PROGRAM TITLE Higher Nationals in Business UNIT TITLE Unit 1 Business and the Business Environment ASSIGNMENT NUMBER 2 ASSIGNMENT NAME Assignment 2 SUBMISSION DATE 13 October 2022 DATE RECEIVED 30 Sep[.]
PROGRAM TITLE: Higher Nationals in Business UNIT TITLE: Unit 1: Business and the Business Environment ASSIGNMENT NUMBER: ASSIGNMENT NAME: Assignment SUBMISSION DATE: 13 October 2022 DATE RECEIVED: 30 September 2022 TUTORIAL LECTURER: Pham Xuan Hung WORD COUNT: 2344 STUDENT NAME: Nguyễn Phương Thanh STUDENT ID: BKC13268 MOBILE NUMBER: 0965704245 Summative Feedback: Internal verification: Contents Report introduction Choose ONE company/organization from Assignment and briefly introduce the chosen company/organization .1 Apply appropriately the PESTLE model with a detailed analysis within your chosen company Identify the positive OR negative impacts the factors in PESTLE model have upon business operations of the company 5 Appropriately apply the SWOT analysis in the chosen company: Conduct a SWOT matrix to show the inter-relationships between strengths and weaknesses and external macro factors (opportunities and threats) Based on the SWOT analysis, suggests decisions that should be made to improve the business operations of the company References MOBILE WORLD COMPANY Report introduction The structure of report consists of parts: - Introduce report structure - Introduce the chosen company - Apply appropriately the PESTLE model with a detailed analysis within your chosen company - Identify the positive or negative impacts the factors in the PESTLE model have upon - Appropriately apply the SWOT analysis in the chosen company - Conduct a SWOT matrix to show the inter-relationships between strengths and - Based on the SWOT analysis, suggests decisions that should be made to improve the the business operations of the company weaknesses and external macro factors (opportunities and threats) business operations of the company Choose ONE company/organization from Assignment and briefly introduce the chosen company/organization Mobile World Co Ltd was established in 03/2004 by co-founders: Tran Le Quan, Nguyen Duc Tai, Dinh Anh Huan, Dieu Chinh Hai Trieu and Tran Huy Thanh Tung, the company's main activities include buying and repairing mobile phone-related equipment, digital devices, and e-commerce-related fields With the experience of the mobile phone market since the early 1990s, along with carefully studying the purchasing habits of Vietnamese customers, thegioididong.com has built a business method that has never been seen in Vietnam before The company has built an exceptional sales consulting style thanks to professional staff and www.thegioididong.com website support as a mobile handbook and a leading e-commerce channel in Vietnam Currently, the average number of phones sold on thegioididong.com is about 300,000 units/month, accounting for about 15% of the country's genuine phone market share On average, selling more than 10,000 laptops a month, the company became the largest retailer selling laptops in the country Online sales and home delivery nationwide have been implemented since the beginning of 2007, now the number of customers buying laptops through www.thegioididong.com website and call center 1900,561,292 has increased significantly, an average of 5,000 - 6,000 orders per month This is a potential sales channel and an effective tool to help customers in remote areas buy a satisfactory product when they not have the conditions to watch the product directly phẩm.www.thegioididong.com is the largest e-commerce website in Vietnam with more than 1,200,000 visits per day, providing detailed information about prices and technical features of more than 500 phone models and 200 laptop models of all official brands in Vietnam Nam.Thegioididong.com has received many awards voted by consumers as well as partners for many years Some awards: Top 500 leading retailers in Asia - Pacific 2010 Top fastest developing houses in Asia - Pacific 2010 Top 500 Fast Vietnam 2010 (Thegioididong.com is in the top 4) Retailers are forested at the most consecutive years 2007, 2008, 2009, and 2010 (Vietnam Mobile Awards) Mobile phone retailer has the most diverse item Mobile phone retailer takes care and best customer support Famous brand award in Vietnam in 2008, according to consumers' recognition issued by the Vietnam Chamber of Commerce and Industry The retailer of the year organized by PCWorld Vietnam Certificate of merit and certification of the authorities awarded [ CITATION Thế22 \l 1033 ] Apply appropriately the PESTLE model with a detailed analysis within your chosen company - Political factor: When the country implements an open economy, the market economy creates many advantages for TGDD to exchange and trade with phone manufacturing countries such as Samsung of South Korea, and Apple of the US, and cooperation between countries around the world, creating more incentives to promote cooperation in relationships, develop and expand potential markets at home and abroad Since the 1990s when relations between Vietnam and Cambodia improved, both sides have been members of the multilateral organization ASEAN, the Ganges Mekong Cooperation, which has opened up trade development, aiming to increase bilateral trade to $2.3 billion by 2010 In 2017, TGDD opened its first store outside Vietnam in Cambodia, a Bigphone supermarket in Phnom Penh, Cambodia achieved revenue of more than billion VND / month The State and the National Assembly introduced and amended many policies on regulations and protection to ensure that businesses can operate in a favorable environment to promote long-term development as law business, competition law, and investment law [ CITATION Trư19 \l 1033 ] - Economic factor: The rate of economic growth or economic decline also greatly affects the business situation of TGDD, affecting the strategies, orientation, and consumption of TGDD When the economy is depressed or slow to develop, leading to a decrease in the overall spending capacity of the people, the costs and consumer demand decrease sharply, reducing purchasing power parity, and low GDP profits make business expansion difficult In 2020, when the general situation of the whole world was heavily affected by the COVID-19 epidemic, the economy was stagnant, many businesses were closed, TGDD was also significantly affected when MWG sales (MWG stock code of TGDD) decreased by 174 billion VND (equivalent to 45%) compared to April 2019, having to close 600 large and small stores in the first 154 months of the year and maintaining closed more than 300 stores from April 16-25 to coordinate with State agencies in fighting the epidemic [ CITATION Trư19 \l 1033 ] - Social factor: The population of our country is increasing as well as the growing urbanization process, leading to increasing material demand of each person, leading to the product line of phones being born and continuously improving To better suit the current development process When the population increases to more than 98 million people and the demand increases, the number of products for phone products is also increased, so the population is an important factor affecting the amount of consumption for the business Karma [ CITATION Trư19 \l 1033 ] - Technological factor: Technology and the development of technology have also been strongly affecting the business process of TGDD As technology develops, people have more curiosity about the world, so smartphones are a tool and a means to help us explore many parts of the world as well as create more access to information more easily and quickly In many different aspects: Technology and the development of technology have a strong impact on businesses using advanced production methods, modern technical processes, advanced equipment, and new useful materials to produce phones with higher quality in accordance with the needs of customers, increasingly win the trust of customers with the comfort of smartphones [ CITATION Trư19 \l 1033 ] - Legal factor Corporate income tax increased, business expenses, revenue, and profit for years now almost decided by COVID-19 If you pay little, businesses worry about being fined for late payment, and if you rotate a lot of money, you will lose Meanwhile, enterprises are in need of money to invest and restore production and business in the post-epidemic period When a phone is a product, there are types of tax, which is the import tax (TNK) levied on enterprises importing products, if this tax increases the high cost of TGDD, affecting the price of phones in segments Value-added tax (VAT) is a fee that buyers have to incur when buying products paid by enterprises and remitted to the State, usually when the value tax increases, it will affect the psychology of buyers and customers when choosing products [ CITATION Trư19 \l 1033 ] - Environmental factor: Depending on the location where people live, there will be different tastes, preferences, and requirements In rural areas densely populated and income disparities of different regions lead to different spending capacities using goods Rural and upland areas are largely populated by the main agricultural economy, In these places, the demand for phones of people is lower than in urban, and the requirements for phones are not too high, mainly used for listening, calling, entertainment, and not requiring high technology People's incomes are lower than urban ones, so the ability to spend is also lower Urban areas and cities with a large concentration of knowledge and high-tech applications, higher average incomes are capable of spending, so the demand for phones is also higher than in rural areas [ CITATION Trư19 \l 1033 ] Identify the positive OR negative impacts the factors in PESTLE model have upon business operations of the company (Discussed in the above section) Appropriately apply the SWOT analysis in the chosen company: - Strengths: + The company owns a very wide chain of stores, stretching over 63 provinces with 950 stores as of the end of T9/2021 + The chain of stores is located in extremely favorable locations, the store space is very spacious with an area of about 100-200m2 + The products are sold very diverse, stretching from mobile phones, tablets, laptops and accessories, watches, sim cards, and network services + The company owns more than 70000 employees with professional knowledge, skills, very professional attitude, well-trained and loyal to the company + The service quality of the company ranks top in the market with promotional, after-sales, and customer care very well + The company has good relationships with the media + The name and position of the company have been confirmed in the retail market in recent years + The company's traffic is very high, ranked in the top of Vietnam after Shopee [CITATION Trư22 \l 1033 ] - Weakness: + The price of products is still high compared to other retail chains + Human resource management is still weak when the company can hardly accept talented people from outside into its apparatus + The company is influenced by a huge macro environment, affecting the operation of the company [CITATION Trư22 \l 1033 ] - Opportunities: + Customers are more and more interested in customer service and purchase consulting which thegioididong is doing very well + The retail market is still expected to rise in the near future + TGDĐ participated in the watch distribution market With the market of Vietnam watches worth about VND 17,000 billion in 2018 (data provided by PNJ), this is a great potential market, where many years when there are only small stores + After going through the pandemic, the economy recovers, and the purchasing power of the people will increase a lot [CITATION Trư22 \l 1033 ] - Threats: + The economy is still in a long period of crisis + Changes in people's shopping trends, reducing spending and saving + Customers tend to find more reasonable retail chains but the quality is almost equal + The piece market share is getting smaller, but the competition is increasingly fierce [CITATION Trư22 \l 1033 ] Conduct a SWOT matrix to show the inter-relationships between strengths and weaknesses and external macro factors (opportunities and threats) Strengths: Opportunities - Development strategy, opening more branches focused on prime locations in the area to be able to Weaknesses: - Giving customers the high price that they spend is worthy of what they receive, improving service strengthen coverage, quality, based on the strengthening staff available reputation training, towards a to develop brand perfect customer identity with many care system activities to attract customers such as discounts, and free ship - Focusing on dominating the electronics market, improving and launching a series of flexible and simple installments to make it easier for customers to own their favorite products Threats - Brand positioning - If the domestic strategy: Strongly market is saturated, hit the marketing the risk of segment to build, competition with and enhance brand other retailers is identity, and increasing, and the increase risk of competitiveness macroeconomic compared to other domestic economic retail chains is not stable, we should change its direction to - Product neighboring differentiation countries like Laos, strategy: Research, Cambodia, and focus on developing Myanmar Those are into large potential new markets, with markets in Vietnam high purchasing such as high-end power but there are watch markets, etc still very few Painting with competitors opponents [CITATION Trư22 \l 1033 ] Based on the SWOT analysis, suggests decisions that should be made to improve the business operations of the company - Decision 1: Because the price of the product is still high compared to other retail chains, the company needs to balance the price of the product to compete with those competitors From there the company can increase competitiveness with competitors - Decision 2: Customers tend to find more reasonable retail chains but the quality is almost equal, so the company needs to hit marketing strongly to raise brand awareness for customers - Decision 3: The piece of market share is getting smaller, but the competition is increasingly fierce, so the company can open its direction to foreign markets such as Laos, Cambodia, and Myanmar, so diversify business markets References Thế Giới Di Động, 2022 thegioididong.com [Online] Available at: https://www.thegioididong.com/tin-tuc/thong-tin-ve-thegioididongcom-23318 [Accessed 13 10 2022] Trường Đại học Kinh tê - Đại học Đà Nẵng, 2022 studocu.com [Online] Available at: https://www.studocu.com/vn/document/truong-dai-hoc-kinh-te-dai-hoc-danang/principle-of-marketing/mo-hinh-swot-thegioididongcom/19060160 [Accessed 13 10 2022] Trường Đại học Văn Hiến, 2019 studocu.com [Online] Available at: https://www.studocu.com/vn/document/truong-dai-hoc-van-hien/tieng-anhthuong-mai/bai-tieu-luan-cuoi-ky-tieu-luan/24342510? fbclid=IwAR058C4CCFHu6A4CcxAvpU2WOscCJjX-rYV5NYgQUcR3LI0rvz9EDh_5ptM [Accessed 13 10 2022]