Macro analysis

1. In order to get necessary data for identifying risks in PEST model, what should we do?

Collect supporting information:

- From database: world bank, trading economics, the global edge, global economy

- Current data, trend

- From relevant articles (need to identify relevant keywords)

- Newspapers

- Academic journals: sciencedirect, tandfonline, emerald

- Link the data to your business context

- Opportunity

- Threat

2. Regarding numeric data, how to describe them?

3. Assuming that you identify an opportunity in social component, in which case it could be viewed as a
risk? Explain

An opportunity in social component, in which case it could be viewed as a risk

For example:

Vietnam is a country in a golden demographic structure with a high working age population providing a
large and inexpensive workforce in the wood processing industry, which is a competitive advantage in
price. However, the rate of trained labor is not high, leading to uneven labor quality, causing many
difficulties when consuming products, especially exporting to difficult markets.
4. How many steps we need to follow when analyzing a factor in PEST?

5 steps:

Step 1: Understand PEST Factors Before Asking How to Do a PEST Analysis

Step 2: Gather Relevant Data

Step 3: Identify Opportunities

Step 4: Identify Threats

Step 5: Take Action Once You Know How to Do a PEST Analysis

5. Briefly poin out macro risks in your chosen project

There are some of the great risks of the online furniture industry:

The government collects tax on online business and requires commercial banks to provide information
about the transactions to the tax authorities, causing huge losses to a portion of the company's income.

Difficulty in proving the origin when the countries afforestation and the major raw material suppliers in
the region have and are having limited policies, strict management of the exploitation and export of raw
wood. Awareness of the people as well as the Government of other countries on environmental
protection is increasing, leading to many countries issuing regulations on legal timber traceability,
especially when exporting to the US and EU markets.

The disease situation lasted affecting export to foreign countries.

Increasing competition from major producing countries in the world, in terms of price, design, quality ...

Labor skills and skills are still low, the product quality is not high, and it is difficult for mass production.

People's living standards and incomes are getting higher and higher, so the requirements for quality and
aesthetics increase.

Industry analysic-Suplpier

1.Describe the process when scanning risks in Supplier component

- What do you need to produce your good or service?

+Identify necessary input

- Who could provide raw material for your business’s operation?

+ How many suppliers?

Level of dependence: Several supplier's -> levels of dependence are low. But choosing a
suitable partner wouldn't be an easy task.

- Cost of importing/purchasing products: Time, money

- Payment system: Is it safe?

2. Speaking of Supplier component, explain the concept “level of dependence”

- A supplier is a person or business that provides a product or service to another entity. The role of a
supplier in a business is to provide high-quality products from a manufacturer at a good price to a
distributor or retailer for resale. A supplier in a business is someone who acts as an intermediary
between the manufacturer and retailer, ensuring that communication is forthcoming and stock is of
sufficient quality.

- Dependence on supplier is defined as the reliance of the manufacturer on the actions of its suppliers to
achieve certain goals. It reflects the importance of this relationship and bargaining power between the
manufacturer and its suppliers.

3. Justify availabe risks which could appear when working with supplier in your context

The supplier's product is not of satisfactory quality, not as described

Time to prepare goods is longer than expected, out of stock without delivery customers must cancel the
order

The discount level of the supplier is highly dependent on the supplier. Depending on the location,
location or requirement, the supplier will charge the high or low price of the product. This profit margin
is always equal to or lower than the traditional selling level

Uncontrollable product quality, unable to manage customer care during purchase such as package
specifications, bundled products, free gifts, small notes to build relationships with customers row.

Bear the costs incurred when delivering the same order many times, customers cancel the order, the
shipping price increases dramatically due to objective factors, ...

Industry analysis-Customer

1. The very first step in customer analysis should be identifying your customer. Describe the
characteristics of this group

- Who is consuming your product?

Categorize by age, job, hobby, etc.

- How’s your market (potential market)?

Market size: Current status, trend

How long does a customer buy a new product?

- Which factors could affect your market?

Potential customers
 Customer’s situation: salary, loyalty, workload, etc. 🡪go back PEST part to modify necessary
information

2. Suppose that you explore a huge market size for your product. Is it enough?

Not enough. We must learn about the market comprehensively to avoid unnecessary risks. Detail:

3. How could your market size change? Explain

Market Size is the total number of sales or maximum customers a business can see, measured in a given
year of a business line. Market size will change over time, depending on many factors such as:
adjustments in the target audience segment, distribution channels, sales methods, customer
relationship management, ...

Explain:

4. Poin out customer related risks in your project

- Loyalty of customers is low due to the sale of low-cost furniture

- The habit of buying furniture is mainly directly at the store

- Shipping costs with COD orders canceled or refunded