ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 18: Global Business Environment (530)

Submission date Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Nguyễn Hưng Nguyên Student ID GBS18656

Class GBS0802 Assessor name

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 I. Contents
II. Introduction: ......................................................................................................................................................... 5
III. FANUC: .............................................................................................................................................................. 6
1. Products: ........................................................................................................................................................... 6
2. History: .............................................................................................................................................................. 7
3. Vision, mission, strategy: .................................................................................................................................. 8
a) Vision :........................................................................................................................................................... 8
b) Mission: ......................................................................................................................................................... 8
c) Strategy: ........................................................................................................................................................ 8
IV. Opportunities for globalization:........................................................................................................................ 8
3.1 YIP model: ............................................................................................................................................. 8
a) Market drivers: ..................................................................................................................................... 9
b) Costs drivers:......................................................................................................................................... 9
c) Competitive drivers:............................................................................................................................ 10
d) policy driver: ....................................................................................................................................... 10
3.2 SWOT model: ...................................................................................................................................... 10
1. strength:.......................................................................................................................................... 10
2. weakness:........................................................................................................................................ 10
3. opportunity: .................................................................................................................................... 10
4. threat: ............................................................................................................................................. 10
3.3 PESTEL model: ..................................................................................................................................... 11
i. Political:....................................................................................................................................... 11
ii. Economic: .................................................................................................................................... 11
iii. Social: .......................................................................................................................................... 11
iv. Technology: ................................................................................................................................. 11
v. Enviroment:................................................................................................................................. 11
vi. Legal: ........................................................................................................................................... 11
3.4 FANUC's globalization in Vietnam: ..................................................................................................... 11
V. Referencer: ......................................................................................................................................................... 14
 II. Introduction:
Globalization is not a new phenomenon, but on the contrary, appeared in the fifteenth century and took
place more strongly in the late nineteenth century. Vietnam has begun to open up and integrate into the
regional economy. Thanks to the policy of innovation and opening up for nearly 20 years, Vietnam has
obtained great achievements in all aspects of social life. In the near future, many technology companies
of big companies such as the US, Korea, and Japan will move factories from China to Vietnam. Apple will
move the airport manufacturing plant from China to Vietnam, and the factories of companies like Sharp,
Kyocera, Google, and Microsoft. Therefore, this will be a good opportunity for FANUC to relocate its
factory to Vietnam.

III. FANUC:

1. Products:
FANUC products are mostly ROBOT products and other automatic electrical equipment.

(Products - FANUC CORPORATION, 2020)

 2. History:

•The first NC and SERVO systems in the Japanese private sector have been successfully developed.
1956

•The first commercial FANUC NC was shipped to Makino Milling Machine Co., Ltd.
1958

•The first continuous path NC in Japan was developed..

1959 •The first electro-hydraulic pulse motor was developed

•The first all-IC type NC was developed.

1966

•The first commercial DNC in the world was completed.

1968

•FUJITSU FANUC LTD was founded and became independent from FUJITSU LIMITED.
•CNC was introduced.
1972 •NC drill was developed.

•ROBOT is developed and installed at FANUC factories.

•Dr. S. Inaba, FANUC President was awarded the 6th Annual Memorial Award by the American Association of NCs "Joseph
1974 Marie Jacquard".
•The production and sale of DC SERVO MOTOR was started under the license GETTYS MANUFACTURING CO., INC.
•Dr. S. Inaba, President of FANUC was awarded a Technical Merit for SME.
•The Bulgarian People's Republic government has decorated Dr. S. Inaba with "Degree 1 of Madarski Konik".
•Opened the Automation Systems Laboratory.
1977 •FANUC USA CORPORATION was established.
•Started commercial production and shipping of ROBOT (ROBOT-MODEL 1).
•The Central Technical Center, the Robot Assembly Factory, and the Production Technology Laboratory were constructed
in the Headquarters area.
1986 •The Memorandum of Agreement was signed with General Electric to establish a joint venture company for factory
automation.
•FANUC VIETNAM LIMITED was established.
•The local corporation was established in Russia. ("FANUC AUTOMATION" LLC)
•On May 20, His Imperial Highness the Crown Prince visited FANUC.
2003 •The commercial production of intelligent ROBOTs started.
•The commercial production of 30i Series CNC started.
• The joint venture with the General Electric Company was settled and the FA activities of the joint venture in the Americas transferred to FANUC America.
• Started commercial production of Delta ROBOT, a Parallel Link Robot.
2009

•FANUC ACADEMY was constructed.

2018

(FANUC - FANUC CORPORATION, 2020)

 3. Vision, mission, strategy:

a) Vision :

The three businesses FA, ROBOT and ROBOMACHINE were merged with SERVICE as "one FANUC", aiming
to deliver innovation and guarantee production sites around the world.

b) Mission:

The three businesses FA, ROBOT, and ROBOMACHINE were merged with SERVICE as "one FANUC",
aiming to deliver innovation and guarantee production sites around the world.

c) Strategy:

FANUC wants to open a technology school to train the best engineers. And FANUC wants all continents
to have a FANUC factory presence called the 'FANUC global network'.

IV. Opportunities for globalization:

3.1 Concept 4 demention:
In tern of economic, economic globalization is the link between countries in the world and the trade
system that promotes multinational companies or non-governmental organizations. Multinational
companies operate in many countries/regions and capital is liberalized. For example, Apple has global
shareholders. Multinational companies provide jobs and training in developing countries, which helps
improve labor standards in Vietnam, Thailand, India and other countries. Countries that join globalization
will have access to newer technologies and methods, which will help improve the working conditions of
their people. At the same time, the labor costs of companies engaged in production and commercial
activities in developing countries are lower, and they can use the untapped resources here. In addition,
customer choices have been increased in the process of business globalization. A condition for countries
to join globalization is to accept agreements including ASEAN, WTO, International Monetary Fund and
many other agreements.

Socially, information travels almost in real time, with the coherence and interdependence of events and
their consequences. People also move, mingle, and mingle with different societies
Financially, can be linked to the rise of the global financial system with international financial exchanges
and currency exchanges. The stock market, for example, is a great example of a financially connected
global world because when one stock market falls, it negatively affects other markets as well as the
entire economy's health.

In terms of culture, it refers to the infiltration of cultures, so that the nation adopts the principles,
beliefs, and attire of other countries, losing its unique culture to a Super unique culture, globalization.
For example, each different country has different cultures, if you want to set up a branch to a certain
country, the company should learn carefully and carefully about that country's culture to avoid
unfortunate mistakes. (What is Globalization? Examples, Definition, Benefits and Effects, 2020)

3.2 YIP model:

A) MARKET DRIVERS:
Currently, the industry of the world has begun to change human power into machines, in order to reduce
costs for workers, increase productivity and efficiency in production. After a strong outbreak in China,
and taxes for manufacturers when they set up factories here were too high, factories simultaneously
pulled out of China and moved to Southeast Asian countries, especially Vietnam. So they need a
company that makes automatic machines and reliable ROBOT when setting up new factories. And
FANUC is a company specializing in the manufacture of these machines, but when these companies want
to buy these machines they have to spend a sizable amount of money on transportation and taxes upon
entry, so FANUC should put a factory in Vietnam, to reduce costs and facilitate transportation.

B) COSTS DRIVERS:
Import and export taxes and license taxes are the biggest price constraints in each region. Currently,
China's corporate income tax has increased to 25% of total income, which adversely affects FANUC's
income. Developing countries in Southeast Asia cannot use the company's products. Therefore, if FANUC
relocates its production plant to Vietnam, it will be easier to reach customers and increase sales in
Southeast Asia than manufacturing in China. In terms of labor costs, Vietnam is considered to have low
labor costs.

(Nhiều nước duy trì thuế thu nhập doanh nghiệp ở mức cao, 2020)
 C) COMPETITIVE DRIVERS:
Currently in Vietnam, there is no company that produces ROBOTs, and other automated equipment. If
FANUC moves its factory to Vietnam, it will be the monopoly company, and it will be easy to transport to
Southeast Asian countries.

D) POLICY DRIVER:
From global trends and the reality of Vietnam, we can argue that active and positive integration is the
best way to take advantage of opportunities and overcome globalization challenges. The Vietnamese
government is open to all companies that have the opportunity to participate in the country's economy.
Vietnam is cutting taxes to create favorable conditions for domestic and foreign companies. FANUC is a
leading company of automatic marking machines and robots. This is accepted and supported by Vietnam
when the world is automated.

3.3 SWOT model:

1. STRENGTH:
In terms of advantages, FANUC is a company with a history of producing automatic machines, ROBOT,
and especially FIELD systems. And there are skilled engineers and there is a school to train FANUC
engineers in the future. They are a leading company in the manufacture of these machines and systems.

2. WEAKNESS:
FANUC's weaknesses, they do not have factories in Southeast Asian countries and especially Vietnam, so
transportation will be more difficult and cost more, and import into these countries is also difficult. The
cost of the product is high and requires regular maintenance.

3. OPPORTUNITY:
Currently, the Vietnamese government is encouraging the use of automatic machines when labor costs
in Vietnam are gradually increasing. And this is an extremely good opportunity for FANUC to move its
production plant to Vietnam. Vietnam is one of the developing countries and has many factories of big
companies like Apple, Sharp, .... And they will complete the 'FANUC global network'.

4. THREAT:
Currently, the Vietnamese government is encouraging the use of automatic machines when labor costs
in Vietnam are gradually increasing. And this is an extremely good opportunity for FANUC to move its
production plant to Vietnam. Vietnam is one of the developing countries and has many factories of big
companies like Apple, Sharp, .... And they will complete the 'FANUC global network'.

3.4 PESTEL model:

i. Political:
Although this is an emerging market in Vietnam. But for a stable politics, the FANUC will easily penetrate
the market in Vietnam

ii. Economic:
Vietnam is a developing country, so the market is extremely refundable for FANUC when setting up
factories here. Few companies compete, so FANUC can monopolize the production of automation
machinery in Vietnam.

iii. Social:
Increase the percentage of enterprises using automatic machinery in Vietnam. And motivating factories
in Vietnam to grow, improve the skills of Vietnamese engineers.

iv. Technology:
FANUC will be the leading technology company in Vietnam. When businesses use the company's
products, it will help future products develop and improve.

v. Enviroment:
To treat the wastes discharged into the environment, FANUC needs a standard waste treatment system.
FANUC technology is more and more developed to be environmentally friendly.

vi. Legal:
When FANUC sets up factories in Vietnam, the company will be protected with patent rights and
stamped against counterfeiting.

3.5 FANUC's globalization in Vietnam:

China is a boom in technology. So there will be a lot of factories belonging to companies that specialize in
the production of automated machines. FANUC will have a lot of competitors, moreover, China taxing
businesses 25% per year will greatly affect FANUC's finances. There are grounds to believe that global
supply chain shifts depend on the US strategy of holding China in the long run, not merely by the trade
 war or Covid-19 (Trung Quốc “chảy máu” đầu tư nước ngoài, 2020). Hence China is no longer a good
market for the FANUC.

Vietnam is now one of the most politically stable countries in the world, and Vietnam has been
integrating with the world economy, so it will be easy to accept new technologies. Due to the extensive
economic integration, the Vietnamese economy was heavily affected by the COVID-19 pandemic, but
with effective measures, it was not as badly affected as other countries. Macro and the financial
economy are stable with GDP growth estimated at 1.8% in the first half of 2020, expected to reach 2.8%
for the whole year. This shows that Vietnam is a country with a stable economy and possibly a 'dragon of
Southeast Asia' in the future (Tổng Quan về Việt Nam, 2020) . As a developed country, Vietnam is in
desperate need of new technologies from the world and FANUC is one of the most suitable companies
when setting up factories in Vietnam. When FANUC sets up its factory in Vietnam, the company will be
the exclusive manufacturer of machinery and equipment here, and moreover, because it is a Southeast
Asian country, FANUC will easily export and transport. to neighboring countries such as Laos, Thailand,
Malaysia, etc. Therefore, Vietnam is one of the most suitable schools for the current FANUC.

3.6 The complexity of strategic challenges faced by organizations:

3.6.1. International trade law
According to Georgetown Law, international trade law encompasses the rules and customs governing
trade between countries. The two main areas of international trade in domestic are trade defenses
and/or controls. export sanctions. A trade remedy is a tool used by the government to take corrective
action against imports that cause serious damage to the domestic industry due to unfair foreign pricing
and/or subsidies the foreign government. (Law et al., 2020)

3.6.2. Economic integration

Economic integration is an arrangement between countries, often involving the reduction or removal of
trade barriers and the coordination of monetary and fiscal policies (What Is Economic Integration?,
2020). The international economic organizations that Vietnam has joined are the WTO (World Trade
Organization) , FTA VietNam_JAPAN (The Agreement between Vietnam and Japan for an Economic
Partnership (VJEPA)), ASEAN (Association of Southeast Asian Nations), etc.

When FANUC sets up factories in Vietnam, the company will be exported to the countries in the
organization in which Vietnam is a participant. The FANUC will be easier to transport and the cost will be
 lower, and the political hurdle will be less. This is a very favorable condition for FANUC when the factory
is located here, so that FANUC can monopolize the production and distribution of automatic machines.

3.6.3. Trade liberalization:

Trade liberalization is the elimination or reduction of restrictions or barriers to the free exchange of
goods between countries. These barriers include tariffs, such as taxes and surcharges, and non-tariff
barriers, such as licensing rules and quotas. FANUC reduces political barriers, transportation costs, etc
when setting up factories in Vietnam. (Trade Liberalization Explained, 2020)

3.6.4. Global Supply Chain:

A global supply chain is a network that can purchase and supply goods and services across multiple
continents and multiple countries/regions. The global supply chain involves the global flow of
information, processes and resources (Skills, Management and Chains, 2020).

FANUC was called the world's most innovative company recognized by Forber in 2013, in which it
determined that the calculation of a company's value plus expected growth is driven by technology and
New products will identify the most innovative companies. And a key factor used to compile this list is
each company's commitment to R&D.

3.6.5. Sourcing:
Experienced engineer team with comprehensive knowledge of FANUC products such as FA, LASER,
ROBOT and ROBOMACHINE products, quickly responding to customers' inquiries and service requests.
When service is requested, skilled service engineers from the nearest facility are dispatched to the
customer's site. FANUC has worldwide service offices in more than 260 locations. We recommend
preventive maintenance to reduce unwanted failures and production downtime. Preventive
maintenance will detect faults and faults and take measures before failures so that the machine can be
used for a long time and stably. The FANUC prepares to assist with preventive maintenance such as
periodic checks, overhaul and rinsing and PCB inspection. (SERVICE - FANUC GLOBAL, 2020)

V. Conclusion:
China has been under so much upheaval recently, and is no longer considered the factory of the world.
And Vietnam is a reimbursement place for FANUC when the company placed the device here.
VI. Referencer:
 Fanuc.co.jp. 2020. About FANUC - FANUC CORPORATION. [online] Available at:
<https://www.fanuc.co.jp/en/profile/index.html> [Accessed 1 December 2020].
 Fanuc.co.jp. 2020. Products - FANUC CORPORATION. [online] Available at:
<https://www.fanuc.co.jp/en/product/index.html> [Accessed 1 December 2020].
 Thoibaotaichinhvietnam.vn. 2020. Nhiều Nước Duy Trì Thuế Thu Nhập Doanh Nghiệp Ở Mức Cao. [online]
Available at: <http://thoibaotaichinhvietnam.vn/pages/nhip-song-tai-chinh/2019-07-24/nhieu-nuoc-duy-tri-
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<https://youmatter.world/en/definition/definitions-globalization-definition-benefits-effects-examples/>
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 World Bank. 2020. Tổng Quan Về Việt Nam. [online] Available at:
<https://www.worldbank.org/vi/country/vietnam/overview> [Accessed 2 December 2020].
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[Accessed 2 December 2020].
 Investopedia. 2020. Trade Liberalization Explained. [online] Available at:
<https://www.investopedia.com/terms/t/trade-
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 Fanuc.com. 2020. SERVICE - FANUC GLOBAL. [online] Available at:
<https://www.fanuc.com/service/index.html> [Accessed 2 December 2020].
 Skills, T., Management, S. and Chains, G., 2020. Global Supply Chains | CIPS. [online] The
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<https://www.cips.org/knowledge/procurement-topics-and-skills/supply-chain-
management/global-supply-
chains/#:~:text=Global%20supply%20chains%20are%20networks,and%20resources%20across%2
0the%20globe..> [Accessed 2 December 2020