Business and Business Environment in Vietnam Airline
Added on 2021-01-07
11 Pages3887 Words4834 Views
Banking Academy Vietnam International School of BusinessBusiness and Business EnvironmentName: Nguyen Ngoc Yen LinhClass: F13BStudent ID: F14-4181
Table content1.Introduction ....................................................................... 62.PESTLE............................................................................ 63.SWOT............................................................................... 104.Interrelationship .................................................................. 135.Reference........................................................................... 14Vietnam Airline 1. IntroductionVietnam Airlines is the flag carrier in the aviation industry of Vietnam, operating 94 routes to domestic and international with more than 400 flights per day. Vietnam Airlines is leading airline in the area with the modern, develop and innovation flight team. Vietnam Airlines becamemember of SkyTeam in 2010, a strategic alliance whose 19 participants have more than 14500 regular flights linked to the global network.History1993: Establish Vietnam national airlinesMay 27,1995: Establish Vietnam Airline and 20 related enterprises. 2002: Introduce new logo – Golden Lotus attached the outstanding improvement in service quality, expanding flight network and upgrading fleet2006: Become a part of International Air Transport AssociationJune 10,2010: Become the first member in South East Asia religion join in SkyTeam Alliance. 2015: The world's first airlines to fly the Boeing 787 and the Airbus A350 concurrently.July 12, 2016: Vietnam Airlines first received a 4-Star certificate from Skytrax.December, 2017: After 20 years of establishment and touching 1.5 million Golden Lotus members, it invites 200 million travelers.2018:Skytrax was accredited as a 4-star international carrier for the 3rd time in a row (2016,2017,2018).Vietnam Airlines was founded by the Government with 100% capital support. They depend on Government policies and decision.2. PESTLEPolitical2
Stability of politicalThe stability of the political system is one of the most significant variables that has a big influence on the development of the country's economy as well as on a company's corporate strategy. This aspect is always taken into account when a company chooses to invest in business expansion, especially in the construction of flight networks for air transport companies. Example, because of the pollical tension increase, many airlines include Vietnam Airlines avoid flying over Iran in 2020 (Vietnam Airlines, 2020). Vietnam Airlines stop flying over with high risk in this religion after Iran’s military hit a UIA plane by a missile, kill all 176 people on broad include: passengers and flight team. Government spendingOne of the firms under the government's management is Vietnam Airlines. The profit of VietnamAirlines due to the funding of government money, market security or special business support policies when tough times occur, such as war, epidemics and fuel prices. Vietnam Airlines has 100% state capital by Government. Right now, airlines industry is in trouble with COVID-19, Government have policies to helping Vietnam Airlines get out of trouble. Government accepted Vietnam Airlines can sales the dividends of the airlines to survive in this time. Other, Government choose Vietnam Airlines is the airway where helping citizen flight back to Vietnam from other country. Vietnam Airlines borrowed from 4000 billion VND with 4% interest per year from Government to avoid bankrupt (tuoitre, 2020). EconomicEconomic is one of the most important to run a business. Vietnam Airlines business activities arebased on the change of economic such as GDP growth rate, inflection rate, scarcity of resources, the implement of government when join AFTA (ASIAN Free Trade Area), commitment when join WTO,... It effects to the revenue, expenses, profit, losses of Vietnam Airlines.GDP3
The percentage of GDP Vietnam increase from 2009-2019 (source: laodong.vn)In 30 years after war, Vietnam from one of the poorest countries in the world become a developing country with medium income. In this century, GDP of Vietnam increase more than 5% from 2009 to 2019, especially, in 2018 and 2019, in 2 consecutive years, GDP of Vietnam grew over more 7%. Vietnam become one of the fastest of increasing GDP in South East Asia area. Vietnam GDP in 2019 reached 2700 USD with the property rate fell sharply from 70% to 6%. The airlines industry is the most important with the change of GDP. If GDP increase 1%, therate of revenue of airlines industry will increase1.5-2%. In reality, the rate of revenue of airlines in Vietnam increase 14-15% in 2019 and GDP of Vietnam is 7.02%. From January to November of 2019, international passenger visited Vietnam are more than 16.3 million passengers, increase 15.4 % in 2018 (Tong Cuc Thong Ke, 2019). Vietnam Airlines is 35% of total flight in domestic in 2019 (Tong Cuc Thong Ke, 2019).However, despite being hit by the Asian financial and monetary crisis in 1997, the SARS outbreak in 2002, the avian flu between 2004 to 2006, the Vietnamese economy in recent years, the oil industry crisis has caused make the fuel prices jump up from 2004 until now, COVID-19, but Vietnam Airlines still continue expanding and has a significant growth rate related to the domestic transport industry. Obviously, the grew rate in domestic as well as the percentage of foreign investment jump up the quantity of goods exchanged and sold in the market as the social economy grows, which means the demand for transport will rise.SocialSpecial meals during on the boarding timeVietnam Airlines have different set of eating with special guest on the boarding such as: vegetarian meals, children meals, religious meals medical meals and other specials meals. This policy is respect religion of each passengers (Vietnam airlines, 2020). Passenger can note the specials meals when they buy the ticket and Vietnam Airlines will prepare the right meals with passenger choice. This policy makes passenger feel happy from Vietnam Airlines service.Ticket prices change by passenger’s ageVietnam Airlines has promotion for children from 0-12 years old, kids under 2 years old pay 10% flight ticket fee of adult ticket fee and for kid from 2 years old to 12 years old needs pay 90% adult ticket fee in domestic, 75% adult ticket fee in international. With kids are under than 2years old, Vietnam Airlines have free meals needs booked before 24 hours in advance at the startthe flight, in-flight stroller and stroller service. For kids from 2 to 12 years old, the ticket include free meals needs booked before 24 hours at the start of the flight. Also, people who older than 60years old will have promotion to 65% of the ticket price (Vietnam Airline, 2020)TechnologyThe speed of introduction of new technology and emerging technologies is a characteristic of theaviation industry, since this is a special type of business involving a high degree of organizational safety where loss occurs and causes injury. The consequences are catastrophic and4
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