Presentation môn Complexity

1. Intro Team (Vân) 1.1 Intro Team: (Pham Hoang Hai Van) (15 giây) Hello everyone, my name is Pham Hoang Hai Van, I am from Team 7. My team consists of 4 members.And today we will bring to you "Strategic Analysis and Operational Challenges in SABECO's Growth and Market Positioning". The following will be Thach Bao Minh's presentation on information about SABECO. 2. Intro SABECO (Thach Bao Minh) 2.1 Introduction information (50 phút) Today we are discussing SABECO – Saigon Beer, Alcohol, and Beverage Corporation, the market leader in Vietnam’s beer industry for 148 years. SABECO now has a very wide spread of networks, with 26 breweries and 11 subsidiaries. As well as beer production, SABECO is famous for brands such as Saigon Chill, 333 and Saigon Gold. Responsible consumption; contribution to the society; conservation of local culture are the key words that constitute the vision of the company in the field of sustainable growth. With SABECO, it’s more than a business; it’s a legacy in Vietnam’s beverage industry..

[Audio] SABECO, the market leader in Vietnam's beer industry for 148 years, is known for its wide range of products, including Saigon Chill, 333, and Saigon Gold. These outstanding products have contributed significantly to the company's growth and success..

[Audio] The external environment surrounding SABECO is characterized by several factors. Strict government regulations, including the 2020 Alcohol Harm Prevention Law, restrict sales and prohibit drunk-driving, negatively impacting beer consumption and affecting SABECO's revenue. However, as the beverage industry contributes significantly to the national budget, supportive policies are crucial for sustainable growth. Vietnam's GDP growth of 6.42% has boosted purchasing power, presenting opportunities for SABECO during festivals. Additionally, stable inflation and a predictable USD/VND exchange rate ensure global competitiveness..

[Audio] Vietnamese people have a strong connection to beer, consuming it during celebrations and festivals. This cultural tie is reflected in marketing campaigns like “Bia Saigon - Về Nhà Ăn Tết”, which emphasizes brand loyalty. However, increasing labor costs pose a significant challenge for SABECO, prompting the company to prioritize operational efficiency..

[Audio] SABECO prioritizes environmental concerns, focusing on water management. By optimizing resource use and recycling water, the company minimizes waste and reduces emissions. To achieve this goal, SABECO combines solar energy and biomass with its production processes, meeting international environmental standards. Additionally, the company creates biodegradable packaging and reuses byproducts, aligning with customer expectations for sustainable practices..

[Audio] As we anticipate that proposed tax increases on alcohol products may lead to consumers seeking illicit markets, resulting in lost revenue for both SABECO and the government, it is essential to promote balanced taxation that supports public health and fair trade. To achieve this goal, SABECO has shifted its focus towards campaigns showcasing cultural values while maintaining regulatory compliance. Furthermore, removing export barriers enables the company to shorten logistics, reducing costs by 15% and ensuring competitiveness in international markets. In the beer industry, established players like SABECO face significant barriers to entry due to substantial investment requirements for infrastructure and distribution. Strong brand loyalty and nationwide networks also contribute to the dominance of established players. However, shifting trends towards non-alcoholic drinks pose challenges for all industry participants. Price sensitivity is high among low-income consumers, necessitating SABECO to remain competitive. The company must invest in marketing efforts to retain customer interest in a rapidly changing market..

[Audio] The beer market in Vietnam is dominated by SABECO and Heineken, creating opportunities for suppliers to exert influence over prices, particularly those providing raw materials. Fluctuations in raw material prices and international market conditions pose challenges for SABECO, which can negotiate favorable terms due to its large purchasing scale. The rise of non-alcoholic drinks and other beverages threatens beer consumption, as do spirits and craft beers attracting premium consumers. Competitors employ dynamic pricing strategies, promotions, and flexible product lines, putting constant pressure on SABECO to innovate. To maintain its position, SABECO relies on its cultural ties and distribution network..

[Audio] SABECO faces challenges in its traditional business model due to strict laws regarding alcohol consumption. To address this, the company can offer non-alcoholic and low-alcohol products to cater to changing consumer preferences. Additionally, working with ride-sharing services can help prevent accidents caused by drunk driving. Furthermore, implementing responsible drinking campaigns and labeling products with 'Drink-Safe' tags can contribute to public health agendas. On the other hand, SABECO also faces intense competition, particularly from Heineken's premium strategies. To counter this, introducing craft beers and premium lines targeting specific demographics can be effective. Expanding distribution networks and boosting brand awareness through cultural campaigns can also help..

[Audio] The organizational chart of SABECO displays the hierarchical structure of the company, with the Board of Directors and General Director occupying the highest position. Four Deputy General Directors oversee distinct functional areas, including Marketing, Sales/Distribution, Production/Quality, and Finance. Each department concentrates on strategy, efficiency, and quality. Support functions, such as Internal Audit, Legal, and IT, offer advisory roles to the organization. Authority is represented by solid lines, while dashed lines signify cross-functional collaboration, allowing SABECO to operate efficiently and attain its objectives..

[Audio] To achieve its goals, SABECO's production department plays a crucial role in approving annual plans, setting targets, and investing in technology, enabling the company to optimize its manufacturing processes, increase efficiency, and reduce costs. Meanwhile, the sales and marketing department develops strategies, approves budgets, and sets sales targets, ensuring that the company's products reach the right customers at the right time. The logistics department, on the other hand, oversees procurement and supply chain decisions, guaranteeing that products are delivered promptly and stored optimally. These three departments work together seamlessly, sharing data and insights to ensure that SABECO's operations run smoothly. The finance department, meanwhile, manages budgets, costs, and cash flow across all divisions, providing critical oversight and guidance. By working together, these departments enable SABECO to respond quickly to changing market conditions, adapt to new trends, and maintain its competitive edge..

[Audio] The company can maintain high product availability and meet customer demands efficiently by adapting its operations to different markets and offering customized products. This flexibility enables SABECO to respond quickly to changes in demand and remain competitive in the market..

[Audio] SABECO relies on various inputs to support its operations. Raw materials such as barley, hops, and water are converted into beer through precise brewing processes. The company also utilizes its workforce, capital, technology, and information to achieve its goals. The outputs of this process are a range of beer products, financial outcomes, and internal growth, reflecting the effectiveness of SABECO's strategies. Moreover, SABECO's operations are influenced by external factors, including regulatory frameworks, economic conditions, and social or cultural trends. These elements shape how the company crafts its products and responds to market demands, ensuring agility and responsiveness to shifting consumer preferences and market dynamics..