(Tiểu luận) midterm reportanalyzing corporate levelstrategy of golden gatecorporation

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS MIDTERM REPORT ANALYZING CORPORATE LEVEL STRATEGY OF GOLDEN GATE CORPORATION Course : Management Class code : QTRE303(GD2-HK2-2122)CLC.1 Submitted by : Group Instructor : Phd Do Huong Giang Ha Noi, June 2022 GROUP MEMBERS INFORMATION No Name Student ID Phan Ngọc Khánh 2012150046 Nghiêm Lê Mỹ Hạnh 2013150017 Lê Trần Thảo Ngân 2013150036 Phạm Mai Phương 2012150079 Nguyễn Minh Hạnh 2014340203 Phạm Tuấn Anh 2012250010 Hanjiye 2290101007 Kim Gyeongseon 2290101006 EVALUATION OF CONTRIBUTION FOR TEAM MEMBERS No Person in charge Phan Ngọc Khánh Nghiêm Lê Mỹ Hạnh Specific tasks Summarize and finalize report Design Powerpoint slide and report Golden Gate’s early stage strategy Summarize references Presenter Kim Gyeongseon Phạm Tuấn Anh Nguyễn Minh Hạnh Phạm Mai Phương Introduction Company’s overview Golden Gate’s before pandemic strategy Golden Gate’s during pandemic strategy Preparing hard copies Golden Gate’s post pandemic strategy Script writer Lê Trần Thảo Ngân Presenter Finalize report Hanjiye Script writer Presenter Base on the specific tasks listed above, our group has calculated the average scores for each team members as the following (unit of calculation: %) Number of orders Name Student ID Level of contribution (%) Phạm Tuấn Anh 2012250010 95 Nghiêm Lê Mỹ Hạnh 2013150017 99 Nguyễn Minh Hạnh 2014340203 99 Phan Ngọc Khánh 2012150046 99 Lê Trần Thảo Ngân 2013150036 99 Phạm Mai Phương 2012150079 99 Kim Gyeongseon 2290101006 99 Hanjiye 2290101007 99 TABLE OF CONTENTS INTRODUCTION CORPORATION’S OVERVIEW GOLDEN GATE’S STRATEGY IN EARLY STAGE Implemented Strategy  The portfolio strategy .8  The directional strategy Strategy Evaluation GOLDEN GATE’S STRATEGY BEFORE THE PANDEMIC 11 Implemented Strategy 11 Short term Strategy: Creating a new trend 11 Long term Strategy: Building a sustainable system 12 Strategy Evaluation 13 SWOT Analysis of Golden Gate before the pandemic 13 GOLDEN GATE’S STRATEGY DURING THE PANDEMIC 15 Implemented Strategy 15 Strategy evaluation .17 SWOT Analysis of Golden Gate during the pandemic 17 GOLDEN GATE’S STRATEGY AFTER THE PANDEMIC 20 Golden Gate’s current situation 20 Implemented Strategy: Invest in breadth and depth 21 Strategy Evaluation 22 RECOMMENDATIONS .24 REFERENCES 25 INTRODUCTION In 2020, Golden Gate ranked fourth in the industry, accounting for 30% of Vietnam's food and beverage sales This company's chain restaurant is very common in Vietnam Especially “Kichi Kichi”, a sushi bar-type buffet restaurant These are restaurants that you can easily find when you eat out, such as club beer bar "Vuvuzela" and Korean meat restaurant "Gogi House." Based on aggressive marketing and preoccupation with major commercial areas such as large shopping malls, this company has grown into the largest food service company brand in Vietnam All franchise restaurants were temporarily closed due to the government's strong quarantine system "social distancing" conducted by the company, which had no problems before COVID-19, and profits declined rapidly as fewer people ate out after that Let's look at what strategies companies that were doing well-applied step by step in the face of the pandemic of COVID-19 pandemic This report analyzes the corporate strategy of Golden Gate since its inception, determines the type of corporate strategy selected by the company at each stage of corporate strategy analysis so far, and evaluates the risk and success/failure level of that strategy Document continues below Discover more from:dịch TMQT Giao TMA302 Trường Đại học… 818 documents Go to course Phân tích hợp đồng 64 giao dịch thương m… Giao dịch TMQT 100% (10) Đề thi cuối kỳ giao dịch thương mại… Giao dịch TMQT 100% (10) Incoterms-2020 127 tiếng việt Giao dịch TMQT 100% (9) VỞ GHI GIAO DỊCH 69 Giao dịch TMQT 100% (5) tiểu luận GDTMQT 91 Giao dịch TMQT 100% (5) BÀI TẬP PHẦN XÁC 12 SUẤT – AAA Class… Giao dịch CORPORATION’S OVERVIEW TMQT 100% (4) History of establishment Golden Gate (Golden Gate Trade Services JSC) was established in 2005 and is recognized as an operator of sales, restaurants, and franchise chains And it is a pioneer in applying the restaurant chain model in Vietnam, with five main casual dining cuisines which are Hotpot, BBQ, Asian, Western, and Cafeteria Golden Gate currently operates more than 22+ dietary concepts with 400 restaurants across Vietnam and serves 18 million customers each year In 2005, Dao The Vinh, who lived in Russia for 14 years in his early 30s and returned to Vietnam, opened the first mushroom hot pot restaurant Ashima on Phan Dinh Phung Street in Hanoi with the help of a friend Ashima was more successful than expected, and the number of Ashima restaurants increased to six in just two years Vietnamese private equity firm Mekong Capital, which saw Ashima's rapid growth, invested $2.6 million in Hoang Thanh Joint Stock Company, which was renamed Golden gate in 2017 Golden gate has made a major change with the support of investor Mekong Capital The venture fund introduced several restaurant concepts to help transform the golden gate into a restaurant chain operator The founder is the chairman Mr Tran Viet Trung, the CEO Mr Dao The Vinh, and the deputy CEO, Mr Nguyen Xuan Tuong Golden Gate’s growth highlighted in recent years Corporation’s missions, philosophy and vision  Mission: Happy team members - happy customer  Philosophy: More quality of life  Vision: Be the first F&B choice Corporation’s core values Golden Gate’s core values are Integrity, Humanity, High performance    INTEGRITY – Doing the right things, even when no one is watching HUMANITY – Acting out of compassion and empathy HIGH PERFORMANCE – Being productive and strive for exceptional performance GOLDEN GATE’S STRATEGY IN EARLY STAGE Implemented Strategy Briefing about Golden Gate’s early stage corporate level strategy from 2008 until 2011, the firm had visualized a clear roadmap of the issues it must encounter as a whole corporation  The portfolio strategy During its initial time of operating, Golden Gate has always been expanding extensively as well as intensively in the Vietnamese market, within the F&B industry only From the very start, they had put emphasis on the R&D process; accordingly, before launching a new brand, this company conducted market research by two methods, orthodox and unorthodox With the orthodox method, the specialized department of Golden Gate will conduct research and estimate the market capacity Observing and feeling about the food, the decoration space, the way of serving are the unorthodox research methods After that, the R&D team will conduct research on new models, potential human resources to implement When the model is approved, the executive board, CEOs and related departments will discuss in detail the specific implementation plan By strictly following this process, Golden Gate had successfully penetrated the Vietnamese market by understanding deeply about customer needs and desires, having stores located throughout the countries, initially Ha Noi and Ho Chi Minh cities - the major metropolis of Vietnam Worth-mentioning, the corporation had the former CEO of the KFC restaurant chain in Asia to be the business advisor According to Mr Chad Ovel - General Director of Mekong Capital: “The key to Golden Gate's success is its access to experienced people in the world We have created opportunities and conditions for Golden Gate's managers to go around, meet and interact with the world's leading experts in the restaurant industry, thereby helping them to open new directions that are completely new to grow the company's business.” The manner in which management coordinates activities & transfers resources and cultivates capabilities among product lines and business units Typically, the senior managers will spend the week sitting with relevant managers in their respective fields “It could be half a day with the central kitchen manager, and half a day with the chief financial officer, and they could ask anything like how to create a bonus system or negotiate with suppliers.” According to Mr Ovel, such trips have brought Golden Gate's leaders to what is called a "kick", which has completely changed the direction of the company's business Along with the support of the fund's investors and their extensive network of relationships, Mekong Capital also introduced Golden Gate's management to the world's leading restaurant groups  The directional strategy payment, Golden Spoon asks customers to rate their satisfaction on a scale of 1-10 Digital transformation helps Golden Gate understand customers better to improve service quality Strategy Evaluation SWOT Analysis of Golden Gate before the pandemic Strengths   Having strong financial potential, Weaknesses  trendsetter, the market is not yet technical process aware of and receptive to the products that the corporation The human resources system is the leader offers in the field of F&B in Vietnam  Most always play the role of a operating as a chain restaurant with a high The employee training system can be the leader in the restaurants present in Vietnam, the employee's regime and skills  In the market at that time, people still preferred fast food restaurants from abroad are always highly appreciated  Having the next event and developing technology, taking the lead in technology application to establish customers 13 Opportunities   As the number restaurant chain Threats  The biggest risk is probably that established by Vietnamese people, the rival RedSun chain is always attracting a lot of foreign investment trying to capture market share, if capital, trained by experienced foreign there is any major incident, it experts in the field of F & B will be difficult for businesses to The segment of restaurants in shopping attract customers malls (high-end) but with affordable prices for the majority of the urban population is increasing in number, this is also the GG restaurant segment that took up market share very quickly during that period 14 GOLDEN GATE’S STRATEGY DURING THE PANDEMIC Implemented Strategy Golden Gate's representative said that the COVID-19 pandemic is a screening event for the F&B industry, only businesses that are well adapted to this condition can survive In the context of Vietnam being affected by the fourth wave of COVID-19 epidemic, the restaurant business is among the sectors that have suffered heavy losses From the end of the 2nd quarter to the beginning of the 3rd quarter, most restaurants had to close according to Directive 16 of the Government Currently, the epidemic situation is still deteriorating and it is not known when the restaurant business can be reopened, let alone recover to pre-pandemic levels Adapting to the new situation will be the keyword for the post-pandemic restaurant chain business Golden Gate still reported profit despite the first year of the pandemic, the market's rapid recovery has been verified Golden Gate Trading and Service Joint Stock Company (Golden Gate), which owns the largest multi-brand restaurant chain in Vietnam, probably clearly feels the difficulties caused by the pandemic Golden Gate currently operates famous brands such as Ashima, Kichi - Kichi, Hutong, Manwah, Gogi House, Isushi, Vuvuzela, Cowboy Jack's However, the business results data shows that Golden Gate has adapted very well to the new situation of the market Last year, the company achieved a revenue of 4,559 billion VND, a slight decrease despite the period when restaurants were forced to close due to the epidemic as well as changing customer habits With the gross profit margin still remaining at a high level of about 60%, the restaurant chain owner reported an after-tax profit of 65 billion dong According to a representative of Golden Gate, it is inevitable that the general market will be affected by the pandemic, but each brand and business location will have different recovery rates Golden Gate's customers are mainly office workers and families with average or higher incomes This is a group of customers with the ability to recover consumption relatively quickly after the epidemic waves In fact, after the quarantine period in April 2020, brands such as GoGi House, Manwah, Kichi - Kichi have filled up from 80 to 100% of capacity in the first week Promote diversification of revenue sources, reduce expenses, and enhance efficiency The covid-19 pandemic has pushed the global economy into one of the worst recessions in history and an end date has not been determined The rapid pace of the outbreak has forced many countries and regions to implement distancing and closure measures, causing a sharp drop in economic activity 15 For the food service industry, the covid-19 pandemic has had a heavy impact Especially from the end of April to the beginning of May 2021, the outbreak of the pandemic caused restaurant operations to become paralyzed, the 4th wave of epidemics from May 2021 to September 2021 and other news All cases of infection have a direct impact on the restaurant's business In addition, the frozen international tourism market and limited domestic tourism are also a reason for the sharp decline in the number of F&B customers in general and especially at tourist destinations Along with waiting for the market to warm up, the restaurant chain has also increased the implementation of proactive solutions to help boost sales Including the G - Delivery service that delivers food at home to meet customers who are afraid of going to crowded places Along with that, Golden Gate promotes the development of the Ready-to-eat product line under the Icook brand (preliminarily processed, frozen and packaged) The products are distributed throughout the North to supermarkets/convenience stores VinMart/Vinmart+, or on e-commerce platforms Tiki, VinID, ShopeeFood, GrabMart, Lazada According to the representative of Golden Gate, the product line Products are now very well received by customers because they can be bought and stored for a long time at home, minimizing the number of times going out to buy food at a sensitive period In addition, Golden Gate also researched and launched incentive programs, suitable products for demand and stimulated the vibrant market again Owning up to 385 stores by the end of 2020, even the smallest increase in cost control and operational efficiency of Golden Gate has a wide-ranging impact across the chain A representative of Golden Gate shared that in the past time, the company has actively negotiated with site owners to share difficulties with businesses through reducing rental fees Especially, the partners that rent out space in the commercial center have a policy of freeing part of the rent during the closure period according to the Government's regulations Create trust for customers with epidemic prevention measures according to the Government's regulations and strengthening measures at the restaurant In difficult times, the company focuses more on investing in people, training the management team, building a corporate culture that puts the interests of customers first, thereby bringing better experiences to customers Specifically in 2021, Golden Gate continues to perfect the KPI system, salary and bonus from the restaurant block to the office; improve working conditions and environment The development of technology makes society run more optimally Businesses that are part of society should be forced to adapt to a new way of operating, otherwise they will be automatically eliminated Golden Gate has transformed digital by building its own technology capabilities The Group quickly applies technology in business activities with initiatives such 16 as G-Delivery, G-Hero (for ingredient planning and shift personnel), Kiosk for iPho (ordering and paying for food by technology,…) At the restaurant, the use of human resources is balanced according to the needs and actual business situation In operation, with the advantage of scale of restaurants, the company also reached good agreements when finding high quality raw materials at reasonable prices In addition, Golden Gate has also invested in an ERP system to improve efficiency in business management, promoting comprehensive digital transformation projects not only in departments that directly contact customers, but also at support parts to optimize resources Thanks to timely implemented measures to optimize revenue and effectively control costs, Golden Gate still maintains cash flow, repays debt on time, and ensures a safe debt-toequity ratio overall (lower than industry average) Strategy evaluation SWOT Analysis of Golden Gate during the pandemic SWOT Opportunities (O)  The demand for food of people during the epidemic season increases  Strong competitor (Redsun)  Revenue decreased due to the epidemic  Large population, big market   The diverse menu changes constantly Customer requirements change constantly  Strengthen marketing campaigns (discounts, promotions, reward points) to attract customers   Develop signature products such as tom yum hot pot brand of Kichi Kichi conveyor hot pot and eliminate saturated products like Vuvuzela Beer Implement brand positioning strategy such as strong marketing to build a brand, increase competitiveness  Develop menus that catch up with trends and have their unique features  Develop an app that can remember the Strengths (S)   Quality products meet standards SO Good service  Strong reputation, well-built brand  Embrace the digital revolution, develop an online sales model through The Golden Spoon App, G-delivery delivery service, or the Threats (T) ST 17 Ready-to-eat product line under the IIcook brand Club Weaknesses (W)  Product price increase due to epidemic  Limited human resources lead to insufficient workers to fulfill online orders, resulting in overload of orders names and favorite dishes of customers and have special preferential policies WO   Focusing on online sales services combined with wellknown delivery applications such as Grab, Shoppefood, Besides focusing on serving food or drinks, the company can sell additional products such as water bottles, porcelain cups, porcelain bowls, WT  Additional budget for marketing  Supplement human resources for the lacking facilities  Comply with the rules of epidemic prevention of the Ministry of Health Golden Gate's stability strategy implementation may not be risky because it is based on the restaurant chain's competitive advantage/strength and aims to achieve several of the most important goals in the F&B industry: improve customer experience and develop business services through technology platforms During Covid-19, they made significant modifications by developing the G-delivery app, which is an adaption to client requirements In the context of the market-facing many difficulties and challenges, the Company has made great efforts to ensure effective business, applying flexible planning methods, responding to each stage depending on the situation Although in 2021, complying with regulations on epidemic prevention and control of provinces and cities, the company had to close restaurants for one-third of operating days in the year, the company still achieved revenue of 3,320 billion VND, equaling 73% of 2020 18