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Pestel of Vinamilk (political, environment, social, techno, economic, legal) - PESTEL
PESTEL Analysis - Case Study of Vinamilk by Phạm Dung
Vinamilk pestel factor
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PESTEL Analysis - Vinamilk
I. PESTEL Analysis (Six forces)
- A PESTEL analysis is a strategic framework/tool used to evaluate the business environment in which a firm/ organization operates.
- Analyze and monitor the macro-environmental factor (It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment.)
- Combined, the six factors can have a profound impact on risks and opportunities for firms
II. Vinamilk - PESTEL Analysis
● Overview of Vinamilk
- Is one of brand name belong to Vietnam Dairy Products Joint Stock Company
- Established in 1976 (The company was founded August 20, 1976 and is headquartered in Ho Chi Minh City, Vietnam.) The leading enterprise in the field of producing dairy products in Vietnam
- Wide range of products: (fresh milk, yoghurt, drinking yoghurt, fermented yoghurt……) through Vinamilk brand names
- Chief Executive Officer & Director: Lien Kieu Mai
- Outstanding achievements based on 2021 financial statements:
- Has nearly 250.000 retail outlets all over Vietnam
- Vinamilk has almost dominated the Vietnamese dairy market with over 55% market share
- 36th in Top 50 Global Dairy Companies (according to Plimsoll revenue) (is also the only representative of Southeast Asia in this list)
1. Political factor
● Theory: These factors are all about how and to what degree a government intervenes in the economy or a certain industry. Basically all the influences that a government has on your business could be classified here. This can include government policy, political stability or instability, corruption, foreign trade policy, tax policy, labour law, environmental law and trade restrictions. Furthermore, the government may have a profound impact on a nation’s education system, infrastructure and health regulations. These are all factors that need to be taken into account when assessing the attractiveness of a potential market.
- Extent how and what a government intervenes in the national economy
- Government’s influence on the business.
- A stable political institution → facilitates doing business inVietnam
- Vietnam is a member of WTO → good sides: attract oversea investors for accessing advanced and modern technologies → improve productivity of Vinamilk.
→ Negative side: compete with foreign dairy company
- Incentive policies from the Government have positive impact on Vinamilk. (Vn market is mixed market → government stills play a big role in market; largest shareholders is State Capital Investment Corp. (Investment Company) (36.0%) Trang 24 - Annual report), specifically, in 2010, Government