Task 1 Macro and Micro Environmental Fac

Task 1: Macro and Micro Environmental Factors:
Environment is large and complicated, which is a long story. We will mention some details at the
same way economics elements. And marketing environment is one of those things which is
influenced the way the enterprise works. It is being realized that is two topics which are micro
and macro environmental, one of these will be a foundation of business activities.
1. Micro environmental factor
It is the closest one to the company’s status. Before making decisions, the company must go
through the micro factor in order to analysis the level of customer loyalty, suppliers or
distribution, what the competitors do in market, interest group and intermediaries
2. The analysis of SWOT in Vinamilk corporation:

Strengths Weaknesses
- Vinamilk has a long history in operating. - Raw materials
- The firm has a strong distribution network - Unskillful human labor
over the country. - Cost of building facilities.
- Modern technology .
Opportunities Threats
- New products - Mature markets
- New markets - Many competitors
- Substitute products
Strengths
- Vinamilk was established in 1976. Then it becomes the leading business of dairy industry in
Vietnam. It also has a long history in operating so Vinamilk build the trust in customer’s
mind and already have a big amount of current clients.
- The strong distribution helps Vinamilk firm approach the customers from coastal to
mountain, from urban to rural. In addition the enterprise also has more than 300 distributors
in Vietnam
- The company apply many new technology in order to improve their products or satisfy the
potential customers.
Weaknesses
- The amount of crude milk in Vietnam is not enough for producing. Therefore Vinamilk
import 70% of raw materials.
- Professional staffs are still rare in Vietnam. They have full of knowledge but they do not
have practical and soft skills. This point impacts the management the firm and control the
company market.
- Cost of facilities is usually expensive in order to construct the qualified plants as well as
workplace. That is a reason the managers need to ponder about expanding the business.
Opportunities
- The more modern life the more demands of customers. People drink milk not only for
growing but also for their personal reasons such as white skin, loss weight or increase height.
Therefore, Vinamilk always research and improve their products to satisfy those needs.
- The new products will reach new markets and new customers. If consumers interest in new
goods, the company were initially successful. And they will pay more attention on develop
processing and new competitors.
Threats
- The milk market is almost mature and it will die soon. This is a bell for converting
Vinamilk’s market or launch new goods to attract clients.
- When Vietnam joined WTO, many oversea dairy companies participate in dairy markets,
which is increasing the competition between firms.
- Nowadays more and more products can replace milk. This issue will affect to Vinamilk’s
revenue and customer loyalty.
3. Macro environmental factor
It impacts the enterprise for a long time. It can be motivated in lists of four elements (PEST)
such as Political or legal, demography or Economic, Social or cultural and Technology or
physical.
4. The analysis of PEST:
Government regulations and their decisions are great effects in operation. It is called political or
legal. The environmental laws and the regulation safety hygiene are also affected business
especially foodstuff enterprises. The government also supports the dairy development projects
with 2000 billion VND until 2020.
Economic means human population such as ages, genders, size, economy and occupation. This
factor is very significant because it helps company divide the market into different market
segments and target market. For good examples, people who are young and wealthy are target
market and children are potential market of Vinamilk firm. In addition the development of
economy affects the purchasing of domestic customers.
Social (family, friends, relatives,…) also impacts the operation such as the attitude, interest or
behaviors. If people have high salary per month, they will care about luxury foodstuff like milk
products. The demands of rising the health and beauty are going up. In addition, the proportion
of malnourished children is still high because Vietnamese people do not have drinking milk
habit.
Technology is another factor in macro environment. It support the firm improving their products
by new modern technology further. For instant, Vinamik is searching the new associated project
which is called “ Vinamilk Diecerna – dairy products for specialized people who have high
glucose in blood”.
5. The dissociation of five forces:
Bargaining power of suppliers
The number of suppliers will affect to the negotiated power with companies. If there is a few
suppliers, it will make a big competition and impact to the business. The information about
distributors is very significant and it will be a influence in decisions about choosing distributors
of enterprises.
Bargaining power of buyer
Customer is divided into two groups such as wholesalers and retailers. They are also import to
business. The firms need to observe the information about customers or cost of changing
customer or the scale of customers. For example, Vietnamilk want to sell fresh milk and other
milk products, it will have to consider about competitive quality and price in milk market with
Dutch Lady, Abott or Nestle.
Threat of new entrants
New entrants do not affect the company right now but they will be in the future. The attraction of
business and barriers to entry such as capital, technology, resources are difficulties to new
entrants to impact the business.
Threat of substitutes
Substitutes are products which have similar functions with the initial one. They can meet the
demands of customers with cheaper price and high quality.

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Task 1: Macro and Micro Environmental Factors:

1. Micro environmental factor

2. The analysis of SWOT in Vinamilk corporation:

4. The analysis of PEST:

Bargaining power of suppliers

Bargaining power of buyer

Threat of new entrants

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