ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 18: Global Business Environment (530)

Submission date 22.04.2022 Date received (1st submission)

Re-submission date 03.05.2022 Date received (2 nd submission)

Student name NGUYEN NGOC BAO TRAN Student ID GBC19017

Class GBC0803 Assessor name DUONG KHANH VINH

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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.

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Assignment Brief 1 (RQF)

Higher National Certificate/Diploma in Business

Student Name/ID
NGUYEN NGOC BAO TRAN/ GBC19017
Number:

Unit Number and Title: Unit 18: Global Business Environment

Academic Year: 2020-2021

Unit Assessor: DUONG KHANH VINH

Assignment Title: ASSIGNMENT 1 – Drivers & challenges for globalization

Issue Date:

Submission Date:

Internal Verifier Name:

Date:

Submission Format:

Format:

• This assignment is an Individual report.

• You must use font Calibri size 12, set number of the pages and use multiple line spacing
at 1.5. Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm.
• You should use in text references and a list of all cited sources at the end of the essay
by applying Harvard referencing style.
• The recommended word limit is 2000-2500 words (+/-10%), excluding the tables,
graphs, diagrams, appendixes and references. You will not be penalized for exceeding
the total word limit.
• The cover page of the report has to be the Assignment front sheet 1 (to be attached
with this assignment brief).

Submission
 • Students are compulsory to submit the assignment in due date (slot 18) and in a way
requested by the Tutor.
• The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
• Remember to convert the word file into PDF file before the submission on CMS.

Note:

• The individual Assignment must be your own work, and not copied by or from another
student.
• If you use ideas, quotes or data (such as diagrams) from books, journals or other
sources, you must reference your sources, using the Harvard style.
• Make sure that you understand and follow the guidelines to avoid plagiarism. Failure
to comply this requirement will result in a failed assignment.

Unit Learning Outcomes:

LO1. Analyze the key factors which drive globalization.
LO2. Determine the strategic complexities associated with operating in a global environment.

Assignment Brief and Guidance:

*This assignment guidance is for reference only and can be customized by the tutor to meet
specific needs

Assignment scenario.

Recently, there is a trend that some Japanese firms considered to withdraw their
manufacturing plants from China to establish new ones in other countries like Vietnam. As an
intern of an investment consulting company in Vietnam, you are required to support your
team to prepare a report to a potential Vietnamese client to review the effects of
globalization and its drivers and challenges toward the Vietnamese company and its industry.
This is to convince their potential Japanese partner to corporate with the Vietnamese
company in expanding business to Vietnam market.

The Vietnamese and Japanese firms can be freely chosen by the student within the industry
that your tutor/lecturer suggested.
 Structure of the Report:

General introduction: main purposes and structure of the work.

Main contents of the report:

1. Define the concept globalization in terms of different dimensions: economic, cultural,

political and social. Give examples to illustrate your explanation.
2. Discuss key drivers affecting a specific industry to go globalization based on Yip’s
model. Evidences should be provided to justify your argumentation.

Based on your above discussion, analyze the main opportunities and threats for the
companies operating in the chosen industry face because of the globalization process.

In addition to that, you should evaluate with reasonable justification which are the
key opportunity and challenge for a specific company in the chosen industry or the
industry in general.

3. Explain the complexity of strategic challenges faced by organizations when operating

in a global environment (examples should be provided). In specific:

Identify some of the most influential international trade laws and discuss the impacts
of them on MNCs.

Explain how the global economics may impose more risks to MNCs and how MNCs
may respond to this challenge with their diversification strategy of entry modes.

Explain the difficulties for MNCs when managing a global supply chain (including
global sourcing, production and distribution).

To further enhance your work, when discussing each type of strategic complexity, you
should provide specific examples on which MNCs facing that challenge and how they
responded to the challenge.
A conclusion to summarize all the key findings and analysis must be presented. Plus, you can
conclude whether globalization has done more goodbetter or harm worse to MNCs and how
to encourage the good side and mitigate the bad side of it to businesses.

Unit assessment criteria

Pass Merit Distinction

LO1 Analyze the key factors which drive globalization

P1 Analyze key factors of cost,
market, environment and
competition that drive global
commerce and trade.
LO2 Determine the strategic complexities associated with
operating in a global environment
P2 Explain the complexity of
strategic challenges faced by
organizations when operating
in a global environment
supported by specific
examples.
LO1 & 2
D1 Critically evaluate the
M1 Critically analyze the global business environment,
impact that key factors have including the opportunities
upon the global business and challenges faced by
environment in terms of organizations.
benefits and challenges.
M2 Critically analyze strategic
challenges in context of risk
and diversification strategies
and the supply chain flow.
Table of Contents
Assignment Brief 1 (RQF) ..................................................................................................................................... 3
Higher National Certificate/Diploma in Business ........................................................................................... 3
I. INTRODUCTION: ................................................................................................................................................ 8
II. YIP’S MODEL: .................................................................................................................................................... 8
a. Market drivers: ............................................................................................................................................. 8
b. Cost drivers: .................................................................................................................................................. 9
c. Competitive drivers: ..................................................................................................................................... 9
d. Government drivers: ..................................................................................................................................10
III. GLOBAL STRATEGIC COMPLEXITIES: ............................................................................................................14
3.1. PESTEL: .....................................................................................................................................................14
3.2. INTERNATIONAL EXPANSION ENTRY MODEL: .......................................................................................17
I. INTRODUCTION:

Petrolimex, or Vietnam National Petroleum Group, is an enterprise institution in Vietnam. Besides

operating in petroleum and herbal fueloline, the enterprise has great subsidiaries lively in the fields of
insurance, transport, and trading. It, in opposition to PetroVietnam, is Vietnam's main oil and fueloline
generating enterprise. The Vietnam National Petroleum Corporation became to start with created in
January 1956 under the call Vietnam National Petroleum Corporation, an installation by the decree of
the minister of commerce. In December 2015, Petrolimex (thru its subsidiary Petrolimex Nepal) brought
its first batch of aviation fuel. In 2016, in the wake of Brexit, Petrolimex deliberated to promote PJICO to
a foreign fund and merge its actual property interest into its creation subsidiary. Petrolimex caters to oil-
associated services and products in Cambodia's home marketplace. Beyond import/export and refining,
Petrolimex is also lively in the fields of engineering, installation, mechanical and oil equipment,
insurance, and banking. Petrolimex operates 2,352 fueloline stations out of the 14,000 in operation in
the country, with a focal point on far-off and remote areas. Everything in the one's fueloline stations -
lubricants, fueloline, insurance, banking - is produced and bought by Petrolimex's subsidiaries.
Petrolimex debts for 55% of Vietnam's oil-associated imports and leads the marketplace with a 55%
share of the oil merchandise marketplace.

The structure of the report consists of 3 main parts. The first part discusses the key drivers that
influence a particular industry towards globalization based on Yip's model. The second part discusses the
PEST model of Petrolimex and gives an example to support that theory. And the last part is about the
international expansion entry model, and also gives an example of the hypothesis.

II. YIP’S MODEL:

Yip identifies four groups of “Industry Globalization Drivers” that underlie the conditions in each
industry that create the potential for that industry to become more global, and consequently the
potential viability of a global strategy approach, including Market Drivers, Cost Drivers, Competitive
Drivers, and Government Driver (MarkusBauernfeind, 2005)

a. Market drivers:

That first factor is market drivers. It defines how customer conduct distribution styles evolve,
which include the diploma to which customer desires converge around the arena, customers procure on
a worldwide basis, international channels of distribution develop, advertising and marketing structures
are transferable, and “lead” international locations wherein maximum innovation takes location can be
identified (MarkusBauernfeind, 2005).

One component of globalization is the constant convergence of customer desires. As customers

in distinct components of the arena more and more call for comparable merchandise and services,
possibilities for scale rise up thru the advertising and marketing of extra or much less standardized
offerings. How common desires, tastes, and choices will range significantly by product and depend upon
such elements because of the significance of cultural variables, disposable incomes, and the diploma of
homogeneity of the situations wherein the product is fed on or used. This applies to the customer in
addition to business merchandise and services. In many industries, worldwide distribution channels are
rising to fulfill a more and more worldwide client base, in addition to inflicting a convergence of desires.
Finally, as intake styles come to be extra homogeneous, worldwide branding and advertising and
marketing turn into more and more crucial to worldwide success (MarkusBauernfeind, 2005).

b. Cost drivers:

The second factor is the cost driver. The globalization of customer needs and the associated
scaling and standardization options will fundamentally change the economy of many industries.
Economies of scale and scope, experience effects, and exploiting differences in factor costs for product
development, manufacturing, and sourcing in different parts of the world will become more important
as determinants of global strategy. The simple fact behind this is that a single market will no longer be
large enough to support a global-scale competitive strategy in many industries (MarkusBauernfeind,
2005).

Global scaling and economies of scope are already having far-reaching implications. On the one
hand, the more the new economies of scale and scope shape the strategies of incumbents in global
industries, the more difficult it becomes for new entrants to develop an effective competitive threat.
Therefore, the barriers to entry into such industries will be higher. At the same time, rivalry within such
industries is likely to increase, reflecting the increasing level of competition between interdependent
national and regional markets and the fact that true differentiation may be more difficult to achieve in
such a competitive environment (MarkusBauernfeind, 2005).

c. Competitive drivers:

The factor is the competition driver. Industry characteristics, such as the extent to which total
industry revenue is composed of export or import volume, the diversity of competitors in terms of
national origin, the extent to which major players have globalized their operations and created an
interdependence between their competitive strategies different parts of the world – also affect the
globalization potential of an industry. High levels of trade, competitive diversity, and interdependence
increase the potential for industry globalization. The development of the industry also plays a role. As
the underlying characteristics of the industry change, competitors will respond to improve and maintain
their competitive advantage. Sometimes this accelerates the globalization of the industry. At other
times, as in the case of the world's largest home appliance industry, the globalization process can be
reversed. (MarkusBauernfeld, 2005).
d. Government drivers:

The last factor is the government driver. Government drivers of globalization, such as the
presence or absence of favorable trade policies, technical standards, policies and regulations, and
government-run or subsidized competitors or customers, affect all other elements of a global strategy
and are therefore important. in shaping the global competitive environment in the industry. In the past,
multinational corporations relied almost exclusively on governments to negotiate the rules of global
competition. Today, however, this is changing. With the increasing intertwining of politics and economics
of global competition, multinational companies are beginning to pay more attention to the so-called
non-commercial dimensions of their global strategies, which aim to shape the global competitive
environment to their advantage (see the following section). The scope of the global strategy reflects a
subtle but real shift in the balance of power between national governments and multinational
corporations and is likely to have important consequences on how differences in policies and regulations
affecting the economy are resolved in the years to come (MarkusBauernfeind, 2005).

CASE STUDY OF PETROLIMEX:

Petrolimex's business activities began with the implementation of political tasks, guaranteeing
the availability of petroleum for the financial system and national defense. From the initial
infrastructure, up to now, Petrolimex has become a multi-industry economic cluster - one in every one of
the leading enterprises in Vietnam in terms of revenue scale (average of the past 5 years is about
200,000 billion VND. VND/year), simply behind Petrovietnam; dominate the petroleum market share of
about 50%, particularly within the context of the more and more competitive petroleum market. The
extent of human resource education in the group is at a high level. With the determination to build
Petrolimex into a powerful and dynamic economic group, the new complete identity system of
Petrolimex has been applied throughout the system since 2012, from the Parent Company - "Vietnam
National Petroleum Group" to subsidiaries - member units of Petrolimex in Vietnam and abroad.
Petrolimex's new identity is that the development, inheritable the dear core values of the previous
identity and expressing the vision "to go further". Up to now, the Petrolimex brand has been clearly
"positioned" in the minds of shoppers nationwide, particularly during an extremely competitive
environment. In the context of the country's deep integration, challenges and opportunities are
intertwined. Petrolimex applies a management system in keeping with international standards, in
accordance with the laws of the countries wherever Petrolimex does business. Petrolimex has also
created efforts to become a global enterprise - that's the foremost proactive, extensive, and property
approach to integration (Petrolimex, 2016).

Strengths:
- Petrolimex brand is famous in the domestic and international market with more than 65 years of
experience in the petroleum business. In 2020, Petrolimex entered the list of 50 leading brands in terms
of value in Vietnam (according to Brand Finance) (Petrolimex, 2020).
- Having the largest system of material and technical facilities in the leading petroleum enterprises
in Vietnam with a modern and synchronous level meeting regional standards, including a system of
warehouses and ports with a capacity of more than 2,200,000.m3; technology system for pumping,
transporting, dispensing, calculating, and measuring; more than 570 km of petroleum pipelines,…
(Petrolimex, 2020)
- In particular, with Petrolimex's own advantages that are difficult for other large enterprises to
obtain, it is a distribution system of nearly 5,500 sales points across the country, of which there are
about 2,700 petrol retail stores under Petrolimex. Owning Petrolimex has been invested and built over
the past 65 years. All stores have favorable commercial locations, plus the brand reputation has helped
Petrolimex's sales productivity much higher than other social stores. This storage system has been
bringing the highest profit for businesses (Petrolimex, 2020).
- Operating under the model of a large-scale Group including subsidiaries, joint ventures, and
associates operating in the petroleum business and ancillary fields, contributing to the Group's
advantages in capital mobilization and investment in large projects (Petrolimex, 2020).
- Petrolimex's strategic partner is ENEOS Corporation (formerly JXTG Nippon Oil and Energy
Corporation) - Japan's No. 1 energy corporation with more than 100 years of experience, always
accompanying and supporting Petrolimex in improving corporate governance (Petrolimex, 2020).
Weaknesses:

Decree 83/2014 / ND-CP effective from 1/11/2014 has helped petroleum businesses, including
Vietnam Oil and Gas Group more proactive in adjusting gasoline prices. inland. Specifically, with the
mechanism allowing 02 consecutive price adjustments for at least 15 days in case of price increase,
domestic gasoline prices are more closely aligned with world petroleum price movements, minimizing
the risk of the price difference. lower than the purchase price. because domestic oil prices cannot adjust
to world prices as before. However, petroleum is a commodity subject to the State's management and
price stabilization. The price of petrol and oil has not really followed the market mechanism since the
State still controls and interferes with the selling price to achieve the macro goals of other tissue.
Although it is adjusted according to the trend of fluctuations in world gasoline prices, at different times,
domestic gasoline prices have not been adjusted in time with the increase/decrease of world gasoline
prices. significant impact on the Group's production and business (Petrolimex, 2020).

Opportunities:

The demand for petroleum continues to grow along with the growth rate of the Vietnamese
economy. Vietnam's GDP is forecasted to grow at 6-7%/year in 2021. This is a factor showing the stable
growth of the petroleum business. According to official data, the demand for petrol and oil in Vietnam is
still very large, stemming from the rapid increase in per capita income while the per capita consumption
of gasoline is still low compared to that of the Vietnamese market. with the area. Besides, Vietnam is
also a country with a fast growth rate in the number of vehicle owners in circulation. The average CAGR
of passenger cars is expected to reach 22.6% for the period 2020-2025 and continue to reach 18.5% for
the period 2025-2035. Besides that, with rapid economic development, the fields of tourism and services
also grow well, contributing to increasing demand for logistics, transportation, and transportation,
leading to increasing demand for petroleum. Thus, the growth potential of the petroleum business is still
large in the coming time, which is an opportunity for petroleum businesses, including Vietnam National
Petroleum Group, to increase market share (Petrolimex, 2020).

The fact that the Group's Board of Directors strongly encourages and directs the process of digital
transformation, the application of modern science and technology to the facilities, management, and
administration systems of the business has brought new vitality. and is a great driving force for the
Group's sustainable growth in the 4.0 era (Petrolimex, 2020).

Threats:

The competitive environment is increasingly high, due to the attractiveness of the market-leading
to many potential competitors of petroleum businesses, including New businesses to be established in
Vietnam, foreign corporations In addition, there are famous petroleum trading companies in the world
when they have the opportunity to enter the petroleum business in Vietnam. Up to now, there have
been more than 30 importers and more than 100 petrol and oil distributors participating in the domestic
petroleum market, competing with each other and directly competing with traders doing import and
export business. on the retail price of petrol (Petrolimex, 2020).

The prolonged global Covid-19 pandemic will be the greatest risk; global trade tensions, leading
to increased trade protectionism and financial risks that could be exacerbated by a protracted pandemic.
In the fourth quarter of 2020 and 2021, the world economy continues to face four main risks and
challenges (Petrolimex, 2020):

(i) The Covid-19 epidemic is complicated and unpredictable, with the potential for a sudden
outbreak of the virus. next wave;

(ii) US-China trade and technology tensions and between other major countries;

(iii) Geopolitical risks in countries and regions (including the results of the US presidential
election, Brexit negotiations, Sino-Indian relations, the East Sea issue...);

(iv) Risks of global financial instability. Vietnam is not an exception to this common impact
because now the economy is deeply integrated and has a large openness.

The implementation of blockade measures by governments and the phased implementation of

Covid-19 vaccination will still limit demand in 2021, or even longer. Although the world oil price in the
first 2 months of 2021 is on an upward trend, there will still be many unpredictable developments that
will affect the input prices of petroleum businesses, posing great challenges for the Board of Directors.
General Director in managing oil price risks as well as in improving the efficiency of inventory
management. The right decisions from the Board of Directors will be the key to stability and a premise
for the future growth of the Group (Petrolimex, 2020).

After the SWOT analysis of Petrolimex, the author will analyze Petrolimex that has been affected
by the YIP model.

Firstly, Market Drivers, in 2019, Vietnam's petroleum consumption demand will reach 31.2
million tons, double that of 2010. According to the forecast of the Ministry of Industry and Trade from
2020, to 2050, consumption Vietnam's petroleum consumption can be up to 90 million tons to 98 million
tons per year (Hoa H., 2021).

Secondly, Cost Drivers, the adjustment of petrol and oil prices this time is made according to
Resolution No. 18/2022 / UBTVQH15 on environmental protection tax rates for gasoline, oil, and grease,
effective from the date of implementation onion. From April 1, 2022, to the end of December 31, 2022,
and derived from the actual movements of the price of petroleum products on the world market in price
calculation cycles, the principle of determining the selling price at Decree No. 95/2021 / ND-CP dated
November 1, 2021, of the Government (Decree 95) amending and supplementing a number of articles of
Decree No. 83/2014 / ND-CP dated September 3, 2014, on petrol and oil trading and documents guiding
the implementation of Decree 95 of the Inter-Ministry of Industry, Trade, and Finance (Petrolimex,
2022).

Thirdly, Competitive Drivers, Decree 08/2018-ND-CP has significantly removed major barriers for
businesses wanting to participate in the petroleum distribution market, such as abandoning the Plan to
develop a business system in Vietnam. business. petrol and oil trading, removing the conditions for
petroleum production ... however, up to now, the reality of the petroleum distribution market is still only
a "playground" of a few "big guys" like the Vietnam National Petroleum Group. (Petroleum Corporation,
PLX), Vietnam Oil Corporation (OIL), Thanh Le Import-Export Trade Corporation (TLP)... Although the
scale is constantly growing, the two largest enterprises, PLX and OIL alone, accounted for 70% of the
share. total market share (Bao Viet Securities, 2019).

Fourth, Government Drivers, according to the author, this factor has little effect on Petrolimex,
because Petrolimex is a joint-stock company, no longer a state-owned enterprise. However, up to the
present time, the Group has successfully and legally restructured its member enterprises according to
Decision No. 828/QD-TTG dated May 31, 2011, and Document No. 11490/BCT- TCCB dated 27/11/2012
of the Ministry of Industry and Trade; completed the formation of 6 corporations operating effectively
under the model of the Parent company - Subsidiaries; Joint Stock Company in 2013-2017. Regarding the
divestment of state capital at the Parent Company, on July 4, 2018, the Group sent a written report to
the Ministry of Industry and Trade to consider and report to the Prime Minister on the divestment plan.
The Group asked the competent authorities to agree to extend the divestment period to 2019-2020,
instead of 2018 as planned, and increase the foreign ownership ratio to a maximum of 49%. The working
group suggested that in the coming time, in investment work, the Group should ensure the right
direction, ensure sustainable development, consider resource allocation to avoid spreading; divest and
equitize in accordance with the direction of the Government. In addition, the Group needs to improve
corporate governance capacity, management capacity, administrative reform, and cost reduction; strictly
implement the inspection conclusions; effectively coordinate with other enterprises such as PVN, and
EVN; do a good job of preserving the brand and fighting commercial fraud (Phuong P., 2018).

III. GLOBAL STRATEGIC COMPLEXITIES:

3.1. PESTEL:

PESTLE analysis consistently refers to as PEST analysis, is an idea in shopping law. This idea is used
as a tool by arrangements to maintain a path of the extrinsic determinants jolting the arrangement.
PESTLE is a hint that in allure extended form means P for Political, E for Economic, S for Social, T for
Technological, L for Legal, and E for Environmental. On the action of the arrangement, it may be
shortened to PEST, or supplementary regions may be additional. This acquired immune deficiency
syndrome in deciding the future outlook of operation and in cultivating measures for clever
administration (Pathak, 2022).

Political factors contain tax tactics, incidental managing, trade prohibition, correct, levies, and
still governmental support. These factors decide the magnitude at which point an administration may
influence manufacturing or an association (Pathak, 2022).

Economic factors involve financial progress/decline, interest, exchange, increase and wage rates,
lowest wage, active hours, inaction (local and interstate), credit chance, and expense. These factors are
the cause of an economy’s efficiency that straightforwardly impacts a party and more have resounding
enduring belongings (Pathak, 2022).

Social factors involve educational standards and beliefs, well-being knowledge, the study of
human population rates, age disposal, course stances, strength, and security. These factors are
constructive for guests to better plan their marketing analytics and action. These factors are specifically
important for marketers as they mark sure consumers. Additionally, they further climax the local trained
workers and allure enthusiasm to work under sure circumstances (Pathak, 2022).

Technological factors mean novelties and growths in electronics. These determinants impact an
institution’s movements. Several new growths like Artificial Intelligence, IoT, Machine Learning, and
Deep Learning, are in preparation in the science field and if an association abandons to examine the
current it may avoid the allure position of marketing. A few of the technological factors that are
contained in the PESTLE study involve the rate of technological change, the progress of the foundation,
and some administration or bland research (Pathak, 2022).

Legal factors contain changes to ruling jolting hiring, approach to fabrics, quotas, money,
imports/exports, and tax collection. These factors have both extrinsic and internal hands. Certain laws
affect the business atmosphere in a country. Apart from these standards/rules, guests assert their own
set of a rule that applies to a place or group to which a member properly adheres. So, the legal analysis
takes reports from both these angles and forms blueprints custody bureaucracy in mind (Pathak, 2022).

Environmental factors mainly have to do with the effect of the encircling surroundings and the
influence of environmental facets. These contain appliances for grinding garbage regulations,
environmental protection regulations, and strength use organizing. This facet of the PESTLE is important
for certain activities specifically model travel, breeding, farming, etc. However, with Global heating and
the raised need to switch to tenable possessions; moral sourcing (both regionally and concerning a
nation, containing supply chain agility) has urged all arranging to examine the referring to practices or
policies that do not negatively affect the environmental factors. Corporate Social Responsibility (CSR)
has existed fashioned binding arrangements (Pathak, 2022).

CASE STUDY OF PETROLIMEX:

Political factor: 2020 is a particularly difficult year for the production and business activities of
enterprises in general as well as of Petrolimex in particular. Adverse factors, mainly the geopolitical
situation in the world, caused oil price movements to be different for the first time in history, the Covid -
19 pandemic, the natural disaster, storms, and floods that hit the central provinces directly and
comprehensively affect the Group's the production and business activities. However, under the direction
of the Party, the Government, and the Committee for Management of State Capital at Enterprises, the
whole Petrolimex system has united, committed, and worked together to strictly and effectively
implement the direction of the Petrolimex. Besides, the petroleum market in Vietnam is now fiercely
competitive: The number of distributors is constantly increasing; The situation of fraud and trading in
fake petroleum is becoming more and more complicated. In that context, Petrolimex is always consistent
with the strategy of competition by quality and service, resolutely protecting the brand according to the
goal of "transparency" in the petroleum market, and maintaining the trust of customers and partners.,
partner. During the past few decades, despite having to make up for losses, Petrolimex is still willing to
go to remote and isolated places, carry the letter P to thousands, carry gasoline across streams , from the
top of the country to the cape of Ca Mau, from the resilient capital comes to Ho Chi Minh city full of
youth (Hanh H., 2021).

Economic factor: Vietnam National Petroleum Group (Petrolimex) achieves revenue of nearly
169,000 billion dongs in 2021, on average collecting more than 463 billion dongs per day from sales and
services. According to the financial report for the fourth quarter of 2021, Vietnam National Petroleum
Group (Petrolimex, PLX) recorded net revenue of 49,372 billion dongs, up 58% over the same period.
After deducting expenses, Petrolimex`s after-tax profit was 701 billion dongs in the fourth quarter, down
30% over the same period. However, the group`s gross profit from sales and services last year still
reached VND 12,706 billion, up nearly 27% compared to 2020. By the end of 2021, this group has
accumulated a total amount of cash and deposits of more than VND 18,000 billion, of which short-term
financial investments increased by VND 3,277 billion, to VND 11,836 billion (Minh A, 2022).

Social factor: Petrolimex is a member of the Sponsoring Council of the Vietnam Children`s Fund,
Vu A Dinh Scholarship Fund, regularly participates in the Social Fund of the Ministry of Industry and
Trade, the Fund "For the Poor" of the Vietnam Fatherland Front, visits and visits the Vietnam Fatherland
Front. In the period 2015 - 2020, the Group has spent more than 300 billion VND for social security
activities, in which priority is focused on essential fields such as medical equipment support, education;
building schools and hospitals; removal of temporary housing. Over the past 10 years, implementing the
Government`s 30a Program, Petrolimex has supported Dong Van district (Ha Giang) with more than 80
billion VND to invest in infrastructure construction, poverty alleviation, social security, and promotion.
The practical and effective support in social security work over the years has not only helped Ha Giang
but also many localities across the country step by step improving infrastructure and improve quality of
life (Hanh H., 2021).

Technological factor: In order to improve the level of safety and reduce the risk of oil spills
causing environmental pollution, Petrolimex has deployed an automated application in operation
management. This automatic application of tank level measurement is only at the beginning and still
needs to be studied for more extensive applications in the near future, but has contributed well to
monitoring and controlling the level of external cargo. in the warehouse, partly reducing the labor force
of workers, reducing loss, and improving the safety level in the operation of import and export tanks
(Nguyen K., 2021).

Legal factor: In the past time, Petrolimex has requested units to set up a Steering Committee for
Covid-19 epidemic prevention and control to focus on organizing the effective implementation of
epidemic prevention and control. Units need to implement and organize to fully implement the contents
of Official Dispatch 0109/CD-TGD on proactive epidemic prevention and control. In particular, Petrolimex
requires units to develop and implement production and business plans, solutions to prevent and control
the Covid-19 epidemic at their offices, production, and business locations... to ensure the normal
operation of the Group and its member units, and at the same time protect employees and customers.
For self-service petrol stations, Petrolimex has directed employees to wear masks during working time,
and has a safe solution for self-service customers such as disposable gloves and hand sanitizer, regularly
disinfecting the fuel pump trigger handle, and have detailed instructions for customers (Petrolimex,
2020).
 Environmental factor: In the era of globalization with 4.0 characteristics, AT, IoT & IoS; Social
responsibility is considered a measure of the brand value of the business. Corporate social responsibility
is not only the implementation of humanitarian activities but also includes the responsibility to ensure
effective economic growth while protecting the environment, complying with the law, ethical business
practices, etc. Petrolimex`s social responsibility is imbued with humanity in Petrolimex`s corporate
culture. At the same time, Petrolimex is the only petrol and oil business unit that applies the closed
import and vapor recovery technology at all more than 3,000 petrol stations across the country, ensuring
the reduction of environmental pollution and the control of risk for petrol stations (Nguyen K., 2017).

3.2. INTERNATIONAL EXPANSION ENTRY MODEL:

Exporting is typically the easiest way to enter an international market, and therefore most firms
begin their international expansion using this model of entry. Exporting is the sale of products and
services in foreign countries that are sourced from the home country (saylordotorg.github.io, n.d.).

Licensing essentially permits a company in the target country to use the property of the licensor.
Such property is usually intangible, such as trademarks, patents, and production techniques. The licensee
pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance
as well (saylordotorg.github.io, n.d.).

Partner and strategic alliance: Another way to enter a new market is through a strategic alliance
with a local partner. A strategic alliance involves a contractual agreement between two or more
enterprises stipulating that the involved parties will cooperate in a certain way for a certain time to
achieve a common purpose. To determine if the alliance approach is suitable for the firm, the firm must
decide what value the partner could bring to the venture in terms of both tangible and intangible aspects
(saylordotorg.github.io, n.d.).

An acquisition is a transaction in which a firm gains control of another firm by purchasing its
stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase
price (saylordotorg.github.io, n.d.).

A greenfield venture is often complex and potentially costly, but it affords the firm maximum
control and has the most potential to provide above-average returns. The firm may have to acquire the
knowledge and expertise of the existing market by hiring either host-country nationals—possibly from
competitive firms—or costly consultants (saylordotorg.github.io, n.d.).

IV. CONCLUSION:

Through the report, readers can understand the theoretical basis of the Yip model, the Pestel
model, and the types of internationally expanded join models. The author has used these theories to
analyze the actual application of Petrolimex. It is done to provide author's assessments to know the swot
of Petrolimex. Since then, limited weaknesses and promoting the strengths of enterprises to help the
company attract many customers, increase revenue and profit.

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