ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 18: Global Business Environment (530)

Submission date 25 October 2022 Date received (1st submission)

Re-submission date 18 November 2022 Date received (2nd submission)

Student name Duong Phuong An Student ID GBH200468

Class GBH1004 Assessor name Hoang Van Tung

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
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Table of Contents

I, INTRODUCTION ............................................................................................................................ 4
II, MAIN CONTENT ........................................................................................................................... 5
1. The McKinsey ............................................................................................................................................. 5
7S model of Yakult ............................................................................................................................................................ 6
Commendation................................................................................................................................................................. 10

2.The Influences of ethical and sustainable globalization ................................................................... 10

2.1 Business ethics......................................................................................................................................................... 11
2.2 Sustainable globalization ....................................................................................................................................... 11
2.3 Ethics in the global market of Yakult................................................................................................................... 11

3. Decision making in a global context: ................................................................................................... 12

3.1 The main factors when business going international ..................................................................................... 12
 Political Climate And Legalities............................................................................................................................... 12
3.2 Analyze the strategy diamond of Yakult .................................................................................................................. 14

4. Key barriers to internationalization ...................................................................................................... 17

4.1 Main barriers of Vienam market (PEST).............................................................................................................. 17
4.2 International business strategy ............................................................................................................................ 19

III, CONCLUSION ........................................................................................................................... 20

REFERENCES ................................................................................................................................ 21

I, INTRODUCTION
POOR INTRO
The impact of globalization on corporate operations will be examined in this paper. When
entering a new market, firms will create fair regulations for their operations by taking this into
account. To determine the possibilities and problems the firm will encounter, rigorous analysis of
the McKinsey 7S concept, ethics, and sustainable globalization will be done.

II, MAIN CONTENT

1. The McKinsey 7S model

McKinsey's 7S model was designed by Tom Peters and Robert Waterman, consultants who used
to work at McKinsey - an American consulting company. McKinsey 7S Model is a standard
framework for organizational performance, stating that an organization has 7 internal factors that
need to be linked and strengthened to create organizational success: Strategy, Structure,
Systems, Style, Staff, Skills and Shared values. McKinsey's 7S Model can be applied in many
situations where it is necessary to understand how different parts of an organization work together.
It can be used as a tool to make decisions about the company's future strategy (CFI, 2022).
Key principles that direct the company's well-being are thought to be shared values. The cornerstone of every
organization is its mission, goals, and core values, which are crucial in bringing together all the important elements
of its organizational structure.
 Figure 1: McKinsey’s 7S Model (CFI,2022)

7S model of Yakult
· Sinh viên nên đánh giá cách thức hoạt động trong thị trường toàn cầu ảnh hưởng đến cấu trúc, văn hóa và chức
năng của tổ chức thông qua việc áp dụng mô hình 7S để đánh giá một cách nghiêm túc những ảnh hưởng của toàn
cầu hóa đối với Yakult. (P3)

 Strategy

One of the markets where major brands compete is the global yogurt market. Therefore, in order
to survive over the long term, big businesses like Yakult must develop rational strategies. For
example, the Yakult Company needs to strike a balance between short-term cost savings and
protecting its core competitive advantage. Yakult has used a variety of multi-platform advertising
strategies for its marketing, including television, fan pages on social media sites like Facebook,
Google, and Youtube, and almost all of its products. present in all national hypermarkets and small
supermarkets. Yakult wanted to reach customers on the Zalo platform because they determined
it is a very potential market today and that the majority of customers in Vietnam have been using
Zalo (Yakult, 2022). However, after its multi-platform advertising campaigns, Yakult saw that Zalo
was the channel they wanted to develop next in the Vietnamese market.

nguồn : https://www.yakult.co.jp/english/ir/management/pdf/ar2022.pdf

Yakult Honsha Co Ltd needs to build a balance between short run cost savings and protecting its
core competitive advantage. Customers perceive Yakult Honsha Co Ltd products and services to
deliver ‘value for money’ proposition plus a bit extra. In its zest to gain more market share through
competing on prices, Yakult Honsha Co Ltd should avoid cutting costs that can result in inferior
product and service delivery.

 Structure
The company's current organizational structure and supply chain management are under scrutiny
due to the pandemic and globalization of the world. Yakult should concentrate on geographically
diversifying its suppliers so that climate-related disruptions, geopolitical disruptions, and other
disruptions do not affect the long-term viability of the company in order to strengthen the
organization's resilience and get ready for similar disruptions in the future (Yakult, 2022)

The pandemic has questioned the current structure and supply chain management of the
company. To be more resilient organization and prepare itself for future disruption of similar
magnitudes Yakult Honsha Co Ltd should focus on – diversifying suppliers geographically so that
climate related, geopolitical, and other disruptions don’t impact the long term survival of the
company. Reduce the dependence on China – As the trade war between US and China is getting
aggressive, it should reduce its dependence on supply chain emerging out of China. This will help
the organization to diversify risks, avoid regulatory problems etc.To achieve the above two goals
– Yakult Honsha Co Ltd needs to fine tune its organization structure. It needs to have smaller
teams, easy reporting to the headquarters, and enabling teams to take decisions based on real
time developments (Yakult, 2022)

 Systems

Yakult has established clear processes with defined boundaries in order to guarantee that
business operations are carried out successfully and without friction or disagreement. Yakult's
systems, such as those for human resource management, finance, marketing, operations, sales,
supply chain management, public relations management, and leadership strategy, are primarily
departmental in nature. The tasks and procedures that Yakult Group employees use on a daily
basis must be dealt with by these individuals. Yakult incorporates robotics, information technology,
and web-based technology into many of its systems to manage a range of business operations.
A new Yakult i series assembly line in Binh Duong Vietnam in the east center can be mentioned
to justify this point of view (Yakult, 2022).

Yakult Honsha Co Ltd needs to focus on the following areas – Improve internal processes, such
as risk management, Customer Relationship Management (CRM), web app optimization, and data
visualization across the organization. Yakult Honsha Co Ltd needs to put in place robust system
for “work from home” employees so that there can be greater interaction among the employees
both online and in physical environment. It will not only improve productivity but also increase the
data security and cyber security.

 Staff

Without a doubt, Yakult can improve its human resources. The Japanese automaker can hire and
onboard a large number of remote workers due to the impact of the epidemic. Yakult should
develop a remote referral system that includes brief video catalogs, small group interactions, and
technical demonstrations to foster an inclusive environment for new employees. Employees can
communicate with those at various levels of the hierarchy through open chat. It not only helps
senior leaders interact directly with employees, but also helps build a friendly working environment
(Yakult, 2022).

Some of the steps Yakult Honsha Co Ltd can take in to improve the human resources are
recruitment and remote onboarding . Because of the pandemic, a lot of employees are working
from remote locations. To make the environment more inclusive for the new employees, Yakult
Honsha Co Ltd should build system for remote onboarding such as catalog of short videos, small
groups interaction, technical demonstrations. Open chats for the people to approach people at
various levels in the hierarchy. It will not only help the top management to directly interact with the
people below but also help in building an open and transparent culture.

 Skills

Yakult is concentrating on two things, namely developing a training program and locating fresh
talent. As more and more workers quit their existing positions because they are not demanding
enough, creating an effective training program will increase employee motivation and their sense
of competence, which will enhance their performance. Work skills and employee skills. At Infiniti,
there are a lot of talented individuals and professional staff. Knowledge and talents are in plentiful
supply. In recent years, Yakult has established itself as one of the top global talent pools for highly
skilled IT professionals. One of the most well-known and recognizable dairy products from Japan
in the entire world has unquestionably been produced by the company's hardware and software
developers.

Yakult Honsha Co Ltd can build a structured training and development program for people working
from remote locations. Yakult Honsha Co Ltd can hire fresh talent as more and more people are
leaving their existing jobs because they are not challenging them enough.

 Style / Leadership Style & Culture

Yakult is a significant participant in the dairy sector, which is why they went with a strict leadership
approach. Because they don't want to take chances or because they think they can handle
emergencies owing to this manner. This can be seen in the fact that Yakult has chosen to control
all of its diverse and international businesses through a pure parent company structure, with a
focus on its multi-brand dairy products that are unique to various markets. Yakult is in charge of
creating and implementing the group's overall strategies, managing each company, and promoting
cross-functional synergies. Each of Yakult's businesses operates quickly and independently while
maintaining close ties to its local customers and other stakeholders.

The leadership styles required in the physical location and in remote scenario are completely
different. In a physical environment manager can stop by a chat, provide inputs and go through
the work. But in the remote locations employees have to work in far more isolated environment.
To improve the workflow – leaders should pursue collaborative and inclusive form of leadership.
Leaders should build smaller teams as part of larger teams.

 Shared Values
The organization has built a successful business model based on its core values, vision and
mission. Shared values are accepted norms and practices that direct and guide the actions of
management and every employee within the organization It doesn’t have to change much in the
shared values segment. One area where it can focus more is – sustainability. Investors are putting
a lot of stress on Environmental, Societal, and Governance issues, so it can bring more
transparency by using the Triple Bottom Line concept in its ESG and financial reporting.

The biggest yogurt manufacturer in Japan is dedicated to continuously offering customers and
society new value propositions based on cutting-edge ideas and a desire to succeed. ecstatic
about their owners and the brands they stand for. It is clear that they have a strong passion in
providing good services to their customers as they believe that these services will bring great
profits to the business. In terms of integrity, they are always grateful to their stakeholders for
always helping them move forward and promise to remain honest and humble in all business
activities to better serve their stakeholders.

Commendation

Among the elements in the 7s framework, the Shared Values element is considered a soft
element. Soft factors are the most difficult to change in the organization and it is relevant to the
people in the organization. For example, if the organization decides to enter a new industry - it
needs to align the staff, skills and style of the current structure with what might work in the new
industry. The importance of the soft factor can be understood by the failure rate of mergers and
acquisitions. More than 80% of mergers and acquisitions fail. The most prominent reason for the
failures was - failure to integrate the culture and shared values of the two organizations. So this is
considered the 'S' factor of Yalkul company that is most affected.

2.The Influences of ethical and sustainable globalization

· Cần phân tích chi tiết những ảnh hưởng của toàn cầu hóa về đạo đức và bền vững đối với các chức năng của tổ
chức. (P4)
2.1 Business ethics

Business ethics is a set of principles and standards that help regulate, evaluate, guide and control
the behavior of business entities. Business ethics contributes to regulating the behavior of all
members, from the board of directors, members of the board of directors to employees. Even
business ethics is constantly affecting all social institutions, organizations and objects related to
business activities such as: Government, customers, owners, partners and whole community
(Alexandra, 2022).

2.2 Sustainable globalization

Sustainable globalization is a global system of trade in goods and services, including financial
transactions and services as well as the free movement of people, cultural exchange, and the flow
of information and knowledge worldwide, including the Internet. This even refers to the creation of
an international culture that satisfies the requirements of the global community for the operation
of that global system without risking or affecting the needs of the present and future
(Prnews,2008).

2.3 Ethics in the global market of Yakult

The first is the problem of animal experiments. There have been some allegations in the past that
the company fed mice probiotics and then exposed them to radiation and infection. Some were
fed apple pulp extract and then forced to run on treadmills until exhausted. PETA (People for the
Ethical Treatment of Animals) - The organization "Fighting for the Ethical Treatment of Animals"
has pointed out that the results of such tests have no bearing on human health. Furthermore,
these experiments are not required by law and involve common human food ingredients without
toxicity concerns.Yakult agrees. In a letter to PETA, its president stated that the company,
including its subsidiary in South Korea, would no longer be conducting any experiments on
animals. Tokyo-based Yakult Honsha, which makes probiotic products sold in the US and around
the world, has terminated all animal experiments. Yakult has applied modern research methods,
suitable for people (PETA,2018).
Next is waste treatment. Every day, the Fuji Susono factory produces 1 million products.
Separating waste is not easy. Every day, waste is divided into 50 types for treatment, and most of
it is recycled for use. All waste such as plastic, paper, etc. is classified specifically. This number
is processed and recycled into a variety of items, like school kits. Plastics after recycling are
assessed as completely harmless. At Yakult's Fuji Susono plant on the outskirts of Tokyo, it now
combines two wastewater treatment systems. First of all, this is an activated sludge treatment
system. The collected wastewater will lead into the sludge water mixture containing many types
of microorganisms. When exposed to air, these bacteria will be activated and decompose dirty
water. Sharing about environmental protection, Mr. Takeshi Okamoto, director of Yakult's Fuji
Susono factory in Japan, said: "We are aware that production activities at the factory have an
impact on the environment. Therefore, we always try to shorten the production time, to limit the
use of energy, to affect the environment. Yakult has researched to come up with an
environmentally friendly way to dispose of waste, without using toxic substances, without
chemicals… and maintaining the sustainability of the plant (Yakult, 2022).

3. Decision making in a global context:

3.1 The main factors when business going international
 Political Climate And Legalities
The political environment in the area, the presence of a legal framework, and the supporting
infrastructure that enables new entrants to conduct business openly and without concern for any
arbitrary or abrupt legal restrictions imposed by local authorities are crucial factors for leaders. It
is also crucial that the market as a whole aligns with the company's mission and objectives
(Forbes, 2022).

Vietnam is one of the countries with the most stable domestic politic al and business environment
in the world with many incentives and benefits for international investors. Politics in Vietnam is led
and ruled by one party, so there are very few protests, and almost never political conflicts. The
socialist state of Vietnam, representing the people and working for the interests of the people, is
the highest organ of government. The only party that represents the interests of the whole nation
is the Socialist Party. The maintenance of the one-party system is also an important factor in
Vietnam's political stability. Vietnam has good diplomatic relations and always actively cooperates
with many countries in the bloc. Especially since joining the ASEAN Free Trade Area (AFTA) with
the advantage of reducing import tax for member countries and committing to join the CEPT tax
reduction roadmap. Therefore, Vietnam is one of the countries that are noticed by multinational
corporations as a safe choice for investment.

 Market Attractiveness:

The attractiveness of a market can be assessed by evaluating the market potential in terms of
revenues that can be generated, access to the market in terms of the host country being warm to
investments by multinational companies, and potential competition and dynamics of the industry
in the prospective market. A big market with a rapid rate of growth can be very attractive and a big
upfront investment can be justified in such a market. Lack of entrenched competitors and stability
in the type and number of competitors add to the attractiveness of the market (Forbes, 2022).

As one of the countries with the fastest growing economies in the world after the pandemic,
Vietnam promises to be a potential market for multinational companies. Especially the yogurt
industry, which has been favored and used by Vietnamese for many years.

 Social and Cultural Factors

Countries are different from one other in terms of language spoken, religion practiced, food eaten
and in many other ways. These differences are very real and significant, and marketers should
consider how these differences can hinder or facilitate the marketing efforts of the company in the
new market.Products which are related to the way people live may have to be altered significantly
or will not find acceptance at all, whereas industrial products may find acceptance in countries
even with widely different practices of life.Even marketing and other business practices may have
to be tailored to suit the social and cultural nuances of the country. A company would do well to
pack a troop of sociologists and anthropologists into the target market before it sends its product
developers and marketers. Some marketers initially sell their products to markets that are
culturally similar, while some may look for similarities among consumers across various countries
where they operate. But in most cases, differences in socio-cultural settings have forced marketers
to adapt their marketing mix (Forbes, 2022).
Due to its inclusion in the category of necessities, it was still in demand during the whole
economy's firms' difficult economic times throughout the COVID 19 epidemic. The dairy business
is anticipated to expand over the future years as a result of rising population, income, and spending
rates as well as a rise in Vietnamese consumers' interest in health care items. keep up the growing
momentum. Investors from both home and abroad are focusing on the dairy sector in Vietnam
because of its tremendous growth potential.

3.2 Analyze the strategy diamond of Yakult

The model is designed to understand the competitive advantage given to a number of pre-existing
factors that countries or groups possess, and to explain how governments can act as a catalyst to
improve their position. of a country in a globally competitive economic environment. Professor
Michael Porter's diamond model analyzes the determinants of competitive advantage and
assesses whether a country or territory has a healthy micro-business environment. The model
gives the factors that interact with each other and determine the competitive advantage of a
country/region: Arenas, Vehicles, Differentiators, Staging and Pacing, and Economic Logic
(EPM,2021).
 Figure 2. Strategy diamond (expertprogrammanagement, 2018).

 Areas

With a total area of up to 24,000m2, the Yakult Vietnam facility is situated exactly in the Binh
Duong province's industrial park. Here, Yakult drinking milk uses the most cutting-edge technology
available in Japan, and the producer also assures meticulous input material selection. The
majority of supermarkets, gas stations, and retail businesses in provinces, including BigC, Mega
Market, Vinmart, and Circle K, distribute Yakult. The circumstances for clients are advantageous
due to this extensive and robust coverage. users can easily buy Yakult drinking milk products
(Yakult,2022).

 Differentiation

Yakult is a fermented milk drink, made from skimmed milk powder, water, sugar and a strain of
Lactobacillus casei Shirota. There are roughly 6.5 billion L. Casei Shirota bacteria in every bottle
of Yakult. Unlike normal bacteria strains, L. Casei Shirota bacteria has the ability to survive in
digestive juices (gastric and biliary and intestinal juices), and has the effect of supporting the
restoration of biological balance intestinal tract for the user. In the Vietnamese market, this
company makes a difference compared to competitors such as Vinamilk, Ba Vi.... by launching
only one basic flavor, with a capacity of 65ml and packaged according to pack 5 or pac k 10. This
is a reasonable way to pack because Yakult's shelf life is relatively short. Additionally, because
this milk product includes acid, the producer advises consumers not to consume excessive
amounts of it because doing so will impair the function of other digestive enzymes (Zafago,2021).

 Vehicles
By working together with its distributors, Yakult is able to maintain a favorable location where
clients may discover them readily. The business actively deploys POSMs in supermarkets and
points of sale to enhance customers' shopping experiences. Besides, Yakult also regularly opens
product trial booths with the aim of helping customers make quick buying decisions. It is a smart
approach to sustain the brand and link the brand with customers, helping people remember your
brand, or in other words increasing brand awareness, to build multi-channel advertising strategies
that encompass social platforms to market their products (Dvn, 2022).
As soon as Yakult realized this, it created a set of stickers in conjunction with Zalo to enhance
coverage, which is a pretty successful approach given that there are presently more than 60 million
Zalo users in Vietnam. The results from this campaign exceeded expectations when there were
more than 500,000 organic downloads.

 Staging and Pacing

Yakult Vietnam was established on June 26, 2006, with a total investment capital of over VND 400
billion thanks to the capital contribution of Japan's Yakult Honsha company (80%) and France's
Danone group (20%). In August 2007, Yakult Vietnam officially opened for business. The majority
of supermarkets and retail establishments in Vietnam currently carry Yakult products. Additionally,
Yakult is delivered straight to consumers' homes in Ho Chi Minh City, Hanoi, Hai Phong, Dong
Nai, Binh Duong, Da Nang, Nha Trang, and Vinh by Yakult Lady, a delivery service for Yakult.
With Vietnam's economy just recovering from the pandemic, Yakult will bring to market products
with more competitive prices, the price leadership strategy will start from the end of 2022, when
the yogurt market start on the growth momentum, then customers will not hesitate to spend money
on the branded yogurt products (Yakult,2022).

 Economic Logic
Currently, increasing the pricing component by 1% will result in a 6% increase in income. That
has more impact than a 1% reduction in variable budgets (which increase revenue by 3.8%) or a
1% decrease in fixed and tight budgets (which increase by 1.1% in revenue). Currently, the price
of Yakult ranges from 23,500 VND for a batch of 5 bottles, this is a compatible price when it is
completely accessible to everyone, as well as the right potential to supply probiotics for the whole
world. multinational group of patients of Dr. Minoru Shirota (Zafago,2021).
In addition, Yakult also employs bundle pricing to increase the value of its products relative to
buyers who are prepared to pay for more than one product. This strategy can also help businesses
attract caring buyers and buy more products faster.
4. Key barriers to internationalization
4.1 Main barriers of Vienam market (PEST)

 Political

Vietnam is one of the most politically stable countries in the region. Because Vietnam is a one-
party system in the country and extremely high-quality security factors to ensure the strength of
the great unity of the whole nation, with the Party and State. Vietnam is a state in the developing
stage, so the government creates favorable conditions for all domestic and foreign enterprises
who want to invest in Vietnam (Tapchinganhang, 2021). Political factor is one of the factors that
strongly affect Yakult's business when entering the Vietnamese market. However, foreign
investment leads to the lack of focus on mobilizing maximum domestic capital, causing an
imbalance in the investment structure, which can cause the economy's dependence on foreign
investment capital. Therefore, if the proportion of FDI is too large in the total development
investment capital, the independence and autonomy may be affected, the developed economy is
externally dependent and unstable. Sometimes the company 100% foreign capital implements
competition policy by way of dumping, excluding other competitors, monopolizing or controlling
the market, overwhelming domestic enterprises. Therefore, the Government had to change the
policies of the Law on Environmental Protection, the Law on Business, etc. Review and amend
inappropriate points to ensure the uniformity and consistency of the legal system (Son,2020).
Therefore, foreign enterprises may face obstacles in the business process, including Yakult.

 Economic

The Covid-19 pandemic is having a very negative impact on the FDI sector, including attracting
this capital. In particular, the 4th wave of Covid-19 epidemic has directly affected major industrial
centers of the country, such as: Ho Chi Minh City. Ho Chi Minh City, Bac Giang, Bac Ninh, Dong
Nai, Binh Duong ... are places where many FDI enterprises are concentrated, causing businesses
to be severely affected, disrupting production supply chains, and many enterprises having their
production turned upside down. , business, some businesses have to stop a part, even some
businesses have to stop the whole operation. Lucky Vietnam's stock market overcame the " year
of Covid-19" spectacularly, with a strong recovery, along with a strong participation of the investor
class. According to the data published by the General Statistics Office, in 2020, despite a sharp
decline in growth and most economic indicators, Vietnam is among the rare countries that still
maintain a positive GDP growth rate of 2. 91% (up 3.68% in the first quarter; 0.39% in the second
quarter; 2.69% in the third quarter; 4.48% in the fourth quarter). Notably, in March 2022,
commercial and service activities were quite active; The number of international visitors to Vietnam
increased sharply due to the opening of tourism in our country and many international flight routes
being restored after the Covid 19 pandemic. In March 2022, it was estimated to reach VND 438
trillion, up 2.9% compared to the previous year. last month and increased by 9.4% over the same
period last year. In the first quarter of 2022, the total retail sales of consumer goods and services
is estimated at 1,318 trillion VND (Chinhphu, 2022). Thus, this is the favorable factor of Yakult in
Vietnam.

 Social

According to data published by the General Department of Population and Family Planning, as of
December 31, 2020, Vietnam's population was estimated at 97,757,118 people, an increase of
about 876,000 people compared to 96,903,947 people the previous year. Moreover, Vietnam's
population is in the "golden period", the labor force is denser and cheaper than other countries.
on the other hand, because of the large population, consumption is also higher. Combining these
factors, these are the advantages that Yakult enjoys when joining the Vietnamese economy
(Tapchinganhang, 2021). However, the Ministry of Labor - Invalids and Social Affairs said that the
quality and structure of Vietnam's human resources currently do not meet the requirements of the
labor market, and the qualifications and skills of workers are still limited. compared to other
countries in the world. In international comparison, ranking of skills pillar and vocational training
quality index of Vietnam is in the bottom group of ASEAN. The proportion of workers with degrees
and certificates in Vietnam is only 26.1%, The labor structure is mostly with limited skills and low
income. In general, the skill level of the Vietnamese workforce is still limited, especially lack of soft
skills. Vietnam's population is "golden", but the quality of labor is not "golden" (Nga, 2022).

 Technological

Under the impact of the scientific and technological revolution, machinery and technology quickly
became obsolete. Therefore, FDI often transfers outdated machinery to Vien Nam, which is the
investment recipient country to innovate technology, innovate products, and improve the quality
of their own products. Most countries use technology, employ workers. However, after a period of
development, the cost of labor will increase, resulting in high product costs. Causing damage to
investment recipient countries such as causing damage to the ecological environment. Product
quality, production costs are high and therefore products of investment recipient countries can
hardly compete in the world market. . Therefore, this is the difficulty of FDI in terms of technology
in Vietnam market (Hang, 2019). After nearly 35 years of innovation, Vietnam's technology
element has had a positive change with many achievements in research and investigation,
contributing to creating a scientific basis for the formulation of strategies and plans for economic
development. socio-economic. Industry is closely linked with production and life, contributing to
improving productivity, quality and efficiency of all sectors and fields. Science and technology has
clearly demonstrated its role as an important resource in the economic development of the land.
country. In the period of 2015 - 2020, labor productivity is improved, reflected in the TFP composite
factor productivity index (increasing from 33.6% in the period 2011 - 2015 to 44.46% in the period
2016 - 2019), the proportion of export value of high-tech products in the total value of exported
goods will reach 50% by 2020 (Gov, 2021). For Yakult, the business owns many advanced
technology factories. The factory is equipped with some of the latest food processing equipment.
Strict standards apply to the production of Yakult, guaranteeing a beverage production yield of
almost 99%, which means that 99% of the raw materials are ultimately bottled (Yakult, 2022).

4.2 International business strategy

 Strategy 1:
Yakult will contribute capital or enter into joint ventures with partners, companies and corporations
in Vietnam in the same field as Vinamilk, TH True Milk. The joint venture with Vietnamese
companies will help businesses, because it helps to cut many steps when accessing the
Vietnamese market. Specifically, when a joint venture with a business that has the trust of locals,
the level of popularity will be greater, so that marketing expenditures do not need to be too much.
Moreover, joint ventures with Vietnamese companies will help the company avoid too many risks
and save costs when investing in the Vietnamese market. Besides, it will help the company
minimize financial risks as well as political and legal uncertainties.

 Strategy 2

Bundle pricing is a hugely popular strategy in the retail industry. Customers will often find bundles
of products on sale for less than when buying them individually, or discounted items. In addition,
Yakult should also adopt a product-package pricing strategy to increase the value of its products
to customers who are willing to pay for more than one product. This strategy can also help
businesses attract interested customers and buy more products faster. It is advisable to launch
product combos such as 2 batches of 5, or 4 batches of 5 at a cheaper price than buying 1 batch
individually, thereby easily making consumers spend more for a single purchase.

 Comparison

As suggested above two strategies, it can be seen that strategy 2 is quite popular. Almost all retail
products on the market use the form of batch selling, so when applying strategy 2, it is quite dim
and does not make a good impression on consumers. For strategy 1, it is quite safe strategy and
brings higher efficiency. When a joint venture with a company in the same yogurt industry in
Vietnam, customers will choose joint venture products more. Because it is a combination product
between two large enterprises, it will love curiosity but still ensure food safety.

Khuyến nghị khó hiểu. So sánh giữa 2 khuyến nghị nên được phân tích chi tiết.

III, CONCLUSION
In conclusion, this paper thoroughly examines corporate ethics and the impact of globalization on
a multinational corporation's organizational structure. In addition, it takes into account the
difficulties that firms face as a result of globalization when determining whether to ent er a certain
market. Give suggestions and ways to get over obstacles that companies confront in order to
assist them succeed in the Vietnamese market.

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