the company you choose is in the process of expanding its business to a foreign country or region your team is responsible for developing a comprehensive report for senior management

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Introduction To International Business Instructor: Hồ Ngọc Hồng Phương

GROUP ASSIGNMENT

TOPIC: The company you choose is in the process of expanding itsbusiness to a foreign country or region. Your team is responsible fordeveloping a comprehensive report for senior management,providing valuable insights into the cultural differences between thetwo countries and how these differences are likely to impactoperations your business.

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Table of Content:

I. Project overview:

1. Project purpose: ...

2. About the company and international expansion: ...……...

II. Company Overview:1. Company history, industry and operations:...

2. Context of overseas expansion:...

3. Explain the decision to expand abroad: ...

III. Cultural analysis:1. Introduces the concept of cultural differences and relevance : ...

2. Explanation of the cultural dimensions of Hofstede's model:...

2.1. Power distance: ...

2.2. Individualism: ...

2.3. Masculine/Feminine:. ...

2.4. Avoid uncertainty:...…

2.5. Long term orientation:………

3. Compare cultural aspects between home country and host country:...

4. Cultural differences impact aspects of a company's operations:...

4.1. Marketing and advertising strategy:...

4.2. Human resource management: ...

4.3. Communication and negotiation:...

4.4. Decision making process: ...

4.5. Leadership and management style: ...

4.6. Recommendations and strategies:...

5.7. Based on the analysis of cultural differences, make clear:...

6. Make clear recommendations about the international business strategy thecompany should pursue:...

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7. Justify recommendations with explanations:...III. Conclusion:

IV. References:

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I. Project overview:1. Project purpose:

Develop an appreciation of international business knowledge in the context of culturaldifferences and their impact on business operations.

Improve critical thinking skills by identifying, analyzing, evaluating, and constructingarguments that demonstrate a deep understanding of management issues related tointernational business

Gain proficiency in searching and locating materials using both library and internet resources.Analyze information sourced from business cases and articles and synthesize this new-foundknowledge into a written report.

2. About the company and international expansion:

Trung Nguyen Group Joint Stock Company was originally a small coffee shop founded by Mr.Dang Le Nguyen Vu in Buon Ma Thuot, known as the coffee capital of Vietnam. TrungNguyen's primary activities involve coffee production, processing, trading, and franchisingthe Trung Nguyen coffee brand. Trung Nguyen Coffee is one of the leading famous brands inVietnam.

Currently, Trung Nguyen has typical products such as:

Instant coffee: Including G7 coffee, Trung Nguyen Legend coffee and specially preparedTrung Nguyen instant coffee (Trung Nguyen Legend Cappuccino Mocha, CappuccinoCoconut,...), filter coffee

Roasted and ground coffee: Including popular roasted and ground coffee (Aspiration Coffee I,S Conquer Coffee, Vitality Coffee) and medium-high roasted coffee (Premium Blend,Gourmet Blend, House Blend).

Coffee beans: Includes 3 groups: Trung Nguyen Legend Success coffee beans (1,2,3,8) andBuon Ma Thuot Espresso coffee. In particular, Trung Nguyen also has Specialized Coffee:The highest quality, highest quality coffee product in Trung Nguyen including Legend Coffee(weasel coffee), Weasel coffee, Creative coffee 8. Up to now, Trung Nguyen's products have

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been exported to more than 60 countries globally, typically: USA, Canada, Russia, UK,Germany, Japan.

In 2019, according to statistics just announced by Kantar World Pannel, Trung NguyenLegend was chosen and trusted by 20 million Vietnamese households and is the leadingcoffee brand in Vietnam. Furthermore, the brands Trung Nguyen Legend, G7, Trung Nguyenhave fast growth rates in the world's leading economic markets such as the US, China, Korea,Russia..., Meanwhile, the system Trung Nguyen Coffee retail store E-Coffee has justlaunched in August 2019, is creating a strong franchising boom with a new registration rate of10 stores/day, reaching more than 150 stores and more than 500 contracts and cooperationagreements. The goal of 3,000 stores in 63 provinces and cities in Vietnam and reaching outglobally is set by Trung Nguyen E-Coffee for 2020.

II. Company Overview:

1. Company history, industry and operations:

1996: On June 16, 1996, Chairman DANG LE NGUYEN VU founded Trung Nguyen inBuon Ma Thuot.

1998: Established the first coffee shop in Ho Chi Minh City, starting the Trung Nguyen cafesystem in the provinces.

2001: Successful franchising in Japan and Singapore. Announcing the slogan: "SparkingCreativity".

2003: G7 instant coffee product was born with the event "G7 Instant Coffee Festival" at theReunification Palace. As a result, 89% of people chose G7 as their most favorite product.2010: Trung Nguyen coffee products exported to more than 60 countries and territoriesglobally.

2012: Coffee brand most loved by Vietnamese consumers.

Launching the Journey of Great Will - Starting a Business to Build a Nation with the CreativeFestival for Vietnamese Aspiration attracting more than 50,000 participants.

2017: Trung Nguyen Legend officially opened a representative office in Shanghai (China).Launching the E – Coffee Model.

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2022: Announcing the Journey to Experience the Mindful Lifestyle. Forbes magazinehonored Trung Nguyen Legend as "Awakening Brand".

2023: Opening of Representative Office in Korea.Celebrating 20 years of G7 brand conquering the globe.

Currently, G7 energy coffee products are widely sold on all major sales websites such asAlibaba, Taobao.com, Tmall.com, Yihaodian.com, jd.com and over 1,000 supermarkets inChina. Opened right before the Chinese National Day holiday, Trung Nguyen Legend hasbecome a check-in address that attracts Shanghai youth. Quite a number of hot girls, KOLs,and reviewers have chosen the shop to experience and record vlogs. Currently, only TrungNguyen has researched and discovered three coffee civilizations including Ottoman, Romanand Zen.

For the first time in the US, coffee lovers can experience a cup of filter coffee and iced milkcoffee made from Trung Nguyen Legend's Creative 1-8 roasted and ground coffee line,suitable for many tastes enjoy differently. The brand also introduced a coffee menucombining Vietnamese agricultural products such as egg coffee, ginger coffee, coconutcoffee... to bring special experiences to American customers.

2. Context of overseas expansion:

International markets: Coffee is one of the industries with export potential in Vietnam andcurrently Vietnam's coffee exports are ranked 2nd in the world in the international market.Trung Nguyen has seen this as an opportunity to develop as well as penetrate the internationalmarket to seek new opportunities.

Revenue: Expanding the market is a very difficult and challenging task, but this is also anopportunity to grow revenue many times compared to only operating domestically.

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Branding: Trung Nguyen is famous for its good product quality. Therefore, expanding theinternational market not only helps Trung Nguyen increase a large number of customers butalso brings Trung Nguyen brand to a new level, increasing brand value.

Demand: Perhaps many people around the world have a need to consume a lot of coffee, sothis is a good opportunity for Trung Nguyen to enter the international market.

3. Explain the decision to expand abroad:

Looking for new opportunities: Italy is the second largest coffee importer in the world.Therefore, this is a country with great potential for development. This helps Trung Nguyencoffee enhance its coffee image and bring in more revenue and customers.

Globality of the brand: Trung Nguyen's goal is to develop a global coffee brand, expanding toItaly can help the company demonstrate diversification.

Large coffee market in Europe: Expansion in Italy can help Trung Nguyen reach a largenumber of customers, because Italy is located in Europe, where the number of coffeeconsumers is also very large.

The passion for coffee in the Italian lifestyle: Since appearing in Italy, over the centuries,coffee shops have been a space to convey historical and cultural stories. In particular, coffeeshops have played a very important role in the process of renewing political, artistic,economic ideology... creating turning points in reshaping Italian culture and Italian style.contribute to creating a new world. Italian national identity as it is today. Therefore,expanding into Italy could be an important step in shaping the global brand image. This canhelp create creativity between Vietnamese coffee and Italian style, not only that but also helpbuild trust and enhance image from international customers.

III. Cultural analysis:

1. Introduces the concept of cultural differences and relevance:

Cultural differences are an important aspect of transnational business and have a majorinfluence on the way associations and individualities work and interact with each other in an

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transnational terrain. Then are some important aspects about artistic differences and their partin transnational business description of Cultural Differences.

The part of Cultural Differences in International Business : Deals and CommunicationCultural differences can lead to misconstructions in communication and business deals. Theway ideas are presented, the dialogue, and the language of communication can varysignificantly in different countries.

Business opinions Artistic values and precedences can impact business opinions. Forillustration, some countries have a free request exposure, while others have a preference forstate operation.

Leadership and Management Cultural differences also have a significant impact on the wayleadership and operation is rehearsed in an transnational terrain. Leaders must understand andadmire the artistic values of workers and business mates.

2. Explanation of the cultural dimensions of Hofstede's model:

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students show respect for teachers and tend not to criticize their teaching. The fact thatemployees challenge leadership is not supported by everyone.

Italy received a 50/100 rating from Hofstede on this dimension due to its support fordecentralization of power and equality. Italy's labor courts and laws are extremely stringentwhen it comes to employee-employer relations. The legal system upholds the notion thatemployers and employees ought to get the same treatment.

2.2. Individualism:

This index represents "the degree of integration of the individual with the collective and thecommunity". A highly individualistic society often has a fairly loose level of ties and anindividual tends to only bond with his or her family. They focus on the subject "I" rather than"we".

Impact on Vietnamese business culture:

In Vietnam's business environment, if there is a strong tendency toward individualization,workers may desire independence and not want to be overly controlled in their work. Personaldecisions and creativity can be encouraged and valued more.

Impact on Italian business culture:

With a score of 76, Italy is an individualistic, ego-centric culture, especially in the big andwealthy cities of the North, where people can feel alone at once. even in the middle of acrowded and busy crowded.

Italy with a score of 76 is an individualistic country, centered on personal interests. In contrastto Vietnam with a score of 20, it is a collectivist country, placing common interests aboveindividual interests. Loyalty in a collectivist culture is paramount and trump's most othersocial rules and regulations.

2.3. Masculine/Feminine:

Masculinity: is the degree to which a culture values traditional male roles such asachievement, power, and control, as opposed to viewing men and women as equals. Highlevels of masculinity indicate that the culture differentiates the roles of men and women, andthat men dominate society.

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Impact up in Italy: With a score of 70, Italy is a Masculine society - driven and driven forsuccess high. Children are taught from an early age that it is good to compete and to bewinners. Winning is important in a person's life. Because the working environment is whereeveryone Italians can achieve their own success, so the competition between peers to.Building a career can be very powerful.

While Italy is a country that honors men's rights with a score of 70, Vietnam. This number ismuch smaller: 40 points. In a country with high femininity, people will be treated with dignitywork in a more moderate way, while masculine nations handle work in a tough way than .This is the difference between two cultures: Italian - a society that values male power andVietnamese Men – society that celebrates feminism and gender equality.

2.4. Avoid uncertainty:

This component relates to how society handles the reality that the future is unpredictable:should we attempt to control it or should we simply let it happen? Anxiety is a byproduct ofthis ambiguity, and various cultures have developed unique coping mechanisms for it. Due toits entrepreneurial mindset and risk tolerance, a startup may initially have a lower level ofuncertainty avoidance. At first, risk-taking and an entrepreneurial spirit can encourageadaptive and innovative attitudes. To ensure stability and control risks, companies may needto comply with more regulations as they grow and develop.

Risk avoidance : 75 points Italy has a high risk avoidance score, indicating that its citizensseldom make dangerous decisions that result in little job turnover and discomfort. vague.High risk avoidance at work necessitates extensive, meticulous planning. Italians may find theLow Risk Avoidance approach to be extremely distressing.

Italy received a score of 75, which is regarded to be a high level. Despite the fact thatVietnam only receives 30 points (45 fewer than Italy) on this criterion: flexible working hours,innovation is not seen as a threat

2.5. Long term orientation:

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Long-term orientation: One way of expressing this aspect is to describe the need for societiesto maintain links with their past, including preserving traditions, while facing the challengesof the times now and future.

Impact on Vietnam: Vietnam is ranked 57 points and belongs to the pragmatic culture group,which means aiming for long-term sustainability. In utilitarian societies, it is believed thatcorrectness depends greatly on context, situation, and time.

Impact on Italy:

A high score of 61 indicates that Italian culture is very pragmatic. In societies that tend to bepragmatic, people believe that accuracy is highly dependent on context, situation, and time.They demonstrate the ability to easily adapt to changing traditions, often promote strongsavings and investments, and facilitate perseverance to achieve results.

3. Compare cultural aspects between home country and host country:

Power distance:

Vietnam: 70/100 shows that the rights gap in Vietnam is very high. That means (people willlisten to leaders, students will listen to teachers, children will listen to parents. And they takeit for granted.

Italy: 50/100 this shows that Italians support equality and decentralization of power. Despiteobvious class differences, they still believe in equal treatment of workers and employers.

Vietnam:20/100 Collectivism is promoted over individualism. Shows that Vietnamese peopleoften integrate into communities to be protected when faced with difficulties but otherwisemust be loyal to that group.

Italy:76/100 Individualism is promoted more than collectivism. Shows that the rights anddecisions of each individual in Italy are highly valued, tends to be independent and advisesothers to be independent.

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