Introduction to Management
1.0 IntroductionThis assignment is based on my research and findings relating to a company of my choice to provide an external environmental analysis. I have chosen VietnamWorks.com, a company from Vietnam.VietnamWorks.com operates as an online job search engine that offers jobs in Vietnam. It helps to facilitate the matching and communication of jobs opportunities between jobseekers and employers. The website has access to jobs, companies, individuals and resources for career advancement for jobseekers. Corporates post jobs and have a searchable database which contains various resumes. Its services include job posting, placement, viewing of resume and advertising space (Startup, 2014).The company was founded in 2002 and currently 300 employees are based in both Ho Chi Minh City and Hanoi, Vietnam. VietnamWorks.com operates as a subsidiary of Navigos Group, Ltd (VietnamW, 2002).2. PESTEL2.1 PoliticalVietnam is a country run by a single party, the Communist Party of Vietnam. Focusing on being persistent and a slow steady pace of change, it has a stable political government overall (Risk, 2015). Corruption is common in Vietnam. Anyone who has started or wants to start-up a business there would have encountered or heard about the corruption practices. These corruptions can be in form of cash, expensive gifts or luxurious entertainment. Don’t be surprised if it involves all three together. This is how they consider developing business relations or networking, at times, it involves government officials too (Advisor, I. M, 2015). In Vietnam, Corporate Tax Rate was at 28% from 1997 till 2015. Currently, the Corporate Tax Rate stands at 22% (TRADING, 2016).
2.2 EconomicsVietnam is experiencing increasing growth over the last ten years and has proved that it has one of the stable economic growths in South East Asia. They have maintainable resource management, increasing areas in urbanization, changing cultures in marriages, food systems, and managing integration with global networking.Vietnam’s growing popularity as an international manufacturing centre is one of the many reasons Credit Suisse expects the country’s GDP to increase next year, one of the fastest rate of growth in emerging market economies after China and India. Although the growth rate is lower compared to the previous year rate of 6.7 %, Credit Suisse analysts note that domestic consumption is helping sustain economic expansion – bank’s analysts call the growth pattern “slower, but safer.” (Kindergan, 2016).2.3 SocialUnited Nations estimates the recent population of Vietnam to be at 94,699,673 . The median age calculated is 30.8 years. It is the 14th most populous country (Worldometers, 2016).The Nation has issues in the education system, increase in inequality, social welfare and in aging populations. There are also issues of increase in unemployment for the youth. There are efforts targeted at reducing poverty, promoting employment and ways to generate income. To improve employability for Vietnamese youth, education system and the labour market need to coordinate proportionally to minimise skill mismatches (Giang & Duong, 2008).