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VN UK 2011 01994 04 210304 Sustainable Business

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BUSINESS MODEL FOR SUSTAINABLE DEVELOPMENT: A
CASE STUDY OF VINAMILK

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1. Introduction
Vinamilk Vietnam’s biggest dairy corporation that specializes in both the manufacturing and
retailing of dairy-based products has been one of the most successful Vietnamese corporations
that has been able to achieve sustainable development and growth over the years. As such, this
paper aims to provide an in-depth analysis on the business model (BM) of Vinamilk. The paper is
grounded under the usage of credible secondary data, which consists of: industry reports and peer-
reviewed journals that directly relate to the topic of sustainability, sustainable development as well
as the state of operation of Vinamilk over the years. Firstly, a detailed literature review on the
concept of ‘sustainable development’ will be established beforehand. After that, thorough
evaluation of Vinamilk’s BM, using Baden-Fuller and Mangematin’s (2013) four-part typology
for BMs, will be given out throughout the rest of the paper.
2. Literature Review
With the rising attention from the public towards social issues such as sustainability and wicked
environmental problems, there have been numerous efforts from researchers and practitioners in
order to formulate an appropriate definition for the term ‘sustainable development’. One of the
most notable definitions has been that of United Nations General Assembly (1987), who has stated
that: sustainable development is the development that satisfies the needs of the present without
damaging the ability for next generations to meet their own needs in the future. The
aforementioned definition has been focusing on the environmental resource aspect of
sustainability, implying that sustainable development can only be achieved by appropriate usage
and exploitation of current resources, so that future generations could still be able to have adequate
resources to meet their own needs in the long run. United Nations General Assembly’s (1987)
definition on the term has also been expanded by Solow (1991), who has indicated that: sustainable
development can be viewed under the resource-based perspective to be the distributional equity
between generations of the present and future; both of these definitions are grounded under
ecological economics instead of competing interests over time.
However, the paper formulated by Springett (2003) has put the focus of sustainable development
more towards the ‘economic’ and ‘profitability’ side of business and entrepreneurship. In
particular, the authors have stated that: firms are said to possess a high level of sustainable
development when they have been able to formulate resource utilization and growth plans that

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BUSINESS MODEL FOR SUSTAINABLE DEVELOPMENT: A CASE STUDY OF VINAMILK 1. Introduction Vinamilk – Vietnam’s biggest dairy corporation that specializes in both the manufacturing and retailing of dairy-based products – has been one of the most successful Vietnamese corporations that has been able to achieve sustainable development and growth over the years. As such, this paper aims to provide an in-depth analysis on the business model (BM) of Vinamilk. The paper is grounded under the usage of credible secondary data, which consists of: industry reports and peerreviewed journals that directly relate to the topic of sustainability, sustainable development as well as the state of operation of Vinamilk over the years. Firstly, a detailed literature review on the concept of ‘sustainable development’ will be established beforehand. After that, thorough evaluation of Vinamilk’s BM, using Baden-Fuller and Mangematin’s (2013) four-part typology for BMs, will be given out throughout the rest of the paper. 2. Literature Review With the rising attention from the public towards social issues such as sustainability and wicked environmental problems, there have been numerous efforts from researchers and practitioners in order to formulate an appropriate definition for the term ‘sustainable development’. One of the most notable definitions has been that of United Nations General Assembly (1987), who has stated that: sustainable development is the development that satisfies th ...
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