Ism Case Study 1 Hoa Binh Fashion

Question 1: In order to have a successful business strategy, Hoa Binh Fashion company needs to consider external and internal environments which could influence the company's development. External environment is out of control of organization that significantly affect its performance such as economic, global, socio-cultural, technological, demographic, and political factors. By learning the external environment, the company can identify opportunities and threats. Internal environment consists of elements within the organization, including resources, capabilities and core competencies which are under the control of the organization. The company should take advantages of its strengths in order to get competitive advantages.

Question 2: The internal and external environment have big influence on Hoa Binh Fashion's business strategy, among which the following considerations should be attended in order to pursue a successful strategy: Economic environment where the global crisis could impact the business; Political environment which puts pressure on import/export because of the Government's protection of domestic products; Product Substitutes that offer goods with cheaper prices to the customers, Sociocultural environments where the market for Vietnamese products is small; the Unique resources of Hoa Binh Fashion that create favourable conditions for the company's development; and the Capabilities of the company with more than 20 years of operation.

Question 3:

1. Economic environment: With the impact of the global economic crisis, it is necessary to have stimulus package for consumers in importing countries such as Germany or US. In addition, the Government of Vietnam needs to regulate to lower interest rates in order to increase investment capital. Regulations also should be made to reduce export tariff, thus to cut costs.

2. Political/Legal factors: Stability of political situation in England, Australia or Germany is one of favourable conditions for Hoa...