Table of ContentsIntroduction...................................................2

Content........................................................4

Task 1: Explain the strategy contents and terminology – explain

the significance of stakeholder analysis......................4

I. Explain the strategy contents and terminology:...........4

II.Explain the significance of stakeholder analysis:.......10

Task 2: Produce an organizational audit and carry out an

external environment audit for the company...................14

I. Internal environment:...................................14

II.External environment:...................................18

III. SWOT analysis of PHO24.................................24

Conclusion....................................................27

Reference.....................................................28

pg. 1

Introduction

PHO has become one of the most famous traditional dishes for

a very long time. It is well-known together with the delicious

taste thanks to the variety of spices. However, it has known as

the street food for many decades. Catch that opportunity, the

board of An Nam group decided to open the brand new business

concept to satisfy the high standards but still keep the

traditional value. Spending around two years to research market,

especially customers’ taste, PHO24 has invented a unique flavor

for Pho through 24 top quality ingredients and spices.

pg. 2

PHO24 is the system which serves Vietnamese noodle,

belonging to An Nam group, the biggest F&B Corporation in the

country. Recently, PHO24 has owned about 73 outlets and plans to

open more stores in all major of Vietnam as well as oversea

markets. The founders believe that PHO24’s concept is unique but

very easy to multiple due to its space requirement, low

investment, standardize operational procedures and most

importantly the top quality of the food.

In this report, I would like to focus on the definition of

the context of PHO24’s strategy as well as figuring out the

explanation about the significance of stakeholders’ analysis.

Besides, producing an organizational audit and conduct an

external environment; applying strategic positioning techniques

to analysis the company.

pg. 3

Content

Task 1: Explain the strategy contents and terminology – explain the significance of stakeholder analysis.

I. Explain the strategy contents and terminology:

Business strategy can be clearly seen as the plans of one

company to survive and develop continually in market today. It is

evident that almost business move forward because of the serious

compete among companies; therefore, having a strategy is the

essential requirement for each company recently. The main

function of strategy is setting up the movements systematically

until company achieves their targets. However, before building

pg. 4

their own strategy, companies have to clear out their targets or

aims in the future in order to monitor the whole plan. In that

case, it is called contexts of strategy, which includes vision,

mission, value, objectives and goals, business philosophy and

core competences. PHO24 is not an exception.

1. Vision:

Initially, every organization wants to know their

destination before starting their business. A good vision helps

them describe the future and commit to gain it. The vision is

obviously different from what the company is in the present. “The

responsibility of leaders is lighting up the way to the future

and then seek the help from everyone to create that future”,

Margaret Thatcher said. Basing on that statement, the board of

PHO24 also set up a vision for their business which contains

their expected destination: “To be the number one brand of Vietnamese

quick-service restaurant in the world.”

pg. 5

This vision of PHO24 is definitely successful in painting a

great future for the company to exert all its strength to achieve

their expectations. In order to do that, the leaders of PHO24

must help their employees to know what they would have if the

vision is achieved; therefore, the employees will link their

works and actions with the vision. Unfortunately, it does not

show particularly how long they need to spend to reach to the

first position. In term of inspiration, this vision is not

persuadable enough because the vision statement should impact all

aspects of employees’ mind and emotion; but, the vision upper did

not clear and specific in a certain time.

2. Mission:

Company’s mission is the statement of purpose or reason why

the company exists. Mission will direct the focusing of company

as well as leading the company on the way to the success.

pg. 6

Specifically, each statement will lead company to different ways.

Likewise, the mission statement of PHO24 is: “deliver operational

excellent in our restaurant. Achieve enduring profitable growth through world-

class management, innovation and technology”.

This mission statement is quite clear and become the

standard of choosing suitable strategy for PHO24. It is no doubt

that a good mission statement must have clear purpose in order to

be the first brick made success in business. PHO24 commits to

deliver the operational excellent in their restaurant due to the

board of PHO24 wants to make it becomes the key factor that made

PHO24 unique. In order to do this, they will use world-class

management which includes franchising form and technology as

methods to go to the final destination.

3. Value:

pg. 7

It is easily to see that PHO24’s development strategy is to

maintain as one leading brand of Vietnamese quick-service

restaurant in the world. Following their mission, it will be

achieve through commitment values:

Everything is based on quality, customer services and

integrity.

Customers are lifeblood of the company.

New customers are valuable for business development.

Inviting guests come to any PHO24 outlets with great

expectations and leave with full satisfaction.

Determined to expand success recipe and operation know-

how through franchising concept with careful selection of

franchisees.

Only select franchisees that can share and convey high

standard to customers.

pg. 8

4. Objectives and Goals:

PHO24 aims to expand their scale in particular having 200

restaurants in 2012. In term of quality of franchising system,

the complaint of customer about the attitude of staff in some

restaurants must be erased by controlling the employees more

strictly. Basically, in 2012, PHO24 focus on opening more

restaurants in Japan and Korea. The goal of PHO24 in long-term is

having at least 10 restaurants in Japan and Korea market; after

that, tending to enter the American market.

5. Business philosophy:

“Everything we do is based on quality, customer service and

integrity. We believe that repeat customers are the lifeblood of

our business. We also trust that new customers are valuable

energy for our business development. Therefore, we invite our

guests to come to any PHO24 outlets with great expectations and

pg. 9

to leave with full satisfaction.

We are determined to expand our successful recipe and operation

know-how through franchising concept but with careful selection

of franchisees. We only select franchisees that can share and

convey our high standards to our customers.”1

6. Core competence:

PHO24 realized that they have some core competences can be

converted to competitive advantages in the future:

Top quality ingredients.

High class services.

High responsibilities in franchise activities.

1 http://www.pho24.com.vn

pg. 10

Being one of the first business using franchising

concepts.

Having experiences in food industry.

pg. 11

II. Explain the significance of stakeholder analysis:

All enterprises; whether in the public or private sectors;

whether they are profit or non-profit organizations; have their

own stakeholders. Basing on the definition, it is known that

stakeholders are the group of people who have certain and

different interests in the company. Sometimes, stakeholders have

sufficient power to influence manager’s decisions of strategy.

Therefore, stakeholders play an important role of a corporation

to decide the success of company and strategy business for its

own. Generally, there are three types of stakeholders in PHO24,

namely internal stakeholders, external stakeholders and connected stakeholders.

These groups of stakeholders’ influences in company vary

accordingly with the roles they play in the company.

Stakeholders mapping:

Level of interestsLow High

Low

Power

High

pg. 12

AMinimal effort

BKeep

informed

CKeep

satisfied

DKey players

Figure 1: stakeholders mapping

Group A (Minimal effort): the enterprise requires little or

no effort to be focused on this group. The stakeholders

pose no threat due to a lack of both interest and power.

Group B (Keep informed): although this group having high

interest, little power to exercise control so they can be

maintained through the management of information to keep

them informed of company events.

Group C (Keep satisfied): this group may not realize the degree

of effect they have over the company so must be keep

satisfied. However, because of their low interest in

events, they are unlikely to cause significant

disruption.

Group D (Key players): the enterprise must try to satisfy this

group first and foremost as they have power to affect the

company and high degree of likelihood that they will use

their power.

Based on the two ways of dividing stakeholders in figure 1,

it is easily analyzed to make an obvious view-point about the

position as well as the influence of each kind:

Kind of

stakeholder

s

Stakeholders mappingMinimal

effort

(A)

Keep

informed

(B)

Keep satisfied

(C)

Key players

(D)

Interna Management

pg. 13

l Employees

Connect

ed

Shareholders

Creditors

Customers

Suppliers

Competitors

Externa

l

Government

Local

Authorities

Community and

pressure group

1. Internal stakeholders:

It is clearly that internal stakeholders are all managers

and employees working inside the organization. They are the core

of the company because they are definitely connected with the

company. They have affected majority on the success of the

business as they responsible for all aspects of work. So, their

objectives are likely to have a strong and immediately influence

on how the company runs. With internal stakeholders, managers are

usually the captain who create motivations and lead to the

development; while employees are the crew who take

responsibilities of finishing their works.

a. Management:

They are the important factors in term of making decisions

in a company. Shareholders have equity and usually concern about

the value and the growth of their investment capital through the

pg. 14

dividend and the share premium on stock market. The manager

satisfies them by making profit. Besides, this kind of

stakeholders is the main group with the people decided the

strategy for PHO24. They will build the vision, mission, value

and also the imagine value. It is likely a guideline for

employees work toward with all things that build by manager team.

b. Employees:

Although employees are not take part in setting up vision,

mission or objectives, the Union always protect and support them;

and, the importance of them is raised day by day. They are the

indispensable factors with the huge demonstration in activities

of a company. The employees of PHO24 are considered as important

as the manager team. They realize the goals and directions giving

from managers by actually carrying out tasks and projects which

eventually help company achieve their vision. Additionally, when

PHO24 chose one of their strategies is keeping close to

customers, employees play an essential role in maintaining the

these relationships with customers. Employees are the one who

representing the company to interact with customers. PHO24

provides them many interests such as salaries, career development

opportunities and skill improvements as well as creating a

professional, friendly and open-hearted environment in order to

individuals can show their creativeness and potentials.

pg. 15

2. Connected stakeholders:

Connected stakeholders are all shareholders, customers,

suppliers and bankers – cash flow. Connected stakeholders are the

one who ultimately determine what quality is needed and what

development is required. Besides, failures to listen to customers

will ultimate result in no sales and no market.

PHO24 is doing business in food industry. Customers perhaps

are the group of stakeholder who influence most direct to the

organization’s performance in terms of market shares and

revenues. Customers play an important role in success and failure

of company. Recently, customers have the great power than ever to

require high-class goods and services. They become the man target

of all organization; their needs decide what to produce, the

quality, the price, the development, etc. Therefore, customers

importantly decide the PHO24’s revenues and its market shares

which directly link to the company’s profits and growth.

Another point to mention is the advantages of competition is

that company can realize strengths and weaknesses. With the wise

strategy, improving strengths together with making weaknesses of

competitors become company’s advantages are necessary.

Likewise, investors and shareholders – bankers are also very

important factors with PHO24. Without this subgroup of

stakeholders, PHO24 will get difficult situations in acquiring

the necessary finance needed to develop new projects as well as

expand production.

pg. 16

3. External stakeholders:

External stakeholders are considered as the government,

authorities, communities and the press. This group’s objectives

and goals may vary and differ from the company’s. Their

requirements are like orders that the company has nothing to do

but to follow. For instant, the government sets up the general

law for all business and through it; they create a fair

competitive environment, support companies and protect other

stakeholders.

Additionally, media also plays an important role as a

medium between PHO24 and all the customers. It means the company

conveys its image to customers, reports on the company’s

performance and community services, etc. reservedly, media is

also a channel that the company gets updated information of the

industry, competitors, market and new opportunities.

Overall, each stakeholder has its own influence on company.

In order to success, PHO24 has to build clearly strategy to

satisfy all types of stakeholders.

pg. 17

Task 2: Produce an organizational audit and carry out an external

environment audit for the company.

In order to set up strategies, company firstly has to know

obviously about internal and external environment where they

operate. Through this step, it will help company define its

position in the market. The external analysis is used to identify

opportunities and threats that company have to face with; while

internal analysis shows strengths and weaknesses of the company.

Analyzing external environment, PESTEL is the most valuable tool.

Otherwise, the Value Chain of Michael Porter is a useful tool to

assess internal activities of company.

I. Internal environment:

1. Core competence:

Core competence is known as the unique set of skills,

knowledge and expertise that allows an organization remaining

competitive and provides value to customers2. The core competence

of PHO24 can be defined as below:

Strong and famous brand with many rewards: after 10 years of

formation and development, PHO24 has built an extremely

strong brand which is approved by not only customers but

also many authorized outlets. With the strong brand name,

PHO24 will make it easier to gain the awareness of

customers as well as franchisees in comparison with

competitors; thus, it will be the obvious advantage to2 http://business.yourdictionary.com/core-competencies

pg. 18

expand market. Specifically, the achievements of PHO24

are various:

From 2004 to 2009, PHO24 has been consecutively the

winner of The Guide Award voted by readers of Vietnam

Economics Times and Tu Van Tieu Dung magazine.

In 2008, PHO24 has voted as an International Franchiser

of the Year, accepted by FLA, Singapore.

In 2010, PHO24 is one of the top 10 “Ho Chi Minh City –

One Hundred Excitements” voted by travellers.

High quality management system: Nam An group is a big

organization in food industry, the management system of

PHO24 is an absolutely important and necessary

competitive advantage. It decides the effectiveness in

performing and even the success of the company. This

system creates policies that help staff keeping abreast

of the evolution in a fast changing environment and the

company increases its efficiency.

pg. 19

2. Value Chain:

Michael Porter popularized the Value Chain, which is a

concept from business management, in his 1985 best-seller,

Competitive Advantage: Creating and Sustaining Superior Performance3. It is

used to find out the underlying value of organization; together

with describing activities that take place in business and links

them to the analysis of competitive strength. There are two

headings: Primary Activities and Supporting Activities in the

Value Chain. The Primary Activities mainly describe about the

basic activities of firm related to production, sale, marketing,

service and delivery. Besides, the Supporting Activities are what

will happen inside Primary Activities. They do not directly

involve in production but it impact on efficiency.

3 http://en.wikipedia.org/wiki/Value_chain pg. 20

a. Primary Activities:

Inbound logistics: can be defined as “the receiving and

warehousing of raw materials and their distribution to

manufacturing as they are required”. Raw materials are

extremely necessary with PHO24. Hence, PHO24 built a good

relationship with suppliers based on prestige. Moreover,

PHO24 always offers contracts with high quality as well

as quantity. Therefore, the suppliers are reliable.

Operations: in the first stage, raw materials will be

converted to finished good and be brought to the

warehouse. PHO24 is the noodle restaurant chain; so raw

materials have been converted into ingredients. In

addition, human resource is key factor effect on product

quality. PHO24 has set up a training program to gain the

training needs capacity building, skills and qualities

consistent with the development of the company.

Consequently, there are obtaining positive feedback on

their performances.

Outbound logistics: Storing product and its distribution to

customers such as packing, testing, delivering and so on

(BPP, 2010). The materials of PHO24 are not always

willing to provide or sometimes the price of materials

are also increase that the company cannot control.

Therefore, it leads to the non-guaranteed quality of the

product. PHO24 need to develop production models for

ingredients and raw materials such as vegetables,

pg. 21

peppers, beefs, etc. or they have to find their reliable

suppliers. Besides, PHO24 always invests quality

warehouse systems, including common and cold storage

warehouses for product.

Marketing and Sales: this stage is to inform products and

persuade customers to buy. It involves all kind of

activities like advertising, promotion, personal selling,

etc. There is no doubt for guessing marketing and sale is

the most important activity for company following

franchise. This stage includes 4Ps in using regularly to

set up a marketing plan for company:

Place: as be mentioned, PHO24’s restaurants usually

locate in favorable locations and have standards of

designing to attract customers. The success in setting

up a synchronization system among color, uniform,

design and environment lead to easily identification

from consumers. The number of PHO24’s restaurant also

increase day by day and expanding to overseas markets.

It is the result of management activities and the

investment in examination activity of PHO24 franchised

restaurants quality in order to keep and develop its

reputation.

Price: to be honest, the price of PHO24’s product is

always higher than traditional Pho outside the street.

However, the environment, food hygiene, safety and

services are at the high and different level. Also, the

pg. 22

ingredients are inspected more careful due to the

international corporation and protection of trademark

through franchising. Basically, comparing with some

substitution in food industry, the price of PHO24 is

still reasonable.

Promotion: the role of the founder – Mr. Ly Quy Trung –

is very important. Basing on the relationships,

together with the experiences in food industry, Mr.

Trung is successful in promotion for PHO24.

Furthermore, the special taste of PHO24, thanks to 24

different ingredients, also becomes the distinct

attractiveness.

Products: recently, PHO24 wants to diversify its menu by

adding new dishes but preserve the core product – PHO.

Procurement activity helps PHO24 having the top-quality

ingredients for their products and maintain the

reputation of fresh food restaurants. The human

resource is useful to control the quality of Pho.

Infrastructure made of PHO24 differs with Pho on the

street. All of the supporting activities build the

great image for PHO24.

Service: could be defined as the “the support for customers

after products and services are sold to them”. In this

stage, PHO24 focuses on the collected opinion of

customers. They offer the opinion survey of consumers,

their assessment of product quality, product design and

pg. 23

quality of service employees as well as their

expectations for company to that may be planning new and

better strategy for the company.

b. Supporting Activities:

Firm infrastructure: it involves in planning, financing

and controlling quality.

Human resource: dealing with employees includes

recruiting, training, developing and rewarding.

Technology development: like a source of competitive

advantage. Using in product design, improving process,

resource utilization, etc.

Procurement: dealing with all purchasing of goods,

services and materials.

II. External environment:

The external factors comprise all of the entities that exist

outside the boundary; but, it has significant influence on its

growth and survival. An organization has no control over its

environment but needs to constantly monitor and adapt to these

changes, a proactive or reactive response leads to significantly

different stages.

There are different ways for classifying the types of

external environment that usually reflect the preferences of

pg. 24

different authors. Fortunately, there are some core types which

are always identified. It can be reflected in two main core

analyses: macro environment (PESTEL analysis) and industry

environment (Porter’s Five Forces).

1. Macro environment:

PESTEL is the most effective tool to identify the macro

environment included six main factors: Political, Economic,

Social-Culture, Technology, Environment and Legal. These factors

influence strongly on the performance of the company. On the

other hand, the use of this tool is to identify which factor has

the most important recently or in the next few years. Therefore,

analyzing external environment by PESTEL, only the most influence

factors need to be considered.

pg. 25

Political: this factor can be concerned as one of the

advantages of PHO24. It has known that the political

system in Vietnam is much less complicated than other

countries with single government. Besides, Vietnam is a

developing country; hence, the government applies many

positive policies in order to motivate economic

development. This is the good opportunity for domestic

organization expands their business. Moreover, the

government is also applying positively integrative

policies with other countries. This is actually suitable

with the aim of PHO24 to be the number one brand of

Vietnamese quick-service restaurant in the world.

Economical: in recent years, the living standard of

Vietnamese people is going up significantly. It is proved

by the increase of GDP which shown in the chart below:

pg. 26

According to the chart, GDP of Vietnam growth stably, it

means that the budget of Vietnamese is larger recently;

and they can afford to pay more for their demands.

Consequently, it is definitely a chance for PHO24 to

develop more high-standard products. In this case, the

economic factors are obviously an advantage for PHO24 in

domestic market.

However, inflation is not an advantage for any company in

Vietnam. At this time, VND is losing its value and the

price of goods increase rapidly. The inflation rate will

be showed in the chart below:

It is evident that the inflation rate is running at

approximately 12% - a high and danger rate. This figure

reflects real states of Vietnamese company: complex and

insecure. Hence, it is difficult for any companies in

pg. 27

Vietnam to do business. Besides, it is clearly a

difficulty for PHO24 in setting up competitive price.

Indeed, with the increase of inflation rate, every

company has to increase the price in order to maintain

the profit; PHO24 is not an exception, actually. For this

reason, the economical factor is now a disadvantage of

PHO24.

Social – cultural: traditional Pho is very familiar to

Vietnamese people. Almost people have the habit of eating

Pho in noodle restaurant on the street for breakfast of

late dinner. The price of Pho is much lower than PHO24

and the taste are totally different and traditionally.

Therefore, it attracts most of Vietnamese people who do

not have high income or the requirement of enjoying Pho

in a high standard restaurant.

Additionally, Vietnamese people in northern like Hanoi

have significant characteristics is careful. They always

require knowing deeply about the information of the

products before buy it. It could be the information from

friends, family, neighbors, media or even advertising of

PHO24. Moreover, people living in the North tend to save

money for their future so they do not spend money

carelessly. Thus, the price is a noticeable problem of

PHO24 in the North. On the other hand, in the South of

Vietnam, especially Ho Chi Minh City, people are more

active than the North people. They have their own idea

pg. 28

about the new product and always want to try a new thing.

They usually not focus on the price of product but

whether the service is good. Besides, the tropical

climate makes people prefer making meal in cool and clean

environment like PHO24’s restaurants.

Technology: along with the integration and the process of

development in Vietnam recently, technology is one of the

most important factors which is concerned. In fact, the

technology of Vietnam is increasing rapidly in recent

years. Together with the development in the information

technology, PHO24 could also use internet as a tool to

motivate the advertising activities which can effectively

promote the brand of the company not only in domestic

market; but also overseas.

Environmental: this is also a factor which can influence

strongly to PHO24. PHO24 basically different by the 24

ingredients; it is significant effected by the

environment to the productivity and quality of raw

materials which is definitely indispensible for PHO24.

Harvest failing could raise the price of raw materials

and it could also become a threat for PHO24. In

additional, PHO24 has to concern about the environment

protecting policies of the government. The industry waste

is indispensible for PHO24; and, if they did not have the

suitable solution, they could be sued. That is the reason

pg. 29

why environment could be the threat for PHO24 in

performing producing activities.

Legal: including discrimination law, consumer law,

antitrust law, employment law and health safety law.

These factors can affect how a company operates, its

costs and the demand for its products. PHO24 needs to

concern about all of these laws, especially employment

law. They must have the strict management system in order

to ensure that its staffs are satisfied after all.

Besides, health and safety law is also important. PHO24’s

board need to make sure all their employees have the

insurances and hold healthcare for them, too. Therefore,

legal factor could become threat if PHO24 do not pay

attention for.

pg. 30

2. Industry environment:

Conducting an external environment of the PHO24 is to

conduct an overview analysis by the Michael Porter’s Five Forces.

This tool is used to analyze the micro environmental; through

that, it is easily to evaluate the influences on the organization

from five factors: rivalry among existing competitors, bargaining power of

buyers, bargaining power of suppliers, threat of substitutes and threat of new

entrants. The Five Forces concept of Michael Porter, established

in 1979, mainly involves a relationship between competitors

within an industry, potential competitors, suppliers, buyers and

alternative solutions for the problem being mentioned.

Rivalry among existing competitors: PHO24 is one of the

competitive markets with many other big companies. The

pg. 31

main competitors of PHO24 are the domestic Pho restaurant

like Pho Thin or Pho Vuong; as well as the international

fast food chain such as KFC or Lotteria. All of the

competitors of PHO24 are expanding significantly in

Vietnam market with the same customers. Furthermore,

PHO24 should be careful with the unfair competitors; for

example, the scandal cockroach in salt bowl few years

ago. Besides, the switching cost in food industry is

approximately zero. Hence, PHO24 should be careful in

high competitive environment.

Bargaining power of buyers: the most important thing in this

factor is that there is no switching cost to be bound for

customers. PHO24 considers customers as an important

factor that strongly influences the activities of the

company. The company has to take care about the

customers’ psychology, the change of number of customers

each month or year to have the overview. Besides, PHO24

also segment its products based on the profitability of

customers in order to have the loyalty customers.

Bargaining power of suppliers: is the most important factor

that affect directly to the organization’s quality and

profit. The suppliers of ingredients must be trustworthy

and long-time relationship. With restaurants chain,

although the management system is very well, the main

factor need to be focus is the taste of food. Finding out

another supplier would take much time because it needs to

pg. 32

be checked the quality and the productivity as well as

the trust before setting up relationship. Therefore,

PHO24 must maintain the good relationship with long-term

suppliers; also minimize the bargaining power of them.

Threats of substitutes: nowadays, there are many companies

working in the same industry with PHO24; so, it I

impossible to avoid many substitute products. For

instant, KFC is the biggest and the most popular fast

food. These products are rather cheap, unique and having

a good appearance. Therefore, PHO24 has many difficulties

and threats in competition. Since the demands vary and

the threats of alternative brands are high, PHO24 is

pressured and subtly challenged in this area of

innovation and creativity. Hence, they decided to focus

on the convenience, food safety and brand.

Threat of new entrants: by new entrants, Porter means that

the threats come from the potential in business. The

competitors are not appeared recently but in the future.

The threat come seriously from industry potential and

market entering barriers. In industry foodstuff, due to

the high demands and big profit made, the attractions are

high and it could become risk for PHO24. However, it is

still a safe market since it is not easy to entering. The

new company should be wealthy in both technology and

input capital; unfortunately, this is not the things that

every new company has.

pg. 33

pg. 34

III. SWOT analysis of PHO24

PHO24 analyze the internal and external environment of its

business to find out the strengths and weaknesses as well as

external opportunities and threats to figure out an optimal way

of strategy. Therefore, SWOT analysis is a good tool for a group

does this thing. SWOT matrix is a critical assessment of the

strengths and weaknesses, opportunities and threats in relation

to the internal environmental factors affecting the entity in

order to establish its condition prior to preparation for long-

term plan4.

4 BPP Professional Education, 2010pg. 35

As mentioned, PHO24 has identified internal and external

environment to find out their core competence; as well as figure

out their competitive strategies. Using SWOT, internal

environment is about the strengths and weaknesses; the external

environment is about the opportunities and threats of the market.

pg. 36

From these four points, PHO24 has come up with combined

strategies for the company as showed below:

S1, S2, and S4 – O1: PHO24 continues to expand its market

through franchising form, bringing Vietnamese traditional

taste to international friends. The company uses its

strengths in franchise to save cost, make profit but

still have the chain to develop restaurants system. The

2-year investment in market research helps PHO24 preserve

traditional value together with the special taste. The

responsibilities of managing the synchronized quality of

PHO24 will make its trademark.

S1, S2, and S3 – O3: the growth rate GDP is expected to be

5.7% in 2012. It shows the attractiveness of this market

is not decreased. PHO24 tend to corporate with

franchisees in domestic market to gain the objectives

which is own 200 restaurants in 2012. The fact is that in

franchising fair, PHO24 has a large number of people

concentrate on and want to be one of the franchisees.

Besides, Vietnam joins WTO help PHO24 franchise easier.

When the purpose of appearing in every province of

Vietnam is achieved, PHO24 will have the support to

develop further in the future.

S5 – T2: in order to reduce the threats from substitutes,

PHO24 can use its strength in diversity products. PHO24

recently add rice with beef and pork as well as hot pot

in their menu to meet the different requirements for

pg. 37

various customers. The beverage and fruit juice are also

served in PHO24’s restaurants. In fact, the new menu of

PHO24 focus on traditional dishes with the impress taste

of PHO24 trademark will compete with other substitutes.

pg. 38

ConclusionPHO24 has been gaining many awards for Vietnamese food;

however, the worthiest award is in the customers’ choices. During

9 years from the start of operation, PHO24 still has the stable

position among PHO’s brand in all over Vietnam with steady

existing Vietnamese customers and large number of foreign

consumers. The value reasons are resulted in both the quality of

product for customer and effective strategies used to motivate

the development of PHO24 brand and Nam An’s profitability. With

the right strategies, Nam An group along with PHO24 brand gain

the peak of one of the most well-known PHO brands in Vietnam.

pg. 39

Reference Book source:

Business Strategy, BPP Professional Education, UK – Annon

(2010).

Internet Sources:

Financial magazine, franchise and PHO24

http://www.tapchitaichinh.vn/Qu%E1%BA%A3ntr%E1%BB%8Bn%E1%BB

%99idung/ViewArticleDetail/tabid/56/Key/ViewArticleContent/

ArticleId/5976/Default.aspx

Inflation rate of Vietnam, BBC website

http://www.bbc.co.uk/vietnamese/business/

2011/12/111223_viet_inflation.shtml

Data of GDP from Vietnam General Statistic Office

http://www.gfmag.com/gdp-data-country-reports/146-vietnam-

gdp-country-report.html#axzz1sQeDCrsO

Interest rate

http://www.quantritaichinh.vn/index.php?

option=com_content&view=article&id=374:giamlaisuat&catid=28:

tt-qttc

PHO24 main website

http://www.pho24.com.vn

pg. 40

pg. 41