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PESTEL Analysis - Case Study of Vinamilk

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Ken Ken

on 31 August 2014

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Transcript of PESTEL Analysis - Case Study of Vinamilk

Natural environment
: the tropical monsoon climate is a challenge for dairy farm.
The PESTEL analysis is very important because it provides the necessary external information within the industry.
Group 2

1. Le Thi My Nga
2. Dao Quoc Viet
3. Pham Hong Duong
4. Do Duc Quoc Cuong
5. Do Duy Anh

CPI Growth (%)
Source: http://cafebiz.vn/thi-truong/thang-5-cpi-ca-nuoc-tang-02-201405241553577539ca101.chn
Things that may change
Will Vinamilk have to invest further or replace the assembly line for the product diversify or innovation in technological, when ?

Will Vinamilk have to purchase any new IT system or rely on technical providers ? How many & how much will these resources cost ?
1. Risk management system: people / process / software system... by cooperating with KPMG for the advanced risk management standards and practiced tools.

2. Continue investing to R&D.

3. ISO 27001
Tax cut down.

Exchange rate.

Worldwide economical & political instability.

Consumer Price Index.

Inflation rate.


Oil & Gas price.

A high potential dairy market in Viet Nam.

Expanding & diversifying domestic distribution network.

Expand export markets & business operations abroad.

Gross Domestic Product (GDP) increases.

Tax cut down.

Interest rate down.
Source: Annual Report 2013 - Vinamilk
Source: Annual Report 2013 - Vinamilk

Environment issues: pollutions from dairy farm create problems. National standards have been applied:

TCVN 5945:2005 – National Standard methods for the Examination of Industry Wastewater.

TCVN 5939:2005 - National Technical Regulation on Industrial Emission of Inorganic Substances and Dusts.

Natural Environment
Environment Issues
Environment Issues
Things that may change
Reduce / change the tin for powder milk to natural material like cardboard.

Co-operate with supplier to utilize the safe and fresh plastic raw material.

Utilize natural gas on production instead of diesel / electric.

ISO 14000.

Disposal of materials.

Energy availability and cost.

Ecological consequence of production processes.

Cyclical weather.
Vietnam is a country with a stable political institutions that facilitate doing business in Viet Nam. Moreover, Vietnam is a peaceful country without war and terrorism.

The government has many policies to support local milk industry for running business.
However, Vietnam is a mixed economy so government still plays the big role in market.

Vietnam government decreases the foreign trade barrier to attract more investment from foreign investors.
Vinamilk must ensure the production, which are safety and health for customer by using modern system. Company should follow the rule of food safety not only in Vietnam but also others organization in global.

Vietnam has many different tax rates so it will make difficult for any company. It also affects on the price decision of company.

Recently, government applied the ceiling market price for baby milk under 6 years old.
Vinamilk has taken certain actions to show its environmental responsibilities.
Isolating all sources of noise far from residential areas.

Satisfying typical environment standards.

Participating in environmental activities.

Using environmentally friendly packing materials.

Reducing greenhouse gases.
Understand Vietnamese nature, Vinamilk has been choosing the right places for dairy farms.

Strong technology helps it to limit climate affection and turn it into a strength compared to lost of local competitors.
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