the company you choose is in the process of expanding its business to a foreign country or region your team is responsible for developing a comprehensive report for senior management

About the company and international expansion:Trung Nguyen Group Joint Stock Company was originally a small coffee shop founded by Mr.Dang Le Nguyen Vu in Buon Ma Thuot, known as the cof

Introduction To International Business

Instructor: Hồ Ngọc Hồng Phương

GROUP ASSIGNMENT

TOPIC: The company you choose is in the process of expanding its business to a foreign country or region Your team is responsible for developing a comprehensive report for senior management, providing valuable insights into the cultural differences between the two countries and how these differences are likely to impact operations your business.

Class: IB1806

Group: B

Semester: Fall 2023

Word Count: 3786

Student’s Name and ID:

Phạm Thị Thanh Thảo SS171231

Table of Content:

I Project overview:

1 Project purpose:

2 About the company and international expansion: ……

II Company Overview: 1 Company history, industry and operations:

2 Context of overseas expansion:

3 Explain the decision to expand abroad:

III Cultural analysis: 1 Introduces the concept of cultural differences and relevance :

2 Explanation of the cultural dimensions of Hofstede's model:

2.1 Power distance:

2.2 Individualism:

2.3 Masculine/Feminine:

2.4 Avoid uncertainty: …

2.5 Long term orientation:………

3 Compare cultural aspects between home country and host country:

4 Cultural differences impact aspects of a company's operations:

4.1 Marketing and advertising strategy:

4.2 Human resource management:

4.3 Communication and negotiation:

4.4 Decision making process:

4.5 Leadership and management style:

4.6 Recommendations and strategies:

5.7 Based on the analysis of cultural differences, make clear:

6 Make clear recommendations about the international business strategy the company should pursue:

7 Justify recommendations with explanations: III Conclusion:

IV References:

I Project overview:

1 Project purpose:

Develop an appreciation of international business knowledge in the context of cultural differences and their impact on business operations

Improve critical thinking skills by identifying, analyzing, evaluating, and constructing arguments that demonstrate a deep understanding of management issues related to international business

Gain proficiency in searching and locating materials using both library and internet resources Analyze information sourced from business cases and articles and synthesize this new-found knowledge into a written report

2 About the company and international expansion:

Trung Nguyen Group Joint Stock Company was originally a small coffee shop founded by Mr Dang Le Nguyen Vu in Buon Ma Thuot, known as the coffee capital of Vietnam Trung Nguyen's primary activities involve coffee production, processing, trading, and franchising the Trung Nguyen coffee brand Trung Nguyen Coffee is one of the leading famous brands in Vietnam

Currently, Trung Nguyen has typical products such as:

Instant coffee: Including G7 coffee, Trung Nguyen Legend coffee and specially prepared Trung Nguyen instant coffee (Trung Nguyen Legend Cappuccino Mocha, Cappuccino Coconut, ), filter coffee

Roasted and ground coffee: Including popular roasted and ground coffee (Aspiration Coffee I,

S Conquer Coffee, Vitality Coffee) and medium-high roasted coffee (Premium Blend, Gourmet Blend, House Blend)

Coffee beans: Includes 3 groups: Trung Nguyen Legend Success coffee beans (1,2,3,8) and Buon Ma Thuot Espresso coffee In particular, Trung Nguyen also has Specialized Coffee: The highest quality, highest quality coffee product in Trung Nguyen including Legend Coffee (weasel coffee), Weasel coffee, Creative coffee 8 Up to now, Trung Nguyen's products have

been exported to more than 60 countries globally, typically: USA, Canada, Russia, UK, Germany, Japan

In 2019, according to statistics just announced by Kantar World Pannel, Trung Nguyen Legend was chosen and trusted by 20 million Vietnamese households and is the leading coffee brand in Vietnam Furthermore, the brands Trung Nguyen Legend, G7, Trung Nguyen have fast growth rates in the world's leading economic markets such as the US, China, Korea, Russia , Meanwhile, the system Trung Nguyen Coffee retail store E-Coffee has just launched in August 2019, is creating a strong franchising boom with a new registration rate of

10 stores/day, reaching more than 150 stores and more than 500 contracts and cooperation agreements The goal of 3,000 stores in 63 provinces and cities in Vietnam and reaching out globally is set by Trung Nguyen E-Coffee for 2020

II Company Overview:

1 Company history, industry and operations:

1996: On June 16, 1996, Chairman DANG LE NGUYEN VU founded Trung Nguyen in Buon Ma Thuot

1998: Established the first coffee shop in Ho Chi Minh City, starting the Trung Nguyen cafe system in the provinces

2001: Successful franchising in Japan and Singapore Announcing the slogan: "Sparking Creativity"

2003: G7 instant coffee product was born with the event "G7 Instant Coffee Festival" at the Reunification Palace As a result, 89% of people chose G7 as their most favorite product 2010: Trung Nguyen coffee products exported to more than 60 countries and territories globally

2012: Coffee brand most loved by Vietnamese consumers

Launching the Journey of Great Will - Starting a Business to Build a Nation with the Creative Festival for Vietnamese Aspiration attracting more than 50,000 participants

2017: Trung Nguyen Legend officially opened a representative office in Shanghai (China) Launching the E – Coffee Model

2022: Announcing the Journey to Experience the Mindful Lifestyle Forbes magazine honored Trung Nguyen Legend as "Awakening Brand"

2023: Opening of Representative Office in Korea

Celebrating 20 years of G7 brand conquering the globe

Currently, G7 energy coffee products are widely sold on all major sales websites such as Alibaba, Taobao.com, Tmall.com, Yihaodian.com, jd.com and over 1,000 supermarkets in China Opened right before the Chinese National Day holiday, Trung Nguyen Legend has become a check-in address that attracts Shanghai youth Quite a number of hot girls, KOLs, and reviewers have chosen the shop to experience and record vlogs Currently, only Trung Nguyen has researched and discovered three coffee civilizations including Ottoman, Roman and Zen

For the first time in the US, coffee lovers can experience a cup of filter coffee and iced milk coffee made from Trung Nguyen Legend's Creative 1-8 roasted and ground coffee line, suitable for many tastes enjoy differently The brand also introduced a coffee menu combining Vietnamese agricultural products such as egg coffee, ginger coffee, coconut coffee to bring special experiences to American customers

2 Context of overseas expansion:

International markets: Coffee is one of the industries with export potential in Vietnam and currently Vietnam's coffee exports are ranked 2nd in the world in the international market Trung Nguyen has seen this as an opportunity to develop as well as penetrate the international market to seek new opportunities

Revenue: Expanding the market is a very difficult and challenging task, but this is also an opportunity to grow revenue many times compared to only operating domestically

Branding: Trung Nguyen is famous for its good product quality Therefore, expanding the international market not only helps Trung Nguyen increase a large number of customers but also brings Trung Nguyen brand to a new level, increasing brand value

Demand: Perhaps many people around the world have a need to consume a lot of coffee, so this is a good opportunity for Trung Nguyen to enter the international market

3 Explain the decision to expand abroad:

Looking for new opportunities: Italy is the second largest coffee importer in the world Therefore, this is a country with great potential for development This helps Trung Nguyen coffee enhance its coffee image and bring in more revenue and customers

Globality of the brand: Trung Nguyen's goal is to develop a global coffee brand, expanding to Italy can help the company demonstrate diversification

Large coffee market in Europe: Expansion in Italy can help Trung Nguyen reach a large number of customers, because Italy is located in Europe, where the number of coffee consumers is also very large

The passion for coffee in the Italian lifestyle: Since appearing in Italy, over the centuries, coffee shops have been a space to convey historical and cultural stories In particular, coffee shops have played a very important role in the process of renewing political, artistic, economic ideology creating turning points in reshaping Italian culture and Italian style contribute to creating a new world Italian national identity as it is today Therefore, expanding into Italy could be an important step in shaping the global brand image This can help create creativity between Vietnamese coffee and Italian style, not only that but also help build trust and enhance image from international customers

III Cultural analysis:

1 Introduces the concept of cultural differences and relevance:

Cultural differences are an important aspect of transnational business and have a major influence on the way associations and individualities work and interact with each other in an

transnational terrain Then are some important aspects about artistic differences and their part

in transnational business description of Cultural Differences

The part of Cultural Differences in International Business : Deals and Communication Cultural differences can lead to misconstructions in communication and business deals The way ideas are presented, the dialogue, and the language of communication can vary significantly in different countries

Business opinions Artistic values and precedences can impact business opinions For illustration, some countries have a free request exposure, while others have a preference for state operation

Leadership and Management Cultural differences also have a significant impact on the way leadership and operation is rehearsed in an transnational terrain Leaders must understand and admire the artistic values of workers and business mates

2 Explanation of the cultural dimensions of Hofstede's model:

2.1 Power distance:

Power distance is the index indicating the extent to which the less powerful members of organizations and institutions accept that power is distributed unequally

With a power distance index of 70/100, Vietnam is considered a High power distance country

In Vietnam, because they have been taught from childhood the tradition of respecting teachers,

students show respect for teachers and tend not to criticize their teaching The fact that employees challenge leadership is not supported by everyone

Italy received a 50/100 rating from Hofstede on this dimension due to its support for decentralization of power and equality Italy's labor courts and laws are extremely stringent when it comes to employee-employer relations The legal system upholds the notion that employers and employees ought to get the same treatment

2.2 Individualism:

This index represents "the degree of integration of the individual with the collective and the community" A highly individualistic society often has a fairly loose level of ties and an individual tends to only bond with his or her family They focus on the subject "I" rather than

"we"

Impact on Vietnamese business culture:

In Vietnam's business environment, if there is a strong tendency toward individualization, workers may desire independence and not want to be overly controlled in their work Personal decisions and creativity can be encouraged and valued more

Impact on Italian business culture:

With a score of 76, Italy is an individualistic, ego-centric culture, especially in the big and wealthy cities of the North, where people can feel alone at once even in the middle of a crowded and busy crowded

Italy with a score of 76 is an individualistic country, centered on personal interests In contrast

to Vietnam with a score of 20, it is a collectivist country, placing common interests above individual interests Loyalty in a collectivist culture is paramount and trump's most other social rules and regulations

2.3 Masculine/Feminine:

Masculinity: is the degree to which a culture values traditional male roles such as

achievement, power, and control, as opposed to viewing men and women as equals High levels of masculinity indicate that the culture differentiates the roles of men and women, and that men dominate society

Impact up in Italy: With a score of 70, Italy is a Masculine society - driven and driven for success high Children are taught from an early age that it is good to compete and to be winners Winning is important in a person's life Because the working environment is where everyone Italians can achieve their own success, so the competition between peers to Building a career can be very powerful

While Italy is a country that honors men's rights with a score of 70, Vietnam This number is much smaller: 40 points In a country with high femininity, people will be treated with dignity work in a more moderate way, while masculine nations handle work in a tough way than This is the difference between two cultures: Italian - a society that values male power and Vietnamese Men – society that celebrates feminism and gender equality

2.4 Avoid uncertainty:

This component relates to how society handles the reality that the future is unpredictable: should we attempt to control it or should we simply let it happen? Anxiety is a byproduct of this ambiguity, and various cultures have developed unique coping mechanisms for it Due to its entrepreneurial mindset and risk tolerance, a startup may initially have a lower level of uncertainty avoidance At first, risk-taking and an entrepreneurial spirit can encourage adaptive and innovative attitudes To ensure stability and control risks, companies may need

to comply with more regulations as they grow and develop

Risk avoidance : 75 points Italy has a high risk avoidance score, indicating that its citizens seldom make dangerous decisions that result in little job turnover and discomfort vague High risk avoidance at work necessitates extensive, meticulous planning Italians may find the Low Risk Avoidance approach to be extremely distressing

Italy received a score of 75, which is regarded to be a high level Despite the fact that Vietnam only receives 30 points (45 fewer than Italy) on this criterion: flexible working hours, innovation is not seen as a threat

2.5 Long term orientation:

Long-term orientation: One way of expressing this aspect is to describe the need for societies

to maintain links with their past, including preserving traditions, while facing the challenges

of the times now and future

Impact on Vietnam: Vietnam is ranked 57 points and belongs to the pragmatic culture group, which means aiming for long-term sustainability In utilitarian societies, it is believed that correctness depends greatly on context, situation, and time

Impact on Italy:

A high score of 61 indicates that Italian culture is very pragmatic In societies that tend to be pragmatic, people believe that accuracy is highly dependent on context, situation, and time They demonstrate the ability to easily adapt to changing traditions, often promote strong savings and investments, and facilitate perseverance to achieve results

3 Compare cultural aspects between home country and host country:

Power distance:

Vietnam: 70/100 shows that the rights gap in Vietnam is very high That means (people will listen to leaders, students will listen to teachers, children will listen to parents And they take

it for granted

Italy: 50/100 this shows that Italians support equality and decentralization of power Despite obvious class differences, they still believe in equal treatment of workers and employers

Individualism:

Vietnam:20/100 Collectivism is promoted over individualism Shows that Vietnamese people often integrate into communities to be protected when faced with difficulties but otherwise must be loyal to that group

Italy:76/100 Individualism is promoted more than collectivism Shows that the rights and decisions of each individual in Italy are highly valued, tends to be independent and advises others to be independent