the international business strategy of highlands coffee

Germany is one of the largest coffee consuming countries in Europe with a long culture.. Besides, Vietnam is known as a country famous for coffee culture with the leading coffee export v

Danh sách thành viên

Thành viên 1: LE NGOC DUY (MSSV: 1921005036) Thanh vién 2: KHONG THI XUAN (MSSV: 1921003858) Thanh vién 3: NGUYEN THI HA TIEN (MSSV: 1921000321)

EXECUTIVE SUMMARY

In the current globalization context, it is not difficult to find a Chinese restaurant or products from Korea or Japan in Vietnam Globalization helps countries exchange cultures with each other, bring their unique features to friends around the world, and at the same time help countries promote each other's economic development to form economic blocs strong Expansion of business in another country offers great potential to promote product development and global economic growth, accelerate investment and strengthen international cooperation And to be able to access a completely new market, in a completely new country, we need to analyze, build and choose the right market entry strategy to minimize risks and achieve our goals

Germany is one of the largest coffee consuming countries in Europe with a long culture Besides, Vietnam is known as a country famous for coffee culture with the leading coffee export volume in the world Highlands coffee is one of the largest and most successful coffee chains in Vietnam with the Vietnamese style from coffee taste to the enjoyment and with the desire to bring our country's coffee culture to other cultures each

other in the world

The research team decided to choose the German market, using the PESTLE MODEL to analyze the strengths and limitations of the Garman coffee market, then building an appropriate business plan so that Highlands Coffee can be successful conquer

this potential market.!

1 Note: The data used in the report is up to 2020

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CHAPTER I: THE INTERNATIONAL BUSINESS STRATEGY OF

HIGHLANDS COFFEE

In Europe, Germany is the largest country, in terms of consumption of coffee The strong demand for freshly brewed coffee is driving sales in the market study Furthermore, the consumers demand for specialty coffee is rising, owing to the increasing awareness and knowledge about the product

2.2.1.2 Political stability

Germany has a highly stable political situation As a member of the European Union, Germany benefits from some of the world’s most renowned labor, travel, and trade policies Internally, the German political system has significantly less corruption than other European states, and its modern, democratic approach to decision-making is widely- accepted Nowadays, German politics, in particular, is gradually stabilizing after a dark period under the leadership of German Chancellor Olaf Scholz is an excellent diplomat and

is highly thought of across Germany and the entire European Union

Quan hệ đối tác chiến lược

Việt Nam - Đức

Đức là đối tác thương mại lớn nhất của Việt Nam tại châu Âu và cũng

là một trong những nước viện trợ ODA nhiều và thường xuyên cho Việt Nam

Quan hệ Đối tác chiến lược song phương đang ngày càng được củng cố

Cộng hoà xã hội chủ nghĩa Việt Nam

a Vị trí địa lý: Đông Nam Á

= ) Thiét lap quan hé ngoai giao:

Dân số (người)

QUAN HỆ SONG PHƯƠNG

Thiết lập quan hệ đối tác chiến lược 10/2011 rk Diện tích đất liền (km2) - 348.672

Dân số (người)

23/9/1975

90.000.000

Điện thoại cli dộng,

máy tính và linh kiện GDP bình quân đầu người/năm Np

Năm201 2012 2013 2014 10/2015

(Số liệu năm 2014) *(GDP- tỷ USD) (theo tỷ giá hối đoái chính thúc)

Nguồn: Bộ Ngoại giao, CIA, TTXVN

GDP bình quân đầu người/năm

Đức: 26 Ï dự án, tổng vốn đăng ký 1,413 tỷ USD Việt Nam: Ï 7 dự án, tổng vốn 92 triệu USD

CỘNG ĐỒNG NGƯỜI VIỆT Ở ĐỨC

ee ©

khoang 125.000 người 92% đã nhập quốc tịch Đức

© TTXYN Vietnam News Agency

http://infographics.vn/

Source: Bo ngoai giao vietnam

2.2.2 Economic issues

2.2.2.1 The consumption of product

Germany is one of the key importers of green coffee beans There is an increase in the demand for freshly brewed coffee, primarily due to the rising preference for specialty coffee and freshly ground coffee pods According to the data published by Beverage Business World in 2020, Germany was the groundbreaker, in terms of consumption of coffee in office spaces The key players prefer to serve freshly brewed coffee, made from whole roasted beans, especially in office spaces, primarily due to the increasing demand for whole roasted coffee The increasing demand for freshly brewed coffee is driving the companies to opt for roasted whole beans According to Kaffeeverband analysis, recorded

an increase of around 11% — that is equivalent to an increase of 37,900 tons of roasted coffee in 2020 This is impacting the sales of roasted ground coffee And according to the

forecast of German economists, the demand for coffee will increase in the future

Germany Coffee Market - Share of Organic Coffee, By Sales Volume, Certified Fair Trade

Coffee Germany, 2018-2020

2018 2019 2020

Source: Beverage Business World in 2020

2.2.2.2 Economic factors

Germany is the 4th largest economy in the world With nominal GDP forecasts for

2019 set to the tune of $4.2 trillion, the country looks set for robust economic growth However, a GDP decline in late 2018, coupled with shaky industrial growth, has left a shadow on the economic horizon of the nation Germany boasts of a low unemployment rate of 3.2%, which is arguably one of the lowest worldwide One of the top exporters of the world, Germany has a mixed economy with a budgetary surplus And although the recent refugee crisis has left the country shaken, but with a strong economic foundation, Germany looks set to remain an established economic power

Biểu đồ GDP bình quân đầu người Đức 1970-2020

50.000

45.000

4% 40.000

` 0 om ánH II all il | -6%

1970 1975 1980 198 1990 1995 2000 2005 2010 2015 2020

Nguồn: Solieukinhte.com

Germany's GDP per capita is always among the highest in the world after the US

In 2020, Germany's GDP per capita will reach 45,724 USD/person Germany's GDP per capita growth rate will reach -5.07% in 2020, down -744 USD/person compared to 46,468 USD/person in the year 2019 due to the negative effects of the pandemic But by 2021, Germany's GDP is gradually recovering and is expected to grow strongly in 2022 as the covid-19 pandemic is gradually brought under control and countries begin a new normal

GDP per capita over the years 2015 - 2020

2.2.2.3 Economic relationship with Vietnam

Economic relations between Vietnam and Germany develop rapidly For many consecutive years, Germany is Vietnam's largest trading partner in the European Union (EU) Two-way trade turnover in 2013 reached 7.7 billion USD, up 18% compared to 2012 Currently, Germany ranks 22nd out of 101 countries and territories investing in Vietnam with 232 valid projects and total registered capital of 1.25 billion USD About 250 enterprises, including many leading German economic groups such as Siemens, Bosch, Bilfinger are doing business effectively in Vietnam In the future, the Vietnam-Germany relationship will become stronger and stronger, becoming each other's strategic partners through free trade agreements and through the Eurasian cooperation forums (ASEM), ASEAN - EU

Xuất khẩu của Việt Nam sang Đức giai đoạn 2010-2020

Population structure in Germany

along the Rhine and the Rua region

Germans are ethnically homogeneous, with 99% of the population being German Germans have a high standard of living which is not only reflected in GDP per person, but also in benefits in terms of salary, working time, and leave; General working conditions are usually regulated under salary contracts and income tax reduction policies

2.2.3.2 People’s attitude with products

German coffee consumption has soared in recent years after a dip according to statistics made available If these figures are to be believed German coffee has sold at the rate of 6.1 kg per head Coffee has made a snazzy comeback in a stylish new avatar as a hot drink with attitude Innovative trends were signaled by espresso and instant versions that gave youa good cup of coffee on the go Out-of-home consumption is estimated to be make up about 25% of the coffee market German coffee has gone gourmet with a vengeance as it becomes almost an accessory to city chic It signals individuality and

confidence, not to mention that awesome caffeine induced bravado that works wonders

German coffee turned into a success story from consumption at the rate of 15,000 tons in the 90s to a whopping 55,000 tons in recent times German roasters together account for about 1.5 billion Euros worth of coffee imports About 2 million bags of green coffee

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are stored in warehouses in Bremen and Hamburg Big cities like Berlin and Hamburg have thriving coffee sales especially at outlets such as Starbucks and Balzac

The world's largest coffee consuming countries in 2020

In recent years, coffee consumption in Germany has increased and is expected to grow strongly in the future This opens up market potentials so that Highlands coffee can build its brand in Germany

2.2.4 Technological issues

German industry is very diverse and in many fields Germany is also a world leader

in the chemical industry Furthermore, among Germany's most innovative sectors with above-average growth rates are the technology sectors using renewable energy as well as information technology and biotechnology

Germany is also actively researching environmentally friendly materials, such as using straws, paper cups or bamboo to limit plastic waste released into the environment In addition, Germany is also a very developed country in terms of information technology and online commerce services Creative copyrights in Germany are very strongly protected

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by law so Highlands Coffee has an opportunity to improve mobile apps and associated services to achieve more revenue through mobile purchases The company can also improve its supply chain efficiency based on recent technologies used by coffee farmers However, the increasing availability of specialty coffee machines for home use may affect Highlands Coffee's business and growth in the German market

2.2.5 Legal issues

The Federal Republic of Germany uses a civil law system The legal landscape of Germany promotes the establishment of business ventures by both citizens as well as foreign investors An excellent investment environment, together with top-notch infrastructure and structural reforms to the corporate tax rates has made the country an

attractive destination for investors worldwide

The legal stability attracts foreign companies and is to the benefit of investments and entrepreneurial activity in Germany Business-life in Germany is based on the principle

of competition To control unfair market behavior is within the responsibility of the Federal Cartel Office in Bonn.Fair competition is also safeguarded by the Act Against Unfair Competition

Trademarks and patents enjoy strong protection in Germany For Germany, the German Patent- and Trademark Office is in charge of these registrations When exporting

to Germany, various aspects have to be considered: Customs and taxes, quality and environmental standards, Trademark and competition rules etc

The importer is responsible for clearing the items to put the goods in circulation in Germany Imported goods must be accompanied by a customs declaration, which has to be submitted in writing, and an invoice in duplicate Like most of the member states of the European Union, Germany adheres to the metric standard Quantities and qualities of goods must therefore be quoted in metric units or units derived from them.As consumer protection and information are of fundamental importance, there are precise regulations on labelling products, especially for food, which are bound for the Single European Market For safety

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aspects of several kinds of products, Germany has established the Federal Institute of Risk Assessment Building a business model will benefit from support from the government, but the strict requirements on product quality as well as great competitive pressure may create difficulties certain constraints for Highlands coffee

Germany and Vietnam both apply the civil law system to manage the country, so there will be similarities in the law between the two countries, along with the investment support policies of the German government for businesses Vietnamese businesses are approved in the Eurasian cooperation forums, creating advantages for Highlands Coffee to easily enter the German market

2.2.5 Environmental factors

Germany, along with the rest of the world, faces the threats of global warming and climate change Environmental pollution, together with rapid industrialization and use of fossil fuels has prompted the nation to adopt a policy of encouraging alternative energy sources The country is home to the world’s largest wind farms and wind turbine, as well

as the largest solar park, Solarkomplex Senftenberg Germany is working its way towards sustainable resource utilization and plays an important role in international climate cooperation

Protecting the environment is a German culture

quote from Ms Jutta Frasch, the ambassador of the Federal Republic of Germany speaking at

the 2014 world environment conference

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