Analyzing Vinfast's five competitive forces model.

+Potential development of substitute products:

Gasoline-powered vehicles
>>>> high

+ Rivalry among competing firms: There are several local and international competitors in
the Vietnamese automotive market, such as Ford, Suzuki, and Chevrolet (Large foreign
company, exist in the market for a long time) , .... which creates intense competition for Vinfast.

>>> HIGH

+ Bargaining power of consumers:

Differentiate products: electronic car
Provide different service: Vinfast mobile service
Expensive switch

>>> LOW

+ Potential entry of new competitors: There are high barriers to entry into the Vietnamese
auto market because businesses entering this field need a large financial capacity, and
advanced technology, highly qualified employees

>>> LOW

+ Bargaining power of suppliers: Vinfast has a diversified supplier base, which reduces its
dependency on any particular supplier. In addition, currently, Vietnam's automobile industry still
focuses mainly on import, assembly and distribution. The market demand is not too high, while
the supplier's ability is very good, so the pressure of the supplier on Vinfast is low.

>>> LOW

There are various complexities associated with companies, some of which are:

1. Legal complexity: Companies are legally recognized entities with their own set of
laws and regulations that govern their formation, operation, and dissolution. This
includes complex legal paperwork, compliance requirements, and tax obligations.
2. Organizational complexity: Companies are complex organizations with multiple
departments, hierarchies, and processes. Managing these processes and
 ensuring that the company's goals are aligned across all levels can be
challenging.
3. Financial complexity: Companies have complex financial systems, including
accounting, financial reporting, budgeting, and forecasting. Managing cash flows,
debt, and equity financing can be complex.
4. Market complexity: Companies must navigate complex markets that are
constantly changing. This includes understanding customer needs, competitors,
and economic trends.
5. Operational complexity: Companies must manage complex operations that
involve manufacturing, logistics, supply chain management, and product
distribution.
6. Human resource complexity: Companies need to manage a diverse workforce
with varying skill sets, cultural backgrounds, and expectations. This includes
recruitment, training, retention, and employee engagement.
7. Technological complexity: Companies need to stay up to date with technological
advancements to remain competitive. This includes managing complex IT
systems, data analytics, and cybersecurity.
8. Regulatory complexity: Companies must comply with various regulatory
requirements that are specific to their industry, such as safety and environmental
regulations, data protection laws, and labor laws.
9. Global complexity: Companies that operate globally face additional complexities
such as navigating different legal systems, cultures, languages, and currencies.
10. Risk management complexity: Companies must manage various types of risks,
such as financial, operational, reputational, and legal risks. This includes
developing risk management strategies and contingency plans.
11. Stakeholder complexity: Companies must manage relationships with various
stakeholders, including shareholders, customers, employees, suppliers, and
regulators. Balancing the interests of these stakeholders can be complex.
12. Innovation complexity: Companies must continually innovate to remain
competitive. This includes developing new products and services, adopting new
technologies, and exploring new markets.
13. Sustainability complexity: Companies must consider the environmental and
social impact of their operations. This includes managing their carbon footprint,
reducing waste, and adopting sustainable practices.
14. Ethical complexity: Companies must make ethical decisions that align with their
values and reputation. This includes avoiding unethical behavior such as fraud,
corruption, and discrimination.
It can be difficult to estimate the impact of complexity because there are many
different factors that contribute to it, and these factors can interact with each other in
complex ways. Additionally, the impact of complexity can be difficult to measure
because it may be indirect or long-term, and it can vary depending on the context and
specific circumstances.

Here are some specific reasons why it can be difficult to estimate the impact of
complexity:

1. Interconnectedness: Complexity arises from the interconnectedness of different

systems and processes. Changes to one part of the system can have unforeseen
consequences in other parts of the system, making it difficult to predict the
overall impact of any given change.
2. Emergence: Complex systems can exhibit emergent properties, meaning that the
behavior of the system as a whole is not reducible to the behavior of its individual
components. This can make it difficult to anticipate the impact of changes to the
system.
3. Uncertainty: Complexity often involves a high degree of uncertainty, as it can be
difficult to predict the future behavior of a system based on its past behavior.
This can make it difficult to estimate the impact of any given change.
4. Non-linear relationships: In complex systems, the relationship between cause
and effect can be non-linear, meaning that small changes can have large effects,
or large changes can have small effects. This can make it difficult to estimate the
impact of any given change.
5. Time delays: The impact of complexity may not be immediately apparent, as it
can take time for changes to propagate through a system and for their effects to
become evident. This can make it difficult to measure the impact of any given
change in a timely manner.

VUCA is an acronym that stands for volatility, uncertainty, complexity, and ambiguity.
These factors can create risks for businesses in a number of ways. Here are some
examples:

1. Volatility: Rapid changes in markets, technologies, or other factors can create

risks for businesses. For example, sudden shifts in demand or supply can lead to
 disruptions in supply chains, while changes in exchange rates can impact the
profitability of international operations.
2. Uncertainty: Uncertainty about future trends or events can make it difficult for
businesses to plan and make strategic decisions. For example, uncertainty about
government policies or regulations can create risks for businesses in industries
that are heavily regulated.
3. Complexity: Complex systems or processes can create risks for businesses. For
example, supply chains that involve many suppliers and vendors can be difficult
to manage, and changes to one part of the chain can have unforeseen
consequences elsewhere.
4. Ambiguity: Ambiguity can create risks for businesses by making it difficult to
understand the nature of a problem or opportunity. For example, ambiguous
customer feedback or market research can make it difficult for businesses to
develop effective marketing or product strategies.

To mitigate these risks, businesses need to be agile and adaptable. They need to be
able to respond quickly to changes in the market or other external factors, while also
maintaining a long-term perspective on their strategic goals. This may involve
developing contingency plans, investing in new technologies, or diversifying their
operations to reduce risk. It may also involve developing a culture of innovation and
learning, where employees are encouraged to experiment and take calculated risks in
order to drive growth and success.

Group work: Analyse a case to see how it has suffered from VUCA.
VUCA is an acronym for volatility, uncertainty, complexity, and ambiguity. It is a term that
describes the challenges and risks that organizations and individuals face in today's
fast-paced, ever-changing world. VUCA situations are characterized by unpredictable
events and rapid changes in the environment, which can make it difficult to plan and
make decisions. One example of a case that has suffered from VUCA is the COVID-19
pandemic.

The COVID-19 pandemic has affected the entire world, causing significant disruptions to
businesses, governments, and individuals. The pandemic is a clear example of VUCA, as
it has created a highly volatile, uncertain, complex, and ambiguous situation. Here's a
brief analysis of how COVID-19 has suffered from VUCA:

1. Volatility: The COVID-19 pandemic has been characterized by extreme volatility,

with the number of cases and deaths fluctuating dramatically over time. The
pandemic has caused significant disruptions to global supply chains, leading to
shortages of essential goods such as medical supplies and food.
2. Uncertainty: The COVID-19 pandemic has created a great deal of uncertainty, with
many unanswered questions about the virus, its transmission, and its long-term
effects. There is still much uncertainty about the efficacy and safety of vaccines
and how long their protection will last. These uncertainties have made it difficult
for organizations and individuals to plan and make decisions.
3. Complexity: The COVID-19 pandemic is a complex situation that involves many
interconnected factors, including medical, economic, social, and political issues.
The pandemic has forced organizations and governments to navigate complex
trade-offs between public health and economic well-being. Additionally, the
pandemic has highlighted existing social inequalities and structural issues that
contribute to vulnerability and suffering.
4. Ambiguity: The COVID-19 pandemic has created a great deal of ambiguity, with
conflicting information and messaging from different sources. This ambiguity
has led to confusion and mistrust, making it difficult for individuals and
organizations to make informed decisions.

In conclusion, the COVID-19 pandemic is a clear example of how VUCA can impact
organizations and individuals. The extreme volatility, uncertainty, complexity, and
ambiguity of the pandemic have created significant challenges and risks, highlighting
the need for resilience, agility, and adaptive capacity.

Another example of a case that has suffered from VUCA in Vietnam is the education
system during the COVID-19 pandemic.

The COVID-19 pandemic forced the closure of schools and universities in Vietnam,
leading to a significant disruption to the education system. The situation created a
highly volatile, uncertain, complex, and ambiguous situation for students, teachers, and
parents.
 1. Volatility: The COVID-19 pandemic created a highly volatile situation for the
education system in Vietnam. The closure of schools and universities was
sudden and unexpected, creating a significant disruption to the academic
calendar and teaching plans. The situation changed rapidly as the government
announced new policies and guidelines to address the pandemic.
2. Uncertainty: The closure of schools and universities created a great deal of
uncertainty for students, teachers, and parents. There was much uncertainty
about how long the closures would last, how learning would be delivered, and
how assessments would be conducted. This uncertainty made it difficult for
students to plan their studies and for teachers to plan their lessons.
3. Complexity: The closure of schools and universities created a complex situation
for the education system in Vietnam. The situation involved many interconnected
factors, including the health and safety of students and teachers, the delivery of
remote learning, and the assessment of student progress. The situation also
highlighted existing inequalities in the education system, with some students
having access to technology and resources that others did not.
4. Ambiguity: The closure of schools and universities created ambiguity, with
conflicting information and opinions from different sources. There was much
debate about the effectiveness of remote learning and the fairness of
assessments conducted during the closures.

In conclusion, the closure of schools and universities during the COVID-19 pandemic
created a highly volatile, uncertain, complex, and ambiguous situation for the education
system in Vietnam. The situation highlighted the need for resilience, adaptability, and
creativity in addressing the challenges and risks of VUCA.

Another example of a case that has suffered from VUCA in Vietnam is the impact of natural

disasters on agricultural production.

Vietnam is highly vulnerable to natural disasters, such as typhoons, floods, and droughts, which can

have significant impacts on agricultural production. The situation created a highly volatile, uncertain,

complex, and ambiguous situation for farmers and the agricultural sector.
 1. Volatility: Natural disasters can cause significant volatility in agricultural production in
Vietnam. Floods and typhoons can destroy crops, livestock, and infrastructure, leading to
significant losses for farmers and the agricultural sector. Droughts can also lead to lower
yields and reduced production.
2. Uncertainty: Natural disasters create a great deal of uncertainty for farmers and the
agricultural sector. The timing and severity of disasters are unpredictable, making it difficult
for farmers to plan their production and for policymakers to prepare effective disaster
response strategies.
3. Complexity: The impact of natural disasters on agricultural production is complex and
involves many interconnected factors, such as the availability of water, soil quality, and
access to technology and resources. The situation is also complicated by the diversity of
farming practices in Vietnam, each with its own set of challenges and vulnerabilities.
4. Ambiguity: The impact of natural disasters on agricultural production is ambiguous, with
conflicting information and opinions from different sources. There is much debate about the
effectiveness of disaster response strategies and the role of government and the private
sector in supporting farmers.

In conclusion, the impact of natural disasters on agricultural production in Vietnam is a clear

example of how VUCA can impact communities and the agricultural sector. The highly volatile,

uncertain, complex, and ambiguous situation highlights the need for effective disaster response

strategies that are resilient, adaptive, and inclusive. It also underscores the importance of building

the resilience of farmers and the agricultural sector to better cope with the risks and challenges of

VUCA.