Introduction
Vietnam Dairy Products Joint Stock Company (Vinamilk) is considered the largest dairy manufacturer in Viet Nam. Vinamilk produces a various range of dairy products, such as fresh milk, condensed milk, yogurt, ice cream, cheese, and fruit juice, for the domestic and international market. Vinamilk has distributed its products through the large distribution channel nationwide, and it also exports to foreign counties. The company holds 39% of the market share in the dairy industry in Viet Nam. Vinamilk has established a strong brand image and reputation in customers’ minds: Vinamilk brand is associated with good quality dairy products.
According to the scenario in this assignment, Vinamilk has launched a campaign to promote the freshness of the 100 percent fresh milk products. Facing the bad press recently that suggests the company’s products were made from powder and water, Vinamilk would like to show people that the saying is not correct. Vinamilk has invested much to produce the 100 percent fresh milk products, whose quality is guaranteed as the name. The process and technology applied to achieve this goal is examined in each tasks.
In class, I have learned many different concepts about VMGOS, organization structure, business process and functions, process mapping, quality gateway, planning coordination tools, and project management, etc. For the assignment, I will apply these concepts to Vinamilk company, focusing on its goal to implement new technology to product its 100 percent fresh milk.

Evaluate the interrelationship between different processes and functions of Vinamilk related to the new technology to produce 100 percent fresh milk.
According to Vinamilk’s organization structure, the company has 8 departments: dairy development, production and R&D, supply chain, finance, project, marketing, sales and HR& Admin. The 8 departments conduct different functions in the Vinamilk Company, and each department has an executive director who is responsible for managing the activities within the department. Vinamilk organization is an example of a functional organization. A functional organization features its various departments which carry on different functions of the organization, for example, production department, sales and distribution department, finance department, and so on. Within a department, employees of the same majoring field, specification, and skills are formed together, so that they can work in the same environment, which enables them to stay focused and develop more of their expertise on one particular function of the organization. The application of functional organization allows Vinamilk to effectively utilize its human resources. Having 8 departments in the organization, Vinamilk assigns its each function to each department. Though the departments have different departmental goals and objectives, procedures and priorities, they collaborate to achieve the ultimate organizational objectives.
The communication process of Vinamilk organization supports the collaboration between the departments as well as the coordination of different functions. As seen from Vinamilk structure, the Board of Management stays at the top level. According to the annual report of Vinamilk 2011, the current Board includes 5 members, who are responsible for strategic planning of the organization. They design the company’s vision and mission, and forecast the future position of Vinamilk and decide the company’s overall objectives. They establish the 5 core values of Vinamilk_ integrity, respect, fairness, compliance and ethics_ which are to be included in every aspect of the business. In addition, the Board selects the Chief Executive Officer (CEO) and collaborates with the Executive Directors of departments. The next level in management system is the CEO. Mai Kieu Lien is the present CEO of Vinamilk organization, who is also a member of the Board. She is responsible for designing the organization long term objectives, which serve as a framework for developing the departments’ objectives. She coordinates the departments’ efforts toward the strategic plan of the Board in order to achieve the organization’s goals and objectives. The next level is the Executive Directors of the 8 departments. They are heads of the departments, who are responsible for tactical or short-term planning of the organization. The tactical planning is to implement and support the long-term objectives of the CEO. The Executive Directors have the duty to report and explain their departments’ activities to the CEO and the Board (Vinamilk, 2011).
The communication process of Vinamilk from the Board of Management, the CEO, to the executive directors is an advantage to the company. The delegation of authority and responsibility in Vinamilk management system implies both decentralization and centralization approach, but more on decentralization. To consider the decentralization approach, the organization does not rely solely on one person for every decision making. Vinamilk senior managers, the Board and the CEO, overlook the entire organization and direct the functions toward the desired mission and long-term objectives. The Executive Directors are the middle managers of Vinamilk; they do planning, organizing, directing, and controlling the overall activities within their departments. Under the Executive Directors, there are section managers, assistant managers and supervisors. They are junior managers of the organization, who deal with operational planning and daily performance of the employees. With a broad- based management team, of various expertise, knowledge and skills, the decentralization approach ensures Vinamilk organization to cope with many business situations. To consider the centralization approach, even though the broad-based management system of Vinamilk allows the subordinate managers’ authorization in decision making within their scope of responsibilities, Vinamilk maintains the importance and significance of the top level managers. This explains the centralization degree in Vinamilk; this approach helps keep the decision making process of Vinamilk simple and consistent. By combining the advantages of both approaches, Vinamilk management system is functioning efficiently.
Vinamilk recently launched a campaign to promote its 100 percent fresh milk product. And in order to produce and promote the product, it requires different functions of Vinamilk to conduct different processes. This table shows how each department perceives its own part related to the new technology to produce 100 percent fresh milk: Functions (Departments) | Processes | Dairy Development | * Research and innovate to produce new dairy products. * Learn the Pasteurization technology to produce 100 percent fresh milk_ enhance taste, quality, and nutrition. | Production | * Make sure raw fresh milk meet the required quality. * Convert raw materials into 100 percent fresh milk through the designed production process that applies the new technology. | Research and development | * Import new technology from European countries (German, Italy and New Zealand). * Design the assembly line appropriate for the production process. Implementing international standard equipment to produce 100 percent fresh milk. | Finance | * Forecast financial position of Vinamilk. Prepare budget for the expenses relating to the new technology and operational activities to produce 100 percent fresh milk. | Project | * Project the new assembly line; install machines and equipments at the manufacturing plant. * Schedule the production phases. * Design the quality gateway to measure the quality of outputs. | Marketing | * Conduct research to learn about customers requirements, demand and trend. * Launch campaigns to promote 100 percent fresh milk. Create demand for the product. * Distribute the products through Vinamilk distribution network. | Sales | * Communicate with customers, and outlets to introduce the new product. * Make sales and increase sales volume. * Develop relationship with new distributors and retailers. * Support distributors. Attend outlets. Customer service and care. |