Be Assignment 2

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Executive Summary
The report below is about Trung Nguyen and its market in Vietnam and UK. Basically, the report solves some main problems:

- Explain how market structures in the above case study deviate from the model of perfect competition

- Use a range of examples to illustrate the relationship between market forces and Trung Nguyen Coffee responses

- Explain the behaviour and competitive strategies employed by Trung Nguyen Coffee and discuss the role of the competition commission and regulatory bodies

- Discuss the importance of international trade, economic integration and global markets to Trung Nguyen Coffee

- Analyse the impact of two policies of the European Union on Trung Nguyen Coffee

- Explain the economic implications for the UK of entry into EMU


Trung Nguyen Corporation was established in 1996 by four young entrepreneurs with a vision of creating a famous coffee trademark, established Trung Nguyen Coffee Company and introduced the authentic Vietnamese coffee to the world. In 1998, Trung Nguyen's slogan appeared in all the opulent streets of Saigon. People were amazed with the new coffee lifestyle that Trung Nguyen introduced and were captivated by the rich, authentic Vietnamese coffee it offered. Enthusiasm and the quick acceptance by consumers created a "Trung Nguyen phenomenon" in this vibrant and competitive city.

Two years later, Trung Nguyen appeared in all of South West Provinces. Can Tho branch was set up and established Trung Nguyen development in the most immense and fertile delta in Vietnam. Trung Nguyen was launched in Hanoi and established a significant development of Trung Nguyen Coffee in Vietnam. Then, it continuously opened more branches in different provinces and cities of Vietnam, Singapore, Thailand and Cambodia. In 2003, G7 instant coffee was launched in a grand event, dubbed as "G7 Instant Coffee Festival", held at the Independent House on November 23, 2003 with 50,000 participants. This established G7 as the "preferred brand" over Nescafe, one of the most popular and favorite brand of instant coffee, through a voting system. With a total of 13,000 respondents, 89% voted in favor of G7 Coffee, while 11% chose Nescafe.

In 2005, Trung Nguyen formally inaugurated the roast and ground coffee “Buon Me Thuot” and the Instant Coffee Factory in Binh Duong province which had the largest capacity in Vietnam. It is the only coffee factory granted with the EUREGRAP International Certificate, for its cleanliness and excellence in producing coffee. Few years later, it published the Coffee Philosophy of Vietnam and started the project “The Global Coffee Sanctuary” in Buon Ma Thuot City. Trung Nguyen coordinated with Dak Lak people‟s committee to successfully hold the Cultural Coffee Week 2007 in Ha Noi and Ho Chi Minh City. The event helped increase the Vietnamese‟s awareness of the role and importance of Vietnamese coffee, and also was the premise for future coffee festivals.

Furthermore, in 2008, it opened the New Franchise café system in Vietnam and international, inaugurating the Trung Nguyen Coffee Village in Buon Ma Thuot City. Just last year, Trung Nguyen Creative Coffee House in Ha Noi was opened. New Trung Nguyen Coffee Factory in Buon Ma Thuot City was built, with the investment of more than 40 million USD and with the most modern technology in the world. The company‟s short and long term objectives are dominating the domestic market and conquering the international market by moving from the width to the depth, investing in coffee industry, and developing internal and international franchise system.


Task 2: CEO of the company told that you would also be responsible for the European region and he asked you to write a report on the following areas:

2a. Discuss the importance of international trade, economic integration and global markets to Trung Nguyen Coffee.

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