Overview of Tan Hiep Phat Beverage Group

1, Introduction the business environment

Business environment is a sum total of all those factors, conditions, situations or
surroundings which directly affect the working of business. The process of starting up
and developing a business is not just an adventure, but also a real challenge. In order to
help entrepreneurs with this, it is essential to create a favourable business environment.
Ensuring easier access to funding, making legislation clearer and more effective
and developing an entrepreneurial culture and support networks for businesses are all
instrumental as far as the setting up and growth of businesses are concerned.
However, creating a favourable business environment does not mean simply
improving the growth potential of businesses. It also means turning Europe into a place in
which it is advantageous to invest and work.
According to Keith Davis, “ Environment of the business means the aggregate of
all conditions, events and influences that surround the affect it”
In the words of B.O. Wheeler, “ Business Environment is the total of all things
external to firms and individuals which affect their organization and operations”.
Characteristic of business environment
Business Environment consists of all those factors that have a bearing on the
business
 Environment is inseparable part of Business.
 Environment is Dynamic.
 Environment is decided by chance and not by choice.
 Environment regulates the scope of business.
 Environment has a direct and long lasting impact on business.
 Internal and External Environment.
 Environment is complex
 Environment is Multi – faceted.
 Environment and planning
2, Beverage industry and Tan Hiep Phat company
 According to Richard D. Brown and George J. Petrol (1986), the history of the
Beverages industry start from 1886, when Atlanta chemist Doe Pemberton developed a
reddish - brown syrup with a smidgen of cocaine (for medicinal purposes) to compete
with the many patent medicines and cure - all elixirs of that time. His company
recommended it for the relief of hangovers headaches, menstrual pains, and a host of
other problem. One warm summer day Pemberton took some syrup down to will is
venerable at Jacob's Drug Store in Atlanta. An ounce of the mixture was put into a glass,
which was then filled with water and ice, creating the first Coca-Cola.
In Vietnam, the beverage industry‘s more and more growth, Vietnam has been
one of the fastest growing economies in Asia, with an average GDP growth of 7.4%
during 1989 - 2008. In line with the recovery of the economy, the Food & Beverage
industry showed signs of increased activities. The mass grocery retail (MGR) sector
recorded the most activities in the industry with Japanese retailer FamilyMart opening its
first Vietnamese outlet and Metro Cash and Carry Vietnam having expansion plans. The
beverage industry saw US soft drink giant The Coca-Cola Company announce plans to
invest US$200 million in Vietnam for the next three years and Vietnamese Green Tea
with the type ready-to-drink products are more popular. Especially, in 2009, while
carbonates continue to lose favor among local consumers, other healthy alternatives such
as RTD tea, fruit/vegetable juice or Asian speciality drinks became more popular. This is
the result of increasing awareness of people about health and wellness. The trend was
evident in the increasing number of new product developments with more brands entering
the market or more variants being added to the existing product portfolio. Thus,
carbonates can secure its share of the on-trade channel thanks to the development of fast
food and full-service restaurants.
Also in 2009, the market for soft drinks in Vietnam became more competitive in
terms of the number of players entering or competing for market share. When any new
product is introduced to the market and immediately catches the attention of consumers,
other manufacturers soon follow, bringing a similar product to the market. Some sectors,
particularly RTD tea, see very high numbers of new product development. Thus, there is
also a chance of cross-market competitiveness, for example Asian specialty drinks and
RTD tea, as the ingredients are similar from consumers’ point of view. Brands both new
and old need a lot of marketing support as well as brand differentiation in order to make
them stand out from competitors.
Tan Hiep Phat beverage Group is one of the largest beverage company in
Vietnam market with the health drinks trademark herbal tea “Dr. Thanh” and some other
products, such as: Green tea O0, Fruit Tea , Winter melon tea , Bailey tea, etc. With the
oriented development is “Today surpasses yesterday but not is equal to tomorrow” and its
guideline “To fully meet every current and prospective requirement of the customer”,
Tan Hiep Phat group is try the best to become a drink’s supply group with Asian stature.
The objective of company is produce the best drinking product with various
trademarks for the consumers through the wide system of distribution covering all of
cities and province of Vietnam “To become a leading Asian group in three main business:
drinks, intant foods and plastic pakaging”
With the human recources is more than 2000 including foreign experts engineers,
employees, and workers, of which > 20 employees have been trained in their particular
fields in universities, colleges all over the country and 90% of tham have working
experience in companies, big corporations currently in operation in Vietnam, and the
strategy of "focused and distinct" Tan Hiep Phat is typical for Vietnamese brand success.