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Franchise In the restaurant and cuisine model, Franchise is a form of franchising by a company or brand to a certain individual or organization who wants to sell products or services fro

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES – INFORMATION TECHNOLOGIES DEPARTMENT OF INTERNATIONAL

BUSINESS ADMINISTRATION

-*** -FINAL REPORT EXAMPLE

UNDERSTAND BUSINESS

Đinh Thị Trang Kiều – MSSV: 20DH121422 Phạm Nhật Hoàng – MSSV: 20DH121504 Dương Thị Kim Thùy – MSSV: 20DH120880 Nguyễn Thị Thanh An – MSSV: 20DH121621 Nguyễn Đặng Tường Vy – MSSV: 20DH120732 Class: KQ2002

Major: International Business Administration Lecturer: Biện Thị Bắc Hà

HCM, 12/2020

Question 1 Franchise 3

Question 2 IPO 4

Question 3 First mover 5

Question 4 GDP and GNP 6

Question 5.Multinational company 7

Question 6 Vietnam joined the WTO (World Trade Organization) 9

Question 7 M and A 11

Question 1 Franchise

In the restaurant and cuisine model, Franchise is a form of franchising by a company or brand to a certain individual or organization who wants to sell products or services from that brand within a certain period, in a specific area but subject to control and compliance with the rules set by that brand Franchising includes franchisors and franchisees In which, the licensing business is called the franchisor and the individual, the business that buys the right to use the trademark is called the franchising partner The franchisor allows the franchisee to use the brand, the technique, and the way of organizing the business model in a specified period as agreed And the investment costs

in human resources and facilities must be covered by the brand buyer

There are four types of franchising The first is a comprehensive business model, a strict franchise structure with requirements from both sides Four basic types of products franchisors need to offer, including know-how, products, and services, brand identity system, system of operating processes, controls, marketing, advertising, Secondly, the business model is not comprehensive In this model, the management rules do not follow

a certain pattern, including the following popular forms: Product distribution franchise, Marketing franchise, a Brand franchise Thirdly, the franchisor participates in the management, in addition to the brand and model, the franchisor also provides the manager and operator for the franchisee, the franchisor only needs to spend money and the management stage system operation will be performed by the franchisor Finally, franchising involves capital investment The franchisor has the right to contribute capital with a small percentage to directly control the system or participate in the Board of Directors of that company So what are the benefits of participating in that franchise model? The first is reaching out to the franchise's customers The second is to directly guide the business process and strategy Third, franchisors are provided with raw materials at preferential prices to reduce production costs and increase profits Besides, there are disadvantages when using the franchise model, that is: the franchisee is

developing another person's brand, so it must be under their control and take the same risk when the franchisor has problems deals in the business

For example, Jollibee was established in the Philippines in 1978 In 2005, the Jollibee store appeared for the first time in Vietnam The show now has more than 100 stores across the country of Vietnam The cost of Jollibee trademark rights ranges from 4.5 to 5 billion VND Thereby, Jollibee will expand the brand, simplify diversity, and receive monthly from franchisees in the Vietnamese market Besides, Jollibee entering the Vietnam market will have difficulty in competing with famous brands such as KFC, Lotteria, …

Question 2 IPO

An IPO is the first public offering of securities and is also the first time the company welcomes securities widely so that everyone can buy their shares after a public offering, the company will become a public company The main purpose of IPO activities is to attract public interest, expand investment capital, add general and long-term funding channels, expand the scope of operations, improve brand name and reduce the debt from the bank Besides, IPO is also a channel for shareholders or initial investors to divest and take profits after a long period of investment The necessary conditions to conduct an IPO: companies are required to operate with profits, not to lose money before the time to register for share registration Secondly, the minimum charter capital at the time of IPO registration

is 10 billion VND, the third is that all plans to use by the company must be feasible and reasonable, and meaningful to be approved by the Board of Directors Besides, there are also several procedures and methods necessary to participate in an IPO including the following procedures: an application for an IPO, then a notarized copy, a business registration license, following the notarized copy of the company incorporation license, followed by the shareholders' meeting announcement on the

sale of shares, the next is the company's charter, and finally the detailed financial report with the business performance of the company for the past 2 years (most recent) Moreover, companies need to learn how to sell and organize IPO auctions,

at businesses, at intermediaries, securities companies, and stock exchanges are 3 ways to auction IPO , through the way of offering: Ensuring commitment, highest responsibility, self-publishing, offering through the media, internet, radio,… An IPO will also face certain risks, and companies need to carefully understand the risks of an IPO, and the company is bound to understand and deal with the following risks: all members of the board of directors will have to increase their accountability when publicly issuing shares Secondly, the cost of getting shares to the floor is quite high, if mistakes easily lose management control or things Third,

to operate on an IPO is important to comply with the policies of the state and the government and sometimes influence the development policy of the company, and the last thing is facing pressure to maintain the growth rate of the IPO, as well as regularly announcing the company's performance to shareholders

Question 3 First mover

First mover definition: First mover or company is the first to develop services and market new products with a competitive advantage in the marketplace The first mover has many advantages Firstly, being the first to reach consumers should have a strong impression on them leading to brand recognition, gaining market share, and a good position in the market Next, having control resources are scarce Next, the leader can enjoy high buyer’s conversion costs if the consumer moves to a new brand Next, first-mover or creator of consumer products Consumers, therefore, know their preferences well so they are trusted and loyal Finally, the advantage of scale especially the advantage associated with manufacturing or technology-based products An experienced first mover in education should establish a cost-effective means of production or distribution when competing with other firms Besides the

advantage, the first mover has many disadvantages For the high-risk, high failure rate Next, the second go-back can copy either from the mistakes of the leader to correct and improve the product better leading to market share The first mover has even become strong by surpassing the pioneer in the development skills and can rob the first mover of many customers Next, the first mover must create demand in the market by spending an amount of money promoting the product Finally, if an industry constantly changes in technology, the first mover can negatively impact the company’s operations In this case, the latter will have an advantage because of using the latest technology First mover example: Coca-Cola (Coke) is a manufacturer that first started selling its products to the public in 1886, received the love and interest of consumers It was not until 1898 Pepsi was introduced to the market, while coke sold more than one million gallons per year For years Pepsi tried its best to catch up with coke, but they could not catch up because coke was the first mover who held many advantages

Question 4 GDP and GNP

GDP stands for Gross domestic product, gross domestic product, is understood as the total value from the pharmaceutical economic sectors created on the territory of that country in a certain period of time

GNP stands for Gross national product, which is an economic index that measures a country's economic development through the value of services and final products produced by all citizens of that country in the most specific time

The calculation of a country's GDP and GNP "GDP = C + I + G + NX" and "GNP =

C + I + G (X-M) + NR" where C is expressed as total household expenditure, G is

government spending on education, health, security, transportation, policy I is the amount an investor can invest to buy raw materials to pay business costs, NX is the net import of exports, X is exported M is imported, NR is the net income of foreign goods and services Compare similarities and differences of GDP and GNP Similar,

this is a popular concept used around the world, an indicator of a country's economic development and used in macroeconomics and has definite formulas The first difference is that GDP is the output of wealth created in a country, high GDP indicates

a strong economy but it is only a creator of wealth And GNP is the output of wealth created in a year, if the GNP of a country is high then it is rich Second, the formula for calculating GDP is total consumption GDP = C + I + G + NX The formula for

calculating GNP is the gross national product GNP = C + I + G + (X - M) + NR For

example, to make it easier to imagine, Samsung Japan Company opens a branch and does business in the territory of Vietnam, earning 10 billion USD a year At that time, Vietnam's GDP was calculated for their country was 10 billion USD, but in fact, they brought it back to Japan to get the GNP of Japan

Question 5 Multinational company and Transnational companies

MNC (Multinational corporation) is an enterprise that produces or provides services in at least two or more countries it maintains a one-country headquarters, coordinating the management of all offices and factories in different countries Usually, the big multinationals have a higher budget than many other countries And they will also have

an important impact on the world economy Multinational MNC companies divided into three categories: First Horizontal multinational companies: Supply and manufacture of similar or similar products in different countries (Including: McDonald, KFC, Texas )

Secondly, Vertical multinational enterprises:Branch, distribution facilities in one or more countries that manufacture products as production inputs in other countries

(Including: Adidas, Nike, ) Thirdly, Multinational companies in different directions:

There are production platforms in different countries that cooperate horizontally and vertically (Including: Microsoft) Transnational companies are limited or unlimited liability companies with an organizational structure consisting of a parent company, which is one of the companies whose capital owners belong to the parent company of a country according to the principle of control companies and branches through share

capital contribution However, the most fundamental factor leading to the creation of TNCs is the accumulation and concentration of production in terms of capital and technology in a number of monopolies Because of the rapid growth, the domestic consumption market gradually becomes narrower The necessary and objective is to expand the export of goods abroad and they have some outstanding features First,

Diversification:In order to satisfy the diverse needs of foreign target markets, TNCs are forced to diversify their products, each product group needs to be individualized to meet market demand Companies need to thoroughly grasp the principles of "thinking global,

acting locally", serving "global products, local tastes" Second, Standardization: TNCs define the needs and tastes of the market into standard products to satisfy the uniform needs of the largest number of customers in the market, especially the global market Third, Internationalization: This is a common feature of TNCs in the process of international opening It is also a process of making efforts to expand TNCs' business to several high-benefit countries across the region This feature is also known as multinationalization or regionalization including (the entire Asia-Pacific region or the whole of Europe…) Final, Globalization: This is one of the basic and prominent features

of TNCs in the international opening process The global market strategy, the global product strategy, the global price strategy are the activities of the Marketing - mix strategy of TNCs taking place at the global level Some typical companies for the international opening process are Coca Cola, Toyota, P&G…., and There are certain, advantages and disadvantages of establishing multinational companies Of course, multinationals offer a lot of benefits through The company's own advantages: If an enterprise has a monopoly advantage over competitors such as technology, single product, it can exploit and protect this advantage by directly controlling, not sharing management with manufacturers and distributors overseas The Location: Direct investment allows businesses to cut shipping costs and keep a firm hold on domestic market conditions, such as changes in consumer tastes and competitors' performance Characteristic of a country: Direct investment allows firms to avoid government restrictions on market penetration, such as tariffs, quotas, take advantage of labor and

other cheap inputs, as well as investment incentives, for example, cash subsidies Besides these benefits, companies also have to face difficulties in their own domestic workforce that will be relocated overseas Data from the Bureau of Labor Statistics (BLS) shows that between 2001 and 2010, the United States lost about 33% of its production (~ about 5.8 million jobs) An example is a multinational company in Vietnam: First, Unilever is known as specializes in manufacturing consumer goods such as cosmetics, laundry chemicals, shampoo, toothpaste; this is a British and Netherlands multinational company Unilever has many branches and subsidiaries and employs a workforce of about 200,000 people Next, Procter & Gamble (P&G) Procter & Gamble (P&G) is one of the examples

of famous multinational companies for famous cosmetic products in the world, with headquarters located in the United States Mr Emre Older is the General Director of P&G Vietnam Final, Honda was founded in 1996, Honda Vietnam Company was established based on a joint venture between 3 companies, Honda Motor Company of Japan, Asian Honda Motor Company of Thailand, and Agricultural Machinery and Machinery Corporation Vietnam produces 2 main products: motorcycles and cars

Question 6 Vietnam join the WTO (World Trade Organization)

Vietnam took part in the WTO on January 11, 2007, it has been 12 years since the application for joining the World Trade Organization to the bilateral negotiations with other countries, Vietnam has just completed the WTO accession process Over the past 10 years, Vietnam has achieved many positive and important results as a WTO member in such fields as economic growth, foreign investment attraction, the balance of import, and export Firstly, joining the WTO created a picture of a reformed Vietnam with global recognition We have confirmed our position as a large rice exporter in the world WTO is

a golden opportunity as it opened the door to global integration and global markets Although the Vietnamese economy has been affected by the global financial crisis (2008),

it can still maintain its average growth rate of 6.29% during the last 10 years as a WTO member Secondly, Vietnam’s goods will be fair competition with other competitors, Vietnam has gained the very first success in removing barriers to our agricultural production and consumer goods production From there, it will strengthen the economic

potentials through promoting export activities and attracting investment Thirdly, the most obvious change since Vietnam’s accession to the WTO is a sharp increase in FDI (Foreign Domestic Investment) attraction Nowadays, Vietnam has attracted more than 22.000 FDI projects with a total registered capital of 300 billion USD Besides that, to adapt to the new economy as joining the WTO, along with the rapid development of trade investment and technological innovation, Vietnam must transform its entire economic institutions, if not, facing strong competitors, Vietnamese businesses will get into trouble and are unprotected when trade disputes occur The level of economic development in Vietnam is not high, the economy is still in its formative stage and more than 60% population (2019) is still heavily dependent on agriculture During the period of economic concentration, subsidies still existed in some fields of finance, post, banking,

… Along with that, the Vietnamese legal system was still backward and not current This

is also a factor that makes Vietnam’s integration slow and Vietnam is not strong enough

to ensure commitments made by the WTO As the 150th member, the delay in joining the WTO has made it more difficult since neighboring countries such as China and Thailand are big competitors in the export competition The goal of both Vietnam and China are to export goods to Japan, the EU, the US, … China is an official member of the WTO on December 11, 2001 They will enjoy preferential tax regimes as exporting goods to these countries before Vietnam when both main export products are textiles, garments, ceramics, … Therefore, the trade competition becomes fiercer The WTO is a level playing field for all member countries, Vietnam needs to express the determination to participate in a level playing field with mutual respect in the negotiation process For major partners, Vietnam must convince them to understand Vietnam’s economy and get the concessions satisfactory However, in the agricultural sector, Vietnam must also compete with fiercely domestically with other countries We proceed to reduce tariffs and tie all tariff lines and dismantle non-tariff barriers within a certain period To join the WTO, Vietnam must strictly implement the commitment to meet the conditions of Member State, such as building codes: Commercial Law, the Investment Law, … or Ordinance Anti-dumping, Ordinance on Countervailing Subsidies, … However, the