Bài này sẽ giúp bạn dễ dàng vượt qua các kì thi giữa kì cấp Master hoặc University đều được nhé Các bạn có thể tham khảo thêm tài liệu và viết thêm cho hay nhé Đây là bài viết mình tự làm và ko hề copy từ bất cứ nguồn nào.
ASSIGNMENT SUBMISSION AND ASSESSMENT _ BMNV5103 NEW VENTURE DEVELOPMENT SEPTEMBER 2018 _ Teacher: DR BIBI Class: OUM K23C Name: Võ Ngọc Thanh Phương QUESTION According to current information on the market, milk tea fever is on the rise, the brand as Gong Cha or Share Tea - the brand has been very successful in the fastidious markets such as Europe and the opening of milk tea First in Vietnam, hundreds of people are willing to queue long waits and even, they limit the number of cups a person is buying Thus, the consumption of this beverage is very large In fact, the cost of a glass of milk tea today is about 30,000-60,000 VND, 2-3 times more than before, while the cost of raw materials for a glass of milk tea is not too high The cost is low in profit, so this may be the reason why "homeowners" choose to trade milk tea to start a business According to a report by Euromonitor, Vietnam's milk tea market is worth $ 282 million USD by 2016, an annual growth rate of 20% High growth has attracted many investors to jump into the market According to Lozi, a company that provides app sharing for dining experiences, more than 53% of respondents regularly drink milk tea once a week From the beginning of 2017 to the end of June, on average, every month in Hanoi, there are milk tea shops of the brand opened And based on the above analysis, we decided to open Homemade Milk Tea in Vietnam, and we believe that people will embrace this new brand as well as the name we have set for it Business description Homemade Milk Tea Co., Ltd, is a company specialized in trading products made from high quality tea of Thai Nguyen, called Homemade Milk Tea to the familiar, close, everything is our own hand, especially is the topping of milk tea Milk tea has been around for many years, but most of the raw materials for making milk tea are not clearly identified, causing many consumers to panic Today, Homemade Milk Tea wishes to serve the best teas for customers, as well as the name itself We wish Homemade Milk Tea can bring a quality product to consumers with clear origin of Vietnam Not only we bring quality products, we also bring a comfortable, quiet space to help customers relax after hours of study and work stress Core values Top quality: Ensure safety, hygiene and quality The use of safe, natural and hygienic ingredients is a top priority of Homemade Milk Tea The excellent taste of the drink is the next important goal we want to look forward to Page Professional and professional service: Homemade Milk Tea wishes to satisfy customers with the best professional and friendly service, always listening to the contribution of customers Trusted Brand: Based on two core platforms, Quality and Service, Homemade Milk Tea strives to build and maintain a trustworthy brand image in the eyes of customers Vision Become a premium brand milk tea in Vietnam with quality and prestige put on top Mission Continuing to promote the product quality, variety of Homemade Milk Tea brand in Vietnam market Slogan: "Good to the last drop!" Business location Homemade Milk Tea is located near the center of the city, at 100/12 Vo Van Tan, Ward 5, District 3, Ho Chi Minh City, near the University of Natural Sciences, location near the University and buildings The office also creates favorable conditions for Homemade Milk Tea to attract customers Due to its space is mainly for students and office staff, so it does not have to be located on the frontispiece, which saves space The running time of Homemade Milk Tea is from 8:00 am to 10:00 pm, divided into Shift, Shift 1: 8:00 to 14:00, Shift 2: 14: 00-22: 00, each shift equivalent to employees Design Model Page Picture 1st floor design of Homemade Milk Tea Picture 2st floor design of Homemade Milk Tea The design of the restaurant consists of two floors, the first floor is the area for customers to enjoy drinks milk tea with an area of 100m 2, second floor is 150m2, space for customer drink Page milk tea In the future, we intend for teaching English to communicate and rent for co-working space Both floors are fully equipped with air conditioning and high speed wifi Marketing Plan Implementing the 4P plan involves the following steps: - Product: Milk tea products are now sold in the market, and each milk tea has a relatively high price One of the things that makes a difference of Homemade Milk Tea is that milk tea is made from tea and milk, not like regular milk tea, made from unknown sources, which affects human health consumption Topping is also done by the manual, ensuring hygiene, not like the topping type made from toxic chemicals In addition, when the customer orders, the new employee begins to blanche in place, unlike the milkshake that is blended for the day, these are the salient features of the new product - Price: On the price of Homemade Milk Tea, the price of a cup with topping is 30,000 VND, which is relatively competitive with other milk tea shops, competitive price with a product Quality and health are probably the kind of drinks that are worth using Although pricing a product at a lower price than its competitors is not a new strategy, most Vietnamese still prefer quality products at discount prices rather than high-end products The high price, because Vietnam is still a developing country, so the number of people with low income is higher than that of high income people, so the application of this strategy is quite right - Promotion: Make some promotions like: Buy get for any product, or buy get for 2-3 weeks, 15-20% off on total bill Short promotion time will attract more visitors than long time In addition, Homemade Milk Tea will also apply the promotion for you to purchase online by supporting delivery charges The main promotional channel is still Facebook and Zalo, in addition to the store will hang Standee and poster in front of the door so customers can know and rush to use the promotion One of the most effective ways to advertise is to hire staff handed out flyers in front of the college entrance or at a third level close to the pub (it is estimated that 1,000 flyers will be delivered in the first month, continue broadcasting or not) According to each brochure, customers who come and bring their leaflets will receive a discount of 15% on any drink that is not included with the promotion at the restaurant, which will help customers to pay attention to promotions and introduce many friends to enjoy the incentives Page - Place: Homemade Milk Tea's main selling method is direct delivery In order to expand its market share, Homemade Milk Tea will cooperate with distributors such as Delivery Now, Grab, Vato People can use their products at school or at home and at working Sales Process Inside, • Prepare the plan: Our business product plan is still looking to expand our milk tea drinks We would like to make our own milk tea, from the raw materials of Vietnam to ensure the health and optimal price for the user • Approach: As one of the sales techniques aimed at knowing the main needs of the customer and assessing the customer, the sales person needs to understand the needs of the customer by asking the customer directly.The target audience we identify as students and office workers, most of these age groups will be in need of drinks at work, office meetings, exchanges and entertainment • Introduce Product: To introduce the product, the first thing is to understand the outstanding advantages of the product compared to other competitors Milk tea is the new drink of the shop, and the main advantage of this product is all made by hand, not enter raw materials of Page unknown origin Topping also we buy the powder to and cook in sufficient quantities in the day, the next day we will make a completely new material • Ordering and payment: After the customer selects the product, proceed to order quantity and payment at the cashier • Promotion for member and new customer: This is the after sales program that almost any business forms apply Especially, the business of eating is effective for both types of customers, as a loyal customer when buying more products will accumulate and enjoy incentives, is the promotion will attract to new customers first use the product Sale Tactic One of the most important strategies to help customers know new products is the combination of communication through Zalo, Facebook or traditional channels such as direct referrals When customers come to the shop and hang posters in front of the shop for people to know and come to use In addition, the promotion strategy is an important strategy to increase the number of customers of Homemade Milk Tea, the promotion strategy can be buy get or reduce from 15% -20% of the total bill paid when using milk tea Cooperate with other media channels such as Samsung Pay, Galaxy Gift, AirPay with the aim of increasing the market share, helping more people know about Homemade Milk Tea and save on marketing costs and increase the number of customers By co-operating with the above channels, Homemade Milk Tea will enjoy a 15% discount when milk tea drinks for customers using genuine Samsung phones or electronic applications, the promotion will not be cumulated with chapters Other And Samsung will print free Poster, Tent card for Homemade Milk Tea with video recording and running Facebook Ads for free, the cooperation will bring many benefits for Homemade Milk Tea in terms of communication The promotion only lasts 3-6 months to ensure the level of attractiveness and cost for Homemade Milk Tea when launching new drinks Operation plan Activities Prepare flour, milk, tea to make milk tea Outputs Ingredients Page Timeline 7:30 am – 8:00 am Clean and set the room, furniture and restrooms Run the water and electricity Milk tea shop become cleaner Ensure the operations run normally Milk tea shop has enough seats and more compact Arrange seating for the area Maintain the cleanliness and the tidiness of Homemade Milk Tea Check the amount of flour, milk and tea in every shift Count revenue of every shift Milk tea shop become cleaner No shortage of raw materials Daily turnover statistics 7:30 am – 8:00 am 7:30 am – 8:00 am 7:30 am – 8:00 am on every Saturday & Sunday Through the work process At the end of each shift 14:00 everyday 22:00 everyday Table Describe Operation Plan The employee’s duty: Employee should be one hour coming earlier to prepare themselves and have daily briefing Employees should leave Homemade Milk Tea one hour later to make final checking and brief the next shift Management team Homemade Milk Tea is organized and managed by the following members: - Mr.Hoang-CEO: With experience in business management, Mr Hoang is the CEO of Homemade Milk Tea Mr.Thao graduated from Business Administration and worked for wellknown Finance companies He worked in 2-3 coffee shops before setting up Homemade Milk Tea He is a person who is eager to find the difference in the market, always want to lead the trend, try to achieve his own plans With Homemade Milk Tea, he is looking forward to more development of the field of activity As a CEO, he is the one who directly brings out the plan to realize the vision and mission of the company, responsible for the planning and direction of the company He is the person who directs the design and approval of development issues, financial policies and co-operation - Ms.Tram-BOC: With 15 years experience in consulting, Ms.Tram is an executive consultant for many F & B projects such as Domino Pizza, Pizza Hut, Coffee House, Urban Station As a BOC, she hopes to develop Homemade Milk Tea as a really useful model for young people, alongside executive advice For the CEO, Ms.Tram will be the CEO's representative and have the right to directly approve the co-operation contracts when the CEO goes to work, and Ms.Tram is Page also the one who can contribute to the operation and monitoring Every activity on behalf of the CEO and all financial decisions of the BOC must be approved by the CEO - Mr.Duy-CFO: In the field of corporate finance, Mr.Duy has over 15 years of experience in financial analysis, cash flow management and financial planning for a project In addition, he is an expert in the use of financial instruments to help maximize the efficiency of capital use in companies and businesses, thereby saving money on business operations Businesses are evaluated ineffective through analytical and computational tools - Ms.Phuong-CMO: Although she has been active in Marketing for over years, she has extensive experience in product development, marketing communications, market research, customer care and distribution Distribution channels as well as sales management Although she is quite young, she is constantly exploring and learning the skills of managing marketing strategies She directly plans to promote her company's products as well as monitor and develop many strategies attract customers of the company Company structure CEO Mr.Hoang CFO CMO BOC Mr.Duy Ms.Phuong Ms.Tram Employees Structure diagram of the management of Homemade Milk Tea Personnel Requirements: Common labor, students work more agile, know how to observe customers, fun Priority for women ages 18-25 Page + Service staff follow the shift and are classified by area, flexible view and customer division of work + Drink the drink to the customer + Cleaning when shift and shift shift + Resolve all requests of guests + Follow the assignment of management + Need to create a good impression with customers and work under pressure + Have the spirit of progress and constantly learn Neat, clean + The expected salary for each employee is 3,000,000 VND / month Training and coaching staff: The Milk Tea environment is always busy, so the employee training program is held on the first two days before the opening of the restaurant and the first day when the employee enters, in which the previous manager is given away Study a short course of few days about referring back to your staff During the work the staff are trained on-site, the manager will remind, instruct and discipline after the working time of the day It can be said that the training and development of personnel is difficult to focus on professional training because the personnel in the coffee and milk tea field is very changing many people choose the serving is a temporary job Therefore, if we focus on professional training too, the cost problem is very high, very costly but effective is not high because they can ask for leave of absence at any time Therefore, the training will be conducted as follows: As for service man, the training will take place 1-2 days before the job, the requirements in the job process mainly focus on issues such as: Page Temporary Investment Total current assets 300,000,000 FIXED ASSETS Build up and decorate milk tea shop Facility Tool to make milk tea Fire safety Uniform, banner, leaflet Depreciation fixed assets 120,000,000 Long-term investments Total Fixed Assets 120,000,000 Total Assets 150,000,000 LIABILITIES Accounts payable Total liabilities SHAREHOLDERS' EQUITY Capital stock 50,000,000 Retained earnings 100,000,000 Total shareholders’ equity 150,000,000 Total Liabilities and 150,000,000 shareholders’ equity Table Pro Forma Balance Sheet 40,000,000 440,000,000 20,000,000 520,000,000 550,000,000 100,000,000 - 150,000,000 286,000,000 24,000,000 40,000,000 50,000,000 429,000,000 36,000,000 60,000,000 75,000,000 500,000,000 940,000,000 120,000,000 120,000,000 240,000,000 760,000,000 0 0 0 50,000,000 840,000,000 940,000,000 940,000,000 50,000,000 710,000,000 760,000,000 760,000,000 50,000,000 2,346,000,000 2,396,000,000 2,396,000,000 1,096,000,000 1,846,000,000 2,396,000,000 From table Pro Forma Balance Sheet we can see the investment cost for the facilities is relatively appropriate Pro Forma Cash Flow End year 2019 End year 2020 Cash Recept Cash sales 1,896,000,000 6,302,400,000 Cash Payment Purchase 1,836,000,000 5,312,000,000 End Balance 60,000,000 90,400,000 Table Table of Pro Forma Cash Flow End year 2021 End year 2022 8,016,000,000 15,648,000,000 5,100,000,000 1,572,400,000 11,326,000,000 2,106,000,000 From Table of Pro Forma Cash Flow we see that It’s estimated that the estimated profit of each restaurant is increasing every year It shows that if investors invest capital, the time for capital recovery will be 3-4 years, and the time for capital recovery is relatively appropriate Project Milestone Project Amount of capital needed 2019 Page 14 Revenue Increasing variety of milk tea of the shop but still ensure the quality criteria Rent nd floor every evening for 2,4,6 to teach English communication - Format the brand by opening more Homemade milk tea with the same model - Enhanced online and offline marketing to increase the number of customers -Two more types of milk tea are chocolate and matcha tea, in which chocolate and matcha will be imported directly from Japan and have clear origin to ensure the health of consumers, unlike incense powder whether imported from China -Open Homemade Milk Tea with the same model - The surface is closer to the center to compete with the opponent - Enhanced Co-Working Space - Drinks increased (10 million VND / month, inferred increased 120 million VND / year) - Job placement services are not for profit and not cost investment - Facilities such as tables, chairs are available so there is no investment cost (the rent is 60,000,000 per year) 2020 -The cost of opening Homemade Milk Tea shops is estimated at 332 million VND / tael, totaling 664 million VND - Online and offline marketing costs are estimated at 40 million / quarter => The total cost is 704 million VND 2021 -The cost of Matcha and Chocolate is 10 million VND / month and a total of 120 million VND / year => The total cost is 120 million VND 2022 - The cost of opening more cafes is estimated at 1,026,000,000 VND - Strengthening facilities to open Co-Working Space is estimated at VND 100 million => The total cost is 1,126,000,000 VND Table Project Milestone Critical risks Page 15 - Pre-tax revenue achieved in 2019 from drinking water and land rental of 1,896,000,000 VND (of which the revenue of drinking water is only VND 1,336 million / year, the turnover is calculated upon the launch of new products Profit gained mainly from English language teaching space rental) Make a profit of 60 million VND in 2019 - The pre-tax revenue achieved in 2020 (assuming 20% profit for the first Homemade Milk Tea and 10% for the next two Homemade Milk Tea) is 6,302,400,000 VND The profit in 2020 is 90,400,000 VND - The profit before tax achieved in 2021 (assuming the profit level of each shop is 30%) is 8,016,000,000 VND - Profit in 2021 reached 1,896,000,000 VND - The pre-tax revenue achieved in 2022 (assuming 30% for each of the previous stores and the remaining for only 20%) is 15,648,000,000 VND - Profit before tax is estimated at VND 2,282,000,000 - The lease is at risk of being leased to the landlord when someone wants to rent at a higher price - Coffee and milk tea appear more and more in the market leading to higher competitiveness, the market share for a startup shop is not easy - The monthly fee is 82 million VND, if not meet the expected number of customers, we can suffer a loss of 82 million per month Therefore to maintain at least months we need reserve capital for 3-4 months: 82,000,000 * = 328 million VND - If after 3-4 months turnover is not enough breakeven: the best solution is to sell assets liquidation and transfer Assuming that the liquidation is equal to 50% of the initial asset value, the recoverable amount is 125 million VND and the accumulated loss remaining after months is VND 328 million - 125 million = 203 million VND Recap On the human side, with a team of experienced managers in the fields of economics, human resources, management, marketing, Homemade Milk Tea believes that it will be able to train the best customer service skills as well as bring about Best quality, slogan like: "Good to the last drop!" On the competition, milk tea is a popular drink today, and when deciding to start a business in this field, we accept confrontation with domestic and foreign competitors And we believe that the products we hand-made will guarantee quality as well as safe hygiene, with more favorable prices than other milk tea shops will be a remarkable product About Risk, almost any business plan will have risk of inventory, financial as well as competitive products as well as the risk of business premises being recovered So, to limit the risks, we will set out an overview backup plan, during the implementation of the business plan, we will also try to monitor, regularly check the situation so that The risk may also be reduced QUESTION a Anh Duong Trade Service Co., Ltd is a franchise company of Trung Nguyen Group, the business form is Trung Nguyen coffee shop The company was established in 2016 with the equity of VND billion Coffee is an indispensable drink in every country, and Trung Page 16 Nguyen is one of the best known coffee producing and distributing brands in Vietnam, present in more than 60 countries around the world Because of this, Anh Duong Trade Service Co., Ltd decided to choose the franchise form of Trung Nguyen Coffee to business Business Anh Duong Trade Service Co., Ltd deals in products of Trung Nguyen Group, mainly coffee drinks used on the spot and brought back, and also distributed coffee to a number of retail agents in the area of Ho Chi Minh City Typical business: Whole coffee roasted ground such as Weasel mink coffee, Legendee coffee mink, Creative Vision Became the most prominent franchise company and distributor of quality products of Trung Nguyen Group, expanding market share to many areas in Vietnam Core values and belief values Core values - Expect to expand market share for Trung Nguyen coffee - Create value and sustainable development Belief values - Coffee makes the world better - Coffee is the energy of the knowledge economy Mission Continuing to promote the top brand and quality by giving coffee enthusiasts inspiration and creative pride in the style of Trung Nguyen Vietnamese culture Slogan: "Inspired creativity" Page 17 Location and time of operation: Location: Company address at 69 Ly Chinh Thang street, Ward 6, District 3, Ho Chi Minh City and Trung Nguyen coffee shop located in front of Ly Chinh Thang street, 70 Ly Chinh Thang street 6, District 3, Ho Chi Minh City, next to the University of Natural Sciences and the whole office Currently, the franchise of Trung Nguyen coffee grows more and more, so the premises of the shop need to be located in the prime location, frontispiece and nearly the center of the city to be more competitive Operation time: 7:00 am - 10:00 pm Human Currently, the company has more than 50 employees working in the office, management team of Anh Duong company who also have experience in the field of economics, marketing and finance The staff of Trung Nguyen Group always create the best working conditions so that they can learn and promote their dedication with the spirit of "Commitment - Responsibility - Honor" The staff at the bar is provided by the Trung Nguyen Group during the concession agreement The concept of franchising Franchise means a commercial or business activity whereby the franchisor permits and requests the franchisees to carry out the purchase and sale of goods or provide services on their own according to the following conditions: Services provided by the franchisor and associated with trademarks, trade names, trade secrets, business slogans, business logos, advertising of the franchisor; The franchisor has the right to control and assist the franchisee in running the business Franchise is a model widely used in many industries, from food to retail, service Any industry with intellectual property, having an established franchise system, can franchise, even for the booming e-commerce industry In Vietnam, the franchise is primarily based on a franchise model (or franchise) when an international brand empowers a local business to develop its branch network across the territory in the form of self-investment and business, also known as chain development Page 18 SWOT analysis Strength: The coffee shop near the city center and the ground floor will attract more customers to use The space is clean, quiet, full of amenities, and high-speed WIFI connection When franchising the business, Anh Duong Co., Ltd will have coffee products of Trung Nguyen variety and quality is strictly checked, accompanied by a staff of professional training in serving and answering customer inquiries The coffee material is always sufficiently satisfied by Trung Nguyen Group, not afraid to lack coffee to sell to customers Quality products meet the taste of Vietnamese people, Trung Nguyen has confirmed the quality of its instant coffee and is verified by consumers Moreover, the coffee is made from coffee beans of the Central Highlands Basalt is suitable for enjoying the coffee of the Vietnamese At the same time quickly grasp the needs of customers and launched many coffee products with many different flavors, bold taste Vietnamese Because Trung Nguyen coffee is known to many people is the brand of safe coffee, quality of Vietnam, so when the franchise opened, many customers will believe Technological Technology: Trung Nguyen has paid great attention to the research and selection of modern coffee processing technologies from leading technology countries such as Germany, Denmark, Italy and in association with consultants Leading international to choose the best technology Therefore, when receiving Trung Nguyen's products, it is always liked and trusted by Vietnamese customers Weakness Trung Nguyen's coffee products not have a clear difference in quality compared to their competitors in the same industry such as Nescafe or Vinacafe Page 19 The cost of franchising is relatively high as Trung Nguyen Group controls revenues from control, management and training of service personnel, while individual services can still perform on their own OK Higher prices than other air-conditioned cafes and promotions are still not much attractive The competition of franchise brands Trung Nguyen coffee leads to saturation in the choice of customers, the number of customers in the area will be reduced if there are too many Trung Nguyen coffee appeared The continuous change of signage systems, colors, designs and packaging has made the operation of the capital system so slow and embarrassing, and as a result, the market has found many other forms of identification Each other makes it impossible for customers to know what is Trung Nguyen, where is fake, where is Trung Nguyen franchise Opportunity Coffee is protected by the state in terms of benefits and trademarks, the cost of products and conditions for export to foreign countries, the state also established coffee associations to run and develop coffee In order to understand the policies of the Party, to protect together against monopoly acts, market disputes that infringe upon the interests of enterprises and protect the interests of Vietnamese coffee in the market WTO accession, the coffee industry in Vietnam has a new move especially Trung Nguyen coffee is known not only in the country but also in foreign markets, creating more development orientation Challenge At present, the Vietnamese economy is unstable with the increase of the growth rate, accompanied by the increase in inflation, the devaluation of the currency causing difficulties for the business activities of Trung Nguyen, especially in purchasing activities resources Many of the competitors in the industry appear as Starbuck, Passio Coffee, Urban Station, Viva Star, Cộng Coffee, Coffee, Black Ice Coffee has made the market of Trung Nguyen greatly reduced Page 20 Milk tea is becoming increasingly popular among young people, and dairy teas are opening up in the downtown area, leading to a decline in the market share of coffee shops According to a report by Euromonitor, Vietnam's milk tea market is worth $ 282 million USD by 2016, an annual growth rate of 20% According to Lozi, a company that provides app sharing for dining experiences, more than 53% of respondents regularly drink milk tea once a week From the beginning of 2017 to the end of June, on average, every month in Hanoi, there are milk tea shops of the brand opened b Advantages and disadvantages of franchising Trung Nguyen coffee Advantages For franchisees Owning the trademark of Trung Nguyen Group is well-known, so the number of loyal customers will also grow faster than non-branded cafes Receive business secrect and receive regular support from Trung Nguyen Group Reduce the high risk of product quality when setting up a coffee shop For Trung Nguyen Group Trung Nguyen Group will expand its market share in the coffee chain without having to spend much on space As a result, Trung Nguyen's products will be consumed more and less inventory For Customer Customers will be assured of the quality of goods and services Instead of pointing to a place to shop or use the service, customers can choose the most convenient location, the nearest Disadvantages For franchisees Page 21 The investment franchise business is relatively large (Currently the franchise of Trung Nguyen coffee is priced at billion VND including brand name, product and process of preparation, staff management) Lack of creative freedom: You not have a voice in the menu, decorations, or signage of the cafe If you have a certain theme or idea in mind, it may not match the franchise and not be used, you will not be able to promote creativity in business Compulsory purchase of raw materials, equipment and products, promotions in accordance with the provisions of Trung Nguyen Group The number of franchise outlets in Trung Nguyen can increase rapidly in the same area, leading to high competition When the contract expires, there is no guarantee the contract will continue to be extended The franchisor may change the terms and conditions of the contract at the time of renewal, increase the cost of the franchise, impose new restrictions or refuse to renew the contract For Trung Nguyen Group Too many franchise cafes are opening up, which leads to maintaining control becomes difficult Disagreements between franchisees and the Trung Nguyen Group may occur, including legal disputes Franchise companies can take advantage of franchise knowledge and become competitors in the future c Issues and Challenges of Franchising in Vietnam Vietnam is one of the developing countries, so the development of Asia and Europe Franchising is currently a popular strategy chosen by companies for expanding international investment and business At the same time, Vietnam is also recognized as a fertile market for retail development and franchising The Vietnamese market is full of potential factors such as abundant consumer demand, rising incomes and a younger generation of young consumers These factors provide optimistic prospects for the retail sector as well as franchise development and could double in the next years Not only exploit and exploit the market, but also there are many other factors that Page 22 make franchise become increasingly popular strategy companies choose to expand investment, business in the international market At present, franchise business in Vietnam appears more and more, especially in the field of food, milk tea and coffee franchise such as: Royal tea, Toco Toco, Gongcha, Highland Coffee, Urban Station , Toocha Milktea we found that most franchise products came from foreign brands that led to market encroachment The products of Vietnam are only a few brands such as Thuc Coffee, Black Coffee Coffee, Trung Nguyen Coffee, which shows that the products of Vietnam have lost its roots in the Vietnam market Most franchisees want to bring foreign products back to Vietnam but are unaware that the continued franchising of foreign products means that they are expanding their market share Foreigners in Vietnam, while Vietnam is still a country with low franchisees both domestic and foreign, this is a problem that businesses not recognize, but only for personal benefit Understanding of franchising is very limited, theoretical as well as practical issues about franchising are still a relatively new field in Vietnam This is also an inevitable consequence as we have just entered the market economy and new approach to franchising The first sign is that in our education system there is hardly any training institute that gives this field formal instruction as a module or intensive subject And the concept of franchising has just been "legalized" in 2006 So the knowledge of franchising is new Many Vietnamese businesses have the potential for commercial franchising, but most of them not have knowledge of the field Therefore, the fear and inability to implement this form will be a great obstacle to the development of enterprises In fact, franchise business development is only one of many directions for business development Therefore, many businesses are not interested in this form On the other hand, many enterprises, after the expiry of the franchise contract, have not renewed their licenses but switched to building their own brands and doing business in the same field This shows that when the brand is not really strong contributing to the success of the franchise will be difficult to develop d Steps to Successfully Establishing a Franchise Business Understanding the business from the inside out Page 23 The direction given to the franchisor must be accurate Business owners are often accustomed to running their company instinctively, and so it may be difficult for them to list the key terms and conditions of the business on daily The franchisee will not be free to rectify these terms, and at the same time he or she will need to be instructed specifically and in detail about the operation of the business Therefore, each step of the process must be listed fully and accurately One of the most important things to is to have expertise in product marketing, website design and product introduction Ensure the source of goods for the partner is always full Understanding the legal issues Franchise is a relatively complex business relationship There are several legal aspects of franchising that require the counsel of a professional lawyer However, we need to learn to understand the legal issues in order to take reasonable action in relation to the franchisee, as well as to understand how to protect the brand and the interests of other partners Steps in the franchise process, from negotiation to signing, should be in the right order and legal for both parties It is not necessary to learn all the rules before signing franchise Selecting the right franchisee If someone is willing to get franchise from the company, that means they will represent our brand Make sure the company always has a system to select and help the franchisee in the right direction Enthusiasm of the brand is a very good thing to consider franchising But passion without the power and the desire to make a quick profit in a short-term strategy will be the wrong object to delegate the brand to them Setting appropriate limits When giving a franchise to a partner with very specific instructions on how to operate, they should give them a certain freedom This flexible space allows them to come up with ideas and ways to better serve local customers, but keep that freedom within the framework Different franchise companies have different restrictions on the franchisee They always struggled to preserve the brand identity and the sense of personal ownership, the boss feeling of the franchisee Consequently, creating a proper balance of work is the art of the franchisor Page 24 Signing the cooperation contract between the two parties The validity of the contract will be agreed upon by the two parties and, at the end of the contract period, the two sides will discuss whether or not to continue the cooperation, all terms of cooperation must be discussed and clearly stated in the contract to avoid conflict between the two parties in the process of cooperation Helping franchisees When beginning to develop a franchise business, the franchisor should transfer the day-to-day operations to other departments and focus on regular contact with franchisees and establish franchisees Methods to support them promptly Once the franchisee starts their business under your brand, they have put their hopes and efforts to operate it successfully, so the franchisor has the responsibility to provide them with the means Legal, timely support to avoid the risk and failure The more time we spend with the franchisee, the better we know how to lead them to success Test the solution throughout the operation When starting a franchise chain, any franchisee expects franchisees to achieve high results And to achieve that, the franchise business must regularly check, put the staff secretly into each store to check and accept the results Any store that fails to comply with the business process has to take measures to remind or terminate the contract if the violation is not acceptable For good sales businesses, they will have their own preferences or reduce the cost of raw materials to create favorable conditions for franchisees In addition, businesses need to regularly train employee training to increase the professionalism in the skills and attitudes of each store Not only we want franchisees to succeed, I also want franchisees to find the right franchise partner So, I propose a few basic steps for franchisees: Assessing yourself Evaluating yourself is a very important step, assessing what you want to when you start your business will help you navigate your way If you always want to be creative and independent, franchising is not a viable plan If you want to stand under the banner of a successful business, Page 25 take advantage of all of their advantages to increase your chances of success, then you can learn the next step to opening a franchise business Selecting the brand In order to have sufficient information but not overloaded, there should be no more than branches and no more than to companies per sector for evaluation Also, not limit your choices by "framing" the viewpoint of just looking for a local franchise company or a franchising company owned by a foreign company Both types of companies have their own pros and cons, be brave discover Learn about the franchise company When we want to franchise in a certain company, we need to capture some of the following factors: Information about the industry and its role in the industry Understand the concepts of this industry Know what to to succeed in this business Identify the culture's sympathy with the organization Understand the values of the organization Determine the competitive environment and positioning of the franchise company Understand the help and training of franchisees Also, we also need to consider the franchisor with good knowledge of the industry? What is the competitive edge of the company? Does the representative have the ability to manage and resolve the most common problems of a store? Learn about other people's experiences Talk to: Page 26 Two to four successful franchisees understand their experiences and, more importantly, what makes them successful; One to two franchisees are struggling to understand that they are not doing anything (always remember that they may not admit that they are not following the system described by the franchisor) Choosing a business location Selecting locations is a very important factor for any retail business plan The location chosen must be both convenient and appropriate for the financial capacity of the business plan Negotiate with the franchisor to find out their location strategy in the future to avoid unnecessary competition with other franchisees Discuss with the franchise company Compare all the information you have with the record or plan you plan for the brand you plan to choose, and discuss it with the business Key elements to discuss include: personal factors, business factors, financial factors Sign to the contract Contracts are usually one direction in favor of a franchise company The best thing is that you need expert advice in this field to understand and negotiate The main things to note about franchise contracts are: franchise area, initial franchise fee, monthly franchise fee, termination clauses Recruit and participate in training Once you sign the franchise agreement you are officially committed to the franchisor You also need to hire the initial staff and commit to your business You and your staff need to be trained by a franchise company This is a very important stage for starting a successful business Open the store You start your journey Franchising is always the least risky way to start a business, but we have to commit the mind, mind and time to the business for at least the first two years Page 27 REFERENCE https://articles.bplans.com/what-is-a-franchise/ https://www.franchise.org/what-is-a-franchise http://cafebiz.vn/cau-chuyen-kinh-doanh/ben-canh-ca-phe-trung-nguyen-con-co-gi20151212115456571.chn https://kinhdoanh.vnexpress.net/tin-tuc/doanh-nghiep/doc-chieu-nhuong-quyen-thuong-hieutrung-nguyen-2665110.html https://doanhnhansaigon.vn/chuyen-lam-an/tong-quan-ve-nhuong-quyen-thuong-hieu-tai-vietnam-1067977.html https://www.kiotviet.vn/cac-buoc-de-mo-mot-cua-hang-nhuong-quyen/ Page 28