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“ UEH UNIVERSITY
“iIINTERNATIONAL BUSINESS – MARKETING FACULTY
”
FINAL EXAM
“Course: International Business (EN)
Teachers : Le Hoang Long
Class code : 22C1BUS50322501
Student : Vu Hoang Hai Dang
MSSV : 31211023497
Email : dangvu.31211023497@st.ueh.edu.vn
TP Hồ Chí Minh, ngày 6 tháng 12 năm 2022
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ASSIGNMENT
Question 1 (4 pts – max 500 words)
Describe the shifts in the world economy over the past 30 years. What are the implications
of these shifts for international businesses based in Vietnam?
I declare that this is my original work and that it has not been submitted by someone
else or for any other subject.
Answer:
Over the last 30 years, the global economy has transformed tremendously.
The first event that defined the rise of the international economy - globalization – expanded
throughout the world. Globalization creates numerous opportunities for the global
economy and each country participating in the integration process, including liberalizing
the movement of goods and services with low tariffs, lowering production costs, creating
new investment opportunities, reducing trade restrictions, developing new technologies,
improving development opportunities, and participating in the global economy. However,
it also entails increased reliance, a wider disparity between the wealthy and the poor, the
formation of monopolies, and an increase in crime and corruption.
The second factor is the growing tendency toward industrialization and modernization.
Countries like China, India, Indonesia, and Korea are typical. As a result, countries' labor
productivity has increased fast, as has internal and international trade, but there are serious
concerns about population growth, environmental degradation, and the possibility of
cultural and traditional erasure.
The Fourth Industrial Revolution is the third (circa 2000s). This revolution will continue
to make rapid, perhaps dizzying, advances in disciplines such as artificial intelligence,
robotics, nanotechnology, and the internet. Providing opportunities for enterprises from
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other nations to enter worldwide marketplaces is one of the reasons why globalization is
accelerating.
The formation of new world orders is the next trend to be mentioned . The rise of emerging
economies has resulted in the formation of a new international order and the weakening of
"developed" economies. The Japan-Korea Trade War of 2019, for example, resulted in a
series of bilateral trade disputes over control. The trade war between the United States and
China has had a wide-ranging impact, including a weak economy, costlier items, decreased
sales forecasts, a drop in investment, a drop in the stock market, numerous businesses
relocating, items being boycotted,...
The most recent and significant episode is the worldwide COVID-19 pandemic. This
pandemic has brought about significant changes, with numerous severe ramifications for
the economy. Local disruptions to the global supply chain reduce the global circulation of
products, services, and labor, making all economic activity, commerce, and investment
difficult to be efficient. and international trade cannot operate. The relationship and degree
of cooperation in the economy, commerce, and investment between partners all over the
world has halted, dampening the excitement of investors and businesses, who are also
cautious about increasing production operations.
These shifting global economic patterns have provided both possibilities and problems
for multinational enterprises operating in and conducting business in Vietnam.
About the opportunities:
- Opportunities to develop firms, markets, size, and company coverage in Vietnam with
tax breaks and fast economic growth, Vietnam has signed several agreements. - Reducing
production and distribution costs as a result of an increasingly available and inexpensive
labor supply as a result of Vietnam's golden labor period.
- Goods have the potential to spread extensively.
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- As technology, science, and technology advance, buyers are more likely to approve
products.
- Extend and deepen collaboration with other foreign and domestic firms in Vietnam.
Attractive, more advantageous access to investment funds.
About the challenge:
- Businesses will have to rely increasingly on other nations for raw materials, equipment,
machinery, and so on.
- Businesses would be quickly impacted by global economic events since Vietnam will be
one of the countries most vulnerable to external shocks.
- As knowledge and technology develop in Vietnam, consumers and customers become
more picky and sober. This will need firms providing better products and services.
- Increasing rivalry in Vietnam with other local, foreign, and international firms.
Question 2 (6pts – max 800 words)
International business involves managing in multiple countries with variations in socio-
cultural and political-legal environments. These differences, in many cases, create
significant barriers to international business management. Please choose an article from
the media discussing an issue (in the last five years) of a multinational company whose
international performance and operations have been plagued by socio-cultural or
political-legal barriers. Identify the reasons causing difficulties in the focal firm’s global
business and propose recommendations to help them overcome those obstacles. Note: 10%
of word variation is allowed
Answer:
Subway is a fast food restaurant chain recognized for its menu diversity, which includes
healthy, nutritional sandwiches. Subway has over 41,000 locations in over 100 countries
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thanks to its marketing approach. It is also the world's fastest franchise. However, when
this brand entered the Vietnamese market, it failed due to a diversion from client demands.
Subway aspires to dominate the Vietnamese market, as it has done in other Asian nations.
Subway officially entered the Vietnamese market in 2010. The first location was in Ho Chi
Minh City. With a successful marketing approach in several countries, this brand intends
to create a 50-store network in Vietnam within 5 years.
Despite its lofty goals, Subway has only six locations in Vietnam after six years in business.
Subway shops in Korea, Singapore, and Malaysia will continue to expand by 2020.
However, in Vietnam, Subway has shuttered five outlets, with only one remaining in Da
Nang. Until now (2022), Subway has withdrawn from the Vietnamese F&B market.
Let's examine the reasons behind the failure of Subway in Vietnam.
The first reason for this failure is because the goods do not appeal to Vietnamese
consumers.
Vietnam is a prospective market for global food companies. Vietnam, on the other hand,
has an incredibly rich and diversified cuisine. As a result, when entering any market,
studying unique tastes is critical for brand building.
Subway introduced the original European recipe to the Vietnamese market. As a result, the
mild taste of Subway bread does not capture the hearts of Vietnamese people. Subway is
influenced by both European and American cultures. While Vietnam is a genuine East
Asian country, the cuisine's identity is quite diversified. Specifically, the Vietnamese banh
mi. Subway items are frequently dull in flavor. Vietnamese people prefer powerful tastes
such as "fish sauce, soup powder, soy sauce...". Only those factors have caused Vietnamese
consumers to be unimpressed with Subway's offerings.
European-style items like ham, bacon, chicken breast, and so on, mixed with a crust made
of grains and oats, are likewise unusual and difficult for Vietnamese people to stomach.
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And therefore, almost all of Subway's expansion into Vietnamese food is incorrect from
the start due to a lack of awareness of the traditional culinary culture of Vietnam.
The second reason for Subway's failure is that it did not thoroughly research the
purchasing habits of Vietnamese consumers.
When it comes to the Vietnamese market, Subway's ordering process is still rather
cumbersome. Users must go through 5 stages to purchase a cake, beginning with buying
the crust and ending with the sauce. Furthermore, customers must park their automobiles
outside in order to access a Subway restaurant. This makes purchasing a banh mi take
longer than the Vietnamese people's rapid
Keeping the purchasing culture in Western countries has thus revealed inadequacy when
applied to the Vietnamese market. Vietnamese consumers, in particular, have a plethora of
bread options.
The third factor is the significant price barrier.
A sandwich at Subway costs between 35,000 VND and 160,000 VND. This is relatively
high when compared to the average income of Vietnamese people. Even Vietnamese bread
on Subway's menu is more expensive than the industry average.
The finally reason for failure is the excessive competition from Vietnamese bread.
Essentially, Vietnamese people continue to choose banh mi. Bread is also far less expensive
than a burger or sandwich. Many researchers believe that Vietnamese bread has an
extremely long shelf life. Furthermore, bread is recognized as one of the top ten most
delectable cuisines in the world. It is also the Vietnamese people's "national" dish. As a
result, Subway with Sandwich is "difficult to find" when it comes to competing with bread
in terms of flavor.
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On the scale, Vietnamese bread absolutely dominates when: the price is substantially lower
(often twice as low), the taste is rich and ideal for the Vietnamese palate.
Subway performed miserably in comparison to typical Vietnamese bread goods.
To be able to survive in a new market, any firm must first understand the consumption
habits of its clients in that area. Because Subway has not done so,
- The first piece of advise is that Subway spend in knowing the Vietnamese market
in order to understand how customers here have food culture and taste.
- After studying its clients, Subway must assess if its goods are appropriate for the
Vietnamese market and make the required changes to adapt to the new market.
- Following that, they must devise strategies for efficiently reaching the market.
Because the level of living in Vietnam and Europe differs, Subway should make a pricing
adjustment, such as decreasing the price of bread or selling in combinations, with
promotional coupons and set discounts.
- Subway should also improve its service to make it more convenient and save time.
Establishing takeaway stalls can shorten the time it takes to buy food and meet customers'
demands for bread as quickly as traditional banh mi on the street.
- Finally, Subway and other companies in similar situations should conduct more
thorough research into the host country's market, including consumer and social culture,
economic level, and so on, before entering it.
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DOCUMENTATION
1. Những xu hướng mới của kinh tế thế giới và tác động đến kinh tế Việt Nam (Phần
1). (2022). Retrieved 16 October 2022,”from https://hdll.vn/vi/nghien-cuu---trao-
doi/nhung-xu-huong-moi-cua-kinh-te-the-gioi-va-tac-dong-den-kinh-te-viet-nam-
phan-1.html “
2. Những cơ hội và thách thức đối với phát triển kinh tế của Việt Nam. (2022).
Retrieved 16 October 2022, from https://hdll.vn/vi/nghien-cuu---trao-doi/nhung-co-
hoi-va-thach-thuc-doi-voi-phat-trien-kinh-te-cua-viet-nam.html
3. Anh, H. (2022). Chiến lược Marketing của Subway tại Việt Nam thất bại vì đâu?.
Retrieved 6 December 2022, from https://nhahangso.com/chien-luoc-marketing-
cua-subway.html#3_Phan_tich_chien_luoc_Marketing_cua_Subway
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REPORT ON THE PLAGIARISM RATE EXAM
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