1. Introduction 2. 3. Competitive environment (STEP)
Environmental shifts constantly affect companies and their operations. Therefore, company need to develop strategic or dynamic capabilities in order to advantageously compete in the face of these far reaching changes that emanate from the environment. For this reason, the leaders must understand the interdependencies between their organization and the external environment. Competitive advantage, which allows an organization to deal with market and environmental forces better than its competitors, can be achieved only by continuously scanning the environment for opportunities, and taking effective action based on what it learned.
PEST consists of all the background conditions in the external environment of an organization: economic, social, political and technological factors _ which forms a general context for managerial decision making. 4.1. Economic
Economic factors play a leading role and decisive influence on the production business of Vietnamese coffee industry, inside, the developing state of the economy (stable growth or recession) has the strongest impact.
In global economic conditions and domestic economy had many difficulties after the financial crisis and world recession, Vietnam's economy had escaped early the decline, gradually recovered and grew rapidly starting in 2010. In detail, GDP of Vietnam in the first 6 months of 2015 increased 6.28% compared to the same period in 2014. This is the motivation to encourage Vietnam coffee industry development.
Beside, the high inflation rate of Vietnam is always the risk to the business activities; it caused uncertainties and led to currency devaluation which caused no less difficulty for business, especially in material procurement activities. However, in recent years, inflation has been curbed create a quite stable economy.
Furthermore,