Vinamilk Case Essay

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I. The Case 1. Overview of Vinamilk Corporation Vinamilk Corporation is the leading producer of dairy products in Vietnam based on sales volume and revenue. Its products range from core dairy products such as liquid and powdered milk, to value-added dairy products such as condensed milk, drinking and spoon yoghurt, ice cream, and cheese. Vinamilk Corporation offers one of the largest dairy portfolios in Vietnam, across a wide selection of products, flavours, andpackaging sizes. According to Euromonitor, Vinamilk has been the number one dairy player in Vietnam for the three years ending 31 December 2007. Since commencing operation in 1976, Vinamilk Corporation has built the largest distribution network in Vietnam and has leveraged its network to introduce new products to the market, such as juices, soya milk, bottled drinking water and coffee. Vinamilk Corporation has the leading distribution network in Vietnam, giving it broad access to consumers. It generates a substantial majority of its revenues from sales of its products in Vietnam comprising both dairy and non-dairy products and exports to countries such as Australia, Cambodia, Iraq, the Philippines and the United States. 2. Case Study: Vinamilk and the series scandals in its business activities. Despite the fact that Vinamilk is the leading producer of dairy products with the majority consumers in Vietnam, this company still loses its reputation due to some scandals related in business ethics. The scandal in 2006 about labeling violation and scandal of exchanging coupon for promotional gifts in 2007 are the two biggest stigmas of Vinamilk and these made the CEO directly gave explanation and official apology. In addition, Vinamilk have also faced up with laments of consumers about the quality of dairy products. Unethical activities in business of Vinamilk are illustrated as follows. Firstly, back into

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