ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name NGUYEN MINH KHANG Student ID GBD201815731

Class GBD0903 Assessor name PHAN TRAN PHUONG TRANG

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature KHANG

Grading grid

P4 P5 P6 M3 M4 D2

2
 Summative Feedback:  Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

2
Contents
A. INTRODUCTION.......................................................................................................................................................1
B. METHODOLOGY.......................................................................................................................................................1
C. FINDING AND DISCUSSION......................................................................................................................................2
I. ABOUT THE COMPANY.........................................................................................................................................2
1. COMPANY PROFILE..........................................................................................................................................2
2. VISION, MISSION AND VALUE..........................................................................................................................2
II. EXTERNAL ENVIRONMENT (MARKET ENVIRONMENT)........................................................................................3
1. MICRO ENVIRONMENT (through Porter’s Five-forces model).....................................................................3
2. MACRO ENVIRONMENT (through PESTEL analysis).........................................................................................9
III. INTERNAL ENVIRONMENT (the company’s strengths, weakness and its threats, opportunities relevant to
external factors)....................................................................................................................................................13
1. STRENGTH......................................................................................................................................................13
2. WEAKNESS.....................................................................................................................................................17
3. OPPORTUNITY................................................................................................................................................17
4. THREAT.........................................................................................................................................................18
IV. DECISION:.........................................................................................................................................................18
D. CONCLUSION.........................................................................................................................................................21
E. REFERENCES...........................................................................................................................................................22
References.................................................................................................................................................................22

2
A. INTRODUCTION
PNJ is proud to be the leading jewelry maker and retailer in Asia, holding the No. 1 position in the middle and high-end
jewelry market segments in Vietnam. PNJ Company, formerly known as Gemstone and Jewelry Store in Phu Nhuan
District, was established on April 28, 1988, under the People's Committee of Phu Nhuan District.[ CITATION Caf21 \l 1033 ]

This report analyzes PNJ’s internal and external market environment to demonstrate the profitable opportunity of the
company for investment planning in 2020-2025.

B. METHODOLOGY
The researcher uses knowledges that learned from Marketing Environment, finds and collects verified
information from reliable online sources as well as uses PESTEL, SWOT and other framework to analyze internal
and external market environment. This allows researcher to point out possibility opportunities and clarify
profitable factors of PNJ.

1
C. FINDING AND DISCUSSION
I. ABOUT THE COMPANY
1. COMPANY PROFILE

Name of PHU NHUAN JEWELRY JOINT STOCK COMPANY

company
Headquarter 170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, HCMC
Address
Legal Ms. CAO THI NGOC DUNG – Chair Person
representative
Charter VND 2.252.935.850.000
capital
Main business Producing and trading jewelry of gold, silver, precious stones, fashion
field accessories, souvenirs. Trading watches and buying gold bars.
Diamond, precious stones and precious metal inspection services.
Trading in real estate.
[CITATION PNJ211 \l 1033 ]

2. VISION, MISSION AND VALUE

2.1. VISION
“We aim to become the leading jewelry fashion brand, with core attributes being Creativity, Fineness, and
Reliability.”[CITATION PNJ211 \l 1033 ]

2.2. MISSION
“Our mission is always to enhance customers’ satisfaction, by diversifying products and services at highest
quality and reasonable price, by advancing management and manufacturing system, and improving craftsmen’s
skills.”[CITATION PNJ211 \l 1033 ]

2
 2.3. VALUE
“Integrity-Responsibility-Quality-Innovation-Cohesion” [ CITATION PNJ201 \l 1033 ]

II. EXTERNAL ENVIRONMENT (MARKET ENVIRONMENT)

1. MICRO ENVIRONMENT (through Porter’s Five-forces model)

Figure 1 The power of stakeholders [ CITATION PNJ201 \l 1033 ]

1.1. INDUSTRY RIVALRY (CURRENT COMPETITORS)

As a result of Circular 22/2013/TT-BKHCN about management of measurement in gold trading and quality
management of gold jewelry on the market, the majority of small business on gold jewelry aspect was wiped
out because of lacking requirement and physical evidences. This leads to the huge step development of large
gold and jewelry company. PNJ and SJC are two particular examples. After enactment of the Circular
22/2013/TT-BKHCN, gross profit of PNJ increased 37% when compare with the previous period, and increased
19% when compare with expectation. [CITATION Cao15 \l 1033 ]

3
 PNJ
PRODUCT Gold, jewelry and products from gold
and jewelry such as accessories,
necklaces, watches, earrings and so on.
PROFIT MARGIN ~19% (statistic in 2019)
SJC
Gold, jewelry and products from gold
and jewelry such as accessories,
necklaces, watches, earrings and so on.
~1% (statistic in 2019)

Figure 2 Profit margins of PNJ and SJC[ CITATION Dao18 \l 1033 ]

- According to the chart below, even revenue of SJC always higher than PNJ,
however, because of different priority in product that allows PNJ have had higher
gross profit than SJC. The gap between revenue and gross profit can be described
through profit margin.[ CITATION Dao18 \l 1033 ]
MARKET GROWTH - Demand on accessories has growth - Demand on storing gold has greatly
continuously recent years at the same decreased because of the government’s
time of decreasing in demand on storing effort to prevent goldenization and
gold bars. PNJ has adapted and changed dollarization (or reversion-to-gold). Even
4
 its main portfolio from gold and jewelry SJC’s total income has regularly
to product from gold and jewelry. This increased recent years; However,
leads to the great increase of PNJ’s because of low profit margin, gross
profit recently.[CITATION PNJ211 \l 1033 ] profit of SJC has been strongly affected. [
CITATION Kim17 \l 1033 ]
 Because of huge gap between PNJ and its current competitors, threat of industry rivalry is low.
1.2. THREAT OF SUBSTITUE PRODUCTS
In Vietnam, gold and product from gold is a part of the country’s culture. Vietnamese have a habit of buying and
storing gold and its products. Gold and its products are not only used as accessories or furniture, they also are
used as guarantee investment. Gold acts as a diversifier and a vehicle to mitigate losses in times of market
stress. According to Word Gold Council (WGC), gold can serve as a hedge against inflation and currency risk.
[ CITATION WGC21 \l 1033 ]. In the report of WGC in 2017, Vietnam ranked 14th in the list of highest gold

consumption per capita.

Furthermore, as a result of the government’s effort to prevent goldenization, people’s demand on gold has
shifted from pure piece of gold to products from gold. SJC’s total income from gold bars had decreased from
111.000 Billion VND in 2011 to 22.950 Billion VND in 2017 [ CITATION Dao18 \l 1033 ].

Because of reasons above, PNJ’s products have a stable position in Vietnam market and can estimate that there
are no substitutes in the near future. Threat of substitute products is low

1.3. THE POWER OF BUYER

In Vietnam market, there are 3 points that affects PNJ’s orientation strategy:

- The country has a young population with 35,4% Vietnamese being 20-45 years old

- Stable GDP growth around 5.9% (2011-2020) [CITATION Ngu21 \l 1033 ]

- The globalization in culture and lifestyle since 2006 until now, this leads to the changing of consumer’s tastes
and behaviors.

=> PNJ orientates its product towards customers from 25-45 with simple but elegant and luxurious designs.
Satisfying consumer expectation in accessory trending and stimulating customer’s tastes at the same time has

5
 helped PNJ's market share expand continuously from 12% (2012) to 27% (year 2017) as the biggest
jewelry brand in Vietnam. [ CITATION PNJ18 \l 1033 ]

- Satisfying people’s demand, however, PNJ’s products are not necessities.

=>This leads to the high power of buyer affects the company.

- In order to clarify customer’s concern, PNJ has conducted consultation activities. According to PNJ (2020), in
the company’s 2019 Annual Report:

CONSULTATION ACTIVITIES CONCERNS OF CUSTOMERS PNJ’S ACTS

- Loyalty programs for regular
customers, regular customer
service policies and activities.
- Inquiring handling processes
are visible and professional:
managed by software, reporting
systems, synchronized customer
information system, recording
customer’s satisfaction and
taking care of customers after
claims are handled and cleared.
- Provided fully and on-time
information about products,
promotion programs, retailing
policies on website
www.pnj.com.vn
- NPS (Net Promoter Score)
evaluates customer’s satisfaction
with PNJ.
- Organize market surveys to
assess customer’s taste, behavior
and satisfaction level of PNJ
- Product quality and customer
service are improved.
- Brand reputation in the market.
- Invest effectively in customer
service system, results are
reported, recorded, aggregated
and analyzed to identify
improvements, solution,
initiatives and strategies.
- Build KPI to improve customer
service system and quality.
- Invest in research and
development, product quality
control.
- 20 consecutive years to earn
the title of Vietnam high quality
goods, being the top 50 most
valuable brands in Vietnam.
6
 brand.
[ CITATION PNJ201 \l 1033 ]

1.4. THE POWER OF SUPPLIERS

- For gold and jewelry industry, raw materials are very important, which can be seemed as unreplaceable. This
leads to the high power of suppliers. Moreover, since the State bank of Vietnam has possessed exclusive right to
import and export gold, suppliers for PNJ has been limited -strong power of supplier. However, according to
A.H. (2013), PNJ has been allowed to import gold itself, this leads to various choice for quality suppliers.

=> In conclusion, the power of suppliers on PNJ is medium.

-According to PNJ (2020), in its 2019 Annual Report, consultation activities has been conducted by PNJ to aware
of the concerns of the supplier:

CONSULTATION ACTIVITIES CONCERNS OF SUPPLIERS PNJ’S ACTS

- Negotiate and communicate
directly with suppliers and
partners.
- Disclose information
transparently by bidding prices,
competitive bidding.
- Measure and manage suppliers’
results.
- Share information,
opportunities and threats from
the market (customers,
competitors, substitutes,
technologies…), long-term
purchasing plan.
[ CITATION PNJ201 \l 1033 ]
- Cooperate for development,
ensure stable input with
suppliers.
- Strictly implement the signed
terms, being open and
transparent in cooperation.
- Ensure trustworthiness in
business.
- Ensure fairness among partners
and suppliers.
- Make timely payments.
- Ensure a stable supply chain,
maintain mutually beneficial
partnership.
- Seize business opportunities
and reduce risk in production
and other market risks.

1.5. THREAT OF ENTRY (POTENTIAL COMPETITORS)

MARKET STRUCTURE Monopolistic competition because:
- Firms do not have too high market power
7
 - Different brands provide different prices
- Advertising and branding play essential roles
- There can be abnormal profits in short-time,
however, in long-term, general profit will be
balanced
[ CITATION Han19 \l 1033 ]
BARRIER TO ENTRY - Difficult to access bank loans
- Difficult to get permission to import raw gold for
producing
- High tax for exporting goods when firms want to
expand market.
[ CITATION ANT16 \l 1033 ]
BARRIER TO EXIT - Require specific equipment and expert that
difficult to change or shift to other industry.
- Buy back policy, this helps to guarantee
customer’s benefits; however, this brings firms
many difficulties if they want to exit market.
[ CITATION PNJ19 \l 1033 ]
 Monopolistic competition has high threats of potential competitors, however, because of strong
barriers to entry and exit that the researcher has concerned above, PNJ’s market has low threats
of potential competitors.

2. MACRO ENVIRONMENT (through PESTEL analysis)

2.1. POLITICAL FACTOR
- In the past, the majority of Vietnamese’s demand on gold is because of storing and investing purpose.
However, in order to maintain the value of local currency, the government has made effort to prevent
goldenization and dollarization. Many results have been achieved through the government’s continuous effort.

[ CITATION ANT16 \l 1033 ]

8
 - The State bank of Vietnam has possessed exclusive right to import and export gold, moreover,
many policies have been enacted to tighten quality manager process.

[ CITATION ANT16 \l 1033 ]

=> Analyze macro environment, political factor brings PNJ lots of opportunities. The government has wiped out
the majority of small business because of requirement for infrastructure, capital and so on. This leads to the
tendency of possessing more market share of big business. PNJ is a particular example.

2.2. ECONOMIC FACTOR

According to the General Statistics Office (2021), the 2020 is a difficult and challenging year for the whole word.
The word economic has been estimated to greatly decrease, the growth of big companies is negatively affected.
However, suffering from negative effect of Covid-19, Vietnam still maintain its GDP growth at 2.91%.

Figure 3 GDP GROWTH RATE IN THE PERIOD 2011-2020 [ CITATION Gen21 \l 1033 ]

“Vietnam’s trade surplus reached a record high (19.1 billion USD) and trade balance maintained trade surplus
for 5 consecutive years (trade surplus of goods in 2016-2020 period respectively: 6 billion USD; 1.9 billion USD;
6.5 billion USD; 10.9 billion USD; 19.1 billion USD)” [ CITATION Gen21 \l 1033 ]

-> In the beginning period of Covid-19, when the majority of people are worrying about the future, PNJ had kept
optimistic opinion for the future, the company used that opportunity to access suitable ground for expanding its
market with low price.

9
 -> After the rapidly recover from Covid-19, the amount of people in middle class as well as the
income of them has greatly increased. This leads to the increase in accessory demand, which is an appreciate
opportunities for PNJ

[ CITATION Tha20 \l 1033 ]

=> According to the growth of Vietnam’s economic, PNJ has set up its profit target after tax at 1.230 billion VND.
Up to 2/2021, the net profit of PNJ in 2021 is 380 billion VND [ CITATION Thu21 \l 1033 ]

=> Economic factor of macro environment in Vietnam market is an opportunity for PNJ.

2.3. SOCIAL FACTOR

According to General Statistic Office (2019), the population of Vietnam is approximately 91 million people from
15-64 years old with 51% of which are woman. This creates a huge customer force.

In long-term, Vietnam market is a stable target for PNJ. In the statistic of WGC (2019), the amount of gold
accessory consuming in Vietnam is lower than other countries in Southeast Asia. However, that result was
because of low GDP of Vietnamese when compared with other countries. In total, Vietnamese has used
0.3%/GDP for accessory spending, this is a high number that proves Vietnamese’s behavior in gold spending.

=> Depend on Vietnam’s culture, social factor of Vietnam market is an opportunity for PNJ.

2.4. TECHNOLOGY FACTOR

In the view of Mrs. Cao Thi Ngoc Dung (2018), board’s chairman of PNJ, preparation is not enough, firms have to
be ready for the change and “transformation” because of 4.0 Industrial Revolution.

PNJ’s R&D Department has discussed, researched and set up necessary preparation depend on reality
experiment from experts on aspects: AI, Robotics, Social Media and Blockchain to apply them on PNJ’s
operation process.[ CITATION PNJ181 \l 1033 ]
10
 According to Mr. Le Tri Thong, CEO of PNJ, “At the end of 2019, PNJ’s Ecommerce achieved
extraordinary results. Customers have changed their shopping process. Customers start at searching on PNJ’s
website, then information on Internet, digital environment and they just come to PNJ’s store at last.” [ CITATION
PNJ202 \l 1033 ]

=> Long-term vision of the Bod of PNJ has made 4.0 Digital Era as a appreciate opportunity for the company to
make a huge push forward.

2.5. ETHICAL FACTOR

- Plating plays an important role in accessory industry. PNJ is not an exception, many of the company’s product
is gold-plated, chrome-plated, metal-plating and so on. However, plating process discharges a large amount of
waste which is hazardous to human and the environment. If there is no thorough treatment, it will be
unpredictable consequence. PNJ has 2 giant accessory factories with produce the number of products is 8 times
higher than the total number of products of SJC and DOJI. This causes PNJ many environment problems.

=> This is a big threat for PNJ to overcome.

2.6. LEGAL FACTOR

- DECREE NO. 24/2012/ND-CP OF APRIL 03, 2012, ON GOLD BUSINESS ACTIVITIES.

- CIRCULAR NO. 22/2013/TT-BKHCN OF SEPTEMBER 26, 2013, ON MANAGEMENT OF MEASUREMENT IN GOLD

TRADING AND QUALITY MANAGEMENT OF GOLD JEWELRY ON THE MARKET.

=> According to Decree no.24/2012/ND-CP, The State bank of Vietnam has possessed exclusive right to import
and export gold. This causes the existence of lacking the quality of gold product. Moreover, in order to tighten

gold product quality managing process, the government has enacted Circular No.22/2013, the circular requires
businesses to satisfy requirements to be allowed to operation in gold market.

[ CITATION Bui21 \l 1033 ]

11
 => The government has wiped out the majority of small businesses in gold market. Large
companies have chance to possess more and more market share. PNJ is one example. Moreover, according to
A.H. (2013), PNJ has allowed to import gold itself, this is a tremendous advantage of PNJ to handle the
opportunity.[ CITATION Bus16 \l 1033 ]

III. INTERNAL ENVIRONMENT (the company’s strengths, weakness and its threats,
opportunities relevant to external factors)
1. STRENGTH
- PNJ is a strong luxury quality brand with high reputation. Moreover, When PNJ was awarded the Recipient of
Jewelry Retailer in Asia at the 2019 JNA Awards ceremony in Hong Kong honoring the best businesses and
individuals in the Asian jewelry industry, it became a breakthrough in the Vietnamese jewelry industry's growth.
[ CITATION PNJ201 \l 1033 ]. According to PNJ’s 2019 Annual Report, with the results collected, PNJ has surpassed
many famous and big brands in the jewelry industry of continents from Hong Kong, China, Thailand, India, ... to
be awarded by JNA Awards Judges including leading prestigious experts in jewelry, fashion and the World Gold
Council in Asia to be the best retailer in Asia. This is a strong evidence which proves the outstanding brand
power of PNJ.

12
 Figure 4 2019 JNA AWARDS[ CITATION PNJ201 \l 1033 ]

- PNJ has possessed the highest market share in gold accessory business. According to HSC (2019), in 2019, PNJ
possessed 27% of gold accessory market share. Moreover, marketing strategies, logistic system and distribution
system of PNJ has created a huge gap with the company’s competitors. Annual produce power of PNJ is 8 times
higher than the total product of DOJI and SJC[ CITATION ndh18 \l 1033 ]. Because of outstanding PNJ’s position
and size, threats from current competitors are small.

- According to PNJ (2020), in 2020, 6 PNJ Artisans were honored the Award of Excellent Jeweler by the
President-PNJ, the cradle that gave birth to elite artisans in the jewelry industry. Back to 30 years ago, when
there was no jewelry training school in the country, with the desire to build a good workforce, PNJ was a
pioneer in studying abroad, inviting experts and expanding the workforce by in-house training programs. Most
of the artisans honored this time are the teachers who have directly taught and trained hundreds and
thousands of jewelry craftsmen and students at PNJ. Artisans are fully experienced with extensive knowledge.
At the same time, they are able to combine traditional crafting techniques and modern machinery to teach the
juniors who are working and studying jewelry making at PNJ. Until now, PNJ has more than 1,000 skilled
jewelers- a high quality human resource which brings an unpredictable advantage for the firm. [ CITATION PNJ203
\l 1033 ]

13
Figure 5 PNJ, the cradle that gave birth to elite artisans in the jewelry industry [ CITATION PNJ203 \l 1033 ]

- Achieved Asian vision- “We aim to become the leading jewelry fashion brand, with core attributes being
Creativity, Fineness, and Reliability.” [ CITATION PNJ201 \l 1033 ]. This is a proper and ambitious goal, however,
insist on Asian vision, PNJ has planned orientation strategies and developed, improved the company day by day.
As a result, honored as the Recipient of Jewelry Retailer in Asia in JNA Award, this is the reward for the whole
challenging progress that PNJ suffered.
14
 - Long-term vision on developing technology is another strength of PNJ. Since 2013, PNJ has
invested 8.3 million USD to develop and operate ERP system for human resource management [ CITATION ERP \l
1033 ]. According to HSC (2019), have a huge technology system gap, however, PNJ has not stopped its
development because of its success, the company has invested more in technology. Continue with 6.5 million
USD for ERP system and 1.8 million USD for CRM system and RFID system to improve analyze ability. This allows
the company to understand and satisfy customer’s tastes and behaviors. [ CITATION HSC19 \l 1033 ]

Figure 6 ERP system[ CITATION PNJ201 \l 1033 ]

- By the end of 2019, PNJ jewelry retail network reached 346 stores, increasing 58% compared to

2016. Simultaneously, PNJ appeared in Ho Chi Minh City, Da Nang, Hanoi respectively and PNJ

Watch network increased to 26 stores. The number of wholesale customers has reached more

than 3,000 and the products have been exported through 13 countries and territories. [ CITATION PNJ201 \l 1033 ]
The huge number of stores and giant sale network is a base for PNJ to introduce and distribute the company’s
product for its target customers.

15
Figure 7 PNJ's store chain in VN [CITATION PNJ211 \l 1033 ]

- PNJ has possessed private closed produce and distribute system that contributes to the security of products
and higher the company’s competitive advantage.[ CITATION HSC19 \l 1033 ]

16
 2. WEAKNESS
- Low market share in gold bar market.

- Low market share in the North side of Vietnam. According to Mr. Le Tri Thong, CEO of PNJ, the company
targets on the whole country, however, in the past, PNJ prioritized the South side of Vietnam. This leads
company having decision to prioritize more the North side market. [ CITATION LeT19 \l 1033 ]

- The risk of gold price fluctuation.

- Difficulty gaining traction in high-end segments.

- Silver jewelry is not competitive with premium jewelry products. In contrast to gold jewelry, silver jewelry does
not seem to have garnered popularity among Vietnam’s young generation. The number of silver stores has been
stable with no growth

- Gold bars sales are low margin.

[ CITATION Smi19 \l 1033 ]

3. OPPORTUNITY
- The retail market has a positive outlook thanks to great economic growth. The income of middle, high class
and the number of middle class are growing very fast. This leads to the increasing demand on luxury accessory.
According to Long (2020), the middle-class income has risen steadily, with an annual compound growth rate of
9.2 percent expected for the period 2018-2023.
- PNJ’s major rivals are well behind it and are struggling to find a way to compete. [ CITATION Smi19 \l 1033 ]
- PNJ has a lot of room when the brand segment is still low.[ CITATION Smi19 \l 1033 ]

4. THREAT
- Sudden recession and/or spike in gold prices could dampen demand. [ CITATION Smi19 \l 1033 ]

- Disruption could heat up as e-commerce paves the way for customers to access international luxury brands.
[ CITATION Smi19 \l 1033 ]

17
 - Since goods containing more than 95 percent gold are subject to a high export tax, PNJ is forced
to export products with a low percentage of gold, restricting the export market. [ CITATION HSC19 \l 1033 ]

IV. DECISION:
In the beginning period of Covid-19, the company had researched to invest more in real estates.

- PNJ maintained an ambitious outlook for the future during the early stages of Covid-19, when the majority of
people were concerned about the future. The company took advantage of this opportunity to gain access to
appropriate land for expanding its business at a proper cost.[ CITATION Tha20 \l 1033 ]

- As the economic factor, the demand on accessory of Vietnamese is growing, PNJ doesn’t want to lose this
chance to expand its market. Moreover, in order to overcome its weakness in lacking of market share in North
side market, PNJ prioritized in expand its store in Hanoi. [ CITATION Van20 \l 1033 ]

+ In 12/12/2019, following the success of first PNJ Wholesale Center in the South, PNJ successfully opened the
first Wholesale Center in the North at 26 Hang Muoi - 23 Nguyen Huu Huan, Ly Thai To Ward, Hoan Kiem
District, Hanoi. [ CITATION PNJ191 \l 1033 ]

Figure 8 Opening ceremony of Wholesale Center in HN [ CITATION PNJ191 \l 1033 ]

18
 + Moreover, with strength in technology, PNJ has installed smart camera system in Wholesale
Center in HN. All information about the movement of the customer is recorded and analyzed on the data
resource. Then, PNJ's system will research to maximize the experience satisfaction for customers, arrange the
staff position, determine the locations and corners of the space that customers rarely visit to reorganize the
store layout.[ CITATION PNJ191 \l 1033 ]

COMPARE DECISION FROM 2 DIFFERENT BUSINESS IN THE SAME CONDITION OF EXTERNAL ENVIRONMENT-
POLITICAL FACTOR
PNJ SJC
- The government has made efforts to avoid goldenization and dollarization in
order to preserve the value of the local currency. The government's continuous
effort has yielded numerous results. [ CITATION ANT16 \l 1033 ]
SITUATION - The State Bank of Vietnam has sole authority to import and export gold, and
numerous policies have been implemented to tighten the quality control process.
Moreover, SJC has been allowed to exclusive produce gold bar.[ CITATION
ANT16 \l 1033 ]
- Shift PNJ’s major product from gold - SJC only produced and invested on
bar to accessory from gold, silver and products which the firm have
Decision
jewelry. Aim to export its product insist monopoly on. Focus on spreading its
on Asian vision. product interior market.
- In 2019, according to Kieu (2020), - In 2019, according to Kieu (2020),
total income of PNJ is 17.001 billion total income of SJC is 23.127 billion
VND and its gross profit is 1.194 billion VND. However, SJC’s gross profit is only
Result
VND approximately 51 billion VND.

19
 Figure 9 Profit margins of PNJ and SJC[ CITATION Dao18 \l 1033 ]
- Focusing on marketing and
Ecommerce network
- Steadily adapt to the change in
behavior of consumer.
- Long-term vision of the BOD
- Skilled human resources who
Reason studied abroad. This allows PNJ
always updates with the lastest
trend, style of the world.
- Flexible BOD that always aims to
refresh and innovate. This leads to
the keeping move on of PNJ
[ CITATION PNJ18 \l 1033 ]
- Insist on its monopoly on
producing gold bar. They focused on
researching and developing gold bar
producing progress. This cause SJC
missing out the changing of
consumer’s demand.
- Low adaptability.
- The company depended too much
on the government, which cause
them many difficulties if they want
to change or innovate the system.
- Limited in marketing ability.
[ CITATION Dao18 \l 1033 ]

 Strategic business plans of an business is modified and adjusted depend on both internal and external
factor. In the same external condition, the orientation bases on internal factor will affect consequence.
By combining both internal and external factors properly, the company can define suitable path for the
firm to move on.

20
D. CONCLUSION
The researcher analyzed PNJ’s external and internal environment depends on Porter’s Five Forces, PESTEL
analysis and SWOT analysis. Based on micro environment analysis, the researcher pointed out the power of
current competitor, potential competitor, substitute product, buyer and supplier that effect on the business.
According to macro environment, the report showed opportunities and threats that PNJ gets from political,
economic, social, technology, ethical and legal factors. The researcher also analyzes internal environment of PNJ
through SWOT analysis. By combining internal and external properly, PNJ has had strategic business plan to lead
the development of the company. According to the report, the researcher believes that PNJ has a stable growth
speed and PNJ stock is worth one for investment in long-term plan.

E. REFERENCES

References
1. A.H., 2013. PNJ và VJC được cấp phép nhập khẩu vàng nguyên liệu. [Online]
Available at: https://tuoitre.vn/pnj-va-vjc-duoc-cap-phep-nhap-khau-vang-nguyen-lieu-568212.htm
[Accessed 23 4 2021].

2. ANTV, 2016. Cục truyền thông công an nhân dân. [Online]

Available at: https://www.antv.gov.vn
[Accessed 25 4 2021].

21
 3. Bao, 2019. PNJ. [Online]
Available at: http://tuyendung.pnj.com.vn/hoat-dong-noi-bo/ban-tin-pnj/nhin-lai-pnj-sau-su-co-erp-
khong-co-su-chuyen-doi-nao-la-de-dang-nhat-la-voi-mot-doanh-nghiep-lon-.35a53c82/vi
[Accessed 28 4 2021].

4. Bui, V., n.d. Thuvienphapluat. [Online]

Available at: https://thuvienphapluat.vn/
[Accessed 26 4 2021].

5. CafeF, 2021. CafeF. [Online]

Available at: https://cafef.vn/
[Accessed 21 3 2021].

6. Cao, D., 2015. PNJ. [Online]

Available at: https://www.pnj.com.vn/uploads/old/2015/04/3%20-%20BC%20ket%20qua%20kinh
%20doanh%20nam%202014.pdf
[Accessed 20 4 2021].

7. Dam, K. V. N., Tran, T., Ton, T. & Nguyen, T., 2017. PHAN TICH VE CTY CO PHAN VANG BAC DA QUY SJC.
[Online]
Available at: https://text.123doc.net/document/3387759-phan-tich-ve-cong-ty-co-phan-vang-bac-da-
quy-sjc.htm
[Accessed 28 4 2021].

8. General Statistic Office, 2021. Tổng cục thống kê. [Online]

Available at: https://www.gso.gov.vn/
[Accessed 25 4 2021].

9. Hang, H., 2019. vietnambiz. [Online]

Available at: https://vietnambiz.vn/canh-tranh-doc-quyen-monopolistic-competition-la-gi-vi-du-ve-canh-
tranh-doc-quyen-20191028110355692.htm
[Accessed 25 4 2021].

22
 10. HSC, 2019. Dautucophieu. [Online]
Available at: https://dautucophieu.net/khuyen-nghi-dau-tu-ctcp-vang-bac-da-quy-phu-nhuan-pnj/
[Accessed 28 4 2021].

11. Le My, 2018. PNJ. [Online]

Available at: http://tuyendung.pnj.com.vn/tin-tuc/ban-tin-pnj/pnj-transformer-voi-ceo-le-tri-
thong.35a540c4/vi
[Accessed 26 4 2021].

12. Le, T., 2019. PNJ. [Online]

Available at: https://www.pnj.com.vn/ceo-pnj-le-tri-thong-pnj-dang-vuon-ra-the-gioi-chung-toi-cung-
cac-doanh-nhan-tre-se-chung-tay-xay-dung-viet-nam-hung-cuong.html
[Accessed 28 4 2021].

13. Loan, K., 2017. BÁO ĐIỆN TỬ NƯỚC CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM. [Online]
Available at: https://baochinhphu.vn/
[Accessed 21 4 2021].

14. ndh, 2018. PNJ. [Online]

Available at: https://www.pnj.com.vn/pnj-nhung-nen-mong-cho-su-but-pha-tang-truong.html
[Accessed 28 4 2021].

15. Nguyen, P. & Nguyen, T., 2021. Nhân dân điện tử. [Online]
Available at: https://nhandan.com.vn/nhan-dinh/vi-the-va-co-do-kinh-te-viet-nam-
631311/#:~:text=Theo%20B%E1%BB%99%20tr%C6%B0%E1%BB%9Fng%20Nguy%E1%BB%85n%20Ch
%C3%AD,USD%20%C4%91%E1%BB%A9ng%20th%E1%BB%A9%206%20ASEAN.
[Accessed 22 4 2021].

16. PNJ, 2017. PNJ. [Online]

Available at: https://www.pnj.com.vn/
[Accessed 17 3 2021].

23
 17. PNJ, 2018. Những nền móng cho sự bức phá tăng trưởng. [Online]
Available at: https://www.pnj.com.vn/pnj-nhung-nen-mong-cho-su-but-pha-tang-truong.html
[Accessed 22 4 2021].

18. PNJ, 2018. PNJ. [Online]

Available at: https://www.pnj.com.vn/pnj-tiep-tuc-dong-hanh-cung-hawee-trong-dien-dan-cong-nghe-
4.0.html
[Accessed 26 4 2021].

19. PNJ, 2019. PNJ. [Online]

Available at: https://www.pnj.com.vn/chinh-sach-bao-hanh-va-thu-doi.html
[Accessed 25 4 2021].

20. PNJ, 2019. PNJ. [Online]

Available at: https://www.pnj.com.vn/pnj-khai-truong-trung-tam-ban-si-mien-bac.html
[Accessed 28 4 2021].

21. PNJ, 2020. Annual Report. [Online]

Available at: https://www.pnj.com.vn/images/quan-he-co-dong/2020/BAOCAOTHUONGNIEN-2019-EN-
view.pdf
[Accessed 18 3 2021].

22. PNJ, 2020. PNJ. [Online]

Available at: http://tuyendung.pnj.com.vn/tin-tuc/ban-tin-pnj/pnj-transformer-voi-ceo-le-tri-
thong.35a540c4/vi
[Accessed 26 4 2021].

23. PNJ, 2020. PNJ. [Online]

Available at: https://export.pnj.com.vn/news/6-pnjp-artisans-were-honored-the-award-of-excellence-in-
the-jewelry-industry/
[Accessed 28 4 2021].

24. PNJ, 2020. STRATEGIC BUSINESS PLAN PHU NHUAN JEWELRY JOINSTOCK COMPANY. [Online]
Available at: https://www.pnj.com.vn/images/quan-he-co-dong/2020/12e-

24
 Dinh_huong_hoat_dong_2020_V2-Final-ENGLISH.pdf
[Accessed 17 3 2021].

25. PNJ, 2021. Annual Report. [Online]

Available at: https://www.pnj.com.vn/
[Accessed 19 4 2021].

26. Smith, M. et al., 2019. yuanta. [Online]

Available at: https://yuanta.com.vn/wp-content/uploads/2019/03/PNJ_Initiation-report_Final-1.pdf
[Accessed 28 4 2021].

27. Thanh Long, 2020. Vietnamfinance. [Online]

Available at: https://vietnamfinance.vn/nganh-trang-suc-dieu-dung-vi-covid-19-co-hoi-nao-cho-pnj-
20180504224245826.htm
[Accessed 25 4 2021].

28. Thuy Vinh, 2021. Dau tu chung khoan. [Online]

Available at: https://tinnhanhchungkhoan.vn/nam-2021-pnj-muc-tieu-loi-nhuan-gan-1-230-ty-dong-co-
tuc-20-post265984.html
[Accessed 25 4 2021].

29. Van, 2020. PNJ. [Online]

Available at: http://tuyendung.pnj.com.vn/tin-tuc/ban-tin-pnj/tong-giam-doc-pnj-tham-vong-chinh-
phuc-khach-hang-mien-bac.35a53f0e/vi
[Accessed 28 4 2021].

30. VNDIRECT, 2021. VNDIRECT. [Online]

Available at: https://trade.vndirect.com.vn/chung-khoan/hose
[Accessed 21 3 2021].

31. Vu, D., 2018. VnEconomy. [Online]

Available at: https://vneconomy.vn/cung-kinh-doanh-vang-vi-sao-sjc-lai-chua-bang-mot-phan-cua-pnj-
20180502184214568.htm
[Accessed 20 4 2021].

25
 32. WGC, 2021. World Gold Council. [Online]
Available at: https://www.gold.org/what-we-do/investing-gold/why-invest-gold
[Accessed 22 4 2021].

F. APPENDIX
Figure 1 The power of stakeholders (PNJ, 2020).......................................................................................................3
Figure 2 Profit margins of PNJ and SJC (Vu, 2018).....................................................................................................4
Figure 3 GDP GROWTH RATE IN THE PERIOD 2011-2020 (General Statistic Office, 2021)........................................9
Figure 4 2019 JNA AWARDS (PNJ, 2020)..................................................................................................................13
Figure 5 PNJ, the cradle that gave birth to elite artisans in the jewelry industry (PNJ, 2020)................................14
Figure 6 ERP system (PNJ, 2020)..............................................................................................................................15
Figure 7 PNJ's store chain in VN (PNJ, 2021)............................................................................................................16
Figure 8 Opening ceremony of Wholesale Center in HN (PNJ, 2019)......................................................................18
Figure 9 Profit margins of PNJ and SJC (Vu, 2018)...................................................................................................20

26