TOPIC INTERNATIONAL BUSINESS STRATEGY FOR 3 YEARS (2023 2025) HIGHLANDS COFFEE IN THE NETHERLANDS

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING FINAL ASSIGNMENT TOPIC: INTERNATIONAL BUSINESS STRATEGY FOR 3 YEARS 2023-2025 HIGHLANDS COFFEE IN THE NETHERLANDS Implementation group: P

THE FINANCIAL UNIVERSITY OF FINANCE – MARKETING

FINAL ASSIGNMENT

TOPIC: INTERNATIONAL BUSINESS STRATEGY FOR 3 YEARS (2023-2025) HIGHLANDS COFFEE IN THE NETHERLANDS

Implementation group:

PHAM BA QUOC (Student ID: 1921005179)

LE PHUNG TUE MAN (Student ID:1921005113)HOANG VIET TAN (Student ID:1921005193)

Lecturer/Tutor/Facilitator: HUYNH THI THU SUONG

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Table of Contents

I Executive Summary 5

1 The importance of building a business strategy 5

2 Objectives of the report 5

II Introduce 6

1 Overview of Highlands Coffee company 6

2 Highlands Coffee developed in the Netherlands 7

III Highlands Coffee PESTLE MODEL IN THE Netherland Market 8

1 Political problems 8

1.1 Political system 8

1.2 Political stability 8

1.3 Political relations with Vietnam 9

2 Economic problems 9

2.1 Product Consumption 9

2.2 Average income 10

2.3 Economic relationship with Vietnam 11

3 Social issues 11

3.1 Population size 11

3.2 People's attitude to the product 11

4 Technology problem 11

4.1 Ecommerce 11

4.2 Intellectual property rights 12

5 Legal issue 12

5.1 Current legal system 12

5.2 Principles of cooperation with Vietnam 12

6 Ethical issues 12

6.1 Corruption rate 12

6.2 People's views on environmental protection 12

IV AUDITING THE BUSINESS MARKET IN THE NETHERLANDS 13

1 Market potential 13

2 The level of competition 13

3, Political and legal environment 13

4 Social and cultural influences 14

V PLAN FOR BUILDING INTERNATIONAL BUSINESS STRATEGY IN THE Netherlands IN 3 YEARS (2023 - 2025) 15

1 SWOT matrix analysis of Highlands Coffee in the Netherlands 15

2 Formulate a strategy within 3 years (2023 - 2025) 15

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2.1 Market penetration strategy 16

2.2 Market development strategy 16

2.3 Product development strategy 16

3 Choose the method of market entry 17

3.1 For franchisors 17

3.2 For franchisees 17

4 Highlands Coffee's available product lines 18

4.1 Phindi - new generation coffee 18

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4.2 Espresso 18

4.3 Freeze no coffee 19

4.4 Tea 19

4.5 Cake 19

5 Product pricing of Highland Coffe in the Netherlands 20

5.1 Cost-based pricing 20

5.2.Competitor pricing 20

6 Distribution method of Highlands Coffee in the Netherlands 21

6.1 Target market 21

6.2 Positioning Strategy (Quality Positioning) 21

6.3 Set up distribution channels 21

7 Promotional activities may apply 22

8 Estimate the budget needed for the plan 22

VI CONCLUSION 23

VII REFERENCES 24

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Member scorecard:

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I EXECUTIVE SUMMARY

1 The importance of building a business strategy

Business activities of enterprises are always influenced by external and internal factors.Therefore, building a business strategy helps businesses orient their operations in the future throughanalyzing and forecasting the business environment Building a business strategy helps businesses

be both flexible and proactive to adapt to market fluctuations, while also ensuring that businessesoperate and develop in the right direction That can help businesses strive to improve their position

in the market

2 Objectives of the report

The goal of building a business strategy is to expand the Highlands Coffee market to all over theworld Specifically here is the Netherlands, to be able to develop product brands Besides,expanding the scale of the business to be able to reach more customers in order to increase the profitearned from the product

II INTRODUCE

1 Overview of Highlands Coffee company

Highlands Coffee is a very familiar name for those who are passionate about coffee or fast food

in Vietnam, especially young people or those who have worked Highlands Coffee was founded in

1999 by an overseas Vietnamese businessman named David Thai with a strong love for hishomeland, ready to leave his family in the US to return to Vietnam to set up a business

Figure 1: Founder of Highlands Coffee

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Mr David Thai is the founder of Highlands Coffee Group Mr David Thai was born and raised

in Vietnam in 1972, at the age of 7 his family moved to the US and settled in Seattle He studiedbusiness administration at the University of Washington, which is one of the most famous schools inthe US

Figure 2:

Highlands Coffee's store

developed in the Netherlands

The Netherlands consists of 6 islandsbelonging to Aruba and the autonomousterritory of the Netherlands Antilles belonging

to the Kingdom of the Netherlands in theCaribbean Sea The Netherlands is located inWestern Europe, to the east by Germany, tothe south by Belgium, to the west and north

by the North Sea

The climate in the Netherlands ischaracterized by a temperate oceanic climate, with an average temperature of 10 degrees Celsius to

25 degrees Celsius Because of the north and west facing the Atlantic Ocean The weather in theNetherlands is very mild and pleasant

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Figure 3 Highlands Coffee's logo

III Highlands Coffee PESTLE MODEL IN THE Netherland Market

1 Political problems

1.1 Political system

Dutch politics is characterized by efforts to reach broad consensus on important issues, bothwithin the political world and in society The monarch is the head of state, which according to theconstitution has limited powers, has the right to receive reports and to be consulted in governmentmatters

Cabinets typically consist of 13 to 16 ministers and a variable number of secretaries of state.There are one to three ministers who are non-ministerial ministers The head of government is theprime minister (primus inter pares), which has no apparent additional power over the powers ofother ministers

ü Cabinet: appointed by the prime minister The current cabinet of the Netherlandsincludes 1 Prime Minister, 2 Deputy Prime Ministers and Ministers, 14 Ministers, 9Secretary of State

Æ Legislative: Bicameral National Assembly consisting of an upper house and a lower house, aterm of 4 years

ü The Upper House consists of 75 members, elected indirectly by representatives of 12provinces in the country

ü The House of Representatives (Lower House) consists of 150 members directly elected

by voters

Æ Judiciary: Supreme Court The Supreme Court is composed of judges appointed for life by theQueen from a list nominated by the House of Commons Under the Supreme Court there arethree other types of courts: 61 district courts specializing in small criminal and civil cases; 19

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The District Court hears more substantial cases and 5 the Court of Appeals hears complaintsfrom the district courts.

1.3 Political relations with Vietnam

Political-diplomatic relations between Vietnam and the Netherlands in recent years have beenincreasingly consolidated and strengthened The two countries' senior leaders maintain regularbilateral visits and contacts at international and regional forums, creating an important basis forstrengthening political trust and good cooperation in all fields fields

The Netherlands has become an important leading trade partner of Vietnam in Europe with tradeturnover increasing steadily over the years

2 Economic problems

2.1 Product Consumption

The Netherlands is currently ranked in the top 10 in the world in terms

of coffee consumption The total value of coffee consumption in theNetherlands is about 3.5 billion euros per year In particular, theNetherlands is an important gateway in the world with the amount ofcoffee imported and re-exported to other countries in the region Forsmall and medium-sized manufacturing enterprises that want topenetrate the European market, the Netherlands is the right andfavorable first step to expand the market later

Thereby, we see that the Netherlands is a country with great potential forcoffee consumption Typically, in 2017, coffee consumption in the Netherlands reachedapproximately 55,000 tons and most of the total coffee production was imported from countriessuch as Brazil, Vietnam and Honduras Statistically speaking, every Dutch person drinks two and ahalf cups of coffee a day

Figure 5: Consumption of coffee products in EU countries in 2017

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From 2017 to 2020, coffee consumption in theNetherlands is always leading the world Provingthat Dutch people love to enjoy coffee and this is anopportunity for Highlands Coffee to penetrate thecoffee market in this country.

Figure 6: Coffee consumption in EU countries in2020

2.2 Average income

GDP per capita (GDP/person) of the Netherlands is 52,304 USD/person in 2020 The growthrate of GDP per capita in the Netherlands will reach -4.27% in 2020, down 9 USD/person compared

to that of human number 52,295 USD/person in 2019

Figure 7: Dutch GDP per capita graph (1960 - 2020)Looking at the chart above, we can see that in the period 1960-2020 the GDP per capita of theNetherlands reached:

− The highest peak in 2008 with 57,880 USD/person

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2020

− Lowest in 1960 with 1,069 USD/person .

In other words, the productivity of the people here far exceeds that of ordinary countries With apopulation of 17 million people, they have generated a GDP of up to $850 billion (VND 19 millionbillion)

2.3 Economic relationship with Vietnam

In recent years, the economic, trade and investment cooperation between the Netherlands andVietnam has continuously developed The Netherlands has become an important leading tradepartner of Vietnam in Europe with trade turnover increasing steadily over the years Regardinginvestment, the Netherlands has always been one of the largest European investors in Vietnam

3 Social issues

3.1 Population size

Population: 16,877,351 people (July 2014)

Age structure:

Æ 0-14 years old: 16,917.4% (1,460,2341,485,873 male / female 1,393,7661,416,999)

Æ 15-64 years old: 65.5% (male 5,558,960/ female 5,500,066)

Æ 65 years and older: 17.6% (1,331,258 male/ 1,633.06) female

Average life: 81.12

Average life expectancy for men: 79.02 years



Average life expectancy for women: 83.34 years old

3.2 People's attitude to the product

For the Dutch people, coffee is not only known as a

creative awakening drink, but also an important factor in

transforming the national economy There are many

investors and visitors who come to the Netherlands just to

enjoy the taste of coffee here

4 Technology problem

4.1 Ecommerce

Gain insight into the latest market trends and future growth opportunities for the Dutch Coffeeindustry with research from Euromonitor International's team of local analysts - industry andgeographical experts will help you make informed and intelligent decisions; to recognize and profitfrom opportunity, or provide resilience amid market uncertainty

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4.2 Intellectual property rights

Usually, intellectual property in the Netherlands refers to specific rights to use immaterial thingsand obtain certain benefits from this use

TYPES OF INTELLECTUAL PROPERTY RIGHTS OF THE Netherlands:

The main intellectual property rights in the Netherlands are copyright, patent rights, proprietaryrights, trademarks, designs and trade names

5 Legal issue

5.1 Current legal system

The Dutch legal system is based on the civil law system, also known as the continentalEuropean legal system, which comprehensively covers the rules applied and interpreted by themagistrates

Dutch law or at least the Dutch civil code (Burgerlijk Wetboek) also has some influence on thejudiciary of other countries

5.2 Principles of cooperation with Vietnam

The Prime Minister hoped that the Netherlands would support Vietnam in connecting ports andindustrial zones with Europe, and at the same time, push the Dutch Parliament to soon ratify theEU-Vietnam Investment Protection Agreement (EVIPA) to promote business activities Trade andinvestment between the two countries grew faster, stronger and more sustainable

6 Ethical issues

6.1 Corruption rate

According to Transparency International, the Netherlands is rated as one of the countries withthe lowest corruption index in the world In 2020, the anti-corruption level of the Netherlands is at

82 and it tends to increase

6.2 People's views on environmental protection

Not expensive cars, bicycles are the main means of transport are

recommended to be used at Netherlands

Wastewater treatment in the Netherlands over the Decades has

since been greatly improved, thanks to the tough and drastic policies

and measures of government and relevant ministries, departments

and agencies of the Netherlands

IV AUDITING THE BUSINESS MARKET IN THE NETHERLANDS

1 Market potential

The Dutch market is considered as a gateway and

one of the hubs for transshipment of goods into the

European market, helping to connect ports and

industrial zones with Europe Dutch agriculture is

increasingly focused on sustainability, healthy, safe

food sources and great care for the landscape and the

environment

2 The level of competition

It is worth mentioning that the export turnover of

Dutch agricultural products is ranked high every year,

so efficiency and competitiveness are at the top of the

world This is a huge challenge for investors in

agricultural products in general and coffee in particular

3, Political and legal environment

The Netherlands has supportive tax and business

policies to attract foreign investors There are not many formalities required for setting up andmaintaining a business in the Netherlands In addition, the Netherlands has special governmentorganizations to help foreign companies set up businesses and adapt in the country

The Netherlands has signed many bilateral and multilateral agreementswith partners and participates in organizations Dutch policies are uniform,the law is fair In general, the Netherlands has a legal framework thatencourages fair competition between companies

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4 Social and cultural influences



 Language

The Netherlands is one of the top countries in the world with a percentage of the population thatcan speak English However, there are some e-commerce websites that use local languages.Therefore, businesses need to take note of this



 Dutch way of life

When first interacting with Dutch people, foreigners will have a

general impression that they are quite cold Dutch people usually

won't start a conversation with strangers

However, if you are proactive in starting a conversation, the

Dutch people will be more friendly



 Consumption habits of people

Usually the people of this country are not too important Focus on choosing domestic or foreignmanufactured goods They appreciate the products good quality, and willing to pay a higher thanaverage price if the product hits get into their hobby

With state support, business, and scientists in the windmill country have taken the lead inrecovering all that is still valuable from the discarded things: filtering phosphorus and nitrogen inthe urine as manure fertilizer; turn old fishing nets into floor mats; using waste plastic bottles asbicycle paths, cement bricks, wash basins This technology will help Highlands Coffee save a largeamount of money, for example, reducing waste treatment costs, recycling garbage waste into watercups, trays, etc In addition, winning the majority of consumers' trust in professional ethics

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