Updated PEST Analysis
Political Factors
• The first political factor that we
have to face is the opening hours in
Germany. It’s really different from
Vietnam where coffee shops can
open 24/7 if they want, but coffee
shops in Berlin can only open from 6
am to 8 pm from Monday to Friday
and from 8 am to 8 pm on Saturday
and Sunday. In addition, some
shops are even closed on Sunday
(Mpifr). Therefore, when operating
in Berlin, we will have to follow the
opening hours by opening at 8 am
to 8 pm from Monday to Sunday or
otherwise we will have to receive
penalties from the German
government.
• We don’t need a partner in order to
open a business in Germany if we
are foreigners. The VAT in Germany
is about 19& so we will have to add
Economic Factors
• Germany has the fourth largest
economy in the world, and it
indicates that the economy activity
here is strong and the living
standard in Germany is high thus
people here will have a more stable
life compared to other poorer
countries. The minimum wage in
Germany is about $9.47/h (4), so
the salary in Germany would be
much higher compared to
Vietnam’s.
• In order to earn funding from the
Vietnamese government, we will
write a grant application that
includes detailed marketing and
business plan. Furthermore, after
some research, we found out that
the interest rate in Berlin (0% in
2016) is much lower than the
interest rate in Vietnam (6.3% in
2016) (TradingEconomics).
Therefore, we will borrow money
from the German banks, when
it to whatever we sell or serve to
the customers (HowToGermany).
• Trung Nguyen will have to register
with the German government in
order to operate in this country. We
also need to register the intellectual
property like patents and trade
marks so that our brand name will
not be copied by anyone.
• For the employment laws in
Germany, according to Wilmerhale,
German employees must have
written employment contracts that
reflect the key aspects of the
employment relationship such as
gross salary and benefits, vacation,
working hours and starting day of
employment.
needed, for funding because of its
low interest rate.
• The corporate tax rate in Germany
is quite steady over the past 5
years, from 29.4% in 2011 to
29.65% in 2016 (TradingEconomics).
The higher the tax rate, the lesser
the profits that we can earn, but by
looking at these statistics, we won’t
have to worry that the tax rate will
increase in a sudden way and cause
a lost for us.
Social Factors
• There are about 3,5 million people
in Berlin, and it’s also the capital
city that attracts the most tourists
in Germany. The more people come
to Berlin, the higher the chances
that we can attract more customers
and increase sales. Also, there are a
lot of Vietnamese citizens, about
40,000 people, who live in Berlin so
there will be a high chance that they
will support their local brand
(Wikipedia).
Technological Factors
• One third of the Germany
population uses the internet once a
day, and 75% of them have at least
one social media account
(Extradigital). Furthermore,
research has shown that the top
social media networks in Germany
are Facebook, Google+ and
Instagram (TypicallyGerman), so we
will use these social media to
promote our brand. Facebook has a
review function where customers
• The Germans consume more coffee
than water and beer, and 86% of
them drink coffee daily
(JordanPiano, 2015). The coffee
culture in Germany is really
different compared to Vietnam’s
culture. In Germany, they tend to
order drip coffee and cappuccino
with cream. The Germans are also
reluctant to try new types of coffee,
and so they want to stick to their
old coffee styles (TypicallyGerman).
Therefore, we will have to change
our menu by adding new products
to adapt to the new environment.
• Difference in language could also
affect our business. The main
language spoken in Berlin is
German, and that means we will
have to apply German into
everything like hiring workers that
can speak fluent German and also
changing the slogan and menu into
German. However, we’ve decided
to keep our brand name, Trung
Nguyen, because our brand is one
of the most popular coffee shops in
Vietnam and we also have a lot of
coffee chains in 60 other countries.
Therefore, we believe that keeping
the original brand name will help us
can write feedback, so the admin of
the page can see whether they are
happy with the products or services,
and we could use this tool to
improve our performance. We will
post important and detailed stuff in
Facebook and Google+ in German.
While Instagram is where we’re
going to post beautiful pictures of
our coffee shop, and there will also
be a hashtag like
#TrungNguyenBerlin in every posts
in order to distinguish Trung
Nguyen in different countries.
• There will also be a German
language selection in the official
website of Trung Nguyen so that
German customers can sign in and
shop online products such as
drinkware or coffee and tea bags
using their credit cards.
• Germany’s infrastructure is a highly
transportation of goods and
passengers, so we won’t have to
worry when importing raw
materials from Vietnam to Berlin
because the logistics industry in
Germany is extremely reliable
(Gtai). Also, German electricity
to have a competitive advantage
against the other Vietnamese
competitors in Berlin, and to also
attract customers in Berlin that
have come to Trung Nguyen in
other countries that we are located
in.
reliability remains at a high level,
and power outage might only
happen once every four years
(EnergyTransition). This means that
our business won’t have to worry
that there will be a black out
happens frequently.
• Our customers can pay for their
products bought in Trung Nguyen
by using credit cards, so it will be
more comfortable for them if they
don’t like to use cash.
Mission Statement
Trung Nguyen is committed to please even the most difficult customers by offering diverse
