THUONG MAI UNIVERSITY

INSTITUTE OF INTERNATIONAL TRAINING

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FUNDAMENTALS OF MANAGEMENT
TOPIC: STUDYING THE IMPLEMENTATION OF ORGANIZING
FUNCTION: A CASE ANALYSIS OF VINAMILK

Lecturer : Nguyễn Thị Thu Hà

Group : Group 3
Course : 25106BMGM0531

Hanoi – 2025

TABLE OF CONTENT
Fundamentals of Management – Group 3

TABLE OF CONTENTS 1

CHAPTER 1: THEORETICAL FRAMEWORK OF ORGANIZING 4

1.1. Overview of organizing.......................................................................................4

1.2. Organizational Structure....................................................................................4

1.2.1. The definition of Organizational Structure.................................................4

1.2.2. Factors affecting structural choice..............................................................5

1.2.3. Organizational structure types:...................................................................6

1.3. Delegation...........................................................................................................11
1.3.1. Definition of Delegation...........................................................................11

1.3.2. Roles of Delegation...................................................................................12

1.3.3. Forms of Delegation..................................................................................12

1.3.4. Delegation Process....................................................................................13

CHAPTER 2: CASE STUDY: ANALYZING VINAMILK’S ORGANIZING

FUNCTION 15

2.1. Introduction to Vinamilk:.................................................................................15

2.2.1. Overview of Organizing Practices: General approach to structuring and
managing resources at Vinamilk.........................................................................15

2.2.2. Organizational Structure of Vinamilk:......................................................16

2.2.3. Factors Affecting Structural Choice:........................................................20

2.2.4. Delegation at Vinamilk.............................................................................21

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2.3. Evaluation of the Organizing Function at Vinamilk......................................23

CHAPTER 3: CONCLUSION 27

3.1. General conclusion.............................................................................................27

3.2. Lessons learned..................................................................................................27

REFERENCE 29

GROUP MEMBER EVALUATION 30

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CHAPTER 1: THEORETICAL FRAMEWORK OF ORGANIZING

1.1. Overview of organizing
 The definition of organizing: Organizing is the process of deploying
organizational resources to effectively achieve strategic goals. It involves the division
of labor into departments, the establishment of lines of authority, and the
implementation of mechanisms to coordinate tasks across the organization.
 The role of organizing:

 Laying the foundation for other functions: A clear organizational structure

supports planning, leading, and controlling. Without it, these functions risk
becoming inconsistent and ineffective.
 Optimizing resource use: Effective organizing ensures resources like people,
finances, technology, and time are used efficiently, reducing duplication and
waste while aligning efforts with common goals.
 Enhancing employee potential: Clear task assignments and authority lines help
employees understand their roles, boosting initiative, performance, and
opportunities for growth.
 Shaping internal culture: Organizing reflects the company’s culture through
work division, decision-making authority, and communication. This influences
motivation, loyalty, and the organization’s image.

1.2. Organizational Structure

1.2.1. The definition of organizational structure

Organization structure (organization chart) is a visual depiction of an

organization's official positions and formal lines of authority as a diagram. More new
structural designs are derived from the traditional frames to better support and facilitate
employees doing their works

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1.2.2. Factors affecting structural choice

The choice of an organization’s structure is influenced by several internal and

external factors. Selecting an appropriate organizational structure is essential for
ensuring effective operations, efficient resource management, and adaptability to
environmental changes.

1.2.2.1. Organizational Goals and Strategies

An organization’s structure should align with its overall goals and strategic
direction. For example, if a company adopts a diversification strategy, a product-based
structure may be suitable to manage each product line independently. Conversely, if
the focus is on cost efficiency and operational control, a functional structure may be
more effective in maximizing specialization and efficiency.

1.2.2.2. Functions and Responsibilities of the Organization

The nature and scope of organizational functions also influence structural

design. Organizations with highly specialized departments often adopt a functional
structure to ensure expertise and coordination within each domain. In contrast,
companies that operate multiple independent business units may benefit from a
product, geographic, or customer-based structure to better serve specific needs.

1.2.2.3. Size

The size of the organization significantly impacts structural complexity. Smaller

organizations often use a simple structure due to fewer employees and less complexity
in operations. As an organization grows, it typically requires a more formal and
complex structure to manage increased activities, staff, and hierarchical levels. This
may involve adopting a multidivisional, matrix, or hybrid structure.

1.2.2.4. Technology

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The type and sophistication of technology used within an organization can shape
its structure. Organizations that rely on mass production and standardized processes
may prefer a centralized and mechanistic structure. In contrast, those engaged in
research, development, or creative industries often need a more flexible and
decentralized structure to foster innovation and collaboration.

1.2.2.5. Environmental Uncertainty

The level of uncertainty in the external environment, such as changes in

regulations, market volatility, or competitive pressure, affects structural decisions. In a
stable environment, a rigid and centralized structure may be adequate. However, in
dynamic and uncertain environments, organizations tend to adopt more flexible,
adaptive, and decentralized structures to respond quickly to external changes.

1.2.3. Organizational structure types:

Organizational structure, a core concept in organizational theory, is defined as

the formal framework that formalizes the division, grouping, and coordination of work
activities within an organization (Robbins & Judge, 2017). The selection and
implementation of an appropriate organizational structure are pivotal for an
organization's ability to achieve its strategic objectives and optimize operational
efficiency within an increasingly complex and competitive business environment. The
subsequent sections will delve into the characteristics, advantages, and disadvantages
of each organizational structure model depicted in the images, including the simple
structure, functional structure, product-based structure, geographic structure, customer-
oriented structure, and hybrid structure.

1.2.3.1. Simple organizational structure:

The simple organizational structure is characterized by a high degree of

centralized authority at the top management level, typically the business owner or chief

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executive officer. There are relatively few intermediate management levels and a
limited number of employees. Information flow and decision-making processes are
centralized, with all critical information channeled to the top manager for processing
and decision issuance.

 Simple organizational structure model:

 Advantages: Flexibility and rapid adaptation to the environment due to short

decision-making processes. Low administrative costs due to a lean management
apparatus. Clear lines of responsibility, facilitating control and adjustment.
 Disadvantages: Limited specialization capabilities, the top manager may
become overloaded as the organizational scale increases. Lack of in-depth
specialized knowledge at lower management levels.

1.2.3.2. Functional organizational structure

The functional organizational structure is based on grouping similar

occupational specialties into separate functional departments, such as production,
marketing, finance, and human resources. Each functional department is responsible
for executing specific tasks related to its area of expertise.

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 Functional organizational structure model:

 Advantages: Enhanced efficiency through specialization and labor productivity.

Facilitates the development of in-depth knowledge and skills within each
domain. Minimizes work duplication.
 Disadvantages: Can lead to a lack of coordination between functional
departments, with departments tending to prioritize functional goals over overall
organizational objectives. Slow response to environmental changes.

1.2.3.3. Divisional Organizational Structure

Divisional structure can encompass various forms such as product divisions,

geographical divisions, or customer divisions, each tailored to a specific aspect of the
organization's operations and strategic focus. These different types allow the
organization to align its structure with its diverse offerings, markets, or clientele.

a. Product-based organizational structure

This model organizes activities based on different product lines or services.

Each product division assumes responsibility for the entire process of production and
sales for a specific product or group of products.

 Product - based organizational structure example model:

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 Advantages: Increased accountability and responsiveness to market demands

for each product line. Facilitates the development of general management skills
for divisional managers. Flexibility in expanding the product portfolio.
 Disadvantages: Potential for resource and activity duplication across product
divisions. Difficulties in coordinating between product divisions.

b. Geographical organizational structure:

This structure divides the organization based on different geographical regions.

Each geographical division is responsible for the business operations within its
designated area.

 Geographical organizational structure example model

 Advantages: Better responsiveness to the needs and characteristics of local

markets. Enhanced flexibility and adaptability at the local level.

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 Disadvantages: Potential for resource and activity duplication across regions.

Difficulties in maintaining consistency in overall organizational strategy and
policies.

c. Custumer-based organizational structure:

This model focuses on serving different customer groups with specific needs.
The organization is divided into departments based on targeted customer segments.

 Customer - based organizational structure example model:

 Advantages: Enhanced customer satisfaction through better responsiveness to

the specific needs of each segment. Strengthened customer relationships.
 Disadvantages: Potential for resource and activity duplication across customer
departments. Requires a deep understanding of each customer segment.

1.2.3.4. Hybrid organizational structure

The hybrid organizational structure combines two or more different structural

models to leverage the advantages and mitigate the disadvantages of each. The
complexity of the business environment and diverse strategies often lead organizations
to adopt hybrid structures.

 Hybrid organizational structure example model:

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 Advantages: Allows the organization to flexibly adapt to various environmental

and strategic demands. Leverages the benefits of each component structural
model.
 Disadvantages: Can be complex to manage and coordinate. Potential for
conflicts in authority and responsibility between departments. Requires high
managerial competence to ensure effective coordination.

1.3. Delegation

1.3.1. Definition of Delegation

Delegation is the process where managers transfer authority and responsibility

for decision-making to subordinates within the hierarchy.This transfer is intrinsically
linked to the broader organizational concepts of centralization and decentralization, as
well as the fundamental element of authority itself. Effective delegation facilitates
enhanced operational tempo, fosters organizational flexibility in response to dynamic
environments, and stimulates creative problem-solving at lower organizational
echelons. It is crucial to recognize that while delegation involves the sharing of

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authority, the ultimate responsibility for the delegated tasks invariably remains with the
delegating manager.

1.3.2. Roles of Delegation

The strategic implementation of delegation yields several significant benefits for both
individual managers and the organization as a whole:

 Optimization of managerial capacity: By entrusting routine and specific tasks

to subordinates, managers can liberate valuable time and cognitive resources. This
reclaimed capacity can then be directed towards higher-level strategic activities,
including meticulous planning, the formulation of overarching organizational
objectives, and the rigorous monitoring of organizational performance against
established benchmarks.
 Development of subordinate competence: Delegation serves as a crucial
mechanism for the professional development of subordinates. The assignment of
meaningful tasks and the concomitant granting of decision-making authority provide
direct experiential learning opportunities, thereby cultivating essential skills and
enhancing their capacity for future leadership roles within the organization.
 Enhancement of Employee Engagement: The conferral of autonomy and
responsibility through delegation can significantly augment subordinates' sense of
value and contribution to the organizational mission. This heightened perception of
importance fosters a stronger sense of ownership, thereby cultivating increased
commitment to organizational goals and a greater degree of active involvement in
organizational endeavors.

1.3.3. Forms of Delegation

The delegation of authority can manifest in various forms, contingent upon the
specific nature of the tasks involved and the scope of authority devolved. Drawing
upon prior visual data, key forms include:
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 Functional Delegation: The transfer of decision-making authority pertaining to

specific functional domains within the organization (e.g., operational control within
production departments).
 Strategic Delegation: The involvement of subordinate managers in the processes
of strategic analysis and decision-making, thereby broadening the base of strategic
input.
 Task-Specific Delegation: The discrete assignment of authority for the
completion of a singular, well-defined task with a finite scope.
 Ongoing Responsibility Delegation: The delegation of authority for a
continuous set of duties and accountabilities associated with a particular role or
function.

1.3.4. Delegation Process

Step 1: Define Goals/Objectives

 Clarify the Purpose: Understand why you’re delegating—e.g., to save time,

develop staff, improve team efficiency, or assess potential.

 Set Clear Outcomes: Define SMART goals (Specific, Measurable, Achievable,

Relevant, Time-bound) for what success looks like.

 Define Scope: Clearly state what is included and excluded in the task to avoid
confusion

Step 2: Choose the Right Person

 Skills & Competencies: Ensure the person has the necessary abilities and
knowledge.

 Motivation & Willingness: Choose someone enthusiastic and open to

responsibility.

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 Current Workload: Make sure the person has enough capacity to take on the
task.

 Development Potential: Consider giving tasks that challenge and help them
grow.

Step 3: Provide Authority, Time, and Resources

 Authority: Empower them to make decisions and act within clear limits.

 Time: Set realistic deadlines and milestones for completion.

 Resources: Ensure access to necessary tools, info, support, and budget.

Step 4: Monitor Progress and Support

 Regular Checkpoints: Schedule progress reviews and address issues promptly.

 Feedback: Provide constructive, timely feedback focused on results and actions.

 Support: Be available to guide and assist when needed.

 Review the Process: Evaluate not just the outcome but also how they worked.

 Accountability: Hold them responsible for completing the task effectively.

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CHAPTER 2: CASE STUDY: ANALYZING VINAMILK’S

ORGANIZING FUNCTION
2.1. Introduction to Vinamilk:
Vinamilk, officially known as Vietnam Dairy Products Joint Stock Company,
was founded in 1976 and has grown into the largest dairy company in Vietnam and a
key player in Southeast Asia. Initially a state-owned enterprise, it underwent
equitization and became publicly listed on the Ho Chi Minh Stock Exchange (VNM).
The company operates a vertically integrated model, encompassing dairy farming,
production, and distribution, which ensures high product quality and cost efficiency.
Currently, Vinamilk operates 13 manufacturing plants and 14 dairy farms across
Vietnam and Laos, employing over 9,500 people and distributing products through
230,000 retail outlets. With exports to more than 57 countries, its organizational scale
and global reach significantly influence its management structure.
Guided by the vision of becoming a world-class food and beverage brand, and a
mission centered on nutritional value and responsibility, Vinamilk continuously
emphasizes efficiency, innovation, and customer satisfaction.
Over time, the company’s organizational structure has evolved from a
centralized functional model to a decentralized hybrid structure, integrating functional,
product-based, and geographical elements. This transformation reflects Vinamilk’s
strategic response to growing operational complexity and an increasingly dynamic
external environment.
2.2. Analysis of Organizing at Vinamilk

2.2.1. Overview of Organizing Practices: General approach to structuring and

managing resources at Vinamilk.

a. Organizing Practices in the Earlier Stage (Before Equitization - Before 2003)

In its early stage, before equitization in 2003, Vinamilk operated under a highly
centralized and functionally structured management model. The company was state-
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owned, and decision-making processes were concentrated at the top level, typically at
the head office. Departments were divided based on functions (e.g., production,
finance, human resources, and distribution), with limited interaction and flexibility
across units.
Resources were allocated centrally, with minimal autonomy at the departmental
or regional levels. Management focused heavily on compliance with state directives
rather than market responsiveness. The organizing practices emphasized stability and
internal control over innovation or competitiveness.
b. Organizing Practices in the Current Stage (After Equitization - Post 2003)
Following equitization in 2003, Vinamilk underwent significant organizational
restructuring to adapt to a competitive market economy. The company adopted a more
decentralized and hybrid organizational structure, combining functional management
with elements of product-based and geographic structuring.
Regional branches and subsidiaries were granted more autonomy in decision-
making, particularly in sales and distribution. The company also implemented
advanced management systems (e.g., ERP software) to coordinate resource allocation,
streamline operations, and enhance data-driven decision-making.
Management practices became more dynamic and results-oriented. Cross-
functional collaboration increased, and leadership shifted towards achieving strategic
goals such as market expansion, innovation, and customer satisfaction.

2.2.2. Organizational Structure of Vinamilk:

2.2.2.1. Chart of Organizational Structure:

a. Earlier Stage (Before 2003): Functional Structure: Before its equitization in
2003, Vinamilk operated as a state-owned enterprise (SOE) with a centralized
Functional Structure.
 Chart:

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 Characteristic analysis:

At the apex of the hierarchy stood the General Director, a position held by Ms.
Mai Kieu Lien from 1998 to 2003, who was directly appointed by and accountable to
the Ministry of Industry (now Ministry of Industry and Trade). The General Director's
Office served as the central decision-making hub, overseeing five core functional
departments:

 Production Division: This department was responsible for meeting centrally

planned production targets, with limited autonomy in operational decisions.
Managed all manufacturing operations across state-owned facilities in Ho Chi
Minh City, Hanoi, and Danang.
 Finance and Accounting Department: Operated under strict state budgeting
protocols, handling fund allocation from government sources and financial
reporting to relevant ministries. The department's functions were primarily
compliance-oriented rather than strategic
 Sales and Distribution Unit: Focused on fulfilling state distribution quotas
through government-controlled channels, with minimal market analysis or
promotional activities.
 Quality Control Department: Implemented basic national standards, with quality
assurance processes primarily focused on production output rather than
consumer satisfaction or international benchmarks.

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 Human Resource and Administration: Managed human resources according to

state employment regulations, including the allocation of labor quotas and
administration of state-mandated benefits.
b. Organizing Practices in the Current Stage (After Equitization - Post 2003)
 Chart:

 Characteristic analysis:

1. Shareholders Meeting: This is the highest authority in the company,

consisting of all shareholders. It decides on major corporate matters such as
amending the charter, strategic directions, profit distribution, and electing the
Board of Directors.

2. Board of Directors: Responsible for overseeing and setting the strategic

direction for the company. It makes important decisions regarding investment,
finance, and appointing the CEO.

 Subcommittees under the Board:

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 Strategy Committee: Advises the Board on long-term strategy and

development plans.
 Nomination Committee: Proposes and supervises the appointment,
evaluation, and development of senior leadership.
 Remuneration Committee: Develops compensation and incentive
policies for the executive team.
 Audit Committee: Oversees internal control systems and ensures
transparency, accuracy in financial operations, and legal compliance.

3. Chief Executive Officer (CEO): The highest-ranking executive in day-to-

day management. The CEO is responsible for all business operations and reports
directly to the Board of Directors.

4. Internal Audit Director: Ensures transparency and compliance by assessing

risks, preventing fraud, and verifying operational procedures.

5. Internal Control and Risk Management Director: Builds and maintains

internal control systems and identifies and manages risks that may impact
company operations.
6. Executive Directors of Functional Departments

 Executive Director – Finance: Manages financial planning, budgeting,

reporting, and cost control.
 Executive Director – HR, Admin & PR: Oversees human resources,
internal administration, and public relations.
 Executive Director – Dairy Development: Ensures the raw milk supply,
develops raw material areas, and provides technical support to farmers and
suppliers.
 Executive Director – Marketing: Builds the brand, develops product
strategies, and executes marketing campaigns.

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 Executive Director – Research & Development: Conducts product

research, innovation, and development to meet market demands.
 Executive Director – Production: Oversees manufacturing processes,
production efficiency, and product quality at factories.
 Executive Director – Sales: Manages sales channels, sales teams, and drives
market expansion and revenue growth.
 Executive Director – Supply Chain: Coordinates logistics, warehousing,
procurement, and product distribution.

2.2.3. Factors Affecting Structural Choice:

FACTORS Early Period (Pre- Modern Period Impact on

Equitization) (Post- Organizational
Equitization) Structure

Strategic Goals Meeting production Profit growth, Shift from a

quotas, domestic international functional structure to
product supply expansion, product a hybrid structure
(state-directed diversification with clear strategic
goals) direction

Functions Basic functions: Expanded Increase in number

Production, functions: R&D, and specialization of
Accounting, Sales, IT, Supply Chain, departments → high
HR Risk Management functional
differentiation

Organizational Small state-owned Public company Requires multi-

Size company, domestic with nationwide layered structure with
focus and international specialized executive

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operations roles

Technology Manual or semi- Automated Necessitates

automated production, ERP dedicated departments
processes, low-tech systems, continuous for Technology, IT,
investment product innovation and R&D

Management Centralized, Modern corporate Transition from

Style administrative, governance, centralized to
state-command decentralized, professional and goal-
model transparent, oriented management
performance-driven

External Low competition, Highly competitive, Requires strategy,

Environment state-controlled globalized market, audit, and risk
domestic market rapidly changing management
consumer trends departments to
respond effectively

2.2.4. Delegation at Vinamilk

Vinamilk follows a multi-step delegation process designed to distribute work
efficiently while maintaining alignment with organizational goals. This process
includes the following key steps:

a. Identifying Strategic Tasks and Objectives

The delegation process begins at the top, where senior executives formulate
strategic goals such as expanding export markets, developing new products, or
improving operational efficiency. These high-level objectives are then broken down
into specific tasks.

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Example: In 2022, Vinamilk launched the “Green Farm” initiative, aimed at

promoting organic dairy products. The overarching goal involved several sub-tasks:
market research, product development, supply chain adaptation, and marketing
campaigns.

b. Assigning Responsibilities to Appropriate Departments

Once tasks are identified, they are delegated to the most relevant departments
based on expertise and function. Each department receives a clear scope of work that
aligns with its capabilities.

 The Marketing department conducts consumer trend analysis.

 R&D develops product formulations compliant with organic standards.
 Procurement sources certified organic raw materials.
 Production modifies facilities to meet sustainability criteria.

c. Transferring Authority Along with Responsibility

Vinamilk ensures that delegation is not limited to tasks alone, but also includes
the necessary authority to make decisions. Department heads are empowered to
approve budgets, select suppliers, or make adjustments to strategies within their
assigned projects.

Example: In the Green Farm project, the R&D manager had the autonomy to
collaborate with international consultants on organic certification standards without
waiting for top-down approval.

d. Monitoring Progress and Evaluating Performance

The company employs a structured performance management system using

KPIs (Key Performance Indicators) and weekly reports to track progress. Regular inter-
departmental meetings are held to ensure coordination and address emerging issues.

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KPI examples include:

 Product launch timeline adherence.

 Sales performance within six months of release.
 Customer satisfaction scores and brand awareness.

e. Feedback and Continuous Improvement

After project completion or milestone achievement, Vinamilk conducts internal

reviews to assess what worked well and what could be improved. This feedback loop
strengthens future delegation practices.

Real case: Feedback from the Green Farm campaign led to improvements in supply
chain flexibility and highlighted the value of empowering local branches in product
distribution.

2.3. Evaluation of the Organizing Function at Vinamilk

a. Effectiveness evaluation:

The organizing function within an enterprise plays a pivotal role in facilitating

the execution of strategic objectives by establishing a coherent structure, allocating
resources effectively, and ensuring coordination across various operational domains.
This evaluation critically examines the organizing function at Vinamilk, Vietnam’s
leading dairy corporation, focusing on its effectiveness, structural strengths and
weaknesses, and the associated challenges and opportunities.

 Strategic Alignment and Structural Transformation

Vinamilk’s shift from a centrally planned functional structure to a modern

hybrid model has effectively supported its broader transformation goals. The post-
equitization organizational architecture, which features distinct executive-level
departments (e.g., R&D, Supply Chain, Risk Management), enables the firm to pursue

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complex strategies such as global expansion, product innovation, and digital

transformation.

 Task Specialization and Interdepartmental Coordination

Organizational design at Vinamilk fosters specialization while facilitating

collaboration. A case in point is the “Green Farm” initiative, where the delegation of
responsibilities across departments ensured that each function contributed its domain-
specific expertise to a unified strategic project. This demonstrates the capacity of the
organizing structure to support goal-oriented, interdisciplinary work.

 Corporate Governance and Internal Controls

The formation of board-level subcommittees (e.g., Strategy, Audit, Nomination, and

Remuneration) provides a robust framework for corporate governance. These bodies
ensure that organizational decisions are strategically sound, financially transparent, and
legally compliant, contributing to shareholder trust and sustainable growth.

 Responsiveness to Market Dynamics

Vinamilk’s organizing function supports agility in responding to changing consumer

preferences and market competition. By decentralizing authority and empowering
department heads, the company can make swift, localized decisions that reflect market
realities while maintaining overall strategic coherence.

 Performance Monitoring and Feedback Integration

The implementation of KPI-driven performance systems enhances organizational focus

and accountability. Post-project evaluations and internal audits contribute to a culture
of continuous improvement, helping the company refine processes and align better
with strategic goals.

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b. Strengths and Weaknesses in Structure and Delegation

 Strengths

 Comprehensive Structural Design: The organizational model accommodates

both functional specialization and strategic alignment. Executive directors
oversee clearly defined domains, enhancing operational focus and strategic
coherence.

 Delegation with Empowerment: Responsibilities are systematically delegated

alongside corresponding authority. This empowers department heads to make
timely decisions within their purview, promoting agility and accountability.

 Governance Infrastructure: A robust governance framework, supported by

specialized board committees, ensures effective oversight and compliance,
reducing strategic and operational risks.

 Functional Differentiation and Scalability: The inclusion of advanced

functions (e.g., IT, Risk Management, R&D) positions the firm to manage
complexity and scale operations across markets.

 Weaknesses

 Structural Complexity: The increasing number of specialized units and

hierarchical layers may contribute to bureaucratic delays, especially in cross-
functional initiatives.

 Executive Dependency: The effectiveness of delegated responsibilities is

contingent upon the competence of departmental leaders. Variability in
managerial capacity may result in inconsistent outcomes.

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 Cultural Inertia: Remnants of state-owned enterprise culture—such as risk

aversion or compliance-oriented mindsets—may hinder innovation and strategic
risk-taking in certain departments.

c. Challenges and Opportunities

 Challenges

 Global Market Volatility: Expanding into international markets necessitates

adaptability to complex regulatory environments, geopolitical risks, and intense
competitive pressures.

 Technological Transformation: The ongoing adoption of digital tools,

including enterprise resource planning (ERP), data analytics, and automation,
requires continuous restructuring and capacity-building within the organization.

 Interdepartmental Synergy: While specialization enhances efficiency, the lack

of seamless integration between departments such as R&D, Marketing, and
Supply Chain may pose coordination challenges.

 Opportunities

 Decentralized Operational Models: Further empowerment of regional

branches and subsidiaries can enhance responsiveness to local market dynamics,
thereby increasing market penetration and customer satisfaction.

 Leadership Development and Succession Planning: Institutionalizing

leadership development programs can reduce dependence on key executives and
ensure continuity in organizational performance.

 Integration of ESG Principles: Embedding environmental, social, and

governance (ESG) considerations into the organizing function presents an

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opportunity to enhance brand reputation, attract ethical investors, and comply

with global sustainability standards.

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CHAPTER 3: CONCLUSION
3.1. General conclusion
The case study of Vietnam Dairy Products Joint Stock Company (Vinamilk)
highlights the crucial role of the organizing function in enhancing strategic execution
and overall organizational performance. It demonstrates that a well-aligned
organizational structure, tailored to the enterprise’s strategic objectives, serves as a
foundational pillar for sustainable growth and competitive advantage. Vinamilk’s
transition from a centralized, function-based structure to a hybrid organizational model
integrating functional, product-based, and geographic dimensions reflects a deliberate
strategic response to increasing operational complexity, market expansion, and
globalization.

Moreover, the company’s systematic delegation practices linking responsibility

with appropriate decision-making authority have fostered managerial empowerment
and organizational agility. The implementation of performance measurement systems,
notably through Key Performance Indicators (KPIs), has strengthened accountability
and promoted a culture of continuous improvement. Vinamilk’s investment in
specialized departments, such as Research & Development, Risk Management, and
Information Technology, further underscores its strategic commitment to innovation,
resilience, and long-term value creation.

3.2. Lessons learned

From the analysis of Vinamilk’s organizing practices, several key managerial lessons
can be drawn:

 Strategic-Structural Alignment: The effectiveness of organizational operations is

highly dependent on the degree to which the structure supports the firm’s strategic
priorities. A flexible and adaptive structure enables the organization to respond
proactively to dynamic market conditions.
 Delegation and Empowerment: Effective delegation is not merely about
assigning tasks but also about transferring the necessary authority and resources.
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Fundamentals of Management – Group 3

Empowering middle managers strengthens operational responsiveness and enhances

decision-making efficiency.
 Cross-Functional Collaboration: Complex initiatives, such as the “Green Farm”
project, illustrate the importance of seamless collaboration among specialized
departments. Integrated efforts are vital to achieving shared strategic goals.
 Governance and Control Systems: The establishment of specialized board-level
committees (e.g., Strategy, Audit, Remuneration) exemplifies best practices in
corporate governance. These structures ensure transparency, compliance, and sound
strategic oversight.
 Cultural Adaptation: Structural transformation must be accompanied by cultural
evolution. Vinamilk’s shift from a compliance-driven, state-owned enterprise mindset
to a performance-oriented corporate culture highlights the importance of internal
change management in ensuring the success of organizational reforms.

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Fundamentals of Management – Group 3

REFERENCE

1. Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior (17th ed.).

Pearson Education.
2. Daft, R. L. (2016). Management (12th ed.). Cengage Learning.
3. Vietnam Dairy Products Joint Stock Company (Vinamilk). (2022). Annual
Report 2022.
4. Vietnam Dairy Products Joint Stock Company (Vinamilk). (n.d.). Corporate
Governance Structure.
5. Ministry of Industry and Trade (Vietnam). (n.d.). Vinamilk Equitization Policy
Documents.
6. Tran, N. T. (2021). Corporate Structure Transformation in Vietnam: The Case
of Vinamilk. Journal of Asian Business & Management.
7. Harvard Business Review. (2019). The Delegation Dilemma.
8. Mintzberg, H. (1979). The Structuring of Organizations. Prentice-Hall.
9. Nguyễn Thị Bích Loan, & Phạm Công Đoàn. (2019). Giáo trình Quản trị học.
Nhà xuất bản Hà Nội. Trường Đại học Thương Mại.

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Fundamentals of Management – Group 3

GROUP MEMBER EVALUATION

NO MEMBERS Student ID Tasks Evaluation Signature

1 Hoàng Mai Hương 23K670018 2.2.2, 2.3,

Word
2 Nguyễn Bùi Gia 23K670020 1.1, 1.2.1
Khánh

3 Vũ Hoàng Khánh 23K670021 1.2.2,

Present
4 Nông Thị Phương Lê 23K670022

5 Nguyễn Mai Linh 23K670023 2.1, 2.2.1,

PowerPoint
6 Phạm Thị Phương 23K570024 1.2.3
Linh

7 Nguyễn Thảo Ly 23K670026 2.2.3,

Present
8 Nguyễn Tiến Mạnh 23K670049 1.3.1, 1.3.2

9 Nguyễn Đức Minh 23K670027 1.3.3, 3,

Present

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