INTERNAL AND EXTERNAL ANALYSIS OF ORGANISATION FOR FINDING STRENGTHS AND WEAKNESSES

Table of Contents
1. INTRODUCTION....................................................................................................................2
2. RESEARCH FINDINGS..........................................................................................................3
2.1 VINATEX..................................................................................................................................3
2.2 POSITIVE & NEGATIVE IMPACTS THE MACRO ENVIRONMENT HAS UPON
BUSINESS OPERATIONS....................................................................................................................3
2.2.1 Political.........................................................................................................................................................4
2.2.2 Economics....................................................................................................................................................5
2.2.3 Social............................................................................................................................................................6
2.2.4 Technological...............................................................................................................................................7
2.2.5 Environmental..............................................................................................................................................7
2.2.6 Legal.............................................................................................................................................................8
2.3 CONDUCT INTERNAL AND EXTERNAL ANALYSIS OF ORGANISATION IN ODER
TO FIND STRENGTHS AND WEAKNESSES.....................................................................................9
2.4 SWOT ANALYSIS.........................................................................................................................10
4.1. Strengths......................................................................................................................................................10
4.2. Weaknesses.................................................................................................................................................11
4.3. Opportunities...............................................................................................................................................11
4.4. Threats.........................................................................................................................................................12
2.4 RELEVACE OF STRENGTHS AND WEAKNESSES TO MACRO FACTORS...................12
2.5 PRESENT A CRITICAL REFLECTION OF KEY FINDING AND EVALUATE HOW
THEY INFLUENCE THE DECISION- MAKING PROCESS.............................................................13
2.6 RECOMMENDATION............................................................................................................15
3. CONCLUSION......................................................................................................................16
Bibliography..................................................................................................................................17

1. INTRODUCTION
Vietnam's garment industry has a long history of development and has influenced the socio-
economic development of the country. The textile and garment industry accounts for 16% of the
country's export share. So this is one of the main export sectors. With the right strategies, the
Textile and Garment Industry is always in the top of the world leading textile exporting
countries. Recently, the textile and garment industry with high growth potential has attracted
many Indian companies to invest in[ CITATION Joh19 \l 1066 ].
But at the same time, the garment industry is revealing many weaknesses, of which the biggest
weakness is the very low penetration of the global apparel value chain in the knowledge and
technology intensive stages. However, it is also facing many challenges such as competition with
other countries in the markets[CITATION Ngu18 \l 1066 ].
Therefore, the Vietnam Textile and Garment industry is only in the early stage of its
development, a fertile land that has not been fully explored. With such a favorable transition
trend above, it will create favorable conditions for the development of Vietnam Textile and
Garment industry in general to achieve positive results in the coming time[ CITATION voe19 \l
1066 ].
As the business analysis assistant of Vinatex Da Nang JSC, I will investigateand show the
external environmental factors affecting VINATEX. In addition, the statement also reveals the
strengths and weaknesses of the organization and how they relate to external macro factors.
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2. RESEARCH FINDINGS
2.1VINATEX
VINATEX Joint Stock Company is a famous company with the slogan "Towards perfection".
Vinatex Da Nang is a joint stock company with main office in Central Vietnam. With more than
20 years of establishment and development, VINATEX Da Nang has given itself a stable
development and own accomplishment on the domestic and export garment market[ CITATION
VIN18 \l 1066 ].
Products that the company specializes in trading are jackets, shirts, sportswear, workwear. The
company always innovates in product design, working style and working mindset to meet
customer needs[ CITATION VIN07 \l 1066 ].
Address: No. 25 Tran Qui Cap Street, Thach Thang Ward, Hai Chau District, Da Nang City.
Phone: (+84) .236.3823725
Website: www.vinatexdn.com.vn
2.2POSITIVE & NEGATIVE IMPACTS THE MACRO ENVIRONMENT HAS
UPON BUSINESS OPERATIONS
The constituents of the macro environment of businesses in general and Vinatex Da Nang in
particular are impossible administer[ CITATION BRA20 \l 1066 ]. Factors in the macro
environment bring new opportunities as well as challenges for businesses. Therefore,
organizations often encounter problems and risks from external factors. Since the macro
environment cannot be changed, organizations have to find ways to modify it to continute and
grow. Macro environment includes six elements: politics, environment, economy, law,
technology, society.
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2.2.1 Political
Political factors greatly affect the business strategy of the business. They can inhibit or promote
economic development. But without political stability, the long-term, sustainable development of
the business will be seriously affected[ CITATION Seo20 \l 1066 ].
For example, during the 19 covid pandemic period, most countries in the world have border
closure policies, it is very difficult to export to other countries[ CITATION Ngu20 \l 1066 ]. The
Government of Vietnam has always helped and promoted the organization with business support
policies such as tax reduction from 12% to 0% on average for Vietnamese garment. In addition,
it also helps businesses recover losses including Vinatex.
Positive
Keep close trade connection with other countries around the world
Business relationships are always open
Mechanism of protection for domestic production
Having timely policies and strategies to help businesses
Negative
High taxes on products imported into Vietnam
There are no policies to invest in the production of essential products
such as premium yarn.
In October 2020, an online trade conference to promote trade and cooperation between Vietnam
and Germany will take place. That promises to have more foreign investors coming to
Vietnam[ CITATION BoC20 \l 1066 ].
Mechanism to protect domestic production through measures such as tariffs, quotas, and
subsidies for domestic goods to help domestic organizations avoid or reduce competition and
external disadvantages. Besides, the government also imposes high taxes on foreign
products[ CITATION Trầ18 \l 1066 ].
Despite being the main export industry, Vietnamese garment and textile can only do sewing and
depend on 90-95% on foreign raw materials. Vietnam's textile and garment industry is short of
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supply of high-grade yarn and finished textile. So the government should have a policy to solve
that problem, it will help partially reform businesses in Vietnam[ CITATION Gat20 \l 1066 ].
2.2.2 Economics
Elements of the economic environment include monetary policy, fiscal policy, economic cycle,
growth rate, inflation, interest rate and exchange rate. These parts all affect more or less on
business operations and decision-making[ CITATION Tuấ20 \l 1066 ].
Positive
The tendency of economic globalization
Negative
Unemployment rate increased sharply
Inflation increased
Laborer income decreased
Today, the tendency of economic regionalization and internationalisation is very welcome.
Therefore, each organization in each country to compete with competitors in the market, they
must always update the market, improve technology, ensure product quality, increase employee
productivity, good price.[ CITATION Tuấ201 \l 1066 ].
The number of jobless people age in 9 months of 2020 is nearly 1,2 million humans, increasing
by 132,1 thousand person over the same time last year. Unemployment rate of employment age
in the first nine months of 2020 is 2.48%, 1.14 times higher than the same time last
year[ CITATION Ton20 \l 1066 ]. In addition, the high unemployment rate is accompanied by
increased inflation and a decrease in GDP. This thing to a decrease in workers' income and social
needs. On the other hand, it also creates some opportunities to grow the organization if the
organization has the right vision and strategy
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2.2.3 Social
Between organizations and the social environment, there are close link, interacting with each
other. Society says to provide the organization with sources of input. And vice versa, the
products and services offered by businesses will satisfy consumers and society. Factors
belonging to the social environment affect activities.
Positive
Golden population
The hard work and intelligence of human
Negative
Brain drain
High dishonest dealings rate
Start entering the "population aging" period
Vietnam's population size reaches 96.2 million people, with a golden population structure of
about 56 million people participating in the labor market. But Vietnam has entered the
"demographic dividend" structure period for 8 years and at the same time entered the "population
aging" period at an unprecedented rate in history. In addition, the shortage of skilled labor,
redundant labor, and the imbalance of sex ratio at birth is complicated[ CITATION Thư20 \l
1066 ].
Brain drain is a phenomenon that occurs very often in Vietnam. People with a high level of
knowledge and culture are migrating out of Vietnam[ CITATION Nha20 \l 1066 ]. Therefore,
the Vietnamese economy is greatly affected, and there is a shortage of talented people to
contribute to the country's economy.
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