3131 Phuong Phi Minh 10210060 GBE A2.1 15316 830918002
3131 Phuong Phi Minh 10210060 GBE A2.1 15316 830918002
3131 Phuong Phi Minh 10210060 GBE A2.1 15316 830918002
A. INTRODUCTION.................................................................................................................3
B. BODY...................................................................................................................................3
1. Evaluate the different ways decision making can work effectively in a global context.
........................................................................................................................................12
C. CONCLUSION...................................................................................................................16
REFERENCES.......................................................................................................................17
A. INTRODUCTION
The purpose of this task is to assess the manner in which the worldwide operations of
Vinamilk have an effect on the structure, culture, and functions of an organization.
Additionally, the decision-making process at Vinamilk would benefit from the establishment
of a worldwide strategy.
B. BODY
I. The influences of globalization on organizational governance and leadership,
structure, culture and functions
1. McKinsey 7S Model of Organisational Structure
1.1 Strategy
Vinamilk's market growth plan shows a strong awareness of the global business landscape.
The organization shows its flexibility and response to changing client requirements by
aligning its strategic approach with market developments. Vinamilk can anticipate trends and
seize growth possibilities with this long-term approach. Therefore, Vinamilk can quickly
adapt its product offers, distribution routes, and marketing tactics to remain ahead of market
developments, giving it a competitive edge. A strong vision, mission, and values complement
this strategy, giving Vinamilk credibility and purpose, promoting stakeholder confidence and
commitment. The organization builds a responsible and ethical reputation by upholding its
basic principles of honesty, respect, and fairness.
1.2 Structure
Figure 1: Vinamilk organization structure.
1.3 Systems
Milk, yogurt, cheese, and other dairy-based drinks and snacks are Vinamilk's main
commercial emphasis, as well as distribution and marketing. Raw ingredients are sourced
from local farmers, goods are processed and manufactured in state-of-the-art facilities, a
wide distribution network is established, and a strong brand awareness is built via focused
advertising and marketing campaigns. In order to maintain a competitive edge in the
marketplace, the corporation invests heavily in R&D to create new and better products
(VINAMILK, 2023) .
Vinamilk may be able to get access to new markets, new sources of revenue, and increased
brand awareness by expanding internationally. Competition, regulations, currency concerns,
and cultural gaps are just some of the issues that emerge as a result. Vinamilk needs careful
planning, localized responses to the specific problems of each market, and constant
innovation if it is to thrive in today's interconnected global economy.
1.4 Skills
Due to its varied, skilled, and capable workforce, it brings benefits for Vinamilk in the process
of a worldwide development edge. First, cross-cultural communication skills enable
collaboration with foreign partners, consumers, and coworkers. Foreign-language staff
improve global contacts. Second, adaptation and flexibility matter. The company's personnel
can adapt to new trends and learn more. Third, innovation and originality are crucial to
remain ahead of the competition and satisfy global customer demands. Employees with
excellent analytical and problem-solving abilities may also handle complicated worldwide
market difficulties. Finally, comprehending international legislation, trade policies, and
cultural norms can assist Vinamilk navigate regional legal and cultural issues. Vinamilk
personnel can grab opportunities, accelerate growth, and stay competitive in the global
market with these talents and skills.
1.5 Staff
Nearly 20,000 people are employed by Vinamilk across more than 40 local and international
locations. The organization believes that the people who work there are the most important
aspect in achieving its goals between 2022 and 2026 (Hoai Phuong, 2022). The corporation
allocates a portion of its yearly budget to staff training initiatives, with the bulk of that going
toward external training programs (VINAMILK, 2023). As a result, Vinamilk benefits from the
efforts of exceptionally qualified staff members. Employees are paid a competitive wage
under a system that rewards merit and encourages retention (VINAMILK, 2023). What
makes this firm stand out is that it prioritizes the well-being of both its direct employees and
the indirect workers that make up its supplier chain. Vinamilk is committed to assisting its
business associates in achieving their goals. Employees who are always committed, actively
involved, and giving their all to Vinamilk's shared cause are the result of these elements.
Vinamilk is able to gain a competitive edge and thrive in the globalization process thanks in
large part to the care and attention it pays to its human resources and the many partners
along its supply chain. Vinamilk t will succeed in its long-term worldwide business goals
thanks to its hard-working employees, high-caliber human resources, and reliable
collaboration with its partners.
1.6 Style
Vinamilk's top brass are lauded for their innovative and forward-thinking management style
(Huyen Anh & Thanh Nhan, 2021). They are examples of a transformative and strategic
mindset that prioritizes things like foresight, creativity, and flexibility. Vinamilk's management
is progressive and supportive of employee initiative, according to the company's 2023 report.
They stress the importance of fostering an atmosphere where employees are encouraged to
take initiative and where talent is nurtured and appreciated. The company's dedication to
social responsibility and sustainability is shown in the ethical and responsible leadership that
informs all of its choices. Vinamilk's first priority is always the happiness of its customers,
therefore they make it a point to learn about and cater to their demands on a consistent
basis. They work together to make decisions and accomplish tasks, with the end objective of
ensuring the company's continued success in the cutthroat dairy sector. Because of this,
Vinamilk has been able to swiftly adjust to developments in the worldwide market.
1. Power Distance
China has a high PDI score because of the country's widespread acceptance of
socioeconomic inequality and the subordinate-superior relationship. It's obvious that people
respond differently to different levels of authority. In such a society, people seldom move up
the social ladder. Vietnam likewise does quite well on the PDI scale, with a score of 70.
There is a clear power dynamic between the two nations. People prefer to respect and obey
those in positions of power since they are the ones who make decisions. Vinamilk's upper
echelons have a more collaborative approach to management, favoring increased employee
autonomy and openness to new ideas. However, Vinamilk's business in China is not
significantly impacted.
2. Individualism
Both China and Vietnam have individualism scores of 20 on Hofstede's scale, indicating that
they are similarly collectivistic. Long-term bonds and communal interests are prioritized
above private ones in both cultures. To be loyal to one of these organizations is rewarded
more highly than obeying the law. Both ancient and modern societies suffer from the effects
of in-group bias in the workplace. Vinamilk provides people with a fair chance at employment
and develops its human resources in accordance with their individual skills. Workers are
organized into teams according to their specific skill sets and encouraged to work together to
accomplish organizational objectives. Individually tailored assignments are made to each
worker. Employee engagement and performance may be gauged on an individual basis, and
internal collaboration is strengthened.
3. Masculinity
Success and accomplishment are highly prized in China, which is a very masculine culture.
Chinese workplace culture is strongly influenced by a success-oriented mindset. Everyone
from teachers to students puts their job and studies ahead of their own personal time.
Vietnamese culture, on the other hand, is more feminine, with an emphasis on "working to
live" and striking a healthy work-life balance. Vinamilk is a business with the goal of fostering
work-life harmony for its people. In addition, staff members are frequently included in the
decision-making process. Therefore, the expectations of employers and clients in China may
be influenced by the country's predominant male orientation. Vinamilk needs to adapt its
management style to the success-oriented culture of China in order to effectively serve the
Chinese market and motivate and inspire its local personnel.
4. Uncertainty avoidance
The Uncertainty Avoidance score of 30 on the Hofstede scale indicates that China and
Vietnam have a similar risk perception. Both Chinese and Vietnamese people are eager to
discover practical answers to pressing issues. Regulations that are unclear or ineffectual
may be abandoned or reworked to better suit the situation, and deviations from the standard
may be tolerated to some extent. This demonstrates the stability of Chinese and Vietnamese
society. Therefore, Vinamilk's benefits rules for workers and partners are simple to manage,
however there is room for further flexibility in timetables and programs.
6. Indulgence
Similar low ratings on the Indulgence vs Resilience dimension (China: 24, Vietnam: 35)
indicate that both countries are characterized as restrained cultures. This implies that
individuals in both cultures are cynical and pessimistic, and they put little value on getting
their needs met or having fun. They believe their behavior is limited by societal conventions
and that rewarding themselves goes against moral principles. The level of constraint varies
between the two countries. China scored lower (24) than Vietnam did (35), indicating that
Chinese culture is more limiting. There may be higher standards of self-control and social
compliance in China. Work and responsibilities might take precedence over play, and people
and enterprises can become more serious and disciplined.
Vinamilk provides concrete evidence of adhering to legal requirements, social norms, and
sustainable development practices. Vinamilk nevertheless satisfies the standards of the
Chinese market, notwithstanding this gap between Vietnam and China.
EVALUATION:
Vinamilk's activities in China and Vietnam are similar because of the small number of
cultural variations between the two nations. Where hierarchical institutions are not commonly
recognized, Vietnam and China have a small power differential. Vinamilk's executives are
more likely to be receptive to employees' ideas and to give them greater autonomy, despite
the company's centralized management structure and heavy focus on honoring authority
figures. Individualism is low in Vietnam and China as well. Vinamilk stresses the unity of the
team. Vinamilk also operates in accordance with all applicable laws and regulations, giving
its customers and other players in the Vietnamese and Chinese markets peace of mind. The
only real differences between the two markets are the sexism and short-termism that
characterize the former. Vinamilk has to learn how success-oriented the Chinese consumer
is, and then tailor its marketing and product offers to that. The expectations of employers
and clients in China are sometimes skewed toward men. Vinamilk should adapt its
management style to fit with China's success-oriented culture, taking into account the work
ethic and dedication of the local employees. Considering the Chinese market's practical
choices and limitations, Vinamilk's long-term focus should center on the product's intangible
benefits. In addition, the company's interactions need to be honest and open, addressing
any issues that may arise from the company's customers.
For employees:
Businesses need to generate well-paying employment opportunities. Finding new
capabilities, fostering technical advancement, and producing goods are all part of a
company's economic commitment to its employees. Businesses also have a responsibility to
provide an atmosphere where employees may flourish professionally, feel comfortable on
the job, and protect their personal information.
For investors:
Vinamilk was one of the first companies to embrace IR. Saying encompasses all the means
by which a company communicates with its investors in order to meet their information
needs. Vinamilk has established an IR division staffed by PR and accounting experts. This
unit will be responsible for updating Vinamilk's business associates on a regular basis.
Vinamilk's monthly, quarterly, and annual financial statements are always available on the
company's website in their entirety and completeness. Additionally, there are descriptions of
the company's production and financial outcomes at each level. When it comes to meeting
their financial commitments to shareholders, Vinamilk Joint Stock Company has always
excelled.
EVALUATE:
The company's dedication to moral and environmentally responsible business practices has
significantly improved Vinamilk's standing in today's global markets. By putting the well-
being of its customers first, Vinamilk has won their loyalty. Its use of modern production
methods and adherence to international standards for quality assurance show that it is
committed to making high-quality goods. Customers and authorities alike may rest assured
since the firm is honest and follows the law.
Vinamilk's dedication to its staff members' personal and professional development results in
a highly engaged and productive team. This dedication to employee growth increases
productivity and work happiness, which in turn benefits the organization as a whole.
Investors have more faith in Vinamilk's financial performance because of the company's
efforts to improve transparency and accountability through its investor relations.
It's also worth noting the company's commitment to sustainable growth. Vinamilk
demonstrates its dedication to reducing its environmental effect via a number of measures,
including the reduction of greenhouse gas emissions, improved waste management, and the
use of sustainable farming methods. This strategy helps Vinamilk appeal to the rising
number of people across the world who are interested in purchasing ethically made products
that also benefit the environment.
Scenario Planning and Strategy Development: Vinamilk uses scenario planning, which
relies on counterfactual reasoning, to come up with numerous tactics for a variety of
potential outcomes. This method equips the firm with the tools it needs to foresee a wide
range of potential outcomes in the global market and develop strategies that can easily
accommodate these shifts. With the help of scenario planning, businesses may be ready for
a variety of scenarios and respond quickly to changes in the global market. Counterfactual
thinking can significantly impact decision-making effectiveness in Vinamilk's global context.
By encouraging reflection, learning from past experiences, and stimulating creativity, the
company can make more informed and resilient decisions in the ever-changing global
market. Embracing counterfactual thinking as part of its decision-making process allows
Vinamilk to navigate complexities and seize opportunities, contributing to the success and
growth of its global operations.
Framing has a dramatic impact on socio-economic policies across society and slight
“nudges” can change people’s behavior in more productive and positive ways.
Framing for Market Entry Strategies: Decisions can be affected by the way prospective
risks and rewards are presented when weighing market entrance tactics in various nations.
Vinamilk may be encouraged to expand into new areas and take advantage of growth
prospects by presenting data in a good manner on market potential, customer behavior, and
competitive landscapes. In contrast, presenting data in a cautious manner may inspire the
organization to perform extensive market research and take precautions before venturing
into a new market.
Nudging for Ethical and Sustainable Practices: Within Vinamilk's worldwide operations,
nudging may be used to encourage ethical and sustainable behaviors. Making sustainable
practices the default option or highlighting the positive environmental and social implications
of specific actions can help businesses inspire their workforces to think about and prioritize
sustainability in their day-to-day work.
EVALUATION:
Vinamilk's economic activity is examined in a worldwide framework, exposing both its
strengths and weaknesses. Through the application of sound leadership transition practices
and a methodical approach to globalization, the firm has shown impressive development and
market expansion. Vinamilk has been able to keep its stability and creativity despite many
leadership changes because of its emphasis on leadership development and acceptance of
a wide variety of leadership styles. The company's entry into the Chinese market is the result
of its internationalization process, which was informed by in-depth market study and tailored
plans. Increased flexibility to adapt to the ever-changing global marketplace and the
intensifying challenges of competition are two areas where the company might need some
work. If Vinamilk wants to grasp opportunities and efficiently manage risks, it needs to
consistently invest in market research and remain ahead of evolving trends. The corporation
may improve its image and standing in the global market by doing more to incorporate
sustainability and ethical principles into its worldwide operations. Vinamilk's foreign
economic performance is a result of a well-executed internationalization process and sound
leadership transformation concepts. Vinamilk can increase its global competitiveness and
seize prospects for long-term growth if it maintains a flexible and responsive approach to
strategy and the market.
Recommendation:
Vinamilk's worldwide decision-making is improved by the Stakeholder Advisory Council
because it encourages inclusion and guarantees that different opinions are taken into
account. By maintaining open lines of communication and interacting with key
constituencies, businesses may better serve their workers, customers, investors, and local
communities while also achieving their own business goals. Vinamilk's worldwide image and
long-term performance will benefit from this plan since it highlights the company's dedication
to responsible and sustainable business practices.
C. CONCLUSION
This assignment evaluates how Vinamilk's global operations impact the structure, culture,
and functions of an organization. In addition, establish a global strategy to aid Vinamilk's
decision-making.
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