ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 29/10/2020 DateReceived1stsubmission

Re-submissionDate DateReceived2ndsubmission

Student Name Hứa Thành Đạt Student ID GCS190333

Class GBS0814 Assessor name Nguyễn Thị Thanh Nhàn

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 Table of Contents
Introdution ....................................................................................................................................................................1
4 External environment and macroeconomic environment .......................................................................................1
4.1 PESTLE framework ...............................................................................................................................................1
4.1.1 General introduction ....................................................................................................................................1
4.1.2 Political environment....................................................................................................................................1
4.1.3 Economic environment .................................................................................................................................2
4.1.4 Social environment .......................................................................................................................................3
4.1.5 Technological environment ..........................................................................................................................4
4.1.6 Legal environment ........................................................................................................................................4
4.1.7 environmental problems ..............................................................................................................................4
4.2 Impacts of macroenvironment ..........................................................................................................................4
4.3 Recommendations ...............................................................................................................................................5
4.4 Trans-Pacific Partnership Agreement (TPP) - Advantages and disadvantages of joining TPP on the chosen
organization ...............................................................................................................................................................5
5. Internal environment and microeconomic environment ........................................................................................6
5.1 SWOT analysis ......................................................................................................................................................6
5.1.1 SWOT ............................................................................................................................................................6
5.1.2 SWOT strategy matrix ...................................................................................................................................7
5.2 Porter’s Five Forces Model ..................................................................................................................................7
6. Impacts of government policies ...............................................................................................................................8
6.1 Fiscal policy ..........................................................................................................................................................8
6.2 Monetary policy ...................................................................................................................................................9
6.3 Trade policy..........................................................................................................................................................9
Conclusion .....................................................................................................................................................................9
References .................................................................................................................................................................. 10
 Introdution
This report will present an overview of the external and internal factors that affect the economy of the
business. Mainly the macro environment and micro environment of FPT Digital Retail Joint Stock Company.
The micro environment includes factors such as competitors, asuppliers, stakeholders, investors,
acustomers,... and the macro aenvironment aincludes economic environmental factors, technology
environment, acultural environment,... This report also amakes a comparison between for-profit
aorganizations and non-profit organizations ain the context of functions, organizational astructure, goals and

atheir range of activities.

4 External environment and macroeconomic environment

4.1 PESTLE framework

4.1.1 General introduction

FPT digital retail joint stock company was established in 2012 in Vietnam. FPT Retail is currently
developing two retail chains, F.Studio By FPT is a chain of stores authorized by Apple at the highest level,
specializing in selling genuine Apple products and FPT shop which is a retail chain of digital devices such
as computers, laptops, mobile phones, accessories, ... with a total of 500 products in all 63 provinces in
Vietnam. In addition, FPT Retail is also developing FPT Long Chau which is a genuine pharmaceutical
retail chain and FBeauty is a genuine cosmetic distribution system (Frt.vn. 2020).

4.1.2 Political environment

The political situation together with the stability of Vietnam has decisive significance in economic
maintenance and development, solving job seeking to increase income for workers and increase consumer
demand. This has a positive impact on the strategic training and development of the Vietnamese corporate
economy in general and FPT Retail in particular. Although Vietnam boasts a stable government, there is a
risk of terrorism in the future. All of FPT retai's current political challenges in Vietnam can deal with are
growing contradictions in the government's weakening (Rahman. 2020).

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 4.1.3 Economic environment
The economic system is the means by which government or society organizes and distributes resources.
There are many types of economic system. Previously, Vietnam belonged to the type of command
economic system, but later on, Vietnam regained its freedom, so now Vietnam is a mixed economy. The
Vietnamese system in the past 30 years has had a remarkable development. From 2002 to 2018, GDP per
capita increased by 2.7 times and reached 2,700 USD in 2019. Thanks to that, the number of people out
of poverty is 45 million people (World Bank. 2020).

Ficture 4.1: GDP in Viet NAM

(Source: Data.worldbank.org. 2020)

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In 2020, all countries around the world will be very affected by the COVID-19 epidemic and Vietnam is no
exception. But fortunately, instead of Vietnam has a solidarity against the epidemic, it does not affect
much and is able to recover, but there are still a few businesses that go bankrupt or suffer heavy losses
because of this COVID-19 epidemic. Vietnam maintains an estimated GDP growth rate of 1.8% in early
2020 and is expected to reach 2.8% for the full year. But there are still a few businesses that go bankrupt
or suffer heavy losses because of this COVID-19 outbreak (World Bank. 2020).

Ficture 4.2: GDP per capita in Viet Nam

(Source: Data.worldbank.org. 2020)

GDP per capita in early 2020 is estimated at about 2,750 USD / person, but by the end of 2020, GDP per
capita may decrease and re-enter the recession caused by COVID-19 (World Bank. 2020). As GDP per capita
decreases, it will affect demand and the number of people buying FPT shop products

4.1.4 Social environment

As of October 2020, Vietnam has a total population of more than 97 million people (Worldmeter, 2020).
Buddhism and Christianity are the main religions, and Vietnamese is the main language in the country. Life
expectancy for men is 93 years, while for women it is 81 years (BBC News, 2019). The young generation in
Vietnam is dominated by a large number of customers, so more customers who are interested in
technology equipment and appliances will also benefit FPT Retail's development. Most Vietnamese people
have the habit of using mobile phones, laptops, high-tech items, so FPT Retail will be the perfect place for
everyone. Although Vietnam has made many economic progress over the years, a growing interest in class
is concerned. The gap between the rich and the poor is very far and is increasing (Rahman. 2020).

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 4.1.5 Technological environment
The eighth largest IT service provider in the world is Vietnam. The information technology industry that is trending
today are fintech, e-commerce, artificial intelligence, software outsourcing and education technology. This can be
the main factor for FPT Retail to create many opportunities and also many challenges that force FPT to study
carefully. As one of the inputs to the production process, it is an important factor for efficient and quality production.
In addition, the increasingly developed technology has helped this business easily create many unique products to
affirm the brand for the product. Thanks to the development of science, it has met the needs of providing products
to consumers (Rahman. 2020).

4.1.6 Legal environment

As a company operating in the field of retail electronic technology, FPT Retail is subject to the law on
policies and regulations in Vietnam such as: Enterprise Law, Securities Law, Commercial Law. Vietnam is
currently in the process of developing and integrating into the world economy, but the legal and legal
framework is still in the process of making efforts to develop and complete. Therefore, any changes,
interpretations, and current legal instructions can lead to adverse effects on the production and business
activities of the Company (Rahman. 2020).

4.1.7 environmental problems

Environmental issues do not have much impact on FPT retail. However, by 2020, the COVID-19 pandemic
has caused enormous damage to the revenue of this business, in addition. In addition, Vietnam is also one
of the countries with high levels of air and water pollution in the world, which also indirectly affects the
development of FPT Retail (Rahman. 2020).

4.2 Impacts of macroenvironment

The effects of the macro environment for each business are both positive and negative. The macro
environment is often based on basic factors such as economics, technology, politics, socio-culture, law and
nature. Posgative factors of the macro environment include the events that promote economic growth
within one country or several countries. For example, when FPT reatail discounts some products, many
people will buy discounted products to buy more products and retail services, because most consumers in
Vietnam prefer to buy discounted products. Therefore, when the demand for goods and services increases,
the suppliers of goods will enjoy increased revenue with the number of buyers and a high number of
consumers. If the profits of these companies increase, they will push the shares of these companies up
(vietnambiz. 2020).

These negative aspects of the macroeconomic environment for FPT Retail in 2020 have been greatly
affected, including events or events that may jeopardize FPT retail's economy. Political uncertainties, the
distribution of resources or property damage, unpredictable negative events such as the dangerous
epidemic COVID-19 of 2020, the global financial crisis of 2008 , ... It can have far-reaching effects on a

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national or global scale. There are also other negative factors such as flooding in central Vietnam in
October, which will reduce demand and make FPT Retail's revenue also affect (vietnambiz. 2020).

4.3 Recommendations

Constraints for FPT retail businesses are many. So this business needs to try and work together to
overcome difficulties. Using many tactics and plans to attract customers to buy products such as discounts,
creating advertisements, ... In addition, businesses need to create very important discipline when facing
difficulties in business, steadfast even. When facing difficulties, feel comfortable with change because
when facing difficulties, people tend to be dominated by many things around, lose control, fear of
instability and if not mentally prepared to deal Karma can be beaten by other competitors and eliminated
from the race.

4.4 Trans-Pacific Partnership Agreement (TPP) - Advantages and disadvantages of joining TPP on the
chosen organization

TPP, which stands for Trans-Pacific Strategic Economic Partnership, is a free trade agreement between 12
countries with the goal of regional economic integration. Asia-Pacific region. The 12 members of TPP
include: Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Canada, Peru, Singapore, Vietnam, the
US aand aJapan. aIn aaddition, aColombia, athe aPhilippines, Thailand, Taiwan and South Korea ahave aexpressed
interest in the TPP. The main goal of aTPP is to eliminate taxes and barriers on agoods and services aimported
and exported among amember countries (Ngoc, 2020).

The advantages of the TPP are that it ais easy to aapply for a avisa to enter amember countries, which acan
create more ajobs for people, aa cleaner and amore beautiful country, athanks to mandatory aenvironmental
requirements. Exporting products aand services to 12 amember countries awith very low tax arates and will
be eliminated in the afuture. Very beneficial for the textile and garment, aagricultural products. Technical
asupport and workmanship from adeveloped countries. In addition, apeople can also ause high quality

products awith low price but ahigh quality, in addition ato ensuring hygiene aand safety for afood items (Ngoc,
2020).

The downside of TPP ais the disadvantage from athe opening of service amarkets, which is also speculated
to acreate a great disadvantage afor Vietnamese businesses when joining TPP. Disadvantages from athe
enforcement of high requirements on environment, labor, competition, a... may cause some social

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consequences. And afinally there is aa disadvantage from the aopening of athe public procurement amarket
(Thuvienphapluat.vn, 2020).

5. Internal environment and microeconomic environment

5.1 SWOT analysis

5.1.1 SWOT

The strength of FPT Digital Retail Joint Stock Company is that it has built up a nationwide distribution
network and system. Have the best service and product quality. FPT is a corporation with strong financial
potential, stable stocks and easy to raise capital, in addition to owning high average revenue and always
leading in the technology industry and expanding overseas markets (Lê, 2014).

The weakness of this company is its inability to compete on price, increase market share and cost
compared to other companies in the industry. In addition, the competitive strategy is slow and the product
has not made a difference and a breakthrough. This is also the reason why FPT's growth rate has slowed
down in recent years (20% compared to 50% in the past) (Lê, 2014).

When the needs of customers are getting higher and higher, FPT will have more opportunities to conquer
the wishes of customers. There are many opportunities to expand cooperation with foreign countries, in
addition, Vietnam is a country with a large young population, so the material life is improving day by day,
the attention to children is being paid more attention. Besides, there are very few products for brain
development, education and physical development in Vietnam, so this is an opportunity for FPT Retail to
develop more products. The biggest opportunity is the support from the government in the fields of
technology, science, and intellectual development (Lê, 2014).

The challenge for FPT Retail is the habit of using low-quality and low-priced products from Vietnam and
China and the competition of competitors is a big challenge for this business. In addition, it also requires
increasing consumers to buy the product (Lê, 2014).

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 5.1.2 SWOT strategy matrix

Strength (S) Werknesses (W)

Opportunity (O) SO
Good service quality and
increased market share will
help businessesdeepen into
the currentmarket. High
average revenue, always at
the fore leading in
technology and expanding
relations with foreign
countries will largely help
mstay in the overseasmarket.
Large capital resources along
with expanding cooperation
with foreign countries will
helpthe market grow.
WO
Less competitive in terms of
rates combined with
increased market share,
expanding cooperation with
foreign countries willfind
new markets.
Being less competitive in
terms of rates, sluggish in
competition and expanding
cooperation with foreign
countries will help FPT
retailfocus on projects that
bringhigh profits.

Threats (T) ST WT
Good service quality, always Less competitive in terms of
at the fore in science and rates and direct competitors,
technology, experienced businesses need to tor
professional human change business strategies to
resources and current increasemarket share
competitors
willmaintainmarket share.
Good quality of service and
potential competitors will
beeasier to penetrate deeper
intopotential competitors
and loyal customers of the
company.

(Source: 123doc.net, 2020)

5.2 Porter’s Five Forces Model

The current competitor of FPT Retail in the technology industry with the main brand name is FPT shop,
whose competitors such as Gioi Di Dong, Vien Thong A, Viettel, ... are also competing fiercely with firms in
the industry. mobile phone retail. Because there are many competitors, the products between the parties

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are almost together, thus reducing it because customers will probably consume products or services from
other businesses. Therefore, FPT shop needs to create more outstanding products and services than other
competitors to create differentiation and keep customers' loyalty (Phương, 2020).

The number of suppliers of FPT shop is mainly Apple, Samsung, Oppo, ... the more distributors the product
has, the lower their power. And conversely, if FPT shop has few product distributors, their power becomes
greater for FPT (Phương, 2020).

The number of FPT shop's customers is aimed at customers in Vietnam, so FPT shop's customers are many
and diverse. The customer cannot pay the price of the product because the strength of the customer is
not high (Phương, 2020).

For FPT shop, the fact that new competitors joining the same industry are not much and insignificant,
corruption is still at risk of competition, so it is necessary to improve profits and there are many barriers
to prevent competition from increasing. To improve profitability, reduce competition because new
competitors joining FPT Retail need absolute fees on products, services, technology, equipment, ... so that
new competitors cannot. can be price competitive. And there are differentiated and groundbreaking
products and services. The tech industry always attracts new businesses to join. Therefore, FPT shop
always has to take measures to prevent it in times of need (Phương, 2020).

Pressure from alternative products limits the industry's profit growth so that the highest prices are
affected. Therefore, FPT shop needs to constantly research and inspect potential replacement items. To
achieve the highest efficiency, FPT shop needs to pay attention and spend a lot of resources to use new
technologies in its strategy or increase service and interest in products sold (vietnambiz, 2020).

6. Impacts of government policies

6.1 Fiscal policy

A general assessment of the state budget in early 2019 and early 2020 that the financial policy meets the
requirements of economic restructuring associated with the growth model innovation towards improving quality
and efficiency and competitiveness. In the first year of 2020, there was a COVID epidemic that affected many
businesses, households, ... So the state policy side gave many supports to people to overcome the epidemic as
requested. Reduce people's electricity bills, reduce taxes, ... Overspending in 2020 is likely to increase due to
financial instability and will lead to an increase in income on land use, import and export taxes, and revenue from
crude oil when COVID-19 pass.

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The impact of the government has brought about supportive policies for people and businesses to partially reduce
the difficulty during this COVID-19 epidemic in 2020. After the second outbreak of the epidemic, the Prime Minister
of Vietnam supported enterprises to extend the tax and land rental payment time and to extend the payment period
of at least 5 months. In addition, the government also supports businesses with capital and can borrow money to
pay wages for the workers who stop working. The government supports businesses to borrow money to pay
employees in advance at least 50% with 0% interest and the loan term is 12 months. State policies have reduced
many difficulties for this business, but the impact of the epidemic has made the company's revenue suffer a lot and
it takes a lot of time to overcome (Thuvienphapluat.vn, 2020).

6.2 Monetary policy

The Government's changes in monetary policy to business operations in recent years by tightening the convenience
of money have had a positive effect. However, the negative side of the monetary tightening has brought the
economy into a state of capital thirst, has pushed most businesses and including FPT Retail into a difficult situation,
many businesses cannot access to the source bank credit capital. Disease causes businesses to stop production,
increase unemployment and consumers tend to tighten spending, increase savings to prevent risks. At the same
time, investors will also narrow the investment, but turn to holding safe assets. During the epidemic still raging,
fiscal policy played a decisive role and monetary policy was only supportive. But when the disease is controlled,
monetary policy must play an important role and decide to support and provide capital for businesses to recover
their repayment and production capacity (Sbv.gov.vn, 2020).

6.3 Trade policy

The current exchange rate of Vietnam is lost compared to other countries, because 1 USD is now equal to 23,182
VND and if the exchange rate is higher, FPT retail will have a higher price for imported goods. Government trade
policy is created to influence trade practices, including tariffs and quotas. The goal of trade policy is to adjust import
and export activities to achieve macroeconomic goals. It helps to increase the country's revenues and affects the
value of the goods above import prices and that domestic consumers incur the tax burden. That leads to a reduction
in the consumer's need to import goods and the import restriction, causing damage to the interests of consumers,
thus reducing demand for FPT Retail (Sbv.gov.vn, 2020).

Conclusion
This report has provided all knowledge of the factors influencing the enterprise, the micro-environment and the
macro-environment of how it operates. In addition to that, the organization has identified the strengths and
weaknesses of the organization, PESTLE and SWOT analysis can easily understand the threats and weaknesses, thus
helping to fix business problems and Getting maximum profit is the ultimate goal of every business.

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