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 Dang Minh Tai Student ID GBS 210017

Class GBS1005C Assessor name ĐO MINH TUAN

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 TÀI

Grading grid

P4 P5 P6 M3 M4 D2
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:

Signature & Date:

 Catalog
Organization and Role..................................................................................................................................................................................8
I. Introduction:...............................................................................................................................................................................................8
II/ Main Content:........................................................................................................................................................................................9
2.Macro Environment Factors.........................................................................................................................................................................9
2.1 / PESTLE frame work:...........................................................................................................................................................................9
2.2/ Pestle model ( M3).................................................................................................................................................................................10
3. Internal and external analysis (p5)............................................................................................................................................................14
3.1 Strengths of Vietnam airline:.................................................................................................................................................................14
3.2/ Weakness of Vietnam airline:............................................................................................................................................................18
4.The interrelationship of weaknesses and strengths with external macro factors.......................................................................................20
6. Conclusion................................................................................................................................................................................................31
7. Reference:................................................................................................................................................................................................32
Organization and Role
I am a business analyst at Vietcombank Fund Management ("VCBF"), a
joint venture between Vietnam's Joint Stock Commercial Bank for Foreign Trade
("Vietcombank") and Franklin Templeton Investments.
Following the report of the chosen company, the manager believes that
this company has a chance to succeed.be a worthwhile investment He charges me
with conducting an internal and external analysis of the chosen company.
external surroundings

I. Introduction:
 Vietnam Airlines is the largest airline in the country, operating 94
domestic and international routes with more than 400 flights per day. Vietnam
Airlines is the leading airline in the region with a modern, growing and innovative
fleet. In 2010,
Vietnam Airlines joined Sky Team, a strategic alliance of 19 members, operating
more than 14,500 scheduled flights connected to the global network.
After more than 20 years of continuous development, Vietnam Airlines has
affirmed its position as a national airline with international and regional stature.
Soil. When Vietnam Airlines officially transformed its operating model into a joint
stock company in 2015, the close relationship with shareholders was clearly
demonstrated and played an important role in the company's success. Vietnam
Airlines' long-term growth.
Vietnam Airlines is committed to always supporting shareholders, disclosing
and transparent information, maintaining and improving an open dialogue channel
with shareholders, and conducting business activities on the Internet safely, with
quality and efficiency. balance the interests of shareholders with the needs of the
country's economic development.
II/ Main Content:
2.Macro Environment Factors
2.1 / PESTLE frame work:
Environmental macros are the possible external resources whose factors can have a
positive or negative impact on the further functioning of the business, while micro
environment is the size of the business.
The non-business and organizational factors that affect a company's
business and marketing environment are examples of macro areas. Environmental
macros are external factors, forces, and institutions that are difficult for managers
to monitor but have an indirect influence on an organization's operations and
results.
Demographics/demographics, economy, natural environment,
technology, key social environment, and cultural environment are all elements of
the macro environment. Macro environment is a term used in English. The macro
 environment of the company, also known as the macro business
environment, includes factors outside the company that have a pervasive and
lasting impact on all activities of the company.
There are three properties for environment macros:
System of macro-environmental factors.
Organizations are shaped by macro-environmental factors.
Descriptive environment macros impact different industries, sectors, and
organizations.

2.2/ Pestle model ( M3)

2.2.1 Political
Political of Viet Nam:
.The Communist Party of Vietnam controls the entire country. Vietnam's one-
party system demonstrates political stability, which is always a significant advantage
when compared to other countries around the world. Prior to the Covid-19
pandemic, Vietnam was said to have prevented the disease very well, maintaining
non-negative economic growth in difficult years.
 .In terms of diplomacy, Vietnam currently has diplomatic relations
with over 178 countries worldwide. We have joined and developed alliances such as
the World Trade Organization (WTO), the APEC forum, ASEAN, and the Non-Aligned
Movement. Historically, Vietnam and the United States have been at odds in
political issues and war conflicts, but in the last two decades, we have all noticed
good cohesion and cooperation between the two sides.
.However, certain constraints remain in Vietnamese politics. According to a
Human Rights Watch (HRW) report published in 2020, our country's human rights
and freedom of expression situation is dire.
.Corruption is also a serious issue in Vietnam. However, since 2016, the
government has been implementing various strategic options to reverse this
situation.

diagram of the structure of the state apparatus of Vietnam

2.2.2 Economic
Economic of Vietnam:
. According to the IMF's forecast, Vietnam's nominal GDP in 2020 will
be 340,602 billion USD, ranking 35th in the world. However, our per capita
income is $3,498, placing us 115th in the world. According to the General
Statistics Office of Vietnam, the gap between rich and poor is increasing
rapidly.
 . Regarding import and export, Vietnam's main export products in
recent years are phones and components, computers, machinery and
equipment, tools and spare parts, textiles and garments, and footwear. At
present, these products are mainly exported to Germany, Korea, Japan,
China and the United States. Computers, electronic products, components,
machinery and equipment, telephones, fabrics, iron and steel of all kinds,
etc. are the most imported items. We mainly import from Singapore, Hong
Kong, Korea and Japan. Japan and China
. This Covid-19 pandemic has had a significant impact on the global
economy in general and Vietnam in particular. Many businesses large and
small will have to suspend or even shut down operations in 2020 and
2021. Tourism, hospitality, arts and entertainment are among the hardest
hit industries. Only a few essential commodities are growing or are less
affected. McKinsey predicts that the following industries and trends will
emerge after the Covid-19 pandemic: digitalization of services, remote
working, and automation.

2.2.3 Social Culture

Vietnam currently has a population of approximately 97 million people.
According to the General Statistics Office, the average life expectancy of
Vietnamese people has been increasing in recent years, reaching 73.7 years old in
2020. Vietnamese people are known around the world for their kind and friendly
personalities. According to a report by the World Bank, middle age (45-60 years old)
is forming and developing rapidly, accounting for 13% of the population today and
 is expected to increase to 26% by 2026. Vietnam will have to face aging.
population will last up to 28 years (2026-2054).
In recent years, a number of foreign newspapers and media outlets have reported
on the poor treatment of tourists by Vietnamese people. However, many people
still think that their time in Vietnam is memorable.

Vietnam population chart 1950 to 2050

2.2.4 Technology
In recent years, Vietnam has prioritized technological
development, the development of a technology workforce, policies to
attract foreign investors, and the encouragement of people to start their
own businesses. According to the Ministry of Science and Technology, by
2020, the information technology sector will have attracted 700
companies, 220 of which will be foreign, focusing primarily on major cities.
Vietnam is known to offer information technology services such as
educational technology, software outsourcing, e-commerce, artificial
intelligence, and so on. Many businesses, however, are currently
experiencing difficulties. the challenge of a skilled but inexperienced
workforce.
 2.2.5 Legal
Currently, Vietnam allows and encourages foreign companies to
invest and do business in the country. Vietnam has recently joined the
new world trend of globalization. As a result, in the coming years,
businesses will have to prioritize intellectual property over physical assets.

2.2.6 Environment
The exploitation of natural resources is not good, and the rapid
economic growth has created many environmental challenges, which can
harm the environment and the economy in the long run. In recent years,
we often hear about environmental pollution (water environment, air
environment) that has bad effects on people's health. At the same time,
natural disasters such as hurricanes, floods, earthquakes, and droughts are
becoming increasingly common and destructive.
The good news is that in recent years, businesses are turning to using
and producing environmentally friendly products. Organic products have
been on the rise lately. Not only that, Vietnam is one of the countries with
the most beautiful scenery in the world. According to the Vietnam
National Administration of Tourism, 18 million international visitors visited
Vietnam in 2019. Our country currently has 8 UNESCO World Heritage
Sites, which is a great source of pride for all Vietnamese.
3. Internal and external analysis (p5)
3.1 Strengths of Vietnam airline:
A. Brand name and brand equity: Vietnamese Airlines have been named one of
the top 50 brands in Vietnam for 2020, as well as a leading brand in air transport, by
Forbes Vietnam, with a brand value of 114 USD 1 million Airlines Airlines. (Vietnam
Airlines, Pacific Airlines, and Vasco are among them) Vietnam Airlines has received
numerous awards from prestigious Vietnamese and international organizations for
 providing a diverse range of airline services, contributing to the country's
development by 2020. For many years, Forbes Vietnam has recognized Vietnam
Airlines as one of the country's leading brands, recognizing the airline's efforts to
provide customers with high-quality products and services and confirming its
position. and the national carrier brand's growing reputation.

Skytrax gives the airline 5 stars for anti-epidemic standards, and Airline Ratings gives it an absolute rating of 7/7 stars.

B. Fix assets:
 Details of fixed assets in 2014 of Vietnam airlines

C. Mission, vision and Core value:

Safety is number one, and it serves as the foundation for all activities.
Vietnam Airlines was among them. The organization's growth is linked to the needs
of the news client.
 Employees are the most valuable asset. All main Mapleed is built on corporate
assets and favorite rights to stay connected and create organizational unity
 Constant innovation Using light to create a method
Magnet has been replaced. We are constantly changing and changing on all
surfaces capitalized for general public use
 The corporation has no liability. In our opinion

 Become the most popular airline in Asia.

  As the national airline, we are the transport locomotive.

 Provide a wide range of high quality services to meet every customer need.
3.2/ Weakness of Vietnam airline:
Organization structure of Vietnam airlines:

Management structure
Shareholders' Annual Meeting
The General Meeting of Shareholders is Vietnam Airlines' highest decision-making body,
comprising all shareholders.
Shareholders have the right to vote and the General Meeting of Shareholders governs the
company.
 Annual Shareholders Meeting, Extraordinary Shareholders Meeting, and approval
of the collection of written opinions.
Control Board
The Supervisory Board is the body elected by the General Meeting of Shareholders
to control, independently, objectively, and honestly evaluate all business,
management, and operating Vietnam Airlines, the financial status of Vietnam
Airlines, and to take responsibility in performing assigned tasks before the General
Meeting of Shareholders.
Board of Directors (BOD)
The Board of Directors is Vietnam Airlines' governing body, with full authority on its
behalf to decide and exercise Vietnam Airlines' rights and obligations that do not fall
under the authority of the General Meeting of Shareholders.
General manager
The General Director is Vietnam Airlines' legal representative and oversees
the airline's day-to-day operations.
Functional departments The Board of Directors creates the Board of
Directors' supporting departments, which include the Strategy and
Investment Department, Human Resources and Payroll Committee, and
Internal Audit Committee. The commission works on a part-time basis. The
Corporation's specialized committees, based on their functions, assist the
committees established by the Board of Directors.
Director: The Corporation's offices, specialized boards, and equivalent
agencies advise and assist the Board of Directors and the General Director
in the management and administration of work. The operating apparatus
of Vietnam Airlines is organized as follows: The headquarters are in Hanoi,
and the company has 16 specialized departments, 33 foreign branches and
representative offices, and 14 PCs throughout the country. Vietnam
Airlines also contributes capital to Subsidiaries and Associates.
 4.The interrelationship of weaknesses and strengths with
external macro factors
4.1 Facts and findings to demonstrate how Vietnam airline copes with
the impacts of a hostile macro environment.
The financial situation of Vietnam Airlines was severely affected due to the
complicated and prolonged epidemic situation. The national airline is expected to
lose more than 20,000 billion dong this year, especially in the first six months of the
year, the loss is more than 10,000 billion dong. Before these forecasts, Vietnam
Airlines said it had implemented cost-cutting measures with a total value of 9,450
billion VND.
The airline has optimized aircraft maintenance, saving nearly 5,300 billion dong
thanks to labor reorganization and cutting output by more than 800 billion dong.
These options include reducing 4 heads of departments and units and about 70
heads of agencies and units. According to the company representative, the
refinancing support package of VND 4,000 billion has so far completed the
necessary legal procedures.
In terms of finance, Vietnam Airlines said it will save and cut costs by negotiating
with suppliers to receive support, facilitate extension and delay payment. The
company is also planning to issue 8,000 billion dong of shares to existing
shareholders.
In the second operating solution, Vietnam Airlines clearly stated that the
reorganization of production is more suitable to the market size, restructuring of
labor, assets and capital. During the Covid-19 pandemic, the airline leased back
unused aircraft, liquidated the old fleet, reformed wages and implemented a new
salary policy...
In collaboration with the Vietnam National Administration of Tourism, the
Vietnam Tourism Association and travel agencies, the airline has also implemented
a number of commercial solutions such as preferential fares. The airline's goal is to
increase revenue amid declining passenger numbers by providing freight services,
charter flights to repatriation, specialists, and more.
Competitive environment:
On environmental protection flights, Vietnam competes with International Airlines.
The Sustainable Flight Challenge (TSFC) is a program that encourages initiatives for
sustainable development in the aviation industry. Skyteam, a global airline alliance
comprised of major airlines from around the world, is the program's initiator.
Airlines will compete in this program to see who can run the most environmentally
friendly flight with the most sustainable development. An international panel of
judges comprised of experts and leaders in relevant fields evaluated airlines in 14
categories. The winning company will be recognized at the June event. The
"Sustainable Flight Challenge" currently has 16 airlines from countries such as the United States,
France, Italy, the Netherlands, Spain, China, South Korea, and others participating. First, airlines
participate by organizing flights over 5,000 kilometers long, average routes of 1,500 to 5,000
kilometers long, and evaluating the efficiency of exploitation and environmental protection on
these routes. Vietnam Airlines also serves the country.
Macro environment:
The macro environment includes factors affecting the existence and development
of enterprises such as economic environment, political environment, socio-cultural
environment, legal environment, environmental technology, environmental
environment, etc. natural environment, global environment.
a. Economic environment
The main factors that affect the performance of businesses in the economic
environment are the growth rate of the economy, interest rates, exchange rates
and inflation rates. Economic growth or recession has a significant effect on the
business; if the economy is growing, there will be many opportunities for businesses
to expand their operations; If the economy is contracting, consumers will cut costs,
increasing the risk to businesses. Interest rates will determine business needs.
Inflation, like exchange rate policy, creates opportunities or increases risks for
businesses.
b. Legal and political environment
 The legal and political environment can have a significant impact on
business operations and can create opportunities as well as risks for businesses.
This environment includes: political stability, legal system policy (i.e. investment
law, labor law, environmental resource law .. tax policy, fee, etc.).

C. Social culture

Increased urbanization and a growing middle-class population could

increase the affordability of air travel. The urbanization rate is an indicator of air
travel trends because urban dwellers have higher-than-average incomes and are
often closer to airports. According to the United Nations, Vietnam's urbanization
rate is currently 37% and is expected to increase to 40.9% by 2025. A growing
middle class will drive consumption. It is expected to account for more than 38%.
Total population of Vietnam in 2025, according to Boston Consulting Group.
Regarding consumer behavior, as today's customers have evolved,
airlines, like any other business, establish social values. Airlines are forced to change
to meet the changing needs of consumers. Passengers are increasingly choosing
airlines that offer a variety of services at reasonable prices. In recent years, business
class travel has declined, causing the company to suffer significant losses.

VNA will offer a 30% discount on routes Hanoi - Vientiane and Luang Pra State of Laos during the
event, which will be held every two months as part of the two sides' tourism, cultural, and social cooperation
program. Domestic ticket purchasers, particularly children, will also receive attractive gifts.
 D. Technological
Vietnam Airlines' fleet is constantly updated to represent modern aviation
technology, primarily by combining equipment from well-known aircraft
manufacturers such as AIRBUS, BOEING, and others, as well as improvements in
structure, fuselage, engines, and control systems. Science and technology
advancements have given birth to new generations of aircraft with extremely
stringent requirements. Longer operating speeds, more efficient engine thrust,
larger aircraft sizes, lower noise levels, improved fuel economy, and so on are all
requirements for civil aviation transportation. Vietnam Airlines manufactures
aircraft such as the Boeing 777, 767, A320, A321 and others. This is one of the most
critical factors in determining the accuracy, cost-effectiveness, and competitiveness
of air freight cargo.
 Vietnam Airlines' first new generation Boeing 787-9 Dreamliner will fly at the 51st Paris Air Show -
International Air Show from June 15-21, 2015 at Le Bourget Airport. (France, Paris)

E. Natural: "Zero Waste Vietnam Airlines": Beginning with the smallest details Not
just a fad, Zero Waste has evolved into a life philosophy, literally a "zero waste"
lifestyle. With a meaningful message directly related to environmental protection,
Zero Waste has helped to create a global wave of reducing plastic waste, plastic
bags, and plastic materials.
Industry environment:
A.Customers: In 2015, Vietnam Airlines accounted for 80% of the
international passenger market share flying to and from Vietnam, as well as
70% of the domestic passenger market share (including 15% domestic
passenger market share and 5% market share). international arrivals and
departures). Jetstar Pacific Airlines flies to Vietnam.
B. Competitives: In addition to competitors such as Vietnam Airlines, there
are others such as Vietjet airlines , Bamboo Airway, Pacific Airlines, and
others.
4.2 SWOT Analysis (M4)
Strengths
The government's support for a nationwide and global route network is said to be Vietnam
Airlines' strongest point. Vietnam Airlines' image and reliability are enhanced by its large
financial scale and modern and diverse fleet of aircraft. Vietnam Airlines has been known by
people all over the country for decades, so there is no need to advertise much in order to be
chosen in the minds of customers. Because Vietnam Airlines is an official member of the
Skyteam airline alliance, the international route network will be expanded.
  On the afternoon of December 15, at the Government Headquarters, Prime Minister Pham Minh Chinh witnessed
the signing ceremony of an agreement to support aircraft rental costs between Vietnam Airlines (VNA) and its
largest aircraft leasing partner, Air Lease. Corporation (ALC-USA), helping VNA save more than $1 billion in costs
and payment obligations.

Weakness
The water operator is one of Vietnam Airlines' weaknesses, as it can cause delays and
dependencies. The level of operational flexibility will almost certainly be limited.
Furthermore, Vietnam Airlines has high operating expenses. Show in Viet Nam, Vietnam
Airlines does not own more than 104 shirts in a row. Vietnam Airlines' aircraft configuration
includes the most advanced aircraft, with the fuselage containing Boeing 787-9, Boeing 787-10,
and Airbus A350. As a result, the cost of operation maintenance is extremely high.
  18 criteria do not achieve 4 stars Vietnam airline of business class.
Opportunity
* Using aircraft for cargo: With the goal of not wasting available resources, retaining the
role of the economy's "blood vessel," and meeting the needs of transporting goods, supplies,
and equipment. One of the great solutions that Vietnam Airlines offers with medical equipment
for anti-epidemic is to promote the transportation of goods in both the cargo and passenger
compartments to achieve the highest efficiency.
* Evaluation: On April 2: the Civil Aviation Authority of Vietnam officially approved the
method of cargo handling in the passenger cabin of Vietnam Airlines. The International Air
Transport Association (IATA) has also issued official guidelines on the type of passenger cabin
operation that can transport goods. Despite the lack of specific guidelines from international
organizations and Vietnamese authorities, Vietnam Airlines has taken a pioneering step in the
right direction.
* Improve image: by assisting the government and the health sector in transporting and
securing equipment and supplies while the country and the world are "stretching" against the
epidemic. Improve the image by encouraging overseas Vietnamese to return.
* Vietnam fights the epidemic effectively: Thanks to the right and timely actions of the
government and public awareness, the anti-epidemic situation in Vietnam is improving,
 providing hope for the economy's recovery. Vietnam's aviation industry will resume
normal operations soon.

Threats:

Part 1/ Rising jet fuel prices impact costs and profits.

The price of jet fuel has risen by nearly $100 per barrel since May
2021. This is expected to cost airlines at least $50 billion this year. This
figure could even reach $100 billion USD. Despite being the most
profitable year in aviation history, it only made $38 billion in profit (nearly
half of which was from major US airlines).
Part 2/ Ticket prices and passenger transportation demand are affected
by aircraft fuel prices.
In the coming months, the price of jet fuel alone will pose a significant
challenge to airline profitability. However, as passenger demand rises
again, the airline industry faces additional fundamental issues.
However, the Asia Pacific region is not the only one facing numerous
challenges. Because of rising fuel costs and slow growth in demand, fares
must be significant raised to compensate for lower passenger numbers.
5/ The impact of both macro and micro factors business goals and
decision making (D2)
Due to the pandemic, the world and Vietnam will face extremely difficult times in
2020. Although the epidemic has been actively controlled, the situation remains
extremely complicated. The economy is heavily reliant on global trade chains, but
business resilience is limited, and some companies are struggling, if not failing, to
weather this "storm." Prior challenges and difficulties, but also opportunities for
businesses to overcome difficulties. The important thing is to seize opportunities,
learn about consumer trends, and then devise strategies to cope with and reverse
the situation..
Action plan:
 Vietnam Airlines has just launched the VNAMALL e-commerce
platform with more than 300 products and many attractive offers.
VNAMALL will bring unique products imbued with aviation imprints, as well as
take advantage of the connectivity of its extensive flight network with nearly 100
domestic and international routes, as an e-commerce platform of airlines. The
country of Vietnam Airlines.
Customers can order and experience dishes "in the cloud" such as: Business
class wine or dessert, airline snacks, and more than 300 products from food,
agricultural products, drinks to gifts gifts and co-branded items of Vietnam
Airlines. ..
VNA gift card - the first airline service gift card in Vietnam - is one of the most
notable products on VNAMALL. Vietnam Airlines gift cards can be exchanged for
airline tickets or upgraded to Business class on flights of VNA, Pacific Airlines and
VASCO. The product offers customers advanced aviation experiences, such as
adding checked baggage, priority check-in, priority baggage tagging and Lotus
Lounge access. Take priority aisle or priority bus... VNA gift card is a modern gift in
the 4.0 era suitable for both individual and corporate customers.
VNAMALL is launching a special offer to celebrate the launch and welcome
Black Friday: Instant discount of 100,000 VND and gift of a merchant utility bag for
the first 100 orders with a value of 300,000 VND or more.
6. Conclusion
Vietnam Airlines will remain an honest partner of customers and the ideal choice
for future flights, with many incentives and dedicated service from Vietnam's
national airline's professional team, bringing everyone comfort in every flight. Every
flight brings me closer to my goal. Vietnam Airlines strives for a clean flight and
actively opposes environmental pollution. VNA is steadily progressing toward
becoming a 5-star airline and airline by promoting 4.0 technology applications. In
the near future, digital airlines will provide passengers with more convenient and
enjoyable flying experiences. This report assists the company in determining the
value of SWOT and PESTEL analysis in the aviation industry, as well as directing
people to the true value of life.
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