Organizational culture of Vinamilk

Vinamilk is the abbreviation of Vietnam Dairy Products Joint Stock Company, a company that

manufactures and trades milk and dairy products as well as related equipment and machinery in Vietnam.

According to statistics of the United Nations Development Program, this is the 15th largest company in

Vietnam in 2007, is a brand name of Vietnam Dairy Products Joint Stock Company, known for products

such as: Fresh milk, powdered milk, condensed milk, yogurt, nutritional water... Vinamilk was born on

August 20th/ 1976. This is a company established on the basis of taking over 3 dairy factories, left by the

old regime. Vinamilk has built dairy farms in all parts of the country. Not only developing in the domestic

market, Vinamilk also expanded its brand to New Zealand and more than 20 other countries, including

the US. In addition, Vinamilk is also a pioneer brand to open the way for the high-end organic food

market in Vietnam, with fresh dairy products that meet USDA standards in the United States. What

makes Vinamilk such a big organization in both domestic and international markets? That is the corporate
culture organization - Vinamilk. Vinamilk divides into 3 levels of corporate culture, 6 principles in

company culture, and 7 leadership behaviors in the company's organizational culture:

First, 3 levels of corporate culture:

 For leaders: All members of the company need to make efforts to bring benefits to shareholders,

while effectively protecting the inherent resources of the whole enterprise.

 For employees: Management needs to treat them with respect and create the best conditions for

employees to develop on equal terms, build and maintain a friendly and open culture.

 For customers: Businesses need to commit to providing a wide range of products and services. In

addition, the goods and products must be of high standards and transparent in all transactions.

The second is the 6 principles in Vinamilk's company culture:

 Responsibility: When there is a problem or something happens, the first cause is your fault, do

not blame anyone.

 Results-oriented: Talk and negotiate with each other by quantification.

 Creative and proactive: Never say "no" but always look for at least 2 solutions.

 Cooperation: Adults do not need adult supervision but need partners to cooperate. Therefore,

employees should cooperate together based on the principles of equality.

 Integrity: Do not change white for black, you must be responsible for all your actions and words.

 Excellent: You must be a deep learner, highly specialized and an international standard expert in

your field.
The third is the 7 leadership behaviors in the organizational culture of Vinamilk:

 Work according to specific plans, clear reports and complete KPIs.

 Leaders need to encourage, motivate and care for employees at the right time.

 Observe and train qualified employees.

 Create a good and comfortable working environment and at the same time connect employees of

all departments together.

 Constantly changing and coming up with innovative ideas or unique creative ideas.

 Have a cultured, mature manner in all jobs and situations.

 Leaders are both drivers and servants.

In order to achieve the successes like now, Vinamilk has applied policies to build culture for its

businesses according to the following process:

1. Create awareness for employees

All employees must work in the right manner and the attitude needs to be open, friendly and enthusiastic.

At the same time, each employee also needs to have time management skills. In the process of building

Vinamilk's corporate culture, organizing festivals and praising excellent individuals at work to encourage

morale and encouragement.

2. Organize social activities

studious children in remote areas. Some outstanding charity programs organized by Vinamilk are Dom

Dom shines, Hot air balloons with Vinamilk reach the sky…

3. Vinamilk's sales agents

In addition to establishing corporate culture and employee culture, Vinamilk is also very interested in

building sales agents nationwide. With careful investment, customers entering Vinamilk's agents will feel

the enthusiasm of sales staff and comfort and convenience from equipment to facilities.

Thanks to the establishment and development of corporate culture policies, Vinamilk has had outstanding

success as it is today. In particular, the human factor has been focused on exploiting in the most effective

way. After 45 years of establishment and development, with creative thinking, bold innovation and

constant efforts, Vinamilk has become one of the leading enterprises in Vietnam, making positive

contributions to the development of the land. country in general and the dairy industry in particular,

bringing the Vietnamese dairy brand to high positions on the global dairy industry map. With those

outstanding achievements, the Company was honored to receive noble titles and awards: Labor Medal,

Independence Medal, Top 50 most valuable brands in Vietnam, National Brand, Top Top 10 high quality

Vietnamese products, Top 3 most potential dairy brands of the world dairy industry,….

But such a success, Vinamilk also had a crisis because in 2006, VINAMILK encountered an event with a

label error when it should have been written on the package as "Unsweetened pasteurized fresh milk" but

it was written as " pure pasteurized fresh milk”. This mistake has caused strong protests in the Cambodian

and Philippine markets. Because, from the consumer's point of view, mislabeling is a sign of commercial

fraud. VINAMILK is in danger of being boycotted from the international consumer community.
The current situation of Vinamilk's corporate culture has had many innovations and developments.

Besides, this company culture still has some disadvantages and limitations that businesses need to

address.

1. Inside the business

With 35 years of establishment and development, Vinamilk has built a distinct corporate culture in which

employees have a friendly working environment and can unleash their creativity. Thanks to that, more

than 4000 Vinamilk officers and employees have successfully turned Vinamilk into the leading nutrition

brand in Vietnam.

2. Outside the business

Outside the business, Vinamilk has built a strong company culture that is different and different from

competitors in the same business. The culture of this enterprise possesses many advantages such as:

• For the Law and state agencies: Vinamilk always respects and commits that all business activities

comply with the provisions of the law.

• For consumers, customers, suppliers and investment partners, shareholders

• Vinamilk's products are always towards the mission of providing the community with the best nutrition.

At the same time, Vinamilk always puts the interests of consumers first.

• Vinamilk always considers customers as a business partner on the basis of mutual benefits.

• Respecting mutual benefits is an important and essential motto in Vinamilk's relationship with partners,

investors and shareholders.

Limit
In addition to the above advantages, Vinamilk's company culture also has some limitations when it

focuses too much on the company culture in the external environment, but the internal culture is still not

really standard. In addition, Vinamilk has not been an equitized enterprise for a long time, so the

enterprise still has the nuances of the state-owned enterprise culture.

The lesson I learned from the corporate culture organization Vinamilk is that you should divide your

business into different levels and each level has a small cultural organization, thus making the

organization more sustainable. In addition, businesses must make certain rules and standards, because

businesses as an organization must have a culture, need regulations to follow, to make the organization

larger and have the necessary principles. are followed and an organization needs to build business

consistency and transparency. If the organizational culture of the enterprise wants to be good, sustainable,

and develop in the long run, it is the leaders of the organization who must have the right leadership

behaviors in the organizational culture. must plan, intend, and create a good working environment,

comfortable and at the same time create cohesion among employees. And the advantages or strengths of

the organization need to further promote and overcome the weaknesses and limitations of the

organizational culture to create a complete and strong organization.