EXECUTION AND SCALEUP
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ttps://drive.google.com/file/d/1713Hcc9fA_yM3U2B665KUEyKVPD3NUKN/view?usp=sharing CHANGE to Madufa
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meterial of planting area
A1. Mancha one liner
“Madufa is more than just a product; it’s a mission to bring health and happiness to the community. Our project involves cultivating medicinal herbs under the forest canopy in the ethnic minority regions of Northwestern Vietnam. We process these herbs into teas like La Khoi (Ardisia Sylvestris Pitard) Tea and Giao co lam (Gynostemma pentaphyllum) – Tea. These products not only help customers alleviate health issues but also promote overall well-being and happiness.”
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A2. Business Model Overview:
Madufa business model
Our economic value is created and delivered by producing and distributing high-quality, certified herbal teas that cater to the growing demand for natural health products.
Social value is generated by improving living conditions and providing stable employment for ethnic minority communities in Northwestern region of Vietnam, while also promoting sustainable forestry.
We capture value by building establishing/developing a transparent and sustainable supply chain, coupled with a marketing strategy that highlights the natural and health benefits of our products.
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A3. Growth Potential:
Madufa’s growth potential is vast and promising.
Firstly, the target market is large and expanding, with consumers increasingly seeking increasing demands in natural and safe health products.”
According to the studies of Frontiers – a wellknown peer-review and open access publisher, scientific journals[3] currently active in science, technology, and medicine, the incidence of gastroesophageal reflux disease (GERD) is increasing in Vietnam. A recent study showed that the proportion of adults in Vietnam with significant gastroesophageal reflux symptoms (tGERS) accounted for about 53.4% of 4,400 survey participants
Secondly, the scale and scope of the social and environmental issues we address are significant, from health concerns to sustainable development.
Thirdly, by targeting a niche market with unique products derived from rare medicinal herbs and traditional processing methods, we avoid fierce competition from conventional tea and pharmaceutical industries.
Finally, the window of opportunity is large and immediate. As consumer awareness of health and environmental sustainability grows, and with strong support from the government and international organizations, Madufa is poised to make a substantial impact.
Part B: Resources and Capabilities to Execute
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B1. Key Capitals:
Madufa possesses key resources and capabilities crucial for executing its business model effectively.
In terms of human capital, the structure of Madufa includes:
The CEO holds a Master’s in Finance and has extensive knowledge in traditional medicine and pharmacology, overseeing Research & Development (R&D).
The Regional Director of Plantations ensures the quality control of main raw materials and secures the best possible prices. The Production Director selects supplementary herbs and packaging suppliers, handles processing, and manages the preservation of raw materials and finished products to ensure the highest quality.
In terms of social capital, Madufa receives significant support from local authorities due to its contribution to providing livelihoods for ethnic minority communities in the northern mountainous regions. This includes supportive policies, advice, and assistance with seedlings and fertilizers to expand Madufa’s raw material areas.
For intellectual capital, the CEO of Madufa holds a Master’s in Finance and has studied traditional medicine and pharmacology, with 30 years of corporate management experience, including 8 years in the health sector.
In terms of manufactured capital, Madufa focuses on the quality of its plantations and partners with Kim Anh Tea Company for processing, ensuring consistent and high-quality products.
Regarding financial capital, the project’s equity capital from shareholders has reached 80% of the required contributions, ensuring the project’s operations. Additionally, the project is seeking further investment to expand production and meet market demand in the next growth phase.
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B2. Business Traction:
Madufa’s products are already on the market and have been well received by customers.
60% of customers have made repeat purchases, demonstrating satisfaction and trust in the product’s quality.
Our sales growth rate is strong. Although Madufa has only been selling for 6 months, our sales figures have been growing steadily by 30% each month.
As sales increase, the number of people recovering from gastric reflux also rises. Many have completely recovered, significantly improving their quality of life, becoming more optimistic, and happier.
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B3. Risk:
However, we also face major risks from competition.
Currently, the formula derived from traditional medicine combined with modern research is producing highly effective gastric reflux tea. Competitors, such as pharmaceutical companies, could replicate this formula to produce similar products, affecting customer trust.
To manage this risk, Madufa plans to apply for a patent to protect the production formula.
Additionally, Madufa is preparing financial reserves to mitigate operational risks.
Part C: ESG Performance
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C1. Overall Impacts on Society and Environment
Madufa’s business activities address not only our target social and environmental issues but also create broader positive impacts.
Global challenges like greenhouse gas emissions and global warming due to CO2 threaten many species, including the rare Khôi Nhung Tía plant. Climate change and environmental pollution pose risks of disease and ecological imbalance.
By planting under forest canopies and using organic farming methods without chemicals, Madufa helps protect the environment. Our natural processing techniques minimize energy consumption, and we use solar energy for preliminary processing of medicinal leaves, significantly reducing electricity use.
Madufa has adopted an ESG measurement framework that includes creating jobs for ethnic minority communities, alleviating poverty, empowering women, and promoting gender equality. Our medicinal tea products align with the United Nations health goals and climate change mitigation. Additionally, we have built a team to effectively manage the business.
C2. Governance and Business Ethics
Madufa ensures ethical, transparent, and accountable operations, contributing to sustainable economic development, increased investor confidence, and societal well-being.
We have implemented good governance mechanisms to ensure all strategic decisions align with our long-term vision, UN goals, and immediate business objectives. Madufa has set business strategies and profit targets from the second year of sales while pursuing long-term sustainable development goals.
Our organizational structure and partnerships with stakeholders, such as sales agents, e-commerce platforms, and cooperative alliances, ensure the most efficient use of resources and highest productivity. The finance and HR departments record, report, and measure performance, streamline processes, and manage risks such as climate change impacts on planting areas and market risks like economic downturns.
Madufa is prepared for investment and due diligence to enhance investor confidence. We have an effective strategy for communicating and measuring ESG objectives.
Part D. Learning curve
When operating a business model, we see that the key to creating value is using resources effectively. To do this, it is necessary to build strength within the team as well as relationships with military stakeholders while creating management processes as well as monitoring service processes that optimize and synchronize. There are solutions to handle risks. Thus, it is necessary to prepare capital well
To be successful, Madufa needs to ensure that resources operate synchronously in accordance with the business’s goals as well as the long-term development goals of the UN, coordinate activities appropriately between departments, and flexibly adapt. With changes in the market, continuous improvement is required: Evaluate and adjust to promptly respond to fluctuations towards sustainable development. For example: We economic electric energy by using solar energy to dry the leaves into tea materials. Electric bill reduced from around 400 000 vnd to 250 000 vdn per month.