Ho Chi Minh City University of Economics and Finance

Faculty of Economics

MIDTERM REPORT

OPERATIONS MANAGEMENT - MGT1127E

Lecturer: Tran Hoang Nam

Group: 08

Ho Chi Minh City, March 14th, 2025

1
 Đánh giá chung mức
Đánh giá nhiệm vụ (*)
độ thực hiện

Chỉnh sửa, hoàn thiện bài viết

Đóng góp ý kiến cho bài viết
Xây dựng đề cương toàn bài

Tham gia phản biện trên lớp

Thuyết trình, tham gia clip,
Biên soạn slide, biên kịch

Tổ chức, điều hành nhóm

Trực tiếp viết bài và biên

Trung bình (40-69)%

S

Giỏi (85-100)%
trả lời phản biện
Sưu tầm tài liệu

Khá (70-84)%
soạn nội dung

Yếu (0-39)%
T Họ tên MSSV
T

Văn Tuyết 215014

1 T T T T T T T T T 100%
Nhi 793

Lê Hồng 215018
2 T T T T T T T T T 100%
Ân 235

Mông 215018
3 T T T T T T T T T 100%
Quỳnh Chi 523

Trần Diễm 215130

4 T T T T T T T T T 100%
Quỳnh 810

Nguyễn 225016
5 T T T T T T T T T 100%
Thùy Trang 075

Trần Phạm 215011

6 T T T T T T T T T 100%
Thùy Linh 766

(*) Đánh giá phần này theo quy ước sau: Trưởng nhóm:
- Tốt :T
(ký tên, ghi rõ họ tên)
- Khá : K
- Trung bình : TB Nhi
- Yếu : Y
Văn Tuyết Nhi
- Không tham gia: ∅

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 Fail Pass Good Distinction
Assessment criteria
(1-4) (5-6) (7-8) (9-10)

1. Use the operations model to describe production

management of the company, from input to
transformation process to output (choose only one
product).

2. Use the Porter’s 5 competitive forces model to fully

understand the competitive environment of this product
market.

3. Use the fishbone diagram to identify a possible

quality problem that may occur in the company.

4. Use the process flowchart to design a sales process

for the sales team if the company wants to distribute
their products through an e-commerce channel.

5. Use the servicescapes to design a shop specializing in

selling the product in Question 1.

Average score:

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I. Introduction to Ajinomoto Group ......................................................................................................................... 5
1. Ajinomoto Group.............................................................................................................................................. 5
2. Ajinomoto Vietnam .......................................................................................................................................... 5
II. Questions ............................................................................................................................................................... 7
Questions 1. Use the operations model to describe production management of the company, from input to
transformation process to output (choose only one product). ................................................................................... 7
1. The input of Ajinomoto MSG ...................................................................................................................... 7
2. The transformation process ........................................................................................................................ 11
3. The output ................................................................................................................................................... 14
Question 2. Use the Porter’s 5 competitive forces model to fully understand the competitive environment of this
product market. ....................................................................................................................................................... 15
Question 3. Use the fishbone diagram to identify a possible quality problem that may occur in the company. .... 17
Question 4. Use the process flowchart to design a sales process for the sales team if the company wants to
distribute their products through an e-commerce channel. ..................................................................................... 19
Question 5. Use the servicescapes to design a shop specializing in selling the product in Question 1. ................ 21
References .................................................................................................................................................................. 23

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I. Introduction to Ajinomoto Group
1. Ajinomoto Group
• History and Scale:

- Ajinomoto Group is a Japanese global food company, established in 1909.

- Multinational operations, specializing in the manufacturing and sales of seasonings, processed foods,
beverages, and chemical products.

• Vision and Core Values:

- Vision: "We contribute to greater wellness for people worldwide by unlocking the power of amino acids to
resolve the food and health issues associated with dietary habits and aging."

- "ASV" (Ajinomoto Group Creating Shared Value): Creating shared value through sustainable business
activities, contributing to society and the environment.

• Key Products:

- AJI-NO-MOTO® monosodium glutamate.

- Various seasonings, processed foods, beverages, and chemical products.

2. Ajinomoto Vietnam
• History and Development:

- Established in 1991, a 100% foreign-invested company under Ajinomoto Group.

- Over 30 years of operation, continuously expanding scale and developing a nationwide business network.

• Scale and Network:

- Two representative offices in Ho Chi Minh City and Hanoi.

- Two major production plants in Bien Hoa and Long Thanh, with a 3rd plant under construction in Long
Thanh, Dong Nai.

- Three major distribution centers and branches across 63 provinces and cities with over 2,300 employees.

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• Business Products

- Seasonings: Ajinomoto MSG, Aji-ngon flavor seasoning, AJINOMOTO rice fermented vinegar and apple
fermented vinegar,…

- Beverages: Blendy, birdy

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- Complete Seasoning: Aji-Quick Braise, Aji-Quick Hotpot, Aji-Quick Noodle,..

II. Questions
Questions 1. Use the operations model to describe production management of the company, from input
to transformation process to output (choose only one product).
1. The input of Ajinomoto MSG
a. Ingredients

MSG is produced from natural ingredients rich in starch or sugar, such as corn, sugar beets, wheat, etc.,
depending on the conditions and available resources in each country. The choice of raw materials is based on
the following criteria:

- The ingredients must have traceable origins to guarantee food hygiene and safety standards.

- The raw material sources must be plentiful and capable of providing a consistent supply to support
uninterrupted production.

- The company emphasizes the use of cost-effective raw materials to maintain economic competitiveness, while
also ensuring they meet quality standards to maximize the extraction of sugar syrup solution.

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 Map of raw materials for MSG production

In Vietnam, Ajinomoto utilizes sugarcane, cassava as its primary raw materials. Over 90% of these
materials are sourced locally from domestic suppliers. The raw materials undergo rigorous quality checks from
the initial stages to ensure consistent quality during the production of glutamate, a key component in MSG.

b. Machines

Ajinomoto's machines are all brought in from Japan and carefully checked before they are used in the
factory. The main machines include:

- Fermentation equipment: These tanks feature a stirring system to ensure even fermentation and provide a
smooth surface finish.

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 Fermentation Equipment

- Dryer: Utilized to eliminate moisture during MSG production.

- Conveyor belt: Transports MSG from the feeding hopper to the packaging area.

- Weighing machine: Accurately measures MSG according to predefined weight specifications.

- Packaging machine: Packages MSG into its final containers.

- Sealing machine: Seals the packaging to ensure product integrity.

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 MSG is produced by fermentation

c. Labor

Key roles in Ajinomoto's MSG production process include: production workers, packaging operators,
machinery engineers, quality control inspectors, and product research and development specialists, ...

Staff use air blower to remove foreign objects before entering production area

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 MSG packaging area

2. The transformation process

- Preparation of raw materials: Before being sent to the factory, raw materials like tapioca starch and cane sugar
are carefully tested. The Ajinomoto Group supplies microorganisms, which are thoroughly tested and safely stored
in a lab, ready for use in the fermentation process.

Once inside the factory, cassava starch is treated with enzymes, known as probiotics, to create a simple sugar
solution. This sugar solution is then used in the fermentation process to produce glutamic acid, also called
glutamate.

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 The process of creating MSG

- During fermentation: Microorganisms use sugar from the raw materials to produce glutamic acid. The conditions
during fermentation are automatically adjusted and closely monitored from the control room, ensuring precise
control to achieve the best results.

- Color filtration: The glutamic acid is neutralized by adjusting the pH of the sugar solution. It is then treated with
soda to create MSG liquid. This liquid goes through a color filtration process using activated charcoal and other
steps to ensure the purity of the MSG.

- Crystallization: Next, the MSG liquid is concentrated using heat and then moved to a crystallization system,
where MSG crystals of different sizes are formed.

- Drying: The MSG is transferred to drying equipment, where hot, purified air dries the granules, creating ideal
storage conditions for the product.

- Sorting: After drying, the MSG is sent to a medium sieve to separate particles of different sizes.

- Inspection: In the packaging area, strict food hygiene and safety measures are followed. All employees must
follow standard hygiene rules, including wearing masks, hats, and clean clothing, changing shoes, washing hands
with antibacterial soap, and drying hands properly.

- Packaging: This process is carried out on a fully automated production line. Ajinomoto MSG is packed in
various sizes to meet the different needs of consumers. After the MSG production process, the subsequent steps
packaging, testing, storage, and distribution are carried out in the following three areas:
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+ Area A: : The processed MSG particles are transported through pipes to pre-installed weighing machines. The
bags are then sealed and labeled with production details. As the products move along the conveyor belt, employees
check the color accuracy, print quality, and overall appearance.

Automatic weighing

+ Area B: The items are moved on conveyor belts, automatically weighed, and placed into boxes, which are then
sealed with tape. This process is continuously monitored, with sensors alerting staff if there are any weight
irregularities.

Product inspection process

+ Area C: Using a robotic arm, products are neatly stacked onto pallets and placed in temporary storage. Random
samples are taken from the warehouse and sent to the quality control department for evaluation based on various
standards.

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 Products are stacked into boxes using robotic arms.

Warehouse

3. The output

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 All Ajinomoto products undergo rigorous quality checks before being stored and distributed to ensure high-
quality output. If any defects are detected, the product is rechecked from the beginning, and the entire batch is
canceled to maintain consistent quality. Ajinomoto has automated the process from finished products to
packaging and weighing to minimize the risk of contamination and ensure compliance with food hygiene and
safety standards.

Ajinomoto ensures that MSG packages meet quality standards and are carefully packaged, ready to be
delivered to consumers. For the Vietnamese market, Ajinomoto adheres to strict quality assessment standards,
including ASQUA, ISO 50001, Food Defense,ISO 18001, HACCP, ISO 9001,... These standards are applied to
evaluate the entire operational process, from input materials to output products, production activities, as well as
their impact on the environment, economy, and society.

Question 2. Use the Porter’s 5 competitive forces model to fully understand the competitive environment
of this product market.

- Rivalry Among Existing Competitors

Competition Level: High. Ajinomoto is one of the largest MSG brands in the world, but they face fierce
competition from many other companies such as Vedan, Miwon, Masan (Vietnam), Qingdao (China), low-cost
domestic products and many other companies around the world. The MSG industry is very competitive
because:

+ Product differentiation: Ajinomoto has the advantage of a long-standing brand, stable quality and
reputation, but still has to constantly innovate to maintain its competitive advantage.

+ The global MSG market share: is very large, attracting many companies to participate.

+ Easily substitutable products: MSG is a product that can be easily replaced by other spices, increasing the
level of competition.

+ Price sensitivity: MSG prices are very sensitive and greatly affect consumer choices.

+ Companies in this industry: use strong pricing, distribution, and marketing strategies to gain market share.
For example, Masan with its Chinsu MSG brand has the advantage of a strong domestic brand in Vietnam.
Meanwhile, Vedan competes with Ajinomoto on low prices, targeting the low-end customer segment.

- Threat of New Entrants

The MSG manufacturing industry has high barriers to entry such as:

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+ Large investment capital: MSG production requires large initial investment capital and high production
technology, strict quality control and compliance with food safety regulations.

+ Strong supply chain: A strong supply chain is essential to compete in this industry. Large companies such
as Ajinomoto, Vedan, Miwon have built strong brands and extensive distribution systems, making it difficult
for new businesses to compete. However, some Chinese and Indian businesses with low production costs can
enter the market, for example Qingdao (China) is expanding its exports of cheap MSG to Southeast Asia.

- Threat of Substitutes

MSG can be replaced by natural seasonings such as fish sauce, seasoning powder, nutritional powder,
sugar, salt, etc. that can replace MSG in some cases. This shift may be driven by the trend of healthy eating,
avoiding MSG. For example, Masan promotes Chin-su seasoning powder "MSG-free" to attract consumers
who are afraid of MSG. In addition, organic products, natural seasonings such as mushroom and seaweed
seasoning powder are becoming popular alternatives.

- Bargaining Power of Suppliers

The main raw materials for MSG production such as sugarcane, cassava, and tapioca starch are quite
popular. Ajinomoto has a global supply chain, helping to reduce dependence on a single supplier. However, if
the price of input materials increases (such as sugarcane and cassava prices), the cost of MSG production will
be affected. For example, fluctuations in cassava prices in Vietnam can affect Ajinomoto's production costs.

- Bargaining Power of Buyers

Consumers have many choices among brands such as Ajinomoto, Vedan, Miwon, Masan, etc., putting
pressure on manufacturers on prices. Supermarkets and large distributors can also force down prices and
demand high discounts when importing goods. Smart consumer trends require high-quality products and limit
MSG, requiring Ajinomoto to continuously innovate its products. For example, retail chains such as Big C and
VinMart can require Ajinomoto to provide products at more competitive prices to increase profits.

Conclusion:

Porter's model shows that Ajinomoto is operating in a highly competitive market. However, thanks to its
strong brand, advanced production technology, and large distribution system, they still maintain their position
in the market. To maintain market share, Ajinomoto needs to pay attention to new consumer trends such as
healthy eating, reducing MSG, and competition from substitute products. This requires the company to
constantly innovate its products and business strategies.

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Question 3. Use the fishbone diagram to identify a possible quality problem that may occur in the
company.

The quality of Ajinomoto MSG is the most important factor, directly affecting the brand reputation and
consumer trust. This report uses the fishbone diagram (Ishikawa) to analyze in detail the potential causes that
may lead to quality problems of Ajinomoto MSG, thereby proposing solutions and improvements. Use the
fishbone diagram with the 5M + 1E model to classify the main factors affecting the quality of Ajinomoto MSG:

• Man:

- Lack of experience: Workers do not have enough skills and experience to properly perform production and
quality control procedures.

- Personnel turnover: Frequent personnel turnover makes it difficult to maintain product stability and quality.

- Ineffective training: Inadequate or ineffective training leads to incorrect procedures.

• Machine

- Old machines: Equipment that operates unstably, causes errors, and does not meet modern technological
requirements.

- Inadequate maintenance: Machinery that breaks down, interrupts production, operates incorrectly, and causes
errors.

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- Inaccurate measuring equipment: Measuring equipment that breaks down, is not periodically calibrated, and
does not meet quality standards.

• Material

- Unassured input quality: Raw materials do not meet standards, contain impurities, affecting the quality of the
final product.

- Unassured raw materials: Unstable supply, uneven quality of raw materials between shipments.

- Improper storage of raw materials: Raw materials are moldy, damaged due to improper storage at
temperature, humidity, or infected with insects and pests.

• Method

- Non-optimized production process: Lack of detailed instructions, steps are not strictly controlled.

- Ineffective quality control method: Failure to detect errors, too complicated, time-consuming.

- Ineffective quality management system: Lack of coordination, lack of evaluation, system improvement.

• Environment

- Unsuitable temperature and humidity: Causes mold, clumping of products, affecting the quality of raw
materials.

- Air pollution: Dust and bacteria penetrate the product, affecting the health of workers.

- Factory hygiene is not guaranteed: Dust and waste accumulate, causing product pollution.

• Measurement

- Inaccurate measuring equipment: Errors, inaccurate test results.

- Incomplete data recording: Difficulty in analysis, evaluation, unable to trace the original product source.

- Inappropriate measuring method: Unable to measure important qualities, causing errors.

• Conclusion

The detailed analysis using a fishbone diagram has helped us identify the potential causes of Ajinomoto
MSG quality problems. From there, corrective measures and improvements are proposed to improve product
quality, meeting consumer needs.

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Question 4. Use the process flowchart to design a sales process for the sales team if the company wants to
distribute their products through an e-commerce channel.

1. Start

- Market research: Identify customer needs, analyze competitors, and observe market trends.

- Identify potential customers: Define and target potential customer groups.

- Product development planning: Plan product development, improvements, or new product creation.

- Pricing strategy: Set appropriate pricing that aligns with the market and customer expectations.

2. Order Store Setup

This stage is divided into two pathways:

• Create a website:

- Design a business account.

- Design a booth with the Ajinomoto brand.

- Set up payment methods (COD, e-wallet, bank transfer).

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- Prepare the product warehouse and inventory management system.

• Set up an account on platforms: Register and set up an account on e-commerce platforms such as Shopee,

Lazada, etc. Design a booth on an e-commerce platform similar to a website.

3. Order Processing

- Create product listings.

- Develop a marketing strategy.

- Receive orders from customers.

- Determine the quantity of products.

- Pick up products from the warehouse.

- Create a purchase invoice.

- Package the products.

4. Delivery Process

- Submit a delivery request to the shipping company.

- Proceed with product delivery.

5. Customer Receives the Order

- If the customer accepts the goods:

- Perform payment and reconciliation.

- Provide customer care, collect feedback, and continuously improve the service.

- If the customer refuses the goods:

- Handle payment and reconciliation for returned goods.

6. Finish

- The process is completed after receiving customer feedback and making continuous improvements.

This workflow ensures a systematic and efficient process from planning and setting up the store to delivering
the products and maintaining customer satisfaction.

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Question 5. Use the servicescapes to design a shop specializing in selling the product in Question 1.

STORE MODEL SPECIALIZING IN SELLING AJI-NO-MOTO PRODUCTS

Style: Vietnamese traditional style and cozy

- Vision: minimalist, airy,cozy family atmosphere,white light, mixed with a little yellow light

- Hearing: soft melodies or instrumental music

- Smell: gentle citrus and herbal note

- Taste: counter for guests to try the food: soup, fried food

- Touch: the product has smooth and sturdy packaging, bamboo furniture (chairs, tables ...)

Shop overview

• Store and product introduction

The store is designed to offer not just AJI-NO-MOTO MSG products but also a range of products made
from MSG. It features on-site cooking and tasting experiences, along with a variety of recipes using AJI-NO-
MOTO. The main theme is "Experience cuisine every day with AJI-NO-MOTO."

• Main color: White—Red

- White: Represents cleanliness and modernity, creating a spacious and professional feel.

- Red: Symbolizes enthusiasm and serves as a brand highlight.

• Interior material:

Combined with high-quality aesthetic materials to bring the best experience to customers when coming to the
store.

- Bamboo furniture: provides coziness, closeness, and is also easy to clean

- Shiny metal: has a modern, professional, durable feel that suits a store.

- Tempered glass: makes the space more spacious, airy, and easy to clean.

• Space design

- Spaces

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 Product displays are scientifically arranged, and projection screens show videos about product instructions,
history, and benefits. Staff uniforms are courteous and professional, matching the brand's colors.

- Sound

In the store, soft melodies or instrumental music will be used to give customers a comfortable space when
buying products.

- Scent: a gentle citrus and herbal note that creates a soothing, pleasant feeling

- Temperature: always maintain at 25 degrees or more

• Product display area

- Location: placed near the door when customers enter, easy to see

- Design: Arrange the types of MSG products according to different sizes.

+ Small packages (100g, 200g) at the front or top, easy for customers to choose quickly.

+ Larger packages (400 g, 900 g, 1.1 kg) can be placed at the back or bottom of the shelf.

+ The product combo will be located in the promotion area for customers to easily choose.

In addition, there are small signs stating the product name and ingredients of AJI-NO-MOTO MSG.

• Product test area:

- There's a counter for guests to try the food.

- Direct preparation staff and instructions for preparation and use appropriate to the dish

• Checkout counter

- Multiple payment options are available, including online payments (bank transfer, QR code scanning) and
cash payments.

- The store has its own POS system and QR code for quick and easy transactions.

- Eco-friendly bags with the brand logo are provided.

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References

1. Bột ngọt AJI-NO-MOTO®, retrieved March 14, 2025, from https://www.ajinomoto.com.vn/vi/san-

pham/bot-ngot-ajinomoto

2. Ajinomoto system of quality assurance, Ajinomoto Group Global Website - Eat Well, Live Well, retrieved
March 14, 2025, from https://www.ajinomoto.com/quality_assurance/ajinomoto-system-of-quality-assurance

3. What is MSG and How is it Made?, Ajinomoto Group Global Website - Eat Well, Live Well, retrieved
March 14, 2025, from https://www.ajinomoto.com/msg/what-is-msg-and-how-is-it-made

4. Assurance of Product Safety, retrieved March 14, 2025, from

https://www.ajinomoto.com/cms_wp_ajnmt_global/wp-content/uploads/pdf/SDB2019_11 13.pdf

5. Đối thủ cạnh tranh nổi tiếng và 'tai tiếng' của Ajinomoto Việt Nam là ai?, retrieved March 14, 2025, from
Đối thủ cạnh tranh nổi tiếng và 'tai tiếng' của Ajinomoto Việt Nam là ai?

6. Hiện tượng cộng hưởng vị Umami - Bí quyết làm bùng nổ hương vị của “Thịt ngủ đông”!, retrieved March
14, 2025, from https://www.ajinomoto.com.vn/vi/kham-pha-umami/huong-vi-umami

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