ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Date Received 1st

Submission date 26/08/2002
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Student Name Nguyễn Hoàng Quỳnh Anh Student ID GBH220143

Class GBH1108 Assessor name Đoàn Thị Thùy Trang

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Table of Contents
1. Introduction_____________________________________________________________________________
2. Introduction to VietJet Joint Stock Company____________________________________________________
2.1. Logo_________________________________________________________________________________
2.2. Website_______________________________________________________________________________
2.3. Main field of business___________________________________________________________________
2.4. Main geographical market_______________________________________________________________
2.5. History of VietJet_______________________________________________________________________
3. Conduct internal and external analysis of VietJet to identify strengths_______________________________
3.1. The strengths of VietJet among Marketing and Finance________________________________________
3.2. Evidence supports the strength____________________________________________________________
4. Conduct internal and external analysis of the chosen company to identify weakness___________________
4.1. The weakness of VietJet among Human Resources and Finance________________________________
4.2. Evidence supports the weakness of VietJet_________________________________________________
5. Identify the positive and negative impacts of the macro environment:______________________________
5.1. Impact of economic factors: inflation rate on the business of VietJet____________________________
5.2. Impact of technology factor on the business of VietJet________________________________________
6. Explain how the military conflict between Ukraine and Russia impacts Vietnamese company business____
9.  Explain how strengths and weaknesses interrelate with external factors as after:_____________________
9.1 Describe facts or findings of business decision_______________________________________________
9.2 Explain the business decision is consistent with the strengths__________________________________
9.3 Explain the business decision overcomes the weaknesses______________________________________
9.4 Explain how business decisions can deal with the impacts opposed by the macro environment._______
11. Conclusion______________________________________________________________________________
References_________________________________________________________________________________

1. Introduction

The report below will analyze the scenario of VietJet Aviation Joint Stock Company based on SWOT
including strengths, weaknesses, opportunities, and threats, and show how the macro environment
 affects the company's business decisions. The report will provide an overview of the internal and
external environment of the airline company VietJet.

2. Introduction to VietJet Joint Stock Company

2.1. Logo

Source: www.vietjetair.com

The VietJet logo uses the word – stylized brand name as the main identity symbol. The typeface in the
VietJet logo is creatively and uniquely designed, creating a highlight that attracts customers at first sight.
VietJet logo colors use bright red and yellow colors to create a sense of a youthful, modern, and fresh
style. Red symbolizes enthusiasm, and passion, is also a bright, outstanding color that always creates
attraction and freshness. Combined with the bright yellow color in the VietJet logo, it has created a very
new identity color that is not outdated. When the extremely prominent VietJet logo comes with a
dynamic uniform and a consistent and professional service

attitude, creating an impressive VietJet image. Overall, the VietJet logo stands out brilliantly, creating a
sense of modernity and being full of energy. The use of vibrant colors in the VietJet logo has contributed to
attracting all eyes from the first seconds. If the logos of other airlines use background colors, the VietJet
logo is more special in making it stand out.

2.2. Website
Available at https://www.vietjetair.com/vi and offers a variety of features, including online check-in, ticket
purchase, and flight information searches.

Source: www.vietjetair.com

2.3. Main field of business

- Commercial aircraft

+ Negotiate and order large quantities of new aircraft with two manufacturers aircraft exporters are
Airbus and Boeing

+ Work with partners to negotiate and agree on several strategic agreements to support each other
through the Covid-19 pandemic.

- Ground Operation Service

+ VietJet conducts ground services by itself at Noi Bai Airport (Hanoi) helping the airline ensure safety
and improve the quality of passenger service and increase the ability to be proactive during the peak
season.

- Air transport

+ Passenger transportation accounts for over 80% of the parent company's revenue charter and wet
charter, freight, and ancillary activities aid.

- Air cargo services

+ VietJet applies for a license to convert some aircraft configurations into transport cargo, applying new
exploitation methods to enhance cargo transport capacity for the fleet.

- Aviation training

+ In November 2018, VietJet Aviation Academy (VJAA) co-organized by VietJet and The Airbus group that
coordinates construction and operation is the center of training human resources mainly for VietJet and
its partners in and foreign.

2.4. Main geographical market

According to VietJet’s annual report 2021, VietJet's network of routes is extensive in Southeast Asia, and
Northeast Asia, with 139 routes, including 48 domestic routes and 95 international routes, to more than
70 destinations, operating in 14 countries including China, Korea, Japan, Hong Kong, Macau, Taiwan,
Indonesia, Malaysia, Myanmar, Thailand, India, and Singapore. In the domestic market, VietJet has
representative offices at 18 airports, of which the main airports include: HAN, SGN, DAD, PQX, and CRX.

2.5. History of VietJet

VietJet Aviation Joint Stock Company, commonly known by the brands VietJet Air or VietJet, is Vietnam's
first private airline. Not only air transportation, but VietJet also provides consumer demand for goods
and services through e-commerce technology applications. VietJet is an official member of the
International Air Transport Association (IATA) with the Operational Safety

Certificate (IOSA). VietJet Air was established by 3 main shareholders, namely T&C Group, Sovico
Holdings, and HDBank with an initial charter capital of 600 billion VND (equivalent to 37.5 million USD at
the time of capital contribution). The airline was approved for license by the Minister of Finance of
Vietnam in November 2007[2] and became the fourth airline in Vietnam, only after Vietnam Airlines,
Jetstar Pacific, and Airline Service Company (VASCO), and is the first private airline in Vietnam. On
December 20, 2007, Minister of Transport Ho Nghia Dung granted VietJet Air an air transportation
business license. According to the original plan, VietJet Air planned to officially go into operation at the
end of 2008, but due to fluctuations in petrol and oil prices, VietJetAir decided to postpone it to
November 2009. At the end of April 2009, Sovico Holdings acquired all shares of T&C Group and became
the largest shareholder, owning 70% of VietJetAir's shares. In February 2010, Air Asia acquired 30% of
VietJetAir's shares. Air Asia is another low-cost airline based in Kuala Lumpur, Malaysia, specializing in
domestic and international flights and is Asia's leading low-fare airline.

3. Conduct internal and external analysis of VietJet to identify strengths

3.1. The strengths of VietJet among Marketing and Finance
- Large financial potential because VietJet receives loan support from HDBank (a member of Sovico
Group), ability to bear financial and legal risks

- The company's first strong point is its rapid growth in market share year by year. Newly put into
operation at the end of 2011, VietJet has become the largest domestic airline with a 42% market share.
The company has reported profits continuously since 2013.

- VietJet's brand is famous for its strong marketing activities that strike the right psychology of target
customers. The nationwide distribution system is also one of the strengths not to be missed by this low-
cost airline.

3.2. Evidence supports the strength

VietJet Air's marketing strategy is to implement a low-cost product strategy, from investment and brand
recognition to promotion and marketing, VietJet has also achieved many successes after its birth. VietJet
Air is a low-cost airline that focuses on young, dynamic, and middle-income customers on the first flights.
VietJet Air's customers successfully use technology and the Internet

such as smartphones, email, social networks, and online payment methods (Visa, Mastercard). At the
same time, he has a hobby of often exploring and traveling for popular reasons. VietJet's main customer
groups are creative, change-loving, and connected people. Cheap fares are a special trick in VietJet Air's
marketing strategy to attract customers. To do that, VietJet Air must optimize costs. VietJet Air only
operates A320 and A321 fuselage aircraft. This type of aircraft specializes in serving short flights (flights
from 5 to 6 hours), helping VietJet Air rotate many flights a day, and reducing operating costs and
accommodation costs for the fleet. This type of aircraft is also the most advanced, with an age of more
than 3 years, helping VietJet to save maximum natural costs (15%). In addition, VietJet's pricing strategy
has also reduced operating costs and eliminated in-flight meals. Instead, management and meals have
become services for which customers have to pay separately on their request. However, VietJet's menu
has 9 hot dishes that suit the tastes of many customers. VietJet Air's marketing strategy has attracted the
attention of customers, caused a lot of interest, and made customers talk about the brand. during and
even after the strategy. These help to increase brand awareness and brand recognition among its goals.
Based on the strength of the brand, since 2015, VietJet has had a new status, which is to stop deducting
commissions for agents. In contrast, VietJet Air only returns 0.03% of the ticket price, as a fee for
payment via an Internet banking card.VietJet Air has caused great controversy in public opinion about
breaking the old image of Vietnamese hostesses in traditional Ao Dai since launching the "marketing
weapon" as the next costume flight attendant in a sexy bikini. All of them are aimed at young Vietnamese
people. Especially, with the bikini show on the plane, VietJet has maximized its media access to
customers. 150 articles were written about the program, including several “reputable Vietnamese
newspapers” and several international newspapers. Ms. Nguyen Thi Phuong Thao, CEO of VietJet Air,
came up with the unique idea of having "dancing bikini models" to mark her airline brand in Vietnam
with the motto "Flying free." ". She asserts that her brand represents something “innovative, modern and
energetic that cannot be found in any existing Vietnamese airline brand despite the criticism of the
airline.” Fame". Thanks to VietJet Air's marketing strategy, the company has captured more than 30% of
the Vietnamese airline market share in just a few years ahead of much larger competitors, such as
Vietnam Airlines. VietJet Air's controversial advertising and marketing activities as well as providing low-
cost airline tickets have created a prominent image for the VietJet Air brand in the market compared to
the advertising and marketing of traditional airlines in Vietnam.

Source: www.vietjetair.vn
 Source: www.vietjet.vn

An effective advertising campaign for VietJet Air can be mentioned as campaign: "Ket Noi Yeu Thuong-
Yeu La Phai Toi". With brand positioning as a new generation low-cost airline, VietJet Air always aims to
create conditions for everyone to have the opportunity to fly. And the end of the year is also the most
awaited reunion and gathering time for spouses, parents-children, lovers or friends... But it will be more
difficult if they study and work abroad. On the other hand, because it is also the festive season in many
Asian countries, it is not always possible to "hunt" good tickets.

As an airline, VietJet connects love with its cross-border flights. For families, the journey of loving
connection is an opportunity for Vietnamese people across Asia to reunite with family and loved ones.
For young people across Asia, this is an opportunity for them to find or return to a land that they
especially love, enrich their living capital as well as realize their "love is a must" travel desire.

With this advertising campaign, VietJet has achieved certain successes in attracting customers and
improving brand recognition with more than 45 million reach, and 3.6 million engagements in 9 countries
and territories. launched the campaign, 31 million views of the "Fly for Love" music video, and 2,645
entries within a week, of which more than 700 entries were from Korea, 350 from Thailand, and more
than 700 entries from Korea. 8520 entries during the campaign.

-Finance
VietJet develops a cash flow plan and a capital arrangement plan for the period 2021-2022 to maintain
healthy financial health, ensure operating capital and develop investment capital at the most competitive
costs. VietJet Aviation Joint Stock Company (VJC) is an enterprise with good financial capacity and good
governance on the Vietnam stock exchange. VietJet has come up with quite successful business and
development strategies. As evidenced by the revenue, assets, profit, and owner's equity, have increased
steadily year by year. VietJet's airline revenue and consolidated revenue in 2021 compared to 2020
reached VND 9,065 billion and VND 12,875 billion, respectively, down 40% and 29% (Annual Report,
2021)

Source: Annual Report, 2021

Profit before tax of the Parent Company and the Consolidated Company reached VND 79 billion and VND
180 billion, respectively. This is a very important indicator in the context that other airlines have suffered
huge operating losses and have to restructure the company or receive help from the Government to
maintain continuous operations. In addition, this target helps VietJet be proactive in mobilizing capital in
the credit and capital markets.

4. Conduct internal and external analysis of the chosen company to identify weakness
4.1. The weakness of VietJet among Human Resources and Finance

- VietJet makes the majority of its money through sale and leaseback transactions, but as the lifespan of
the aircraft lengthens, the airline will eventually face costs that are higher than the typical rental rate.

- Due to the fleet's rapid expansion, VietJet is experiencing a lack of qualified human resources.
4.2. Evidence supports the weakness of VietJet
- Human Resources

As the travel demand has increased recently, the shortage of human resources for airlines and aviation-
related companies is clearly showing. The biggest difficulty for VietJet today is the lack of

and weak human resources, forcing them to hire foreign employees at a much higher cost than domestic
ones. Currently, except for the national airline Vietnam Airlines, all airlines have to hire pilots and
engineers from abroad. Human resources are posing a difficult problem for the industry that requires
special professional standards and services.

Aviation human resources have not yet met the requirements because training facilities are still lacking.
Another reason behind the shortage of human resources is the pressure on airlines to increase profits. In
the aviation industry, the training process is rigorous, according to international assessment standards.
Therefore, it takes at least 2-3 months from the recruitment stage to the time of training and flying
practice.

On the other hand, the ineffective management and supervision of human resource development by the
State will not solve the problem. The industry has lost a lot of people over the past two years and it will
take time to recover. Dong-A Ilbo newspaper said that recently, many customers have complained that
they have to wait too long to connect with airline consultants. The number of service consultants has
decreased by 50-60% during the COVID-19 outbreak but has not been re-added. In June 2022, VietJet
quickly recruited hundreds of flight attendants, ready to train for 1.5 - 2 months before doing the job.
According to the sharing of many flight attendants, the number of flight attendants was large but the
number of flight attendants was large. The number of qualified graduates from the training program is
still small.

In addition, Deputy General Directors of VietJet, many managers hold one position, often leading to
conflicts when reaching a consensus. Difficulty in mobilizing human resources between departments.
 Source: Annual Report, 2021

- Finance

Most of VietJet's profit comes from sale and leaseback activities. Since the end of 2014, the airline has
agreed with Airbus and has received 28 aircraft ordered from Airbus, sold and leased all of these aircraft.
This is an operation that LCCs often use to make quick profits. However, in the long run, it will turn into a
weakness as VietJet will end up paying higher than average rental costs as the life of the aircraft
increases. VietJet is also enjoying the advantage of low maintenance costs because of its new fleet of
aircraft. In the future, the cost of aircraft maintenance and lease may increase, and the company faces
fiercer competition after expanding its operations in the international market - a move necessary to be
able to use the aircraft.

VietJet Air signed a contract to buy aircraft with manufacturers (Airbus or Boeing) and had to pay an
amount ranging from 1-5% of the contract value in advance. VietJet negotiates the sale and leaseback of
these aircraft with leasing companies (such as GECAS) before the time of delivery of the aircraft. Then, at
the time of delivery, VietJet will receive the aircraft, use the money from
GECAS to pay Airbus, and transfer the aircraft ownership documents to GECAS. Lease contracts usually
last from 6-12 years, with a fixed monthly rental fee (about 500,000 to 750,000 USD/month). After the
expiration of the lease term, the aircraft will be returned to the leasing company. In case the airline
terminates the contract early, there will usually be a penalty. Thus, VietJet did not have to spend all the
money to buy an aircraft, just need to make a deposit, then use the money of the aircraft rental company
to pay the aircraft manufacturer.

In terms of the benefits of Sale & Leaseback activities, we can see the extremely beautiful profit figures
on the financial statements, moreover, if the company orders aircraft from the manufacturer in large
quantities, they will enjoy a discount can be up to 40-50%, so they will often have a profit from reselling
to rental companies. Thus, the company can both develop the fleet and have the cash flow to finance
other activities, instead of having to spend a large amount of money to buy aircraft in the usual way.
However, we need to consider the risk when the profit does not cover the rental cost when financing the
fleet in the form of sale and leaseback will often lead to higher rental costs than other forms. Since this
fee is fixed, if the exchange rate fluctuates adversely, the cost will be even greater.

5. Identify the positive and negative impacts of the macro environment:

5.1. Impact of economic factors: inflation rate on the business of VietJet

- The Negative impact

The term "inflation" refers to a rise in prices, which over time results in a loss of purchasing power. The
average price increase of a selection of products and services over time can serve as a proxy for the rate
at which buying power declines (Fernando, 2022). The war between Russia and Ukraine deeply affected
the global economy, the world production and supply chains were heavily involved, including the aviation
industry. Impacts from outside, Vietnam is a highly open economy, so inevitably, import inflation through
the impact of increasing prices of fuel and world raw materials with delay is forecasted to start from the
third quarter of 2022 and last until 2023. This effect is not as simple as stopping flights to/from Russia
from Vietnam in particular. The prices of many strategic materials and supplies are still under great
pressure from the increasing trend in the world and the demand for investment and domestic
consumption when the economy recovers, such as petroleum, construction materials, fertilizer, etc.
fertilizers, animal feed, and tourism services. Transport and logistics costs increased due to the broken
supply chain not yet

fully recovered; along with the increase in raw material costs. Higher-than-expected fuel prices lead to
higher operating costs for airlines, which can drive up fares and reduce demand for air travel. Petroleum
is a strategic, important commodity, accounting for 3.52% of the total production costs of the entire
economy, accounting for 1.5% of total household consumption. According to calculations by the
authorities, a 10% increase in domestic gasoline prices will increase inflation by 0.36%.

Source: Vietnam.net

Supply shortages from Russia and Ukraine also drive up fuel prices, adding to the cost burden for VietJet
air. Since the beginning of the year, petrol prices have been adjusted 16 times and in the past year, petrol
prices have increased by 51.83%. It can be said that transportation is the industry most affected by the
"price storm" of gasoline. Some carriers have been forced to increase the

price of transportation services. The risk of high inflation in the world will have an indirect impact on our
country. The gasoline price storm also threatens the strong recovery of the air transport industry because
the price of jet fuel at the moment has doubled over the same period. The cost of fuel per flight has
skyrocketed to nearly 50% of the total operating cost compared with the usual 25% to 30%, causing the
airline to worry about not having enough revenue.
In addition, the air embargo leads airlines to choose longer routes, increased costs, and increased
pressure on the global logistics transport system and the price of goods. The risks of payment, ticketing,
and money transfer... with flight service providers in Russia are also not possible because of the
embargo. Therefore, Vietnamese firms cannot make payments from Vietnam and cannot maintain the
ability to exploit Russia.

- The positive impact.

Inflation does not always cause harm to the economy. When the inflation rate is moderate that is
between 2-5% in developed countries and below 10% in developing countries will bring some benefits to
the economy:

+ Stimulating consumption, and borrowing, customers have more travel needs, so the company's profits
will increase.

+ Adjusting the labor market.

Inflation allows real wages to fall even if nominal wages are held constant. Moderate inflation will allow
the labor market to reach equilibrium more quickly (Tobin, 1969).

5.2. Impact of technology factor on the business of VietJet

- Positive impact

The technological environment includes the development of basic scientific fields as well as the
development of products, processes, and materials that can affect an organization's operations. The level
of technological development in society or industry determines to a large extent what products and
services are created, and how equipment is used in the operational processes managed by the boss.
Looking back over 16 years of operation in addition to fierce competition

with Vietnam Airlines and airlines such as Jetstar, VietJetair's success is due to its constant innovation in
thinking and not hesitating to apply the benefits of modern technologies. Latest technology to serve
customers most comprehensively. Currently, VietJet owns a large number of new generation modern
fleets and is also the first to bring Airbus' latest Sharklett A320 aircraft to Vietnam. Build images from
Mickey Mouse from Pepsi soft drinks and big banks. Realizing that updating contact and exchanging
information by smartphone is a major trend among young users VietJet integrates deeply into Zalo so
that users can book check-in tickets and track schedules quickly and efficiently here. is also one of the
factors that bring about the strong boom of VietJet. Right from the construction of the operation plan,
VietJet has focused on investing and applying new technology in all activities from commercial services to
safety, flight management and operation management, technical management, and investment policies.
modern innovation with the latest technology trends to bring a comfortable and enjoyable flight
experience to passengers now has previously cooperated with Google to develop e-commerce
applications in cooperation with Amazon website services. The company's data storage improves the
quality of operation and service management. The company's ticketing system is developed and
managed by Intelisys (Canada) to manage the risk of credit card fraud detection and special transaction
verification on the internet.

-Negative impact

Given the limited capacity of airspace and airports, the aviation industry faces the challenge of meeting
the skyrocketing demand for air traffic. New types of flying operations, such as drones, commercial
spaceflight, and future personal aircraft, are making matters more difficult. Modern aviation systems
adapt dynamically and evolve continuously to meet the needs of real-time information sharing. But as
the system rapidly increases in complexity, VietJet is reaching its limit. Traditional automation cannot
handle such an explosion of information. Human perception and performance may need to be further
enhanced with the help of artificial intelligence.

6. Explain how the military conflict between Ukraine and Russia impacts Vietnamese company
business 

The conflict between Russia and Ukraine has significant, wide-ranging, and detrimental repercussions on
Vietnam as well as the global economy, trade, finance, global industry, and supply chains. The restrictions
and conflicts will make it difficult for Vietnam to purchase from and

export to Russia, and transportation costs would rise dramatically as a result. The currency rate is
additionally impacted. Vietnamese exporters' earnings and foreign money will be impacted when the
ruble declines. Particularly, it is becoming more difficult to source raw materials for the wood processing
sectors, which rely on wood imports from Russia and Ukraine. The economy is also dealing with inflation,
which will probably be made worse by rising gas and oil prices. Only approximately $1.5 billion worth of
fertilizers, iron and steel, coal, and agricultural items from Russia and Ukraine were imported into
Vietnam in recent years, claims Dragon Capital. While Vietnam exported approximately $2.4 billion worth
of clothing, electronics, and mobile phones. A single industry may likely experience considerable
disruption depending on the specific field. Russia's preferred tourism destination is Vietnam, which is
well-known. In other words, one of Vietnam's main tourist destinations is Russian. Specifically, Nha
Trang, Phan Thiet, and Phu Quoc are known to draw Russian visitors and even have restaurant networks
and commercial establishments that cater to this tourist demographic. However, up until now, a few
significant Vietnamese travel agencies had to momentarily stop serving this market. As a further blow to
Russian tourism, the national carrier Vietnam Airlines (Vietnam Airlines) has also suspended service
between Hanoi and Moscow as of March 25. One of the clients with strong financial standing is a group
of Russian tourists. The average amount spent by Russian visitors in 2019 was $1,600, more than the
$900 average for other international visitors, according to the Vietnam National Administration of
Tourism.

9.  Explain how strengths and weaknesses interrelate with external factors as after:
9.1 Describe facts or findings of business decision

On February 16, the new generation airline VietJet and Lufthansa Technik Group signed a cooperation
agreement to deploy the application of AVIATAR's Technical Logbook (AVIATAR's Technical Logbook) at
the Singapore International Airshow. (Minh, 2022)

Vietjet và Tập đoàn Lufthansa Technik ký kết hợp tác triển khai ứng dụng Nhật ký kỹ thuật điện tử của
AVIATAR (AVIATAR’s Technical Logbook)

The AVIATAR application will be integrated across the airline's entire fleet, replacing the manual
recording and updating process with the previous paper logbook, making data processing faster and
more accurate. Specifically, AVIATAR's Technical Logbook allows for complete aircraft maintenance and
flight logging before, during, and immediately after landing as operational and technical data streams are
seamlessly integrated with systems. VietJet's existing system. The application's innovative features and
enhanced infrastructure will also help shorten turn-around times, increasing technical reliability and
operational safety for aircraft. With about 35 subsidiaries and affiliates, Lufthansa Technik Group is one
of the world's leading providers of aircraft engineering services. Internationally certified as a
maintenance, manufacturing, and design organization, the company now employs more than 22,000
employees. Lufthansa Technik's field of activity includes services for commercial and special purpose
aircraft, engines, components, and landing gear in the areas of digital fleet support, maintenance, repair,
overhaul, adjustment, completion, and transformation as well as manufacturing innovative products in
the cabin.

9.2 Explain the business decision is consistent with the strengths

From the early days of operation, VietJet has been at the forefront of electronic air ticket applications
instead of paper tickets, leading in e-commerce applications. In 2022, relying on strengths in technology
VietJet will continue to increase the application of high technology, automation, creativity, and
innovation; promote digital business in air transport, freight, and logistics business; strengthen and
expand the business of aviation services such as ground services, training services, financial services,
project investment, and other aviation services. The signing of a contract with Lufthansa Technik group
makes the management of technical data, and the coordination between the flight crew and the airline's
technical maintenance team become smoother and more efficient. VietJet has applied many aeronautical
engineering management technology systems to help it manage maintenance and optimize its fleet with
1,200,000 safe flight hours, over 90% on-time rate, and reliability. technique reached 99.64%. The airline
is rated 7/7 stars by Airline Ratings for safety and has been voted the safest low-cost airline in the world
continuously since 2022 (Anon., 2022)

9.3 Explain the business decision overcomes the weaknesses

Vietnam Airlines and VietJet are the two airlines with the latest return flights, 1,491 flights, and 2,287
flights respectively. There are 46-70 late flights every day. As for Bamboo Airways and Vietravel Airlines,
the number of delayed flights is less (Trung, 2022). Cooperation with Lufthansa Technik to enhance the
application of technology in VietJet's operations. This is the next outstanding milestone in the digital
revolution from the cockpit to maintenance and extends to all blocks in the company. The innovative
features and enhanced infrastructure of the application also It will help shorten the turn-around time of
the aircraft, increase the technical reliability and safety of the aircraft, and reduce flight delays.

9.4 Explain how business decisions can deal with the impacts opposed by the macro environment.

Factors of the macro environment often have an impact on business operations, including both negative
and positive aspects. Demographic factors influence the decision to pay for shopping and transactions,
during the pandemic, aspects of lockdown, people do not ask for purchases, they only care about their
health and nutrition situation maintenance to protect themselves, leading to many difficulties for the
aviation industry, including VietJetair. However, based on the above
analysis and experiments, it only takes one action to change technology successfully in resolving the
influence of factors in the macro environment.

Given the current population situation in our country, VietJet air - a low-cost airline that focuses on
young and dynamic customers and those who fly for the first time is the right middle-income group.
Customers are proficient in using technology and the internet such as smartphones, email, social
networks, online payment forms, Visa, and Mastercard, and have a hobby of exploring and traveling
often. With a reasonable cost, VietJet's customer groups are mostly those who like to innovate and like
to connect. Technological change has had the most direct impact on the airline business, it not only
ensures safe flights but also involves many other activities in the air transport business. The first is
aircraft manufacturing technology, which is the most important factor in the success of airlines in
producing safe, high-quality, fuel-efficient aircraft in the economy. medium and large-sized businesses for
flights requiring high technology. The second technology affecting the air transport business is the
internet and computer networks, and the development of communication and data technology helps
airlines operate safer flights at a faster rate. With the rapid development of data communication
technology in recent years, Vietnam has made important steps to access world communication
technology with the number of 21 million internet users now opening the door to the world firms
conduct their buying and selling activities over the internet. Applying advanced technology is the
company's breakthrough with competitors in the market.

11. Conclusion

This essay discusses a company's internal and external environments; the example used here is the
VietJet Joint Stock Company. The company's SWOT analysis outlines the company's strengths,
weaknesses, opportunities, and threats as well as the impact of the macro environment on VietJet's
development focus. It is essential to reevaluate the analysis of an entrepreneur's internal and external
environments in general, and VietJet is particularly significant because it has an impact on business
decisions that are directly related to the company's sales, profit, and development. Strategic managers
must therefore use caution while choosing the optimal course of action for their organizations.

References

Anon., 2022. Airlines and Safety Ratings, s.l.: Airlines ratings.

Fernando, J., 2022. Inflation: What It Is, How It Can Be Controlled, and Extreme Examples, s.l.:
Investopedia.

Minh, H., 2022. Vietjet bắt tay Lufthansa Technik số hoá quy trình thông tin kỹ thuật tàu bay, s.l.: Tiên
Phong .

Tobin, J., 1969. Inflation and Unemployment, s.l.: American Economic Review.

Trung, C., 2022. 5.602 chuyến bay bị chậm/tháng, vì sao?, s.l.: Tuổi Trẻ Online.

Vietnam National Administration of Tourism Available at: https://vietnamtourism.gov.vn/

VietJet Air – Annual Report 2021 [online] – Available at: https://ir.vietjetair.com/File_Upload/financial-

information/annual-reports-root/annual- reports/VJC_BCTN_2021_Signed_002.pdf - Accessed: 4 August
2022