Table of Contents

Chapter 1: Introduction................................................................................................................2
1.1 Background Company:.......................................................................................................2
1.2 Vision:...................................................................................................................................2
1.3 Mission:.................................................................................................................................3
1.4 Goals and Objectives:..........................................................................................................3
1.5 Culture:.................................................................................................................................4
1.6 Value:....................................................................................................................................4
1.7 Organization structure........................................................................................................4
1.8 The Strategy of Kinh Do Cooperation...............................................................................4
Chapter 2: Scenario Analysis........................................................................................................5
2.1 Business process:..................................................................................................................5
2.2 Business functions:...............................................................................................................5
2.3 The interrelationship between the different process and function:................................6
2.4 Methodology to be used to map process to the organizations objectives and goals:....7
2.5 The output of the process and the quality gateway at Kinh Do Corporation:...............8
2.6 The plan which promote goals and objectives for own area of responsibility:..............9
2.7 The appropriate systems to achieve objectives:..............................................................10
2.8 The work activities meeting the operational plan through effective monitoring and
control:......................................................................................................................................12
Chapter 3: Recommendation and conclusion:..........................................................................13
References:...................................................................................................................................14
Appendices:..................................................................................................................................16
Appendix 1: The Organizational Structure of Kinh Do Corporation................................16
Appendix 2: Process Flowchart..............................................................................................17
Appendix 3: The SIPOC Process............................................................................................18
Appendix 4: The Cross-functional Flowchart.......................................................................19
Appendix 5: The Planning Process.........................................................................................20
Appendix 6: The Human Resources Plan..............................................................................21
Appendix 7: Work Break Down.............................................................................................22
Appendix 8: Overtime Policy and Procedures......................................................................23
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Appendix 9: Gantt chart.........................................................................................................25

Appendix 10: Critical Network Diagram..............................................................................26

List of Table and Append

Table 1 The Objective of Kinh Do Corporation..........................................................................3
Table 2 The Functional of Different Department.......................................................................6
Table 3 The IOP of KDC...............................................................................................................7
Table 4 The Raw Material Requirements....................................................................................8
Table 5 Kinh Do Product Specification........................................................................................9
Table 6 The Plan for each Level Management..........................................................................10
Table 7 The Risk Management Factors.....................................................................................11
Table 8 The Critical Success Factors.........................................................................................12
Table 9 The Critical Path Analysis.............................................................................................13

Y
Figure 1 The Mapping Process.....................................................................................................5
Figure 2 The element of planning.................................................................................................9

Chapter 1: Introduction.
1.1 Background Company:
Kinh Do Corporation (KDC) was established in 1993 in Ho Chi Minh City. It beginning as a
snack company as a small family business. Up to now, Kind Do is one of the best brand food
stuff in Vietnam with 300 products under 30 brands. They become one of the popular brand in
Vietnam with innovative product strategy and high quality products. Main office of company is
located in Ho Chi Minh City.
1.2 Vision: The vision of Kinh Do is Flavor of life. In the future, the personals life will change
very quickly so they need a convenient product but it must ensure their health. Realizing the
need of people so Kinh Do Company create a creative, nutritious and convenient product to meet
the customers daily needs.
1.3 Mission: The stakeholder is very important for the existence of company so in order to run
business effectively the main mission is meet the stakeholders satisfaction.

Any kind of

business has five important group of stakeholder are customer, shareholder, employees, partner
and community.
Customer: Kinh Do offer a creative product with high quality then they can meet the customers
satisfaction.
Shareholder: Maintaining the steady growth of company so company can attract more new
investor and shareholder.
Employees: Having responsibility to develop and promote the employees skills in order to get
the best performance.
Partner: Building the sustainable distribution channel for all partner such as supplier, retailer, and
supermarket in whole market.
Community: Contribute the great impact to build the better community. In addition, Kinh Do
continue open more sponsorship and social activities.
1.4 Goals and Objectives: Both of them effect directly the culture and structure of Kinh Do.
Goals: Become one of Vietnam leading company in the food industry. In the top ten big brand in
Vietnam.
3

Objectives

Target

Revenue

Reach 5000 billion VND by 2015

Profit margin

Gain more 400 million revenue per month in 2014

Gross profit 40% of total cost

Production

Increase 500,000,000 units per year

Introduce new products in the next period

Sales volumes

Increase the sales in national 25 30 %

Expand the overseas market
Table 1 The Objective of Kinh Do Corporation.

1.5 Culture: It is one of the important factor success that influence on the belief, attitude and
value in any organization. At the present, Kinh Do Cooperation is a larger business with over
8000 employees mostly high qualified so they apply the tall structure for whole company.
Therefore, the task culture is suitable for manager to apply inside company. Company has a lot
of department with different functions so each individual will work their own task depend on the
ability and work skills. This is the main principal of task culture is to get the job or mission done
as much as possible. Besides that, KDC creates freedom environment in their working places
brings out creativity and innovation in every individual.
1.6 Value: In order to run business, company should also own the specific value that make them
different in market. The core value of KDC has six factors are Innovative, Dynamic, Leader,
Quality, Trust and Vision (Kinh Do Annual Report, 2010). In addition, it is also the competitive
advantages of organization include the customers satisfaction, quality of product, the
responsibility and attitude of employees.

In Kinh Do, manager create the professional

environment for creative and all employees and staff are respect, listen and share with each other.
They realize the responsibility and try to make effort in order to achieve the big goals. In
addition, KDC is a company has the responsible with community through the social activities
then it can increase the image of company. This is the value of company that make them
different than other competitor.
1.7 Organization structure (See Appendix 1).
The organizational structure of Kinh Do Corp is functional and matrix with nine different
department within company. Each department need to coordinate effectively and work together
4

to run company. The structure is the vital part in the success of company. By using this
structure, KDC can gain the advantages from flexibility that mean the employee will divide into
special group depend on their ability.
1.8 The Strategy of Kinh Do Cooperation:
Company continues develop their strategy based on the Mergers and Acquisitions (M&A)
Focus on asset efficiency and overall profit growth
Quantum of result now must equal better quality of result as well
Scales not only in sales but also profitability
(Sources: Kinh Do Annual Report 2011)

Chapter 2: Scenario Analysis.

2.1 Business process: It is the collection activities that organization use it to create product and
services for consumer of business.

There are many process in company such as demand

forecasting, sales order processing, new product development etc. It can be divided into three
types are Management, Operational and Supporting process.

Inputs:
Capital
Raw materials
People
Information
Managerial,
techical skills
and knowledge

Transformation
process:
Production
Maintenance
Boundary
spanning
Asaption
Management

Figure 1 The Mapping Process.

Outputs:
Finished Product
Services
Profit
Rewards

2.2 Business functions:

Department

Function

Production

Produce product for converting input into output through the

process of production

Purchasing

Order the raw material and equipment required for production

and other process.

Research and Development The department is responsible in innovation process to bring

(R&D)

the new product for customer and market.

Marketing & Sales

It is responsible for creating a strong relationship with

customer and promoting product through a various channel
such as advertisement, newspaper, social network.
The sales department will deal with all aspect of selling and
distribution channel.
Creating the sales forecast

Finance & Accounting

Raising the financial of company

Recording all financial activities of company
Responsible for controlling direct cost and indirect cost

Human & Resource

Recruiting, training, evaluate and compensate employees.

Making the personal plan

Logistics

Make relation between high management and working labor

Inventor management
Table 2 The Functional of Different Department.

2.3 The interrelationship between the different process and function:

For a manufacturing company as Kinh Do Corporation, they has a lot of department such as
Production, Marketing & Sales, Research & Development and Human Resources etc. Each
department owns the key function and mission. In order to achieve the companys mission and
goals, all department should have good relationship to support and work together. Company
requires a lot of process will support for department finish their function. They will transfer
input factors (labor, capital, building, machinery etc.) into output (product and services) that
make the valuable to customer. In company, the business function is a special are that they
6

should pay attention in order to finish the mission. For each department, the process and
function influence each other. Company should maintain the relationship between all functional
and process to reach the best performance. Company cannot achieve their goals and objectives
when one of process has the trouble that make all project will delay. This is the importance of
inter-relationship between process and function within company. In general, the success of
enterprise will depends on the ability to communicate the core functions and the key activities of
the business
2.4 Methodology to be used to map process to the organizations objectives and goals:
The process mapping is an instrument to describe the process of KDC to achieve their goals.
The method is very important to provide the overview of key activities and give the direction for
manager. Thus, it will improve the process inside of KDC. There are a various methods which
can be used to map process in KDC include Input Process Output (IPO) for each department,
cross-functional process flow chart and SIPOC diagram.
Manufacturing Process Flow Chart: (see Appendix 2)
The SIPOC Process in KDC: (see Appendix 3)
The Cross-functional Flowchart of Recruiting in KDC: It explain the core process and key
activities of Kinh Do Corporation that lead to businesss objectives. The flowchart describes the
process of recruiting employees in KDC (see Appendix 4)
IPO for production department: This method describe three main stages include Input, Process
and Output.
Functional Area
Marketing & Sales

Input

Process

Output

Market and product Serve and support Sales strategy

information,

customer

Revenue

Arranging financial

Financial Statement

potential customer
Finance

Financial
information

and

data.

Customer
data

credit

Human Resources (HR)

Individual

Training employees

Employee training

information

Making the personal and certification

Skills data

plan

Table 3 The IOP of KDC.

Through all the process mapping above Kinh Do Corporation can identify the key activities and
perform step by step for each core process. Firstly, KDC must have a good resources finance,
employees, raw material and machinery in the input then they need to set the plan for controlling
and monitoring whole of process.
2.5 The output of the process and the quality gateway at Kinh Do Corporation:
Quality gateway is the quality assurance to meet all product requirements.

It is the most

important process before product deliver to market. The high quality of product will build the
reputation for company. This stage will ensure the exact requirement and avoid the problem as
much as possible. Therefore, the production process of Kinh Do Corporation need to pass the
strictly test to meet the quality requirement. The highest quality will allow to KDC can sell
product at the higher prices.
Kinh Do produce a lot of different product include moon cakes, cookies, snack, cracker,
chocolate, candy, cake and ice cream. In order to success in the quality gateway, KDC should
make the product specification through three main factors are physical, functional and
behavioral. Each product own the key specification that must be satisfied. Up to now, company
has applied ISO 9001:2000 for quality management.
Material requirement: In order to product the high quality of product, manufacturing has to a
good raw material from supplier. This is the reason why company need to give the material
requirement from the input stages of production.
Pastry
Sugar
Fresh milk:
Steel
Fabric

Fresh,
Natural, fresh replace
From the famous supplier such as Vinamilk
Mild and stainless steel
Beautiful, colorful, diversity, eye catching, smooth, soft
Table 4 The Raw Material Requirements.

Kinh Do Product Specification: Any manufacturing company must has the product
specification in order to ensure the quality of product before introducing in the market.
Product
Moon cakes

Physical
The weight from 200 gram to 700

Functional
Healthy

Beautiful design

Fresh

The standard packages

Delicious
Table 5 Kinh Do Product Specification.
KDC can check the quality of dairy product on property value and nutrition pack by testing the
samples. Now, KDC is applying the quality management system ISO 9001:200 so in order to
compete with other company must upgrade the latest ISO 9001:2008.
2.6 The plan which promote goals and objectives for own area of responsibility:
The area of responsibility of Kinh Do Corp is Internal & External customers, Customer
orientation, Market Research, Product development, and time management and CRM.
Therefore, company need to focus on all of them.
The planning: It is a vital part for any business in order to achieve goals and objectives. The
process of planning include identify objectives and set up future activities. It will give the clearly
direction for manager to develop the company goals and objectives. The planning process (see
appendix).

Objec tives

Action

Resources

Figure 2 The element of planning.

Implementation

The controlling: In business environment, it has a lot of unexpected events so it is necessary for
manager to control the system. Company need to set out their objectives by using the SMART.
It is one of the importance method to access the validity of objectives. The criteria of objectives
has five factors include Specific, Measurable, Achievable, Realistic and Time based.
Goal: Become top three big brand in Vietnam
Specific: Increase 41 % market share to lead whole food industry,
Measurable: The target revenue reach 5000 billion VND in the year 2014
Achievable: Improve the customers satisfaction in the national and international market
Realistic: Human Resources need to improve the employees kills and operate more training
courses.
Time based: Achieve within 12 months, the regular progress will update every months.
At the same time, these objectives are achievable because if it was too difficult, KDC cannot
achieve in the future. The deadline is also play role for increasing the motivation to execute the
tasks.
Management by objective: It is the popular process of setting objective in modern organization.
Level of management
Strategic

Action Plan
R&D should be a base for QMS
Requirements is referenced from ISO 9001-2000 to implement
strategy to get ISO certificate in 2014

Tactical
Operation

Process design document for production

Criteria of quality in production
Monitoring and controlling process from beginning to finish.
Delegate task for manual worker, monitor and control performance
Set up rules for performance in workshop
Table 6 The Plan for each Level Management.

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2.7 The appropriate systems to achieve objectives:

Quality control: KDC must be followed the Total Quality Management in order to satisfy the
international standard of quality. There are many competitor and substitute product that mean
KDC need to improve the quality and efficiency of product and services.
Product development: The purpose of product development is to determine the potential client
and maintain the existing customer. Kinh Do Corporation has many development strategy that
help them become stronger player in the market. Focusing on the main product s are Moon
cakes, snack and ice cream then company can gain more customer and expand the domestic. It
enable company to set performance standard and support manager make the new strategy for
product
Customer orientation: Business cannot live without customer so company not only manage
inside of organization but also focus on the relationship with customer. When company meet the
customers satisfaction then company can gain a lot of benefits include the group of loyal
customer, the increase of sales and reputation. Therefore, the main purpose of customer
orientation is attract and retain new customer.
The risk management of KDC: In the project of planning, it will provide valuable information
for making the contingency plan of project. Therefore, it can support manager to manage the
risk effectively. There are many causes of risk include three factors are environment, human and
system that effect directly the performance of business.
Environment factors
Human factors
Natural disaster: typhoon, The accident in
flood

place

Cut electricity

The theft or terrorism

System factors
working Computer virus
Technical error

The bankruptcy
Table 7 The Risk Management Factors.
The contingency plan: It is very important to make contingency plan especially a big company
as KDC. Company employ the 24 hours security system to secure the warehouse and factory.
They need to insurance on the equipment, machinery, vehicles to avoid unexpected risk such as
stolen, damaged. In addition, company always keep all records of receipt to ensure the

11

purchasing performed correctly. When the distribution channel has the problem in the delivery
process, company will contact with other supplier make sure the process will not delay.
Kinh Do Cooperation always follow the Vietnam Health and Safety law in working place. It is
very important for company focus on this topic. Because the employees is the vital factor in any
process of company.
Critical success factors (CSFs): Many organization use it to measure the effective of
performance. The outcome of business based on the CSPs.
Critical Success Factors
The Customers Satisfaction
The Market Share
The Employee Turnover
The Quality of Product

Target
Increased 80 % satisfied in national market
Maintain and reach to over 50 %
Reach to 30 % per year
Meet the ISO qualification
Table 8 The Critical Success Factors.

Policy and Procedures: The office procedure and system will make sure the different function
of department work effectively. It will provide the guidelines for management decision- making
and control the right activities. This is the Overtime Policy and Procedures in KDC (see
Appendix 8).
2.8 The work activities meeting the operational plan through effective monitoring and
control:
The purpose of monitoring and controlling is to communicate with projects process and
operational plan. Therefore, manager need to use the Project Management tool that is the best
method to implement appropriate systems.

This tools include three methods are Work

breakdown structure (WBS), Critical Path Analysis (CPA), Gantt chart.

This report will

represent the introducing new product of KDC by using a various method mentioned above.
Work breakdown structure: It is the key management project tool that help KDC understand
which the important task. Manager can use this tool to identify and set up plan for next project
of organization. (see Appendix 7)
Gantt chart: It is represent the task over period of time by using line or bar. It used to schedule,
coordinate need to complete the companys objectives so manager can easy to see the

12

relationship between activities and time. The Gantt chart of introducing new product in KDC
(see Appendix 9)
Critical Paths: It is a method used to complete project on time by focusing on the key task. In
order to construct a CPA, planner need to estimate the elapsed time for each activities. It gives
the project management the correct date of project and the flexibility float activities,
Activity

Activitys name

Predecessor

Duration(months)

Market research

Product design

Manufacturing analysis

Choose the best product design

B,C

Make the marketing plan

Production process

Detailed product design

Checking prototype

Finished product

F,H

Order component

Paths
A-B-D-E
A-B-D-F-I-J
A-B-D-G-H-I-J
A-C-Dummy

Durations
1+3+1+1=6
1 + 3 + 1 + 3 + 1 + 1 = 10
1 + 3 + 1 + 3 + 1 + 1 + 1 = 11
Critical Path
1+1+0=2
Table 9 The Critical Path Analysis.

From the information of table, manager can know the critical path are A-B-D-G-H-I-J that the
longest path on the network. Therefore, KDC need to focus on this process because it is the most
important. The total duration of the project is expected to be 11 months in order to complete all
activities. The network diagram will represent in Appendices (see Appendix 10)

Chapter 3: Recommendation and conclusion:

Kinh Do Cooperation (KDC) is still one of the biggest brand in the Vietnam food industry.
Therefore, they need to have more creative strategy to reach the bigger successful in the future.
In the beginning, company has early set out the company vision, mission, goals and objective to
direct business. KDC is a manufacturing company so they apply strict quality management
system in production and performance measurement to ensure quality from input to output. It
13

will improve the reputation of Kinh Do. The main mission of KDC in period 2013 2015 is
become the international brand. In order to achieve this mission, company provide objectives
and actions for each department within organization to make total company effort to complete.
Expanding the business scales, KDC should notice these follow factors. Firstly, the structure of
organization must be strong and flexible because it effect on the management to manage
performance, communicate and ensure task performance correctly and rapidly. Besides that, it
can help company can adapt with the change of market. In addition. KDC should perform their
business with six departments include Financial, Production, Marketing, R&D, HR and Quality
Management. They must ensure the coordinate between department run smoothly and
effectively. Manager can use the management project tools to control and manage all activities
and process of company such as WBS, CPA, and Gantt chart etc.
Finally, to achieve the national and international standards, KDC must follow and apply them as
soon as possible before company set up the new plan to achieve it. This is the importance of
quality management for the business. Besides that, if the company apply these standards early
in quality control, it will enable to company to raise up their standard and quality management
department will have strong base to perform their work efficiently.

14

References:
Business Essentials: Management Communication and Achieving Results (2010) [book]. Essex:
BPP Learning Media.
Functions of Different Department [online] (2014). Available at:
http://www.dineshbakshi.com/igcse-business-studies/business-organisation/revision-notes/884functions-of-different-departments [Accessed 5 June 2014].
Key Success Factors [online] (2014). Available at: http://totalsuccesscenter.com/businesssuccess/key-success-factors/ [Accessed 5 June 2014].
Kinh Do Annual Report, 2010. Vietnam: Kinh Do Corporation.
Kinh Do Corp: Bitter and Sweet MAs [online] (2014). Available at:
http://vccinews.com/news_detail.asp?news_id=27368 [Accessed 4 June 2014].
Kinh Do Websites [online] (2014). Available at: http://www.kinhdo.vn/ [Accessed 4 June 2014].
Process Mapping [online] (2014). Available at: http://www.processmaps.com/mapping.html
[Accessed 6 June 2014].
Work Breakdown Structure [online] (2014). Available at:
https://www.workbreakdownstructure.com/ [Accessed 4 June 2014].

15

Appendices:
Appendix 1 The Organizational Structure of Kinh Do Corporation.

16

Appendix 2: Process Flowchart

17

Appendix 2 The SIPOC Process.

Supplier
Worker

Input
Raw
material

Electricity

Power

provider
Water

Supply
Water

provider

Supply

Process

Raw
materials
washing

Sclicing/milli
ng

Frying

Customer
Kid,

product:

Student

Snack

Packaging

18

Output
Finished

Appendix 3 The Cross-functional Flowchart.

19

20

Appendix 4 The Planning Process.

21

22

Goal

Objectives

Monitoring

Responsibility

Timeline

Create high skilled, Create a high professional Open skills training 2 CEO

Each

disciplined

take 3 months for VND

complete

training. The course

Second

divide

course

active labour force

and HR team to support the times a year for each HR Manager

company

with

groups department
Employees
Research for applying new
recruitment and training by
technology
and
2014
Ensure staffs have enough knowledge
in
the
skills knowledge to perform company
Open database for false
their tasks
report, knowledge and
skill sharing

23

course

Progre
Statu
will 500 million First cou
Budget

into

period:
March May
August - October

two

started

Appendix 7: Work Break Down

24

Appendix 6 Overtime Policy and Procedures.

Kinh Do Corporation
Overtime Policy
Issue Number: 1

Issue Date: 28/5/2014

Policy: Employees of Kinh Do Corporation work 40 hours in normal working time. Company
must follow and ensure the employee condition that they can work comfortable. However, the
employees also want to work overtime to gain extra salaries.
Purpose and Scope:
This procedure aims to ensure the benefit of employees who work overtime. It will apply all
existing employees in company
Responsibilities:
CEO of Kinh Do Corporation
Vice President Human & Resources
Finance Manager and Accountant
Supervisor
Procedures:
1 Working overtime must be accepted by supervisor or HR manager.
2 Employees and supervisor must follow the Basic Condition Employment Act (BCEA).
3 Employees will not work more than 12 hours per day include overtime.
4 The limit of overtime in a week is not more than 10 hours unless the collective agreement has
been reached.
5 Supervisor just authorize work overtime when the work urgent and cannot done during the
normal working hours.
6 Employees must sign the attendance register at the starting and finishing work.

25

7 Record of all overtime activities must keep by supervisor.

8. The fund available to pay overtime.
9 If the above limit exceeded supervisor must be held liable.
Documentation:
The overtime permit
Workshop paper

Mr. Nguyen Quoc Nam

Vice President Human Resources of Kinh Do Group

26

Appendix 7 Gantt chart.

27

Appendix 8 Critical Network Diagram.

28