GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION CAPSTONE PROJECT REPORT BUILDING STRATEGIC PLANS FOR MILITARY INSURANCE JOINT STOCK COMPANY TILL 2015 Subject : Plan Management Class : GaMBA01.V03 Perform : Group 08 List of members: 1. LÊ TRUNG THÀNH 2. NGUYỄN VĂN LỢI Nghe An, April 2011 Global advanced Master of Business Administration CONTENTS LIST OF PICTURES AND DIAGRAM. Why choose research topics.
Scope of research. THE RATIONALE FOR BUILDING THE BUSINESS STRATEGY. BASIC ISSUES OF BUSINESS STRATEGY:.1 The concept of business strategy.2 Basic characteristics of business strategy. The role of business strategy.
DETERMINE VISIONS AND MISSIONS, OBJECTIVES OF THE BUSINESS:. ANALYSE BUSINESS ENVIRONMENT OF THE ENTERPRISE (EXTERNAL ENVIRONMENT).4 ANALYSE ENVIRONMENT INSIDE BUSINESS.5 STRATEGIC ANALYSIS TOOLS.1 Strategic planning steps.2 The analytical tools.6 OPTIONS OF STRATEGIC IMPLEMENTATION.10 CHAPTER 2: ANALYSE BUSINESS ENVIRONMENT AND STATE OF THE MILITARY INSURANCE JOINT STOCK COMPANY.1 OVERVIEW INTRODUCTION OF THE MILITARY INSURANCE JOINT STOCK COMPANY.13 Business Plan for Military Insurance Joint Stock Company ii Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration 2.2 ANALYSE BUSINESS ENVIRONMENT OF MIC.1 Analyse Macro-environment. Institution-legislation factors. Socio-cultural, natural factors.
Analyse micro-environment, industry environment of MIC. Competition among insurance enterprises. Pressure from insured customers. Competitive pressure from potential competitors.3 Synthetize business environment of MIC.3 ANALYZING INTERNAL ENTERPRISES MIC (Analysis of S, W).1 Analysis of human resources and management skills.2 Assess the level of administration of the MIC.
Inspection and control:.3 Assess Information Technology capacity:.4 Assess the financial potential of MIC.30 CHAPTER 3: STRATEGIC SELECTION AND STRATEGIC SOLUTIONS OF MILITARY INSURANCE JOINT STOCK COMPANY.1 BUSINESS STRATEGY OF MILITARY INSURANCE COMPANY (MIC) TILL 2015:.1 The basis for establishing the business strategy of MIC till 2015:.2 Business strategies of MIC till 2015:.3 The core value:.2 Development Strategy of MIC till 2015:.1 SWOT matrix of the MIC:.2 Analyse the strategic options:.44 Business Plan for Military Insurance Joint Stock Company iii Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration 3.3 MEASURES OF STRATEGIC IMPLEMENTATION OF MIC TILL 2015:.1 Solutions of restructuring business operations of insurance:.2 Solutions to improve the quality of customer service.3 Solutions to expand the distribution channel systems:.4 Solutions to build brands and promote the image of the MIC:.5 Solution of restructuring departments structure to improve business:.6 Solutions to the administration of human resources and attracting talent of the MIC:.7 Solution of information technology:.8 Solutions of expansion of financial investment activities:.4 IMPLEMENTATION STRATEGY ROADMAP TO 2015. For the Insurance Supervisory Authority:. For the Association of Vietnamese Insurers:. For Military Insurance Joint Stock Company (MIC):.58 Business Plan for Military Insurance Joint Stock Company iv Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration LIST OF PICTURES AND DIAGRAM Content Page Table 1.
Strategic planning process 3 Table 1. 5 competitive pressure models of M. The synthesized table of strengths and weaknesses of the enterprise (SW) 8 Table 1. The SWOT matrix 10 Table 2.
Data of the insurance market in 2008; 2009; 2010 18 Table 2. The synthesized table of opportunities and threats (OT) for the MIC. Structure of the Military Insurance Joint Stock Company 27 Table 2. Summary financial reviews in 2008, 2009, 2010 30 Table 2.
Revenue structure of the operations of MIC 31 Table 2. Results of business activities in 2007, 2008, 2009, 2010 of MIC 32 Table 2. Synthesizing internal analysis of MIC 34 Table 3. SWOT matrix of MIC 41 Business Plan for Military Insurance Joint Stock Company v Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration PREFACE To have this research results, we would like to show our sincere gratitude to Griggs University, Center for Educational Technology and Career Development (ETC) and especially all lecturers for the enthusiastic teaching, instruction and provision of valuable knowledge.
We also want to thank the leading board of Military Insurance Joint Stock Company as well as its offices, divisions that have helped our group to complete the following topic “business strategy construction for Military Insurance Joint Stock Company by 2015”. The process of research and construction of this capstone project report is based on the collected information at the company, related materials, theories of analysis tools and methods provided by the program of Global Advanced Master of Business Administration organized by Griggs University – the US coordinated with ETC – Viet Nam National University. Due to limited time but large research scope, then we cannot avoid making mistakes and limitations. Our group expects to receive useful comments from the program, lecturers, leading board and cadres of the company to supplement, adjust and complete the report’s content to be applied into the long term development of the company.
Once again, we would like to show our great gratitude to all lecturers, leading board of Military Insurance Joint Stock Company for creating the best condition for the group to complete this report. Nghe An, April 2011 Group 8 – Class: GaMBA01. Business Plan for Military Insurance Joint Stock Company vi Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration TESTIMONIAL Via working and studying report on “strategy plans for Military Insurance joint-stock company” prepared by Group 8 of GaMBAV03, we have some following comments: - Working awareness of the group. During working time at the company, we have realized that the group has earnest and serious working awareness; apart from main activities of the group including collecting data, visiting, business process…the group also gets consultancy from leaders and staff of the company.
This report is written based on data and information provided by us as well as documents, policies and information directly related to the company. After studying and listening to the presentation of final report, we have realized that reality assessments and analysis are very thorough and practical. Solutions that group recommends are really useful for company’s development. Finally, we want to show our gratitude to the group which has recommended solutions for business development of the company.
We will study such solutions to apply into reality of production and business activities. We also wish to show our gratitude to the course on Global Executive Master of Business administration organized by Griggs University coordinated with Centre for Technology and Career System – Ha Noi National University that has equipped learners with knowledge to support company in finding out such realistic and useful solutions. Vice Director General Business Plan for Military Insurance Joint Stock Company vii Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration PREAMBLE 1. Why choose research topics Affiliation WTO and commitments to open markets have been creating significant changes to the Vietnamese insurance businesses, opening up many opportunities that can exploit to develop business, as well as taking more opposite impact and challenges that have to be overcomed after joining the WTO.
A series of State insurance enterprises such as Bao Viet, Bao Minh, Vinare, PetroVietnam Insurance (PVI) sold shares to foreign strategic partners who are the international insurance group. This is seen as a real revolution in the insurance industry in order to increase competitiveness and maintain enterprises’ own market shares. In this context any insurance businesses that wants to survive and develop must build a suitable business strategy for themselves. Wishing to be able to build a strategic that orients development for the Military Insurance Company in the future, the group 8 of MBA01.V03 class selects assignment "Building the business strategy of Military Insurance Company to 2015".
Research objectives Business environment of insurance is competitive more and more fiercely among insurance companies. Selecting this topic, our group expects to achieve the following objectives: - Analyze the main factors affecting and deciding the business operation results of the MIC in the present and future. - Build business development strategy to 2015 - Provide solutions to fulfill the proposed strategy. Scope of research When executing this topic, group researchs primarily in the company activities, collects local data and insurance industry in order to propose development strategies for the business in the period 2010-2015.
Business Plan for Military Insurance Joint Stock Company viii Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration 4. Research methodology We use a combination of qualitative research methods basing on analysis and synthesis of primary, secondary data obtained from many different sources, collect company’s internal data, newspapers, magazines and internet relating to insurance and group discussions. The structure of the topic: This topic includes the main parts: Chapter I: The rationale for building the business strategy. Chapter II: Analyse business environment and state of the Military insurance joint stock company Chapter III: Strategic selection and strategic solutions of Military insurance joint stock company.
Business Plan for Military Insurance Joint Stock Company ix Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration CHAPTER I. THE RATIONALE FOR BUILDING THE BUSINESS STRATEGY 1. BASIC ISSUES OF BUSINESS STRATEGY: 1.1 The concept of business strategy Business strategy of enterprise is the overall, long-term objective to develop business, help businesses promote their strengths and opportunities, overcome weaknesses and challenges from which they can win the competition and achieve goals.2 Basic characteristics of business strategy Business strategy of the enterprise has the following basic characteristics: - Business strategies determine the basic objectives and business direction of the business in each period. - The orientation of the strategy in order to ensure business develop continuously and firmly in the constantly fluctuating business environment.
- Business strategy in order to ensure maximum mobilization and optimal combination of the exploitation and use of enterprise resources in the present and future, taking advantages, seizing opportunities to gain advantage in competition. - Business strategy of the enterprise is reflected throughout the continuous process. - Business strategy has ideology that advancing, winning on the market place. - Business strategy is built in a long period (three to five, ten years).
The role of business strategy The roles of business strategy of the enterprise are shown on the following aspects: - Business strategy helps business identify its purpose, direction as a basis, a guideline for all business activities of enterprise. - Business strategy enables business to seize and take advantage of business opportunities, develop their strengths, and have proactive measures to overcome Business Plan for Military Insurance Joint Stock Company 1 Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration weaknesses, avoid or deal in order to minimize damage from the risks and threats in the market place. - Business strategy contribute to improve the efficient use of resources, strengthen the position of the business to ensure sustainable development of enterprise. - Business strategy creates solid bases for business to set out suitable decisions with market fluctuations.
It creates a solid basis for research and development, investment and development in training human resources, expanding market and developing product activities. Strategic management process includes three phases: - Strategic planning phase; - Strategies implementation phase; - Strategic assessment phase. We can summarize overally the strategic management process of business through the following diagram: (next page) Business Plan for Military Insurance Joint Stock Company 2 Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration Diagram 1. Strategic planning process Strategic functions, tasks and objectives of business Analyzing enterprise’s Analyzing business internal (S, W) environment (O, T) Selecting strategy Implementing strategy Examining, assessing the implementation results Feedback 1.
DETERMINE VISIONS AND MISSIONS, OBJECTIVES OF THE BUSINESS: 1.1 Visions Strategic vision reflected the highest, the most general desire that business wants to achieve. Identifying and declaring vision play very important role in focusing people's expectations in the organization and encouraging all efforts to achieve goals, careers and lofty ideals.2 Missions The mission is a statement having long-term valuation in goals, also known as the business philosophy, principles of business, the trust of the enterprise. Business Plan for Military Insurance Joint Stock Company 3 Perform: Group 8, class GaMBA01.V03 Global advanced Master of Business Administration 1.3 Objectives Objectives can be understood as the determined results which business wants to achieve when pursuing its mission.