UNIVERSITY OF FINANCE – MARKETING

INTERNATIONAL SCHOOL OF FINANCE – MARKETING

FINAL
ASSIGNMENT
Asinan Entrepernuership and Innovation

Lecturer: Nguyễn Ngọc Hoàng

Student’s Full name: Nguyen Dong Dong

Student’s ID: 2021006371

HCM, December,10 2022

I have a huge passion for business. I have a plan: after graduating from university, I
can open a coffee shop in my hometown. A small cafe with an extremely simple style
and a close space. The main criterion was "study lessons" in a cafe. My hometown in
An Giang is a small land that is not noisy and bustling like Ho Chi Minh City; it is
extremely peaceful, and the air is very fresh. I love the quiet and the people and things
here, so I did not hesitate to decide to do business in my hometown. I used to think
about opening in Ho Chi Minh City, but now there are thousands of coffee shops
popping up here. After walking a few kilometers, you will easily find a coffee shop.
There are too many very competitive ones, and it will be very difficult in my business
process when there are so many competitors with thousands of similar business
models. I chose the stable business path by applying those models but expanding them
in the countryside. When building a coffee shop, the name of the cafe is one of the
important factors that make up the brand. When I had the idea to open a shop, I
immediately thought of the name "Breezy." Its meaning is "pleasant, cheerful, cool."
Its meaning says it all: the comfort when enjoying the drink and enjoying the quiet,
gentle atmosphere of the bar, as well as the gentleness and joy of the service staff. In
addition, "Breezy" also means to talk about the people and weather in my hometown.
People are extremely friendly and cheerful, and the weather is extremely pleasant,
which can soothe the sorrows and fatigue after a tiring day of studying and working.

As a high school student, in addition to school hours, I always study at home.

Sometimes I want to change the space and atmosphere to be able to study better; I
want to find a place really quiet to be able to study as well as meet friends to discuss
difficult exercises. I'm not the only one who thinks so, but most of the students want
the same thing. But it seems that at that time, my hometown only had curbside coffee
shops for uncles and aunts to drink and talk; it was extremely noisy, especially since
coffee shops were mainly open in the morning and usually closed. They opened very
early, and we only had time in the evening because we spent the whole day in school,
so those cafes are not really for students like us. Because I live in a small town, these
business models are uncommon, and no similar coffee shops appear to exist. I want to
create a "study" cafe model exclusively for students and working people a place where
everyone can enjoy their own quiet space to focus on working.

With the criteria of a coffee shop, I want to give customers delicious, quality,
prestigious, and unique drinks of each type, especially coffee, where the coffee beans
are made by hand. Vietnamese people plant and take care of it. This will be a very
unique identity for my cafe compared to other cafes in my hometown. In order to
reach the target customers more easily, I have chosen an area close to schools, where
many residents are concentrated. It will be very convenient and easy for students when
it opens near schools. After school, you can visit without having to travel far. The
coffee shop not only serves students but also serves everyone. The shop will arrange
an outside space for those who do not like the quiet and want to talk freely.

In all business models, every time someone comes up with an idea, they always make
a long-term plan, outline a direction, and expect the business idea to develop in the
long run. What needs to be done is to set goals and see the vision and mission of the
business; this is the premise for the business to have a chance to achieve success. For
me, because the business is in a small area, my goal in the next 2 years is that the
number of customers will account for 2% of the total number of customers in the city,
the first year's revenue will be 15% of the invested capital, and I will have opened 2
more branches in the surrounding areas in the next 3 years. Corresponding to the goal,
it is very clear that the vision and mission that I want to achieve for my business
model are:

- Vision: In the next 2-4 years, the number of customers will account for 2% of
the total number of visitors to the city. Become a coffee shop with high
recognition and reputation in the local market of the homeland that can be
spread to other neighboring provinces. I hope to be the first choice for
customers, serving and meeting all the needs of the community, especially
those who are studying and working. In addition, our mission is to bring
customers relaxing moments with friends and relatives, and we especially want
to spread the value of coffee to the community so that they can feel The value
of each fragrant, clean coffee bean that is grown and cared for by Vietnamese
farmers. It is an honor for us.

Customer retention is one of our long-term goals. Most businesses that are open for
only a few years or even a few months will close because there are not many
customers, leading to losses. They have to pay too many fees without making a profit.
Attracting customers is one of the things that few businesses can do. The target
customers that my shop wants to target are students and working people, to increase
recognition as well as the number of customers such as planning a campaign to reach
customers, I will develop many incentives, open promotions, create loyalty programs,
and accumulate reward points for guests. I always put myself in the shoes of the
customer, and we are usually easily swayed by promotions, especially discounts and
buy-one-get-one-free deals. So on the day of opening, we plan to implement a
discount program for customers who are students. When you come to the shop, just
show your student card, and you will get a 30% discount on your bill. Programs will
be held regularly on each important holiday, such as March 8, Christmas, New Year's
Day, and possibly customers' birthdays. Before the date of the program, the shop will
announce it in advance to attract, impress, and pique the curiosity of customers.
In addition to retaining customers with promotions, it is also important to listen to and
care about customers. To be closer to our customers, we have designed each table with
sheets of paper. Customers have the right to value and contribute their own opinions
when experiencing the shops and what makes them satisfied with the service attitude
as well as drinks at the bar. Papers will be placed in the comment box, and at the end
of each month, they will be filtered out. The messages and positive reviews from
customers will be hung on a "Love Contribution" sign, while the rest of the comments
will be received and modified according to the wishes of the customer. Doing this can
create sympathy and good impressions on customers, as well as make them feel that
they are always cared for and listened to.
Normally, coffee shops in small towns like mine tend to serve as follows: customers
entering the shop will order food, and the staff will bring it to the place. I will apply
the process in a different way, which will be very familiar to people who have lived in
cities, but for a small country, it is different. I want to use this distinction to create
something unique in the shop's service process. The precise procedure is as follows:
When customers enter the shop, they will order at the counter. When the order is
finished, the customer will be given a vibration card by the staff, receive an order
number, and sit at the waiting table when the order number is reached. The staff will
dial the number, which means the card will vibrate. The customer will go to the
counter to pick up the item and return the card to the staff. This can be self-service.
Customers do everything themselves instead of having staff serve them; this will help
customers learn to be more conscious, self-aware, and proactive in everything.

In the process of doing business, most businesses are concerned about the problem of
competitors. This is one of the five competitive pressures in business strategy. It is the
most important factor that creates a competitive environment and influences the
development of a business. The category that I find very interesting is a potential
competitor. If an industry generates huge profits, there is no barrier to entry, which
increases the potential for competition among competitors from all over the region.
The factors that make up the competition can be low investment capital in the market,
constantly changing purchasing demand, similar products, etc. Just a few small
factors, as described above, have helped the competitors. Competitors enter the market
with ease. In order to minimize potential competition, enterprises often apply
measures to prevent entry into specific industries such as:
- Cost advantage: product cost is something that customers are very interested in,
if there is only one option, they will not hesitate, but if there are more options,
they will think and choose where have lower prices. Therefore, when setting
the product price, the price should be at an average level, but that means the
product quality must be guaranteed.
- Differentiation of services/products: Customers are easily attracted by unique,
distinctive, and impressive designs, product packaging, and technology. When
making a difference in services/products, it will be an impressive highlight in
the eyes of customers compared to other competitors in the industry.
There are several major barriers to entry into the coffee industry. Building a
business model with many branches requires a large investment to build awareness
as well as customer loyalty, But for a small business like my coffee shop will
encounter It is very difficult to attract the attention of customers. One of the best
options today is that we will start from a single shop, the shop is invested as much
as possible with not too high capital, improving product quality and pleasing
customers. When the brand is gradually recognized, it will continue to expand to
the next branches.
I always tried to learn a lot, do a lot of research, and gather a lot of useful information
before getting into the business. Currently, on the market, there are quite a few
businesses, but the industry I decided to choose to do business in is the one related to
coffee. The reason I choose coffee is that our country is a developing country, and
agriculture is the industry that accounts for the largest proportion of the economic
structure. Coffee, along with rice, tea, pepper, and other agricultural products, is one
of the agricultural products that plays an important role in Vietnam's agricultural
industry strategy. Coffee is grown the most in the Central Highlands region, and for
many years the coffee industry has contributed a large amount of foreign currency to
the state budget from production activities. In addition, it also creates jobs for millions
of workers, thereby contributing to economic development, and coffee has contributed
to increasing awareness and promoting the image of Vietnam to international friends.
According to research, coffee was introduced to Vietnam around 1870. By the
twentieth century, coffee had appeared on some French plantations. In the 1960s and
1970s, coffee grew more widely on state-owned farms in the northern provinces. By
1975, after the unification of the country, coffee had been expanded throughout the
country. At this time, Vietnamese coffee thrived in the Central Highlands thanks to
capital from intergovernmental cooperation agreements. In 1990, coffee occupied
119,300 hectares nationwide, and in the following years, coffee cultivation became a
thriving movement. Up to now, there are over 500,000 hectares, the output reaches
70,000 tons per crop, and the annual export output reaches about 1 million tons
(ranked second in the world, just behind Brazil). Vietnam's coffee industry has made
great progress. Within 20 years, coffee production has increased hundreds of times;
this can be said to be a great achievement for our country's coffee industry.

The coffee market in Vietnam is becoming increasingly active; many different types
of shops are opening, and coffee is not only a habit but also a part of Vietnamese
culture. A cup of coffee a day will help them stay awake and focused on their work. In
addition, drinking coffee is also an opportunity to gather friends and relatives to study
and chat. Nowadays, life is changing and improving, leading to more demand for life,
so the coffee shop business also becomes vibrant when it has to constantly change to
meet all the needs of customers. Predictably, in the future, the coffee shop business
will continue to be chosen by many people. In recent years, the coffee market has
emerged with many types of shops, such as book coffee, pet coffee, board game cafes,
etc. The "clean coffee" or "green coffee" trend continues to dominate and is favored
by many major brands and focuses on marketing to attract customers. The business of
other items will make you hesitate when you do not know where to open them. But
the coffee business is the opposite; you can open a shop anywhere, from the city to the
countryside.
After analyzing and looking over the trend of the coffee business and the success it
brings to the country. In addition, to the success of the industries for the country,
parallel to that are the negative effects that are facing the country due to the shortage
of labor. Currently, in the general situation of our country, unemployment is still
happening. The COVID-19 pandemic not only upsets workers' lives but also
negatively affects the macroeconomy. The pandemic has caused a series of businesses
and companies to go bankrupt, affecting millions of workers and pushing them into
unemployment. This is something no one wants. There are many definitions for
talking about unemployment, but in macroeconomics, the term refers to the state of
people who are of working age, have the full working capacity, and have the need to
find a job but are unable to do so. There is currently no employment.
According to the reasons for unemployment, there are four types of unemployment:
unemployment due to job loss, job abandonment, a new entry, and re-entry. Losing a
job and leaving a job can be understood in a simple way, but re-entering and re-
entering is a somewhat strange term that many people may not know. "New entrants"
are new entrants to the labor market who have not yet found work. Re-entry is
understood as people who once left the labor force but now want to return but have
not yet found a job. There are many things that lead to unemployment, but it can be
seen that it has a huge impact on the income and lives of workers. Unemployment
means they have no source of income. They will be unable to pay for necessary
expenses and living expenses. Even the need of finding shelter and eat are not met.
This leads to poverty and reduced working health, and worse, unemployed people can
become a burden to their relatives and society as a whole. In addition to the negative
impact on income, it also affects the socioeconomic situation. In terms of layoffs,
some individuals have to maintain their daily living with a pension, which is a fee
known as a government subsidy. At this time, the state may lose some tax income as
well as pay subsidies to workers.
In terms of income, society as a whole will suffer significantly more than individuals
who are unemployed. When unemployed people can no longer afford everything, they
will easily cause many social evils. Since then, social evils have grown in number,
disrupting the security order. In addition, some workers will move from one locality to
another in search of work. This relocation will lead to a massive imbalance in
population between areas, especially big cities. If unemployment is still happening
and increasing at an alarming rate, it shows a sign of a recession and instability. Once
the economy is in recession, it will lead to inflation. According to one of the first
economists, A.W. Phillips, unemployment and inflation have an inverse relationship.

Based on the general situation of the country, especially with my business model, I
always prioritize recruiting and receiving local labor sources. We will select and give
preference to students who have graduated from college but have not had a job, 18-
year-olds who are able to work or who are passionate about bartending, which opens
up opportunities for them. to teach them as well as to provide them with a source of
income sufficient to meet their basic needs This may not help the situation in the
country much, but it can help the people in my hometown. I hope to open many
branches in the surrounding areas so that I can expand the chain of stores to serve the
target group of customers and also help many people in a state of unemployment.