ASSIGNMENT 2

GROUP 1_IBS301_IB17C
Table of Contents
I. Introduction:..............................................................................................................2
II. Analysis:.................................................................................................................. 2
2.1. Analysis of dynamic strategy:...............................................................................2
2.1.1. Revenue:.........................................................................................................2
2.1.2. Profit:.............................................................................................................5
2.1.3. Firms:............................................................................................................6
2.2. Analysis of diversification strategy:......................................................................8
2.2.1. Firm Scope:....................................................................................................8
2.2.2. Diversification Types:....................................................................................8
2.2.3. The Strategist’s Toolkit: Diversification Matrices........................................12
2.2.4. Mineral water industry:...............................................................................13
2.2.5. Milk industry:...............................................................................................13
2.3. Analysis of stakeholder strategy:........................................................................15
2.4. Analysis of International strategy.......................................................................22
2.4.1. Patterns of Internationalization...................................................................22
References........................................................................................................................ 26
 I. Introduction:

Saigon Beer Alcohol Beverage Corporation (Sabeco) is one of the largest beer and wine
corporations in Vietnam.In the past, Sabeco has responded to changes in the market by
adapting its product offerings and expanding its distribution channels. This included
introducing new beer variants and packaging options to cater to evolving consumer
preferences. In terms of internationalization strategy, Sabeco has been focused on
expanding its presence beyond Vietnam's borders. This has involved exporting its
products to various countries and establishing partnerships with distributors and retailers
in target markets. Sabeco's internationalization strategy aims to capitalize on the growing
demand for Vietnamese beer and leverage its strong brand recognition in the region.
While Southeast Asia remains a key focus area due to its proximity to Vietnam and
cultural affinity for Vietnamese products, Sabeco has also been exploring opportunities in
other parts of the world where there is potential for growth in the beer market. This
includes markets in Europe, North America, and other regions with a significant
Vietnamese diaspora population.

II. Analysis:
2.1. Analysis of dynamic strategy:
2.1.1. Revenue:
- Saigon - Central Beer Company consolidated 3 companies on September 20, 2008.
Some stages that can be divided for analysis include:

 Phase 1: 2009-2012: newly put into operation, must rely on the corporation
to operate. In addition, Saigon - Dak Lak Brewery was born later and faced
many challenges when it first came into operation at the same time due to
 the impact of the global economic recession, which forced drinkers to save
money. Beer, alcohol, and soft drink products are not essential consumer
goods for people. In the context of a sharp decline in global demand for
goods, revenue during this period is unstable.
 Phase 2 from 2013-2019: revenue skyrocketed, peaking in 2018, proving
that the company is in the development stage.
 Phase 3 from 2019-2022: the beer industry is increasingly saturated, and
revenue decreases due to changing consumer trends, new regulations on
alcohol, and the covid 19 epidemic, so revenue gradually decreases and
tends to increase in 2022 but It will be difficult to return to the peak period
like 2018.
- Specific details about the revenue of two beer companies Sabeco and Heineken:

 Phase 1 from 2009-2019:

o Sabeco Beer Company: revenue grows strongly every year, peaking
in 2019 Because the economy gradually recovers after the recession,
the brand is strong, on average the beer industry grows 5%-6%/year.
The average alcohol consumption per capita in liters of pure alcohol
per year is 8.3 liters, equivalent to one person drinking about 170
liters of beer per year. If calculated from 2012 to 2015, Sabeco's
revenue increased by about 25% after 3 years.
o Heineken company: acquired Tiger in 2012 and Carlsberg in 2016,
leading to a sharp increase in revenue. For Heineken, although it has
never announced sales revenue spent on advertising, according to
businesses in the industry, this activity is always in the leading
group. head
  Because both companies have been present in the market for a long
time, the analysis stage is the period when both companies are
developing, located in the middle of the development stage.
 Phase 2 2020-2022:
o Sabeco Company. From 2020 to 2021, revenue declined due to a
number of factors such as the COVID-19 epidemic causing sales to
become stagnant. Although marketing costs increased, the desired
revenue was not the same. In 2022, advertising and promotion costs
at Sabeco are 3,955 billion VND (about 10.8 billion VND/day), this
index for 2021 is approximately 3,013 billion VND (more than 8
billion VND/day). More The beer market is becoming saturated as
the trend of consuming low-alcohol beer becomes more and more
popular, and increasingly strict state regulations and policies force
drinkers to limit or not consume beer.
o Heineken: The business was also greatly affected by the pandemic,
causing revenue to decline. However, in 2022, revenue peaked
during its operation with a figure of 36 trillion VND, leading to
Heineken becoming the hegemon in the beer market. Vietnam
o In short, SMB in particular, and sabeco in general are both in the
early stages of saturation. Because of the economic recession and a
number of other reasons. According to forecasts, the beer industry
may grow again but it is unlikely to return to its golden age, reaching
a peak like 2018-2019.
2.1.2. Profit:

 Phase 1 2008-2013:
o 2008 went into operation on September 20, so SMB has not yet
earned a profit in this first year.
o In 2010, the increase was due to the economic recovery and the
government introduced policies to reduce inflation
o 2011 was an extremely difficult year for SMBs due to the impact of
the global economic recession, high inflation, the Vietnamese
economy was also greatly affected and there were many major
natural disasters such as storms and floods.
o Beer, alcohol, and soft drink products are not essential consumer
goods for people, so production and business activities of the
industry in general and of Saigon-Central Beer Joint Stock Company
in particular face many difficulties. great impact on production and
business performance.
o The price of raw materials for beer production always increases and
remains high. Floods and storms in 2011 disrupted the transportation
and supply of ingredients for beer production, including barley,
water and hops. Restoration and repair of infrastructure requires
large costs, leading to unexpected costs and affecting profits in 2011.
 Due to the impact of natural disasters, consumers may have to pay
for recovery and reestablishment.
 Phase 2 2014 - up to now this period is a period of development with
profits showing signs of increasing steadily over the years
o 2019: SMB's input material prices in 2019 were relatively stable.
o Business strategy and effective production operations: SMB
improves productivity and product quality. Save production costs,
increase profits. SMB maintains profits at a stable level.
o The reason for the decline in 2020 and 2021 is due to the
complicated and prolonged outbreak of the COVID-19 pandemic.
For the whole year, sales costs increased by 24.9%, while business
management costs decreased by 5.7%, therefore, Profit after tax in
2020 reached 158.8 billion VND, down 23% compared to 2019,
corresponding decrease of 48.2 billion VND. Although there will be
an increase in 2022, compared to what SMBs invest in high-tech
production equipment infrastructure, it is still not a high number.
2.1.3. Firms:
160

140

120

100

80

60

40

20

0
1875 1890 1996 2000 2005 2010 2012 2015 2018 2020 2021 2022 2023 2024

Number firms

 Beer was introduced to Vietnam in the late 19th century through the French.
Vietnam's beer industry has a history of over 100 years.
 South: in 1875 France built Saigon Brewery under BGI. Now Saigon Beer
Corporation – SABECO.
 North: in 1890 Beer began to be present in Hanoi, now Hanoi Beer Corporation –
HABECO.
  During the resistance, no large breweries were built. By the mid-80s, only these
two breweries produced beer that met about 60% of the demand in the country.
During the subsidy period (1976-1986), the beer market was not formed in its own
right: small in size, heavily subsidized.
 Vietnamese beer only really developed when there were reform policies in the
national economy, that is, after 1986. In the new conditions of Vietnam's economy
after the opening up, the lives of all classes of people have made important
improvements. By 1996, the country had 26 brewing enterprises.
 In 2003, there were many other beer companies operating independently on a
smaller scale. By 2012, with 151 enterprises, there were more than 300 breweries
covering the country. At this stage, new, beginning businesses entering the market
are on the verge of thriving. (Brandsvietnam, n.d.)
 In 2018, according to statistics from market research companies, Vietnam had 110
enterprises with nearly 500 brewing establishments based in almost all provinces
and cities across the country. The number of businesses decreased but the number
of breweries increased due to the fact that companies merged with each other with
the aim of increasing market share (for example, Heineken reached an agreement
to acquire Asia-Pacific Brewery (APB), owner of the Tiger beer brand). However,
there are also a significant number of small, weak companies with insufficient
competitiveness that have exited the market. This is the golden period, the stage of
development of the beer market in Vietnam. (Satra, n.d.)
 Up to now, the beer industry will not be able to return to its former heyday because
production costs are still high. The market is highly concentrated with the majority
of market share in the hands of 4 big and strong brands: Sabeco, Habeco,
Heineken and Carlsberg. Declining alcohol consumption is not only a difficult
story of the economy but also an inevitable future trend. Spending on unhealthy
beverages will gradually decrease and Vietnam's legal policies will also restrict
people from consuming alcoholic beverages." In 2022, there is a decrease of about
5%-7% growth compared to 2019. In 2023, the beer industry has not shown many
signs of prosperity. (Cafebiz, n.d.) (Tuoitre, n.d.)

Conclusion:

It is predicted that the number of brewing enterprises in the future will decrease, the
number of factories will decrease slightly. Because small companies that do not have
enough competitiveness in the market will be bought by large companies. And Vietnam's
beer market is currently in a period of business saturation, difficult to develop as in the
period of 2012-2019. If new businesses want to enter the market, they require very strong
capital and sufficient capacity to compete, then the business will be profitable.

2.2. Analysis of diversification strategy:

2.2.1. Firm Scope:
- Saigon - Central Beer Joint Stock Company has 4 member units in Dak Lak, Binh
Dinh and Phu Yen provinces; multi-field activities such as: Trading and production
of beer, wine, alcohol, beverage, equipment spare parts, raw materials of food
industry ...
- In general, the past year has many positive points in production and business
activities of the Company, although the macro situation has many fluctuations
affecting the production and business activities of the Company. Specifically,
SMB's total revenue in 2022 reached 1,310.94 billion, up 12.47% year-on-year. A
bright spot in the past year was the target of profit before tax increased by 16.16%
compared to the previous year and reached 167.83% compared to the plan.
(Static2.vietstock, n.d.)
2.2.2. Diversification Types:
- SMBs are a business that has many businesses that they are involved in but the
majority of their revenue is coming from the production and sales of beers.

- However, in the beer industry alone, the level of diversity of the company is high.
The company's goal is to pursue a product differentiation strategy. The company
has developed more than 13 product lines, aiming to satisfy consumer needs,
creating unique value. Always be creative and launch new products to attract
customers.
 (SMB_Baocaothuongnien_2022, n.d.)

Financial
- SMB's parent company is Sabeco, and ThaiBev completed its acquisition of
Sabeco in late 2017. (Virvn, n.d.)
- With the arrival of ThaiBev, will Sabeco have more support to increase its position
against Heineken, Habeco and Carlsberg? Looking at the price that investors paid
was 320,000 VND/Sabeco share, 3 times higher than the price when Sabeco shares
went public a year ago, it can be said that Thai people have paid a very high price
for Sabeco. The willingness to pay a high price shows that Thai investors
understand the value of a 140-year-old business like Sabeco and understand the
needs of a market of nearly 100 million people that can bring them profits in the
 future. (Vietnamnet, n.d.)

(Nhadautuvn, n.d.)

In summary, with the solid backing of Thaibev, the parent company SABECO currently
occupies the 2nd largest market share in the country in the beer industry => SMB has
strong enough capital to continue to compete and develop in the industry.

Operational
- Saigon Beer is the main product in the entire production and business activities of
the whole company. In addition to Saigon Beer, the company also produces and
sells a number of other products (self-trading products) such as draft beer, Serepôk
bottled water, Serepôk wine, Vietnamese Ginseng wine, Basalt brown rice milk,
Basalt corn milk, Dakclean antiseptic gel, export beverages, logistics services.
- In general, the Company's sourcing and selection of raw material suppliers is often
prioritized only in selecting and working with former suppliers. This can save
initial onboarding time because both parties already understand each other's ways
of working.
- In particular, SMB's production and business activities depend on the plan and
strategy of Saigon Beer – Alcohol – Beverage Joint Stock Company (Sabeco). At
the same time, Sabeco is also the main supplier for SMBs, so it will be priced
more competitively in terms of cost than the market. However, this will make the
company dependent, passive and have little choice when there are fluctuations
from suppliers.
- Exploit economies of scale and scope.
Strategic
- Based on strong capital potential, based on parent company Sabeco's goal of fast
and stable growth, the company chooses a diversified growth strategy, and at the
same time applies reduction strategies for growth.
- The company constantly launches beer product lines with different prices. Mainly
focusing on the high-end and near-high-end segments. The purpose of serving
different needs of customers.
- Legal risks: Decree 100/2019/ND–CP stipulates administrative penalties for
drinkers and beer drivers of vehicles participating in traffic, Decree 24/2020/ND–
CP has introduced regulations on the law on prevention and control of harmful
effects of alcohol. The above decrees have caused a great impact on enterprises
operating in alcohol production and trading => The company has launched many
non-alcoholic beer products.
 High enterprise competitive advantages.
 2.2.3. The Strategist’s Toolkit: Diversification Matrices
- According to the general report, it is known that Vietnam's beer consumption as of
2022 is at 3.8 million kg liters / year, accounting for 2.2% of the world market.
Thanks to this statistical result, Vietnam has become the leading country in the
whole ASEAN region, ranking third in Asia (after China and Japan) in terms of
beer consumption. With a large population and a young population structure, the
needs of Vietnamese people are relatively large. The current market has strong
growth potential. Besides, the purchasing power of Vietnamese consumers will be
a fertile ground for beer brands to exploit.
 The industry has a relatively high attractiveness.

2.2.4. Mineral water industry:

- Industry attractiveness:
 Demand is high because spring water is an essential human need, especially
in the context of the hot and humid climate in Vietnam.
Increasing health awareness makes Vietnamese consumers prioritize
mineral water over other beverages.
Economic growth drives demand for spring water consumption, especially
in urban areas. Mineral water is conveniently bottled, easy to carry with
you, and suitable for the active lifestyle of today's consumers.
 Potential market for the industry
 Highly attractive industry
- Competitive advantage:
 Serepok spring water (HOLD)
 o Intended users: Suitable for all ages
o Market: widely distributed in the central provinces of Vietnam.
 Consumption level:
o 2022 will consume 17.18 million liters, down 6.3% compared to
2021.
o 2021 consumed 18.33 million liters, an increase of 90.5% compared
to 2020.
o 2020 consumed 9.61 million liters.
- Although serepok consumption in 2022 only accounts for 0.82% of the total 2.1
billion liters of the spring water market, it is far behind giants such as
AQUAFINA, LAVIE, Vinh Hao, ...
- Mineral water is a necessity for the body. Although it only accounts for a small
portion of the company's beer output, this is the product that accounts for the
largest consumption of SMB after beer.
 Potential market for the industry.
 This market is not really new, but looking at SMB's consumption level, it is
quite stable, even though it is only distributed in the central market.
2.2.5. Milk industry:
- Industry attractiveness
 Young population: Vietnam has a young population, with more than 60% of
the population under 35 years old.
 This population group has a high demand for milk and dairy products,
especially for children.
 The rising middle class is growing rapidly, leading to higher demand for
premium nutritional products such as milk.
 Health awareness: Increasing health awareness pushes Vietnamese
consumers to choose healthy dairy products.
- Competitive advantage
 Bazan Milk (HOLD)
o Type of milk: Brown rice milk, corn milk
o Intended users: Suitable for all ages
o Market: Bazan milk is widely distributed in the central provinces of
Vietnam.
 2022 will consume 62,217 liters, an increase of 38.7% compared to 2021.
(SMB_Baocaothuongnien_2022, n.d.)
  2021 consumed 44,838 liters, down 32.1% compared to 2020.
(SMB_Baocaothuongnien_2021., n.d.)
 2020 consumed 65,845 liters (SMB_Baocaothuongnien_2020., n.d.)
- Although Basalt Milk consumption in 2022 accounts for only 0.03% of the total
210 million liters of grain milk market, the output is extremely small, the market
share is quite small when only distributed locally, but there are signs positive
about the company's revenue.
- Vietnamese people today tend to spend a lot on healthy products. Saigon-Central
Beer Company is planning to expand the Basalt milk consumption market to the
Southern and Northern provinces to expand the market.
 Potential market for the industry.
 Although the industry's attraction is extremely growing, the level of
competition of Bazan milk is very low compared to major competitors.
Local Factor:
- Marketshare: Product lines such as Bazan milk and Seperok spring water are
products only distributed in Daklak, the market is not very large but is still trusted
by local people.
- SMB takes advantage of beverage production, maximising production including:
mineral water, milk, non-alcoholic beverages, ... Taking advantage of raw
materials and meeting local needs. Doesn't cost much to transport and distribute.

2.3. Analysis of stakeholder strategy:

Issue Employees Suppliers Custumer Goverments Community Shareholders

Product
safety 1 1 1 1 1 1

Job
Fulfillment 1 3 5 5 3 3

Financial
Returns 3 1 5 5 1 1

Impact on
Environment 5 5 3 1 3 3

Emplyees:

 According to the 2022 annual report, with the number of employees 489,
University and post-university degrees (45.6%), College degrees,
professional secondary degrees (35.2%), Elementary and Workers
Technical (11.0%), Unskilled Labor (8.2%). With the same number of
employees as Hue Brewery, employee costs are as follows:
 For selling expensive, staff costs (sales staff, packaging, transportation,
product storage, etc.) are 9,172,608,494 VND (2021) and 11,030,372,882
VND (2022) (annual report SMB)
 For administrative expensive, staff costs (management staff) are
36,658,649,526 (2021) and 39,091,700,740 (2022) (SMB annual report)
 Based on the above analysis, Employees generally have the following
concerns:
- Product safety:
 People are always the most important factor among the factors affecting
product quality, whether business leaders or workers. Product safety
directly affects human health consumption, brand reputation, and business
operations of the enterprise. This includes compliance with food safety and
quality standards, maintaining hygiene during the production process, and
ensuring no use of toxic compounds during production.
o On the Board of Directors' side: company development strategies,
parent company proposals, and product quality, the Board of
Directors has the greatest authority.
o On the workforce side: Professional qualifications, sense of
discipline working spirit, etc. are factors that determine the quality
of goods and services. After all, even if production is automated,
 humans are still directly involved in product production through jobs
that require creativity and sensitivity.
- Job Fulfillment:
 Related to having a safe, fair working environment that encourages
creativity and cooperation. Employees at SMB are provided with labor
protection equipment by the Company to meet the requirements for each
job position. different, appropriate salary, bonus, and welfare policies as
well as periodic training to improve knowledge and skills. The beer
industry is highly competitive, requiring employees to have high capacity
and a sense of responsibility. Completed A good job helps employees have
a stable income, develop their careers, and feel proud.
- Financial Returns:
 A part of employees is concerned about the company's financial profits, as
officers on the board of directors, are concerned about good profits to
ensure stability for employees and the ability to invest in development,
while other departments are not concerned about the company's financial
profits.
- Impact on Environment:
 The beer industry uses many natural resources and can cause environmental
pollution. At SMB, the waste treatment system is 100%, does not harm the
environment and has a treatment system staffed by technical staff. blame
the staff in other departments for not paying much attention to this issue.
Suppliers:
- Suppliers at SMB have high power, including many companies that have
monopolies in providing raw materials for the beer production process.
- Product safety:
 Directly affects consumer health, brand reputation and business operations
of both suppliers and beer businesses. Suppliers are responsible for
ensuring that raw materials and products supplied meet standards food
safety and hygiene, … They always want to provide the best materials for
the company so as not to affect the reputation of their own company.
- Job Fulfillment
 Suppliers have great power at the company so concerns about
jobfulfillment are not important. However, the relationship between the
supplier and the company is maintained to ensure revenue and profits for
SMB and Sabeco in particular. In general, because Sabeco is a large,
 reputable corporation, suppliers must always ensure good performance to
maintain their power in the supply chain.
- Financial Returns:
 Financial returns are the primary objective of suppliers. A supplier's
important concern is to ensure that they receive reasonable financial returns
from the supply of materials and services. Suppliers have the right to Large
forces that can demand higher prices for their products.
- Impact on Environment:
 Suppliers only care about the quality of their raw materials for the company
to ensure quality safety, the impact on the environment is of different
concern to the supplier company itself.
Customer:
 Beer is not just a refreshing drink, but also a cultural part associated with
social life. From meetings with friends, family gatherings. With its
popularity, diversity and unique cultural values, beer is a popular drink in
modern society. Beer is favored by a variety of ages, from 18 to 55 years
old. Each age group has its own reasons and preferences when it comes to
enjoying beer. Today this beverage is easy to find when widely distributed
in the market, diverse products, suitable for different segments and
preferences, making it easy for customers to choose.
- Product Safety:
 Today, the living environment and awareness of people are increasing, and
the need for entertainment coupled with health is more focused than ever.
Beer, although only a popular recreational drink, also needs to respond to
this trend by ensuring safety for consumers' health. It plays a key role in
enhancing the experience and building consumer trust in the beer industry.
- Job Fulfillment:
 Although a good team will create a great product, for customers their
primary concern is always product quality and products that match their
desires.
- Financial Returns:
 Beer is often consumed by customers at gatherings of friends and family.
The SMB company's main profit comes from the sale of beer, so the
increased demand for beer will be profitable for the company. But even so,
financial returns do not affect customers, the main thing they care about to
choose the right product is based on their preferences, the right price, ...
- Impact on environment:
  People in the new age view is gradually changing, they are more concerned
about the environment because it directly affects health. The beer industry,
despite being a popular beverage industry, also has significant impacts on
the environment.
Governments
- Product safety:
 Food safety: The government is interested in ensuring beer is safe for
consumers, does not contain toxic substances, disease-causing
microorganisms, or additives that exceed allowable levels. In addition, the
Government sets regulations and standards on beer production processes to
ensure food hygiene and safety during production.
 Labels and product information: The government requires information on
beer labels to be accurate, clear, and complete, including ingredients,
alcohol content, expiration date, instructions for use, and warnings about
side effects. Harmful effects of beer and alcohol are attached to each
product, contributing to protecting public health
- Job fulfillment:
 The government wants beer businesses to create a good working
environment, ensuring the rights and development of employees.
 Management agencies can carry out inspections and checks to ensure
businesses comply with labor laws, regulations on social insurance,
health, ...
 The Government encourages beer businesses to invest in training and
improving capacity and skills for employees.
 Training and human resource development support programs can be applied
to beer businesses.
- Financial returns:
 The government is also interested in the profits of beer businesses because
it affects a number of financial and political factors. Especially the tax
issue.
 The government sets taxes, especially collecting special consumption taxes
on the beer industry in general and Saigon Sabeco beer to regulate the
production, business and consumption of beer and alcohol, while bringing
benefits to the government budget.
- Impact on the environment:
 In any manufacturing industry, environmental factors always deserve the
most attention. During the beer production process, it has a major impact on
the environment such as water resources, emissions, solid waste and energy.
The government and management agencies set out strict policies and
measures for businesses to follow, both protecting the environment and
 maintaining business development. Close coordination between the
government and Saigon beer businesses is an important factor to protect the
environment and develop the beer industry in a sustainable way.
Community:
 A community is a group of people who live or work on the same area, the
same place. Individuals in a community have things in common in terms of
occupation and lifestyle. They often help and solve problems together.
 For large communities, individuals in the community may not work or be in
the same location together, but they still have common interests in daily
life.
 Community of beer "lovers": They are a large group of people who have an
interest in beer, who are interested in beer, or have a need to consume beer.
They can be the customer groups that the company wants to target, or the
suppliers, employees of the company, shareholders, ... All of whom have an
interest in and need to use beer are called communities of beer 'believers'.
- Product safety:
 The quality of beer is extremely important to the community. They can be
customers; As direct consumers, they will be concerned about the safety of
the product, which directly affects their health.
- Job fulfillment:
 The community is interested in Job fulfillment in the beer industry as it
relates to many aspects of life and impacts the sustainable development of
the community.
o Impact on productivity and product quality: Happy and satisfied workers
often have better motivation and work ethic. This can positively impact
product quality and productivity of the beer industry.
o Social security and quality of life: Job fulfillment affects the quality of life
of workers in the community. When they are satisfied with their jobs, they
can feel stable and have better living conditions.
o Image and corporate social responsibility: The community is often
interested in the image of businesses in the beer industry. If the working
environment is positive and employees are happy, businesses can build a
positive image and receive support from the community.
o Contribute to community development: Satisfied workers can become an
active part of the community, participate in charity activities and contribute
to the development and improvement of the quality of life of the
community.
- Finacial returns:
 The community is often concerned about the profitability of the beer
industry because it affects many aspects of society and economics.
o They can be shareholders of beer companies. How profitable their
investment is.
o They are employees in the beer industry. They care about the
company's ability to pay wages.
o Brewing companies often participate in charity activities and
community support. The community may be interested in how these
businesses contribute to the development and improvement of the
quality of life in the area.
o They can be governments. The beer industry often contributes a
large amount of taxes to the government and creates thousands of
jobs globally. As a result, the profitability of this industry can affect
the income of the nation and the community.
- Impact on Environment:
 The brewing industry can also have an impact on the environment through
the use of water, energy, and waste treatment. The community may be
interested in measures taken by the beer industry to mitigate this negative
impact.
Shareholders:
- Product safety:
 SMB shareholders may view product safety as an important factor in
maintaining and enhancing customer trust. They can expect that SMBs take
the necessary measures to ensure that their products are safe for the health
and safety of consumers.
- Job fulfillment:
 Shareholders care about SMBs creating a positive work environment and
providing development opportunities for employees. Because job
satisfaction is an important factor, it is related to labor performance and
retaining talented employees. A positive working environment can create
long-term value for a business.
- Financial returns:
 Shareholders expect that SMBs will achieve stable and profitable returns
over the long term. They may put a lot of emphasis on this because good
profits can increase the value of the stock and benefit them.
- Impact on environment:
  Shareholders expect that SMB will promote the implementation of
environmental protection measures, and develop environmentally friendly
products and services as it is within the context of sustainability and
responsibility principles. society of a business.
2.4. Analysis of International strategy
2.4.1. Patterns of Internationalization
- Foreign investment
 Vietnam's beer market reached 4.4 billion liters in 2017. This is a potential
market to attract foreign investors
o ThaiBev is a large Thai beer and wine corporation with a 50%
market share in Thailand. Furthermore, this group has experience
and strong financial potential to invest in SABECO. The ownership
rate of foreign investors at Saigon Beer - Alcohol - Beverage
Corporation (Sabeco) has increased. over 53%. (azfin, n.d.)
o Carlsberg Breweries A/S is currently the second largest shareholder
in Habeco, with ownership of 17.51% in 2017.
o Carlsberg holds 100% of the capital of Huda Hue Beer Company.

=> This shows that Vietnam's beer industry is attracting a large amount of foreign
investment.

- International trade
 Despite exporting to many international markets, the proportion of
international revenue is very low (The proportion of export revenue
accounts for only 2% of SAB's total revenue). (cafef.vn, n.d.)
 Depending on each continent and each country, when Saigon beer is
exported, there will be changes to adapt to the international beer market.
For example, In the US, instead of a 450ml bottle, due to local regulations,
later the company had to switch to packaging in 335 ml bottles to be
equivalent to 12oz, a standard for drinks in the US. (VnExpress Kinh
doanh, n.d.)
 Although Sabeco has made strides in expanding into international markets, the
level of the company's internationalization still depends on continuing to improve
and promote its international operations in the future hybrid to increase revenue as
well as profits
 Foreign investment is high, International trade is low, SAB belong to
Multidomestic Industries.
2.4.2. The internationalization of Sabeco.
- Sabeco uses the international strategy is Export. (Sabeco, n.d.)
 SABECO currently exports SAIGON Beer products to many markets
around the world, including:
o Americas: USA, Canada, Chile, Panama…
o Europe: Germany, Denmark, France, Netherlands, England, Sweden,
Switzerland, Spain...
o Australasia: Australia, New Zealand
o Africa: West Africa
o Asia: China, Japan, Taiwan, Hong Kong, Korea, Singapore,
Thailand, Philippines, Malaysia, Laos, Cambodia, …

 With product lines in export markets:

- Revenue: Saigon Beer - Alcohol - Beverage Joint Stock Corporation (Sabeco) said
that the company's 2020 export turnover is estimated to reach 56 billion VND.
(The proportion of export revenue accounts for only 2% of SAB's total revenue)
(anaual report of SAB)
- Sabeco exports beer to many continents such as Australia, Europe, Africa,
America, Oceania and Asia for the following reasons:
 Africa: Beer consumption in Africa is still at the lowest level in the world,
about 10 liters/capita/year compared to 70 liters/capita/year in North
America and Western Europe. However, this is the market with the fastest
growth and generates higher profits than other emerging markets in Eastern
Europe. (thesaigontimes, n.d.)
 Europe: In the high-end beer market, Sabeco can compete with high-end
lager beers such as Bia Saigon Chill. Factors such as growing demand for
beers, per capita consumption and number of The number of associations
 focused on disseminating information about different types of beer is
expected to boost the market growth. (Mordorintelligence, n.d.)
 Australia: Small market but with growth potential.
 Asia: The world's largest beer market, Sabeco can take advantage of its
geographical location and culture to compete. Increased disposable income
has led to high demand for premium and expensive beer of consumers.
(Mordorintelligence, n.d.)
 America: The beer market is diverse, and Sabeco can reach many different
customer segments.
- In addition, expanding the market, enhancing the brand, currently the proportion
of export revenue accounts for only 2% of SAB's total revenue. The increase in
exports can offset the decline in revenue in the domestic market, which is the
reason why SAB exports to all continents in the world.

How: All stages of the production process from input to completion and final products
are inspected and supervised by Sabeco through the Quality Control Board, with a full
team of current personnel and equipment grand. And To export beer to the German
market, SABECO has chosen an indirect distribution channel, that is, through an importer
to bring Saigon beer to the market. After that, the importer will distribute the products
through two channels: hypermarkets, wholesalers, and sell products directly to retailers
(online shop restaurants, etc.) and consumers.

 Conclusion, because sabeco's main revenue does not come from exports, SAB
should focus on developing the domestic market while exporting to major Asian
markets.

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