Final Report of Masan MEATLife

Group 13

School of Economics and Management, Hanoi University of Science and Technology

EM3810E: Corporate Performance Management

Dr. Pham Thi Thanh Hong

June 16, 2024

Table of Contents
I. Overview of Masan MEATLife...................................................................................................3

1. Overview..................................................................................................................................3

2. PESTLE...................................................................................................................................4

3. SWOT Analysis.......................................................................................................................6

4. MOST strategy.........................................................................................................................7

5. Five Forces Analysis for Masan MEATLife...........................................................................8

6. Resource Audit of Masan MEATLife:....................................................................................9

7. Cascading Objectives of Masan MEATLife..........................................................................11

II. Mission, Vision and Objectives................................................................................................14

1. Mission..................................................................................................................................14

2. Vision.....................................................................................................................................14

3. Objectives..............................................................................................................................14

III. Customer Perspective..............................................................................................................15

1. Summary:...............................................................................................................................15

2. About Masan MEATLife’s customers:.................................................................................16

3. Customer Perspective Analytics:...........................................................................................17

IV. Masan Meatlife’s Business Process.........................................................................................22

1. I-H-F:.....................................................................................................................................23

2. Analytical Questions..............................................................................................................24
 3. Process Overview..................................................................................................................25

4. Metrics...................................................................................................................................27

V. Financial perspective of Masan Meatlife..................................................................................28

1. Overall Strategic Objectives:.................................................................................................28

2. Cascading Objectives:...........................................................................................................29

3. Strategy Drilldown for Financial Perspective:......................................................................29

4. Key KPIs in Financial Perspective........................................................................................32

VI. Learning & Growth perspective..............................................................................................34

1. Current organizational capability..........................................................................................34

2. Strategy Drilldown for Learning & Growth Perspective.......................................................35

3. KPIs:......................................................................................................................................38
 I. Overview of Masan MEATLife

1. Overview

1.1 Brief introduction.

Established in 2011, Masan MEATLife, or MML, has become a prominent force in

Vietnam's meat industry. Their core mission is to deliver high-quality, affordable, and traceable

meat products directly to Vietnamese consumers. Unlike many traditional meat producers, MML

operates under a unique "Feed-Farm-Food" business model. This vertically integrated approach

allows them to meticulously control various stages of meat production, from the very beginning.

MML starts by formulating and manufacturing their own animal feed through subsidiaries like

Mns Feed Corporation. This ensures they provide livestock with a balanced and nutritious diet,

potentially leading to healthier animals and higher quality meat. Next, MML oversees the farm

operations, raising livestock humanely and following strict quality control measures. Once the

animals reach maturity, MML utilizes state-of-the-art European processing technology to

transform the meat into safe and hygienic products. Finally, they manage the distribution

network, ensuring their MEATDeli brand reaches supermarkets and stores across Vietnam. This

"3F" farm-to-table approach, as they call it, allows MML to maintain high quality standards and

ensure the traceability of their meat products, a growing concern for Vietnamese consumers.

While MML has shown positive signs with increasing revenue, they are still working towards

profitability. As of July 2023, they operate at a net loss. However, with their innovative business

model and focus on quality and affordability, Masan MEATLife is well-positioned to become a

leading provider of meat products in Vietnam.

1.2 Establishment and development history:

- 2011: In October 2011, Công ty TNHH MTV Hoa Kim Ngân (English name: Honeysuckle

Company Limited) was incorporated.

- 2012: In November 2012, Honeysuckle Company Limited changed its name into Sam Kim

Company Limited.

- 2014: In July 2014, Sam Kim Company Limited acquired a 70% stake at ANCO. In late 2014,

Sam Kim Company Limited acquired Shika, a company with a 40% stake in Proconco.

- 2015: In January and February 2015, through a subsidiary, Sam Kim Company Limited

acquired an additional 13.06% stake in Proconco.

- 2016:

+) In March 2016: Masan Nutri-Farm was converted into a Joint Stock Company and was

renamed as Masan Nutri- Science Corporation; ANCO acquired a 14% stake in VISSAN.

+) In May 2016: Masan Nutri-Science increased its direct ownership in ANCO from 70% to

99.99%

+) In June 2016: ANCO increased its stake in VISSAN to 24.94%.

+) In June 2016: Masan Nutri-Farm (N.A) was established.

+) In November 2016: Masan Nutri-Farm (N.A) broke ground on the high-tech pig farm in Nghe

An.

- 2017: In April 2017, KKR entered into definitive agreements to invest US$150 million to

purchase a 7.5% in Masan Nutri-Science

- 2018: In February 2018, Masan Nutri-Farm held a groundbreaking ceremony of its meat

processing complex in Ha Nam province with the aim of providing fresh and chilled branded

meat products to consumers.

- 2019: MNS Farm Nghe An was granted the GLOBAL G.A.P certificate for its completion of an

internationally recognized set of farm standards dedicated to Good Agricultural Practices.

- 2020: Masan MEATLife was named in the Top 50 Vietnamese Leading Brands in 2020 by

Forbes Vietnam, MEATDeli was named in the Top 10 Most Trusted Brands in Vietnam in two

consecutive years 2019 and 2020 by consumers voting, and Proconco was named in the Top 3

Most Prestigious Animal Feed Companies in Vietnam in 2020 by Vietnam Report

- 2021: In November 2021, Masan MEATLife transferred the animal feed segment and entered

into a strategic partnership with De Heus Co., Ltd (“De Heus Vietnam”, a subsidiary of Royal

De Heus Group from the Netherlands) in organizing the supply sources of animal feed and pigs

for Masan MEATLife's chilled and processed meat processing complexes in the next 5 years.

- 2022: In July 2022,Masan MEATLife Joint Stock Company was honored to be awarded a

certificate of merit by the General Association of Agriculture and Rural Development of

Vietnam for its outstanding achievements in building and developing Vietnam's agricultural

brand (2021-2022) and certified “Vietnamese agricultural gold brand 2022” for MEATDeli fresh

meat products.

2. PESTLE

2.1 Politics:

Government Regulations: Labor Regulations: International Relations:

- Government policies - Compliance with labor - Trade policies and

supporting agricultural laws and regulations to agreements impacting
development and food ensure fair practices. import/export of meat
processing industries. products.
 - Regulatory environment - Ensuring fair wages and - Potential benefits from
with stringent food safety safe working conditions favorable trade relations
regulations and standards. for employees. with key markets.

- Political stability in - Investment in employee - Impact of international

Vietnam promoting a training programs to political stability and trade
conducive business develop skills and relations on business
environment. knowledge. operations.

2.2 Economics:

Economic Growth: Exchange Rates: Cost of Raw Materials:

- Robust economic growth in - Fluctuations in exchange - Prices of feed, livestock,

Vietnam leading to increased rates affecting the cost of and other raw materials
consumer spending power. imports and exports. impacting production costs.

- Potential for growth in - Exchange rate volatility - Inflation rates affecting

emerging markets with rising impacting profitability of operational costs and
incomes. exports. consumer prices.

- Economic conditions - Strategies to hedge - Efficient procurement

influencing consumer against adverse exchange strategies to manage costs of
spending on meat products. rate movements. raw materials.

2.3 Social:
 Changing Consumer Demographic Trends: Cultural Factors:
Preferences:

- Growing demand for - Urbanization leading to - Cultural preferences for

healthier and organic meat higher consumption of certain types of meat and
products. processed and packaged meat products.
foods.

- Increasing preference for - Population growth - Understanding and

convenience foods and ready- driving overall demand catering to local taste
to-eat products. for meat products. preferences in different
markets.

- Rising awareness about - Demographic shifts - Developing products that

food safety and quality. affecting meat align with cultural and
consumption patterns. dietary practices.

2.4 Technology:

Advancements in Food Automation and R&D and Product

Processing: Efficiency: Development:

- Adoption of modern - Use of automation to - Investment in research and

technologies to improve streamline production development for new
efficiency and product processes and reduce product offerings.
quality. costs.

- Innovations in packaging - Implementation of - Development of sustainable

and preservation techniques. technology in supply chain and eco-friendly production
 management. methods.

- Embracing digital - Leveraging technology to - Continuous innovation to

transformation in operations. enhance product meet changing consumer
traceability and safety. demands.

2.5 Legal:

Compliance with Food Intellectual Property Employment Laws:

Safety Standards: Rights:

- Adherence to national and - Protection of proprietary - Compliance with labor

international food safety technologies and product laws and regulations to
regulations. formulations. ensure fair practices.

- Regular audits and - Ensuring proper - Ensuring fair wages and

inspections to ensure management of safe working conditions for
compliance. intellectual property employees.
assets.

- Staying updated with - Legal measures to - Adherence to health and

changes in food safety laws. protect against safety standards in the
infringement. workplace.

2.6 Environment:

Sustainability Practices: Climate Change: Waste Management:

- Initiatives to reduce - Impact of climate - Efficient management of
environmental impact and change on livestock and waste and by-products from
carbon footprint. feed availability. meat processing.

- Adoption of sustainable - Measures to mitigate - Implementation of

farming and production risks associated with recycling and waste
practices. extreme weather events. reduction programs.

- Compliance with - Strategies to adapt to - Innovations in waste

environmental regulations changing climatic management to enhance
and standards. conditions. sustainability.

3. SWOT and Strategies management.

3.1. SWOT analysis

Strengths - Inherits the brand legacy and customer trust established by Masan
Group, particularly with prominent names like "Masan MEATDeli"
and "Masan MEATLove".

- Boasts a capable leadership team with a proven track record in the

consumer goods industry.

- The company benefits from the financial resources and stability of

the Masan Group, enabling strategic investments and growth
initiatives.

- controls various aspects of the meat production process, from

breeding and feed production to processing and distribution, offering
greater cost control and quality assurance.
Weaknesses - product range might be narrower compared to diversified
competitors.

- reliance on external suppliers for raw materials like pork can expose
them to price volatility and potential supply chain disruptions.

Opportunities - The rising demand for meat protein in Vietnam, driven by increasing
disposable income and urbanization, presents a significant growth
opportunity.

- Export its products to neighboring Southeast Asian countries with

similar consumer preferences.

Threats - The Vietnamese meat processing industry is witnessing increasing

competition from both domestic and foreign competitors.

- Global commodity price fluctuations, particularly for pork, can

significantly impact production costs and profitability.

- Evolving consumer trends towards healthier options and rising

concerns about animal welfare could pose challenges for the
processed meat industry.

3.2. SWOT Matrix

Strengths Weakness

Opportunities - High market penetration - Heavy reliance on the Vietnamese

and brand loyalty. market for revenue.

- Ensures quality control and - Significant costs associated with

cost management. maintaining vertical integration.

- High standards for product - Potential for increased costs in

quality and safety. production and distribution.
 Threats - Environmental concerns - Pressure to maintain competitive
and pressure to adopt pricing and high quality.
sustainable practices.
- Pressure to adopt sustainable and
- Potential regulatory changes eco-friendly practices.
in food safety and animal
welfare standards.

4. Internal Analysis - Resource Audit

a) Tangible resources

- Physical resources: The physical resources of Masan MEATLife encompass the tangible

assets that are crucial for its operations. These include:

+) Production Facilities: Masan MEATLife operates several large-scale farms, such as the Ha

Nam pig farm, which can house tens of thousands of pigs at various stages of growth.

+) Feed Mills: The company has multiple feed mills with a total annual capacity of millions of

tons of feed, ensuring a steady and reliable feed supply for their farms.

+) Retail outlets: MEATDeli, one of MML’s brands, has a presence in hundreds of retail

locations, including major supermarkets like VinMart and Co.opmart across Vietnam.

- Financial resources:.
- In 2023, Masan MEATLife achieved profit after tax allocated to the Company's Shareholders

(386) billion VND, an increase of 166% compared to 145 billion VND in 2022, with profit after
tax margin allocated to Shareholders of the Company 2022 reduced to (5.5%) from (3.0%) in

2022; Mainly due to the farm chicken segment and the reduction from purchase contract signing

fees.

b) Intangible resources

- Brand Reputation: The perception of Masan MeatLife's brand in the market, including

customer loyalty and trust.

- Intellectual Property: Any patents, trademarks, or proprietary knowledge that Masan

MeatLife owns, such as unique processing methods or recipes.

- Human Capital: The skills, experience, and knowledge of the workforce, which is crucial in a

specialized industry like meat processing.

- Customer Relationships: The strength and longevity of relationships with suppliers,

distributors, and end consumers.

- Technology and Innovation: Investments in technology that improve operational efficiency or

product quality.

5. MOST strategy

Section Details

Mission Focused on becoming a leading Vietnamese meat processing company by

providing high-quality, affordable meat products to consumers.

Objectives Expanding market share in Vietnam's processed meat industry.

- Achieving sustainable financial growth and profitability.
- Building brand recognition and customer loyalty.
 Strategy - Capitalizing on the brand reputation of Masan Group and the expertise of
its leadership team.
- Maintaining control over various stages of the production process to
ensure quality and potentially reduce costs.
- Broadening the product portfolio to cater to a wider range of consumer
preferences.
- Targeting neighboring Southeast Asian countries with similar consumer
demands.

Tactics - Investing in marketing and promotional activities to strengthen brand

awareness.
- Implementing efficient production processes to optimize costs and
product quality.
- Developing new product lines or variants to cater to evolving consumer
preferences.
- Negotiating favorable contracts with suppliers to secure raw materials at
competitive prices.
- Potentially establishing export channels and partnerships to enter new
markets.

5. Five Forces Analysis for Masan MEATLife

5.1. Threat of New Entrants (Moderate)

● High capital expenditure: Setting up a meat processing business requires significant

investment in farms, processing facilities, and cold chain infrastructure.

● Brand loyalty: Existing players like Masan MEATLife may have established brand

recognition and customer loyalty.

● Government regulations: The meat industry is subject to regulations regarding animal

welfare, food safety, and environmental impact.

5.2. Bargaining Power of Suppliers (Moderate-High)

● Limited number of large-scale suppliers: Masan MEATLife might rely on a few major

suppliers for animal feed and livestock.

 ● Switching costs: Finding new, reliable suppliers can be expensive and time-consuming.

● Masan's bargaining power: Due to their size and established relationships, Masan

MEATLife might have some leverage in negotiating prices with suppliers.

5.3. Bargaining Power of Buyers (Moderate)

● Supermarkets and distributors: These hold some power due to their buying volume

and ability to switch between suppliers.

● Price sensitivity of Vietnamese consumers: Price competitiveness is crucial in

Vietnam's meat market.

● Masan's distribution network: Owning MEATDeli stores and potentially having strong

relationships with retailers gives Masan some control over distribution channels.

5.4. Threat of Substitutes (Moderate)

● Poultry, Seafood, and Eggs: Consumers can switch to other protein sources depending

on price and preferences.

● Plant-based alternatives: While still a niche market, plant-based meat substitutes could

pose a future threat.

5.5. Competitive Rivalry (High)

● Fragmented market with many small players: Intense competition exists, especially in

traditional wet markets.

● Established competitors: Other major players like Dabaco and Viet Foods are strong

contenders.
 ● Price competition: Margins can be thin, leading to price wars.

II. Mission, Vision and Objectives

1. Mission

Masan MEATLife's mission is to supply "fresh, safe, affordable, and traceable meat

products to each and every Vietnamese consumer."

2. Vision

To be the leading company in Vietnam's meat market.

3. Objectives

a. Strategy map
b. Balanced scorecard

c. Customer successful factors:

 III. Customer Perspective

1. About Masan MEATLife’s customers:

1.1. Demographic

Msan MeatLife targets a broad customer base in Vietnam, with a focus on capturing

specific demographics. Young professionals (25-40 years old) with disposable income who value

convenience and quality are a prime target. Families with young children (25-45 years old)

seeking healthy protein options and health-conscious consumers of all ages are also seen as key

demographics. These groups typically reside in urban and suburban areas with access to Masan

MeatLife's distribution channels.

1.2. CFs

Beyond demographics, several critical factors influence customer purchase decisions.

Unsurprisingly, product quality reigns supreme. Customers prioritize fresh, high-quality meat
with clear traceability and ethical sourcing practices. While willing to pay a premium for quality,

price remains a concern, with value for money being a key consideration. Convenience is also

paramount, with easy access through physical stores, online ordering options, and fast delivery

all playing a significant role. Masan MeatLife must offer a wide variety of meat cuts, including

innovative and convenient options, to cater to diverse customer preferences.

Food safety, hygiene standards, and the nutritional value of meat products are additional

areas of concern for health-conscious consumers. Building a positive brand reputation associated

with trust, ethical practices, and sustainability is crucial for attracting and retaining customers in

today's market. Understanding Vietnamese culinary preferences and incorporating them into

product offerings can be a significant advantage. Staying updated on dietary trends and adapting

product lines accordingly is vital for long-term success. Finally, highlighting sustainability

efforts to resonate with environmentally conscious customers is an important consideration for

Masan MeatLife's future growth.

2. Customer Perspective Analytics:

This part analyzes customer perspective on Masan MEATLife's MEATDeli brand,

focusing on brand awareness and customer satisfaction. It examines website traffic and social

media follower data to assess how effectively MEATDeli is achieving its objectives.

2.1. Raise Brand Awareness

a. Direct Traffic

This metric, obtained from SimilarWeb, a web analytics tool, represents visitors who

arrive at the MEATDeli website by typing the URL directly into their browser or clicking a

saved bookmark. This indicates a level of brand awareness where customers are actively seeking

out the brand online.

 The current website traffic is 3600 visitors per month, falling short of the expected 5000

visitors. This indicates that brand awareness through website visits needs improvement.

Initiative: Optimize Website Content for Direct Traffic

Keyword Research: Conduct thorough keyword research to identify relevant terms potential

customers might use to search for MEATDeli products. Focus on keywords related to specific

product categories (e.g., "frozen sausages," "chicken ham"), brand names, and long-tail

keywords that address customer needs (e.g., "best quality hotdogs Vietnam").

Content Creation: Create high-quality website content that incorporates these keywords

naturally. This could include:

● Product Pages: Optimize product descriptions with relevant keywords and include

detailed information, high-quality images, and recipe suggestions.

 ● Blog Posts: Develop informative and engaging blog posts that address customer pain

points, showcase product uses, and offer valuable cooking tips. Optimize titles and meta

descriptions with target keywords.

b. Social Media Followers:

Tracking the number of followers on the official MEATDeli Facebook page provides a

direct measure of the brand's reach and visibility on this social media platform. An increasing

follower count suggests growing brand awareness through social media exposure.

The number of social media followers on Facebook is 306,000, exceeding the target of

280,000. This suggests a positive trend in brand awareness through social media.

Initiative: Host Social Media Contests and Giveaways for Followers

Platform Selection: Focus on platforms where your target audience spends their time. Facebook

is a good starting point, but consider Instagram or other platforms depending on your audience

demographics.
Contest Theme: Design a contest theme that aligns with your brand and resonates with your

target audience. This could involve recipe creation contests using MEATDeli products,

photography contests featuring delicious dishes, or contests with prizes related to cooking and

entertaining.

Contest Mechanics: Establish clear contest rules, entry methods (e.g., following the page,

tagging friends, sharing posts), and deadlines. Ensure clear communication regarding winner

selection and prize distribution.

Promotion: Promote the contest across your social media platforms, website, and email

marketing campaigns. Consider paid advertising to reach a wider audience and generate

excitement.

c. Conclusion

MEATDeli's social media strategy is showing positive results in terms of brand

awareness. However, website traffic suggests there's room for improvement in attracting

potential customers. By implementing a multi-channel brand awareness strategy and focusing on

website traffic analysis and customer engagement, MEATDeli can achieve its objectives of

raising brand awareness.

2.2. Enhance Customer Satisfaction

This part analyzes customer satisfaction with Masan MEATLife's MEATDeli brand. It

examines data from an online survey to assess how effectively MEATDeli is achieving its

objective of enhancing customer satisfaction.

a. Percentage Satisfied

This metric directly measures customer satisfaction with the MEATDeli brand. A higher

percentage of "Very" or "Extremely" satisfied customers indicates a positive brand perception.

 The survey indicates that 73% of customers are "Very" or "Extremely" satisfied with

MEATDeli, exceeding the target of 50%. This suggests positive customer sentiment towards the

brand.

Initiative: Personalized Recipe Recommendations

Data Integration: Establish a system to integrate customer purchase history data with a recipe

database. This could involve linking customer accounts, loyalty programs, or anonymized

purchase data.

Recipe Recommendations: Utilize customer purchase history to recommend personalized

recipes that feature the products they buy. This could be implemented on the MEATDeli website,

within email marketing campaigns, or through a mobile app.

Content Quality: Ensure recipe recommendations are high quality, with clear instructions,

enticing visuals, and variations based on dietary needs or preferences.

Personalization Level: Start with basic recommendations based on main purchased items (e.g.,

suggesting recipes using chicken breasts for customers who frequently buy them). Gradually

refine personalization by considering combinations of products and past recipe interactions.

b. Net Promoter Score (NPS)

NPS is a customer loyalty metric that gauges customer willingness to recommend a brand

to others. It is calculated by subtracting the percentage of detractors from the percentage of

promoters. A positive NPS score indicates a higher likelihood of customer referrals and brand

advocacy.

The NPS score is 38%, exceeding the target of 30%. This metric indicates that a higher

proportion of customers are promoters (likely to recommend) than detractors (unlikely to

recommend).

Initiative 2: Active Feedback Collection

Multiple Channels: Implement a multi-channel approach to gather customer feedback. This

could include:
Post-Purchase Surveys: Send brief surveys via email or SMS after customers make a purchase.

Website Feedback Forms: Include easily accessible feedback forms on the MEATDeli website.

Product Reviews: Encourage product reviews on the website and online retailers.

Social Media Engagement: Respond to comments and questions on social media platforms.

Dedicated Feedback Channels: Offer a dedicated email address or phone line for customer

feedback.

Incentivize Participation: Consider offering small incentives like discounts or loyalty points to

encourage feedback participation.

Analyze Feedback: Actively analyze all collected feedback, both positive and negative. Identify

recurring themes and categorize feedback by topic (e.g., product quality, delivery experience).

Respond and Act: Respond to customer feedback promptly, addressing concerns and thanking

them for their input. Use feedback insights to prioritize improvements and implement changes to

address customer needs.

c. Conclusion

MEATDeli is performing well in terms of customer satisfaction, exceeding targets for

both percentage satisfied and NPS. By continuously analyzing customer feedback and

implementing improvements, MEATDeli can further strengthen customer loyalty and achieve

long-term success.
 IV. Masan Meatlife’s Business Process

Figure 1.

Process Architecture

Specially supply chain management (SCM) plays the most important role of core

process because Masan Meatlife is a manufacturing enterprise which has 3F Integration (Feed -

Farm - Food). This vertical integration allows them to manage the entire supply chain, ensuring

quality control and optimizing costs throughout the process.

 SCM directly impacts operational efficiency, product quality, customer satisfaction, and

sustainability. Effective SCM ensures streamlined operations, cost savings, and high standards,

which align with the company’s strategic goals of market leadership and growth. Superior SCM

processes enhance customer experience, foster strong relationships, and provide agility in

responding to market changes. They also support sustainable practices and innovation,

contributing to the company's long-term success and competitive advantage. In essence, robust

SCM performance is fundamental to achieving Masan Meatlife’s strategic objectives and

maintaining its market position.

1. I-H-F:

1.1. Important

Robust quality control measures throughout the supply chain ensure consistent product

quality and minimize the risk of foodborne illnesses. It strengthens brand reputation and

consumer trust. Traceability systems to track products from farm to meat, enabling swift

identification and response to any potential quality issues.

 Lead to faster production cycles and quicker delivery times. It translates to fresher

products for consumers and increased responsiveness to market demands. Efficient SCM allows

Masan MeatLife to adapt to changing consumer preferences and market trends more quickly.

Deliver high-quality products at competitive prices, on time, and consistently. It

strengthens their market position and fosters customer loyalty. It scales up operations quickly

when entering new markets or introducing new product lines.

1.2. Health

Viet Nam is an unstandardized market where more than 90% of pork products on the

market are unbranded. A significant hurdle for Masan MeatLife in Vietnam is overcoming

established consumer habits. Vietnamese cultural preference for purchasing meat directly from

counters in centralized markets poses a challenge in shifting consumer behavior towards pre-

packaged meat products so it is a barrier to operate effective SCM .

Transportation infrastructure, particularly in rural areas, might not be optimal for efficient

and timely delivery of perishable goods like meat. This can lead to spoilage or delays, impacting

product quality and freshness.

1.3. Feasibility

Implementing traceability systems and data analytics can improve visibility and control

throughout the supply chain, optimizing processes and minimizing risks.

Sustainable practices like responsible waste management and minimizing environmental

impact throughout the supply chain can enhance brand reputation and long-term feasibility.

2. Analytical Questions

2.1. Descriptive

What types of transportation methods are used to move materials and products throughout
the supply chain?
 Do they have established partnerships with local Vietnamese farms, or do they source from
international suppliers?

What technology or systems are used to track inventory levels and forecast demand?

What quality control measures are in place to ensure products arrive fresh and in good
condition at customer locations?

Do they focus on minimizing waste or water usage throughout the production process?

2.2. Diagnostic

Are there excessive lead times in any stage of the supply chain, leading to delays and
impacting product freshness or responsiveness to demand?

Are there disruptions within the supply chain (e.g., supplier issues, transportation delays)
that Masan MeatLife is not effectively mitigating?

Do they lack sustainable sourcing practices that could be contributing to environmental

degradation?

Is Masan MeatLife underutilizing technology solutions that could improve efficiency,

visibility, or data-driven decision making within the SCM?

2.3. Predictive

What are the predicted growth areas within the Vietnamese meat processing industry, and
how can MasanMeatLife's SCM adapt to capture those opportunities?

How might changing consumer preferences for protein sources (e.g., plant-based
alternatives) impact demand for Masan MeatLife's products?

Considering potential disruptions like natural disasters, pandemics, or political instability,

what vulnerabilities exist within MasanMeatLife's SCM?

By staying informed about technological advancements, how can MasanMeatLife ensure

their SCM remains competitive in the long term?

2.4. Prescriptive

What strategies could Masan MeatLife implement to streamline their supply chain and
 reduce costs?

What data-driven approaches could minimize waste and optimize inventory levels?

What improvements can be made to their traceability system to enable faster identification
and response to potential quality issues?

How can they improve their SCM agility to facilitate faster product development and
quicker entry into new markets?

3. Process Overview

3.1. Product type

Masan Meatlife primarily focuses on the production and distribution of various meat

products, ensuring a diverse product portfolio that meets the needs of different market segments.

Their offerings include fresh meat products such as pork and chicken, which are carefully

processed to maintain high standards of hygiene and quality. Additionally, they produce a range

of processed meat items, including sausages, ham, and bacon, catering to consumers looking for

convenient and ready-to-eat options. Furthermore, Masan Meatlife is involved in the production

of animal feed, which is a critical component of their integrated supply chain. This allows them

to maintain control over the quality of feed given to livestock, ensuring that the end products

meet their stringent standards.

3.2. Service type

Masan Meatlife provides a comprehensive suite of services that are essential to their

supply chain management process. One of their key services is quality assurance, where they

implement rigorous quality control measures to ensure that all meat products meet high standards

of safety and hygiene. Their logistics and distribution services are designed to maintain the

freshness and safety of products during transportation and storage. They also offer robust
customer support services, addressing queries and complaints to enhance customer satisfaction.

Additionally, Masan Meatlife focuses on supply chain integration, managing the entire process

from feed production to the delivery of final products, ensuring a seamless and efficient

operation.

3.3. Channel

Masan Meatlife utilizes multiple channels to reach its diverse customer base, ensuring

wide accessibility and convenience. Their products are available through retail outlets, including

supermarkets, grocery stores, and specialized meat shops, making it easy for consumers to

purchase their favorite meat products. They also leverage online platforms, including e-

commerce websites and mobile apps, to facilitate direct consumer sales, providing the

convenience of online shopping. For commercial clients, they distribute products in bulk to

restaurants, hotels, and other food service establishments. Additionally, they employ direct sales

through company-owned outlets and butchers, ensuring that their high-quality products are

available to end consumers directly.

3.4. Customer type

Masan Meatlife serves a broad range of customers, each with unique needs and

preferences. Individual consumers form a significant part of their customer base, purchasing

meat products for personal or household consumption. Commercial clients, such as restaurants,

hotels, and catering services, rely on Masan Meatlife for large quantities of meat products that

meet their specific requirements. Distributors and retailers also constitute an important customer

segment, buying products in bulk for resale to end consumers. Furthermore, Masan Meatlife

caters to agricultural clients, including farmers and livestock producers, who purchase animal
feed products to ensure the health and growth of their livestock. This diverse customer base

reflects Masan Meatlife’s ability to cater to various market segments effectively.

4. Metrics

4.4 Metrics

Sales growth is a measure of the increase in sales revenue over a specific period. It reflects the

company's ability to expand its market, attract more customers, and increase revenue from

existing customers. Sales growth is a key indicator of business health and performance, showing

how well the company is growing its top line. A -98% sales growth means that a company's sales

have undergone a significant decline. There has been a very sharp decrease in revenue compared

to the previous period (usually a quarter or year).

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the

goods sold by a company. This includes the cost of the materials and labor directly used to create

the product.
Inventory Turnover Ratio: This metric provides a clear picture of inventory utilization. A healthy

turnover ratio indicates efficient inventory management, minimizing carrying costs and

stockouts. This minimizes carrying costs and stockouts, supporting strategic goals focused on

cost reduction, improved cash flow, or enhanced customer service by ensuring product

availability. A low Inventory Turnover Ratio is 0.198, signals significant inefficiencies and

potential issues within the company’s operations

 V. Financial perspective of Masan Meatlife

1. Overall Strategic Objectives: Masan MeatLife, as part of the Masan Group, likely aligns its

strategic objectives with broader corporate goals while focusing on specific objectives within its

meat processing sector.

1.1 Total assets

- Masan Meatlife's total assets have increased over the past two years. In 2021, the company had

total assets of 11.871 billion VND. This number increased to 13.346 billion VND in 2022 and

then decreased slightly to 12.733 billion VND in 2023.

- The total assets increased by 1.47 billion VND in 2022 (12.43% growth). However, there was a

decrease of 0.61 billion VND in 2023 (4.59% decrease).

- Masan Meatlife’s total assets as of 31 December 2023 were 12,733 billion VND, a decrease of

5% compared to the 13,346 billion VND as of 31 December 2022.

1.2 Net Revenue (Billion VND)

- Based on LFL basis and equivalent comparison basis, MML net revenue reached 6,984 billion

VND in 2023, increasing by 10.9% compared to the same period last year, with revenue

increasing in all segments except farm chicken. Based on the report, revenue increased by 46.0%

compared to the same period last year. The farm chicken segment was affected by lower feather

chicken prices compared to 2022, the impact is partly mitigated by MML's positive optimization

of chicken farm operations in the fourth quarter of 2023. In 2023, MML continued to achieve

higher sales volume and utilization rates thanks to a competitive pricing strategy, narrowing the

price gap between MEATDeli products and fresh meat in traditional markets. Additionally, with

integration into the WIN membership program, MEATDeli products at WCM stores achieved a

sharp increase in daily sales per point of sale by 33%, from 1.16 million VND in January 2023 to

1.55 million VND at the end of the year.

1.3 Gross Profit (billion VND) & Gross Profit Margin

- The gross profit of Masan MEATLife in 2023 was 1,053 billion VND, higher than the 344

billion VND in 2022. The gross profit margin in 2023 reached 15.1%, higher than the 7.2% in

2022, mainly due to the contribution of the processed meat segment and significant improvement

in the gross profit margin of branded fresh pork:

● The processed meat segment is the main contributor to gross profit in 2023

● The integrated pork segment achieves a gross profit margin of 12.7% in 2023, higher than

9.6% in 2022 thanks to a competitive pricing strategy and strategic cooperation with

WinCommerce in the "Membership Program WIN" which helps increase production,

improve factory capacity utilization and optimize costs.

● The integrated chicken segment achieves a gross profit margin of 2.5% in 2023, down

from 4.6% in 2022, mainly due to the chicken farm segment (affected by lower live bird
 prices compared to 2022), the impact is partly reduced thanks to MML actively

optimizing farm chicken operations in the fourth quarter of 2023.

1.4 Net Profit After Tax Post-MI and After-tax Profit Margin

- In 2023, Masan MEATLife achieved profit after tax allocated to the Company's Shareholders

(386) billion VND, an increase of 166% compared to 145 billion VND in 2022, with profit after

tax margin allocated to Shareholders of the Company 2022 reduced to (5.5%) from (3.0%) in

2022; Mainly due to the farm chicken segment and the reduction from purchase contract signing

fees.

1.5 Cash balance (billion VND)

- Masan MEATLife maintains its cash balance and cash equivalent (including short-term

financial investments) at 206 billion VND as of 31 December 2023 compared to 438 billion

VND as at 31 December 2022, a decrease by 53%.

2. Cascading Objectives:

Sales Growth:

● Target specific growth rates: Set annual or quarterly growth targets for overall sales,

along with specific product categories or regional markets.

 ● New product launches: Set targets for the number of new products launched within a

timeframe, aiming to expand market share or cater to emerging consumer trends.

Cost Reduction:

● Identify cost-saving opportunities: Implement initiatives to reduce procurement costs,

optimize production processes, or minimize waste generation.

● Set expense reduction targets: Set specific targets for reducing operational expenses as a

percentage of revenue.

3. Strategy Drilldown for Financial Perspective:

Table 1.

CSF of Financial Perspective

CFS Financial Customer Internal process Learning

& Growth

Strategic Network x x x x
expansion

On-time performance x x

Revenue management x
 Targeted Marketing x x x
Campaigns

Performance x x
Measurement

Optimized Scheduling x

Enhance customer x x x
experience

Table 2.

CSF of Financial Perspective

Financial
Objective Critical Success Factors Action Steps

Increase Invest in brand building campaigns, Partner with research institutions or

Revenue promotional activities, or loyalty food technology companies to
programs to attract new customers accelerate innovation.
and retain existing ones.

Improve Profit Implementing improvements in Identify areas for cost reduction, such
Margins production processes to minimize as streamlining procurement
waste and enhance productivity. processes, renegotiating contracts
with suppliers, or improving energy
efficiency.
 Enhance Cash Optimizing inventory levels to Utilize inventory forecasting tools to
Flow avoid stockouts while minimizing ensure optimal stock levels.
Management storage costs.

Maximize ROI Developing a framework to assess Prioritize investments that generate

the financial viability and potential the highest return and contribute to
return on investment for new long-term growth.
projects before allocating resources.

Strengthen Retaining a portion of profits within Conduct thorough cost-benefit

Financial the company to reinvest in growth analysis before allocating resources
Position initiatives or improve financial to new projects.
stability.

Table 3.

Factors of Financial Perspective:

Perspective Factor Impact

Marketing Brand Awareness (25%) Increases customer acquisition and retention,

driving sales growth.

Customer Satisfaction Leads to repeat purchases, positive word-of-

(30%) mouth, and customer loyalty.

Market Penetration (20%) Boosts revenue through increased sales

volume.

Competitive Positioning Differentiates from competitors, attracting

(15%) more customers.

Product Innovation (10%) Attracts new customers, retains existing ones,

and can command premium pricing.

Process Production Efficiency Reduces costs and increases output, improving

 (25%) profit margins.

Quality Control (20%) Enhances brand reputation and reduces

returns/complaints.

Supply Chain Reduces delays, lowers costs, and ensures

Management (20%) timely product availability.

Waste Reduction (15%) Cuts costs and improves environmental

sustainability.

Technology Utilization Increases productivity, reduces errors, and

(20%) lowers production costs.

Financial Revenue Growth (30%) Directly impacts the company's ability to

reinvest and grow.

Cost Management (25%) Leads to higher profit margins and more

resources for other initiatives.

Profit Margins (20%) Improves financial health and shareholder

value.

Cash Flow Management Ensures the company can meet its obligations
(15%) and invest in growth opportunities.

Investment Returns (10%) Indicates effective use of resources and

contributes to financial sustainability.

Learning & Employee Training and Increases productivity and quality.

Growth Development (20%)

Knowledge Management Leads to better decision-making and

(20%) innovation.

Employee Satisfaction Results in more productive, loyal employees

 (25%) with lower turnover rates.

Innovation Capability Drives product development and market

(20%) competitiveness.

Leadership Development Ensures strategic alignment and successful

(15%) execution of objectives.

VI. Learning & Growth perspective

1. Current organizational capability

1.1. Strategic Capability

Table 3.

Organizational Capability

Capability Description Detailed Description

Operational Capability Ensures efficient production, Production Efficiency:

Getting the most output with
quality control, and supply chain minimal waste. Techniques
like lean manufacturing and
management. data-driven scheduling can
help.
Quality Control: Rigorous
inspections and hygiene
standards ensure consistent
quality.
Supply Chain Management:
Strong supplier relationships,
optimized inventory, and
efficient logistics ensure
smooth product flow.
Dynamic Capability Enables adaptation to changing Market Responsiveness:
Adapting to changing
markets and development of new customer needs and market
trends.
offerings Innovation: Developing new
 offerings to stay competitive.
This involves R&D,
creativity, and protecting
intellectual property.
Strategic Flexibility:
Adapting long-term plans to
changing circumstances.

Ambidexterity Balances exploitation (efficiency) Exploitation & Exploration

Balance: Excelling at both
and exploration (innovation) delivering existing products
efficiently (exploitation) and
exploring new opportunities
(exploration) requires
strategic resource allocation,
cross-departmental
collaboration, and a culture
that values both efficiency
and innovation.
Supportive Organizational
Structure: A flat structure
with cross-functional teams
encourages information
sharing and collaboration.
Cultural Support: A culture
of innovation that encourages
learning, experimentation,
and risk-taking.
Learning Capability Supports continuous learning and Knowledge Management:
Capturing, storing, sharing,
improvement through knowledge and using knowledge
organization-wide.
management, employee Continuous Improvement:
A systematic approach to
development, and process identify areas for
improvement, implement
optimization. changes, and measure their
effectiveness (e.g. Six Sigma,
process reviews, employee
feedback).
Employee Training &
Development: Upskill and
reskill employees to adapt to
change.
Dynamic Capabilites

- Operational Capability:

● Production Efficiency: Employing techniques like lean manufacturing and data-driven

scheduling to maximize output with minimal waste.

● Quality Control: Implementing rigorous inspections and hygiene standards to ensure

consistent product quality.

● Supply Chain Management: Building strong supplier relationships, optimizing inventory,

and ensuring efficient logistics to maintain smooth product flow.

- Dynamic Capability:

● Market Responsiveness: Quickly adapting to changing customer needs and market trends.

● Innovation: Fostering the development of new offerings to stay competitive through

R&D and creative processes.

● Strategic Flexibility: Adjusting long-term plans based on changing circumstances to

maintain relevance and competitiveness.

- Ambidexterity:

● Exploitation and Exploration Balance: Effectively balancing the delivery of existing

products (exploitation) and exploring new opportunities (exploration) through strategic

resource allocation and cross-departmental collaboration.

● Supportive Organizational Structure: Encouraging information sharing and collaboration

through a flat structure with cross-functional teams.

● Cultural Support: Cultivating a culture that values both efficiency and innovation through

learning, experimentation, and risk-taking.

- Learning Capability:
 ● Knowledge Management: Systematically capturing, storing, sharing, and using

knowledge across the organization.

● Continuous Improvement: Identifying areas for improvement, implementing changes, and

measuring their effectiveness using methodologies like Six Sigma.

● Employee Training & Development: Upskilling and reskilling employees to adapt to

changes and contribute effectively to company goals.

2. Strategy Drilldown for Learning & Growth Perspective

Table 4.

Strategy for Learning & Growth Perspective

Core competencies CSFs Ratios

Strategic Skills, talent and knowledge Employee Turnover

competencies Employee churn rate

Intern Hiring Percentage

Training cost per

employee

Strategic Databases, information systems, networks and Efficiency Ratios

technologies technology infrastructure Knowledge Worker

Productivity Ratios

ROI

Organizational Culture, leadership, employee alignment, Employee satisfaction

climate teamwork and knowledge management index

Number of employee
 satisfaction surveys

Percent of vacation days

used

Table 5.

Perspective Key success Measures Unit of Measure description Target

factors measure value/ per
year
Learning Employee’s Staff training Number Complete training
and growth motivation courses sessions/ employees 5
Education costs Currency Education cost/ 10 million
per employee employee VND
Absence from Days Total number of days 14
work when staff is absent
Employee Rating Employee satisfaction 4
satisfaction survey
Investments in Investments in Currency Value of investments in 20 billion
technologies innovation innovation VND
Perspective Coverage of % Covered processes/ 90%
Information processes by IT overall processes
support quality Availability of % Number of working time/ 99%
information availability of
system information system
Key Metrics and Objectives

1. Employee’s Motivation:
○ Staff training courses: Completing 5 training sessions per employee per year.
○ Education costs per employee: 10 million VND per employee per year.
○ Absence from work: Target of 14 days per year.
○ Employee satisfaction: Target rating of 4.
2. Investments in Technologies:
 ○ Investments in innovation: 20 billion VND per year.
3. Information Support Quality:
○ Coverage of processes by IT: 90% of processes covered.
○ Availability of information system: 99% availability.

Table 6.

Core Ratios R A S C I
competency (Responsible) (Accountable) (Supportive) (Consulted) (Informed)
Distribution Ensures a wide Distribution Supply Chain Marketing Sales Team Regional
Network and consistent Manager Director Director Managers
(30%) product
availability
Maintains Logistics Supply Chain Customer Procuremen Sales
strong Manager Director Service t Team Team
relationships
with
distributors
and carriers
Minimizes Warehouse Distribution IT Customer
errors in Manager Manager Department Service
picking,
packing, and
shipping
Optimizes Inventory Supply Chain Purchasing Finance Sales
inventory Analyst Director Team Department Team
levels to
reduce
carrying costs
Branding & Measures Marketing CMO (Chief Creative Market Sales
Marketing customer Manager Marketing Team Research Team
(40%) recognition of Officer) Team
the brand
Tracks Marketing CMO Sales Team Finance Customer
resources used Analyst Department Service
to acquire new
customers
Measures Customer CEO Marketing Sales Team All
customer Service Team
loyalty and Manager
experience
Represents the Brand CMO Marketing Finance Sales
 intangible Strategy Team Department Team
value of the Consultant
brand
Operational Analyzes the Operations COO (Chief Finance IT Sales
Efficiency cost of Manager Operating Department Department Team
(30%) delivering Officer)
products/servic
es
Minimizes Production Operations Engineering Purchasing Inventory
waste and Manager Manager Team Team Analyst
maximizes
output
Reduces the Process Operations Relevant IT All
time it takes to Improvement Manager Department Department
complete tasks Specialist Heads
Measures HR Manager CEO All All
employee Department
satisfaction Heads
and
productivity

3. KPIs:

3.1. Market Share Growth:

This metric gauges Masan Meat's success in capturing a larger portion of the Vietnamese

meat market. L&G would want to see consistent growth in market share, indicating Masan Meat

is effectively outperforming competitors and achieving brand recognition.

3.2. Profit Margin Expansion:

While the Vietnamese meat industry offers a sizable market, profitability is crucial for

long-term business success. L&G should track Masan Meat's profit margin to assess their

efficiency in managing costs and converting sales into profit. Ideally, they'd see an improvement

in profit margins over time, indicating sustainable financial health.

3.3. New Product Penetration:

 In the dynamic food industry, innovation is key. L&G should monitor Masan Meat's

launch and success of new meat products. This could include following the reception of new

product lines, sales figures, and consumer reviews. Strong new product penetration indicates

Masan Meat's ability to adapt to evolving consumer preferences and stay ahead of the curve.