Table of Contents

Introduction............................................................................................................................................................................. 4

LO1. Analyze the impact and influence which the macro environment has on an organization and its business
strategies............................................................................................................................................................................. 4

1. Identify the strategic context of the company:................................................................................................................4

2. Carry out the macro environmental audit for the chosen company by using PEST/PESTLE framework..........................5

LO3. Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector..........8

1. Carry out the industry audit for the chosen organization by using relevant analytical tools/models (e.g. the industry
life cycle analysis, Porter’s 5 force model)...........................................................................................................................8

2. Based on all external analyses above, identify and analyze the main opportunities and threats (O&T from SWOT) that
the company is currently facing.........................................................................................................................................10

Conclusion..............................................................................................................................................................................11

Reference....................................................................................................................................................................... 12

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 Introduction:

“Nowadays, business strategy is really ìnormation in business. Especially for students who are studying business
administration like me. This assignment focuses on models, concepts and useful technical tools to perform an
internal and external audit of an organization. Furthermore, I will know how to conduct stakeholder analysis
and understand the significance of the analysis to the strategic planning process. Furthermore, I chose Viettel
company to analyze and apply the theory in my assignment”.

LO1. Analyze the impact and influence which the macro environment has on an organization
and its business strategies.

1. Identify the strategic context of the company:

“Viettel Military Industry and Telecommunication Corporation is

a defense economic enterprise of the Military Industry and
Telecommunications Group, established under Decision No.
2079/2009 / QD-TTg of the Prime Minister signed on December
14. 2009 100% capital of the state, is responsible for inheriting
the rights, legal obligations and legitimate interests of the
Military Telecom Corporation. Viettel Military
Telecommunications Corporation is exercised by the Ministry of
Defense and is a military business enterprise in the field of post
- telecommunications and information technology. With the slogan "Say it your way", Viettel always strive to
grow steadily during the operation. Viettel is Vietnam's largest telecommunications and information Technology
Company and one of the fastest-growing telecommunications companies in the world and one of the top 15
telecommunications companies in the world global number of subscribers. The strategy of Viettel Group in the
future is to continue to develop IT applications to include in all fields of social life and materialize in many
foreign markets, to become a global corporation, located in the 20 largest telecommunications companies in the
world. Other than Telecommunications, Viettel also has expertise on Hi-tech Research and Manufacturing,
Postal Services, Construction, Commerce, Importing and Exporting, IDC and so on”. (Vnr500.com.vn, 2019).

Website of Viettel: http://viettel.com.vn/en

Head Office: No.1 Tran Huu Duc, My Dinh 2, Tu Liem, Hanoi, Vietnam

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Vision of Viettel. With a vision to 2020, Viettel hopes to become Asia's leading equipment manufacturing group
in electronic telecommunications, IT and automatic control. Products manufactured by Viettel must be owned
from A to Z, from components to modules, software and systems. Revenue from research, development and
production is $ 1 billion. The objective of Viettel. Viettel wants to become the number 1 information and
telecommunication technology company in Vietnam. In addition, it brings information technology and
telecommunications into every field in Vietnam.

Mission & Values: Caring – Innovator

Pioneering in innovation and creation. Listening to and understanding in order to serve the people. Customers
are cared as separate individuals. We listen to and try to understand each customer so as to provide tailored
services that most come up to their demands.

Business development goes with social responsibility: As the development of society is the foundation for
business growth, companies should take action to improve and develop the society in which they operate in.
Human resources are the key to development. Each employee should be happy and play a creative role;
therefore, a good working environment is essential.

The strategy of Viettel Group in the period of 2018 - 2030 is to maintain a growth rate of 10-15%, become a
global business technology group, and continue to maintain the leading position in Vietnam.
Telecommunications and high-tech industry, becoming the top 150 largest enterprises in the world by 2030,
including top 10 in Telecommunications and IT; Top 20 in Electronics and Telecommunications Industry; Top 50
for Industry safety and network security. Telecommunication and information technology revenue structure
accounts for 55%; 25% of hi-tech industry, 10% for innovation and innovation and 10% for the traditional sector.
Viettel is determined to be at the forefront of the 4.0 revolution for the economy with a leading and spreading
role in technology, services, business models, production research and products. It focuses on 4.0 projects for e-
government, education, agriculture, smart cities, etc. from the central to local levels, to each field of life. Viettel
also continues to maintain a model model of state-owned enterprises, taking on difficult tasks of national
mission. (Viettelrd.com.vn, 2019)

2. Carry out the macro environmental audit for the chosen company by using PEST/PESTLE framework.

PESTLE is a strategic planning tool used to assess the impact of possible political, economic, social,
technological, environmental and legal factors on a project. It involves an external environmental review
organization before starting a project. It is a good method to ensure a person is aware of all the potential risks
and problems. PESTLE Analysis is an analysis tool for strategic business planning. PESTLE is a strategic framework

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to understand the external effect on a business or on any project. PESTLE: Political, Economic, Social,
Technological, Legal, Environmental. (Rastogi & Trivedi, 2016)

The first is the issue of Political and Legal. The politics of our country today is highly appreciated for its stability,
ensuring the stable operation of Viettel, creating a safe mentality when investing. Take part in the WTO, become
a member of the UN Security Council, globalizing, expanding foreign trends and integrating into the world
economy is a company's opportunity to join the global market. Regulations on administrative procedures are
increasingly being implemented, business licenses are being increasingly shortened. The Government pays great
attention to the efficiency of public administration, eliminating barriers in business activities. This is an
advantage for VIETTEL Company to reduce barriers to entry. Current Vietnamese laws tend to be improved.
Business law is increasingly being improved. The Enterprise Law has a great impact on all businesses thanks to
the legal framework of the law under the state management of economic inspection.

Next is Economic. Viettel is a telecommunications service company with increasing population income, Viettel's
greater accessibility to services is an occasion to help the company make bigger its business. Moreover, the
growing need for telephone and Internet services has allowed our company to expand the scale and business
activities in the service area. Increasing inflation, influence the lives of a large part of the population with an
increase in the consumer price index up to 11.75% in 2015 and 2016, this index is more than 18%. In 2017,
inflation reduced but there is still a significant influence on Vettel's activities. Monetary tightening policy and
credit growth reduction to curb inflation have made it difficult for many businesses to operate because Viettel
has met many difficulties because of its trading plan. The global economic downturn and the crisis from mid-
2008 up to now have reached the bottom, which greatly affects Viettel's business activities. Profits did not meet
the company's target because the economic crisis caused people to restrict spending.

So, with the current macroeconomic circumstance and future patterns, it has brought both opportunities and
advantages for the field of operation of VIETTEL Company. The demand for telecommunications services
increases, but also causes many difficulties: must find ways to change technology and management methods to
reduce costs, reduce goods costs and client care, furious competition.

The following is Social. “Since population make markets. Vietnam's current population is 97,778,918 as of
November 16, 2019 according to the latest UN figures. Vietnam's population currently accounts for 1.27% of the
world's population. Vietnam is ranked 14th in the world in the population rankings of countries and territories.
The population density of Vietnam is 315 people / km2. With a total land area of 310,060 km2. 35.92% of the
inhabitants alives in urban (34,658,961 people in 2018). The average age in Vietnam is 32 years old”.
(DanSo.Org, 2019).

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Businessmans are usually concerned about population growth rates in different cities, regions and countries. An
important factor affecting business is population growth. Especially for telecommunications and technology. In
addition, today, students and young people have the largest demand for telecommunications and internet
services among Viettel's client groups. Viettel has launched packages and services suitable for each object (such
as Tomato package for students, MiMax unlimited 3G package, etc.)

We can see that Vietnam is an extremely interesting market with Viettel's market with its large population and
fast growth. Vietnam's educational performance is relatively high, especially in urban areas. Graduated from
universities, colleges, etc. is very high compared to the whole country. In addition, Vietnamese intellectual labor
is technologically superior - so this is a good human resource for the company. In addition, the demand for
telephones, Internet services, etc.The number of people today has increased significantly, so this is an
opportunity to help Viettel develop business.

The fourth is the technological factor: New technology is created with high speed, their innovation life cycle is
extremely fast, and the performance is improved to promote Viettel's application in broadcast communication
(the field where mechanical components occupy an important position).

Application of new technologies helps:

•Cost savings

• Improve service quality and stability

• Expanded network coverage

• Applying new technology, the entire coastal area near Vietnam has been covered by mobile phone networks
from 70-90 km, especially in some areas, the land coverage is more than 200 km.

• FTTx fiber optic transmission technology with high and stable speed of upload and download has the
opportunity to gradually replace ADSL and dominate the broadband Internet market.

• Operating telecom electronic equipment production lines capable of producing many types such as mobile
phones, tablets, all-in-one computers, equipment

• In addition, recently, Viettel has officially announced the successful deployment of 4G technology, and
announced the 4G technology testing program for customers in Hanoi and Ho Chi Minh City in the near future.

The last is the environment. Natural factors include: geographical location, climate, weather, etc.These factors
have a great influence on the quality of services and investment in Viettel's telecommunications infrastructure.
International environmental factors: Vietnam joined the WTO, signed the Vietnam-US Trade Agreement and
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participated in free trade agreements to open the postal and telecommunication service industry for a large
market. Specifically in 2009, Viettel officially invested in Laos and Cambodia. Similar to the domestic market,
Viettel has led in infrastructure and subscribers in Cambodia with Metfone network, in Laos leading in network
infrastructure with Unitel network. 2017 revenue in Cambodia market reached 161 million US dollars, an
increase of 2.8 times compared to 2016. In Laos market reached nearly 61 million US dollars, an increase of 4.5
times compared to. By 2019, after nearly 10 years of operation, the mobile information network invested by
Viettel in Laos and Cambodia has become the largest network in terms of market share, customers and
networks. Currently, Viettel is continuing to expand investment in new and more difficult markets, namely Haiti,
Bangladesh, Peru and Mozambique with a total estimated population of 86 million - equivalent to Vietnam's
population.

LO3. Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to
a given market sector.

1. Carry out the industry audit for the chosen organization by using relevant analytical tools/models
(e.g. the industry life cycle analysis, Porter’s 5 force model).

Michael Porter’s Competitive Forces Model (commonly referred to as Porter's Five Forces Model) By far the
most widely used framework for assessing profitability in the industry. The combined qualities of the five
strengths have different goals depending on the business. Each of the five personal strengths is structural (size),
which affects the profit potential. All five forces
together determine the intensity of profits and
profits of the industry. The strongest forces
become important from a strategic point of
view. “Porter's model says that the structure of
an industry and the ability of businesses in that
industry to operate strategically depend on the
relative strength of the five forces: current
competition, potential competition, threats of
substitute products, buyer power and supplier
power. Each of these five forces will be tested
one after another. Businesses often use this
model to analyze whether they should enter a specific market or operate in a specific market. However,
because today's business environment is very "dynamic", this model can also be applied to search in a certain
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area that needs to be improved to make more profit. Government agencies, such as the United Kingdom's
Antitrust and Integrity Commission, or the U.S. Department of Justice and Antitrust, also use this model to
analyze which companies are good for the Company them or not.” (Swaan Arons and Waalewijn, 1999)

“The Porter’s five forces model of Viettel”

Firstly are suppliers: To be able to operate strongly in the field of telecommunications services requires a lot of
investment in equipment and find the best and most suitable supplier for the company. Furthermore, there are
changes in state policies and limited capital investment. It has financial suppliers such as associate companies,
MHB, Vinaconex and EVN. Besides, it also has a number of material and product suppliers such as AT&T (United
States), Blackbarry Nokia, Huawei (China), Ericsson (Sweden), Nokia Siement Network (Finland).

Secondly are buyers: Customer will be able to change to other carriers’ mobile service if the service of Viettel is
not good. Clients always want to use services high quality but the price must be cheap. Besides, clients are quite
sensitive and choosy. Therefore, both providing quality services and customer care are very significant.
Furthermore, Viettel must pay attention to customer feedback.

Next are potential entrants: Nowadays, with the financial advancement and the blast of data innovation,
human life is getting way better and portable phones are slowly getting to be an basic item in life. The engaging
quality of the portable data benefit industry is gigantic, with gigantic numbers of clients and tall benefits.
Especially or Vietnam market today, beside large mobile information service business such as Mobilefone,
Vinaphone and Viettel are having steady balance. Other businesses such as S-fone, Shortcut, etc. they have only
got a very small market share. So, potential participants to Viettel are not stressing.

The following are substitute markets: In expansion to mobile phones, internet is one of the fastest and most
effective methods of communication use today. So, the explosion of information technology has brought many
application and products to replace such things as: texting, calling through the internet. But presently,
computers and portable phones are being utilized in parallel and supporting each other. The utility of the
computer and web is exceptionally great and truly helpful, but it cannot supplant versatile phones and media
transmission administrations.

“Finally are industry competitors: Currently in Vietnam in 2018, the market share of the mobile network is
divided as follows: Mobifone 35%, Viettel 40%, Vinaphone 20%, S-phone 3%, EVN 2%. Thus, Viettel's main
competitors are Mobifone and Vinaphone. The telecom law of the government is also very strict to prevent
market devaluation of new businesses”. (123doc.org, 2019)

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 2. Based on all extenal analyses above, identfy and analyze the main opportunities and threats (O&T
from SWOT) that the company is curently facing.

SWOT model is a very useful tool for capturing and making decisions in any situation for any business
organization. Stands for 4 words Strengths, Weaknesses, Opportunities and Threats. SWOT provides a tool for
strategic analysis, review and evaluation of the position and orientation of a company or a business project.
SWOT is suitable for team work and analysis, used in business planning, strategy formulation, competitor
evaluation, marketing, product and service development, etc. The amount of analysis of a SWOT model depends
on the quality of information collected. Information should avoid subjective views from one side, so seek
information from all sides: management, customers, partners, suppliers, strategic partners, consultants, etc.
(Nguyễn, 2012)

First is the Opportunities of Viettel company. The economy is developing at a high rate and stable growth will
be a condition for improving people's living standards, building infrastructure and creating business conditions.
Besides, the high growth rate of telecommunication market, Viettel has the opportunity to expand the business
and develop the image of the company as economic growth is recovering. Moreover, Viettel is always supported
by the Ministry of Defense in providing internet services to customers. It is also supported by the Ministry of
Defense and the State in financial matters. Next is the Threat of Viettel. Today in Vietnam as of 2018, the
market share of mobile networks is divided as follows: “Mobifone 35%, Viettel 40%, Vinaphone 20%, S-phone
3%, EVN 2%. Therefore, Viettel's main competitors are Mobifone and Vinaphone. The telecom law of the
government is also very strict to prevent market devaluation of new businesses. Besides, with the economic
development and the explosion of information technology, people's lives are getting better and mobile phones
are gradually becoming an essential product in life. The attractiveness of the mobile information service
industry is enormous, with a huge number of customers and high profits. Especially the current Vietnamese
market, besides giant mobile information service businesses such as Mobilefone, Vinaphone and Viettel, is
taking solid steps. Therefore, if Viettel does not have a plan to develop its image, it is easy to lose customers.
Besides, Viettel's infrastructure is still low and it is almost impossible to own technology. Therefore, Viettel has
to spend a lot on improving the quality of its services.”. (123doc.org, 2019)

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 Conclusion:

In short, through this asignment, I understood the impact of the internal and external environment on the
company and the impact and impact of the macro environment on a given organization and its strategies. its. I
applied Porter's Five Forces model from evaluating the competing forces of a given market area for the
company I selected. Besides, I also clearly analyze the company's opportunities and threatens.

Reference
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CANH TRANH VE DICH VU. [online] Available at: https://123doc.org/document/15668-van-dung-mo-hinh-5-luc-
luong-canh-tranh-cua-m-porter-de-phan-tich-tinh-hinh-canh-tranh-ve-dich-vu-thong-tin-di-dong-cua-mobifone-
tren-thi-truong-viet-.htm [Accessed 13 Nov. 2019].

DanSo.Org. (2019). DansoVietNammoinhat (2019) - DanSo.Org. [online] Available at: https://danso.org/viet-

nam/ [Accessed 16 Nov. 2019].

Nguyễn, H. P. (2012). PhantichSWOTtrongchienluockinhdoanh. HaNoi: Thongtinvatruyenthong.

Rastogi, N. I. T. A. N. K., & Trivedi, M. K. (2016). PESTLE technique–a tool to identify external risks in construction
projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Swaan Arons, H. and Waalewijn, P. (1999). A knowledge base representing Porter's five forces model.
Rotterdam: RIBES, Rotterdam Institute for Business Economic Studies.

Viettelrd.com.vn. (2019). [online] Available at: http://viettelrd.com.vn/viettel-cong-bo-chien-luoc-giai-doan-40

[Accessed 13 Nov. 2019].

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doanh-nghiep/TAP-DOAN-CONG-NGHIEP-VIEN-THONG--QUAN-DOI-Chart--2-2017.html [Accessed 13 Nov.
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