wrap and roll company franchises to indonesia

VIETNAM GENERAL CONFEDERATION OF LABOUR
TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
***
MIDDLE TERM REPORT
INTERNATIONAL MARKETING
TOPIC: WRAP AND ROLL COMPANY FRANCHISES TO INDONESIA
HO CHI MINH CITY, TUESDAY 4
TH
MARCH, 2014
GROUP MEMBERS
1. Trần Bảo Kiều ID: 71106118 Class: 11070601
2. Nguyễn Thị Thủy Tiên ID: 71106074 Class: 11070601
3. Đỗ Thị Cẩm Thu ID: 71106146 Class: 11070601
4. Nguyễn Hoàng Hoài Thương ID: 71106073 Class: 11070601
5. Huỳnh Châu Phương Thảo ID: 71106062 Class: 11070601
6. Trần Huệ Quân ID: 71106137 Class: 11070601

PART 1
INTRODUCTION OF WRAP AND ROLL COMPANY
I. Wrap and Roll Company:
a. Introduction:
Vietnam is a country influenced by France and United State of America after wars, but
it could receive a lot of precious values from both developed countries. To appreciate
national culture of a country, one of criteria is food and eating habit. Vietnam’s cuisine
is very diverse and there are many differences between three regions: the North, the
Middle and the South region. Fish sauce, shrimp paste, soy sauce, rice, fresh herbs,
and fruits and vegetables are always included in every meal of Vietnamese.
With idea of gathering Vietnamese three regions’ wrap and roll food, Mrs Nguyen Thi
Kim Oanh- the owner of restaurant chain decided to establish the first restaurant in
February, 2006, called in Wrap & Roll. Up to now, Wrap & Roll has 8 locations in Ho

Chi Minh City and Ha Noi (Vietnam) and 3 locations in Singapore, it also has the first
one in (Sydney) Australia.Wrap & Roll restaurant has more than 40 rolls and various
sources collected from everywhere of three regions, these dishes are eaten with
vegetables, herbs and dry rice paper form. It will give the feeling of a truly unique
taste.
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In 2008, Wrap & Roll received the awards of Vietnam Economics Time “The Guide
Awards”.
Moreover, the key ingredients in Wrap & Roll dishes are green vegetables and herbs
that are grown in organic soil, no pesticide, deeper taste and good for health. Fresh and
dry rice paper is also a special component in wrapping, it is made from rice and then
drying under the heat of sun, so when eating dry rice paper, there is a unique taste as
salt. Not at all, one of diverse sources is fish sauce- that is made from fermented raw
fish- can be mixed with a lot of Vietnamese dishes, so fish sauce has become
indispensable spice in traditional food culture.
Wrap & Roll was building the new style restaurant, they are designed with the art
environment, combine the traditional style and modern style that give the customers a
feeling they never forget.
b. Products of Wrap & Roll:
Products of Wrap & Roll are diverse dishes from three regions of Vietnam, so it not
only provide the wrapping and rolling food, but also are made from rice like pho or hot
pot. Then the customers can enjoy the sweet desserts made from coconut, banana, red
beans,… it will give customers the perfect “fresh” meal. The ingredients of food are
fresh, less oil and cholesterol, no monosodium glutamate in cooking, not preservative
rice and organic vegetables that protect your health from popularly dangerous diseases
and obesity-that appears in almost Asia countries caused by fast food.
Besides, the service of this restaurant will give customers the strange feeling that they
never forget, under the green color background of Wrap & Roll, the customer can
experience the truly Vietnamese cuisine and remember traditional food with nature and
fresh taste. This table will show all of main dishes of Wrap & Roll Restaurant.

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II. Franchising
Franchising is a business model in which many different owners share a single brand
name. This is a faster and cheaper form of expansion in short time, so it is a good way
for investors if they want to reduce the cost of investment. Therefore, with the
experiences of Wrap & Roll in franchising, the investors can receive the cash flow
faster.
In Vietnam, franchising is still new so when company wants to do this model, they
must research and prepare everything carefully. It is more difficult for Wrap & Roll to
find the suitable franchisees with differences in national culture. Almost food of Wrap
& Roll are made from rice, vegetables, fruit,…that will be good for health and
improve the quality of life. To get the trust of customers, Wrap & Roll try to build the
model “green restaurant” that can achieve the standards of food safety. Not at all, this
will be the best place to feel the beauty of traditional Vietnamese food.
Up to now, Wrap & Roll opened to franchise to Australia- the first franchisee of Wrap
& Roll and Singapore. Australia is a place of cultural diversity of Eastern-Western
countries, so developing a restaurant here will open the way to franchise to other
countries in the world.
III. Market segment
Although Wrap & Roll is a young company in restaurant industry, it still can do
original business. Things from Wrap & Roll are not only food, but also style of
cooking, so almost customers come to restaurant can learn the new cuisine or
remember the familiar taste of traditional Vietnamese food. Therefore, anyone who
love food and want to build the new food style are also potential diners of Wrap &
Roll.
IV. Wrap & Roll style
Wrap & Roll restaurant will provide the wrapping- and- rolling dishes or customers
can do it themselves. So this is the best way for everyone – not only Vietnamese can
understand the Vietnamese cuisine and culture.

Moreover, the first time coming to restaurant, customer will be impressed with the
design of Wrap & Roll is mixing from the dark green to the light green, so the green
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color is key color symbol for the “green restaurant” model. It means everything used
in restaurant are green, fresh, and safety.

The logo of Wrap & Roll emphasizes the natural beauty, it is a circle in green with
“WRAP” and “ROLL” in words, “&” is the word “and” in short, only this word is in
yellow. The special meaning of logo is many small circle, they symbolize for dry rice
paper. With changing the depth of green, it made “green restaurant” model be
remembered in customers’ thinking.
V. Analyze SWOT of Wrap & Roll:
a. Strength- S
o The restaurant has fasten the speed of development, the actual fact is there are 8
locations in Ho Chi Minh and Ha Noi (Viet Nam), 3 locations in Singapore and 1 food
court in Australia.
o There is combination between traditional taste and modern decoration will make the
space for people to relax and enjoy food.
o Employees are active and serve friendly, they always put customers at highest place
“customer is a god”.
The first restaurant serve wrapping-and-roll in Vietnam, it makes unique in food
culture.
There are formulas for 40 dishes and more than 20 different kinds of sauce.
o Ingredients are fresh, less oil and cholesterol, no monosodium glutamate in cooking,
not preservative rice and organic vegetables that protect your health from diseases and
obesity.
b. Weaknesses- W
o The restaurant doesn’t have experiences in franchising so it is difficult to find
franchisees and make brand name famous.
o Differences in culture will limit the consumption in franchisees’ country, so Wrap &

Roll must compete with other competitors.
o Logo design uses green color that is not suitable for foreign market.
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c. Opportunities- O
o Vietnam became a member of the WTO has created many opportunities for companies
to easily integrate into the world economy with simple procedures and having lower
barriers, enjoy the preferential policies, the reduce taxes, create fair competition.
o The first restaurant of wrap and roll food, it collected more than 40 rolls from
everywhere in Vietnam. So it is a place where foreigners can understand Vietnam right
in their own country.
d. Threats- T
o Wrap & Roll must assure the international standards of food.
o Trade barriers to Vietnamese ingredients such as: fish, poultry.
o To country, Vietnam is used to have products that are under strictly checking. It is very
difficult to get the trust of customers.
PART 2
CHOOSING THE COUNTRY FOR FRANCHISING
I. How to be potential franchisees:
Choosing a country that will be potential franchisee is not easy especially to Wrap &
Roll- the first Vietnamese company does this model. Difference in culture and macro
environment is the important factors to affect listing possible countries.
First of all, from many countries in the world, we cannot have a list unless having
criteria. Wrap & Roll is the new brand of Vietnamese wrapping and rolling food, and
vegetables are indispensable ingredient in almost dishes. Therefore, Wrap & Roll
restaurant must choose countries consuming vegetables as much as possible.
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The question is: “Why it must be vegetables, not others? “. Life is more and more
developing, this will threat to the health of people because they must get used to
having faster life, this means that humans live and remain their life at the fastest speed.

They live faster, eat faster, work more…,
they need energy for life. This is also the
reason why every meal is so much fat.
Because of that, the obesity rate increases
faster and faster, this rate also threat
community’s health. Therefore, to reduce
this case of obesity, some country used or are using vegetables as a main ingredient in
cooking.
Vegetables and fruits are very low fat, but they can provide a large amount of vitamins
and minerals such as: vitamin A, B, iron,…Almost people hate eating this kind of food
especially children. Of course, comparing with meats: beef, chicken, pork, the taste
of vegetables and fruit are not delicious, too light. But they don’t know that there are a
lot of antioxidants in vegetables and fruits, it will protect people from oxidant stress,
diseases and especially cancers because antioxidants will make a new thing in body
and this thing will develop the immunity to fight against diseases.
II. Finding the new market:
According the chart of “Vegetables Consumed” by the SASI group (Michigan), there
are some groups suited with criteria. They
are North America, Eastern Europe, Western
Europe, and Eastern Asia. All of them are
belongs to continents: The American,
Europe, and Asia.
Firstly, in the continent of The American, we find out the country having high
vegetables consumed rate is United States.
Percent of U.S. Population Eating 3 or More Vegetables per Day (2009) 26.3%
Secondly, in the continent of Europe, we find out some suitable countries such as:
England, Germany and France.
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Then the final one in Asia is Korea. Korea consumes a lot of vegetables, is the second
ranked after Greek, the first one in Asia.

Country
Vegetable Consumption
(per capita)
1 Greece 257.0 kg
2 South Korea 249.8 kg
3 China 212.5 kg
Sources: Euromonitor International. (2008)
Potential franchisees are United States, England, Germany, France and Korea. The
next step, we analyze the macro environment of these countries then to find out only
new market for Wrap & Roll.
There are five chapters in this part. Each chapter will be information of macro
environment of a country.
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 Chapter 1: United States
 Chapter 2: Germany
 Chapter 3: France
 Chapter 4: United Kingdom
 Chapter 5: Korea
CHAPTER 1
UNITED STATES
1.1. Demographical – Economical:
1.1.1. Population:
_ Population: 317.581.000 people (based on February 23th 2013 estimated), occupy
4.44% population of world, is ranked 3rd on the world
_ Population growth rate: 0.9% (2013 est.) is very high, compare to others country in the
world.
_ Gender: The sex ratio between male and female is 1.05 male/female (2013 est.)
_ Age:
o 0-14 years: 20% (male 32,344,207/female 31,006,688)
o 15-24 years: 13.7% (male 22,082,128/female 21,157,025)

o 25-54 years: 40.2% (male 63,802,736/female 63,581,749)
o 55-64 years: 12.3% (male 18,699,338/female 20,097,791)
o 65 years and over: 13.9% (male 19,122,853/female 24,774,052) (2013 est.)
1.1.2. GDP:
_ U.S GDP got 16,724 trillion (2013) and is ranked 1st in the world
_ Growth rate: In 2013, GDP grew 1.9 percent compared with an increase of 2.8 percent
in 2012.
1.1.3. Income:
Income, easily know that is money for improving life. Higher income means higher
living standards.
o Income: the average rate is 38 001 USD a year (2013)
o Employment rate of the age of 15-64 is 64% ( it means that people have paid job from
15-64 years old)
 83% of people reported having more positive experiences in an average day than
negative experiences. (according to OECD report, 2013)
1.1.4. Trading environment:
U.S is open market for other country to trade.
1.1.5. Inflation rate – Exchange rate:
_ Inflation rate: On January 31
st
, 2014 the inflation rate of United States is 1.6%
_ Exchange rate:
Foreign Currencies Against Vietnam
Dong
updated at 24/02/2014
05:00:00 PM
Buying Rates Selling Rates
Cash Telegraphic Cash Telegraphic
US Dollar (USD)
21,070 21,070 21,130 21,130

British Pound (GBP)
34,453 34,801 35,393 35,393
Euro (EUR)
28,404 28,692 29,296 29,296
1.1.6. HDI (Human development index):
_ HDI: 0,937 (2013 est.)
_ HDI of United States is very high, is ranked 3rd in the world
 The development of people in United States is higher in time.
1.1.7. Level of urbanization:
_ Urban population: 82% of total population (2010 )
_ Rate of urbanization: 1.2% (annual rate of change (2010-15))
 The level of urbanization is high => the level of life of people need to higher.
1.1.8. Member of any international organization:
United States is the member of about 81 international organizations in the world like:
_ World Trade Organization (WTO)
_ Asian Development Bank (ADB) (non- regional member)
_ Asia – Pacific Economic Cooperation (APEC)
_ Association of Southeast Asian Nations (ASEAN) (dialogue partner)
_ Group of Seven (G7)
_ International Development Association (IDA)
_ International Monetary Fund (IMF)
_ North American Free Trade Agreement (NAFTA)
1.1.9. Trade barriers:
The US is one of the world's most competitive markets. Therefore, United States has a
large number of barriers.
Regulative barriers:
The US is increasingly requiring that non-US products comply with regulations on
consumer protection (including health and safety) as well as environmental protection.
Generally, even though no legal discrimination exists, the complex United States
regulative system can represent a structural obstacle for foreign companies´ access to

the United States market.
National security
Since the 9/11 terror attacks the national security in the United States has been
intensified significantly. It has had consequences in various areas in connection with
export to the United States, among other things, the time used for customs declaration
has increased.
Occasionally, the United States uses its authority to exclude foreign products and
services in areas related to national security interests.
Public purchase: In connection with public purchasing a number of stipulations on
federal, state and local levels, gives preference to United States companies and
products.
Sector specific market barriers: In excess of the above mentioned barriers a number of
sector specific barriers exist.
1.2. Political – Legal Environment:
1.2.1. Political Environment:
America is a federal constitutional republic, in which the President of the United States
is the head of state and head of the government, Congress and judiciary share powers
reserved to the national government, and the federal government shares sovereignty
with the state government.
There are major differences between the political system of the United States and that
of most other developed democracies. These include greater power in the upper house
of the legislature, a wider scope of power held by the Supreme Court, the separation of
powers between the legislature and the executive, and the dominance of only two main
parties. Third parties have less political influence in the United States than in other
developed country democracies.
1.2.2. Legal Environment:
United States common law system based on English common law at the federal level;
state legal systems based on common law except Louisiana, which is based on
Napoleonic civil code; judicial review of legislative acts.
1.3. Cultural – Social Environment:

1.3.1. Cultural Environment:
United States is a country that has mixing culture because the components of citizen
come from many different nations such as: India, China, Vietnam, … This makes a
cultural diversity.
1.3.1.1. Intra- national allegiances
People, who came from other countries, always try to “connect” with the same ones
and divide into groups, clubs. In each group or club, they share and communicate like
a family. In America, there also have neighborhoods in cities such as: "Chinatown" of
Chinese, or "Little Saigon" of Vietnamese.
Although they have intra- national allegiances, they still accept others national culture
1.3.1.2. Food culture
Because the lifestyle of American is so fast, they really love fast food like hamburger
with cheese. Despite, in few years, Americans want to combine their hometown
cuisine with other national cuisine like American- Chinese cuisine, New England
cuisine, Midwestern cuisine, Southern cuisine, Tex-Mex cuisine, and Californian
cuisine.
In meals of American, it is always formal and polite. This place has combination of
many diverse food cuisines, American easily get used to changing food or other
nations’ cuisine. Therefore, it is very interesting for them to enjoy Vietnamese cuisine,
up to now they accepted and loved Vietnamese wrapping and rolling food as spring
rolls, pork mixed rolls,
1.3.1.3. Popular culture
The United States is known around the world for the films, shows, and musical
performances that it produces. The biggest centers of popular American culture are
New York City, Los Angeles, Chicago, Florida, and Las Vegas. Smaller venues such as
Branson, Missouri and Nashville have become popular, but most cities host travelling
productions of popular Broadway shows.
American always spend time to go out for relaxing, they can go restaurants, bars,
shopping or even just watching films and enjoy food.
1.3.1.4. Religion

According to data in 2007, this chart show the religious rate in U.S
From chart, Christian gets the highest rate 14%, and in America, people can be free in
choosing a religion or don’t follow any religions.
1.3.2. Social Environment:
It is a controversial issue when discussing about classes of United States society,
because almost Americans believe that there are a simple three-class model that
includes the "rich", the "middle class", and the "poor".
1.4. Natural- Technological Environment:
1.4.1. Natural Environment:
1.4.1.1. Geography:
The United States is a country in the Northern Hemisphere, Western Hemisphere, and
the Eastern Hemisphere. There are 48 contiguous states in North America, Alaska,
a peninsula which forms the northwestern most part of North America, and Hawaii,
an archipelago in the Pacific Ocean. There are several United States territories in the
Pacific and Caribbean. The country has same borders with Canada, Mexico,
Russia, Cuba, and the Bahamas.
1.4.1.2. Natural resources:
There are many different natural resources in U.S such as coal, copper, lead,
molybdenum, phosphates, rare earth elements, uranium, bauxite, gold, iron, mercury,
nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber.
1.4.2. Technological Environment:
The technology of US is continuous innovate and develop day by day. American
advertising has grown massively: new media – radio, television, and the Internet –
deliver commercial messages in ways almost unimaginable more years ago.
Americans are often attracted by new technology and new gadgets; for example,
automobiles, smartphones as iphone, computers as ipad, ultra-thin laptop, or online
shopping,
Besides, the American agriculture industry has gone through massive developments
over the past century. While agriculture in the earlier days in America was focused in
labor, the current trends use sophisticated equipment for farm work. Agriculture took

up more than half the work force in the earlier days while now; the ratio has come
down to less than one-fourth. From use of work force in huge farms, the scenario has
now changed to smaller farms with high productivity using fewer work forces. The
efficiency of the United States agriculture technology has grown enormously over the
last century. From dependency on farm animals, the dependency has now shifted to
mechanization.
CHAPTER 2
GERMANY
2.1. Demographical – Economical:
2.1.1. Population:
_ Population: 81,147,265 (July 2013 est.)
_ Population growth rate: -0.19% (2013 est.)
_ Gender: The ratio between male and female at birth is 1.06 male(s)/female
_ Age:
o 0-14 years: 13.1% (male 5,435,658/female 5,155,065)
o 15-24 years: 10.8% (male 4,457,412/female 4,267,366)
o 25-54 years: 42% (male 17,268,604/female 16,786,146)
o 55-64 years: 13.3% (male 5,354,690/female 5,469,884)
o 65 years and over: 20.9% (male 7,360,711/female 9,591,729) (2013 est.)
2.1.2. GDP
_ GDP: showed on this table:
_ Date _ GDP € Mill.
_ Quarterly
Change
Ann
ual
Cha
nge
_ 2013Q4 _ 693,880€ _ 0.4% _ 1.4
_ Date _ GDP € Mill.

_ Quarterly
Change
Ann
ual
Cha
nge
%
_ 2013Q3 _ 688,850€ _ 0.3%
_ 0.6
%
_ 2013Q2 _ 684,910€ _ 0.7%
_ 0.5
%
_ 2013Q1 _ 674,390€ _ 0%
_ -
0.3
%
2.1.3. Income:
Income, easily know that is money for improving life. Higher income means higher
living standards.
o Income: the average rate is 28 799 USD a year (2013)
o Employment rate of the age of 15-64 is 73% ( it means that people have paid job from
15-64 years old)
 81% of people saying they have more positive experiences in an average day (feelings
of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry,
sadness, boredom) (According to OECD report, 2013)
 Germans have an income level higher
2.1.4. Trading environment:
Germany has a freedom of economy.
2.1.5. Inflation rate – Exchange rate:

_ Inflation: 1.34%
_ Interest rate: 0.25%
_ Exchange rate: 1.37 in February from 1.35 in January of 2014
2.1.6. Infrastructure:
Germany is ranked at Top 2 of World's Top-Ranked Infrastructure
The port of Hamburg is the second largest container port in Europe as the same as the
car port Bremerhaven is also the largest one in Europe, and Duisburg is largest inland
port, too.
Besides, the Frank airport is ranked in the world and the ninth largest one. The
highway system can get the fastest speed and it gets the 37,900 km of railway tracks
are nearly enough to go whole the globe while its high-speed railway network, with
speeds of up to 300 km/h, this railway is the fourth largest one.
2.1.7. Level of urbanization:
_ Urban population: 74% of total population (2010)
_ Rate of urbanization: 0% annual rate of change (2010-15 est.)
2.1.8. Member of any international organization:
Germany is the member of these three organizations:
_ World Trade Organization (WTO)
_ European Unions (EU)
_ Organization for Economic Cooperation and Development (OECD)
2.1.9. Import tariff
_ Protectionist policy of EU although they have open economic policies
_ The German market is much formed by its product standards, known as DIN
(Deutsche Industry Norm). These standards with over 30 000 different norms are from
the view of a foreigner seen as non-tariff barriers
2.1.10. Trade barriers:
Because Germany is a part of EU, it has an open market in country. It means that there
is no trade barrier in Eurozone.
2.2. Political – Legal Environment:
2.2.1. Political Environment:

After the Second World War, the Basic Law provided freedom and stability – albeit
initially only for the Germans in the West of the nation that remained divided until
1990.
Also, this law protects the human rights, the freedom of human. In the Basic Law, ”
Among other things, the other basic rights guarantee the freedom to act within the law,
equality before the law, freedom of the press and media, freedom of association and
protection of the family.”
2.2.2. Legal Environment:
Property owned by foreigners is fully protected under German law, and secured
interests in property are recognized and enforced
The overall entrepreneurial environment remains one of the world’s most transparent
and efficient. The business start-up process is straightforward, with no minimum
capital required.
Intellectual Property Rights in Germany
Registered trademarks are protected under the Trademark Act (Markengesetz). The
trademark is a protected mark or name which a manufacturer or dealer uses to
differentiate his products from those of other suppliers. In order to be protected, the
trademark must be new and characteristically different in order to be entered in the
trademark register kept at the Patent and Trademark Office. The trademark is
published by the Patent Office. A registered trademark is protected for a period of ten
years starting from the day after registration and can successively be extended by
further ten year periods. If the trademark is also to be protected outside the Federal
Republic of Germany, it must be registered internationally. In this case, the length of
protection is ten or twenty years and can be extended
2.3. Cultural – Social Environment:
2.3.1. Cultural Environment:
2.3.1.1. Food culture
German cuisine varies from region to region. The southern regions of Bavaria and
Swabia, for instance, share a culinary culture with Switzerland and Austria. Pork, beef,
and poultry are the main varieties of meat consumed in Germany; pork is the most

popular. Organic food has gained a market share of around 3.0%, and this is predicted
to increase further.
As a country with many immigrants, Germany has adopted many international dishes
into its cuisine and daily eating habits. Italian dishes like pizza and pasta, Turkish and
Arab dishes like döner kebab and falafel, are well established, especially in bigger
cities. International burger chains, as well as Chinese and Greek restaurants, are
widespread. Indian, Thai, Japanese, and other Asian cuisines have gained popularity in
recent decades.
Germans favor hearty meals including meat, such as pork, beef and poultry, in that
order of popularity. The average person in Germany consumes up to 72 pounds of
meat a year.
Although many Germans still eat a comparatively large amount of meat, most people
now favor a more modern and healthy way of cooking. Foreign cuisines have become
an integral part of the staple diet of most Germans, and Italian favorite like pizza and
pasta are now as common in Germany as they are anywhere else. Because of the many
migrants from southern and central Europe some foreign cuisines are more readily
available than others. Most German towns, no matter how small, have an Italian
restaurant and ice cream parlour and a stall where Turkish specialities like Döner
Kebab and Börek can be bought. In bigger cities you will often see Greek and
Yugoslavian restaurants. Asian food has also become very popular.
The warm meal of the day is still often eaten at noon, though modern work routines
seem to encourage assimilation to American patterns. Large family meals are still
common at noontime on Saturdays and Sundays. These are often followed in mid-
afternoon by Kaffee und Kuchen, the German version of tea time.
2.3.1.2. Popular culture
Germany is the largest music market in Europe, and it is ranked 3
rd
in the world. There
are many artists came from Germany such as Herbert Grönemeyer, Scorpions, Blind
Guardian, Rammstein, Nena, Xavier Naidoo, Tokio Hotel and Modern Talking.

German transferred its culture to many nations in the world, Beethoven was one of
them and he had the largest fame that the world recognized.
2.3.1.3. Religion
From the chart, the Christianity got 66%, this
religion is the largest one in Germany. Besides,
the Islam only had 2% and Buddhism got 1%.
The second place is non- religious people,
Germany has a lot of “free” people, it means that
they don’t believe in any religion.
2.3.2. Social Environment:
With the affection by the European culture,
Germany is a modern society with open-minded. Almost people live under the high
standard living, they enjoy their life, they are educated at high levels. There are more
and more immigrants come to Germany.
Not at all, the living in Germany is made sure with the high security. The adults can
receive welfare-state social systems in Germany, they can be supported by the health-
care service and protect the children with the highest education supporting.
2.4. Natural- Technological Environment:
2.4.1. Natural Environment:
2.4.1.1. Geography:
Germany is a country of Eurozone, it placed in the central of Europe, this country is
convergence of many the best of world, it has the largest seaport, railway,…With the
size of 357,021 square km, it had North Sea, Denmark and Baltic Sea in the north of
Germany and Poland, Czech Republic in the east. Besides, we can easily to find out
the Austria and Switzerland in the South of Germany, then the France in the west side,
around the Germany, there are many strongly countries with the developed technology
and science.
2.4.1.2. Natural resources:
Germany has many natural resources. They are timber, construction materials, sale,
uranium, salt, nickel, copper, natural gas, iron ore, coal and lignite.

2.4.2. Technological Environment:
Internet in Germany: High-Speed Connections => we can introduce our product to
Germany through of internet (we can design a website for Germany about our
products)
Potatoes and grains are their main agricultural product. In the flat terrain of northern
Germany and especially in the eastern portions, cereals and sugar beets are grown.
Elsewhere, with the hillier terrain and even mountainous, farmers produce vegetables,
milk, pork, or beef. Almost all large cities are surrounded by fruit orchards and
vegetable farm so they can accept our products.
CHAPTER 3
FRANCE
3.1. Demographical – Economical:
3.1.1. Population:
_ Population: 62,814,233 people (based on July 2013 estimated)
_ Population growth rate: 0.47% (2013 est.)
_ Gender: The sex ratio between male and female at birth is: 1.05 male(s)/female
_ Age:
o 0-14 years: 18.7% (male 6,314,779/female 6,029,258)
o 15-24 years: 11.9% (male 4,017,893/female 3,840,268)
o 25-54 years: 38.9% (male 12,877,039/female 12,764,229)
o 55-64 years: 12.6% (male 4,020,974/female 4,287,381)
o 65 years and over: 17.9% (male 5,029,801/female 6,769,989) (2013 est.)
3.1.2. GDP:
_ 2612.90 billion US dollars in 2012.
3.1.3. Income:
Income, easily know that is money for improving life. Higher income means higher
living standards.
o Income: the average rate is 28 310 USD a year (2013)
o Employment rate of the age of 15-64 is 64% ( it means that people have paid job from
15-64 years old)

 83% of people reported having more positive experiences in an average day than
negative experiences. (according to OECD report, 2013)
3.1.4. Trading environment:
France is a second trading nation in the Western Europe and it has the open market,
also being the large market of the world. In spite of that, it still faces to competitions
around it, especially large market like United States.
3.1.5. Inflation rate – Exchange rate:
_ Inflation rate: In January of 2014, French annual inflation rate remained steady at 0.7
percent for the second straight month.
_ Exchange rate: 0,72430 (2013)
3.1.6. HDI (Human development index):
_ HDI: 0.893 (2012)
 Is ranked 20
th
in the world
3.1.7. Level of urbanization:
_ Urban population: 85% of total population (2010)
_ Rate of urbanization: 1% annual rate of change (2010-15 est.)
3.1.8. Member of any international organization:
_ European Union (EU)
_ European Coal and Steel Community (ECSC)
_ The European Economic Community (EEC)
_ European Community (EC
_ North Atlantic Treaty Organization (NATO
_ World Trade Organization (WTO)
_ International Bank for Reconstruction and Development (World Bank)
_ Organization for Security and Cooperation in Europe (OSCE)
_ Organization for Economic Cooperation and Development (OECD).
3.1.9. Economic Environment:
France remains a great power with significant cultural, economic, military, and

political influence in Europe and around the world. Due to its overseas regions and
territories throughout the world, France has the second-largest exclusive economic
zone in the world. France is a developed country and has the world's fifth-largest
economy by nominal GDP and seventh-largest by purchasing power parity by PPP
figures. In terms of total household wealth, France is the wealthiest nation in Europe
and fourth in the world.
French citizens enjoy a high standard of living, with the country performing well in
international rankings of education, health care, life expectancy, civil liberties, and
human development.
It has the second largest economy in Europe (behind its main economic partner
Germany) in nominal figures, based on the dynamic industrial structure of the French
economy.
France has a mixed economy which combines extensive private enterprise with
substantial state enterprise and government intervention. The government retains
considerable influence over key segments of infrastructure sectors, with majority
ownership of railway, electricity, aircraft, nuclear power and telecommunications
As of 2010, France is the world's 5th and Europe's 2nd largest national economy by
nominal GDP.
According to the IMF, in 2011, France is the world's 18th country by GDP per capita
with $45,460 per inhabitant. In 2010, France was listed 14th on the United Nations'
Human Development Index with 0.872 (very high human development) and 25th on
the Corruption Perceptions Index.
3.2. Political – Legal Environment:
3.2.1. Political Environment:
France is a semi-presidential representative democratic republic, in which the
President of France is head of state and the Prime Minister of France is the head of
government, and it is a multi-party system. Executive power is exercised by the
government. Legislative power is vested in the government, Senate and National
Assembly. The judiciary is independent of the executive and the legislature.
Since the 1789 French Revolution, the political spectrum in France has obeyed

the left–right distinction.
Contemporary French politics are characterized by two politically opposed groupings:
one left-wing, centered around the French Socialist Party, and the other right-wing,
centered previously around the Rassemblement pour la République (RPR) and now its
successor the Union for a Popular Movement (UMP). The executive branch is
currently composed mostly of the Socialist Party.
One of the great questions of current French politics is that of libéralisme — that is,
economic liberalism, individualism society and the market system, as opposed to
government intervention in the economy.
Broadly speaking, supporters of libéralisme want to let the forces of the free market
operate with less regulation. For example, they want little regulation of the work force
and repeal of French laws setting a 35-hour work week rather than leaving this to
contract negotiations.
Critics of liberalism argue that governmental intervention is necessary for the welfare
of workers; they point out that great gains in workers' rights were historically achieved
by government intervention and social mobilization, as during the Popular Front.
Similarly, proponents of liberalism favor free markets and the free movement of
goods, which critics contend benefit the wealthy class at the expense of the ordinary
worker.
3.2.2. Legal Environment:
France uses a civil legal system, that is, law arises primarily from written statutes;
judges are not to make law, but merely to interpret it. In agreement with the principles
of the Declaration of the Rights of Man and of the Citizen, law should only prohibit
actions detrimental to society.
French law is divided into two principal areas: private law and public law. Private law
includes, in particular, civil law and criminal law. Public law includes, in particular,
administrative law and constitutional law. However, in practical terms, French law
comprises three principal areas of law: civil law, criminal law, and administrative law.
Criminal laws can only address the future and not the past.
France is a member of the United Nations and serves as one of the permanent

members of the UN Security Council with veto rights. It is also a member of the G8,
World Trade Organization (WTO), the Secretariat of the Pacific Community (SPC) and
the Indian Ocean Commission (COI). It is an associate member of the Association of
Caribbean States (ACS) and a leading member of the International Francophone
Organization (OIF) of fifty-one fully or partly French-speaking countries.
3.3. Cultural – Social Environment:
3.3.1. Cultural Environment:
3.3.1.1. Food culture
While many traditional, both national and regional, dishes abound in modern French
restaurants, French chefs are famous for innovation and using ingredients during the
season when they are most abundant or tastiest. French food is not only delicious and
beautiful, but eating a meal in a French restaurant is a leisurely delight for all of the
senses. Mastering the French cuisine can take decades, but French restaurants bring
this artistic gastronomy to patrons all over the world. The elements that make up
modern food in France each date from different periods in the history of French
cuisine, but they all come together to create one fantastic culinary culture.
3.3.1.2. Popular culture
French always love the “famous life”, it means that French really want to
see shows talking about the success of them, for example, France
exported culture to other countries through the “France's Nouvelle Star” Show. This
show is a French television series based on the popular Pop Idol program.
3.3.1.3. Religion
According to data in 2012, this chart show the religious rate in France
From chart, Atheism got the highest rate 31%. Only 5% of people didn’t choose other
religion.
Major religions in France include the Catholic Church, Islam, various Protestant
churches, Hinduism, Judaism, Russian Orthodoxy, Armenian Christianity, and Sikhism
amongst others, making it a multi confessional country. Religious organizations should
refrain from intervening in the State's policy-making.
3.3.2. Social Environment:

France has been a major power in Europe since the Late Middle Ages. It possessed the
second-largest colonial empire during the 19th and early 20th centuries. This legacy is
reflected in the prevalence of French language, culture, and jurisprudence worldwide.
Throughout its long history, France has produced many influential artists, thinkers, and
scientists, and remains prominent global center of culture. It hosts the world's fourth-
largest number of cultural UNESCO World Heritage Sites, drawing around 83 million
foreign tourists annually – the most of any country in the world.