TABLE Of CONTENTS I Introduction 2 II PESTEL analysis 3 1 The effects of the macroenvironment on company activity both good and negative 3 a Political b Economics c Social d Technology e Enviroment.....................................................................................................
TABLE Of CONTENTS I Introduction……………………………………………………………… … II PESTEL analysis…………………………………………………………… The effects of the macroenvironment on company activity [both good and negative]……………………………………………………………….3 a Political…………………………………………………… b Economics…………………………………………………… c Social………………………………………………………… d Technology……………………………………………………… e Enviroment………………………………………………………… f Legal………………………………………………………………… Coca-Cola's PESTLE model is being used in Vietnam………………………….8 Coca-Cola Vietnam's IFE and EFE…………………………………………… 12 a EFE matrix………………………………… b IFE matrix……………………………………… III SWOT analysis…………………………………………………….……………… 14 Coca-Cola's SWOT model is being used in Vietnam…………………………… Coca- Cola Vietnam’s of SWOT matrix……………………………………… IV The effects that both macros and micro factors have upon business objectives……20 V Conclusion…………………………………………………………………… 21 VI References………………………………………………………………… 22 VII Slide powerpoint……………………………………………………………… 24 Pearson Education 2020 Higher Education Qualifications I INTRODUCTION Dr John Pemberton introduced Coca-Cola to the public for the first time on May 8, 1886, when it was marketed at Jacobs Pharmacy in Atlanta, Georgia We've evolved from this renowned drink into a full-service beverage company In 1990, we acquired Minute Maid, which broadened our brand and product line CocaCola officially entered the Vietnamese market in 1994, and presently has factories in Ho Chi Minh City, Da Nang, and Hanoi (Anon, 2021) Logo of Coca- Cola Coca-Cola is a well-known international corporation; they may be aware of their strengths and weaknesses, but in order to develop a suitable strategy for the Vietnam market, the Coca-Cola Company must examine environmental conditions PESTEL and SWOT analyses are used to analyze the internal and external markets In this demonstration I will use PESTLE to research the industry in which Coca-Cola Vietnam operates create insights and forecast future development possibilities in new markets I will also perform a SWOT analysis to determine the company's market position and prospective prospects for distribution expansion while reducing risks and threats Pearson Education 2020 Higher Education Qualifications II PESTEL ANALYSIS The Effects of The Macroenvironment on Company Activity [Both good and Negative] PESTEL is an acronym that stands for external factors analysis, which is useful when performing research prior to launching a new project or while conducting market research PESTEL analysis investigates the influence of macroenvironmental elements such as political, legal, economic, cultural, social, and technical issues These are the six economic elements that have a direct impact on them These are external aspects of the firm and the industry; as an objective factor, the industry must endure the effect that it brings Businesses will develop policies and business operations that are most appropriate for them based on those implications Six elements have a direct impact on the macroenvironment of businesses: a Political Pearson Education 2020 Higher Education Qualifications Political tranquillity Vietnam's political situation is stable By flexibly managing government programs such as fiscal and monetary policy Simultaneously with the economic mechanism's remodeling Aided the Vietnamese government in establishing a firm political base Fiscal policy Taxation is compulsory in Vietnam However, there are still several tax breaks available to businesses For example, under Article 19 of Circular No 78/2014/TT-BTC, as revised in Circular No 96/2015/TT-BTC, enterprises will be subject to a lower tax rate than the tax rate Ordinary income tax rates for a certain period of time or for the whole life of the investment project; tax exemption, tax reduction, and other prescribed incentives Foreign trade taxation Because of the benefits to consumers when commodities and services are free to travel across nations and regions, free international commerce is seen as the primary trend in international trade (no longer available) The Vietnamese government has practically no interference in the home market or manufacture of products (barriers and tariffs are nil), and the Vietnamese government has almost no intervention in the domestic market or production of goods (no sponsorship, incentives or discrimination) Current economic ties, such as the World Trade Organization (WTO), the European Union (EU), the Association of Southeast Asian Nations (ASEAN), and others, all value free trade Rules must be followed by all participants Optimistic - Vietnam has a stable political history - The government has a number of policies that are helpful - Commercialization on a global scale involving numerous nations and international trade organizations Confrontational Pearson Education 2020 Higher Education Qualifications - Concerning the policies of the government, Vietnam's tax policy is still relatively high - The cost of exporting and importing goods is high b Economics GDP There are still difficult changes throughout the Covid 19 era According to the General Statistics Office, the average income (TNBQ) per person per month in Vietnam in 2020 at current prices would be around 4.2 million VND, down around 1% from 2019 Attracting capital development investment from the non-state and FDI sectors is difficult Our country's GDP growth rate is just 5.64 percent, which is lower than the aim Devaluations [Inflations] In Vietnam, inflation is expected to stay constant at a low level this year, but pressures and dangers for next year are significant The 10-month average consumer price index declined by 0.2 percent in October 2021, lowering the 10-month average CPI to an increase of 1.8 percent over the same time last year, making it very clear that Vietnam's aim of controlling inflation in 2021 is nearly guaranteed Less than 4% will be reached Negative - Vietnam is a growing nation The economy is still experiencing several challenges Agriculture is still important to people - Vietnam's GDP has grown, however it remains extremely low in comparison to other nations across the world - In Vietnam, the inflation rate is mild The Vietnamese dong, on the other hand, has devalued Economic progress is being hampered as a result of this c Social Pearson Education 2020 Higher Education Qualifications The population of Vietnam is 97.75 million people There are 50.1 percent males and 49.9 percent females The primary source of labor is relatively young accounts for half of the population Positive The work force is plentiful, and it is steadily developing in terms of professional qualities Vietnamese people have maintained their culture for a long time and have successfully adapted to the cultures of other nations Negative Despite the fact that Vietnam has a large labor force, professional credentials are still low, with the majority of workers being manual laborers In comparison to current equipment and technology, adaptability is quite modest The labor is not dispersed evenly The educational system is very theoretical, making it less adaptable to practice, and as a result, software products are mainly theoretical, with little practical application d Technology The government's investment in technological research and development is advanced in Vietnam For example, by 2020, our country will have established 60 regional and international level basic and applied research institutions capable of solving important national problems in science and technology; 5,000 science and technology enterprises; and 60 hi-tech incubators and hi-tech business incubation centers At the same time, Vietnam is focused on investing in and growing the Vietnam Academy of Science and Technology and the Vietnam Academy of Social Sciences to become the country's and ASEAN's premier science and technology organizations The rate of advancement of science and technology is growing The information technology industry, in particular, is expanding at a rapid pace; the majority of Vietnam now has internet Pearson Education 2020 Higher Education Qualifications access spread throughout 63 cities There were more than 154.4 million mobile connections in the nation, for example Positive - Many new technologies are being used in everyday life - The government is likewise interested in scientific research and has made significant investments in it Negative Science and technology have advanced in Vietnam, but their application to manufacturing remains sluggish Many new technologies are used, however they not suit the demands of clients The technological system has advanced, but it is still in its infancy; raw resources are imported from other nations e Enviroment Positive - Vietnam has a tropical and subtropical climate with monsoons, sunlight, plenty of rain, and high humidity Temperate climates can be found near the Tropic of Cancer or in high mountains - The average yearly temperature ranges from 22 to 27 degrees Celsius, which is extremely pleasant Fresh climate is distinguished by two different seasons: dry and cold and hot and wet Vietnam is separated into four seasons, each with its own distinct qualities Negative - Environmental contamination is a challenging issue in Vietnam Every year, 10,000 tons of chemicals, 2.3 million tons of garbage, and million tons of industrial waste are dumped into the environment in Vietnam - Pollution of the soil, water, and air environments is getting increasingly significant f Legal Pearson Education 2020 Higher Education Qualifications The Vietnamese government has enacted a variety of laws governing businesses, including: - Business law - Competition Law - Foreign Investment Law in Vietnam - Labor Law - Environmental Protection Act - Several more significant laws and regulations Negative - Vietnamese laws have evolved throughout time - With the benefits that Vietnam's macroenvironment provides Businesses will have excellent conditions to grow, boost output, expand markets, and locate a large number of new clients - Problems: The difficulties brought by the six macroenvironmental elements in Vietnam will make it difficult to develop, increase the market in Vietnam, recruit staff, and troubleshoot the environment - With the benefits and drawbacks that the macroenvironment delivers Businesses must establish and implement proper policies in order to capitalize on the benefits provided by the macroenvironment At the same time, conquer and adapt to challenges Coca-Cola's PESTLE model is being used in Vietnam Element Positive Political The political environment is stable Negative In comparison to other nations, due to the government's various Vietnam's tax policy remains preferred measures It is advantageous extremely high As a result, Coca-Cola Pearson Education 2020 Higher Education Qualifications for Coca-Cola to be able to develop must pay a significant cost for freely in Vietnam Create and create production supplies To solve issues, several new goods, attract potential Coca-Cola should implement clients, and construct manufacturing measures such as a price policy plants in Vietnam Vietnam is a growing nation The International trade is expanding, economy is still experiencing several and Coca-Cola will work with challenges Agriculture is still additional partners to learn and create important to people This makes it goods on a larger scale difficult for Coca-Cola to extend its market share, and it is expensive to Economic As the Vietnamese economy produce Vietnam is a growing nation The grows and people's living conditions economy is still experiencing several rise, so will their requirements It is challenges advantageous for Coca-Cola Agriculture is still to important to people This makes it improve its goods and market its difficult for Coca-Cola to extend its services market share, and it is expensive to produce Abundant labor resources, as well Despite the fact that Vietnam has Social as steadily growing professional a large labor force, professional qualities Vietnamese people maintain credentials are still low, with the their long-standing culture while majority of workers being manual adapting successfully to other nations' laborers In comparison to current customs Coca-Cola can lower the cost equipment and technology, and time it takes to locate labor, hence adaptability is quite modest The labor easing the production of goods and is not dispersed evenly Coca Coal's services labor productivity suffers as a result of the time it takes to train employees Pearson Education 2020 Higher Education Qualifications The educational system is very theoretical, making it less adaptable to practice, and as a result, software products are mainly theoretical, with little practical application Coca-Cola finds it tough to use cutting-edge technologies in its manufacturing rely on high-quality outside labor Many new technologies are being Science and technology have Technology used in everyday life It is advanced in Vietnam, but their advantageous for Coca-Cola to use application to manufacturing remains cutting-edge technology in production sluggish Many new technologies are while also lowering production costs used, however they not suit the demands of clients The government is likewise The technological system has interested in scientific research and advanced, yet it is still ineffective has made significant investments in it Foreign countries provide raw Make it easier for Coca-Cola to materials explore and create new goods and services Coca Cola's production and product development were fraught with obstacles The cost of importing raw Coca-Cola is now able to interact materials is expensive, which and promote in Vietnam, as well as increases the time required for product expand to a huge market, thanks to the manufacture advancement of information technology Environment The climate is pleasant, and it is Vietnam's environment is polluted Pearson Education 2020 Higher Education Qualifications separated into four different seasons As a result, The requirements of the Vietnamese government the Vietnamese has enacted people change with the seasons 1, and environmental legislation As a result, the development and production of Coca-Cola will have to invest many new goods and services help to significantly in production Coca-competitiveness Cola's against Legal competitors A multitude of laws in Vietnam, If Coca-Cola businesses not such as those governing investment, comprehend and comply with the law, taxation, labor, and the environment, they will not take advantage of the as well as policies governing trade, opportunities provided by the legal industrial development, competition provisions, and they will not have regulation, consumer protection, and timely countermeasures, creating loss so on, contribute to a normal business in business due to climate Coca-Cola is committed to understanding of the law equality and long-term growth Coca-Cola Vietnam's IFE and EFE a EFE matrix 10 Pearson Education 2020 Higher Education Qualifications a lack of STT 10 11 12 13 14 15 16 Factors affecting Economic growth Level of inflation Cultural and social factors Political factors Legal factors Natural elements Technological factors Customer Requirements on safety, brand reputation Competitors Alternative products Customer information about the product Price Sensitivity Supplier Customer requirements for product quality Total Price column 3 3 4 3 44 Importance 0,068 0,045 0,068 0,068 0,068 0,045 0,09 0,09 0,068 0,068 0,045 0,068 0,045 0,09 0,068 PL 2 2 4 4 Critical Score 0,204 0,09 0,136 0,204 0,136 0,09 0,36 0,36 0,204 0,272 0,09 0,204 0,09 0,36 0,136 3,072 The economic growth factor refers to the Coca Cola company that has captured the majority of the market The level of inflation has little effect on Coca Cola, however, if the level of inflation increases, Coca Cola will be affected Socio-cultural factors, Coca Cola has not done well on social issues Political factors affect the company's development thanks to supportive policies, political stability of the government Legal factors only bring better efficiency for businesses Natural factors not have much influence on the development of Coca Cola The Technology factor is researched by Coca Cola Customers are the foundation that helps Coca-Cola grow Food safety and hygiene products directly affect the company's needs Competitors greatly influence the product business Substitutes have little impact on Coca Cola's production Coca Cola has done a great job in collecting customer information Coca Cola prices are still high, the price problem has not been resolved Coca-Cola has found good suppliers Coca Cola has done a great job in serving customers so points The total weighted score value of 3,072 is higher than 2.5 Therefore, Coca-Cola does not need to adjust its strategy 11 Pearson Education 2020 Higher Education Qualifications b IFE matrix ST T 10 11 12 13 14 15 16 Factors affecting Strong brand Strong global product marketing and promotion Products are available globally Healthy financial situation Brand value Capable workforce Wide range of products Debt piled up Health problems Some products have low sales Tax evasion in Vietnam Negative publicity The difference in taste Difficulty in manufacturing in Vietnam Good pictures in Vietnam Total Price column Importance PL Critical Score 3 3 3 2 46 0,065 0,086 0,065 0,086 0,086 0,065 0,043 0,065 0,086 0,065 0,065 0,065 0,043 0,043 0,086 3 2 3 3 0,195 0,258 0,26 0,258 0,172 0,13 0,129 0,195 0,344 0,065 0,195 0,13 0,129 0,129 0,344 2,933 Brand factor , Coca cola has a strong increase in product sales Coca Cola did a great job in marketing Coca-Cola strongly develops products Coca-Cola has a stable financial situation Coca Cola's brand value is known not only in Vietnam but also around the world In Vietnam, coca cola is still well trained in the workforce Coca Cola has created many kinds of products such as soft drinks, filtered water Coca-Cola has not yet solved the debt problem, reporting a lot of losses in Vietnam Coca Cola has not settled well on product prices Coca Cola has gone far and is doing a good job of addressing the void and publicizing negative behaviors Coca has done a great job in researching the taste of the product so The production in Vietnam is being overcome by Coca Cola Coca Cola's image is invested and strongly developed by Coca Cola 12 Pearson Education 2020 Higher Education Qualifications Total weighted score value of 2,933 means that Coca cola company's internal position is very good III SWOT ANALYSIS SWOT is a collection of acronyms of the initial letters of English words: Strengths, Weaknesses, Opportunities, and Threats - is a well-known concept in corporate analysis SWOT analysis (SWOT) is a key aspect in developing an enterprise's business strategy Businesses may easily perceive their goals as well as issues inside and outside the company that might favorably or adversely influence the goals established by the firm through SWOT analysis SWOT analysis is the most fundamental and useful technique for helping businesses have a comprehensive picture, not only of the business itself, but also of the elements that always impact and determine the choice to the success of the business 13 Pearson Education 2020 Higher Education Qualifications Coca-Cola's SWOT model is being used in Vietnam a Strengths of Coca- cola Vietnam Coca Cola is a famous brand - Coca Cola is known globally as a brand of non-alcoholic beverage, favored by many classes of customers Founded in 1886 in Atlanta, the company has flourished, becoming the leading carbonated beverage brand in the world - Coca cola is present in more than 200 countries and regions with the name and logo on the background Coca Cola has a large product portfolio - Coca-Cola has more than 500 brands worldwide and offers about 3900 different types of beverages And in its product portfolio, Coca Cola holds 21 billion dollar brands with many products included in the low calorie beverage category Wide distribution network throughout Vietnam 14 Pearson Education 2020 Higher Education Qualifications - Thanks to its large market share and market dominance, Coca-Cola is able to hold a high level of bargaining power over its suppliers and business partners Based on that, the company can have better deal negotiations and become more flexible in its operations Powerful marketing campaigns - Marketing and promotional campaigns to dominate the beverage market are also one of the company's top strengths With various unique marketing strategies, Coca cola has become a famous brand in almost every part of the world The name and logo of Coca cola can be recognized anywhere, alluding to the strength of the corporate brand identity - In Vietnam, too, every spring, no one remembers the yellow spring swallow wings, on the outstanding red background of Coca Cola This is a strong brand identity that Coca Cola has created for hundreds of years Product diversification - In order to grow and expand faster to keep pace with the market, Pepsi had to constantly expand its product portfolio to be more diversified Although Coca Cola's market share is wide, the level of diversification is still modest Therefore, in addition to beverages, Coca cola may consider shifting to other markets such as snacks b Weakness of Coca-Cola Vietnam Depends on the beverage market - Despite investing in a rich beverage network with many expensive brands, Coca Cola's revenue is still mainly from the non-alcoholic beverage market Unlike rival Pepsi when it tries to expand into markets such as snacks, cereals, chips, pasta and a variety of dairy products, Coca-Cola remains loyal with its beverage market - Fierce competition with Pepsi - Pepsi is Coca-Cola's biggest competitor If it wasn't for Pepsi, Coca-Cola would have clearly led the beverage market 15 Pearson Education 2020 Higher Education Qualifications c Opportunities [Opportunities] of Coca-Cola Vietnam Expanding partnership - It can be said that the partnership helps Coca cola open up a new opportunity for herself By cooperating with other brands including beverages and snacks, Coca Cola is still gradually dominating the market and expanding its market share, thereby helping Coca cola reduce competitive pressure in the market Dan's demand is increasing - Many government policies to support businesses d Challenge [Threats] of Coca-Cola Vietnam Competitive threat is very high - One of the first challenging elements of Coca cola's SWOT analysis came from the competitive threat of beverage brands such as Pepsi, RedBull energy drinks, and Monster Although Coca-Cola is leading in the beverage segment, the company is experiencing growth in both costs and business operations due to increasing competition Demand for health-friendly products - The demand for healthy products has increased in recent years These trends have generally adversely affected Coca-Cola when it is considered as one of the brands with unhealthy products, prone to obesity Coca-Cola Vietnam’s SWOT Matrix SWOT matrix in Strength Coca-Cola - Weakness Customer variety and - Distinctive flavor brand image - The expense of A well-developed conducting business in distribution network and Vietnam is prohibitively infrastructure expensive 16 Pearson Education 2020 Higher Education Qualifications - There are several - services and goods Manufacturing some unhealthy beverages available - Effective communication and marketing Opportunities SO: WO: Market Expansion S1,2,3; O1: market W2 O1,2,4 Market Vietnam has an development strategy penetration strategy abundance of human Expand some stores, or branch Increase the number of sales resources in good location At the same staff Increase advertising Commercial time, developing Coca Cola activities actions to broaden brand identity in Vietnam with Promote promotional activities the cooperation many activities to attract Growing client customers demand W1,3 O4 Product development strategy S1o3 Integrated development Consolidate and maintain the strategy traditional market Expand relationships with Create an appropriate product intermediaries and partners in a category structure, able to number of fields seek growth by compete in the market penetrating and attracting Renovating product and service intermediaries to distribute and structure consume your products S4 O1 Communication Strategy Marketing Set out marketing 17 Pearson Education 2020 Higher Education Qualifications communication plans for the company and products Develop marketing capabilities to expand markets ST WT High competition S1,4T 1,2 Competitive W1,2,3 T 1, 2, Corporate Great customer strategies: Strategy demand for health- The sum total of the enterprise's Propose business model policies friendly products capabilities, strengths and for enterprises Set the goals, Impact of Covid weaknesses when compared vision and strategy of the with direct competitors in the business Threats same industry Focus on building and W3O2: Research investment developing a highly qualified strategy marketing team Focus on researching products that bring health to consumers S1T3 Brand positioning strategy W1T1 Product differentiation Consolidate and develop the strategy brand, attract customers and at Create new product-market the same time overcome pairs for businesses to increase difficulties hindering brand their competitiveness with development caused by Covid competitors S1,3 O2: Product differentiation strategy Develop products suitable for consumers at the same time 18 Pearson Education 2020 Higher Education Qualifications creating products that are beneficial to health IV THE EFFECTS THAT BOTH MACROS AND MICRO FACTORS HAVE UPON BUSINESS OBJECTIVES PESTLE factors will help us identify and find the SWOT factors of the business For example, listing all the political, economic, social, technological, legal and environmental factors that can affect the business of the enterprise will help the leader easily identify the opportunities the same threat to businesses Therefore, a PESTLE analysis can play an important role in creating a complete SWOT analysis Suitable strategy for Coca Cola Vietnam Company - Strategy 1: Research investment strategy Strategy 2: Integrated development strategy Strategy 3: Brand positioning strategy In this regard, the integrated development strategy and product development assist Coca Cola Vietnam in achieving the following objectives - When combined with marketing and distribution activities, this strategy assists the company in expanding its production activities in the non-gas beverage segment, which accounts for a large proportion of the market, and overcoming its weaknesses 19 Pearson Education 2020 Higher Education Qualifications ... brings Businesses will develop policies and business operations that are most appropriate for them based on those implications Six elements have a direct impact on the macroenvironment of businesses:... technique for helping businesses have a comprehensive picture, not only of the business itself, but also of the elements that always impact and determine the choice to the success of the business 13 Pearson... consumer protection, and timely countermeasures, creating loss so on, contribute to a normal business in business due to climate Coca-Cola is committed to understanding of the law equality and long-term