It is clear that every organization is influenced by external elements such as politics, economy, society and technology which are general called PEST. Lam Yen Thanh Company is not an exception. In this report, PEST will be examined in order to find out how they influence the company and its stakeholders.
II. PEST Analysis
The most important change in politics is the event when Vietnam joined WTO in 2006. By joining in WTO, the tax for exporting and importing has decreased recently. Moreover, the exporting and importing in Vietnam would be more advantageous because WTO would treat fairly and help small countries protect their rights and have their voice heard. In order to join in WTO, by applying the theory “Adapting to environment/Contingency” (Morgan G 1998), Vietnam has to change some trading laws to fit with the trading laws in the world. This change can attract many investors as well as competitors to Vietnam. For these reasons marine transportation has gotten a lot of benefits from this as well as has more chances to develop. As O’Connor and McDermott stated in Cause and Effect theory, marine shipping services companies can also take advantages too. For example, with low importing tax, the some kind commodity such as Electrics would be transported directly to Vietnam instead of being transported to a intermediate country like Singapore. Therefore, Lam Yen Thanh Company’s clients such as An Giang exporting and importing company would get more profit, and as a result the company also could earn more profit too.
On the other hand, joining WTO also means that all Vietnamese companies have to join fair and severe playground. In order to not to be left behind, Vietnamese manufacturers including Lam Yen Thanh’s clients ought to increase their quality and quantity of their products to be able to compete with other countries’ ones in order to export more commodity. Applying Cause and effect theory (O’Connor and McDermott 1997),...