HCMC UNIVERSITY OF TECHNOLOGY

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Course / Award Pearson BTEC Level 5 HND in Business Management
Unit 17 Understanding and Leading Change

Student Name Lê Minh Lợi

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been achieved
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Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business (Business Management)

Student Name /ID Number Lê Minh Lợi/ 16BM40218

Unit Number and Title Unit 17: Understanding and Leading Change

Academic Year 2018/2019

Unit Assessor Dr. Pham Quoc Du
Assignment Number and Title ULC: Drivers of Change and Organisational Impact, action plan for change
management effectively
Issue Date 30 September 2019
Submission Date 23/12/2019
IV Name Nguyen Thi Toan Ngoc
Date

Submission Format:

The submission is in the form of an individual written report. This should be written in a concise, formal
business style using single spacing and font size 12. You are required to make use of headings, paragraphs
and subsections as appropriate, and all work must be supported with research and referenced using the
Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The
recommended word limit is 2,000–2,500 words, although you will not be penalised for exceeding the total
word limit.

Unit Learning Outcomes:

LO1 Compare ways in which change impacts on an organisation’s strategy and operations.
LO2 Evaluate the influences that drivers of change have on organisational behaviour.
LO3 Determine how barriers to change influence leadership decisionmaking
LO4 Apply a range of leadership approaches to a change initiative

Assignment Brief and Guidance:

Change and change management is unavoidale if any organization want to be survive, develop or
sustainable development in the competitive busniess environment now. As the goblaization comes and

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bring much opportunity also the chalenges for any organization. Howerver, the organization management
is one of the most important factor that make organization to adapt changing and lead orgnaization to
overcome any difficult situation is not questioning. Commitment from management can make the
organization not only survive but survive as a giant.

Required:
You and your partner (in pairs) are training to become business analysts in a large multinational organisation. Using
a real case studies (of organisations undergoing major change), compare the impact that large-scale change has had
upon the organisation’s strategy and operations. Use appropriate theory to inform your discussion. Also evaluate
how the change will have affected behaviours within the businesses and, using theory and models, propose measures
that could be taken to minimise negative impact on the businesses.
The submission is in the form of a comparative report and should include the following:
1. An introduction to the drivers and impacts of change and how it affects organisational strategy.
2. An overview of the organisation case studies.
3. A PESTLE/SWOT/FIVE FORCE/CULTURE/ECO SYSTEM ENVIRONMENT analysis to be
undertaken for each case study to identify drivers of change.
4. Analysis for each organisation on the impact of change and the effects it has upon the organisation’s
strategy and operations and culture
5. Evaluation of how change will have affected leadership, individuals and team behaviour.
6. Evaluate how the impact of change was minimised and the application of appropriate models to process
change efficiently with appropriate leadership application
7. Making a comprehensive plan with for the organization change in term of strategy, operation and
culture for current need and anticipate the further situation for change management.

Pearson Education 2018

Higher Education Qualifications
Assignment Brief

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Learning Outcomes and Assessment Criteria

Learning Outcome Pass Merit Distinction

LO1 Compare ways in
which change impacts on
an organisation’s strategy
and operations.
P1 Compare different
organisational examples
where there has been an
impact of change on an
organisation’s strategy
and operations.
M1 Assess the different D1 Draw conclusions and
drivers for change in each recommendations with
of the given examples and valid justifications for
the types of planning effectively for
organisational change change and applying
they have affected. change impact analysis.

LO2 Evaluate the P2 Evaluate the ways in M2 Apply appropriate

influences that drivers of
change have on
organisational behaviour.
which internal and theories and models to
external drivers of change critically evaluate
affect leadership, team organisational response to
and individual behaviours change.
within an organisation.
P3 Evaluate measures
that can be taken to
minimise negative
impacts of change on
organisational behaviour.

LO3 Determine how P4 Explain different
barriers to change barriers for change and
influence leadership determine how they
decision-making influence leadership
decision-making in a
given organisational
context.
M3 Use force field
analysis to analyse the
driving and resisting
forces and show how they
influence decision-
making
D2 Critically evaluate the
use of force field analysis
in the context of meeting
organisational objectives

LO4 Apply a range of
leadership approaches to a
change initiative.
P5 Apply different
leadership approaches to
dealing with change in a
range of organisational
contexts.
M4 Evaluate the extent to D3 Critically evaluate the
which leadership effectiveness of leadership
approaches can deliver approaches and models of
organisational change change management.
effectively applying
appropriate models and
frameworks.

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 STUDENT ASSESSMENT SUBMISSION AND DECLARATION

When submitting evidence for assessment, each student must sign a declaration confirming that the work is
their own.

Student name: Assessor name:

Lê Minh Lợi DR. PHAM QUOC DU

Issue date: Submission date: Submitted on:

30 September, 2019 23/12/2019 23/12/2019

Programme:
Pearson BTEC Level 5 HND Diploma in Business (Management)

Unit 17: Understanding and Leading Change

Assignment number and title:

ULC : Drivers of Change and Organisational Impact. Determine how barriers to change influence
leadership decision- making and Leadership apprach for making change

Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students who break the rules,
however innocently, may be penalised. It is your responsibility to ensure that you understand correct referencing
practices. As a university level student, you are expected to use appropriate references throughout and keep
carefully detailed notes of all your sources of materials for material you have used in your work, including any material
downloaded from the Internet. Please consult the relevant unit lecturer or your course tutor if you need any further
advice.

Student Declaration

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of
plagiarism. I understand that making a false declaration is a form of malpractice.

Student signature: Date:23/12/2019

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 Achievement Summary
Pearson BTEC Level 5 HND Diploma Assessor
Qualification Dr. Pham Quoc Du
in Business (Management) name
Unit Number Unit 17: Understanding and Leading Student
and title Change name
Achieved?
Criteria To achieve the criteria the evidence must show (tick)
Reference that the student is able to: First IV
Rework
attempt Check
Compare ways in which change impacts on an
LO 1
organisation’s strategy and operations.
Compare different organisational examples where there
has been an impact of change on an organisation’s
P1
strategy and operations.

Assess the different drivers for change in each of the given

M1 examples and the types of organisational change they have
affected.
Draw conclusions and recommendations with valid
justifications for planning effectively for change and
D1
applying change impact analysis.

Evaluate the influences that drivers of change

LO 2
have on organisational behaviour
Evaluate the ways in which internal and external drivers of
P2 change affect leadership, team and individual behaviours
within an organisation.
Evaluate measures that can be taken to minimise negative
P3
impacts of change on organisational behaviour.
Apply appropriate theories and models to critically
M2
evaluate organisational response to change.
Draw conclusions and recommendations with valid
justifications for planning effectively for change and
D1
applying change impact analysis.

Determine how barriers to change influence

LO3
leadership decision-making
Explain different barriers for change and determine how
P4 they influence leadership decision-making in a given
organisational context.
Use force field analysis to analyse the driving and resistin forces
M3
and show how they influence decision-making
Critically evaluate the use of force field analysis in the context
D2
of meeting organisational objectives
Apply a range of leadership approaches to a
LO4 change initiative

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 Apply different leadership approaches to dealing with change
P5
in a range of organisational contexts.
Evaluate the extent to which leadership approaches can deliver
M4 organisational change effectively applying appropriate models
and frameworks.
Critically evaluate the effectiveness of leadership approaches
D3
and models of change management

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Higher Nationals - Summative Assignment Feedback Form
Student Name/ID Lê Minh Lợi / 16BM40218
Unit Title Unit 17: Understanding and Leading Change

Assignment Number A 1 and A 2 (combined) Assessor Dr. Pham Quoc Du

Date Received 1st
Submission Date 23/12/ 2019
submission
Date Received 2nd
Re-submission Date
submission
Assessor Feedback:

Grade: Assessor Signature: Date:

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Contents
Higher Nationals ........................................................................................................................................ 2
Assignment Brief – BTEC (RQF) ................................................................................................................... 2
Plagiarism ................................................................................................................................................. 5
1. An introduction to the drivers and impacts of change and how it affects organisational
strategy. ..................................................................................................................................................... 10
What is change in a business context? ................................................................................................... 10
How does position and perception influence a view of change as negative or positive? ...................... 10
Types of organisational change: ............................................................................................................ 11
The internal and external forces ............................................................................................................. 11
2. An overview of the organisation case studies. ................................................................................ 11
3. A PESTLE/SWOT/FIVE FORCE/CULTURE/ECO SYSTEM ENVIRONMENT analysis to
be undertaken for each case study to identify drivers of change......................................................... 12
The PESTEL Analysis of Vinamilk: ...................................................................................................... 12
SWOT of Vinamilk company ................................................................................................................ 14
FIVE FORCE ......................................................................................................................................... 15
CULTURE ............................................................................................................................................. 16
ECO SYSTEM ENVIRONMENT......................................................................................................... 17
New product development process ........................................................................................................ 18
Customer feedback and complaints are input for operational improvement: ........................................ 20
4. Analysis for each organisation on the impact of change and the effects it has upon the
organisation’s strategy and operations and culture.............................................................................. 20
5. Evaluation of how change will have affected leadership, individuals and team behaviour ...... 21
6. Evaluate how the impact of change was minimised and the application of appropriate models
to process change efficiently with appropriate leadership application ............................................... 22
Conclusion................................................................................................................................................. 24
References ................................................................................................................................................. 25

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 1. An introduction to the drivers and impacts of change and how
it affects organisational strategy.
What is change in a business context?

In simple terms, business change is the act of moving the company from where it is now to where it
wants to be. The change can be relatively small, such as improving the company's billing procedures, to
utterly transformative, such as reformulating entire product and service offerings in the light of
unexpected competition. Most times though, it references an event that causes major disruption to your
daily operations. There are three types of change in a business context: developmental, transitional and
transformational change.

Developmental Change Definition

A developmental change occurs when a business wishes to improve a process or procedure, such as
updating the payroll system or refocusing its marketing strategy. These changes are small and
incremental – you aren't redesigning the entire workflow, but are simply refining it to make it better.
Developmental change usually occurs in response to technology upgrades or internal cost drives that aim
to improve the efficiency of a work process. As long as you give staff the training they need to
implement the changes, there should be minimal upheaval associated with this type of change.

Transitional Change Definition

A transitional change is an act of replacing major processes with new ones, such as automating your
manual production line or adopting a new ERP installation. It also includes mergers and acquisitions and
other such courses of action. Transitional changes are frequently driven by a desire to remain competitive
in the marketplace. The business is not exactly charting unknown waters when executing a transitional
change, but it likely will have to reconsider its job functions, processes, culture and relationships to
manage the change effectively. Management must proceed cautiously to minimize fear, doubt and
insecurity in staff.

Transformational Change Definition

Transformational change is the most disruptive since it requires a fundamental shift in the way a
company operates. For example, a company might embark on a completely new mission or restructure
the whole product line using new, proprietary operating systems, as Apple did when Steve Jobs took over
the company in 1997. Because of the upheaval, these types of changes happen only rarely. Navigating a
transformation is complex, requiring significant skill from the management team and outside help from
change specialists. When the change process is complete, the organization is unrecognizable from what it
was before.
How does position and perception influence a view of change as negative or positive?

About Vinamilk Company

The position and perceptions that affect a change's perspective are negative or positive. It will depend on
the value of the employee's assessment of organizational change. If the assessment of organizational
change is positive, its commitment is likely to increase. If it is negative, the organization's commitment is
likely to decline.
If Vinamilk's management properly articulated the change, and the urgency of change and also role
modeled and institutionalized the change, the chances are that employees will buy into the change and
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will be favourably disposed to the organisation. Hence, employee commitment will not be negatively
affected. For example if the change process will involve reduction of staff, the emotional connection of
employers to the plight of those affected will tell a lot to those that are left and affect their commitment
to the organization. If management did not care much about the situation of those affected, the remaining
employees will simply extrapolate the management action to determine what would happen to them in
future. In this case their commitment will be negatively affected.

Employees are required to be explained the need for change in the larger interest of the organization and
the employee themselves. Employees must be led by example, rather than by power, manipulation and
coercion for positive employee commitment during organizational change, or else employee commitment
will be negative.

Types of organisational change:

There are 4 categories of changes within organization: structural, strategic, technological and changes in
people.
Changes in people describe changes in employee’s attitudes, behaviour, expectations and perceptions.
Main purpose of these changes is to improve performance of the employees, enhance their efficiency
towards the company, their relationships with managers and the group cooperation. Changes in
workforce can be necessary, when they are a consequence of other changes or sometimes through
implementing them, the firms try to enhance its effectiveness and encourage the individuals or the
groups. Largescale changes such as replacing the top level managers are designed with the purpose of
creating a new organizational culture, whereas the main goal of small scale changes take an attitude or
behaviour of the employees into consideration.

Changes in the structure of organizations can stem from both internal and external factors and they affect
the way organizations operate. These changes are related to changes in the hierarchy, management
system and administrative procedures. The main adjustment, which Vinamilk incorporated into its
structure, is the division of the division's central decision-making authority over important areas.
The internal and external forces

The internal forces are the collection of the actions and the decisions, which occur inside an organization.
They are easier to control and more predictable than the external ones. One of the internal factors, which
affect the company, is management. Especially, the choice of someone, who can manage to run the
company in the right way, offer a new strategy, be a good leader and the same time entrepreneur, is a key
to success of the firm. To increase the performance of the company, Vinamilk decided to take a risk and
first of all, it changed its CEO, which was only the beginning of the internal changes within the business.
Secondly, the internal factor, which has an influence on the company, is its restructuring. New ideas,
risktaking decisions and the change of the strategy can have the improvement and development of the
firm in view. The intrepreneurship can involve new hires, new branding, reallocation of resource etc. One
of the intrapreneurial changes in Vinamilk was the choice of new CEO who implemented the number of
the reforms regarding the technology and the structure, which have the improvement of the firm’s
condition in view.
2. An overview of the organisation case studies.
Leading changes refers to introducing new plan and identification of fresh opportunities to expand the
business and craft improvement in existing process of operation with co-ordination of all staff members.
In Vinamilk leaders are key person who drive changes and play critical role in preparing people to accept
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changes for individual and organizational improvement. Leading changes is requirement of organization
to sustain in the market position and develop business according to market and customer needs which
plays significant role to design and develop business planning and process. Present report will analyze
the need of strategic changes and planning of changing within Vinamilk for developing business as well
as adopting the new conditions of business.

STRATEGIC ANALYSIS
Background
The capabilities of Vinamilk can greatly be enhanced by analyzing the changes and implementation of
new process that will help management to achieve goals. It totally depends on leader and manager to
explain the need of change which motivate and persuade employees to accept changes and craft
improvement in individual and group performance. Vinamilk has faced many conditions, in which
organization made changes in operation and structure to meet requirements of customers as well as
sustain position in the industry. Organization made changes after crisis of 2007 and establish itself to
provide superior experience of milk. Vinamilk managers and leaders always look to develop positive
working environment by leading the changes to meet the requirements and develop effective plan for
improvement. Every organization work with desire of growth in business in terms of share and size that
driving the need of implementing changes (About Vinamilk, 2015). Vinamilk is having desire to expand
the market that encourage management to apply changes which has provided positive impact on growth.
In other words change management is the process, tools and technique to manage the people-side of
change to achieve required and expected business outcome.

In the next part report will develop plan to undertake successful completion of program and management
of people to implement changes in organization to achieve the goals and objectives. In the end of the
report it will explain potential benefits of changes and their impact on desired improvement.

3. A PESTLE/SWOT/FIVE FORCE/CULTURE/ECO SYSTEM

ENVIRONMENT analysis to be undertaken for each case
study to identify drivers of change.
The PESTEL Analysis of Vinamilk:
The current environment have the huge influence the performance of company. Therefore, the PESTEL
Analysis is very important for company to analyze the market.
Political Environment: Vietnam is a country with a stable political institutions (thể chế chính trị) that
facilitate doing business in Vietnam. Moreover, Vietnam is a peaceful country without war and terrorism.
Top five of happy countries in the world. The government has many policies to support milk industry for
running business. However, Vietnam is a mixed economy so government stills play the big role in market.
Vietnam government decrease the foreign trade barrier to attract more investment. Especially the
government have more tax policy to support the milk industry.
Economics Environment: The Vietnam’s GDP trend increased day, it is a great opportunity for business.
It means that the income and life will go up and the demand to spend money is high. However, the inflation

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rates is also high that mean the cost of production will increase. It will effect on the price of Vinamilk
product in market. Vietnam is a member of WTO is a big pressure for local business to compete other
foreign competitor. In addition, it is also help company to expand the business scales and attract more
foreign investment.
Social – Cultural Environment: Vietnam is a young population country; it will lead the consumption of
milk product in market. According WTO, Vietnam's average income 1300 USD each person in 2010 and
the buyer in middle class is high. Therefore, they are the important customer that company should focus
on. They will buy product not only for them but also for their children. The demand for improving the
health and beauty increased so they need a product that can meet their satisfaction such as fresh milk.
Technological Environment: Milk Joint Stock Company Vietnam (Vinamilk) is still the leading
enterprises of the milk processing industry of Vietnam. Vinamilk leaders always factor in science and
technology; depending on funding, market demand and product structure to convert technology investment
timely. Therefore, customer will have a lot of information about company and company can build the trust
and customer’s satisfaction. It play a big role in business therefore Vinamilk have a modern system from
European countries of advances technology.
Environment factor: Company should focus on the waste disposal system in order to reduce the pollution.
They need to use reasonable, saving natural resources, develop clean energy, renewable energy and
boosting recycling, reuse and waste reduction. Company also develop and use the safe and fresh material.
Legal factor: Vinamilk must ensure the production, which are safety and health for customer by using
modern system. Company should follow the rule of food safety. Vietnam has many different tax rates so it
will make difficult for any company. It also effect on the price decision of company.

The average GDP growth rate in the period 2004 - 2008 is high. Whereas the population growth was
constrained led to the average level of income per capita GDP Increase year by year.
In 2008, the landmark of economic development in Vietnam has moved from the group of countries with

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the lowest income to the group of countries low average income.

SWOT of Vinamilk company

1. Strengths
Long history and strong foundation is the first and foremost strength to make Vinamilk become a leader
in dairymarket of Viet Nam. Thanks to the completely qualified products, competitive with the market
existing goods, throughout about 34 years operating history, Vinamilk has undoubtedly become a
familiar and trusted trademark in the mind of domestic clients. Moreover, it has gained a great customer
satisfaction and understanding as well as the knowledge of the local market.
Another remarkable factor that has actually strengthened the Vinamilk’s leading position is that it
established wide and deep distribution system located nationwide and being expanded over time. The
distribution network is not only the essence for long-term period strategy but also the decisive factor for
the success of a consumer goods producer. It allows Vinamilk to bring its core products to consumers in
a fast and effective way. To be more specific, today the company has more than 1500 distributors, over
90000 retail outlets in the entire country.
Along with the solid distribution, in order to do well Vinamilk always pay attention to investing in
modern equipment and factories. At the present, a range of modern factories located along Viet Nam that
helps to reduce transportation expenses and a system of advanced equipment that helps to ensure the
output products meeting the international standards.
One more aspects should be highlighted in the strength of Vinamilk is that its loyal and cooperative
relationships with both local and oversee suppliers allow the company to have a stable material sources at
the reasonable price. Today, around 60% of all cow milk produced in Viet Nam is consumed by
Vinamilk.
Last but not least, a professtional experienced management team in dairy business and production, a
transparent internal management system and tight and detailed management procedures are other keys to
success making Vinamilk a top business of the Viet Nam milk industry branch.

2. Weaknesses
The low-income majority rural population is the first weakness having influence on the operation of
Vinamilk. In case the economy slowing growth in the coming period, as lower income people will
restrict the consumption of output in the country, reduce profits and sales revenue of the company.
In addition, reducing the duties for dairy products will be favorable conditions for imported dairy
products. With 50% of raw material to the company’s import and 30% of the company’s revenues are
from exports, the fluctuations in exchange rates affect the operation of the Company.
Finally, Viet Nam’s WTO accession will create conditions for foreign company to take part in the
domestic market. It will increase competition among companies in the industry as a result.

Opportunity:

 Domestic dairy yield just adapt 25% domestic’s demand, so that is the potentialmarket for
Vinamilk to expanding their production process.
 VNM is the trusted Vietnam brand name in high-quality, so it contribute to buildthe loyalty of
customer against others competitor.
 To enter 2 new factories into operation in which the Vietnam dairy factory in Binh Duong
province has the capacity equal the sum of 9 capacity of Vinamilkthat make Vinamilk meet the
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 increasing demand of Vietnam market.
 Expanding the capacity by investing in Mikara Company in New Zealand to help Vinamilk deal
with the shortage of imported milk because the poor weather andthe high increasing on demand
of dairy products that lead the global milk production recently cannot satisfy the demand.
 Significant investment on dairy cattle herd is the opportunities for Vinamilk to beable to self-
sufficient in raw fresh milk.
 Strength in Vietnamese market open opportunity for Vinamilk success inexporting to others
emerging South East Asia market.

Threat:
 The exchange rate exposure is the factor affected by the imported materials
 The Vietnam’s infrastructure is low that is a bit hard for widen distribution,especially the
highland region to keep the high-value products.

Vinamilk’s strategy analysis

In order to maintain the leader in dairy industry, Vinamilk impose strategy focus onoperational and
distribution management, cost leadership, and invest in R&D to improvethe quality and create the diverse
products rage.

FIVE FORCE

With the development of Vietnam's dairy industry, competition between domestic and foreign
manufacturing companies is increasing. analyze case studies of 5 competitive pressure models of
Vinamilk to understand the power of this "big man" in the current dairy market.

Competitive pressure about customers

The final customers, are likely to put great pressure on companies about the quality of their products.
Brands in dairy products are diverse and interchangeable, the price is no longer important to consumers
when choosing dairy products. Companies compete with each other by quality, product diversity, brand
power, ... then price. For dairy products, when the price of raw materials is high, the dairy company can
raise the price of the product that customers still have to accept. Therefore, the bargaining power of
buyers is low.

For retailers, nutrition centers, the company will offer discounts and commissions. Distribution points
such as nutrition centers, hospitals, pharmacies, etc. can gain significant strength in front of dairy
companies, as they can influence the milk product purchase decisions of retail customers. Finally through
advice and introduction

The threat of substitute products

In fact, dairy products are always quite well-established in the market with very few other substitutes due
to the characteristics of milk as an essential nutritional supplement. As for liquid milk, the alternatives
that may reduce the company's market share are nut milk, soy milk, cereal drinks or soft drinks
containing milk, etc. The dairy industry is less exposed to risks from substitutes.
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Barriers to entry into the industry

In general, the entry barrier of the dairy industry is high with the cost of joining the industry, product
characterization and establishing appropriate distribution channels:

- The cost of joining the industry, in general, is not high but it must be big enough for advertising,
research / development needs. However, liquid milk and yogurt products are quite high.

- Product specification: The Vietnamese dairy market has been present to most of the major dairy
companies in the world, in which the major dairy firms have had a certain market share and had little
change in recent years. Therefore, new competitors want to join in must have a strong investment to
entice and change the market loyalty of existing dairy companies.

-Distribution channel: the current product distribution channels of the dairy industry have been
thoroughly used by existing businesses. Therefore, new entrants must convince these distribution
channels by accepting high commission sharing. Therefore, it can be concluded that the pressure from
new competitors is insignificant, that competition will mainly take place within the current industry.

The bargaining power of the supplier

Vinamilk in particular and dairy enterprises in general have high bargaining power with suppliers.
Regarding the scale of the dairy industry, 95% of dairy cows are raised in households, only 5% are raised
in specialized farms with a scale of 100-200 cows or more (VEN, 2009). This shows that the breeder is
spontaneous, not focusing on the process, so the quantity and quality are unstable, reducing the
bargaining power with production companies. Lack of management experience, small farm size, rate of
reproductive disorders and diseases of dairy cows are still high ... making dairy farmers very
disadvantaged. Therefore, domestic dairy companies are actively negotiating input purchasing prices.

Competition among competitors in the industry.

Vinamilk is currently facing relatively high competition from domestic and foreign brands such as TH
True Milk, Nesle, Abbott, Mead Jonson, etc.The future of the dairy market will continue to expand and
expand wide. The level of competition is increasing.

CULTURE
Vinamilk has clearly developed the values and policies for its employees in Vinamilk's corporate culture.
Especially the attitude and spirit of employees and businesses are clearly shown.

For businesses / business owners: "Striving to bring outstanding benefits to shareholders, based on the
effective use and protection of all resources of Vinamilk."
For employees: respect and treat all employees fairly. Vinamilk creates the best opportunity for all
employees to develop equally, build and maintain a friendly, safe and open working environment.
Education
For customers: Vinamilk's reputation offers a wide range of products and services. Vinamilk commits to
the highest quality standards, competitive prices and honesty with every transaction. Education
In all activities, Vinamilk always associates social activities with corporate culture. Vinamilk regularly
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organizes social activities such as sponsoring sports competitions, organizing educational support
programs: Firefly's dominance, Hot Air Balloon with Vinamilk reaching out to the sky, ... , Vinamilk also
organizes health care counseling programs, both customers and employees, showing interest in dedicated
employees.

How does Vinamilk's corporate culture create awareness for employees?

Vinamilk's factories and offices are painted blue and white. It shows the unity in Vinamilk logo, brand
and slogan. Employees are aware of serious working style from regulations to style, neat and clean
working uniforms.

The working attitude of the staff is always friendly, enthusiastic and enthusiastic. Before employees are
officially employed, Vinamilk first trains the basic qualifications, regulations and working styles.

Vinamilk's corporate culture also focuses on training on the history of formation, stories about milk and
nutrition. At the same time, the lessons of history on Vinamilk's good traditions in the corporate culture
were spread.

With the policy of retaining talents, Vinamilk annually organizes festivals, praises employee
achievements and draws experience for employees. In order to engage employees, Vinamilk regularly
organizes music festivals and exchange tournaments to tighten employee solidarity. In addition,
Vinamilk policies take care of the families of employees, organize activities to care for employees, help
them feel secure to work for Vinamilk long-term.

ECO SYSTEM ENVIRONMENT

Currently, Vinamilk has more than 10,000 officials and employees working in 30 units including
branches, farms, factories and subsidiaries across the country. Especially, nearly 70% of Vinamilk
employees have more than 5 years working with the company.

With the current dairy development strategy, Vinamilk always determines the human factor that will
determine the success of an enterprise. Therefore, right from 1993, Vinamilk signed a long-term contract
with Moscow University of Applied Biotechnology (Russian Federation) to send cadres and workers to
study. And thanks to the guidance of this team, Vinamilk has achieved many successes in the process of
management, administration and administration to develop the dairy industry, achieving today's
achievements.

In addition, in recent years, the recruitment policy of the company has always aimed to diversify the
source of candidates from leaders to employees, from candidates capable of integrating with qualified
experience. Highly specialized in accordance with the job requirements for students with good results.
This recruitment is considered from the perspective of not distinguishing all other factors such as region,
age, religion ...

In the last 2 years, Vinamilk has organized many talent training programs with the number of employees
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involved of more than 100 people, of which, up to now, 30% of personnel have been promoted to
become managers. of the company.

Vinamilk currently has factories and super factories equipped with a modern, closed, fully automated
system with large-scale intelligent warehouses and an international standard farm system that is applied
with 4.0 technology. face. This is also the motivation for Vinamilk to promote its human resource
training process.

Promoting autonomy and promoting the capacity of each individual but always ensuring the connection
and cooperation among the collective, in recent years, Vinamilk has actively built its corporate culture on
6 principles: Integrity, Responsibility, Excellence, Collaboration, Innovation and Results-Orientation.

The spirit of innovation is also assessed by Vinamilk as an important factor, expressed in the themes of
recent years such as "Brave change", "Change for growth". This helps Vinamilk to attract and retain
employees with a flexible working environment, ready to change, encourage innovation to catch up with
new trends and thereby create growth and sustainable development. Firm for the company.

In addition, the element "Health and Spirit" for employees has always been maintained and improved by
Vinamilk over the years. Specifically, Vinamilk brings outstanding benefits such as employee health
insurance program for employees and relatives of managers; building facilities to support and support
learning conditions for employees; focus on building facilities such as gym, yoga, swimming pool and
creative space to take care of health and create conditions for employees to work more effectively ...

New product development process

Concept
Idea
Idea screening development
generation
and Testing

Marketing
Product
strategy
development
development

Test marketing Commercialisation

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1. Idea generation: It is the very first step in the process of developing a product. In this stage
researchers or marketers can identifying customer needs and wants.The development of a product
will start with the concept. The rest of the process will ensure that ideas are tested for their
viability, so in the beginning all ideas are good ideas
Ideas can, and will come, from many different directions. The best place to start is with
a SWOT analysis,which incorporates current market trends. This can be used to analyse your
company’s position and find a direction that is in line with Vinamilk business strategy.
2. Idea screening: The second step in New product development is Idea screening. The purpose of
idea generation is to create a large pool of ideas. The purpose of this stage is to pare these down
to those that are genuinely worth pursuing. Vinamilk have different methods for doing this from
product review committees to formal market research.It, is helpful at this stage to have a checklist
that can be used to rate each idea based on the factors required for successfully launching the
product in the marketplace and their relative importance.
3. The third step in New product development is Concept Development and Testing. An attractive
idea has to be developed into a Product concept. As opposed to a product idea that is an idea for a
product that the company can see itself marketing to customers, a product concept is a detailed
version of the idea stated in meaningful consumer terms.
4. Marketing Strategy Development: This is the next step in new product development. The strategy
statement consists of three parts: the first part describes the target market, the planned product
positioning and the sales, market share and profit goals for the first few years. The second part
outlines the product’s planned price, distribution, and marketing budget for the first year. The
third part of the marketing strategy statement describes the planned long-run sales, profit goals,
and the marketing mix strategy.
5. Product Development: If the new product is approved, it will be passed to the technical and
marketing development stage. This is when a prototype or a limited production model will be
created. This means Vinamilk can investigate exact design & specifications and any
manufacturing methods, but also gives something tangible for consumer testing, for feedback on
specifics like look, feel and packaging for example
6. Test Marketing: The word ‘test’ means examination or trial. Test marketing, thus, means testing
the product in the market before the product is commercialised on a large scale. This is done with
a view to understand the market and the marketing considerations like nature of competition,
nature of demand, and the consumers’ needs, etc.
7. Commercialization/ Launch the product Internationally: New products approved for
commercialization enter the final phase of the development process. During the period required to
get into full scale production, various activities started in earlier phases, such as package design,
promotional literature, and advertising copy can be completed. Depending on the similarity of the
new product to present products and its estimated market potential, it might be assigned to an
existing division, to a new division specifically established for it, or to a new enterprise owned
wholly or partially by the developing company. When the company decides to commercialise its
products, the major cost takes place.

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 Customer feedback and complaints are input for operational improvement:

Vinamilk has established and maintained information channels directly at distributors or via email,
telephone the Company's hotline to receive all customer comments and feedback goods, especially for
product quality issues. All complaints from customers, people consumption is recognized, exchanged and
solved with customers by the satisfactory point of view customer satisfaction and operational
improvement. Vinamilk views customer feedback and complaints expressed their interest in Vinamilk
and is a valuable source of input Vinamilk continuously improves production and business activities. In
2014, Vinamilk received 4,043 customer feedback, opinions and complaints about product quality. All of
The complaint received was handled by Customer Care and the complaint settlement timely decision.

Global Food Industry Awards 2014, (the IUFoST Global Food Industry Awards 2014) is a world
recognition for the quality of Vinamilk's liquid milk products and is a convincing testament to the
commitment to quality to consumers. Vinamilk has surpassed more than 100 nominated products from 70
countries and is the only representative in the industry Milk in Vietnam won the award.

4. Analysis for each organisation on the impact of change and

the effects it has upon the organisation’s strategy and
operations and culture
There are a number of factors both internal and external that affect Vinamilk's operations. Any change in
these factors requires a change in the company. The more important factors are as follows:

The outside forces

Each person must continually interact with other organizations and individuals - consumers, suppliers,
unions, shareholders, governments and many other organizations. Vinamilk has goals and responsibilities
related to each other in the environment. The environment today is dynamic and will continue to be
dynamic. Changes in social, political, economic, technological and legal environments force Vinamilk to
change itself. Such changes can lead to a change in the company such as the main functional production
process, labor management relations, the nature of competition, economic constraints, organizational
methods, etc. To survive in Environment changes, Vinamilk must change.

Technology: When there is a technological change in the environment of Vinamilk and other
organizations applying new technology, the company is focused to become less effective in terms of cost
and its competitive position weakens. Therefore, it must apply new technology, its work structure is
affected and a new equilibrium must be established.

Marketing conditions: There can be two types of forces that can affect an organization's competitive
position. Other organizations offering the same product and buyers not buying products. Any change in
these forces may require appropriate changes to Vinamilk. As a result, there have been many cases of
divesting and focusing on core business, acquiring core businesses and developing competitiveness to
face competition threats. Similarly, there may be changes in buyers' needs, such as how income is
handled and how a product is processed. These changes from organizations to bring products that meet
buyer requirements.

Social change: Social changes reflect the wishes of people, their needs and the way they work. Social

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changes have occurred due to a number of forces such as education levels, urbanization, a sense of
autonomy and the international impact of new information sources. These social changes affect the
behavior of people in the company. There, need to adjust in operation so it is suitable for everyone.
Political and legal changes: Political and legal factors widely define the activities that an organization can
perform and the methods that will be followed in the completion of those activities. Any changes in these
political and legal factors may affect the operation of the organization.

Internal Forces

Not only changes in external factors, any changes in Vinamilk's internal factors may also need to be
changed. Such changes are needed for two reasons: changes in management personnel and shortages in
existing organizational practice.

Change of management personnel: Former managers are replaced by new managers, which is necessary
because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and
ways of working in the organization. Relationships, more in Vinamilk. Relationships, especially informal
ones, change because of changes in management personnel. Moreover, employees' attitudes change
although there is no change in them. As a result, an organization must change accordingly.
Shortages in the current organization: These shortcomings can be in the form of unmanageable
management, a large number of management levels, lack of coordination among different departments,
obstacles in communication, multiplication. format of committees, lack of uniformity in policy decisions,
lack of cooperation between lines and staff, etc. Besides these internal factors, there are two other
internal factors that give rise to company changes.
Nature of the labor force: The nature of the labor force has changed over time. Different work values
have been shown by different generations. Workers in their 50s plus value loyalty to their employers.
Workers in their thirties to forties are loyal only to themselves. The younger generation of workers loyal
to their careers. Workforce profiles also change rapidly. The new generation of workers has better
education; they place more emphasis on human values and question authority of managers. Their
behavior also becomes very complex and leading them to the organization's goals is a challenge for
managers. Staff turnover is also very high which again puts stress on management.
To avoid inertial development: In many cases, organizational changes occur only to avoid inertial or
inflexible developments. Managers are conscious of this view of the organization that the organization
should be dynamic because any single method is not the best management tool at all times. Therefore,
changes are combined so that development personnel love to change and there is no unnecessary
resistance when there are major changes in the organization.

5. Evaluation of how change will have affected leadership,

individuals and team behaviour
Most of the organizations agree now a days that effective leadership is one of the most important
contributors to the overall organizational performance and change. Intelligent leaders are those who have
a store of skills and knowledge gained from experience that allows them to manage effectively and
efficiently the tasks of daily life. Effective leadership is always required to bring effective changes.

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 6. Evaluate how the impact of change was minimised and the application of
appropriate models to process change efficiently with appropriate leadership
application
Change has become part of anyone’s lives as well as corporate existence. Most organizations faced with
urgency of change in their daily operations however; their views on change differs. The main trust of this
study is to critically evaluate the impact of change and change management in achieving corporate goals
and objectives in the viewpoint of Vinamilk. Specifically, it tackles on factors that causes the change that
can either be internal or external factors; determine the types of change and organizational change;
examine the positive and negative consequences of change. Moreover, it will shed light on the concepts
and application of change management with the aid of the different change models; discuss in details
how to implement an effective change management and the potential benefits that change management
can offer to the organization. Any effort to change may face resistance so organizations should
mechanize ways to minimize the resistance level, hence promotes a smooth transition of change. Leaders
and managers have big role to play in instituting the change and they should serve as models to
effectively manage the change. In order to implement a successful change initiatives, management and
organizations should ensure that any plan for change should be aligned with the corporate goals and
objectives as evidenced by different literatures in this study affirming the relationship between change,
change management, and the achievement of corporate goals and objectives.

6 Steps to Effective Organizational Change Management

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 1. Clearly define the change and align it to business goals.
It might seem obvious but many organizations miss this first vital step. It’s one thing to articulate the
change required and entirely another to conduct a critical review against organizational objectives and
performance goals to ensure the change will carry your business in the right direction strategically,
financially, and ethically. This step can also assist you to determine the value of the change, which will
quantify the effort and inputs you should invest.

Key questions:
• What do we need to change?
• Why is this change required?

2. Determine impacts and those affected.

Once you know exactly what you wish to achieve and why, you should then determine the impacts of the
change at various organizational levels. Review the effect on each business unit and how it cascades
through the organizational structure to the individual. This information will start to form the blueprint for
where training and support is needed the most to mitigate the impacts.

3. Develop a communication strategy.

Although all employees should be taken on the change journey, the first two steps will have highlighted
those employees you absolutely must communicate the change to. Determine the most effective means of
communication for the group or individual that will bring them on board. The communication strategy
should include a timeline for how the change will be incrementally communicated, key messages, and the
communication channels and mediums you plan to use.

4. Provide effective training.

With the change message out in the open, it’s important that your people know they will receive training,
structured or informal, to teach the skills and knowledge required to operate efficiently as the change is
rolled out. Training could include a suite of micro-learning online modules, or a blended learning
approach incorporating face-to-face training sessions or on-the-job coaching and mentoring.

5. Implement a support structure.

Providing a support structure is essential to assist employees to emotionally and practically adjust to the
change and to build proficiency of behaviors and technical skills needed to achieve desired business
results. Some change can result in redundancies or restructures, so you could consider providing support
such as counseling services to help people navigate the situation. To help employees adjust to changes to
how a role is performed, a mentorship or an open-door policy with management to ask questions as they
arise could be set up.

6. Measure the change process.

Throughout the change management process, a structure should be put in place to measure the business
impact of the changes and ensure that continued reinforcement opportunities exist to build proficiencies.
You should also evaluate your change management plan to determine its effectiveness and document any
lessons learned

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 Conclusion
Leading change is one of the most difficult leadership responsibilities. It is also one of the most
important. The world around us is constantly changing, and, to be effective in it, Vinamilk must change,
too. Vinamilk that do not change rapidly become irrelevant and impotent. Moreover, to fully exploit the
many opportunities that lie before us requires organizations that are nimble, quick, and lively. Change is
necessary for two basic reasons: 1. To solve existing problems 2. To move ahead into the opportunities
opens for us. what leaders do is stage continuous reformations. The constantly challenge the status quo,
and when they recognize new opportunities or see something that needs to be changed, they do
something about it. Thus, to be effective, leaders must understand change. This report will help you
understand resistance to change, the change process and how to help people through change.

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leadership
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