Phân tích SWOT công ty giấy bãi bằng và kế hoạch xuất khẩu e

However, there are some obstacles for the entrance to foreign markets such as the differences of politic, economy and culture...To overcome these difficulties and obstacles, enterprises

PHÂN TÍCH SWOT CÔNG TY GIẤY BÃI BẰNG VÀ KẾ HOẠCH XUẤT

KHẨU

FOREWORD

Nowadays, international economic globalization and integration is a profile and popular growth tendency of the world economy and Vietnam is not an exception In recent years, the number of Vietnam enterprises that operate in import and export increases rapidly with a plenty of items such as maritime products, textile, footwear, handicraft, paper

Export is an important business of the national economy that plays a essential role to the economic growth and development Therefore, to promote the development and enhance the effectiveness of the commodity export is a necessary requirement at the moment integrated condition However, there are some obstacles for the entrance to foreign markets such as the differences of politic, economy and culture To overcome these difficulties and obstacles, enterprises should carefully study and analyse the target market before export their products worldwide, and Bai Bang Paper is an typical example

Paper of Bai Bang Company is produced by a most modern and large-scaled process in Vietnam that is financed by a non-refundable aid of the Government and the Swede – this is a valuable symbol of the friendship between two nations Vietnam and Swedish Since the period when the Vietnamese had to fight against invader, Bai Bang produced

a capacity of 55,000 tpa Since the beginning of its business, Bai Bang has been supplying a significant volume of paper with high quality and preferred by the consumer The key products of the Company are print-paper and notepaper that meet the international quality standard and are produced by an advanced technology In

2004, the Company successfully upgraded and widened their production capacity to 100,000 tpa paper and 61,000 tpa of paper-powder with high quality of international competition and the production environment met the State standards Concurrently, the Company also set up a feasible study submitted to the Government for the period 2

expansion project – Develop a factory that must be finished by the year 2007 that produces paper powder with capacity of 250,000 tpa with product quality and environment meets the International Standards

Being aware of the increasing demand on external market for the paper and paper powder, the Company aims to export their products to England or Australia They wish the Company will gain many profits by their plan’s success

CONTENT

I. Market selection and ways of penetration.

1. Kingdom of England

Kingdom of England is the largest nation with most population of the United

Kingdom of Great Britain and Northern Ireland, locates in the North of Europe England’s population counts for more than 83% of population of the United Kingdom

of Great Britain and Northern Ireland and makes up most of the England’s island’s population It shares land borders with Scotland to the north and Wales to the west Moreover, the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental Europe Nowadays, England is a country that is a part of the United Kingdom of Great Britain and Northern Ireland Its stability of politic and economic wealthy, the friendly policy of law makes it attractive to investors all over the world With London – a leading financial centre, Kingdom of England is the key path to the European Financial Market – a biggest single market in the world – it is the European Union that lies on the veranda of the Kingdom of England

I.1. Politics:

The United Kingdom of Great Britain and Northern Ireland is under the governed of a Constitutional Monarchy headed by the Prime Minister This is a political pluralism system that authorizes a part of power to Scotland, Wales and Northern Ireland The executive power belongs to the Goverment The legislative right is shared by both the Government and the Bicameral: House of Commons and House of Lords The Justice

branch is separated from the two remains: Execution and Legislation This governed mechanism called Westminster System (see the figure B.01 at the Appendix)

Through the Figure shows the political risk in England from 02/2009 to 01/2010 (table B.01), we find that the political status in England is fairly stable; the Government issues various policies to attract foreign investment, remarkably the tax policy for enterprises that is so competitive and the income tax for individuals is lowest in comparison with other countries of the European Union

Legal system: of the United Kingdom of Great Britain and Northern Ireland uses a common legal system The basic feature is that this law system bases on the Court’s judgement and the common legal terms are also used when mentioning to England Law The basis of the common law is that the Court’s judgements called antecedent; this is a key feature to distinguish this legal system to the Civil legal system of the Roman Germany

Last time, a limited aspect of the common legal system is its firmness and incomplexity For the content and procedures, the Court used to follow the antecedent

so the legal system is not appropriate to new situations Therefore, in England, besides the common law, there is also the equity that is applied when there is not an application of the common law This situation lasted to the nineteenth century In 1848, there was a Code of Civil procedure to be issued in New York (United Sate) that computed every situation to obey an unique system In England, Judicature Act issued

in 1873 also promulgated the closely combination between the common law and the equity

For all what mention above, there may be difficulties when cooperating with the England Enterprises should carefully study the legal system in England to avoid dispute during the implementation of commercial contracts Enterprises must spend time and cash to receive contracts with closely terms and conditions, as well as the reliable consultancy

I.2. Economy

The Economy of the United Kingdom of Great Britain and Northern Ireland stands fifth in the world based on the market rate of exchange and stands sixth by the equivalent buying power It is the second biggest economy in Europe, after Germany According to a recent survey, the globalized index here stands fourth in the world Along with New York and Tokyo, London is one of the third financial centre in the world

In recent years, England’s economy is considered to grow most steadily and constantly, over 150 years This is one of the strongest economies of the EU, in terms

of inflation, unemployment and interest rates are relatively low Therefore, according

to the International Monetary Fund, the GDP in England ranked seventh in the European Union by purchasing power parity, after Luxembourg, Ireland, Holland, Denmark, Austria and Finland However, like many other economies of English-speaking countries, it is the level of income inequality than many European countries

It is also a country that has large current account deficits despite the substantial revenues from oil

About GDP growth

Britain’s GDP ranked fourth in the world with $24,228 per person estimated by purchasing power parity, the GDP per person is $ 22,882 (ranking sixth in the world) What makes this number is impressive is that England is the third largest country in the top 10 leading countries according to GDP with GDP reached $2.007 billion, so one can imagine a high GDP per capita at $ 24.228

England experienced a recession period in the early 1990s, but also implemented a longest period of economic expansion And in 2004 the Britain maintains a steady growth rate and reliable 2-3%, and this ratio is considered as an optimal rate that might

be expected

In addition to economic targets, the Company needs to consider the interest on tax policy From December 1, 2008, the British government has announced to cut the standard rate of value added tax, commonly known as value-added tax, from 17, 5% to 15% to kick-start the economy It is a tax on most goods and services, although

different kinds of goods attract a different VAT tax rate However, these rates are 5% higher than value-added tax rate in Vietnam Therefore, Vietnam enterprises need to wait to adjust from the British government or we must find our own solutions (See Table B.02 in Appendix GDP)

I.3. Human value

Human Development Index (HDI) is a measure of the needs of the people are satisfied and the extent of the need to settle the same across the entire population of a country in three aspects: (1) a long and healthy life, (2) an education, and (3) is a decent standard

of living We can see that the England ranks fourth in per capita GDP, but ranks 14th

in providing health care, education, and a decent standard of living It can be deduced that the UK has a long life and high HDI in the world

I.4. Technological technique England has a system of large company in phone service, and it also is one of the countries with advanced technology systems in the world of telecommunications and supplies services such as mobile phones, wireless communication and electric cable (Refer to Appendix B.03)

2. Australia

Australia officially the Commonwealth of Australia, is a country in the Southern

Hemisphere comprising the mainland of the Australian continent the island of Tasmania and numerous smaller islands in the Indian and Pacific Oceans It is the world's sixth-largest country by total area Neighboring countries include Indonesia, East Timor and Papua New Guinea to the north, the Solomon Islands, Vanuatu and New Caledonia to the northeast

2.1 Politics Commonwealth of Australia is a state institution under the constitutional monarchy with Queen Elizabeth II of Great Britain is also Queen of Australia In contrast to many Asian countries, Australia is considered "very low risk of political instability."

Scores of political risk indicators of Australia at: 9:54- very low, almost the risk is zero (10 is the lowest index)

Australia's legal system: legal system in a country affected by cultural factors (the barrier layer, religion, creed, etc.) and its political system Australian legal system is based on a fundamental belief in the provisions of law, justice and independence of the judiciary Australia, similar to some countries like Britain, Canada, the United States, India, Malaysia, etc., under common law system, which originated from England in the eleventh century There are nine legal systems in Australia, eight States and Territory systems and a Federal system However, it is the system state and territories which mainly affect the daily lives of most Australians Each system of federal and state is the combination the three governed branches: legislative, executive and judiciary (See table B.04 - Appendix)

2.2 Economy

Generally, the Australian economy is considered as a good economic environment, a free-market economy in the world The index of economic freedom in Australia is 82.6, ranking third among 41 countries in the Asia-Pacific in 2009 (according to the http://www.heritage.org/index/Ranking aspx) The index of economic freedom is valued based on the following factors: free enterprises, free trade, free finance, government scale, free monetary, free investment, property rights, corruption and labor

Australia's monetary policy helps to control money supply and interest rates Australian economy has always been considered as the most active growth in the world with high inflation and low interest rates Inflation and low stable interest rates will make people spend more money on products that are essential goods

Besides the study of free economic index, the company should focus on indicators of economic development There are a number of criteria to evaluate: GDP and GDP per capita, human development, national classification and some macroeconomic indicators such as inflation, unemployment, etc Australia's GDP in 2008 is estimated

at $ 1.011 trillion (USD 800.2 billion), up 2.3% and stood at 19 in the world GDP per capita in 2008 was U.S $ 38.100, dated 25 compared with other countries

2.3 Culture Human Development Index HDI of Australia ranks fourth in 179 countries and lies in the group with high level of human development, unemployment and inflation low, base rate accounts for 5 -6% Australia is a highly developed country on the factors of economy and human, culture - society is quite favorable for the Bai Bang paper company

2.4 Tecnological technique

Australia is a highly industrialized country in accordance with the actual needs of the company when considering investment here

A. Target selection

After analyzing the two markets, the company found that the Australian is the potential and idea market for companies to undertake an expansion plan to oversea markets Reason:

1. Britain’s applies a higher tax rate while at the ASEAN Summit in Hua Hin, Thailand, on February 27, 2009, commitments have been signed between the ASEAN-Australia-New Zealand import tariff reduction for with Southeast Asia For Vietnam, Australia and New Zealand will cut off import tariffs of products and services in Vietnam increased by 85% and 96.4% respectively, in 2010 before issuing a Southeast Asian countries are complete tax exemption in 2020 Paper is one of the items eligible for tax reduction

2. Sources of Labor here has high quality, while the wage rate and the cost of recruitment are at average rate Operating a new business in this country also appreciate the support of government, it makes things easier for the company when finishing procedures of cooperation These advantages will help the company reduce costs of doing business in this new market

3. Australia has a developed economy with income per capita little higher than the United Kingdom, Germany and France by purchasing power parity (Refer to Appendix, table B.05)

4. Relationship between Vietnam and Australia: Australia - Vietnam relations

is steadily enhanced through various bilateral agreements, such as: Trade and Economic Cooperation Agreement (1990), Investment Promotion and Association of protection (1991), Double Taxation Agreement (1992) According to official statistics, Australia is ranked 18th in overall foreign direct investment in Vietnam In addition, Australian companies are generally well received in Vietnam as well as Australian companies in Vietnam Since joining the WTO on Jan 11, 2007, Vietnam has many opportunities to expand business into foreign markets, especially the Australian market Vietnam and Australia have a strong relationship in both political and economic aspects

B. Ways of penetration to Australian market:

The company will face many difficulties in the first time entering to Australian market

as the difficulties of law, culture, politics So, to minimize the risks, the company has applied a policy of joint venture with a local business The joint venture enables the Bai Bang Paper Company to reduce risks, as well as learning experience for next time expansion in other markets

Through study and research paper companies in Australia, the Bai Bang paper company has partnered with select venture company PaperlinX, a retailer of stationery has extended network address in Australia

ANALYSIS

I. SWOT analysis

Opportunities: Participation in the Australian market is a good opportunity to Bai Bang Paper Company to expand its business market The company has more advantages than other businesses in Australia about the sources of fuel prices and low wages In

particular, the Australian government has loosened policies like free trade tariff reductions for Asian countries

Challenges: The biggest challenge of the company in Australian market is products of China China's products are cheaper than the company's products so it is also difficult

in the consumption in foreign markets The measure for this situation is making products of good quality and affordable to competing with China that are cheaper, but quality is not high

Strengths: Company has installed modern machines and applied a closed production process from planting, processing of raw materials, electricity, chemicals, pulp and paper production to the stage of maintenance and transportation The company consists

of 16 clinical cases, five factories, four plants located in the provinces of Phu Tho, Vinh Phuc, Tuyen Quang, Ha Giang, Quang Ninh and 3 branches in Hanoi, Da Nang, Thanh Ho Chi Minh City with a staff of nearly 6,000 employees who are officers, qualified engineers and skilled workers that are organized and operated under the Northern European management methods

Weaknesses: Has not optimized workers for production, the competitiveness of the company is limited by the starting point is a state company

II. Industry Analysis

Competitive pressures provider: the closed production process from planting, processing of raw materials, electricity, chemicals, pulp and paper production to the stage of maintenance and transportation The company has no competitive pressures Competitive pressure from customers: Customers include retail customers and distributors For retail customers, the company has difficulty in competition with Chinese products The offer for distributors in overseas markets is being pressed on prices So the price is always a pressure for Company

Competitive pressure from potential competitors: The trademark registration is necessary for enterprises in foreign markets Potential opponents more or less, their pressure strong or weak will depend on the following factors:

+ Attractiveness of the industry: This factor is reflected by indicators such as rates of return, the number of customers, number of enterprises in the industry + Barriers to enter the industry: these are factors that make the entry into an industry more difficult and costly

Competitive pressure from substitutes: for paper products, there is not a replacement currently

Competitive pressures from the sector: For companies in countries, there are not any companies to compete with the Bai in terms of quality and price, currently

Therefore, the SWOT analysis and industry analysis shows the company has capacity

to joint ventures with PaperlinX Company to expand in Australia with product is paper

Strategic Objective:

The company always uphold their advantage to compete with other businesses The company always aims to become one of the largest global company in the field of paper products

COMPANY’S BUSINESS STRATEGY

I. Human source

It has an important role in laying the foundations of creating offshore companies to create competitive advantage to the company's international business The investment business with a company in Australia and other countries on environmental job market, culture, legal system, economic system and politics so Human Resource Administration has an especial important role, contributing to the success in the business of the company

The selection of personnel must be carefully carried out and considered before making

a decision Companies need to choose those who qualified, active, speak English fluently, adapt, easy to drive to work in the foreign country