1

Table of contents
1. Introduction of Coca Cola Vietnam…………………………………………...3

2. The Vietnamese beverage industry

2.1. Sub-sectors…………………………………………………………………..3
2.2. The growth of international business environment…………………..4

3. Analysis of two competitors of Coca Cola Vietnam

3.1. Size and scope of organizations………………………………………….5
3.2. Vision, mission and business objectives……………………………….6
3.3. Organizational and legal structure of organizations………………….6
3.4. Types of stakeholders………………………………………………………7
3.5. Pepsico………………………………………………………………………..7
3.6. Tan Hiep Phat………………………………………………………………...8

4. The organizational structure of Coca Cola Vietnam………………………..9

5. Conclusion…………………………………………………………………………12

6. References…………………………………………………………………………12

1. Introduction of Coca Cola Vietnam

Continuing the remarkable success of Coca Cola Company since its foundation May 8th
in 1886, the Coca Cola has broadened a brand in Vietnam for 25 years. Stable
business has not been a far-fetch concept in Coca Cola. Coca Cola was first introduced
in the Vietnamese market as a joint venture with Vietnamese partners in the period from
1960 to 1998. Only when it came to October 1998, Coca Cola joint ventures received
permission to become 100% foreign-owned companies as presently. Until now, Coca

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 Cola Vietnam has been one of the leading international brands in Vietnam
headquartered in Thu Duc District, Ho Chi Minh city. With main production factories
located in Ho Chi Minh , Hanoi, and Da Nang city, it has possessed more than 4,000
employees. With the orientation to become a comprehensive, user-oriented beverage
company, the company is constantly enhancing and providing a variety of high-quality
and diverse beverages from soft drinks to tea. However, despite a big boss in the world
of beverage, the lack of services still is a shortcoming for a large company with the total
asset estimated up to 9.700 billion dong in 2019. However, an innovation of Coca Cola
Vietnam is the advent of vending machines located in numerous cities in
Vietnam.Furthermore, it invested much in community activities such as EKOCENTRE,
source water protection, and etc.
Pepsico and Coca Cola were all “ difficult competitors “ in the race to affirm reputation
with 22,7 percent and 41,3 percent, respectively in the year of 2016.

Source: Vietnamplus
Average revenue of Coca Cola Vietnam
fluctuated around 8,000 billion dong along
with average profit before tax as 800 billion
dong. Most strikingly, Coca Cola underwent a
long fall to the bottom of 300 billion dong in
2017. All in all, it is undeniable that Coca
Cola is totally deverse to stand at the top
position thanks to a myriad of remarkable
developments not only for the Vietnamese
industry but also the community at large.

2. The Vietnamese beverage industry

2.1. Sub-sectors
The private sector can be defined as the part of the economy possessed and controlled
by individuals for profit which is not related to government control. They seek profit for
their proprietors. Consider private schools as an instance. Sometimes, the private
sector can work with the government to provide a service or venture to a community.
Basically, the public sector is usually set up in the interests of the community and is
government owned and controlled. Due to the fact that organizations are set up with
objectives for the benefit of the general public other than pure profit, they are
responsible for participating in public activities. Furthermore, they have socio-political
goals alongside their primary economic goals. The prime examples are state schools or
public libraries in Vietnam.
The voluntary sector is distinct from the other two sectors since it is non-profit making
and not in the hands of governments. Individuals are not interested in making their living
from their involvement in running the organization. There are many types of charities
within the voluntary sector, including community benefit societies, co-ops, and
community-interest companies. Take Red Cross Vietnam as a salient example.

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 ➔ Based on that, Coca Cola Vietnam Company can be considered to be a private
sector which mostly pays attention to monetary return and is not owned and managed
by the government.

2.2. The growth of international business environment in Vietnamese beverage

industry
BMI report stated that Vietnam has become one of the most appealing food and
beverage markets globally which stood at 10th in Asia in 2019. The main reason is that
Vietnam is a nation with around 93 million countrymen, chiefly young population, who
prefer to dine out, and the beverage business has the greatest potential for fast growth
of any industry. As well as that, food and beverages are basic human necessities,
therefore the beverage business is " a delectable piece of cake " for foreign investors.
On the other hand, investors might encounter a myriad of dilemmas because Vietnam
has stringent government laws or high customer expectations. Besides, foreign
companies often required highly-qualified staff resulting in a shortage of human
resources. To be specific, we consider Coca Cola as a salient example of the growth of
international business in Vietnam.
Vietnam, from a nation with sole concentration on agriculture and outdated approaches
towards other industries, the investment of Coca Cola can be considered a " new wind
blowing hidden potential of Vietnam " In 1960 Coca Cola first penetrated our market but
until 1994, it started long-lasting cooperation. It began with small steps in approaching
customers by effective strategies and building a widespread distribution channel.
Moreover, Coca Cola currently follows a more environmentally-friendly process such as
greening tubes leading to factories, modern production lines saving 10 percent of
electricity and 20 percent of waste. Moreover, Coca Cola invested heavily in promoting
the brand through campaigns and projects. Undoubtedly, because international trends
have a drastic power towards global citizens, whether foreign companies penetrate the
Vietnamese market to advertise projects might generate an immediate buzz among the
public.
Regarding Coca Cola Vietnam, it is about to release global strategies namely " real
magic " with a logo " Hug " inspired by the life lessons of people, especially
adolescence that in the challenging period, and in the virtual world separating
relationships in life, they continue seeking miracles in socializing and connecting with
the outside world. It is the first new global project after the success of brand strategies "
Taste the feeling " introduced in 2016. " Taste the feeling " since its birth date has won
the hearts and good signs of the community, especially on online platforms like
Youtube, Facebook, and so on. After numerous endeavors to accelerate the
Vietnamese market, the Vietnamese beverage industry witnessed a leap quantum to
the pinnacle of the largest share with an estimated average revenue of 500.000 billion
dong as follows:

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Source: Phu Hung Securities
Strikingly, Coca Cola has risen to the top position with 41,9 percent of the total market share in
2016. According to Mr. Sanket Ray- the Board of Director of Coca Cola Vietnam, he evaluated
that Vietnam might be an attractive market in the beverage industry. With the average beverage
consumption of 23 liters per year, it can be said that the potential of the Vietnam industry will
outnumber by three times compared to other Asia countries.

3. Analysis of two competitors of Coca Cola Vietnam :

Foremost, we are going to do an autopsy on two competitors of Coca Cola Vietnam as
Tan Hiep Phat and Suntory Pepsico.
3.1. Size and scope of organisations
SIZE OF ORGANISATIONS
First of all, small businesses are often owned by a sole trader or groups of people
called partnership. They tend to hire fewer than 50 individuals. Meanwhile,
organisations which are medium-sized have a tendency to contain from 50 to 250 staff.
Their operation network is often at local or national level. By contrast, large businesses
normally hire more than 250 workers. They tend to possess a myriad of factories and
outlets located in not only one city but also more than one nation.

SCOPE OF ORGANISATIONS
Foremost, most organizations are established with the top priority goal of gaining
profit thus called "for-profit organizations". These organizations are often private sector,
meaning they are owned by people or groups of people rather than the state or
government and are referred to as companies. This does not, however, imply that these
organizations are not subject to government regulation. They are bound by the legal
and financial framework established by the appropriate governmental authorities.
Not-for-profit organizations are ones that are formed for reasons other than profit.
These organizations are distinguished from for-profit organizations by the fact that their
primary goal is to serve the public good rather than produce private profit for company
owners. Charities and social businesses are examples of organizations that come under
the not-for-profit category.

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 Non-governmental organizations, or NGOs, are non-profit organizations that function
independently of the government or the state. NGOs tend to operate without state
representation, despite the fact that they may receive government money. NGOs, like
other non-profit organizations, rely on contributions, membership dues, and grants,
among other sources of revenue.

3.2. Vision, mission, and objectives of organisations

At the outset, vision statements are documents that set out the strategic intentions of
organizations. When it comes to specifics, vision might be described as " activating the
dream."
Mission statements outline the specific role that the organization plans to fulfill within
society over the long term.
The desired organization's goals that could be reached are all detailed in objectives.
They are responsible for guiding and leading the activities of the organization towards
an identical goal. Objectives can be used for measuring performance. Many objectives
need to be qualified by SMART factors, including specific, measurable, attainable,
result-oriented , and time-bound which support the best outcome.

3.3. Organizational and legal structure of organisations

LEGAL STRUCTURE OF ORGANIZATIONS
Regarding legal structures of organizations, a sole trader is a business organization
owned by one person. Even though being a sole trader tends to be easy to start up with no
formal procedures and gives you complete control of the entire company, the owner is
personally liable for all debts of the business. Moreover, they encounter financial problems
such as a real struggle to gain finance unless ploughing back profits. Not only are they
under the pressure of performing all tasks and areas but also lacking cover in the case of
illnesses and succession in the case of death. The prime example mentioned is a sole
owner of a small store.
A partnership is a group of two or more people who have come together for the
purpose of doing business. Partnerships, like sole proprietorships, have unlimited liability,
which implies that each partner is individually accountable for the debts of the business.
Becoming a partnership does wonders for the sharing of responsibilities among partners.
Consider Vietnam Australia International School as a telling example.
A corporation or firm is a separate entity created in order to separate legal
responsibility for the affairs of a business from the personal affairs of the individuals who
own or operate it. The business debts and liabilities are those of the company, and the
owners are not personally liable for all debts of the business. Overall, corporations include
private limited companies and public limited companies.
Turning to details, a private limited company is the one whose shares are only
transferable by direct contact and purchase from shareholders like banks. It is often small-
sized and personally owned. The advantages of being a private limited company are that it
allows people to seek personal liability protection and alleviate personal risk while also
raising revenue via the sale of shares.

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 In contrast, public limited companies are freely traded on an official stock market. A myriad of
researchers have brought out to find out what perks are the ability to gain finance by virtue of
public sales of shares. Nevertheless, setting up a public limited company costs a fortune for small
companies. Consider Vingroup, TH True Milk, and so on as salient examples.

ORGANIZATIONAL STRUCTURE
In terms of geographic organizational structure, the company split into regions,
locations to share responsibility for each regional board. Geographic organizational
structure does wonders for profoundly understanding local decision-making leading to
rapidly responding the demand of residential dwellers. Moreover, applying this structure
has a lower price on establishing local factories than serving markets from one location.
Arguably, it might face duplication and loss of economics of scale as well as
inconsistency in standards.
Product-based organizational structure supports in accountability that managers are
responsible for distinct products and brands. Moreover, sales people in each product
line are meticulously trained to promote and sell products which gives more chances for
specialisation. Coordination has never been better because product division managers
go hand in hand to make and sell.
The matrix structure rejects the idea of “ one man, one boss”. It supersedes the idea of
authority based on hierarchy with the idea of influence based on expertise.
Subsequently, functional organizational structure is the most prevalent in most
corporations like Coca Cola Vietnam. In structure by function, the top position is of the
person who holds the most potential authority in the entire company.

3.4. Types of stakeholders

Internal stakeholders consist of employees, management, and etc. Employees and
management are so intimately connected with the organization’s continuation and
growth.
Moreover, shareholders, customers, suppliers, and others are called connected
stakeholders. To exemplify, shareholders or owners often pay the greatest attention to a
return on their investment. Customers want products and services. They determine
what is produced, what quality is needed, what price is charged, and what development
is needed then impose feedback, complaints, suggestions which affect a lot on the
continuation of most companies, even start-ups.
Regarding external stakeholders, the government and the community are salient
examples. They tend to have quite diverse objectives and have varying abilities to
ensure that the company meets them.
When a group of stakeholders’ demands and expectations may clash and conflict with
the interest of others, there will come a stakeholder’s conflicting objectives. To
exemplify, whether the customer necessitates a product with a low price leading to a
cheaper production process from materials to employees’ salaries fuels a heated
argument in the internal environment.

3.5. Pepsico

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 Having been integrated into the Vietnamese industry for approximately 30 years,
Pepsico has been well-known for the name " Big Boss'' globally when it comes to the
topic of beverages. Pepsico was officially introduced under the name " Suntory Pepsico
'' - coordination between American Pepsico and Japanese Suntory in 2013. Up to the
present, it is undeniable about the reputation of Pepsico with plenty of beloved drinks
such as Fanta, Pepsi, etc., as well as the top office in Saigon City. Pepsico, although it
stood at the second position of the total market share in 2016, has topped the chart for
recent years. Pepsico took the lead in beverage consumption for several years with an
enormous revenue average of 15,000 billion dong and an average profit of 1500 billion
dong in the period from 2017 to 2019. Based on that, Pepsico surpassed Coca Cola by
two times in both profit and revenue. Coca Cola Vietnam has not invested much in
consolidating its services only vending machines. Meanwhile, Pepsico enhanced both
home delivery service and vending machines which made a remarkable breakthrough,
especially in this Covid Period.

Product ● 12 pro
● 9 products including - Gas dri
- Soft Drinks : Coca Cola, Sprite, Fanta Mounta
- Energy
- Fruit juices : Nutriboost, Minute Maid
- Tea: Lip
- Bottled water : Dasani - Bottled
- Tea: Fuze Tea - Fruit jui
- Energy drinks: Aquarius - Malt dri

Despite the fact that both Coca Cola Vietnam and Pepsico have an enormous network
in both the domestic market and more than 200 nations worldwide, only Coca Cola can
reach the largest number of potential employees with more than 4,000 staff along with a
myriad of factories situated in cities like Hanoi, Ho Chi Minh, and Danang City. All of
these corporations are large profit-making companies.
The company’s vision and mission demonstrate the future career and how to enhance
and retain the leading foothold in the beverage industry while living with the company's
values. It has been on the journey to consolidate its reputation through better-than-
expected developments, which does wonders for the community, its employees, and
even partners. In the opposite picture, Coca Cola Vietnam pays the greatest attention to
their " gods ", it puts their entire center on customers, it embroiders the brands and
creates beloved drinks to bring the best experience for the general. It roars with its
mission " Refresh the world. Make a difference ". Therefore, while Pepsico sticks its
vision towards a larger scale from customers to other stakeholders like employees and
the society, Coca Cola still limits itself around customers.
The organizational structure of Pepsico has altered following the changeable market
from an originally hierarchical structure to the current functional organizational structure
which is the same as Coca Cola Vietnam. Unlike Coca Cola Vietnam, Pepsico has been
100% foreign partnership owned by 51% Suntory Holdings Limited and 49% Pepsico
Inc in detail. However, they are both public limited companies. We are going to analyze
stakeholders of Pepsico, both externally and internally. External stakeholders engaging

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 in Pepsico consist of state agencies, trade groups, corporate partners, and the general
public. Despite being foreign company as Pepsico, Coca Cola has interests in local
communities, international NGOs like World Wildlife Fund, and even environmental
groups since it pays great attention to the issue of the environment. Concerning internal
stakeholders, they have both employees, customers, management, and so on. Pepsico
is foreign partnership so it has two shareholders.

3.6. Tan Hiep Phat

Pepsi and Coca-Cola’s biggest local competitor is Tan Hiep Phat, which possessed
the green tea segment with Zero-Degree Lemon Green Tea and Dr. Thanh products.
Having undergone for more than 20 years in the Vietnamese business, Tan Hiep Phat
has become the leading beverage corporation in Vietnam and competes on a par with
international beverage corporations in Vietnam. It can be disputed that it might be a real
struggle for Tan Hiep Phat when competing for market share with two other " giants' ' in
the beverage market. However, despite its lower market share, Tan Hiep Phat's profit
margin greatly outstripped that of Pepsi and Coca-Cola. Holding an average revenue of
around 8.000 billion dong which is equal to Coca Cola, Tan Hiep Phat rose to the first
position with a point up to 3500 billion dong profit in 2019. Up to present, Tan Hiep Phat
has not been interested much in accelerating services, only selling through wholesalers
and outlets without vending machines and home delivery.

Product Coca Cola Vietnam Tan Hiep Phat

● 9 products including ● Up to the present, Tan Hiep Phat has
- Soft Drinks : Coca Cola, Sprite, released a total of 4 products such as
Number One, Dr Thanh, and Zero
Fanta
Degree Tea, Active
- Fruit juices : Nutriboost, Minute
Maid
- Bottled water : Dasani
- Tea: Fuze Tea
- Energy drinks: Aquarius

As can be seen that two“ big bosses “ hold enormous assets with the total 9 products
from Coca Cola, Sprite to Aquarius in Coca Cola Vietnam and the total 12 products
from Pepsico to All-free, they have a tendency to be interested in soft drinks.
Conversely, Tan Hiep Phat is mostly towards energy drinks and tea.
Notwithstanding being a " newcomer " compared to Coca Cola and Pepsico, Tan Hiep
Phat has become a large corporation with a fairly short history, which possesses 1000
to 5000 employees. Currently, it has sold and traded products in several Western
countries like Korea, Singapore, and so on. All of these corporations are large profit-
making companies.
Tan Hiep Phat was set up with a big mission " satisfying demand of not only nationwide
dwellers but Asian citizens at large ". The Vietnamese corporation has produced and
introduced a multitude of product lines called " at the international level " from taste to
packaging. By virtue of that, it probably enlarged further vision to become the top
beverage and food corporation within Asia. Compared to a 100% foreign company like

9
 Coca Cola Vietnam, Coca Cola is for " the world " whereas Tan Hiep Phat is solely for "
Asian ".
Like two competitors, Tan Hiep Phat has adhered to the functional organization
structure but has been a private limited company. Nevertheless, Tan Hiep Phat has
been a Vietnamese family corporation whilst Coca Cola has been 100% foreign
corporation. As the family corporation, Tan Hiep Phat has only one CEO, deputy CEO
and other departments including Finance, HR, and so on.

4. The organizational structure of Coca Cola Vietnam

The organization chart of Coca Cola Vietnam :

Source: American Chamber of Commerce

As can be seen in the diagram, Coca Cola Vietnam has applied a functional
organizational structure. Sticking to this type of organizational structure exerts both
merits and demerits on the following grounds. On the one hand, organizational structure
by function does wonders for more efficient work due to the fact that expertise is pooled
and staff at each department are professional in one area of work in which they are
skilled and trained meticulously. Moreover, splitting enormous tasks into distinct
domains supports clear lines of supervision and management. In addition to that, the
functional structure is for avoiding duplication and offering economies of scale since
each functional staff member pays the greatest attention to their field. Arguably, several
disadvantages do exist. Besides, it might be a barrier for communication between
separated specialisms with unrelated language and fortes leading to poor coordination
in the internal business environment. Undoubtedly, there will come several mistakes
and conflicts which wreak havoc on the work efficiency. Apart from that, the issue of
exchanging authorization across departments might be completely impossible.
To be specific, we will delve into the structure of Coca Cola Vietnam to profoundly
understand the interrelationship between different units within the organization. In the
pinnacle of Coca Cola Vietnam, CEO, abbreviation for chief executive officer, is the
highest-ranking executive as well as often the face of the entire organization. Most

10
importantly, CEO's principal tasks include making important business decisions,
managing a company's overall operations and resources along with connecting
stakeholders from boards of directors to employees throughout the company.
Subsequently, the Head of Legal is responsible for analyzing and keeping track of the
legal risks and ensuring all business activities are running well in accordance with laws
and regulations. The CLO might be supervised by the CEO. [Adam.,H 2021]
Moreover, work related to seeking, supervising, recruiting, and training job candidates,
as well as managing employee benefit programs such as incentives, are all in the
domain of the Human Resource Director. Under the policy of superior as CEO, the HR
department holds accountable for hiring and evaluating employees’ performance which
helps the CEO make the best decision for maintaining staff privilege. Furthermore, the
HR department is intimately linked to the Sales Director and the Procurement Director.
To illustrate, to fulfill an enormous demand of 1.9 billion products for not only Vietnam
but also around 200 nations with higher quality and an average of 23 liters per year for
only the Vietnamese, the HR department accounts for hiring and training a myriad of
workers for the process of procurement and selling.
Turning to details, being the Procurement Director, your job is developing products by
superseding scarce materials with cheaper ones. At the outset, based on the financial
health from the Chief Financial Officer, the director in the domain of procurement puts
forward strategies fitting the budget of Coca Cola. To implement procurement strategies
in such an effective way, the procurement department needs to claim research from the
Commercial Director about the customer’s sign and the extent of acceptance of new
goods. Coca Cola Vietnam is about to release a new product " Coca Cola with coffee "
after a long research period and receiving good signs from over 80 percent of the
experimenters in the American market.
As far as the Commercial Director is concerned, they usually focus on both sales and
marketing departments which does wonders for expanding the market and attaining the
business objectives. Their main responsibilities are orientating, building strategies, then
implementing commercial plans. They, as marketers, dig deeper into market research
and analysis to cultivate detailed plans for business about promotion, for instance. Then
they endeavor to meet the demand and build customer relationships after
understanding the needs and wants of the customer. This department often coordinates
with other functional areas like the Chief Information Officer and HR Director. Even
though it can be said that the Sales Director and the Commercial Director are almost
similar, several distinctions do exist. While the Sales Director is more directly
accountable for reaching sales goals and communicating face-to-face to sellers
whereas the role of the commercial director is for researching and imposing strategies
and approaches for the selling department.
The Supply chain director is in charge of Coca Cola’s supply chain and logistic
operations including purchasing, storing, and transporting ingredients and materials.
Therefore, they need to go hand in hand with the procurement department and the CFO
to estimate the reasonable quantity and desired quality of components. [Salary.com,
2021]

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 The Public Affairs and Communications manager entirely concentrates on
promulgating and maintaining a favorable image of their organization with other
"stakeholders" such as the media and non-governmental organizations.
[PRWeek Jobs, 2017]
The PAC officer will track all areas of the GM Political Action Committee's (GM PAC)
strategy and operation, as well as assisting superiors in meeting its public policy
objectives. [ Public Affairs Council, 2021]
The CFO, an abbreviation for Chief Financial Officer, plays an indispensable role in
finance within any large organization. The role of the CFO is ubiquitous in medium to
large companies. The CFO’s duties are to follow cash flow and financial planning,
assess the company's financial strengths and shortcomings, then impose corrective
actions. The most detailed documents related to the budget or financial situation of the
company are all in the hands of the CFO. Therefore, they work with other departments
to properly allocate budgets. [Rami,.A, 2021]
The CIO, an abbreviation for Chief Information Officer, is in charge of solving,
managing information systems and technologies inside the company. They are
responsible for coordinating and supporting the provision of information technology
solutions for departments in the organization such as HR department, Production
department in order to optimize business efficiency and strengthen the reputation of
products/services and the brand's position in the hearts of customers. Sometimes, the
CIO will suggest budgets needed for information systems in each department.
[HRchannel.com, 2021]

5. Conclusion
In recapitulation, numerous experts, as well as myself, admit that Coca Cola Vietnam
Company is perfectly deverse with the leading position in the race of the Vietnamese
beverage industry. Coca Cola successfully imposed effective strategies from production
to promotion in order to embroider a solid reputation. As mentioned, the cohesive
interrelationship between most functional areas in Coca Cola Vietnam plays a vital role in
assessing the work efficiency and the growth of the company. Besides, Coca Cola
should pay attention to consolidate their services such as home delivery to bring the best
experience for customers. In the near future, with the help of Coca Cola Vietnam, the
domestic beverage industry will have great potential and more opportunities to compare
with other developed countries.

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