Business and business environment topic business environment of trung nguyen coffee

INTRODUCTION Trung Nguyen Coffee is a famous Vietnamese coffee company that can be taken as an example for this task.. Trung Nguyen Coffee is a private company specializing in the produc

CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc lập - Tự do - Hạnh phúc

EIH

Nguyén Tat Thanh University

NNT Institute International Education

NGUYEN TAT THANH

Business and Business Environment

Topic: Business environment of Trung Nguyen Coffee

Instructor : Phan Diéu Hoa

Project group: Group 7

List of member Name Student ID Evaluation of participation

1 Liêu Hoàng Hồng Anh 2200004778 100%

2 Pham Nhu Y 2200001211 100%

3 Tran Minh Kim Phung 2200010209 100%

4 Thang Quốc Kiệt 2200006540 100%

TP Hồ Chí Minh, ngày 29 tháng 12 năm 2023

CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc lập - Tự do - Hạnh phúc

iG

ap

Nguyén Tat Thanh University

NNT Institute International Education NGUYEN TAT THANH

Business and Business Environment

Topic: Business environment of Trung Nguyen Coffee

Instructor : Phan Diéu Hoa

Project group: Group 7

List of member Name Student ID Evaluation of participation

1 Liêu Hoàng Hồng Anh 2200004778 100%

2 Pham Nhu Y 2200001211 100%

3 Tran Minh Kim Phung 2200010209 100%

4 Thang Quốc Kiệt 2200006540 100%

TP Hồ Chí Minh, ngày 29 tháng 12 năm 2023

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CHAPTER 1 INTRODUCTION

Trung Nguyen Coffee is a famous Vietnamese coffee company that can be taken as an example for this task Trung Nguyen Coffee is a private company specializing in the production, processing and distribution of coffee products The company was founded in 1996 by Dang Le Nguyen Vu and has since become one of the leading coffee brands in Vietnam

The main goal of Trung Nguyen Coffee is to bring customers a high-end coffee experience, promote Vietnamese coffee globally and contribute to the sustainable development of the coffee industry in Vietnam The company has a variety of functional departments, including production, marketing, sales, finance, human resources as well as research and development

The vision of Trung Nguyen Coffee Jomt Stock Company, a well-known enterprise in the coffee industry in Vietnam, may change over time and the company's business strategy However, according to previous information, some main factors related to Trung Nguyen's vision include:

Main factors related

to Trung Nguyen's VIsion

Innovation and Research and

Development

Environmental

Developing and

Tmproving

Coffee Quality

Expanding

International Markets and Social

Protection

Trung Nguyen Coffee operates in the field of coffee production and trading The market structure where Trung Nguyen Coffee's activities are organized can be described as follows:

1 Coffee industry: Trung Nguyen Coffee operates in the coffee industry, with competitors being

other coffee companies such as Highlands Coffee, Vinacafe, G7, Starbucks and many other small

coffee producers

2, Multinational enterprise: Trung Nguyen is a multinational enterprise with a presence in many countries around the world They have factories in Vietnam, the US, Singapore and China, and have independent retail stores in Vietnam and internationally

3 Trade relations: Trung Nguyen Coffee has trade relations with many domestic and foreign partners They procure coffee from agricultural producers and cooperate with partners in the coffee business, distribution agents and chain stores and restaurants

4 Owning a brand: Trung Nguyen Coffee is one of the most famous and trusted coffee brands in Vietnam They own many different coffee brands such as G7, Trung Nguyen Legend, Passiona,

Creative, Pha Biéu, etc

5 Customer audience: Trung Nguyen Coffee is mainly aimed at domestic and foreign customers, but especially focuses on the Vietnamese market Their customers can be individual consumers,

families, restaurants, hotels, offices and coffee lovers

6 Distribution channel: Trung Nguyen Coffee has an extensive distribution network with Trung Nguyen stores nationwide and internationally They also have an online sales channel and work with distribution partners to bring their products to a large market

The organization of Trung Nguyen Coffee's activities in the coffee market is associated with controlling the value chain from raw materials to marketing and sales, owning a strong brand and serving a diverse

audience

Trung Nguyen has a complex departmental organization to manage and run its business activities Here are some of Trung Nguyen's main departments:

General Meeting of

Shareholder

Control board

Administrative Council

General dirrector

Internal audit and risk

Director of

information

Director of hays Executive Business

roduct Ss kh || CC to co14 Executive Development of Supply TT Director

Director of alae

and Development

Marketing

2 CC 00c Director

Human

Resources

Administration Executive

In 2020, Trung Nguyen faced challenges with net revenue over 4,209 billion VND and PAT nearly 91 billion VND In 2021, net revenue rose by nearly 6% to 4,456 billion VND With financial revenue almost 4.5 times higher at nearly 512 billion VND, Trung Nguyen reported a profit exceeding 562 billion VND, over 6 times higher than the previous year In 2022, Trung Nguyen achieved a 38.5% increase in net revenue, reaching 6,172 billion VND Despite a 1/7 decrease in financial revenue from the previous year, the reported profit only decreased by nearly 23%

CHAPTER 2 PESTLE-BASED MACRO-ENVIRONMENTAL

ANALYSIS

2.1 Political analysis

2.1.1 Government Regulations

Trung Nguyen Coffee functions in accordance with the parameters established by the government Political elements that affect the coffee industry, such as modifications to trade agreements, government policies, and regulations, can have a big effect on the brand's operations This covers laws governing the manufacture, sale, import/export, and distribution of coffee-related goods

2.1.2 Trade and Tariffs

Political developments pertaining to trade policies and tariffs may have an effect on Trung Nguyen’'s international operations Trade disputes, trade barriers, and agreement modifications can have an impact

on a company's imports and exports, which could change its profitability and market access

2.1.3 Political Stability

One crucial element is the consistency of the political landscape in the nations where Trung Nguyen conducts business The business environment can be adversely affected by supply chain disruptions, consumer confidence issues, and leadership changes resulting from political instability or social unrest 2.1.4 Ethical Concerns

Political factors can also affect how consumers view and demand that the coffee industry adhere to certain ethical standards, like fair-trade methods, environmentally friendly production methods, and sustainable sourcing Maintaining a positive brand image and market position may require Trung Nguyen to address these concems and align with consumer expectations

2.1.5 Market Access

The degree of market access for Trung Nguyen coffee can be influenced by political dynamics among nations This covers discussions about trade agreements, laws governing foreign investment, and obstacles to entering new markets Trung Nguyen's capacity to enter new markets and broaden its global operations may be impacted by the political ties among the nations in question

2.1.6 Corporate Social Responsibility (CSR)

By addressing social issues, assisting local communities, or matching government priorities, Trung Neguyen's CSR initiatives can also be motivated by political considerations This can foster goodwill, improve the brand's standing, and forge constructive connections with political players

2.1.7

Recently, on June 3, 2017, at the 5th Plenum of the 12th Central Committee, Resolution No 10-NQ/TW

was issued on developing the private economy to become an important driving force of the regulated market economy socialist direction, which set the goal: "By 2020, there will be at least 1 million

businesses; By 2025, there will be more than 1.5 million businesses and by 2030, there will be at least 2

million businesses." To achieve the set goals, Resolution No 10-NQ/TW mentioned the improvement of mechanisms and policies, including financial mechanisms and policies to create favorable conditions for businesses to develop

Based on the Party's policies, on June 12, 2017, the National Assembly passed the Law on Support for

7

Small and Medium Enterprises, which mentioned forms of support and financial policies such as: taxes, fees, charges, credit, direct or indirect budget support, price subsidies, price compensation, credit guarantee funds to support and develop businesses In addition, passing tax laws with preferential terms for businesses by industry, field, and location, and especially reducing the general corporate income tax rate from 32% in 1999 to 20% in 1999, 2016 helped businesses have more resources for investment and production and business development In addition, state budget spending policies to support businesses are implemented through preferential forms of state credit, vocational training spending, trade promotion spending, and business support spending In cases of natural disasters, fires,

epidemics, etc., it has also helped businesses stabilize production, reduce costs, have more investment

resources, expand production and business, and create favorable conditions for businesses to develop [1] 2,2 Economic analysis

2.2.1 Market Size and Growth

Trung Nguyen is a part of the world's largest and most rapidly expanding industry—the coffee market

An economic analysis would evaluate Trung Nguyen's market share, the size of the market, and the rate

of growth of the coffee industry Comprehending the dynamics of the market is imperative for the strategic planning and expansion endeavors of the brand

2.2.2 Consumer Spending Patterns

The economic analysis would assess how much money consumers spend on coffee-related goods This entails determining the tastes, disposable income, and willingness to pay consumers for premium or branded coffee The pricing strategy and market positioning of Trung Nguyen are subject to the influence of economic factors

2.2.3 Global Supply and Demand

The dynamics of the coffee market's supply and demand are related to Trung Neguyen's financial performance The analysis would look at things like the amount of coffee produced, trends in import and export, price changes, and competition Variations in supply brought on by bad weather, labor disputes,

or illnesses that harm coffee crops may have an effect on Trung Nguyen's profitability

2.2.4 Cost of Inputs and Production

Trung Nguyen's production costs can be greatly impacted by economic factors such as the price of labor, energy, transportation, and raw materials (coffee beans) Variations in inflation, currency exchange rates, input cost fluctuations, and trade policy modifications can impact a brand's profitability and competitiveness in both local and global markets

2.2.5 Economic Policies

The analysis would take into account how government policies affected Trung Nguyen's business operations It would look at things like trade laws, taxation, foreign investment regulations, and incentives for the coffee business While unfavorable economic policies can present obstacles, favorable policies can foster an environment that is favorable for Trung Nguyen's business

2.2.6 Retail and Distribution Channels

Trung Nguyens economic study would additionally concentrate on the coffee products’ retail and

8

distribution channels This entails examining the relationship between producers, suppliers, and retailers

as well as the efficiency and cost of distribution networks and the competitiveness of retail markets By comprehending these dynamics, Trung Nguyen can improve its market position and streamline its supply chain

2.2.7

In 2020, Trung Nguyen's business situation was not too positive with net revenue recorded at more than 4,209 billion VND and PAT recorded at nearly 91 billion VND In 2021, the company's net revenue recorded 4,456 billion VND, an increase of nearly 6% over the same period last year Thanks to financial revenue 4.5 times higher than the same period to nearly 512 billion VND, Trung Nguyen reported a profit of more than 562 billion VND, an increase of more than 6 times the previous year

In 2022, Trung Nguyen recorded net revenue of 6,172 billion VND, an increase of 38.5% compared to the previous year, although financial revenue decreased by only 1/7 of the same period last year, Trung Nguyen reported a profit only decreased by nearly 23%

Most notably, during the year the company recorded additional short-term loans and financial lease debt

of more than 434 billion VND, while in previous years there was no such loan [2]

2.3 Social analysis

2.3.1 Function in culture

Trung Nguyen Coffee is significant to Vietnamese coffee culture in addition to being a well-known coffee brand This brand has helped to create a unique way to use coffee by fusing classic flavors with contemporary designs

2.3.2 Influence on society

Trung Nguyen Coffee not only produces high-quality coffee beans but also has the ability to impact society through environmental, charitable, and social initiatives This brand has taken part in numerous community initiatives, fostering environmental preservation and community development

2.3.3 Market and advertising strategy

To establish a strong brand identity and draw in clients, Trung Nguyen Coffee has employed a variety of successful marketing and advertising strategies This brand's rise to fame and popularity has been facilitated by innovative and successful marketing campaigns

2.3.4

Depending on preferences, each person can use it at different times According to the survey, 90% drink

coffee with breakfast, 50% drink it before breakfast, 10% drink it after breakfast, 10% drink it after

playing sports, 10% drink it before bed, 90% drink it as soon as you wake up With many times to drink coffee, it has contributed to the increasing rate of Vietnamese people using coffee [5]

2.4 Technological analysis

2.4.1 Coffee production

Trung Nguyen Coffee uses cutting-edge technologies in every step of the process, from bean selection and roasting to product processing and packaging The brand uses this technology to guarantee the freshness and quality of its coffee products