UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ TRẦN CAO MAI TRÂM SOLUTION TO IMPROVE SALES PERFORMANCE OF THRID-PARTY SALES AGENCY CHANNEL IN HSBC BANK VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Trần Cao Mai Trâm SOLUTION TO IMPROVE SALES PERFORMANCE OF THRID-PARTY SALES AGENCY CHANNEL IN HSBC BANK VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr. Lê Thị Thanh Xuân Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS LIST OF FIGURES. 4 LIST OF TABLES .1 HSBC Group overview: .2 HSBC Vietnam background & organization structures: .3 Overview of third-party company – MOCAP Vietnam Joint Stock Company:. 11 CHAPTER 2: PROBLEM ANALYSIS .1 Symptoms of company: .1 Background of symptoms: .1 Potential problems 1: Ineffective Project Organization Structures & operational issues .2 Potential problem 2: Wrong customer segments touching .3 Potential Problem 3: Poor Sales-forces Capacity .3 Central problem validation and consequences: .1 Central problem validation: .2 Consequences of central problem:.
29 CHAPTER 3: CAUSE VALIDATION .1 High-staff turnover rate: .2 Lack of salesforces training for agent:. 33 TIEU LUAN MOI download : skknchat@gmail.3 The shortage of headcount (sales forces): .2 Main Cause Validation: .1 High staff turnover rate in TPSA Channel:.2 Shortage in Sales agents of TPSA channel: .3 Lack of salesforce training for TPSA agent:. 37 CHAPTER 4: ALTERNATIVE SOLUTION & ACTION PLAN .1 Alternative Solution 1: Supporting fees on incremental headcount increase .2 Alternative Solution 2: Developing training program for TPSA agents: .49 CHAPTER 5: SUPPORTED INFORMATION .1 Summary of methodology conducted: .60 TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 1: HSBC Vietnam Organization structure Figure 2: Percentage of contribution of RBWM Sales Channel Figure 3: Percentage of contribution of RBWM Sales Channel in the last 3 years Figure 4: Percentage of contribution of TPSA channel in 7 ASIA markets Figure 5: HSBC – TPSA project organization chart Figure 6: TPSA channel – Credit Card Application Handling Figure 7: TPSA sales agents resources in 2018 Figure 8: Initial causes and potential problem Figure 9: Initial - Causes and effect diagram Figure 10: Productivity break down by sales agent vintages Figure 11: TPSA sales agents resources in 2018 Figure 12: Final – Cause and effect diagram Figure 13: Alternative solution 1 – Human resources planning LIST OF TABLES Table 1: HSBC Bank – RBWM Sales Performance in 2018 Table 2: HSBC Bank – RBWM Sales Performance Contribution in the last 3 years Table 3: Approval rate of HSBC Credit Card by Channels Table 4: Sales Performance plan of HSBC RBWM in 2019 Table 5: Human resource recruitment cost Table 6: Alternative solution 2– Action plan Table 7: Training Course – Training Agenda TIEU LUAN MOI download : skknchat@gmail.com EXCUTIVE SUMARY As one of market leader in Credit Card selling in Vietnam financial market, HSBC Banks issues more than 75,000 cards into market as of December 2018. Giving the fact that, Vietnam financial market is potential and promise market for banking & financial industry with golden young population and middle-income.
With the ambitious accumulate the largest market share, HSBC operated TPSA channel as supported sales channels (besides HSBC in-house sales force) to capture new to banks customer in major city like Hochiminh city. Although, recently TPSA channel gain sales performance developed year on year, it’s not achieved sales expectation (around 10% contributed to RWBM total sales volumes), which was set by HSBC’ group when operated TPSA channel in Vietnam market. The purpose of this thesis is evaluating the root causes leading under contribution of sales performance expected in TPSA channel to total sales volume of HSBC Banks in recent year. Then find the best solution to implement in the next year to push-up sales performance of TPSA channel achieving the performance expectation of HSBC Group.
This thesis consists of 4 main chapters: - Chapter 1: the introduction about HSBC Bank in Vietnam and overview of TPSA agency – Mocap Vietnam Joint Stock Company. - Chapter 2: the description about the general of symptoms and identify the central problem leading to this symptom. Recently, the symptom was after three years operated and experienced TPSA channel in Vietnam market, HSBC project can meet the percentages of contribution (10%) to RBWM sales volumes. - Chapter 3: the validation of all causes leading to the central problem and evaluated which was the main causes leading to the central problems.
- Chapter 4: propose two potential alternative solutions for choosing the best solution to drawn out action plan for implementation. After evaluating basing on the combination of primary and secondary data, in-depth interview and theory support, the key finding of theis shown the problem of HSBC project is poor sales capacity in TPSA channel. Then, a list of these main causes collected via in-depth interview and literature review drawn out. The shortages of sales agents in HSBC – TPSA project is the main causes leading to central problem (poor 5 TIEU LUAN MOI download : skknchat@gmail.com sales capacity).
In current situation of HSBC project, the solution in supporting fee for each incremental headcount increase seems to good solution and applicable to help TPSA agency turn out shortage sales headcount in short-term. Furthermore, this solution might help TPSA agency take the risk of investing in new sales forces and respond to the challenges of Vietnam market for sustainable growth in long-term business. 6 TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEGEMENT I would like to show my gratefulness and special thanks to my supervisor – Dr. Le Thi Thanh Xuan for all her continuous support, advices and instructions during the process of writing this thesis.
Without her advises, this master thesis cannot be completed. Needless to say, her guidance and instructions helped me in all the time of writing thesis. Then, I also would like to show my gratitude to my manager, my colleagues at HSBC Bank who gave me chance to conduct research and also thank you to their time spending on interviews with me to come up the result of thesis. Lastly, I also send my sincere thankfulness to my parents and friends for their support and encouragement during the time which I took the master course.
7 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: INTRODUCTION 1.1 HSBC Group overview: HSBC is one of international finance organization and banking biggest over the world. HSBC serves for than 38 millions of customer via four multi-national business services such as: retail banking and wealth management, commercial banking, global banking and market, global private banking. HSBC network covers over 66 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. The name of HSBC is an acronym for The Hong Kong and Shanghai Banking Corporation Limited, the founding member of HSBC, which was constitutive in 1865, with the aim of financing the developing trade among India, China and Europe.
HSBC puts headquarter in London, United Kingdom. Nowadays, HSBC has been considered one of the top organizations with branch network spread out all over the world which provides the service in finance and banking with high quality and security guarantee. HSBC positions its brand through the message “The world's local bank”. HSBC is headquartered in London, United Kingdom.
There are 12 main dates in history timeline of HSBC Group: – March – April 1865: HSBC established in Hong Kong and Shanghai. It was the first bank owned by the local and operated based on the principles of Scottish banking. – By 1875: HSBC appeared in seven countries throughout Europe, North America and Asia. It financed the exportation activity from China, India, Philippines and Vietnam.
– By 1900: HSBC spread out the network into 16 countries to finance trade around the world. The business was surrounding ingot, exchange and trading. – 1910: HSBC broadened the variety of activities in Asia by providing loans to governments in the locals for projects of modernization and infrastructure. 8 TIEU LUAN MOI download : skknchat@gmail.com – By the 1920s: Business in Asia began to accomplish again despite of inhibition caused by The First World War and trading in commodity especially rubber and tin increased rapidly.
– 1935: New head office was designed by architects Palmer and Turner, applied the popular decorative style of Art Deco. – 1941: During the time of The Second World War, staff in Asia became war prisoners. Only branches that ran in London, India and US remained in fully operated condition. – 1950: HSBC played main role in reconstructing Hong Kong’s Economy after war ending by supporting for manufacturing and business.
– By the 1970s: HSBC widen its variety of activities in trading by acquiring Mercantile Bank and The Middle East British Bank. – 1992: HSBC’s headquarters were moved to London after acquiring Marine Midland Bank in the US and UK. – 1998: HSBC unified its brand and logo of hexagon to utilize in all branches. – 2016: HSBC continued expanding business to growing areas.
HSBC Strategies: HSBC in one of the world’s leading international banks, with exceptional access to high- growth market and a strong balance sheet. “We are uniquely placed to help customers around the world achieve their ambitions” (John Flint, HSBC Group Chief Executive). HSBC values: D-O-C is the core value of HSBC. • D stand for Dependable • stand for Open – HSBC open to different ideas and cultures.
• C stand for Connected – HSBC connect to customers, communities, regulator and each other. HSBC aim to building connections, being aware of external issues, collaborating across boundaries.2 HSBC Vietnam background & organization structures: In 1870, HSBC established the first office in Saigon, big city of Vietnam. Until 1995, HSBC run into business a branch with full financing and banking service. In 2005, HSBC opened another branch and a representative office in Hanoi and Can Tho 9 TIEU LUAN MOI download : skknchat@gmail.com City respectively.
According to HSBC Vietnam Financial Report 2017, total asset of the Bank reaches VND 87,786 billion; revenue in 2017 is VND 2,727 billion and profit after tax takes 65.2% over revenue, increases 23.5% compared to the one in 2016. At the present, HSBC is considered one of the largest foreign-owned banks in Vietnam with regard to investment capital, branch network, wide range of products and services, number of employees and substantial customer data base. In Vietnam market, HSBC operated in 4 sectors: RBWM, Wholesales Banking, Global Liquidity and Cash Management, Global Trade and receivable finance and securities services. Figure 1: HSBC Vietnam Organization structure Headquarters: The Metropolitan, 235 Dong Khoi Street, District 1, Hochiminh city.
Awards: § Best Foreign Bank in Vietnam 2006 – 2012, 2014, 2015, 2016, 2017, 2018 by Finance Asia § Best Trade Finance Bank in Vietnam 2018 by Euromoney Trade Finance Survey § Best IPO by Finance Asia for Vinhomes US$1.349 billion Initial Equity Offering, HSBC is a joint bookrunner § Best Deal in Vietnam by Finance Asia for Vinhomes US$1.349 billion Initial Equity Offering, HSBC is a joint bookrunner § Best Loan Adviser in Vietnam 2018 by the Asset Triple A 10 TIEU LUAN MOI download : skknchat@gmail.com § Best IPO in Vietnam by the Asset Triple A for Vinhomes US$1.349 billion Initial Equity Offering § Best syndicated loan in Vietnam by the Asset Triple A for VinFast Trade and Production US$400 million syndicated term loan facility § Visa Global Award for the Highest International Authorization Approval Rate for Consumer Credit International in 2017 § Best Foreign Investment Bank in Vietnam 2015, 2017 by Finance Asia § Best International Bank in Vietnam 2017 by Asia money § Best Domestic Cash Manager 2010 – 2017 by Euromoney Cash Management Survey.3 Overview of third-party company – MOCAP Vietnam Joint Stock Company: MOCAP Joint Stock Company was established business in Vietnam since 2009 with charter capital was VND 50 billion.