1.Introduction about Lotteria Lotte Group was founded in Japan in June 1948 with the intention of offering a variety of global goods and services. In order to provide its customers with a mordenized food industry and a high-standard lifestyle, Lotte Co.Ltd. expanded its business to Korea in 1967 and established Lotte Group. Currently, Lotte has offices in more than 50 countries, operates in a number of different industries, and employs over 4,700 people. The Lotte Group continues to excel in the food and beverage industry, and it has seen steady growth worldwide, particularly in Japan, China, Korea, Russia, and Vietnam. Lotte began selling food and beverages in the Vietnamese market.However, it was not until December 2008, that Lotte began to invest in the Vietnamese market, with the first establishment of Lotte Mart in Ho Chi Minh City. In Vietnam, with KFC, McDonald's and Jollibee.Lotteria became major player in this fast food sector.On the company's website, Lotteria is currently leading the fast food industry. With more than 210 restaurants in 30 provinces and cities. With the similarity to the dinner culture as well as the Asian taste, Lotteria Vietnam quickly attracts the taste of Vietnamese people because of the outstanding taste of the modern Korean fast food. General information about Lotteria: Vision: To become the top 1 franchising company in Asia Mission: To provide trusted and preferred high quality products and services to enrich the lives of our customers. Business philosophy: Lotteria's production and business process in Vietnam and other countries around the world with the motto QCST: Q-(Quality) : high product quality C-(Cleanliness):Clean and Plesant restaurants S-(Service): Service, good customer service T -(Time):Quick and courteous service Core value of Lotteria: Beyond Customer:Lotteria brings value that not only satisfies the needs but also exceeds the expectations for customers Challenge:Focus on the essence of work and achieve bigger goals through constant challenges.Lotteria constantly improves work to achieve goals with a determination to never give up. Respect: Lotteria aims for a community built on trust by communicating, respecting different points of view and adhering to common principles Originality:Lotteria responds with agility to change to create original and unique, through collaboration that crosses boundaries, breaking the boundaries of innovation. 2. The impact and influence of macro environment on Lotteria and its strategies. 2.1.PESTLE framework of Lotteria The PESTLE model is used to analyze external environmental factors that may affect the operations and strategies that Lotteria is pursuing and identify opportunities or threats to the company. Politics: Political influences include government decisions, regulations, and the amount to which the government intervenes in the economy. Political variables play a role in determining how to allocate resources for economic activities and how to resolve conflicts. Furthermore, political variables influenced the amount to which the government and its policies affect organizations and specific industries. We may name a few political elements that influence the economy and certain industries, such as stability, bureaucracy, tax policy, trade policy, amount of corruption, trade control, and so on. Corruption level:The term Corruption Perceptions Index (CPI) refers to an index that scores countries on the perceived levels of government corruption by country. Scores range from zero to 100, with zero indicating high levels of corruption and 100 indicating low levels.Vietnam's CPI in 2021 is 39/100 points, up 3 points from 36/100 points in 2020, ranking 87th out of 180 countries and territories. This is also the highest CPI of Vietnam in the period 2012-2021. In these 10 years, in general, Vietnam's CPI has improved from a low of 30 points in 2012 to 39 points in 2021. Although only a slight improvement in CPI, it is still a relatively small change. This implies that the level of corruption in Vietnam is still relatively high, and there are still quite a few corruption cases. Government authorized by Minister of Public Security To Lam to sign a report to the National Assembly stating that 523 crimes related to corruption and position were detected in the year, an increase of 40.97%. Many highranking people still take advantage of authorities to negative influence and disrupt production business activities. In order to continue working, businesses must pay a fee for that group of people.Beside,some businesses take advantage of opportunities,palm and collude with trusted groups of powerful people to obtain a business license even though it does not meet the criteria, especially in the fast food sector, which is also common, inadvertently creating a new competitor to the fast food chain Lotteria. Tax policy: According to the provisions at point a, clause 1, Article 3 of Decree 92/2021/ND-CP, food service is one of the services eligible for VAT reduction of the state. Catering services have a reduced VAT rate of 8%. This helps Lotteria to have more useful sources of money to maintain, continue and pay in the field of business activities of the group so that it is effective. Economics: Economic factors can directly affect the macro economy, as well as Lotteria's performance and profitability. Economic factors include Below, there are factors that can affect to the company's future business performance: Market: The fast food business market comes in many different forms, including pizza, hamburgers, foodservice, bakeries, and ice cream. Experts say that, of these, the restaurant chain specializing in chicken dishes is one of the largest segments in terms of revenue. KFC is the most frequented fast food chain in Vietnam. According to a survey conducted by Q&ME in Ho Chi Minh City. In Ho Chi Minh City in 2020, 45% of total respondents said that they regularly visit KFC restaurants. Next is South Korea's Lotteria with 17% of the 600 respondents, followed by the US chain Pizza Hut and McDonald's, with 6% respectively. The top reasons for customers to eat at KFC are good food (66%), convenient location (63%), family-friendly and young (60%), and varied menu (56 %). In terms of number of stores, Lotteria leads with 151, followed by Jollibee with 115, according to a study by Statista Research released at the end of 2020. When it opened its first store in Vietnam in 2014, McDonald's attracted 20,000 customers and collected VND1.5 billion ($70,000) in revenue in the first two days. At the time, McDonald's had an ambitious plan to open 100 stores within a decade. However, six years on, there are only 23 stores now. Through the above parameters, we can see that Lotteria is one of the brands that owns the largest number of stores in Vietnam. This has created a great competitive advantage, because the number of stores is distributed throughout the country easily spreads the image of the business, reaching the target customer group Demand Vietnam's fast food market has shown signs of stronger growth in recent times thanks to the rise of ordering and delivery apps. A Q&Me survey noted that, in 2020, “Now” is the most popular app for ordering fast food online, with 24% of respondents choosing it, followed by Grab Food (20%). ). 87% of respondents ordered online from fast food chains, with KFC being the most popular, with 52%, followed by Lotteria (30%) and Pizza Hut (21%). The pandemic has also had no significant impact on online orders from fast food chains. “Fast food chains, especially those that can be ordered online and delivered to work or home, have been less affected in some countries, and sales have actually increased, as they are considered 'essential' businesses,” Mr Ngo said. However, a large number of consumers in the market are following the trend towards nutritious and healthy foods, so they are also shy with fast food products. With the demand for fast food still,this is an opportunity for the brand to target the target market, attract more customers, expand market share and generate revenue. Besides, the company still has to take measures to minimize the risk of impact when The growing trend of healthy food trends is causing business operations. Social: In VietNam, MillenialZ and Gen Z account for 47% of the country's population. These customers are fast food lovers and also the market segment targeted by fast food restaurants including Lotteria. This group of customers is also very difficult because they have little trust and loyalty in the brand and are ready to change to an alternative group if they feel offended. In addition, the current youth group has changed their habits. habits, buying behavior, they have changed the traditional way of buying goods offline to online. With mobile phones, they only need to place orders such as books, food, drinks from apps, transportation. However, there are still customers in this group who come to the store directly to make purchases and use services. This is also an opportunity and a challenge to ask Lotteria,need to perform well on two offline channels, directly at the store and online to satisfy this fastidious customer group. Technology: Technology trends that are increasingly being applied and continue to thrive in Vietnam include 5G technology, IoT, cloud computing, artificial intelligence (AI), big data (Big Data), experience. augmented reality (AR) and virtual reality (VR). Lotteria can use these new technologies to conduct market research, analyze and store service experience information from customers in a way quickly and reduce costs with high efficiency. From there, businesses can devise strategies for new product lines, and at the same time can improve quality and experience for customers. Ecological: The fast food industry is having an adverse impact on the environment in VietNam.Garbage from take-away food and drinks accounts for 44% of plastic waste found at sites in Vietnam, according to the World Bank (WB).Vnexpress e -newspaper cited a WB report showing that plastic waste across both river and coastal sites Vietnam came mostly from take-away-related sources. Currently, Lotteria is paying attention to environmental issues, especially using disposable packaging that is mainly made from paper. However, the company still uses plastic bags to store fast food takeaways, this is still considered. mentioned as harmful to the environment and may negatively affect Lotteria's reputation as a strong environment and safety food management. 2.2.Poter’s Five Forces for Lotteria Porter's Five Forces is a strategic model designed to help business leaders identify, analyse, and evaluate the external factors affecting a company's competitive position. The analysis provided by the model provides a valuable insight into the attractiveness of a market, allowing businesses to make strategic decisions regarding the positioning of a product or service. Applying the Poter's five force analysis framework helps Lotteria gain a deep understanding of how the external five forces influence, thereby making recent changes and expectations to be able to make effective strategic decisions: Competitive rivalry: According to Nielsen, Vietnam is the fastest growing Asian market in the fast food industry with a compound growth rate of 19.1% in 2021.The monthly spending of Vietnamese young people on fast food is up to 13,000 billion VND. This is quite a large amount of spending, which shows that the quality and demand for food of young people is increasing. This creates a fast food market that is capable of generating great profits, stimulantenously atracting and creating strong competition from competitors in Vietnam.Currently, main competitors of Lotteria are KFC and Jollibee. These competitors are mainly foreign joint ventures with Vietnamese or overseas Vietnamese companies, acquiring the business rights of famous food brands in the world. Both enterprises have relatively similar strength: • A well-known brand. • The distribution network is wide across the country, and at the same time. • They has professional service quality. • A variety of fast food and drink products, with flavors that are loved by many people. Beside two big competitors mentioned aboved,currently in the fast food segment, thanks to learning from competitors to standardize business models along with understanding the tastes and consumption habits of local people, many Vietnamese fast food businesses are gaining advantage and expanding market share, increasing chain stores, while the demand for Western fast food is decreasing, creating new domestic competitors for Lotteria in the future. Besides, the race Close attention on increasing coverage and investment in many areas of many companies including: products, premises, promotion leads to a fiercer competition than ever. The fast food market is attractive and full of potential but a highly competitive industry with a fast elimination rate. In fact, many domestic and foreign chains have to flee, or downsize, or have to sell to other businesses. In addition, this competitive fast food industry has high differentiation in terms of products and services. Each business including Lotteria has its own and special formula to create distinct and special qualities of food to serve consumers in the market. Therefore, each fast food brand has different loyal customers. This creates an opportunity and a threat for the business because customers have alternatives and it is easy to switch to another competitor if the business does not satisfy them. The thread of entry: As noted above, the fast food industry is highly attractive and highly competitive, which has reduced the threat of new entrants. Barriers to entry range from scale and experience, expected retaliation. Big brands like Lotteria,KFC,Jolibee have a competitive cost advantage from experience curve effects because they have learned how to do things more efficiently than an inexperienced new entrant could possibly do. Besides, new competitors entering the fast food industry have a disadvantage in terms of customers, because competitors need a long process to build a loyal customer network that while The big businesses above already have a strong reputation. Not to mention when this new business intends to take away the source of consumers and turn them into loyal customers in the market, huge and powerful businesses already have financial resources and other enormous resources that can retaliate which forms of a price war or a marketing blitz or in other aspects such as distribution or supply channels.As a result, it will be very difficult for new competitors to access other resources to maintain business performance, soon will be eliminated from the fast food industry. It can be said that, in the future, there will be very few new competitors strong enough and resources to be able to enter the fast food industry that can compete with Lotteria. The thread of subtitutes: Vietnam is an agricultural country, with a diverse and rich food culture, so the pressure from substitute products is not small on fast food such as sticky rice, pho, vermicelli, tea, ice cream. ,...Currently, there are many shops serving tea, sticky rice... Being overweight as fast food brings. And now, many consumers also consider health issues when buying products. This may cause customers to switch to substitue products, resulting in Lotteria may lose away a number of customers, reducing the ability to generate revenue and profit. The power of buyers: Customers that Lotteria focuses mainly on young people, also known as Gen Z between the ages of 15 and 30, families with children next to them are a group of people with stable and good income. Lotteria's customer group has buying power is not high but it is still influential, because of the large number of customers, and the purchase a small amount and only a small percentage of the total sales of Lotteria, they do not have a strong influence on the low. prices. However, they can easily switch to other alternative brands in the fast food industry, which implies that the switching costs are low. So they can still requires the chain stores to improve the quality of their products. and services. Currently, Lotteria is still a famous brand in mind and still has many loyal customers who love the taste and service that the business offers. In the future, this force will be stable, which there are no major changes to influencethe pofitability of firms The power of suppliers: Currently, Lotteria does not have a factory to process fast food ingredients in a self-sufficient and self-sufficient manner, so the raw materials for processing must be purchased from domestic and foreign sources. The main source of supply is from foreign countries. are products that cannot be produced domestically or can be produced but the quality and quantity do not meet the needs of enterprises, including specialized kitchen machinery and equipment, frozen potatoes, and some spices. and specialized wrapping paper (imported from Lotteria Korea). Domestic supplies must meet standards such as GMP standards. Currently, domestic suppliers have products such as fish. pellets, beef balls, shrimp balls, green vegetables, chicken pieces, ... In addition, the price problem of agricultural products that suppliers to the company is also a pressure, because prices in Vietnam change erratic movements. In the future, Lotteria may still be a customer of current suppliers, but it is possible that the prices of goods supplied to Lotteria may fluctuate in an unpredictable direction, so businesses need to consider carefully. 3. Lotteria’s internal environment and capabilities. 3.1.VRIO framework of Lotteria The VRIO framework is a strategic planning tool designed to help Lotteria uncover and protect the resources and capabilities that give firm a long-term competitive advantage Resources and Capabilities Company brand reputation Fast food store chains Suppliers Ability to raise capital Finnancial strengths Employee Marketing Valuable Rarity Inimitability Organisational support Competitive implication Yes Yes Yes Yes Sustainable competitive advantage Yes No No Yes Competitive Parity Yes Yes No No No No No Yes Competitive Parity Competititve Parity Yes No No Yes Competitive Parity No No No No No No No No Competitive disadvantage Competitive disadvantage Company brand reputation: As a subsidiary of a powerful and influential corporation globally, it is not surprising that Lotteria enjoys the reputation of the parent group Lotte. Therefore, customers often appreciate and always appreciate it. keep a good image of the Lotteria brand with excellent quality products and services in mind. With the brand reputation always at the top and the interest of many people in this fast food industry, Lotteria is easy to can take advantage of many opportunities, minimize emerging threats in the market. In Vietnam, there are very few strong competitors, counting on the palm of your hand, businesses that own that resource such as KFC, McDonalds, Jolibee, on the contrary, there are no Vietnamese businesses that have such advantages in that industry.In order to obtain and imitiate such a strong corporate brand reputation, competitive Vietnamese businesses (except for KFC, McDonald's, Jolibee) need to go through a long process to build, spend a lot of effort and cost to own not to mention difficulties, other threats of competition from Lotteria can threaten the survival of the company. As for organizational support, Lotteria is properly organized to exploit its resources through the expansion and distribution of a network of fast food chains globally in general and across Vietnam in particular for exploitng that company brand reputation. Fast Food Store chains: Lotteria has more than 210 stores, in 30 provinces and cities across Vietnam. With a large number of stores and strategic locations that these stores own, customers can come to enjoy a The dining space is spacious and cozy in a family style with delicious food along with a dedicated customer service from experienced staff here, but this is just a competitve parity because competitors like Jolibee, McDonalds also own a large number and can easily imitate the expression through their own store chains in VietNam.Lotteria has its own plan to open other chain stores in strategic locations so that this resource can be exploited to increase its coverage. Suppliers: Lotteria's suppliers are often extremely reliable from both domestic and foreign countries specializing in providing high-quality, clean and clear-origin food products. Lotteria has used the source to process the lines. Delicious fast food products are loved by many. Supplies can help Lottria take advantage of environmental opportunities,for example, now people are interested in food with clear origin,clean, quality assurance, and Lotteria's reliable suppliers all provide guaranteed ingredients with the above criteria Supplier source help Lotteria minimizes threats for instance with raw materials that are not available in the country, Lotteria has a network of suppliers from abroad that can provide thus avoiding business shutdown and bankruptcy But obviously, all of Lotteria's competitors also have many reliable suppliers who specialize in providing products that meet the same standards as Lotteria.Apparently Because there is no special competitive advantage coming from such an abundant source of suppliers, Lotteria enterprises currently only consider that resource as competitive parity and do not have any strategy to exploit it. Ability to raise capital: Lotteria comes from a large and powerful conglomerate Lotte, thus the company rises equity through internal source.This ability has also allowed the company to engage in mergers and acquisitions, and thus reduce the market competition.Moreover, the business has can gain increased market penetration and market access through its ability to raise capital. Besides, Lotteria can take advantage of potential opportunities and reduce risk in the market. However, this capability is owned by major competitors in Vietnam because these brands also belong to famous corporations. KFC belongs to Yum Brands group, McDonald's comes from the same group of the same name, so it is not difficult. To know the capital capital of these companies is quite large like Lotteria. To take advantage of the large capital, Lotteria is still continuing to research, improve and develop products and services that make a difference for the brand. Financial Strength: Lotteria has the backing of financial strength from its parent company Lotte. The parent company annually generates thousands of billions of VND in revenue from many business units around the world. With large financial resources strength can allow Lotteria to take advantage of all opportunities besides ensuring the company's own survival during periods of environmental threats affecting its operations. However, this resource is not uncommon and many of Lotteria's competitors also High own it. The big competitors that have been mentioned such as KFC, McDonald's, Jollibee all belong to large corporations such as the Group. Yum Brands Inc (owns KFC), McDonald's System Inc (owns McDonald's), Jollibee Foods Corporation (owns Jollibee) also has large financial resources to support the brand's operations. To be able to exploit its financial strength, Lotte has divided and organized small strategic business units in different fields, expanding the scale of operations. In the fast food industry, Lotteria is a business unit that is organized by Lotte to be able to Use that source to achieve the goal that the brand is pursuing. Employee: Lotteria employees include a lot of students applying for part-time jobs, they have not been trained in a methodical and professional way. It can be said that resources are not really valued by customers because sometimes it is their working attitude. The work is not professional, it seems that this source does not allow the organization to respond to enviromental opportunities or threats. This resource is also not scarce or can be easily imitated because rival fast-food restaurants are also employs staffs.Lotteria is also not properly organized to take advantage of resources because there are no in-depth training sessions for new employees organized by any department of the business. Marketing: Lotteria's marketing activities do not have anything special or attractive to make a strong impression in the minds of consumers with other alternatives. In general, marketing is not really valuable to customers and is not allowed to do business exploit skills to take advantage of opportunities or overcome challenges from external environmental factors. It can be said that this is a competitive disadvantage of Lotteria. 3.2.Stakeholder mapping of Lotteria: Stakeholder analysis helps Lotteria to identify individuals or groups with great influence to combine resources to consider forming a comprehensive strategy Power Suppliers Customers Employees Competitors Manager Low Goverments Owners Shareholders Senior Managers Low Level of attention High Power:is the ability of an individual or a group to influence others to follow a predetermined strategy. Attention:This is the stakeholders’ level of concern about a project or their desire to be involved. Owners, shareholders and senior management of Lotteria:are the people involved in the process of formulating a common strategy that the organization must follow. The group of people above will have an overview of resources and capabilities to turn them into competitive advantage for long-term competitive position from which to come up with effective and appropriate competitive strategies. In the organization, they are the people with power or position in the company's organizational structure is quite high, obviously they have a high degree of attention to the situation or problems facing the organization. Suppliers and Customers:are the factors that play an important role in forming a complete strategy and plan for implementation.This group of people influences the group of owners, shareholders, senior managers when making strategic decisions. because they generate revenue so that the business can continue to survive in this fast food market. But suppliers and customers don't have a high level of interest or attention in Lotteria's projects. Suppliers can supply for many businesses other than Lotteria, and customers are the targeted market of Lotteria, who are interested in business products and services, not the strategy that the company implements. Employees, managers and competitors are those with low power but high attention to corporate strategy: -Employees and managers participate in the implementation and implementation of the planned activities in practice. -And competitors always seem to want to know what Lotteria will do to take strategic steps ahead of the organization. Government: Currently, Goverment is a stakeholder with little influence or low interest in Lotteria's strategy. However, Lotteria still needs to consider the impact of new laws enacted by the government on the external environment and company to develop a right strategy. 3.3.SWOT of Lotteria In forming a strategy, businesses need to know where they are strong to turn it into a competitive advantage, weaknesses need to be overcome in combination with identifying opportunities to take advantage of and minimize risks from Threats, the SWOT model is a management tool that has a clear view of the above: Strengths of Lotteria: -Poweful brand reputation:As mentioned in the VRIO framework above, Lotteria has a strong brand value in the Vietnamese market. Lotteria has been with this S-shaped piece of land for 23 years, this Korean brand has pocketed the trust of customers. According to Decision Lab's report on consumer behavior in the fast food industry in 2021, 88% of interviewees chose Lotteria as their favorite brand, 59% often choose this brand to dine in. -Great financial resources from parent group Lotte: With large financial resources from Lotte Group, this helps Lotteria to survive and compete with other competitors in the fierce fast food market in Vietnam. Businesses take advantage of this resource and adapt when external environment changes, minimizes threats to business processes and captures trends and new opportunities. -Extensive distribution system: From a few stores in Ho Chi Minh City, more than 260 "red houses" have sprouted up, standing out among the major roads of more than 30 provinces/cities, stretching from Lao Cai to the Ca Mau cape.Lotteria brand gradually stands in the top of the fastest growing fast food chain in Vietnam. -Lotteria's products are diverse and high-quality, which is loved by many people with reasonable prices. Weakness of Lotteria: -The weak marketing capacity is not commensurate with the great strength of the product system and strong production force. Lotteria has not built a strong communication strategy with effective messages to customers. -Most employees at fast food restaurants are young, some are still in school and only work part time, so they lack experience and can't handle situations well. -The strategy of product diversification and potential disadvantages for the company, having too many products will lead to more difficult supply chain management, higher costs, and difficult quality management. -In-store bill payment methods have not been improved, resulting in an unsatisfactory customer experience. By using the PESTLE model and Porter’s Five Forces to analyze external environmental factors, there are opportunities and threats that exist around the Lotteria fast food chain. Opportunities of Lotteria: -The demand for fast food is still at an increasing rate combined with the fact that the fast food market in Vietnam is mostly Gen Z consumers who have the most purchasing power and especially those who love food. this product. This is a great opportunity for Lotteria to spread the brand, attract and build up a loyal relationship between the company and potential customers, generate increased revenue, and reap huge profits. - Technology is developing, modern seems to now be able to complete very complex jobs in a short time while still ensuring high accuracy. This is when Lotteria applies technologies, software, this application into daily business activities for instance: in research and development to learn and grasp deeply about consumer habits and tastes to develop a line new products, or apply it to customer experience management in order to overcome unsatisfactory points, improve services and products. Threats of Lotteria: -Lotteria has always faced extremely fierce competition from famous brands such as KFC, Jollibee in the fast food industry. - The political situation mentioned above increases the appearance of new competitors. -Currently, the consumer trend is towards nutritious and healthy foods, many healthy substitutes for fast food that are interested by many consumers can help threatens Lotteria's market segment, turning into a fierce, long-term survival competition. 4. Using an appropriate strategic management tool for choosing business strategies. 4.1.Applying Ansoff for Lotteria The Ansoff Matrix, often called the Product/Market Expansion Grid, is a two-by-two framework used by management teams and the analyst community to help plan and evaluate growth initiatives Market penatration: This is a strategy of growing market share through selling existing products and services. This strategy has the lowest risk and is a fairly comfortable option, as there is no change in the market, customers, or customers. or distribution channel at all. In this strategy, Lotteria may have special occasions to discount fast food products such as holidays....or have product combos at a reasonable price,at the same time attract the existing customer group. To increase the coverage and attract new customers (that is, still the old market segment, but here they are not customers of Lotteria's products), Lotteria needs to have different and attractive Marketing campaigns. Market Development: This strategy still focuses on selling existing products but in a new market, new customer group. This is the next low-risk strategy that is also being applied by Lotteria. Currently, Lotteria is present. in many markets outside Vietnam such as Japan, Korea, China and East Asia with many branches serving. Lotteria should consider expanding its brand in the US because there is a demand here. Large and high percentage of fast food consumers, this is a potential market to continue to develop and generate more revenue. Lotteria can also find new distribution channels in the Vietnamese market. Maybe consider selling fast food through school canteens, as students love it. Product Development Strategy:Lotteria has always invested in research and development to bring new fast foods to suit the taste of the market in Vietnam. The risk that Lotteria faces is that this new product has never had the opportunity to be accessed to the existing market. But one advantage for the company is the long-term relationship with the customers in Vietnam, which helps Lotteria grasp and deep understand about behaviours and tastes,demand of them. Diversification Strategy:Lotteria has chosen the strategy of diversifying products as the main focus, proceeding to quickly dominate the fast food market.This brand offers products with a variety of ingredients such as beef, pork, fish, shrimp... Its products are also diverse from Hamburger (similar to competing brands) to Vietnamesestyle rice. Combos (packages of products such as food and drinks together) products of this fast food chain from this country of kimchi are also quite diverse to meet different needs on the market. Through doing this, Lotteria tries to attract customers in different segments, from high-end to low-end. However, using this diversification strategy has the potential for risks. There are too many products will lead to supply chain management becomes more difficult, costs increase, and quality management is not easy. 4.2. Devise appropriate business strategies for Lotteria Base on Porter’s three generic competitive strategies,Lotteria can pursue and implement them to be profitable and competitive with other competitors in the market. Cost leadership strategy: Lotteria can reduce input costs through recruiting young, dynamic and cheap labor resources who are students, but need to pay more attention to more methodical and professional training. With advanced machinery from the era of developing technology, Lotteria can use these technologies in logistics or production processes to save costs in the process of bringing products or services to customers. Differentiation strategy: It can be combined with the diversification strategy that Lotteria is implementing mentioned above to improve efficiency even more. Enterprises with strong resources should take advantage of investment in research and development to continue to improve fast food products and services to meet the needs of today's consumers in the market. Take advantage of the strength of the existing brand reputation to be able to highlight the differences and strengths of the brand from other competitors. In order to do that, Lotteria is required to pay more attention to improving its marketing capabilities. In addition, Lotteria can build on relationships with fast food delivery services like Shoppee food, Baemin, makes its own food page different on the app compared to other brands, or with products like Chin-Su's chili sauce because the fast food includes fried foods that a lot of who loves to use this chili sauce to eat with it. 4.3 Evaluation which among devised strategies is most workable to the company The SAFE model is used here to evaluate strategies outlined above: Suitability (S): The strategies outlined above all include strengths, opportunities to take advantage of, and indicate weaknesses that the business needs to overcome. These strategies are all aimed at the common goal of creating create a long-term competitive advantage for the fierce battle with other brands in the fast food industry in the Vietnamese market. Acceptability (A): The above strategies are just ways to use the available opportunities, resources and strengths to compete effectively with competitors, not strategies containing ambiguous , random and unpredictable factors. In general, the level of risk of these strategies can still control risk and meet the revenue and profit expectations accepted by stakeholders. Feasibility: Strategies are built based on the framework of analyzing external environmental factors and the internal environment of the business in the real context. Obviously, Lotteria has enough resources, human, financial and capabilities to put them into practice. Evaluation: In general, the corporate strategies outlined above meet all three criteria analyzed. They continue to support other strategies such as diversification that Lotteria is implementing currently. 5. Develop a strategic management plan in Lotteria 5.1.Factors could contribute to the successful implementation of the suggested strategic management plan for Lotteria. There are factors that play an important role in the successful implementation of a strategic management plan for Lotteria. Below are a few factors including: Commitment: Managers and followers, employees need to fully engage in each stage and activity in the strategic plan. Here, each individual member of the organization is like an eye of chain with different roles in strategic planning. Without commitment to the strategy, the organization loses its consistency and unity making Lotteria unable to achieve its goals. Leadership: Leadership is one of the important factors in the formation and implementation of a successful strategy. It creates the link between the separate functions of the business into a unified system. Leaders are people who provide vision, direction, plan, and commit to monitor activities. Moreover, leaders disseminate energy boosting activities and promote the morale and the spirit of the workers so that they can contribute effort during the implementation of the plan. Organizational structure: is the foundation on which the company builds a plan. It tells organization which tactics are feasible and how company should go about implementing them. Given the predefined functions in the organizational structure, these managers, senior leaders can divide into smaller tasks suitable for each function combined with effectively allocating resources and human resources to make optimal use as in management strategic plan to achieve goals. Ability to measure performance: this helps managers, have a correct view of the capabilities and results of the business in the process of implementing the plan. From there, there are adjustments or solutions to be able to make a decision for better performance. Communication and people: This is one of the factors that play a key role in the successful implementation of the strategic management plan. Without communication, employees do not seem to know how or where to do things. requirements in the plan, the enterprise becomes fragmented, lacks efficiency. Human resources are the biggest resource, the person who performs the activities in the plan to succeed. Employees are motivated, equipped full skills and knowledge will give better performance to achieve the set criteria, making the process of implementing the strategic management plan smooth and effective to achieve the goals set by the business. With the overall goal of effectively utilizing and combining these factors to execute Lotteia strategies in the consistent and smooth manner that have been specifically outlined, the table below will talk about how to use these factors : Critical Success Factors (CSFs) Source of CSF Key activitives for utilizing factors in Lotteria Commitment Strategy -Present and explain the company's situation, goals and directions, plans in detail for managers and employees so that they have a clear view. -Generate worthy rewards after completing tasks from the plan. -Managers are responsible for supervising and guiding employees. -Manager have to build a culture of trust for employees by listening to ideas and suggestions from them Leadership Strategy -The top leaders of the Lotteria must set out clear and specific goals so that followers can follow. -Leaders need to motivate employees by building incentives and promotions policy for talented employees. -In some situations, top managers of Lotteria need to change their leadership style to match that can steer the boat in the right direction. Organizational structure Strategy Lotteria still retains the same organizational structure.The company was built to use the inherent competitive advantages analyzed above and serve effectively in the implementation of business strategies. Ability to measure performance Strategy -Lotteria's human resources department has developed a process to evaluate and analyze aspects related to employee performance. -Assess the level of customer satisfaction to assess the overall performance of the business through surveys in two forms, offline or online. -AI technology can be used to monitor, collect information, analyze to measure performance. -Lotteria can survey company employees to find out what problems exist that affect their productivity Communication and people Strategy -There are professional and methodical training sessions for new employees. -To improve communication, Lotteria managers can organize cultural events and exchanges for employees, thereby partially closing the power gap between employees and managers. a friendly working environment and listening contributes to improving communication in the business. -Offer employee motivational policies such as additional salary increases, time off or support for them 5.2 Strategic management plan for Lotteria A business model canvas is a visual representation of a business model, highlighting all key strategic factors. Using this tool combine with table mentioned above can produce a complehensive strategic plan based on strategies mentioned above for Lotteria: Key Partnerships - The suppliers of raw materials,food products machienary are from VietNam and foregin countries. Key Activities - Selling fast food products,providing services at Lotteria restaurants. - Forcus on improving Marketing and promoting brand image - Investment in research and development for new product lines - Design professional training sessions for employees - Consider and analyse enviromental,comtetitive market factors to respond opportunities or threats. - -Make diversified product lines. - Applying AI technology for evaluating performance. Value Propositions - Variety of fast food - Quality assurance - Flavors tailored to each customers - Resonable price,not expensive. - Attractive combos contains fast food and drinks for customers. -- Discounts on special occasions Customer Relationships - Serve customer with enthusiasm and dedication. - Listen feedbacks from customers to have an improvement. - Take responsibilty when customers encounter problems in using products or service of Lotteria Customer Segments - Lotte focus on serving people under 30 ,families have stable income,especially children and Gen Z,mainly focus on the area of crowded cities such as HaNoi.HoChiMinh City - Run advertisement on social media - Recurit abudant and cheap labour sources. - Coduct survey to measure customer satisfaction to food products and service of Lotteria Key Resources - Financial Strengths - There is a cheap and abudant labour resource. - Brand reputation Channels - Lotteria's fast food outlets are now distributed throughout the provinces in VietNam - Fast food restaurants of Lotteria appear in shopping centers. - Customers can know and order food through food delivery application such as Baemin,Shopee Food,... - Lotteria uses social media and networks for Marketing for example:Facebook Cost Structure - Cost for machinary,food materials - Expenses for marketing activities. - Cost for the process of transporting raw material and machinery. - The cost of renting a house or area to open a restaurant - Cost of restaurant equipments - Electricity and water cost - Tax must be paid - Salary for employee - Expenses to be spent in the process of data collection. - Cost for new products. For more specific and detailed information, below is the operation plan for Lotteria: Objectives Functions’ duties Lotteria brand image has a good position Marketing: in customers' mind -Forcus on improving Marketing and promoting brand image -Using new technologies and software in collecting and analyzing information about customer experience. - Create more promotions on special occasions. - Run ads on media channels like facebook,tiktok and on fast food channels Diverse menus and combos R&D of Lotteria: Introduce products with new flavors to -Researching customer and market attract customers needs. - Keep experimenting and creating different product lines. -Applying advanced technologies into progress. More professional service HR department: - Using abundant and cheap labor resources are students -Design and deliver professional and methodical training sessions. Marketing department: -Create customer satisfaction surveys to be able to uncover issues that negatively Revenue Streams - The main source of revenue is from selling fast food products to customers - Use low pricing strategy to get high revenue - Using cost leadership strategy by taking advantage of cheap labour and applying machine to processes to save capital,generate high profits. Time period 1 year Budget in VND 500 million VND 1 year 700 million VND 4 months HR department:100 million VND Marketing Department:100 million VND affect customers during service use - Collect and analyze data from surveys -Seek solutions for those issues Cost savings HR department: -Create recruitment policies to take advantage of an abundant and cheap labor force including students or students. - Put recruitment information on media channels. R&D department: -Analyze and collect information from external factors to find more low-cost sources in the process of business operation. Accounting department: -Control bugets of the business -Identify sources with high costs to promptly find cheaper sources. Technological department: Find work steps that can be shortened and reduce intermediate steps to save costs that can be replaced by technology in the long term. 7 months HR department:50 million VND R&D department:50 million VND Technological department:50 million VND 6.References: 1 Whittington, R. et al. (2017) Exploring strategy. Harlow etc.: Pearson. 2. Lotte lotte.co.kr. Available at: https://www.lotte.co.kr/global/vn/main.do#firstPage (Accessed: November 28, 2022). 3. Lotteria Việt Nam. Available at: https://www.lotteria.vn/ (Accessed: November 28, 2022). 4. Minh, S. (2022) Việt Nam Tăng điểm trong xếp hạng chỉ số nhận thức Tham Nhũng 2021, BÁO LAO ĐỘNG. Available at: https://laodong.vn/thoi-su-quoc-te/viet-namtang-diem-trong-xep-hang-chi-so-nhan-thuc-tham-nhung-2021-998866.ldo (Accessed: November 29, 2022). 5. 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