Entrepreneurship: Course Title
Entrepreneurship: Course Title
Entrepreneurship: Course Title
COURSE TITLE:
ENTREPRENEURSHIP
COURSE CODE
MGT 603
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MGT 603_Entrepreneurship
UBIS
December, 2016
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MGT 603_Entrepreneurship
Executive
Nowadays, the failure rate for new service introduction is quite high because there are so
many similar brands compete with each other in the same industry. Specifically, in the business
of coffee shop, there are hundreds of shops with dozens of brands in the market Ho Chi Minh
City today as The coffee house, Effot, Highlands... Most of brands just focus on one point and
the way they show are similar so it hard to find out the difference on it. They totally have the
same design and try to express their outgoing style not only the product but also in the space to
meet the young people’s demand. We have more opinion to show that the coffee market is
saturated. However we ignored one potential market segment that is traditional coffee which has
Viet taste. Although people enjoy most of kinds coffee in the world with special method but they
cannot deny that the taste of traditional black coffee and milk coffee are the best.
So Proviet have set up a plan to develop coffee shop where combines both of traditional coffee
and modern coffee to serve for middle-class customer, the office and young people…
1. Introduction
1.1.Company Background
Proviet coffee was set up in the last 2015 with goal to develop and become the leading brand
in Vietnam. Proviet is brand to combine between the traditional coffee and the coffee in modern
life to bring out the customer the feeling of active life together the rich cultural tradition of Viet
people through a cup of warming coffee.
Proviet will develop a serial of coffee shop over the country in the future to serve for
customer.
1.2.Vision:
To become a coffee supplier with the high quality trusting by customers. Proviet hopes that
our brand to get famous in this field.
1.3.Mission
- Business: Always build close relationships with customers.
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Proviet’s main product is Vietnam’s traditional black coffee and milk coffee with filter.
Proviet has reached out and combined the coffee with warming taste and traditional mixing to
make the taste of old coffee gathering the customer’s modern style. Besides, Proviet also bring
up a lot of taste for choosing of customer like Espresso, Mocha, Cappuccino, Americano…
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2. Market analysis
Business environment is general sector including interaction of inside and outside factor, indirect
and direct effect of production and business activities of the company.
Manpower: Management team is whose have high qualification in coffee field, business
management, finance, gathering some of leading consultant experts in this field.
Staffs were picked up carefully. They are the one whose are young, dynamic and devoted.
Customers will enjoy service style that is so kindness and caring when they come to ProViet
coffee.
Business location: This is the first store therefore PRoViet is preferred to get a good position
characterized by: convenient transportation, having large space and attracting the attention of
customers. Facades of Vincom Center in district one is the appropriate choice for ProViet store.
With this position, the company believes will meet the needs of customers and facilitate long-
term development.
Design: The coffee shop is designed in a contemporary style and elegance. It includes a warm
inner space and an open space with the external environment. Customers can easily select the
appropriate space for their needs with this design.
- Competing with the big brands have longtime business processes such as Highlands,
The Coffee House, Coffee ... Urban Station
- There is not much experience in management, advertising product announcements
from competitors in the industry.
- Spend budget to get good store locations
Economics
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Vietnam now is on the way to develop with more cooperation and integration that affect
more domestic enterprise. The competitive environment between sectors is more and more
increase. The economy’s effect to the company can change its income and value. The economic
growth rate of Vietnam in quarter 3 is near 6.14%. The growth of economy makes customer’s
consumption higher. This point help company can expand the operation and get more profit.
Political
Stable politic is the important factor to make the strong economy. Now coffee field is
protecting by the state about the right, brand, supporting product price and creating export
outside the country. Besides, the government also set up the coffee association to execute,
develop according to the state policy. The coffee association has function to protect the right for
enterprise to avoid monopoly behavior, competitive market and protect coffee Vietnam in the
market’s world. When joining WTO, Vietnam coffee sector have a new appearance, especially
domestic coffee brands are known in the world.
Social
Coffee sector always attracts big consumption in everywhere as this is also a drink
familiar with everybody. All aspects in customs and habits, lifestyle, educational level,
religion… coffee is available in everywhere. However, in every country, the product must have
different features to match habit of customer such as in Europe they like to put more milk in
coffee, meanwhile they like to drink bitter coffee.
Technology
Natural environment:
Vietnam country is located in the tropical belt of the northern hemisphere should have
climatic conditions and geography is quite suitable for the development of coffee and get
Vietnam a special taste. The climate in the southern region is hot and humid, Robusta coffee is
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appropriate for planting. Northern regional climate is cold winters so it is suitable for Arabica
coffee. In addition, Vietnam has agricultural land with high porous texture, rainfall and high
humidity futile convenient coffee development.
Legal
The business environment directly affect by the elements of law and the administration of
the state in the economy. Good legal system is the first condition to ensure a fair business
environment for enterprises, to force enterprises to true. However, if the legal system is not
perfect and there will be significant impact to the business environment and cause difficulties in
production and business activities of enterprises.
The problem for businesses is to understand the spirit of the law and good observance of the
provisions of the law, working to take advantage of the opportunities from the legal terms of the
offer and take the timely policy response to these risks may come from the law to avoid the
damage caused by the lack of understanding of the legal business.
Competitor:
- Direct competitors of ProViet are trademarks as: Highlands, The Coffee House,
Urban Coffee Station ... These stores appear before ProViet a long time but their type
of business is fairly similar and just set develop foreign coffee shop should ProViet
believe coffee flavored Vietnamese coffee in conjunction with their foreign
competition can fully and thrive in the future.
- Indirect competitors include: Starbucks, Gloria Jean's Coffee, Effoc ...
- Alternative products including milk tea shops, juice shop...
Customer:
In the process moves to the market economy, there is fierce competition between the
rivals therefore the enterprises should pay more attention to the identification of customers.
ProViet selects group of middle-class consumers, office workers and young people as their target
customers. They are people wishing to enjoy coffee in the society today. With a combination of
foreign coffee and traditional coffee together in one shop, ProViet believes that our coffee will
always be their first choice.
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2.3.1. Strengths
- ProViet has a modern coffee production technology and a material source quality coffee
that always ensure the quality and quantity to serve customer needs.
- PRoViet staffs whose are experienced, highly qualified experts working with foreign
countries to study for the introduction of consistent quality products to customer needs.
- The company's new products are given to market in line with the cultural tastes and
traditions of Vietnam that few other brands have.
- Investment shops designed in a modern style, elegant suit customers towards the
company.
2.3.2. Weakness
- The company has too many projects and ambitions together one time point cannot focus
entirely to developing good business and more likely to show no significant shortcomings. In
addition, the investment will also create much more dispersed the financial, human and material
resources...
- The selection of professional personnel with experience making high cost of higher
personnel and other businesses.
2.3.3. Opportunities
- The current coffee brands focuses only offer foreign coffee according to the European
taste and miss the traditional coffee. Therefore, the strategy which focuses on serving traditional
products, helps Proviet coffee win the support of consumers. This is a way to get the affection of
customers under the slogan "Vietnamses use The Vietnamese goods"
- Income of target customers is quite high so the business can ensure profits for Proviet.
2.3.4. Threats
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- The risk of losing market share to competitors of big penetration into Vietnam such as:
Starbucks, Coffee Bean...
- Alternative products appear much more such as: coffee cans, milk tea...
3.1.1. Product
The Proviet's main product is the one which have special taste and charming. ProViet
coffee is a combination of traditional coffee of Vietnam, foreign coffee and fresh plant juices.
Traditional coffee:
Milk coffee (hot or ice): This is the mainstream product of traditional flavor Proviet
superb. This product is a combination of Robusta and Arabica coffee beans.
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Espresso coffee:
Americano coffee:
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Mocha coffee:
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Mango grind:
Organce Juice:
3.1.2. Price:
Price is an important factor in the marketing system -mix, it reflects the quality of the
products as well as the company's revenue. Recognizing that, in pricing policies, Proviet always
attaches importance to reduce production costs, lower product costs and thus enhance
competitiveness with rival products on the market as well as increase the number of rows sale of
the company.
Price list:
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Traditional coffee
(ice/hot)
Espresso (ice/hot)
Juice
With this first store, the company wants to focus on developing the market in Ho Chi
Minh City first. The choice of location for the store is a very important strategy. For ProViet,
choosing the right location is chosen to be the area that has a lot of potential customers.
Therefore, the location of a coffee shop is ProViet selected as major commercial centers such as
Vincom, Saigon Centre, Parkson ... the overpriced corner facade. It is considered as the beautiful
and convenient location for the coffee shop today.
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3.1.4. Promotion:
Promote the image of the store building through electronic communication channels:
Website, online newspapers, social networks (Facebook, Youtube, Zalo, ...): Introduction to the
information of the store to help customers find the space, coffee menu key and professional
service style ProViet staff. Information in this channel will be consumer protection quickly
spread.
Is a dynamic business model branded Vietnam, ProViet very seriously engaged in social
activities, culture and sport to improve community influence and promote their brands.
Plan implementation of promotions for special holidays. On this occasion, customers can
enjoy a coffee with a 1 and a lower price than the normal price.
ProViet sales strategy of coffee is trying to bring to our customers the products
Vietnamese flavor in an elegant space, comfortable with a most attentive service.
Special coffee flavors: the purpose of the strategic plan for the difference is that I'm out
of coffee products Vietnam flavor combined with the world's elite coffee. The goal of ProViet
wants to further develop Vietnamese coffee and help customers have more choices suit their
tastes.
Services: ProViet always a top priority for the care for clients served in the best way
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1 Managing Director
1 Store Manager
1 Accounting
7 staff
4 Staff preparation
2 Protect
3.3.2. Inventory
ProViet has a packaging process and storage of the product is quite good. Storage area of
the company is quite spacious, cool and well ventilated in accordance with industry safety
standards. Besides, coffee is the type of product to be packed with a long expiry date.
3.3.3. Suppliers
With high demands on quality, ProViet only work with reputable suppliers for the best
coffee beans. Prioritize Vietnamese goods, companies import materials sourced primarily from
the leading suppliers in Buon Me Thuot lands.
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Most of the retail and coffee shop chain business wants to grow and get the profit, they
must be a good customer service. The store's staff is considered the soul and face of the brand in
front of customers. Therefore, ProViet very focused in recruiting staff and making good
personnel policy.
Recruitment Source: Young people have enthusiasm and dynamism (pupils, students ....)
To live and work in the area of Ho Chi Minh City
Training: staff recruitment will be 20 hours of learning styles to best serve our
customers…
Based on
Owner 1 performance
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Manager
3.6. Supplier:
With high demands on quality, ProViet only works with reputable suppliers for the best coffee
beans. Prioritize Vietnamese goods, companies import materials sourced primarily from the
leading suppliers in Buon Me Thuot lands.
The level of competition in this area is high, ProViet be dynamic, timely appropriate to the needs
of the customer changes and make appropriate competitive strategies.
In the business process, there are many arise can occur unexpectedly such as: changing in
personnel, material resources, premises...
3.8.1. Assumption
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3.8.2. Start-upexpenses
Tool something
50,000,000
up
Advertising
30,000,000
expenses
Internet, website
and phone 5,000,000
registration
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Total 350,000,000
Useful life
History cost (year) Depreciation/year Depreciation/quarter
Asset
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Sale volume
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Total sale
Total
sale 1,875,000,000 4,269,300,000 4,568,151,000 4,887,921,570 17,715,372,570 23,384,291,792 30,867,265,166
Sale
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Overhead
expenses 625,000,000 984,145,000 1,028,972,650 1,076,938,236 3,715,055,886 4,657,643,769 5,780,089,775
Selling and
administrati
on expenses 350,000,000 757,031,000 807,835,670 862,196,667 2,777,063,337 3,975,329,605 5,247,435,078
Corporate
income tax (76,800,000) 57,280,800 74,016,456 63,123,608 371,420,864 590,400,340 972,054,849
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Net Income
1,485,683,456 2,361,601,361 3,888,219,397
Balance sheet
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Total current
Assets 4,085,683,456 6,997,284,817 11,435,504,214
Original
cost 3,750,000,000 3,750,000,000 3,750,000,000
Accumulated
depreciation 1,150,000,000 2,300,000,000 3,450,000,000
Shareholder's Equity:
Retained
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- - -
Y0 Y1 Y2 Y3
Initial investment - - -
(5,800,000,000)
Salvage value of
- -
fixed assets - 300,000,000
Y0 Y1 Y2 Y3
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NPV 11,049,855,731
IRR 79%
Conclusion
With criteria put customers at the center, ProViet always strive to provide our customers
the best things, not only physically, but spiritually important. Hopefully Proviet coffee will
always be a space, the address to which all customers have to know the past are visibly happy.
Through market analysis, SWOT analysis and providing strategic of marketing, sales,
human resources, and operations, ProViet confidents that the company will achieve successful
implementation.
Reference
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