Question 1 The world as we know today is very unpredictable Things can happen just within a flick of our fingers Such as the Covid 19 pandemic and the eminence of any kind of wars that can greatly impact business around the world From what you learned in the course, discuss any five uncontrollable factors that business could face and what are its implications Answer Everything in the world today is very unpredictable, there are many events that will happen in the future For example, the recent C.
Question The world as we know today is very unpredictable Things can happen just within a flick of our fingers Such as the Covid-19 pandemic and the eminence of any kind of wars that can greatly impact business around the world From what you learned in the course, discuss any five uncontrollable factors that business could face and what are its implications Answer: Everything in the world today is very unpredictable, there are many events that will happen in the future For example, the recent Covid-19 pandemic has greatly affected economies around the world, especially global international business activities In this case, every company must have a solution for the uncontrollable factors affecting business decisions, product marketing Leaders of businesses need to understand the factors and make the necessary, accurate and urgent decisions to minimize the problem of risk arising from uncontrollable factors Here we discuss any five uncontrollable factors that business could face and what are its implications : Political and legal factors This factor is understood that when political officials are changed, the policies they implement often affect businesses in the relevant industry Just as during the Covid-19 pandemic, risk factor policies will also change due to the inconsistent nature of politics, businesses are closely monitoring legislative bills to prepare for those potential change It is known that taxes, tariffs, employment laws, competition regulations, import restrictions, intellectual property laws are policies that may have a long-term impact on companies due to Covid-19 In 2020, the number of newly registered enterprises decreased by 2.3% compared to 2019, the number of enterprises suspending business for a definite time, stopping operations waiting for dissolution procedures and completing dissolution procedures increased by 13, 9% These figures clearly reflect the very difficult operation situation of businesses due to the Covid-19 epidemic and uncontrolled risks from political factors A number of mechanisms and policies have not yet fully covered the nature, scale, and urgency of the situation like the COVID-19 pandemic The forecasting capacity and database are still weak, while the competitiveness of Vietnamese enterprises still has many shortcomings and limitations Note the challenge: inflation risk comes from the impact of economic stimulus packages to respond to the COVID-19 pandemic of many countries; supply chain disruption and production stagnation, global recession still cannot be overcome in the near future; the risk of decline in investment capital flows at home and abroad; higher technical barriers in the context that countries open to trade after COVID-19 tend to prioritize countries and regions that control the epidemic,etc Apply consistent, synchronous and unified measures from the head office to branches to maintain both supply and demand in the market, maintain production, supply, circulation and transport of goods, and stabilize the market domestic consumer market Persist in the goal of macroeconomic stability; maintaining financial and monetary market stability Closely coordinate and flexibly operate between monetary policy, credit policy, fiscal policy and social security policy for employees in the spirit of making the most of resources and effectively The working law will change to suit life when the Covid-19 pandemic takes place, but still ensure the progress of work when implementing "work from home" Economic factors Economic factor is understood in the sense that it includes the totality of socio-economic conditions and circumstances, the system of economic and social policies, and the implementation and application of all policies in the field of economic development social sector In addition, the state of the economy plays an important role in every aspect of daily life, from the happiness of an employee to a company's ability to grow During the Covid-19 period when the economy showed signs of slowing down (In 2020, the unemployment rate of workingage workers is 2.48%, the underemployment rate is 2.51%), businesses may have to work harder to keep employees and change many of their processes to continue earning revenue In addition, the investigation results also show that the Covid-19 epidemic has affected the access to customers, followed by the impact on cash flow and employees of the business The supply chains of many businesses have been disrupted Some businesses are also affected by other problems, from reducing orders, reducing output, delaying, delaying investment progress and even canceling projects that are or will be implemented Businesses also incur additional costs to prevent the Covid-19 epidemic Many businesses face difficulties because foreign experts cannot come to Vietnam to work Many businesses said that they were interrupted, halted, or even stopped operating due to the epidemic situation and were on the verge of bankruptcy because of the sudden drop in demand in the market, leading to a decrease in revenue as well as encountering difficulties risk of debt recovery, insolvency For example, many companies turn to online sales instead of offline sales to still achieve the percentage of revenue they want to achieve during this epidemic season Or they consider discounts or promotional programs to increase sales and positively affect the company's revenue In addition, due to the impact of Covid-19, the resources for companies are also significantly limited, so companies and businesses need to strengthen and come up with a strategy to create a green path to receive the fastest source of raw materials for the company to ensure the economy for his company Technological factors In the process of increasing industrialization, the use of technology in enterprises is the imitation of technical methods in production lines Technology can be understood as a combination of technical means, skills and methods used to transform resources into a certain type of product As technology continues to advance, companies can benefit from these breakthroughs or face challenges in competing with them COVID-19 affects many business activities, including Internal Audit and Cybersecurity As businesses change their operations and organizational structure to respond to COVID-19, risks may become more complex, new risks may arise, and potentially disrupt systems current internal control This requires the Internal Audit function to demonstrate flexibility through the ability to operate remotely, to minimize the impact of COVID-19 on internal audit operations and maximize its benefits for the board of directors and departments throughout the enterprise Internal audit must always stand by the business with a willingness to support to provide services together in a safe, confidential and reliable manner When working remotely, businesses are exposed to higher risks related to cybersecurity, due to their greater reliance on technology and online interactions As more information and data flows online and less on-site support is available, IT must be ready to provide the necessary protections and support to ensure network security, data protection and operational control 4 Competitive factors Competition between companies with the same product is still happening today It is important that each company has a different way of selling and marketing, and to understand the marketing and sales of competitors as well Businesses can increase their market share and stay relevant to their customers by keeping an eye on their competitors They can identify and evaluate successes and challenges, thus learning what to incorporate into their own processes and how to prevent revenue loss They may also use the information collected to develop product change ideas, product relaunches, and new product development It can be seen that the COVID-19 epidemic has caused many challenges and difficulties for businesses, especially every start-up business However, this is also a time that opens up many opportunities for startup ideas and projects to seize opportunities and find new directions in line with market needs in order to increase the value of the company Enterprises that want to compete need to pay attention, focus on training staff, grasp technology solutions to be able to turn business ideas into reality during this period To open up the global supply chain, businesses in Vietnam and the world have invested and focused on exploiting the advantages of digital transformation Through that, many businesses have risen to affirm their brands, signed large contracts to sell goods to domestic and foreign partners, step by step participating in the global product supply chain This allows you to see what they could be doing better, and use that information within your marketing strategy And depending on your size, you may be able to influence your competition when you make the most of your signature strengths Socio-Cultural factors Social is the living place, personal values and socioeconomic status of each employee in the business affected by the Covid-19 pandemic and what social products to buy, where and why they are choose to buy the company's products Businesses consider social factors when developing and marketing products, and many businesses use current events, movements, and social issues to engage their customers Marketing can be improved by paying attention to current social trends, such as concern for the environment and how consumers are changing habits during Covid-19 Knowing what is most important to your customers will allow you to tailor your marketing strategy to better target your customers and create the right kind of products and services for them For example, a company that supports an event such as a birthday or a birthday party can earn the trust and loyalty of its customers because of their responsiveness to the specific preferences and expectations of the customers Minorities, who have more influence on the market today than in previous years, can also contribute to customer satisfaction and business growth In addition, during the Covid-19 period, they still managed to organize an event that guaranteed 5K, making customers feel quite satisfied and will continue to use their services