become a world grade brand in food and beverage
industry, where people put all their trust in nutrient and
health products

MISSION
To deliver the valuable nutrition to community with our
respect, love and responsibility
CUSTOMERS
 Diversificatio Quality
n assurance

CUSTOMER
VALUE
Reasonable Business
price ethics
RESULTS
• TOP ASIA-PACIFIC'S 200 BEST
UNDER A BILLION 2010
• 1ST POSITION IN TOP 50
VIETNAMESE BEST LISTED
COMPANIES 2013 ( BY FORBES
VIETNAM)
• NATIONAL BRAND IN
2010,2012,2014 BY MINISTRY
OF INDUSTRY & TRADE
TOP 10 FOODS AND DRINKS BRANDS CHOSEN BY
CONSUMERS IN 2018
 PLAN
Fresh milk
200000 cows in 2020 production : double in
2020

Capacity: 800million Export: yogurt, fresh

litter per year milk, fruit juice..

Focus more on
international market,
especially Africa by
Consolidate the means of doing
position in Asia research to suit
regional culture,
expand distribution
system
THE RADICAL CHANGE IN
THE ORGANIZATIONAL
STRUCTURE OF VINAMILK
 Two versions of structure

The old version The new version

 Advantages of old organizational structure
Promote full advantages of each function

Departments receive orders and report to a superior

managers
 Highest level of managers have close examination
Advantages  make effective decision

Wide span of control

Low level of concentration help chief executive
make better decisions
Large decentralization  help low-level managers
independent in decision-making process.
Disadvantages of old organizational
structure
• Easy to cause conflicts of
objectives among departments
• Loss of money
• The narrow vision of Directors
• Too much responsibility on the
CEO

Source: Translated from

Vinamilk
TO LIMIT THE DISADVANTAGES
OF OLD ORGANIZATION
STRUCTURE, WHAT DID
VINAMILK DO?

A SMALL BUT IMPORTANT

CHANGE IN THE
ORGANIZATIONAL
STRUCTURE
 The comparison between two versions of structure

The old version The new version

Which trend in organizational designs do you think the Vinamilk has followed
when looking to both its old and new organizational structure?
III. Recommendations for the Vinamilk’
CEO:
Use Use IT to maintain centralized control of operations

Try to create the organizational network for the

Try whole company

Make use of each department’s staffs to establish

Make the consultancy mechanisms

Put efforts into recruiting and training new talents

Put to support decentralization
 Which factors make Vinamilk
Discussion choose functional structure?
 FACTORS

Operating Resources Strategy Scale

Environment
THANK YOU FOR LISTENING