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Unit number and title Unit 18: Global Business Environment (530)
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Introduction of HARIBO
Besides, the product range is anything but static, with its own new sweets added continuously and new
quality brands purchased in Germany and abroad. The sales and production networks are being
expanded and closely coordinated to ensure the products are promptly available at all times. With
another recipe for success is the development of special sweets whose flavors are specially tailored to
local preferences in different countries.
1. Impact of globalization on organizations:
In the context that we are integrating into the world economy, globalization has become an objective
trend that affects all aspects of social life such as culture, economy, etc. a necessary condition and result
for all social development processes. Globalization is connecting economies around the world in the
fields of trade, investment, banking, movement of goods, services, labor and people. Globalization allows
businesses and individuals around the world to connect with each other more easily than ever. Besides,
promoting the process of strong increase of relationships, linkages, mutual influences and
interdependence of all regions, peoples and countries all over the world.
Systems are the company's business and technological infrastructure that defines processes and the
decision-making chain. It is the company's processes and procedures that disclose everyday business
activity and how choices are made. The section of the company that dictates how business is done is
called systems, and it should be the primary focus of managers throughout organizational
transformation (Baishya, 2015).
HARIBO's systems are mostly partial in nature and include things like Human resource
management, Finance, Marketing, Operations, Sales, Supply chain management, Public Relation
Management, Strategic leadership. HARIBO has specifically developed tools and controls to
measure performance and goal accomplishment in each of its identified and identified systems.
These controls and measures are tailored to each segment based on the nature of its activities and
responsibilities. Furthermore, each division creates unique controls to measure the performance
of its members and the duties and obligations between the divisions. HARIBO evaluates its system
on an ongoing basis using the controls it has established. This is mainly achieved through
observation and casual talk. Employees and department leaders receive informal feedback on a
regular basis as needed. HARIBO also has specific procedures and methods in place to ensure that
all parts and systems within the organization are aligned and working in sync with the larger
company goals and objectives.
Skills form the capabilities and competencies of a company that enables its employees to achieve its
objectives. Employees of such company excel in their skills. Capabilities and skills are also included.
During organizational transformation, the question of what capabilities the firm will actually require to
support its new strategy or structure emerges frequently (Baishya, 2015).
Employee skills HARIBO's personnel is impressive, having excellent skills and capabilities. All
personnel are hired based on their credentials and merit. HARIBO takes pride in employing only
the best experts and grooming them to help them grow and develop.
Employee skills vs task requirements HARIBO has specified duties and job positions, and employs
and trains individuals for the appropriate skill levels. The organization guarantees that all work
criteria are satisfied and that personnel have the necessary skills to do their duties in accordance
with HARIBO's values, culture, and business goals and strategy.
Skill management HARIBO places a premium on developing its workers' skills and capabilities. It
organizes frequent internal and external training and seminars to give possibilities for growth and
development for its personnel. HARIBO places a strong emphasis on personal and professional
development for its workers and works closely with them.
Company’s competitive advantage One of the company's main competitive advantages is its
human resources. Staff skills are created expressly for work positions and needs at HARIBO, giving
the organization a competitive advantage over competitors who cannot mimic employee skills or
training. This gives HARIBO a distinct and irreplaceable skill set.
Staff element addresses the type and number of people that a business will require, as well as how they
will be recruited, trained, motivated, and rewarded. Employees are involved in talent management and
all human resource decisions pertaining to the organization, such as training, hiring, and incentive
systems (Baishya, 2015).
Employee skill level vs business goals HARIBO employs a significant number of people throughout
its global activities. Employees are employed both within and outside for various job
responsibilities and positions, based on the urgency and skill levels necessary. As a result, it is clear
that HARIBO employs people who are proficient in their respective job tasks and positions. To
acquaint oneself with the organization and its ideals, all workers get in-house training. For skill
level enhancement, both external and internal training is available.
Number of employees A huge number of people have worked with HARIBO. The number of
employees varies each nation, depending on the business and operations' requirements and
demands. HARIBO is a diverse organization that embraces and fosters diversity and collaborates
with members to achieve business objectives. The most crucial aspect of HARIBO's company
success is its team members and workers.
Style represents the way the company is managed by top-level managers, how they interact, what
actions do they take and their symbolic value. The attitude of senior employees in a company establishes
a code of conduct through their ways of interactions and symbolic decision-making, which forms the
management style of its leaders (Baishya, 2015).
Management/leadership style HARIBO is able to engage and involve its staff in decision-making
processes and managerial choices by using a participatory leadership style. This also allows the
leadership to communicate with employees and other managerial groups on a regular basis to
detect and resolve any possible disputes, as well as receive input on strategic strategies and
operations. HARIBO is able to improve employee motivation and organizational engagement and
ownership among employees and other stakeholders through participatory leadership.
Effectiveness of leadership style Participative leadership is extremely effective in achieving the
organization's corporate goals and vision. Employees believe they are contributing members of
the business, and their ideas, opinions, and contribution are valued. Furthermore, via
participatory leadership, leaders and managers may recognize present and prospective issues
within the HARIBO organization and seek to address them as quickly as feasible.
Cooperation vs competition – internally HARIBO fosters internal collaboration and cooperation
among individuals, systems, teams, and departments thanks to its friendly and encouraging
corporate culture. HARIBO values cooperation and collaboration since its activities are worldwide,
and tasks and responsibilities within the organization frequently demand cross-departmental
comments and input. With growing development and synergy, the company also establishes
project teams on a regular basis, which work well because of the HARIBO organization's
cooperative and collaborative culture.
Team vs groups HARIBO works with effective and functional teams to fulfill its varied business
goals and objectives, as well as complete assignments. The management of the firm is
encouraging and helpful, and the leadership gives a compelling and practical goal for the company
to attain. All workers are supported in their advancement equally and openly through the human
resource management system and organizational training. This results in effective team building
inside the company for diverse projects, as well as department-specific responsibilities and
functions, rather than nominal groupings.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide
employee behaviours and company actions and thus, are the foundation of every organization. And play
an important role in aligning all key elements to maintain an effective organizational design (Baishya,
2015).
Core values HARIBO is defined and articulated in order to promote a creative and supportive
organizational structure that allows people to achieve at their best while also increasing their
motivation and organizational commitment but is not limited to:
• Creativity
• Honesty
• Transparency
• Accountability
• Trust
• Quality
• Heritage
Corporate culture HARIBO creates a welcoming environment that values diversity. Because
HARIBO has an international presence and manufacturing facilities in several countries, the firm
ensures that its organizational culture is supportive of diversity and that internal procedures to
combat prejudice are in place. HARIBO also promotes innovation and creativity by allowing people
and teams to flourish independently, allowing them to better their jobs and personalities. Finally,
HARIBO's corporate culture includes a supportive leadership that strives to increase employee
motivation and job happiness by emphasizing visibility and accessibility.
According to (HARIBO, 2022), HARIBO collaborates closely with our suppliers and logistics partners
to guarantee that any transit has the least amount of environmental effect possible. Our primary
finished product distributor is similarly dedicated to reducing its environmental effect. HARIBO is
dedicated to waste reduction, elimination, and recycling. We are signatories to the Court auld
Commitment 3, a government-funded resource efficiency and waste reduction pact, and are
collaborating with WRAP, supply chain, and other signatories to meet the agreement's goals.
HARIBO is also a member of the UK Plastic’s Pact, which works to decrease the damage caused by
plastics across industries. Within our plant and offices, they have invested in waste separation
facilities. Empty packaging is always binned or recycled, as is all of the packaging. HARIBO have
worked hard to achieve ZERO waste to landfill and have succeeded in meeting this target for the
last 4 years. To help tackle litter they worked closely with the local council and the Love Where
You Live campaign to replace the litter bins in the immediate area in which we operate in
Postinfarct. Now HARIBO have three branded bins. An anti-littering symbol is printed on all
packaging to encourage HARIBO customers to dispose of their litter responsibly. "We all love a
treat, but if you can’t reuse or recycle the packaging, please always bin it where possible"
According to (HARIBO, 2022), HARIBO's success is not limited to the German market: as the global
market leader in fruit and licorice gummies, HARIBO is now present in more than 100 countries
around the world. HARIBO manufactures at 16 locations in ten countries and employs more than
7,000 people, who ensure that consumers always have an adequate supply of their favorite
products - with the usual unsurpassed quality. And the product range is anything but static, with
new candies being added constantly and new quality brands purchased in Germany and abroad.
Sales and production networks are being expanded and work closely to ensure timely product
availability. Another successful recipe is the development of special candies with distinctive flavors
tailored to local preferences in different countries. For each new recipe, we carefully check the
quality of the individual ingredients and thoroughly test the taste, scent and consistency of the
new finished product - until the recipe is perfect. Before it can be used for processing, each raw
material is thoroughly tested and analyzed in the lab after it arrives. Every step of production is
rigorously tested to ensure compliance with hygiene, process and formulation requirements.
HARIBO is certified in accordance with FSSC 22000 - a food safety standard that goes beyond
stringent legal requirements. Smart shipping ensures that your confectionery is always available.
And our goods always leave the facility as soon as possible, so that customers have the freshest
and most perfect HARIBO products. Thereby creating the brand of HARIBO in the hearts of
customers and the image of a beautiful bear.
Arenas
"100 Years" HARIBO From a small kitchen to a global market leader. HARIBO's success is not limited to
the German market: as the global market leader in fruit and licorice gummies, HARIBO is now present in
more than 100 countries around the world. HARIBO manufactures at 16 locations in ten countries and
employs more than 7,000 people, who ensure that consumers always have a sufficient supply of their
favourite products of the usual unsurpassed quality (Mirabella, 2012).
HARIBO began mass-marketing the fruit flavoured chewy candy in the United States in the 1980s.
Christian Jegen, president of Haribo America, said U.S. sales for Woodlawn's division of The German
candy maker has grown by double digits over the past five years and more than 20% in 2011.
Confectionery sales last year increased by 3.9% compared to 2010 and sales of chewy candies, Haribo's
variety, increased by 3. .1%, the NCA reported in December. According to the NCA report, about $29
billion worth of confectionery was sold in 2009, of which non-chocolate accounted for about a third.
HARIBO has achieved many outstanding successes and continues to expand, fulfil its goals for
consumers, and make great contributions to the F&B industry thanks to its tireless efforts (CSP, 2012).
Figure 3- HARIBO’s Market
Differentiators
To differentiate HARIBO from strong competitors in the US market. HARIBO has had strategies and
innovations in products to differentiate itself from competing confectionery businesses.
With such a variety of shapes and flavours. Each and every HARIBO fruit marshmallow began with a
creative idea and was first sketched by hand. This template is then used to create 3D model drawings for
high-tech milling machines, plaster forming machines. Once the new shape is perfect, hundreds of
stamps are created for production (HARIBO, 2022). Figures are molded from a hot fruit jelly that has
been coloured with fruit and vegetable extracts. During the production process, the stamps are inserted
into the powder box from above, leaving an impression. America's Haribo sees even more untapped
demand. From the offices off Security Avenue, where visitors are greeted with life-size images of the
Haribo logo, a yellow bear with a red bow, Haribo is building its brand with an advertising campaign.
advertised on TV, expanded its reach in stores, and dreamed of new versions of the snack that was once
only available in five flavors - lemon, orange, strawberry, pineapple and raspberry (CSP, 2012).
Vehicles
Gummi candy made by Haribo and other manufacturers has become a hot-selling item for The Candy
Store, a nine-year-old small retail store located at Colonial Village Shopping Center in Pikesville, Yehuda
Nelkin. The increasingly modern world, along with busyness and stress, makes consumers tend to use
confectionery and fast snacks. HARIBO accounts for 65% of gummi consumption in the United States.
And while some of the candies are associated with the chocolate bunny and jelly bean holidays with
Easter, the candy corn with Halloween gummi sells well year-round, especially during the warmer
months, when business chocolate sales fell. Before Haribo entered the US market in the early 1980s,
their gummi was imported and sold mainly in specialty stores. Haribo has since expanded into
supermarkets, pharmacies and resellers like Wal-Mart. Understanding the market will make it easier for
new businesses to enter new markets. Therefore, HARIBO develops in the US market very quickly and is
able to compete on par with domestic brands (Mirabella, 2012).
Staging
HARIBO has been present in the US since 1982, the best-selling product here is the Gold Bears brand.
According to Euromonitor International, HARIBO accounted for 1.8% of the US sugar confectionery
market by value in 2016, ranking tenth behind market leader Hershey and second Mars-Wrigley. The
research firm said confectionery was the fastest-growing segment in the US confectionery category in
2016, with 4% sales value growing to $11.3 billion. With gummi bears being Haribo's best-selling product
in the United States, the company is striving to become the dominant player in the gummi category
among many competitors, including major food and candy companies such as Mars and Kraft, and
smaller private labels. Haribo has found a growing strength, sticking with only a handful of product
categories, a strategy the company plans to maintain. It has grown into the world's eighth largest candy
company, with $2.9 billion in annual sales and more (Mirabella, 2012).
Economic Logic
HARIBO wants to own the confectionery market in the US and they need to work hard to reach
consumer relevance. Moreover, HARIBO needs more campaigns to build brands to win customers' hearts
and gain a foothold in the market. That is considered a fulcrum that HARIBO can create for itself for the
US market. From there, the company can be assured of annual revenue in the market and from there can
develop new facilities to dominate the market (CSP, 2012).
2.2. Barriers to international trade
PEST model is called the business environment analysis model. PEST is used by businesses in their
business strategy because it helps them identify factors from the environment that affect the operation
and development of the business. PEST studies the factors in the macro business environment that affect
the existence and development of enterprises, including:
• Political Factor
• Economic Factor
• Social Factor
• Technological Factor
Applying the PEST model helps businesses understand the opportunities and threats that the business
environment presents, and identify challenges and opportunities for business growth. The factors
mentioned in PEST make up the macro environment and are something that businesses cannot affect or
change. Therefore, studying the business environment with the PEST model is also a way for businesses
to anticipate changes in the external environment, thereby having an appropriate adaptation plan.
Political Factor
Political and Law have a great influence on all businesses in the national territory, which can affect the
viability of the business. All businesses must comply with the laws and policies of the Government when
operating. The PEST model analyses this factor as follows: Tax policies, political stability, related laws and
regulations. Clean policies promote economic development and create motivation for businesses
(Perera, 2017).
Politics is at the heart of the economy. Without the correct political stance, a certain class will not be
able to maintain its dominant position and be unable to fulfil its task in economic construction. Only a
strong economy can guarantee political stability. Political power can affect the economy in three ways:
strongly promote economic development; promote on the one hand, restrain on the other; inhibit
economic development. In recent years, Vietnam has made remarkable progress in all aspects,
increasingly asserting its important role in the region and in the world. These achievements are
attributed to political stability under the leadership of the Communist Party of Vietnam.
According to French economist Dr. Philippe Delalande, political stability is one of the indispensable
factors, helping Vietnam to persevere in its economic development policy. Stable political background
gives Vietnam peace and prosperity. If we look at some countries in the region, it is easy to see that,
except for Singapore, since 1990, most countries in the region have experienced coups or political crises.
Meanwhile, Vietnam's politics are always stable, which is a guarantee for the coherence to implement
consistent economic policy. Dr. Philippe Delalande said that: The success of the development cause in
Vietnam is also based on political stability (Hung, 2010).
Economic Factor
The second factor in the PEST model is economics. It is clear that the upward or downward trend of the
economy greatly affects the development opportunities, even the survival of enterprises (Perera, 2017).
Economic factors are analyses based on:
- Economic status: Determining which stage of the cycle the economy is in, developing, stabilizing
or declining, helps businesses promptly predict and make appropriate decisions.
- Factors affecting the economy such as inflation, interest rates, and so on
- Economic policies issued by the Government, subsidy packages, support for businesses, so on
- Development potential of the economy: GDP rate, GDP growth rate, so on
According to (GSO, 2021) The COVID-19 outbreak has brought unprecedented challenges, which are
expected to have significant impacts on the development of Vietnam's economy this year. Moreover, the
Vietnamese economy is highly dependent on other economies. As a result, the scenarios and projections
related to the impacts on the Vietnamese economy are also correlated with the economic impacts of
other countries following the COVID-19 outbreak. It is estimated that GDP in 2021 will increase by 2.58%
(in the first quarter, by 4.72%; in the second quarter by 6.73%; in the third quarter by 6.02%; in the
fourth quarter by 5.22%). In the general growth rate of the whole economy, the agriculture, forestry and
fishery sector increased by 2.9%, contributing 13.97% to the growth rate of total added value of the
whole economy; the industry and construction sector increased by 4.05%, contributing 63.80%; the
service sector increased by 1.22%, contributing 22.23%. In the industry and construction sector, the
processing and manufacturing industry continued to be the growth engine of the whole economy with a
growth rate of 6.37%, contributing 1.61 percentage points to the growth rate. the total value added of
the whole economy. The electricity generation and distribution industry increased by 5.24%, contributing
0.19 percentage points. Mining industry decreased by 6.21%, down 0.23 percentage points due to the
decrease in crude oil production by 5.7% and gaseous natural gas by 19.4%. Construction industry
increased by 0.63%, contributing 0.05 percentage points. The complicated development of the Covid-19
epidemic since the end of April has seriously affected commercial and service activities. The negative
growth of some service industries accounted for a large proportion, reducing the overall growth rate of
the service sector and the whole economy.
b. In 2021, the economy faced many difficulties due to the impact of the Covid-19 epidemic,
the State banks of Vietnam adjusted interest rates appropriately, creating conditions for
credit institutions to continue reducing lending interest rates. support economic
recovery. In addition, the Vietnam Culinary Culture Association (VCCA) in collaboration
with the International Financial Organization (IFC) organized the seminar "Supply chain
financing: effective solutions to help minimize disruption of the industry supply chain".
F&B Vietnam" which focuses on analyzing and discussing the current situation of the F&B
industry, finding opportunities and challenges, and developing orientations; Through this,
the workshop offered practical solutions, proposed policies and shared international
experiences to help F&B businesses overcome this difficult period and continue to
develop (Anh, 2021).
Social Factor
Social Factor affects a lot of issues outside and around the business. Each country, locality, and region
have different cultures or customs. This greatly affects the needs of consumers to use goods, as well as
their purchasing habits, spending habits, etc. In the PEST model, socio-cultural differences are said to
bring about many business opportunities, potential for business development. At the same time, this
factor also creates certain barriers to business activities and market penetration (Perera, 2017).
It is an industry with competitive characteristics and extremely high elimination rate. The market of the
food and beverage industry in Vietnam is very active with the introduction of many brands of
Vietnamese enterprises as well as attracting foreign-invested enterprises. The social distancing policy
during the Covid epidemic has changed the consumption habits of customers. Customers are also more
interested in “organic” foods, foods with health benefits. Although the price is higher than other foods,
but with many health benefits as well as having a clear origin, it also contributes to increasing the trust of
customers for this item. The Covid-19 epidemic has resulted in in addition to the offline retail model, the
online retail model (e-commerce platform, phone app, ...) is also combined by sellers to adapt to the
pandemic and expand the market. after translation. The difficult problem that businesses face when
doing online F&B business is the quality of the product. Customers who buy online are often more
interested in the brand of the product as well as the reviews. Moreover, switching from a traditional
business model to an online business is not an easy thing, but any business has the preparation and a
strong foundation to do and succeed. Currently, the epidemic situation has improved, but it takes a long
time to return to customers' consumption habits. Businesses need to pay attention to long-term
planning (Innovativehub, 2020).
Technological Factor
Technological developments can shake the world. The development of technology has made a series of
products with improved features, improving product quality and people's lives to new heights (Perera,
2017).
II. CONCLUSION
In conclusion, the article analysed how operating in a global market has influenced a company's
structure, culture and operations. The impacts of globalization on aspects of the organization, the impact
of sustainable and ethical globalization on organizational functions, different ways of decision making
that may operate in the context Globalization and the various barriers to internationalization that an
organization may face are available for review. HARIBO, with its capacity and strong brand image, needs
to continue to develop to gain a stronger position globally and in its own field in particular.
III. REFERENCES
IV. Bibliography
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