Slide 1: Hello, my name is Gemma. Today I will present the PESTLE and SWOT methods in business.

The
PESTLE factors of the Vietnamese retail market will impact and create opportunities and challenges for
Nike's expansion in this market. Simultaneously, I will give recommendations and a future strategic plan
so that Nike can make better decisions.

Slide 4: And here is the table of content for today's presentation. First, we come to the overview of
Nike's company

Slide 5: The Nike Company was founded on January 25, 1964, by William Jay Bowerman and Philip H.
Knight. Nike is involved in the sports footwear, apparel, accessories, equipment, and services markets.
Nike's vision is to bring excitement and enjoyment to sports lovers. And the company's mission is to
create breakthrough innovations in the sports industry by enhancing product quality and building a
diverse and innovative team globally. https://fourweekmba.com/nike-vision-statement-mission-
statement/

Slide 6: And next we will learn more about macro and micro environment

What is the macro environment?

 The macro-environment is the economic situation in the overall economy, which has
broader and more potent effects than a microenvironment that focuses only on a particular
industry or economic area.
https://cleartax.in/g/terms/macro-environment
 Macro-environmental factors typically impact cyclical industries such as luxury products
manufacturing. Small industries such as food trading and distribution are often not too
affected by the macro environment.

What is the micro environment ?

According to Michael Porter, five fundamental factors make up the microenvironment:

Competitors, customers, suppliers, potential competitors, and substitute products. The
microenvironment is the business environment of each enterprise; it strongly and directly
affects, determines the nature and degree of competition in the business industry.

Slide 7 And next I will answer the question Why do we need to analyze PESTLE

We need to analyze the PESTLE: The macro-environment is an integral part of the strategic management
process. Therefore, using the PESTLE model as a tool to evaluate the market and the industry before
starting a new campaign, a business can then explore market conditions and build the implementation
plan based on the findings. It is the reason why analysis of the macro-environment is critical for the
flourish of an economy. As a result, companies will find appropriate solutions for each specific economic
sector.

Slide 8: And we need to understand what words PESTLE is compounded from?

 P: Political factor is one of the complex influences from the outside environment on the
activities of companies and organizations ( study.com). These effects are related to
government and political conditions; The political policies of each government can create
opportunities or threats for businesses.
https://study.com/academy/lesson/political-factors-in-business-definition-examples-
quiz.html
E: One of the most essential variables in business activities is the economic factors which
play a large part in deciding how a company makes its decisions. Some of the economic
factors impacting business include:
Interest rates
Exchange rates
Recession
Inflation
Taxes
Demand / Supply
(https://pestleanalysis.com/economic-factors-affecting-business/)

S: On the one hand, Covid hampers many companies and workers around the world.

On the other hand, the Covid situation is also considered a development opportunity for
many businesses
T: One of the energetic aspects is technology, which brings with it both opportunities and
challenges for organizations.
- L:
+ National's rules and regulations will have a huge impact on businesses located in that
country.
- E: Currently, masks and gloves have become prevalent worldwide to mitigate the
incidence of Corona Virus infection it is a causing pollution.

PESTLE VIETNAM

SLIDE 9: In order to understand in-depth the sports retail market industry in Vietnam, research of the
business’s surrounding environment is necessary to be conducted beforehand by using the PESTLE
model to find factors impacts on international enterprises operating in Vietnam.

Political:

(+) All companies and individuals selling goods and services for commercial purposes are required to pay
tax. In 2020, Vietnam’s Corporate Income Tax (CIT) rate was set at 20% - the fifth year in a row. This is
the lowest rate in a 20-year-period. The amount companies are charged for CIT depends on their net
income in a fiscal year.

https://tradingeconomics.com/vietnam/corporate-tax-rate

(-) All products and services used for production, trading, and consumption are subjected to Value
Added Tax (VAT) in Vietnam. Imported goods are required to pay not only VAT but also import duties to
the customs authorities.(PwC Vietnam 2019a.)
https://www.pwc.com/vn/en/publications/2019/pwc-vietnam-pocket-tax-book-2019-en.pdf

Slide 10: Ecocomic: (+) More than 45 million Vietnamese people were lifted from poverty; the poverty
rate decreased from more than 70% to less than 6%. The Gross Domestic Product (GDP) increased
strongly by more than 2 times and reached 2500( chu thao dình and phai hưn đờ rét) USD in 2018.
(World Bank 2019a.)

https://www.worldbank.org/en/country/vietnam/overview#

The figure below demonstrates the growth in Vietnam's GDP in a 25-year-period between 1995 and
2020.

(-) However, during the first nine months of 2021, the Covid pandemic broke out again and quickly
spread in Vietnam. To prevent the risk of infection, the government had to issue regulations that forced
businesses to close and minimize people going to public places, temporarily. As a result, the pandemic
dramatically affects the performance of the Vietnamese economy in particular and the global economy
as a whole. Therefore, businesses need to stabilize their company situation and gradually restore the
economy after the Covid-19 pandemic.

Slide 11: Social: Vietnam has an almost equal ratio of men and women in its population, with the male
population at 49% and the female population at 51% 15 years old is 25%, while the proportion of people
over 65 years old is just 6%. A such, the population from 15 to 64 years old takes up to 69%
https://countrymeters.info/en/Vietnam
 - From the provided data, it candidates that the young generation is a potential customer for
almost all kinds of businesses. In addition, during the Covid era, online shopping is more
dominant than traditional methods. Thanks to that, stores can save money
- On the other hand, due to the long stay-at-home, people tend to go out and purchase clothes.
Therefore, in order to develop in the best way, businesses should expand both conventional and
online sales at the same time.

Slide 12: Technological: The rate of smartphone usage in Vietnam is very high, but convenient
procedures such as E-Banking or online payment methods are still unusual to many people.

The following figure will show more detail about these activities. For example, the number of people
using online payment accounts for 48%, while 52% of Vietnamese people do not know about this activity
( tmibrand.vn) . In general, the Vietnamese still prefer to use cash as the main payment method.

tmibrand.vn/we-share/ket-qua-nghien-cuu-ve-thi-truong-e-banking-viet-nam-thang-12021
(-) Although, the energetic development of the Internet and state-of-the-ate technology, many
Vietnamese retail businesses have not took advantage of the opportunity to optimize resources and
reduce other costs. In other words, it is a big market full of opportunities for any foreign companies that
already have an existing system of highly technological operation to invest in.

https://nhanh.vn/cafebiz-cuoc-cach-mang-cong-nghe-trong-ban-hang-n40989.html

Slide 13 Legal: (+) To draw (FDI), the government has constantly strengthened policies related to
business and investment (Nguyễn, 2013). FDI plays a vital role in Vietnam's economy, so the authorities
have improved the legal system, such as taxation regulations

(+) Not only that, both direct and indirect foreign investment are two forms that foreigners are
authorized to do business in Vietnam. Firstly, a company in Vietnam can be owned by an individual or by
a foreign entity. However, to open a business in Vietnam, the owner must provide legal documents
Secondly, when a foreign individual or company buys shares of a Vietnamese enterprise or invests in
stock, it is considered an indirect foreign investment. (Angloinfo Vietnam 2020.)
https://www.angloinfo.com/how-to/vietnam/working/starting-a-business

Slide 14 Environment:

(-) In general, the environment in Vietnam is polluted. Hanoi, its capital city, was ranked the seventh
most polluted city globally by AirVisual in 2019 (Nguyen 2020). The primary causes are that the
environmental consciousness of Vietnamese people is still low. And it is also being impacted by many
factors, including gas exhaust, industrial production emissions, littering, etc.
https://e.vnexpress.net/news/news/hanoi-ranked-world-s-seventh-most-polluted-capital-city-in-2019-
4061412.html

(-), Retail businesses and supermarkets in Vietnam offer free plastic bags to all buyers. As a result, the
amount of plastic wastes is unimaginable( ình ì ma chin nơ bồ) . n 2019). https://vietnamnet.vn/en/sci-
tech-environment/vietnam-consumes-938-million-plastic-bags-weekly-survey-583543.html

(+) However, there have been several significant( sịt ni phi cình) changes regarding replacing plastic
bags implemented by retail businesses recently. Moreover, 86% of Vietnamese consumers are willing to
pay more for products and services that positively impact the environment. This shows that Vietnamese
people have heightened their awareness of environmental protection.

Slide 15 And this is a TRAFFIC LIGHT ASSESSMENT for Nike:

- TRAFFIC LIGHT

Factors Low Medium High

Political X
Economic X
Social X
Technological X
Environment X
Legal X

 Overall, it is a green light for Nike with some following reason which be explained then:

, it can be seen that the sportswear retail industry has substantial( sụp sờ tan sồ) growth opportunities
in the current economic situation in Vietnam. This is a potential industry that many businesses aim for,
so the competition between companies is relatively high. Requires unique business strategies and
targets large numbers in today's market, such as young people.

+ Nike is a foreign business; consequently, it has to pay both VAT and import tax to the customs office to
import products. However, income tax in Vietnam is currently at 20% and is the lowest tax range in 20
years. In addition, the Vietnamese government has a tax reduction policy for foreign and domestic
businesses operating in Vietnam during the pandemic. This is a rare opportunity for Nike to expand the
Vietnamese market.

+ Environmental pollution is one of the problems attracting the attention of many people around the
world. According to (https://baoquocte.vn/en-mot-the-gioi-xanh-hon-cam-ket-cua-nike-ve-viec-giam-
dau-chan-carbon-144295.html ). Nike has attended The "Reducing Carbon Footprint" campaign, which
was started in May 2021 and is going to be maintained for five years. However, this campaign for
Vietnamese customers is still little known. If promoting this crusade and starting new environmental
protection campaigns in the future, Nike will definitely score in the customer's eyes.
+ Vietnamese society is gradually adapting to the new normal lifestyle because they have to be careful
with Corona Virus => they need to exercise to increase their immune system => demand to buy Sports
equipment, sportswear for exercise skyrocketed.

+ Nike's use of modern technology in production and trade is a strength compared to other businesses
in Vietnam. Compared to the cash payment method, Nike encourages people to pay via online banking
or credit card with attractive promotions will be a strategy worth( quớp ph) considering. This avoids not
only human-to-human contact during the Covid pandemic but also limits many risks.

 This is a favorable( phây vờ rờ bồ) opportunity for Nike and the Vietnamese economy to
recover from the Covid 19 pandemic gradually.

Slide 16: SWOT OF NIKE:

Before learning about SWOT analysis ( a na li zờ) I will answer the question

Why need to do SWOT analysis?

SWOT analysis is a tool that is both effective and extremely simple. A SWOT analysis can help a
business pay attention to its most vital strengths, identify its weaknesses, take advantage of external
opportunities, and avoid threats that endanger ahead.

Overview:

Nike SWOT analysis will reveal strengths that need to be promoted and weaknesses that need to be
improved. In addition, this analysis exhibits opportunities for Nike to enhance its reputation in the world
and shows threats for Nike to have specific plans to tackle this situation.

Slide 17: Strength: 1. Recognizable ( re cờ nai zây bồ) brand.

The Nike logo and brand is a household name in practically every national worldwide. We have easily
recognized this brand on shoes, clothing, and even sports equipment for decades( đe cầy).

2. Solid Customers:

Nike has had a steady stream of customers over the year Many customers do not choose this brand for
casual use but become a Nike brand's fashion collection. The most obvious example is that Nike holds
nearly 27% of the global sports shoe market share. (Statista)

3. Diversity products:

Nike owns a line of sportswear for almost sports and separate ( sep ờ rợt) seasons. It is bringing
customers a diverse( đài vớt s) view of Nike and its products.

https://brandongaille.com/nike-swot-analysis/
Slide 18. 4. Culture:

Nike is very diverse( đài vớt s) in the culture of each nation in the global, When Nike has understanded
the culture and preferences of the local people in the company will capture customer psychology and
market its products more effectively to help boost sales.

5. Orgizational Structure:

https://www.edrawsoft.com/company-organizational-chart.html ( link ảnh )

Nike's organizational structure has many advantages to separate(( sep ờ rợt) departments to do the best
work and support each other in work:

Firstly, Nike products are segmented( sét mình tịt) differently by region of the world because it depends
on the people's preferences in that region. That is the reason why you can see many Nike products in
other countries but cannot find them in your country. This has helped Nike's sales increase dramatically.

Secondly, the functional structure has been cleverly utilized( du tờ laiz). This means that functions are
separated( se pờ rợt tịt) and implemented quickly. Therefore, Nike has good coordination between the
parts, which not only brings the best efficiency( ì phi sình sì) but also reduces the possibility of mistakes.

https://www.advergize.com/business/nikes-organizational-structure-the-pros-cons/
Slide 19: Weakness: Weaknesses are part of the internal factors of a company.

1. Problematic labor conditions:

In the last 20 years, poor labor conditions have been an issue for which Nike has been repeatedly
criticized. Nike has relied on cheap labor in society to keep its operating costs down.(
https://bstrategyhub.com/swot-analysis-of-nike- nike-swot-analysis/)

2. Contradicting Strategies:

Nike is highly acclaimed for its "Move to Zero" program. This is an excellent strategy as Nike. However,
this strategy runs counter to another Nike's strategy is advocating innovation instead of maintaining
sustainability. This created a wave of speculation about whether this is a marketing, and Nike is not
committed to participating in climate change mitigation. (https://bstrategyhub.com/swot-analysis-of-
nike-nike-swot-analysis/)

3. Retailers are a major factor.

To get products to consumers, Nike must go through third-party retailers. This dependence is
inconvenient because Nike has to make a part of profits or drive up to consumers and raise prices
higher. Although many people are loyal to Nike products because of their quality, many will consider
and turn away.

Nearly 65% of Nike products are sold out at third-party retailers.

(https://brandongaille.com/nike-swot-analysis/)

- Slide20: But Nike’s OPPORTUNITIES are also much

+ Taxes: This is the period when the economy is gradually recovering after a period of many fluctuations
due to Covid 19. Therefore, not only the Vietnamese market but also many countries worldwide will
reduce taxes and strengthen policies. preferential policies for businesses, especially foreign enterprises

+ Environment: Nike has a lot environmental campaigns. Moreover, the demand for recyclable products
will increase in the following time because customers turn to environmentally friendly products. This is
an opportunity for Nike to affirm that the goal of its campaigns is to protect the environment, not a
marketing trick

+ Economic: Currently, Nike has 338 ( truy hơn đờ ét thớt ty ei) retail locations in the United States and
millions of retailers worldwide. However, Nike should sell directly to customers instead. Specifically, in
the current challenging economic situation, selling directly to customers can save money by limiting
taxes and commissions for retail locations

+ Social: Nike is very culturally and socially diverse (đài vớt s), able to understand and meet customers'
demand divided by gender and age. Many countries worldwide are now looking for opportunities to
cooperate with Nike to improve people's life quality after the impact of Covid disease. Nike would be
wise to take this opportunity

+ Technology: Nike may have a solid technological edge over other players in the industry. Nike's e-
commerce( co mờ) technology was developed early for customers to gradually get used to a modern
environment through features set up in Nike's mobile application. Smartphone and have it delivered to
your home at any time.

THREATS: ( https://swothub.com/nike-swot-analysis/ )

Slide 21: Threats are one of the most important parts of a swot analysis

- Revenue: Revenue will be threatened by the following factors:

+ the US and China have escalated( es cơ leit) conflicts, which will have no small impact on Nike.

+ How Covid 19 will evolve in the world is unpredictable, so this may limit people's movement and the
sports activities they will participate in.

+ the price will be highly competitive with other companies

- Counterfeit (cao tơ phịt) products:

+ Some retailers who want higher profits will substitute( súp sờ ti tiu) products with lower prices and
quality but still keep the Nike brand. When customers receive the product, they will be disappointed
and will no longer buy Nike products.

 Slide 22: And my Recommendation is A strategic plan may assist Nike to progress soon and
have many advantages in expanding the market in Vietnam:

+ The most important thing is still product quality.

To ensure product quality, the staff must have expertise( ẹt sờ pơ ti z). Therefore,
employees must be cautiously( co sợt lì) selected and intensively trained instead of using
low labor in society.

+ The spread of the Covid is something that we cannot predict( pờ rì đít), so we need to be
prepared for it. Nike should not focus too much on shoes but increase the production of home
sports equipment

+ Currently, there are many counterfeits((cao tơ phịt) of Nike on the market. To overcome
this, it must first cut down on retail establishments.
Last but not least is the environment. Nike ought to implement environmental protection
campaigns that the company has situated. That is the best way to clear customers'
doubts( đao tờ) that it is just a marketing trick

Slide 23 The link between In and Ex: The internal environment is controllable and composes of all those
factors, conditions, which exist inside the company and has the capability to the company’s strategic
decisions. On the contrary, the external consists of factors from the environment and are largely
uncontrollable. However, it can affect the company’s operations

Changes in internal environmental factors affect the company only, therefore, impart strength or cause
weakness to the firm. In contrast, changes in external environmental factors create either give
opportunities or threats that impact the industry as a whole, and all the companies operating in the
industry get affected by it.
Therefore, in order for the company to achieve the best performance and avoid the risks, both internal and
external factors must be combined.

Slide 24 The link Pestle and swot :

While PESTLE analysis just evaluates external factors, SWOT evaluates both external and internal factors
that may influence the business.

SWOT analysis tends to evaluate a business based on the Organization's Strengths, Weaknesses,
Opportunities, and Threats. It is advantageous by leveraging strengths and taking advantage of
opportunities while minimizing weaknesses and avoiding threats.

PESTLE analysis helps businesses identify and understand changing trends (external factors) in the
market and industry in which they do business. Therefore, it is beneficial to perform a PESTLE analysis
before the SWOT analysis.

Analysis of PESTLE factors will help us identify and find the SWOT factors of the business. Therefore, a
PESTLE analysis can play an essential role in creating a complete SWOT analysis.

=> Both analyzes together will help organization get a complete picture of the situation, potential, and
future direction of the business.

Slide 25 Conclusion: After analyzing Pestle and Swot, Nike has the opportunity to expand and develop
in the Vietnamese market. However, Nike must improve and enhance its weaknesses to avoid threats
from the macro environment. At the same time, let take advantage of opportunities to increase sales
and promote their strengths.