Business Environment Assignment 2 BTEC Nguyen Huu Phong 2017

Business Environment Assignment 2 BTEC Nguyen Huu Phong 2017 Bài Assignment 2 trong môn Business Environment tại University of Greenwich Viet Nam, đây là một trong những môn rất quan trọng và cần thiết cho những người muốn theo nghành businness cụ thể là human resource management như mình. Bài assignment này được mình làm tại trường. Các bạn có thể xem và tham khảo nhưng lưu ý đừng copy vì nó đã được check turnitin, mình xin nhắc là chỉ dùng để tham khảo.

Contents

the pricing and output decision of businesses

Task 3.2 Illustrate the way in which market forces 11 shape organizational responses using a range of examples

environments shape the behavior of a selected organization

Internal environment

External environment

Task 4.1 Discuss the significance of international trade 24

to a business organization

on a Vietnamese business organization

Task 4.3 Evaluate the impacts of one of the policies 42

of the Asia on Vietnamese business organization

I/ Introduction

Intimex Group

According to Intimex (2016) Intimex Joint Stock Company or as known as Intimex Group was officially established in 2006 after being equitized from a state-owned company founded in 1995 - Ho Chi Minh Branch of Intimex Import - Export Company Since 2011, the company’s name changed to Intimex Group Joint Stock Company

After 10 years, Intimex Group has developed significantly and become one of the most prestigious brands in Vietnam specializing in: agricultural products processing and exportation (green coffee beans, pepper, rice, cashew nuts, etc.); frozen food and steel importation and distribution; supermarket and trade center services; construction materials manufacturing

Intimex Group also expanded our trading worldwide to most of the world’s big markets, including Europe, America, USA, Africa, Australia, Middle East, China, Japan, Korea, India, and ASEAN

By analyzing and discussing about Intimex Group, this report is going to figure out how the business environment affects a company’s decisions of producing goods and pricing strategies

Table 3.1 Characteristics of four types of market structures

Perfect competition

Monopolistic competition

to maximize

profit

Not important Very important Lower normal Not important

different

Same and different

No substitutes

Price taker Short-run

Positive

(Sources: Author)

 Perfect competition

Perfect competition is the term describe the market has many competitors, freely

in entry or exit the market and do not have the market power Because of many consumers and many suppliers and the indifferences between the goods offered,

so consumers and suppliers are price taker – takes the prices as given The products in perfect competition also are the agriculture goods In the perfect competition has MR (Marginal revenue) = P (Price) = D (Demand) We can also base on the change of MR and MC (Marginal cost) to decide increase or reduce

Q (Quantity) If MR > MC, we should increase Q to raise profit because each item can get more profit than the cost If MR < MC, we should reduce Q to raise profit because if we produce more goods it would be loss in MC of each one If

MC = MR, the business shouldn’t change Q because the profit get maximize at this point If we change Q when MC = MR, it would be lower profit

In business, some different stages company has to decide to shutdown or exit the market Shutdown is the short-run decision not to produce anything because of market conditions, but still pay for FC (Fixed cost) Exit is long-run decision to leave the market when business see that’s hard or impossible to get profit from this market in the period of time, and don’t have to pay any cost So when we should shutdown or exit the market? We have the cost of shutting down is revenue loss = TR, and benefit of shutting down is savings cost = VC (but still pay FC) So we should shutdown if TR < VC, then se divide both of them by Q: TR/Q < VC/Q The last result is P < AVC (Average variable cost) when we should shutdown When we should exit the market? We have the cost of exiting the market is revenue loss = TR, and benefit of exiting the market is cost savings

= TC (includes the FC in long run) So If TR < VC, then we divide both sides by

Q, we have P < ATC (Average total cost) is the time we should exit the market, and enter the market when P > ATC The short-run equilibrium of business in perfect competition is get the MR = MC to maximize the profits When the process of entry or exit is complete-remaining firms earn zero economic profit is the time we get the long-run equilibrium When P = ATC, business get zero economic profit The MC will intersects ATC at the minimum ATC So the long-run equilibrium in perfect competition is P = ATC min

 Monopoly

A monopoly is a company that is the sole seller of a target product without any substitutes A monopoly firm, has market power, is the price maker which can directly influence the price of product in the market In monopoly market, business very difficult or impossible to entry or exit because it’s have no substitutes There’s also the government business in monopoly like electricity And monopoly gets the maximize profits as the same of perfect competition: MR

= MC Because of the price maker, monopolist can change the prices effectly to get the maximize profits When monopolist want to increasing Q has 2 effects on revenue: Output effect (higher output raises on revenue) and price effect (lower price reduces revenue) For the practical examples in life, when you produce

more goods to the market it become more easy to get one, so you have to reduce the prices of product to stimulate the demands of consumption MR could be negative if the price effect overwhelms the output effect Because of the pricing advantages, monopolist also set the highest price that consumers are willing to pay for the quantity they want to provide With the way the bridge slopes down, each level of the production associated with a single price, normally the monopolist always want to sell at high prices and large output However, because

of the way the bridge slopes down, necessary home exclusively determine the price the higher the lower output and sales just want to sell more products, the price is low Monopolist cannot increases the price and does not reduce output Therefore, the shape of the road slopes down requirements limiting the power of the monopolies The monolist’s profit equal has been calculate by: ( P – ATC ) *

Q Short-run equilibrium is to charges the same price (Pm) to all buyers

(Sources: Lecture)

 Monopolistic competition

Monopolistic competition is the market in which each business supply to the market a type of product, or a brand has the different in quality, packaging or reputation and each business exclusive with its brand In monopolistic competition, there are many sellers and buyers, and have many substitutes Power market has been limited, and no barriers to entry or exit the market The principal items in this market are daily products such as shampoo, toothpaste, student products, drug, films Every business has a little market powers, can control the price of their products, showing that the supply line down towards to the right The demand line in monopolistic competition has the different with the monopoly is the elasticity at the different point in demand line There are many small businesses in competitive markets monopolies and business products are products have the ability to replace highly, but not completely replace so the product demand line of the monopolistic competition more elastic to the monopoly, but is not completely elastic like perfect competition Because of the product differences, so there can’t be only one price for all the products It’s a group of price in monopolistic competition, but the distance of each price not really high The long-run equilibrium in monopolistic competition is get the point that P = ATC and profit = zero then business get the markup

(Sources: Lecture)

 Oligopoly

In Oligopoly, there are only a few seller offer similar or identical products, and difficult to entry or exit the oligopoly market because there’s not many substitutes The most important in oligopoly is the pricing strategy in which the business catches the pricing trend of another and set the strategy to get the best profit with any pricing decisions of competitors Nash equilibrium defines as a situation economic participants interacting with one another each choose their best strategy given the strategies that all the others have chosen For example to support the Nash equilibrium called the “fare wars” game We have 2 players American Airlines and United Airlines, there is a choice to cut fares by 50% or leave fares alone There are 3 case can happend If both airlines cut fares, each airline’s profit = $400 million If neither airline cuts fares, each airline’s profit =

$600 million If only one airline cuts its fares, its profit = $800 million the other airline’s profits = $200 million Let’s see the Nash equilibrium in this situation

(Sources: Lecture)

In the case of American Airlines, we can see that it will get the best profit no matter what’s the competitor choosen is cut fares And it’s the same with United Airlines when they decides to cut fares So in this case, Nash equilibrium is both firm will cut fares

Intimex is the ex-import raw agriculture goods corporation, so the market structure of Intimex is perfect competition Because of the freely to entry and exit market, so the market competitors changed rapidly, it can affect to the pricing and production of business Intimex should regularly updated the information about the entry and exit of the target product market and the demands of consumption to set the price and production decision effectively Otherwise, Intimex should consider the profitable of the target product then decides to keep producing or shutdown or exit the target product market Based on the MR and MC of the target market to set the right strategy, If MR >

MC, then decides to increase the quantity production of target market to get more profit

If MR < MC, then decides to reduces the quantity to minimize the loss of MC And set the reasonable strategy to get MR = MC to maximize the profit

The advantage of Intimex is the diversity of import and export commodities, so Intimex has multiple sources of revenue from different markets, from which can change the different strategies for different items to avoid instability of a certain market For example, if the market of 1 items were fluctuating sharply, without compromising too much with the business activities of the company For example, if the rice export market has negative conversion, one of the opponents successfully transplant new rice varieties for high yield and good quality will affect the quantity of exported rice stitch of Intimex

to other countries because Vietnam is the top 3 country has largest rice exporter and Intimex is one of the influential group for agricultural commodities such as rice and coffee But the coffee market in Vietnam tend to grow quite rapidly, Intimex growing again expressed the position as well as get more profit in coffee market

The disadvantage of the domestic market is also from the diversification of products Because there are too many markets, so it’s will be hard to maximize the profits from the target products because the changes of market come very slowly without the breakthrough, so it’s hard to detect And the distribution of resources as well as reviews

of the market is also one of the obstacles of Intimex The advice for Intimex is expanding the department of management as well as research and development of products to more easily capture the general situation of many different markets Clearly define the target goals for each market to set the reasonable strategies to maximize the profits from each target commodities

3.2 Illustrate the way in which market forces shape organizational responses using

to which the enterprises reduce costs and increase profits in the production, by contrast, the large providers can cause pressure on the manufacturing industry in many ways,

such as the most recent selling price of raw materials to the san sharing part profit sector

Intimex must maintain profitable relationships with suppliers This make we know how suppliers influence to Intimex businesses The weak bargaining power of suppliers is based on the following external factors:

There are many suppliers for Intimex

The size of suppliers is small and medium

Intimex has many vendors and suppliers near as durable so it reduces the bargaining power of suppliers Because of the low forward integration it leads to reduce the power

of the suppliers, limit the supplier's control of Intimex's supply chain The factors of influence on the company even though they are large and medium sized organizations This component of the Five Forces analysis indicated that the ability to negotiate with the provider is a low priority for Intimex Furthermore, Intimex is great and almost company the suppliers are small and medium companies, thereby increasing their profits from Intimex is higher so they are both a source of passive

Power of buyers

Customer power is influenced by customers for a particular industry In general, when the power of large customers, the customer relationship with the production will close to what economists call exclusive buy-that is, the market has many suppliers but only one buyer In such market conditions, customers have the ability to impose the price If the client is strong, they can force the price must drop, causing the rate of profit of the industry decline There are very few exclusive phenomenon buy actually, but still often

exist in non-equilibrium relationship between a manufacturer and the buyer

The customer is the most important factor for the success or survival of Intimex Because it is related to the survival of this factors should lead to strong negotiating abilities of Intimex's consumer/buyer as follows:

Low switching costs

High access to product information

High availability of alternative

We know that customers have the ability to choose other institutions if they feel uncomfortable This is the strength of the likely impact of Intimex customers Moreover, consumers have sufficient information to buy or choose between Intimex's products and competing products In addition, customers will have the comparison about the price or

the quality of Intimex and Intimex do competitors priced depends too much on customer demand Based on the elements of the Five Forces analysis, Intimex must ensure customer satisfaction in order to maximize revenue

Competitive rivalry

The intensity of competition is often described as devastating, strong, moderate, or weak, depending on whether the airline's efforts to gain a competitive advantage Diversity of the opponent with the culture, the history and different philosophy makes the business becomes unstable There are growth companies do not follow the rules to make the companies do not evaluate correctly, so the market situation, the competitiveness is also unstable and tends to increase

Trung Nguyen is one of the biggest competitor of Intimex However, this element of the analysis of Five Forces show that other factors to determine the influence of competitive rivalry The powerful forces of competition with Intimex:

High aggressiveness of organizations

Low switching costs

High number of organization

Most companies in oligopolistic markets is positive because they have to face many competitors to ensure their profitability Competitors are also powerful because consumers can easily change from organizations to organizations which lead to lower conversion costs This component of the Five Forces analysis shows Intimex faces strong competition Competition is one of the most pressing concerns of it

Threats of substitutes

In Porter's model, the term "alternative products" is referring to products in other manufacturing industries According to the Economist, alternative risk appears when the demand for a product is affected by the change in the price of a commodity instead Elasticity of demand as the price of a product subject to the impact of price changes in goods instead The more the goods replaced then needs more products of

high elasticity (that is only a small change in product prices also lead to large changes in demand products) because at the moment the buyer has many choices So, the existence

of alternative goods do limit the ability to increase the price of the business in a certain

industry

Intimex's products can be replaced, depending on the customer's decision There are elements of the powerful threat of substitute products for Intimex:

High performance of substitutes

Low switching costs

High availability of substitutes

All the products of Intimex a replacement Moreover, Intimex customers can easily switch to an alternative, it is appropriate and reasonable In addition, most of the alternative products are available in stock and other distributions On elements of the Five Forces analysis, external factors make strong threats replace a priority issue facing Intimex

Threat of new entrants

Not only the new current creates the risk of threatening the businesses in an industry, that the ability of new firms can join the industry also affect competition In terms of theory, any company can join or withdraw from the market, if exist "entrance" and

"gateway" Meanwhile, the profits of the industry will be negligible But in fact, each of the private sector to protect the high profit level of the unit were present in the market, at the same time discouraging potential rivals to join in that market These measures are

called barriers to accession

Intimex should care for new companies to join its market Elements of the force analysis

of the year shows the impact of those new or new organization of coffee export sector The external factors provide the threat of new ones for Intimex:

Low switching costs

Moderate customer loyalty

High cost of brand development

Likewise with the threat of substitutes, the new company in this market make for more alternative products to customers Therefore, it increases the opportunity for clients to give to Intimex's products, used products instead On the other hand, Intimex has a corresponding level of protection from new people and clients may attempt to use the new product of the new organization to have the comparison Intimex is one of the strongest brands on the market to compete with Intimex's new organization will face the high number of capital to grow the brand to it is the competitive advantage of Intimex

3.3 Judge how the business and cultural environments shape the behavior of a selected organization

Internal environment

Internal environmental factors are events that occur within an organization Generally speaking, internal environmental factors are easier to control than external environmental factors The internal environment consists: human resources, company image and brand equity, and other factors (physical assets and facilities, R&D and technological capabilities, marketing resources, financial resources)

To begin with, effectively using and controlling human resources, or else the labor force

of a company, may change a whole picture of business Choosing the right groups of employees to finish suitable tasks would boost up the productivity

Besides, building a strong company image and brand equity creates a better environment for company to expand its business With a trustable background and long-term mission, any company would have a chance to reach more customers and eventually develop About other factors, controlling the financial stage of company is important to maintain the whole organization’s operation, not to mention the importance of technology, or how

a company do R&D would affect the final results All of the internal factors takes a important role on the way to a successful business and should be carefully considered Since the internal environment factors are much easier to deal with than the external

environment’s, every company should apply the right strategies to solve problems if needed

External environment

External environment includes all factors outside the organization which provide

opportunities or pose threats to the organization It is considered as uncontrollable

factors, and it mainly consists of micro and macro environment

Micro environment

In a study of Kotler and Armstrong (2016) the microenvironment is explained that:

“The actors close to the company that affect its ability to serve its customers – the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.”

To be clearer, microenvironment is a combination of the actors which are closed to the company, and they do have an ability to impact the marketing decisions

The company

The company itself is considered as an internal environment that affects the marketing management first Beside marketing management, other company groups are divided into different groups namely top management, finance, research and development (R&D), purchasing, operations, human resources (HR), and accounting (Kotler and Armstrong, 2016) Each of these groups hold different positions in designing marketing plans While top management is who sets the whole company’s mission or objectives and policies, marketing managers are who decide the suitable strategies without making any illegal actions

Suppliers

Kotler and Armstrong (2016) emphasize suppliers in microenvironment that:

“Suppliers form an important link in the company’s overall customer value delivery network They provide the resources needed by the company to produce its goods and services.”

Since most of companies have strong bonds with the suppliers in order to both side gain benefits, the marketing managers should take a careful step before making any big decisions regarding to suppliers Each of supplies problems or matters could affect the

marketing strategies For instance, if the suppliers warn that they would rise the supply costs, it leads to the result that the company would receive less profits from sales volume

Marketing intermediaries

Marketing intermediaries are supposed to help the company to sell, promote and distribute products to customer There are resellers, physical distribution firms, marketing services agencies, and financial intermediaries in marketing intermediaries (Kotler and Armstrong, 2016) First, resellers are channel firms that find customers or make sales such as wholesalers and retailers Second, physical distribution firms stock and move goods and products to many different destinations Next, marketing services agencies are those who help the company to target and promote its products to the right markets The next one is financial intermediaries which include banks, insurance companies, and other businesses that prevent the risks concerning the buying and selling

of products

Let’s take Pepsi, a popular soft drink brand, as an example In KFC, people can only enjoy Pepsi as coke, not Coca Cola There is an exclusive contract between KFC and Pepsi in order to promote Pepsi to customers who come to KFC Those customers who regularly come to KFC would eventually have a good thinking about Pepsi through time, and it may create their habit of choosing Pepsi as a beverage later In this case, KFC is a marketing intermediaries which Pepsi chooses to target based on the same range of customers of the 2 companies

Competitors

Competitors are considered as the actor that helps a company to improve and enhance its goods and services To be successful, a company have to bring greater value and

benefits to customers than other competitors do (Kotler and Armstrong, 2016) By researching and understanding the competitors of company, marketing managers can make a right marketing strategies to boost company’s business

Publics

According to Kotler and Armstrong (2016) “A public is considered as any group that has actual potential interest in or impact on an organization’s ability to achieve its objectives.” There are 7 publics groups in total, which are: financial publics (banks, investment analysts, stockholders), media publics (carry news, features, and other content such as: television, newspapers, magazines,…), government publics (the company should follow the rules and policies: product safety, truth in advertising,…), citizen-action publics (environmental groups, minority groups, consumer organizations,…), local publics (neighborhood residents and community organizations), general public (public’s image of the company), and the last one is internal publics (workers, managers, volunteers, board of directors,…)

Every groups may cause issues to a company’s marketing strategies, that is why marketing managers should carefully analyze the impact of each group To prevent any bad impacts and boost up the good effects, Intimex should make sure to cooperate with media publics to carry any new interesting deals to potential customers under legal government policies, try to stop any crisis happened in order to eliminate any bad conflicts about the company, control the company’s image by improving skills and attitudes of employees, and do not forget to solve any arguments

Customers

All the revenue and profits come from customers, so there is no wonder why customers are the most important actors in the microenvironment There are 5 types of customer markets that a company might target any or all of them, which are: consumer markets, business markets, reseller markets, government markets, and international markets (Kotler and Armstrong, 2016)

Macro environment

A macro environment is the condition that exists in the economy as a whole, rather than

in a particular sector or region In general, the macro environment includes trends

in gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy The macro environment is closely linked to the general business cycle as opposed to the performance of an individual business sector In business, macro environment is divided into 2 broad groups: economic and non-economic

Economic environment

There are 3 important factors about economic environment that would affect business of company which are: economic conditions, economic policies, and economic systems Economic conditions of a company is the stage of development of a whole country’s economy, economic resources, the level of income, the distribution of income and assets,… These important determinants are vital to business strategies of a company While the level of income may decide how affordable customers are to products on the marketplace, the stage of development of a country’s economy holds a big role since all companies would make strategies depending on it If the stage of development is stable, companies would invest more to the economy, or else they would withdraw out of the market

Economic policies also affect a company’s decisions in business All of business should

be run under government policy, and it brings both advantages and disadvantages to company For example, a restrictive import policy may greatly help the import competing industries, but somehow it would slow down Intimex’s business if Intimex could not afford the requirements

Economic system is one of the most important factors that would affect a company The greatest economic system is the free market economy In the free and open market economy, companies have more chances to expand their businesses to the world, which create more profits and to build the country’s economy

The economic environment can offer both opportunities and threats It consists of

economic factors that affect consumer purchasing power and spending patterns (Kotler and Armstrong, 2016)

The Vietnam economy is developing through time According to Focus Economics (2016), the GDP per capita of Vietnam eventually raised from 1,373 to 2,036 in the period of 5 years from 2011 to 2015 It proves that the living standard of Vietnam has been much enhanced and improved in recent years

Non-economic environment

Non-economic environment consists of regulatory, socio-cultural, demographic, technological, and political environment

Cultural environment

In a study of Kotler and Armstrong (2016) cultural environment is noted that:

“Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.”

The importance of cultures in businesses is nothing to be argued People who grows up

in different places would have different beliefs, basics, and points of view The societies affect the way how people think and make decisions When deciding to enter the new marketplaces or another countries, the company must do R&D about the cultural in order to make clear the right marketing strategies for the right target customers

65 years and over: 6.01% (2016 est.)

Since people in the range of 15-24 and 25-54 years old are the most potential customers

to every companies, it brings out the fact that Vietnam is now considered as a great and open marketplace to invest

Technological environment

Nowadays, technology has been widely applied in business to access the maximum profits of companies Without high technology, the supply chain of Intimex would be slow down or even could not meet the strict requirements of exporting

Political environment

In a book of Kotler and Armstrong (2016) political environment is defined that:

“The political environment consists of laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.”

The companies always seek for free-market to effectively invest in business and compete with the competitors in order to maximize the profits However, it can not be denied that any businesses or systems only work best under some laws and regulation That is the reason why companies should do business following laws published by the government to help the competition market to be equal and fair

4.1 Discuss the significance of international trade to a business organization

International trade

International trade is the exchange of goods and services between countries This form

of commerce to promote the entire world economy, including the price, supply and demand, the impact and are impacted by global events For example, political change in Asia could lead to an increase in labor costs, thus increasing the cost of production for

an American shoe company based in Malaysia, leading to a price increase shoes tennis at

the shopping center where you are In contrast, the reduction in labor costs will make your prices cheaper shoes Global trade provides opportunities for consumers and the country is exposed to goods and services that their country does not have Almost all kinds of products you want are found on the international market: food, clothing, spare parts, oil, jewelry, wine, stocks, currencies and water The service is also traded as tourism, banking, consulting and transportation When a product is marketed world called exports, and when a product is purchased from the world market is called import Imports and exports are recorded into current account balance of payments of a country Advantages

International trade allows rich countries to use their resources more efficient, whether labor, technology and capital The country has the advantage of the assets and various natural resources (land, labor, capital and technology), for this reason, some countries have the ability to produce a certain number of goods with the same quality products of other countries, but at a lower cost, so price is also cheaper If a country can not efficiently produce a commodity, it can be purchased from a different country This is called specialization in international trade

International trade will not only increase global production efficiency but also allows countries to participate in the global economy, encouraging opportunities for foreign direct investment (FDI), which is the amount that the personal investment in companies and other assets abroad In theory, so that the economy can grow more efficiently and easily become a competitive economy

For recipient countries, they receive foreign currency as well as the know-how and technology through FDI, thereby enhancing labor skills, and in theory, lead to growth in the total value of gross domestic product For investors, FDI to help them grow wide and firm, synonymous with increased sales

International trade is seen as two conflicting views about the level of control in the trade: free trade and protection policies The theory of free trade is a simpler theory of two theories: economic liberalism (laissez-faire) said that there should be no restriction on trade The self-adjusting supply and demand on a global scale will ensure production

efficiency So, no need to make any policy on protection or stimulate trade and growth, the market elements will be automatically adjusted

Disadvantages

Highly competitive: Trade liberalization means the economy of a country must be subject to greater competition from the market, so domestic companies have to learn to adjust

Higher requirements applied to products: Developed countries set strict policies and requirements of imported products, so companies which major in exporting must enhance products’ quality by updating the latest technology

The economy lacks diversity: Sometimes, both countries have strengths in some certain areas, the industry is often related to natural resources Therefore, they depend greatly

on the industry The oil countries in the Middle East is a testament to the dependency Their economy is almost dependent on only one product, which is petroleum

The advantage of the coffee exported to the world also helped many to Intimex Coffee consuming market in the world as much as the quantity of coffee exported to greater convenience for business To produce large quantity and quality goods for export, corporations also need advanced Intimex industrial engineering, quality assurance and reasonable price to compete with the coffee export market of the world According to Reuters, Vietnam government in 2014 officially abolished VAT to 5% for coffee items, this is a very good news accelerate export coffee production This leads to reduced coffee prices, stimulate the exports of coffee to the world

Exports

Export is the quantity of goods or services produced in one country are delivery to another for sale or trade For example, imagine that you supply 750 goods but your internal market demands only 300, so the quantity between 300-750 goods (450) is

inventory, no more demands so the only way to keeps the profits is to sale or trade them aboard, and then export exists

The Vietnam export products usually are the agricultural goods, and coffee is one of them Vietnam is the top 2 coffee exporter in the world, that’s mean the quantity of coffee Vietnam has been provided to the world are very huge every year That’s the evident to show that the quality of Vietnamese coffee is quite good, and the reasonable price In 2010, the quantity of coffee export of Brazil is nearly twice to the quantity of coffee export of Vietnam, but in 2014 the distance has been reduced to 1/6 So we can see that the coffee export of Vietnam has been increasing over time