GROUP 4
STRATEGIC HUMAN RESOURCE
MANAGEMNT OF TH TRUE MILK
Subject : Strategic Human Resource Management
Class ID: HRM404DE01 - 100
Lecture: Dao Thi Ngoc Mai
(Master of Business Administration) No. Full name Student ID 1 Ho Lan Phuong 2181294 2 Ngo Tien Thinh 2180932 3 Vo Trong Nhan 2182442 4 Nguyen Sy Hoang 22000060 5 Le Tran Khanh Duy 2180464 6 Phan Nguyen Thanh Chau 2180856
Ho Chi Minh City, June 2023 1 GROUP 4
STRATEGIC HUMAN RESOURCE
MANAGEMNT OF TH TRUE MILK
Subject : Strategic Human Resource Management
Class ID: HRM404DE01 - 100
Lecture: Dao Thi Ngoc Mai
(Master of Business Administration) No. Full name Student ID 1 Ho Lan Phuong 2181294 2 Ngo Tien Thinh 2180932 3 Vo Trong Nhan 2182442 4 Nguyen Sy Hoang 22000060 5 Le Tran Khanh Duy 2180464 6 Phan Nguyen Thanh Chau 2180856
Ho Chi Minh City, June 2023 2 ACKNOWLEGEMENT
First and foremost, we would want to express our heartfelt gratitude to our
Strategic Human Resources Management lecturer, Ms. Dao Thi Ngoc Mai. She is
always willing to assist and support us during this semester's course.
We would like to extend our heartfelt gratitude to TH True Milk’s Human
Resources Department for providing us with valuable and essential information, and
for their unwavering support throughout the entire report completion process.
Despite having some deficiencies in specialized knowledge and theoretical
articulation stemming from this course, we have successfully finished our report using
the knowledge we have acquired. Our team eagerly anticipates receiving valuable
feedback and recommendations from the instructors, which will enable us to improve
ourselves and expand our understanding. Sincerely thanks! i ABSTRACT
In the Strategic Human Resource Management course, all significant aspects
such as recruitment, training and development, compensation, and other related factors hold great importance.
TH True Milk, a national company and a source of pride for the Vietnamese
people, was chosen to implement this report, which holds special significance for us.
TH True Milk has always regarded people as the decisive factor for success. With an
ideal of people and the spirit of the Vietnamese nation, TH True Milk's human
resources strategy is adjusted and revised annually to align with global trends.
Vietnam's workforce is increasingly getting younger, with the influx of talent
and learning from other countries. Previously, national enterprises like TH True Milk
faced challenges in building effective personnel training strategies, but in the current
era of globalization, foreign talent and long-term personnel within organizations are
becoming increasingly scarce. TH True Milk has contributed to the development of
the international market and global products. TABLE OF CONTENTS
ACKNOWLEGEMENT..............................................................................................i
ABSTRACT................................................................................................................ ii
TABLE OF CONTENTS.......................................................................................... iii
TABLE OF FIGURES................................................................................................v 1.
Introduction to TH True Milk............................................................................1
1.1. Introduction...................................................................................................1
1.2. History of formation and development........................................................2
1.3. Achievement...................................................................................................5
1.4. Product........................................................................................................... 6
1.5. Vision, Mission, Core value, and Business Philosophy...............................8
1.6. Business strategy (SWOT)............................................................................9
.................................................................................................................................... 14
2. Strategic management..........................................................................................19
2.1. Model of strategy............................................................................................19
2.2. Strategic management process......................................................................19
2.3. Corporate strategy..........................................................................................23
2.4. Business unit strategy..................................................................................... 26
3. Social Responsibility & Human Resource Management....................................28
3.1. Workforce demographic changes and Diversity..........................................28
3.2. Corporate Social Responsibility....................................................................31
3.3. The link between HRM strategy and Business strategy..............................39
4. An investment perspective of HRM.....................................................................40
4.1. Theory of Investment Perspective.................................................................40
4.2. Investment Perspective of Strategic Human Resources Management in TH
True Milk............................................................................................................... 43
4.3. TH True Milk has invested in the SAP SuccessFactors solution................45
4.4. The benefits reaped from SAP SuccessFactors solution..............................46
4.5. The link between HRM strategy and Business strategy..............................47
5. Training and Development...................................................................................49
5.1. Theory of Training and Development...........................................................49
5.2. Planning & Strategizing Training.................................................................49
5.3. Integrating Training with Performance Management Systems and
Compensation in TH True Milk...........................................................................50
5.4. Training and Development activities in TH True Milk...............................51
5.5. The link between HRM strategy and Business strategy..............................55
CONCLUSION.........................................................................................................57
REFERENCES.......................................................................................................... 58 TABLE OF FIGURES
Figure 1 – TH logo........................................................................................................ 1
Figure 2 - Mr. Ngo Minh Hai, Chairman of the Board of Directors of TH Group, has
been awarded the title of “National Brand of the Year 2020”.......................................6
Figure 3 - TH True Milk products.................................................................................7
Figure 4 - TH Milk Joint Stock Company was honored at the ceremony announcing
the products that achieved the Vietnamese National Brand 2022.................................7
Figure 5 - Madam. Thai Huong - COB of TH Milk JSC.............................................10
Figure 6 - The project of raising dairy cows in Tri Ton district, An Giang province of
TH True Milk..............................................................................................................11
Figure 7 - TH True Milk price list...............................................................................14
Figure 8 - TH True Milk's dairy farm..........................................................................27
Figure 9 - The TH people, whether in the office or in the fields, in factories, all share
the joy of labor at the “Place of Happy Work”............................................................30
Figure 10 - Comrade Bùi Thanh Thu, Deputy Head of the Northwest Steering
Committee (left cover), receives the donation from the representative of TH Group..33
Figure 11 - “Dieu uoc cho em” program, sponsored by TH Group, is aimed at children
in border areas............................................................................................................. 34
Figure 12 - A customer took a photo while “check in” at TH true mart's orange corner
.................................................................................................................................... 36
Figure 13 - Encouraging customers to adopt a greener lifestyle by replacing plastic
bags with canvas fabric bags.......................................................................................38
Figure 14 - Human Resource Value Chain by Dyer and Revees.................................43
Figure 15 - TH Group has been honored with the title of “Best Workplace in Asia
2021”.......................................................................................................................... 44
Figure 16 - TH Group is a pioneering organization that has transformed digitally onto
a world-class modern management platform...............................................................45
Figure 17 – “TH – Sales Trainee Program 2021”........................................................52
Figure 18 - The management team of TH True Milk participated in a training course at
the CEO Vietnam Academy........................................................................................55
1. Introduction to TH True Milk 1.1. Introduction Figure 1 – TH logo
TH True Milk - also known as TH Milk Joint Stock Company - is a company
that belongs to the TH Group, established in 2009 in Nghe An province, Vietnam.
Entering the Vietnamese market in 2010, the company has always aimed to
produce the purest form of “fresh and clean” dairy products. Despite being present in
the market for just over 10 years, TH True Milk has shown its superiority in the
Vietnamese dairy segment, surpassing the likes of Vinamilk, Moc Chau, and even
FrieslandCampina, albeit in terms of time rather than development speed and market reputation.
According to retail market measurements as of March 2021, TH True Milk has
achieved a market share of 30% in the fresh milk segment within urban retail
channels. Furthermore, TH Milk JSC has solidified its position in the dairy industry,
evidenced by its second-place ranking in the Top 10 Trusted Food Companies of
2020, specifically within the Milk and Dairy Products category.
With a commitment to preserving the essence of nature in each product, the TH
Group has equipped itself with advanced technology and a world-class workforce. The
company also applies a high-quality management system and a comprehensive and
synchronized production process, from cattle breeding to product distribution to
consumers. All of these efforts are dedicated to providing consumers with clean, safe,
fresh, and nutritious products.
The product portfolio of the TH Group currently includes TH True Milk, a
range of pasteurized fresh milk products. The company is also developing the TH True Mart retail system.
TH Milk JSC has invested in a high-quality management system and a closed,
synchronized process that adheres to international standards. This process covers grass
cultivation, farm construction, animal feed production, veterinary management,
processing, packaging, and product distribution to consumers.
1.2. History of formation and development
 In 2009, TH Milk JSC was established as a subsidiary under the management of
TH Group. The company officially commenced operations on February 24, 2009,
with financial consulting provided by North Asia Commercial Joint Stock Bank,
also known as Bac A Bank. It was the first company of the TH Group to invest in
an industrial dairy farm project, modern milk processing technology, and a
systematic distribution network. Prior to that, the company started its construction
in 2008. The TH True Milk project was initiated in 2009 with the importation of
dairy farming technology from Israel and thousands of cattle breeds from New
Zealand. Ms. Thai Huong serves as the Chairwoman of the Board of Directors and
is also the CEO and Vice Chairwoman of Bac A Bank.
 In 2010, TH Milk welcomed its first cow, named “Moc” to Vietnam on February
27, 2010. On May 14, 2010, the ground breaking ceremony for the TH Milk
Factory took place in Nghia Dan, Nghe An, with a total investment of 1.2 billion
USD. On December 26, 2010, the official launch of TH True Milk and the
introduction of TH True Milk fresh milk products took place, reaching the hands
of consumers. During the inauguration ceremony, TH Group also donated 1.5
million glasses of milk, with a total value of 10.5 billion VND, to underprivileged
children in Nghe An province and nationwide.
 In 2011, TH True Milk inaugurated its first TH True Mart store in Hanoi on May
26, 2011. On August 30, 2011, the first TH True Mart store in Ho Chi Minh City
was also opened. On September 4, 2011, the project "For Vietnam's Stature -
United in Efforts, Nurturing Talents" was launched. On October 15, 2011, TH
Milk Joint Stock Company had the honor of receiving the “Golden Trust Supplier
2011” certificate, awarded by the Vietnam Enterprise Institute. The “Golden Trust
Supplier in Vietnam” certificate is a standard measure for evaluating the quality of
products and services of Vietnamese enterprises, aiming to promote and encourage
outstanding businesses and help consumers make informed choices. In addition to
the Vietnam Enterprise Institute, two other important organizations directly
involved in the evaluation and certification process are the True Index - Enterprise
Credit Rating Center and NQA - Certification Organization - International Quality
Management - the United Kingdom. The collaboration among these different
authorities and functions ensures comprehensiveness and objectivity in evaluating
and selecting deserving enterprises.
 In 2012, TH True Milk participated in an international dairy workshop and
launched a new range of fortified pasteurized fresh milk products on November 27, 2012.
 In 2013, the TH Fresh Milk Factory (Phase I) was inaugurated, featuring the most
advanced and largest-scale industrial dairy farm in Southeast Asia, on July 9,
2013. At the same time, TH Milk JSC announced a revenue of 3,000 billion VND.
 In 2015, TH True Milk established the largest cluster of high-tech concentrated
dairy farms in Asia on February 10, 2015. On June 25, 2015, they won the “Best
ASEAN Food” award for the TH School Milk-Topkid product line. On September
17, 2015, at the World Food Expo Moscow, TH True Milk received 3 Gold
awards, 3 Silver awards, and 1 Bronze award. In late December 2015, TH signed
an agreement with Control Union Vietnam Co., Ltd. to implement organic milk
production in Vietnam. Within just 5 years since the launch of its first product, TH
True Milk became the largest dairy cattle owner in Vietnam, with a herd of 45,000
cows on an 8,100-hectare farm area concentrated in Nghe An.
 In 2016, TH received three awards at the Gulfood Dubai International Fair on
February 21, 2016. From May to October 2016, TH commenced the construction
of the TH Dairy Farm Complex in Moscow and Kaluga provinces, Russian
Federation. On October 19, 2016, they received the Best Dairy Farm in Vietnam
award presented by Vietstock. On December 10, 2016, the TH Farm was awarded
the gold cup for organic dairy farming.
 In 2017, groundbreaking ceremonies were held for the high-tech dairy farming and
milk processing project in Ha Giang and Phu Yen provinces in November and December 2017.
 In 2018, TH True Milk inaugurated its first TH dairy farm in Moscow, Russian
Federation, on January 31, 2018. On December 20, 2018, they received the
National Brand Symbol for the third consecutive time.
 In 2018, TH True Milk witnessed a growth of nearly 22% in production (while the
overall dairy industry showed minimal growth) and a 30% growth in revenue.
 In 2019, on October 22, TH held a ceremony to announce the first batch of
Vietnamese dairy products officially permitted for mainstream export to the
Chinese market. TH became the first Vietnamese enterprise to receive a
transaction code from the General Administration of Customs of China for
exporting fresh milk products to China, marking a significant milestone for the
dairy industry in Vietnam and TH in particular. While ten years ago, some
Vietnamese businesses imported powdered milk from China for reprocessing, now
a Vietnamese enterprise is exporting fresh milk products to this potential market of
1.4 billion people. This is a remarkable “landmark” change, highlighting the
development of dairy farming and milk processing in Vietnam.
 In 2020, TH received the National Brand honor for the third time on November 25,
2020. They also ranked second in the Top 10 Trusted Food Companies in 2020,
specifically in the Dairy and Dairy Products sector (Vietnam Report).
 In 2021, TH True Milk successfully completed the importation of 1,620 high-yield
Holstein Friesian dairy cows from the United States to their cattle farm in Nghe
An, Vietnam, on January 9, 2021. TH also accomplished its plan of acquiring 4,500 cows in 2020. 1.3. Achievement
TH True Milk officially reached consumers in December 2010. Despite being
present in the market for just over 10 years, TH True Milk has achieved numerous accomplishments, including:
 Best Food Product in ASEAN, Gold, Silver, and Bronze awards for Food of the Year.
 Outstanding New Product award at World Food Moscow in 2015, 2016, 2017, and 2018 (Russia).
 Received the High-Quality Vietnamese Goods title for three consecutive years.
 Became a trusted supplier in Vietnam and established a reputable brand in 2011.
 Community Responsibility Business Award in the Philippines (2018) and Stevie Awards in the USA (2018).
 Included in the top 100 trusted and used products with the TH True Milk brand.
 At the Gulfood International Food Exhibition in Dubai in 2016, the TH Group
(owner of the TH True MILK brand) received three major awards.
 Ranked among the top 10 dairy companies in Asia in 2017.
 In 2018, the TH Group had four product groups honored as National Brands,
which are: TH true MILK, TH true MILK TOPKID formula; TH School MILK; TH true YOGURT.
 In 2018, the company received the Asia's Most Prominent Brand Award in South Korea.
 In 2019, TH True Milk was ranked among the top 10 leading food companies in Vietnam.
 In 2022, TH True Milk ranked second among the most preferred dairy brands by consumers.
Figure 2 - Mr. Ngo Minh Hai, Chairman of the Board of Directors of TH Group, has
been awarded the title of “National Brand of the Year 2020”
Additionally, TH True Milk has achieved success in building a sustainable
business model and developing sustainable agriculture. The company has
implemented modern technology and processes to create high-quality milk products
and has contributed to the development of Vietnam's dairy industry. 1.4. Product
After revolutionizing the dairy industry with the TH true MILK brand, TH
Group embarked on a revolution in plant-based milk with the introduction of the TH
true NUT brand. Currently, TH Group is confidently advancing on the path of healthy
beverages with pioneering products such as TH true WATER, pure water, and TH true
JUICE milk, fruit juice with milk.
All products of TH Group strictly adhere to national and international standards
throughout the closed production process, showcasing the pioneering role of a leading
producer of fresh and clean milk and food.
Notably, TH true MILK, as the first product, has obtained official export
licenses to the most demanding and potential market in the world, China. Currently,
TH's fresh milk products have also entered other major and challenging markets with
great potential, including the United States and the ASEAN region.
So far, TH True Milk has created a total of 13 product categories, which consist of
UHT fresh milk, oat milk beverages, formula milk, ice cream, pasteurized fresh milk,
Topkid formula products, natural yogurt, beverages food products, butter-cheese, tea bags, nut milk and pure water.
Figure 3 - TH True Milk products
Among them, there are five product groups that have been awarded the
Vietnamese National Brand 2022, including TH true MILK UHT fresh milk, TH true
ICE CREAM, TH true NUT milk, TH true WATER pure water, and TH true JUICE milk fruit juice.
Figure 4 - TH Milk Joint Stock Company was honored at the ceremony announcing
the products that achieved the Vietnamese National Brand 2022
1.5. Vision, Mission, Core value, and Business Philosophy  Vission:
TH Group aspires to become the leading contract manufacturer in Vietnam for
the clean food industry, with products sourced from natural origins. Through serious
and long-term investments, combined with the latest scientific advancements, we are
determined to become a globally recognized food brand trusted by consumers,
beloved by enthusiasts, and a source of national pride.  Mission:
With a deep appreciation for nature, TH Group strives to nurture the physical
and spiritual well-being of the Vietnamese people by providing food products that
originate from nature - clean, safe, fresh, and nourishing.  Core value:
With the goal of delivering quality in every product, TH True Milk has established five core values:  Community Health.  Completely Natural.  Environmentally Friendly.  Superior Thinking.  Harmonious Benefits.  Business Philosophy:
TH's business philosophy is clear and consistent: the quality of fresh milk must
encompass the entire closed-loop cycle, which is closely monitored and managed. The
first factor is the input of raw milk, which must be genuinely fresh and derived from a
clean farming process: clean feeding, clean living, and clean drinking.
1.6. Business strategy (SWOT)  STRENGHTS
The advantage of the starting point:
Since its inception, TH True Milk has been dedicated to systematically
investing in the organization's construction and development. This has involved
maintaining investment capital from Bac A Bank, as well as establishing and
expanding the largest farm and production facility in Southeast Asia. They have also
focused on ensuring a stable production process, starting from general livestock
farming to widespread distribution. Another key aspect of their strategy has been to
increase brand recognition on a large scale.
Despite facing intense competition in the Vietnamese dairy market from both
domestic and foreign brands like NutiFood and Vinamilk, TH True Milk has managed
to capture a significant portion of the domestic market, holding a 45% market share. It
has also become a representative exporter of dairy products to the Chinese market and ASEAN countries.
Thanks to its focus on exploiting the fresh milk product category, TH True
Milk has successfully solidified its position as one of the top 3 milk producers in
Vietnam with a scale of over 140,000 retail outlets, distributors, grocery stores, etc.
Through the SWOT analysis of TH True Milk, the corporation quickly emerged as a
"major player" in the industry, thanks to the advantage of its starting point.
The advantage of human resources:
 The leadership possesses vision, sharp thinking, and a compassionate heart:
Ms. Thai Huong currently serves as the founder and chairman of the Strategic
Board of Directors of TH True Milk. It is known that she led the introduction of the
clean fresh milk product, TH True Milk, into the market.
It was also her who brought the technology for producing clean fresh milk to
Vietnam for the first time and implemented a closed production process from green
pastures to the final product, which is a glass of pure, nutritious fresh milk.
Under the skillful leadership of Madam Thai Huong, TH True Milk quickly
gained a significant position in the hearts of Vietnamese consumers.
Figure 5 - Madam. Thai Huong - COB of TH Milk JSC
 Highly skilled and professional workforce:
The corporation has a large workforce that is well-trained and professional. The
workforce is divided into four groups to carry out different tasks and functions,
working together to drive the company's continuous development.
 Operations team: This group consists of highly skilled technical personnel who
have a learning mindset and the ability to quickly absorb new knowledge. Their
job positions include maintenance staff, technicians, and machine operators.
 Operations and management team: This group consists of individuals with the
ability to coordinate, supervise, and manage various tasks within the company,
including personnel management. They hold positions such as sales supervisors,
TH True Milk store managers, and supermarket channel supervisors.
 Human resource management team: This group consists of individuals with the
ability to search for talented candidates for the company and manage HR-related
matters. Their roles include recruitment specialists and HR development specialists.
 Production team: The corporation currently employs around 900 local workers in
all departments, with a minimum income of 3.2 million VND per worker. These
workers receive guidance from experts to meet Israeli standards in dairy cattle farming techniques. Financial advantage:
The corporation maintains a stable source of capital through its supply from BAC A Bank.
For instance, in 2020, a series of projects by TH True Milk were advised and
invested by Bac A Bank and commenced construction, including:
 The High-tech Dairy Cattle Farming and Processing Project with a total
investment capital of approximately 2.5 billion VND in Cao Bang. The project
involves the construction of a concentrated dairy farming cluster with a scale of
10,000 cows and a milk processing plant with a capacity of 49,000 tons per year.
 Not only in Cao Bang, but the project also expanded to the border area of Tri Ton,
An Giang province, with a total investment of 2.6 billion VND. Once operational,
this will be the largest closed-loop high-tech cattle farming project in the Mekong
Delta region, with a scale of over 10,000 cows and a clean fresh milk processing
plant with a capacity of 135 tons per day.
Figure 6 - The project of raising dairy cows in Tri Ton district, An Giang province of TH True Milk