Macro analysis

1. In order toget necessary data for identifying risks in PEST model, what should we do?
Before beginning, we have a question: “What should we do to obtain the essential data for detecting
hazards in the PEST model?”
Throughout designing to check threats in the PEST model, two pieces of data are often deemed
necessary:
- Numeric: database such as trading economics, WB, etc. For example: The world economy, also
known as the global economy, refers to the global economic system, which encompasses all
economic activities carried out both within and between nations, such as production, consumption,
economic management, work in general, the exchange of financial values, and the trade of goods
and services.
- Text: newspaper, academic journal (science direct, TF). For example: To assist us with our political
studies, TheGlobalEconomy.com offers us with a country’s Political Stability Index.

2. Regarding numeric data, how to describe them?

Numerical data is simply data that is expressed numerically rather than in plain language
descriptions. Numerical data, also known as quantitative data, is frequently gathered in the form of
statistics. The capacity to perform arithmetic operations on numbers distinguishes numerical data
from other sorts of number format data.
- Current data. When. Example
Current data means data within ninety days prior to or after the date of loss.
- Graph. When? Example
A graph database is a database designed to treat the relationships between data as equally
important to the data itself. It is intended to hold data without constricting it to a pre-defined
model. Instead, the data is stored like we first draw it out - showing how each individual entity
connects with or is related to others.
- Table. When? Example
A table is an arrangement of data in rows and columns, or possibly in a more complex structure.
Tables are widely used in communication, research, and data analysis. Tables appear in print media,
handwritten notes, computer software, architectural ornamentation, traffic signs, and many other
places.
- Statistic. When? -> check the impact of variables on the others. Example
Statistics is basically a science that involves data collection, data interpretation and finally, data
validation. Statistical data analysis is a procedure of performing various statistical operations. It is a
kind of quantitative research, which seeks to quantify the data, and typically, applies some form of
statistical analysis. Quantitative data basically involves descriptive data, such as survey data and
observational data.

3. Assuming that you identify an opportunity in social component, in which case it could be viewed
as a risk? Explain.
Young individuals between the ages of 18 and 30 are the most likely to purchase online and are well-
versed in technology. People in this age range might be viewed as a prospective consumer base.
When there is a new trend, they will want to buy the same one, which leads to a rise in sales volume
and belongs to this client group.
Young individuals, on the other hand, are prone to following trends and adapting quickly. They will
not purchase an item that has fallen out of favor. This type of consumer is simple to get and simple
to lose.
For example, in the confectionery sector a year ago, melting egg tarts were a popular item that many
young people purchased and consumed. It makes no difference whether it's excellent or awful; it's
all about following trends. Thousands of layers of durian cake are currently popular. The number of
persons purchasing egg tarts has substantially decreased. As a result, if cake shops do not keep up
with the trend in a timely manner, they will drop backward.

4. How many steps we need to follow when analyzing a factor in PEST?

There are 3 main steps we need to follow when analyzing a factor in PEST.
● The first step we need to define each factor in PEST, we call it the intro to analyzing a PEST
factor.

● The second step is to show the evidence, we search and validate (authenticate) data and
clues what is it to affect our business

● The final step is analyzing its impact on your business

For example: we want to run a fast food restaurant. We need to do is define PEST and how it affects
our business. P, we have to pay necessary taxes for the government such as property tax, business
tax. Next is E, Vietnam’s economy during the period of recession affecting GDP per capita, many
people will choose to cook by themselves instead of eating at sidewalk restaurants to save costs. S:
During the period of social distancing, eating directly at the restaurant is not allowed to apply only to
takeout, so it lost a large number of customers. With fast food items, people will eat on the spot
directly, so the take-out is less likely to affect the business. T: Thanks to technology, we can use
social networking sites or e-commerce platforms to maintain sales of our products.

5. Briefly point out macro risks in your chosen project.

For the online bakery shop project, the following macro risks confront us:
Factor Supporting data Explain
Decrease of GDP Nearly 240 billion USD in Vietnam’s GDP has been slowed down, it
growth 2020 as compared to shows that domestic enterprises are facing
261,92 billion USD in 2019. difficultties in production and business due to
the impact of Covid-19.
Decrease of labor The country's labor force Lower proportion of labor force from 15 years
force aged 15 and older in old reveals that the number of people in
IV/2020 (estimated at 55.1 financial difficulty has risen.
million people) decreased
by 860.4 thousand people
compared to the same
period last year.

Industry analysis - Supplier

1. Describe the process whenscanning risks in Supplier component.
In any corporate activity and progress, there are always risks to which we must face and seek
solutions. For collaborative partnerships with distributors, we must thoroughly grasp the stages and
assess the potential hazards.
To examine and analyze risks in collaboration with companies, as well as come up with appropriate
solutions to mitigate them, the following two stages must be taken:
Step 1: Before working with the company, identify and assess the risks (here the distributors)
In this task, we will first deal with the partner's input source. Throughout to properly serve the
import of products into our organization, we must raise the appropriate problems.
For instance, we must be aware of the exact source of quality assurance from our partners. The
term “quality” corresponds to the origin, the quality of the product, the frequency of damage in the
source (huge sources should indicate this risk), and indeed the requirement for a fixed source
(connected to furniture, machinery, and equipment) to maintain long-term quality.
Second, we would have a complete understanding of who the partner is, how reputable they
have become to other business, and then how dependable the company could be on the market we
are targeting. How lengthy has the partners been investigating been running the business.
For instance, assuming we seek to develop a coffee shop, the business with whom we collaborate
supplies coffee beans, equipment, and machinery which used make the coffee. As this is the F&B
industry, the degree of dependency of these businesses is not tremendous, but rather medium,
offering us more options for partners. For instance, we now have firm 'Dakland Coffee', which is
already in operation for a long period of time, also has a wonderful reputation (based on their
customer feedback).
The third factor to consider is the cost. This is really an issue that causes the biggest
"headache" for organizations with respect to obtaining a cost resource that meets the requirements
of "quality-satisfied-cheap”. Finding a partner who can provide both high-quality and low-cost
merchandise is challenging.
For instance, we collaborate with our partner ABBY – a baking ingredient distributor – to run our
candy shop company, but the store prices are increasing, the delivery expenses are also too high,
and the branches are too overpriced. Since this company's headquarters are not nearby to where we
conduct business, we could indeed guarantee the delivery cost or the pricing of the final product
through terms of maintainingcomplete customer satisfaction.
The fourth factor is the payment system. Nowadays, most developing businesses have been
using a range of financial methods that allow us to pay money rapidly and simply. Thus, so what was
the problem here? That seems to be the dangers involved with liquidity and credit for significant
sources of supplies. We will face challenges due to the poor debts, delayed payments capabilities,
negative debts…
For instance, if only one of our import-export partners has a set of non-standard documents, the
payment procedure will be interrupted, or that set of documents is phony. Scam can easily result in
significant financial loss, or the source of products we received is contaminated and not as promised.
Additional major aspect is the stage of renting a dwelling, renting space (if any), and expanding the
business. Therefore, we must perform investigations on the partner leasing that location, carefully
examining if somehow the geographical area is beneficial for the business or not, ensuring that the
rental site is in a dominant position, in the downtown area. Clients have immediate access to
business. We must also address the danger of payment in this subject; for instance, the ground we
get might be different from the amount and documents previously committed mostly by two parties,
due to loss of money and time.

Step 2: Evaluate and resolve issues.

To starters, external risks have three frequency possibilities: frequently, occasionally, and seldom.
Secondly, there are five main severity levels: disastrous – extreme – significant – minor –
unimportant.
Considering the identification and analysis of hazards, we must proceed to risk assessment and
treatment.
For instance, if we purchase kitchen furniture and receive negative feedback from clients about the
company's delivery quality, including such damaged, broken, or incomplete products, we must
review the problem and switch the company's delivery partner through achieving the highest
standards and increase market share.

2. Speaking of Supplier component, explain the concept ‘level of dependence’.

“Level of dependence” is the degree of dependence of a business in the industry on its suppliers. A
business with lots of suppliers will have less dependency than a business with few suppliers.

Cooperating with too few distributors and failing to diversify products sources will result in a
significant risk of reliance and potential dangers. If one of them leaves at a key juncture, the firm
may be stuck and face collapse, impacting sales. Too many distributors, on the other hand, will
diminish the capability to bargain and dilute the quality of management.
For instance, if we trade in bakery products with only one raw material supplier, there may be a
threat that the quantity of goods will be grossly inadequate, it will be difficult to supply on time, and
if the epidemic affects transportation problems, the inspection stage will be better regulated if our
branch cooperates too closely.
For instance, an automobile distribution business with numerous suppliers will not have to worry
too much when the number of customers increases rapidly because they have many options.

3. Justify available risks which could appear when working with supplier in your context.
For the group's project: an online pastry shop, we will undoubtedly face threats when operating and
developing the business, one of which is the distributor's risk. The following is a summary and
explanation of the team's risks:
Factor Supporting data Explain
Ingredients of low quality Pastry ingredients are Time and cost would be wasted
out of date
The shipping partner is Pastry would be Affecting the quality of pastry and
untrustworthy. damaged due to the satisfaction of customers
process of delivery
The cost of renting office The owner of house is a Spending time relocating to locate a new
space skyrocketed scammer apartment, funding is not enough.
(without warning)
Industry analysis - Customer
1. The very first step in Customer analysis should be identifying your customer. Describe the
characteristic of this group.
The first step in doing a customer survey should be to identify the customers. Client segmentation is
a tactic that we employ. This is the process of grouping your customer database into groups with
similar characteristics. If you segment your clients, you will be able to differentiate between them
and focus your marketing efforts on certain groups.
Customers are often classified into the following groups:
• Demographic: Age (range), gender, income.
• Geographic: Location-specific
• Psychographic: Values, beliefs, interests, personality
• Technographic: Based on the device/platform a customer is using, i.e. desktop vs. mobile
• Behavioral: Behavioral segmentation methods, habits, frequent actions
• Needs-based: Specific needs for a product/service
• Value-based: Value to the company, typically measured by Customer Lifetime Value (CLV).
This the amount of profit your company is expected to generate from a single customer over
the whole period of their relationship with you.
• Industry: For B2B, what industry the customer belongs to.
• Business size: Also for B2B, the number of employees or the revenue size.

2. Suppose that you explore a huge market size for your product. Is it enough?
Business development and expansion are substantial factors in increasing sales for firms, therefore
achieving a huge market size somehow does not mean that it is acceptable, and enterprises could
stop. Market size assists a company in identifying sales, earnings, rivals, and consumer behavior,
enabling it to expand the market and attract more customers. In fact, many huge firms in Vietnam
have great customer loyalty and a "delicious piece of cake" market share, but they do not
subjectively and strive to hold the development strategy, maintaining the current rate of growth and
scale.

3. How could your market size change? Explain.

Every company which is experiencing rapid growth would investigate expanding its market size.
However, everything has a drawback; extending the market size requires the supervision from
several linked concerns; many business owners have been subjective in judging the funding source,
resulting in market expansion with unfavorable outcomes.
We will outline the aspects that might influence market size and how to adjust to expand the
market.
The first issue that cannot be overlooked is the geographical location, which has a significant
impact on the business's efficiency. The establishment of such a site seems to be to suit client wants
or to penetrate new markets, depending on the requirements of the business owner. When was
geographical location so crucial and has such a huge effect on market size? First and foremost, our
consumers are all around, as are our potential consumers, and therefore we must reach out to
them. The motivating factor behind this is geography. Expansion of locations is critical for increasing
client reach, sales growth, and profit. Second, by targeting a different client category, firms will be
able to join a fresh market and improve their goods and brands.
 Marketing strategy and brand development are the following factors to consider . Brand
building is a huge benefit for businesses since it increases the prestige of the company, encourages
clients to purchase more products and services, stimulates consumer desire and interest, increasing
buying power, as well as better consumption patterns. When a business intends to grow its market,
they should research and pick a new model rather than duplicating their previous movements, even
if the previous movements have yielded excellent results. Why should people say that?
Rebuilding the company's natural success might be a double-edged sword for them. Businesses
might effectively understand data, change and polish the previous business model, and only then
theywill have the expertise to extend the market with a new strategy.
The third factor is the client, who could be targeted as the key and core portion of the
business. Owning a source of clients for their brand, maintaining clients before a series of similarly
fierce competitors is not an easy task for businesses that have been formed and functioning for a
long time. So, in this aspect, we will discuss how loyal the customer is, whether or not the customer
satisfaction rate has increased, and whether the rate of achieving customers’ expectations are quite
enough.
For instance, after gaining success and sustained sales in a suburban location, a coffee and pastry
firm chose to expand and delve further into the coffee industry to reach clients. Their objective is to
open one more store in the city center, but the consumer group they are targeting is not just
consumers who drink coffee, but also coffee lovers and connoisseurs, therefore every product on
display is thoughtfully invested in quality and steadily increasing their coffee market using this way.

4. Point out customer related risks in your project.

In the F&B market in general, and cakes in particular, a business faces numerous risks due to
customer factors along with loss of customer reliability, reduced loyalty index, low percentage of
returning, negative product-related comments, failure to meet customer expectations, negative
impression of service attitude, and so on.
A company's ability to develop sustainably and expand is primarily down to the customer element. It
is essential for the project's online pastry store to assure cake quality in order to preserve client trust
and a better return rate.
For instance, if customers visit the shop for the first time but the quality of the cakes somehow does
not reach the standard, the consumers may not return, resulting in a reduction in the number of
consumers. For long-term consumers, if they discover that the quality of the cake has declined
compared to the first day, the pricing is no longer acceptable, and the service is no longer the same,
we will lose the customer's confidence, resulting in lower loyalty and a lower return rate.
The following example of customer service attitude, this is a critical aspect that substantially impacts
consumers' expectations and preferences for the shop. Let move on an example of a coffee shop
that has been at the top of the most well-known coffee chain in Vietnam; their team is well-trained
and incredibly friendly to clients, so many customers want to return and enjoy their coffee, even
when drink does not close to their taste.
Customer-related hazards will also be introduced as part of the marketing plan:
- Unprofessional human resources in executing SEO or creating Google Adwords in the proper
manners.
- Content marketing seems to be out of current, uninteresting, duplicated, or include
programming errors.
- When making a purchase, the content marketing may differ from one another, resulting in
unaffiliated marketing and a decrease in UX.
- The payment system (e-wallet, online banking...) may be disrupted or incorrectly computed.
- After-sales service:
o CRM: lost data, incorrect data, less experienced customer service workers, poor data
storing system.
o Promotion: dull, expensive, inefficient