BBE2:Environmental business audit

TABLE Of CONTENTS I Introduction 2 II PESTEL analysis 3 1 The effects of the macroenvironment on company activity both good and negative 3 a Political b Economics c Social d Technology e Enviroment.....................................................................................................

TABLE Of CONTENTS

I Introduction……… … 2

II PESTEL analysis……… 3

1. The effects of the macroenvironment on company activity [both good and negative]……….3

a Political………

b Economics………

c Social………

d Technology………

e Enviroment………

f Legal………

2. Coca-Cola's PESTLE model is being used in Vietnam……….8

3. Coca-Cola Vietnam's IFE and EFE……… 12

a EFE matrix………

b IFE matrix………

III SWOT analysis……….……… 14

1 Coca-Cola's SWOT model is being used in Vietnam………

2 Coca- Cola Vietnam’s of SWOT matrix………

IV The effects that both macros and micro factors have upon business objectives……20

V Conclusion……… 21

VI References……… 22

VII Slide powerpoint……… 24

I INTRODUCTION

Dr John Pemberton introduced Coca-Cola to the public for the first time on May 8,

1886, when it was marketed at Jacobs Pharmacy in Atlanta, Georgia We've evolved fromthis renowned drink into a full-service beverage company

In 1990, we acquired Minute Maid, which broadened our brand and product line Cola officially entered the Vietnamese market in 1994, and presently has factories in Ho ChiMinh City, Da Nang, and Hanoi (Anon, 2021)

Coca-Logo of Coca- Cola

Coca-Cola is a well-known international corporation; they may be aware of theirstrengths and weaknesses, but in order to develop a suitable strategy for the Vietnam market,the Coca-Cola Company must examine environmental conditions PESTEL and SWOTanalyses are used to analyze the internal and external markets

In this demonstration I will use PESTLE to research the industry in which Coca-ColaVietnam operates create insights and forecast future development possibilities in newmarkets I will also perform a SWOT analysis to determine the company's market position andprospective prospects for distribution expansion while reducing risks and threats

II PESTEL ANALYSIS

1 The Effects of The Macroenvironment on Company Activity [Both good and Negative]

PESTEL is an acronym that stands for external factors analysis, which is useful whenperforming research prior to launching a new project or while conducting market research.PESTEL analysis investigates the influence of macroenvironmental elements such aspolitical, legal, economic, cultural, social, and technical issues These are the six economicelements that have a direct impact on them These are external aspects of the firm and theindustry; as an objective factor, the industry must endure the effect that it brings Businesseswill develop policies and business operations that are most appropriate for them based onthose implications

Six elements have a direct impact on the macroenvironment of businesses:

a Political

 Political tranquillity

Vietnam's political situation is stable By flexibly managing government programs such asfiscal and monetary policy Simultaneously with the economic mechanism's remodeling.Aided the Vietnamese government in establishing a firm political base

 Fiscal policy

Taxation is compulsory in Vietnam However, there are still several tax breaks available tobusinesses For example, under Article 19 of Circular No 78/2014/TT-BTC, as revised inCircular No 96/2015/TT-BTC, enterprises will be subject to a lower tax rate than the tax rate.Ordinary income tax rates for a certain period of time or for the whole life of the investmentproject; tax exemption, tax reduction, and other prescribed incentives

 Foreign trade taxation

Because of the benefits to consumers when commodities and services are free to travel acrossnations and regions, free international commerce is seen as the primary trend in internationaltrade (no longer available) The Vietnamese government has practically no interference in thehome market or manufacture of products (barriers and tariffs are nil), and the Vietnamesegovernment has almost no intervention in the domestic market or production of goods (nosponsorship, incentives or discrimination) Current economic ties, such as the World TradeOrganization (WTO), the European Union (EU), the Association of Southeast Asian Nations(ASEAN), and others, all value free trade Rules must be followed by all participants

 Optimistic

- Vietnam has a stable political history

- The government has a number of policies that are helpful

- Commercialization on a global scale involving numerous nations and

international trade organizations

 Confrontational

- Concerning the policies of the government, Vietnam's tax policy is still

 Negative

- Vietnam is a growing nation The economy is still experiencing several

challenges Agriculture is still important to people

- Vietnam's GDP has grown, however it remains extremely low in comparison to other nations across the world

- In Vietnam, the inflation rate is mild The Vietnamese dong, on the other hand, has devalued Economic progress is being hampered as a result of this

c Social

The population of Vietnam is 97.75 million people There are 50.1 percent males and 49.9 percent females The primary source of labor is relatively young accounts for half of the population.

 Positive

The work force is plentiful, and it is steadily developing in terms of professional qualities Vietnamese people have maintained their culture for a long time and have successfully adapted to the cultures of other nations

 Negative

Despite the fact that Vietnam has a large labor force, professional credentials are still low, with the majority of workers being manual laborers In comparison to current equipment and technology, adaptability is quite modest The labor is not dispersed evenly

The educational system is very theoretical, making it less adaptable to practice, and as a result, software products are mainly theoretical, with little practical application

d Technology

The government's investment in technological research and development is advanced in Vietnam For example, by 2020, our country will have established 60 regional and

international level basic and applied research institutions capable of solving important

national problems in science and technology; 5,000 science and technology enterprises; and

60 hi-tech incubators and hi-tech business incubation centers At the same time, Vietnam is focused on investing in and growing the Vietnam Academy of Science and Technology and the Vietnam Academy of Social Sciences to become the country's and ASEAN's premier science and technology organizations

The rate of advancement of science and technology is growing The information technology industry, in particular, is expanding at a rapid pace; the majority of Vietnam now has internet

access spread throughout 63 cities There were more than 154.4 million mobile connections

in the nation, for example

 Positive

- Many new technologies are being used in everyday life

- The government is likewise interested in scientific research and has made significant investments in it

 Negative

Science and technology have advanced in Vietnam, but their application to manufacturing remains sluggish Many new technologies are used, however they do not suit the demands of clients The technological system has advanced, but it is still in its infancy; raw resources are imported from other nations

e Enviroment

 Positive

- Vietnam has a tropical and subtropical climate with monsoons, sunlight, plenty

of rain, and high humidity Temperate climates can be found near the Tropic of Cancer or in high mountains

- The average yearly temperature ranges from 22 to 27 degrees Celsius, which is extremely pleasant Fresh climate is distinguished by two different seasons: dry and cold and hot and wet

- Vietnam is separated into four seasons, each with its own distinct qualities

 Negative

- Environmental contamination is a challenging issue in Vietnam Every year, 10,000 tons of chemicals, 2.3 million tons of garbage, and 7 million tons of industrial waste are dumped into the environment in Vietnam

- Pollution of the soil, water, and air environments is getting increasingly

significant

f Legal

The Vietnamese government has enacted a variety of laws governing businesses, including:

- Business law

- Competition Law

- Foreign Investment Law in Vietnam

- Labor Law

- Environmental Protection Act

- Several more significant laws and regulations

 Negative

- Vietnamese laws have evolved throughout time

- With the benefits that Vietnam's macroenvironment provides Businesses will have excellent conditions to grow, boost output, expand markets, and locate a large number of new clients

- Problems: The difficulties brought by the six macroenvironmental elements in Vietnam will make it difficult to develop, increase the market in Vietnam,

recruit staff, and troubleshoot the environment

- With the benefits and drawbacks that the macroenvironment delivers

Businesses must establish and implement proper policies in order to capitalize

on the benefits provided by the macroenvironment At the same time, conquer and adapt to challenges

2 Coca-Cola's PESTLE model is being used in Vietnam

Political The political environment is stable

due to the government's variouspreferred measures It is advantageous

In comparison to other nations,Vietnam's tax policy remainsextremely high As a result, Coca-Cola

for Coca-Cola to be able to developfreely in Vietnam Create and createseveral new goods, attract potentialclients, and construct manufacturingplants in Vietnam.

International trade is expanding,and Coca-Cola will work withadditional partners to learn and creategoods on a larger scale

must pay a significant cost forproduction supplies To solve issues,Coca-Cola should implementmeasures such as a price policy Vietnam is a growing nation Theeconomy is still experiencing severalchallenges Agriculture is stillimportant to people This makes itdifficult for Coca-Cola to extend itsmarket share, and it is expensive toproduce

Economic As the Vietnamese economy

grows and people's living conditionsrise, so will their requirements It isadvantageous for Coca-Cola toimprove its goods and market itsservices

Vietnam is a growing nation Theeconomy is still experiencing severalchallenges Agriculture is stillimportant to people This makes itdifficult for Coca-Cola to extend itsmarket share, and it is expensive toproduce

Social Abundant labor resources, as well

as steadily growing professionalqualities Vietnamese people maintaintheir long-standing culture whileadapting successfully to other nations'customs Coca-Cola can lower the costand time it takes to locate labor, henceeasing the production of goods andservices

Despite the fact that Vietnam has

a large labor force, professionalcredentials are still low, with themajority of workers being manuallaborers In comparison to currentequipment and technology,adaptability is quite modest The labor

is not dispersed evenly Coca Coal'slabor productivity suffers as a result ofthe time it takes to train employees

The educational system is verytheoretical, making it less adaptable topractice, and as a result, softwareproducts are mainly theoretical, withlittle practical application Coca-Colafinds it tough to use cutting-edgetechnologies in its manufacturing rely

on high-quality outside laborTechnology Many new technologies are being

used in everyday life It isadvantageous for Coca-Cola to usecutting-edge technology in productionwhile also lowering production costs

The government is likewiseinterested in scientific research andhas made significant investments in it

Make it easier for Coca-Cola toexplore and create new goods andservices

Coca-Cola is now able to interactand promote in Vietnam, as well asexpand to a huge market, thanks to theadvancement of informationtechnology

Science and technology haveadvanced in Vietnam, but theirapplication to manufacturing remainssluggish Many new technologies areused, however they do not suit thedemands of clients

The technological system hasadvanced, yet it is still ineffective Foreign countries provide rawmaterials

Coca Cola's production and productdevelopment were fraught withobstacles The cost of importing rawmaterials is expensive, whichincreases the time required for productmanufacture

Environment The climate is pleasant, and it is Vietnam's environment is polluted

separated into four different seasons.

The requirements of the Vietnamesepeople change with the seasons 1, andthe development and production ofmany new goods and services help toCoca-competitiveness Cola's againstcompetitors

As a result, the Vietnamesegovernment has enactedenvironmental legislation As a result,Coca-Cola will have to investsignificantly in production

Legal A multitude of laws in Vietnam,

such as those governing investment,taxation, labor, and the environment,

as well as policies governing trade,industrial development, competitionregulation, consumer protection, and

so on, contribute to a normal businessclimate Coca-Cola is committed toequality and long-term growth

If Coca-Cola businesses do notcomprehend and comply with the law,they will not take advantage of theopportunities provided by the legalprovisions, and they will not havetimely countermeasures, creating loss

in business due to a lack ofunderstanding of the law

3 Coca-Cola Vietnam's IFE and EFE

a EFE matrix

STT Factors affecting Price column Importance PL Critical Score

The total weighted score value of 3,072 is higher than 2.5 Therefore, Coca-Cola doesnot need to adjust its strategy

b IFE matrix

ST

T Factors affecting Price column Importance PL Critical Score

Brand factor , Coca cola has a strong increase in product sales Coca Cola did a greatjob in marketing Coca-Cola strongly develops products Coca-Cola has a stable financialsituation Coca Cola's brand value is known not only in Vietnam but also around the world

In Vietnam, coca cola is still well trained in the workforce Coca Cola has created many kinds

of products such as soft drinks, filtered water Coca-Cola has not yet solved the debtproblem, reporting a lot of losses in Vietnam Coca Cola has not settled well on productprices Coca Cola has gone far and is doing a good job of addressing the void and publicizingnegative behaviors Coca has done a great job in researching the taste of the product so Theproduction in Vietnam is being overcome by Coca Cola Coca Cola's image is invested andstrongly developed by Coca Cola