CAPSTONE PROJECT REPORT FORMULATION OF BUSINESS STRATEGY PLANNING OF HO CHI MINH SECURITIES COMPANY IN THE PERIOD 2011 - 2015 Group 6 – GaMBA01.Nguyen Quang Hai 2.Nguyen Ngo Minh 3.Nguyen Ngo Thi Chung 4.Nguyen Thi Vi Anh 5.Bui Huong Lien Ha Noi, Dec 2012 0 ACKNOWLEDGEMENT In the first words, we would like to send my best thankfulness to teachers and professors in Centre for Educational Technology and Career Development – Higher Education – Vietnam National University, America Griggs University for creating the best favorable situation for all trainees during the whole course, especially, when we carrying out this capstone project report. Our group also thank to Board of Directors of HSC and related sections for guiding enthusiastically and providing necessary data for us to complete this report. Despite of trying our best in studying and collecting data, the report still have some unavoidable shortcomings. We sincerely hope to receive comments of teachers and friends to makes it more meaning full.
COMMITMENT Our group commit that this is our special work. Data and figures in this report are accurate, our analysis and conclusions have not been announced in any other scientific research. Hanoi, Nov 22nd 2011 Group Leader NGUYEN NGO MINH Capstone Project Report Gamba01.X0610 - Group 6 1 Table of Contents ACKNOWLEDGEMENT.Urgency of research. The research objective of the thesis.
Objects and scope of the research. 6 CHAPTER 1: COMPETITIVE STRATEGY OF HSC SECURITIES COMPANY.1 Overview of securities business activity.1 Definition of stock market.2 Characteristics of Securities Market.3 Classification of securities.2 Making business strategies for Securities Company. Definition and characteristics of business strategy.1 Definition of business strategy.2 Characteristics of business strategy.2 The necessary of making the business strategy.3 The process of developing business strategy in enterprise.1 Classification of tasks and objectives of business strategy.2 Analysis of external business environment.1 Analysis of environment through P.2 Five competitive forces model.3 Analysis of Internal Environments.1 Analysis of company resources.22 CHAPTER 2: SITUATION ANALYSIS OF HSC SECURITIES COMPANY.1 About HSC Securities company. History and development.2 Organizational structure of company.33 Capstone Project Report Gamba01.3 Business scope of company.2 HSC competitiveness current situation on Vietnam stock market.1 Analysis of company operation in recent years.3 Develop competitive strategy at HCS securities company.1: Vision and mission of company.2 Analysis the external environment based on the P.1 Economic environment analysis.2 Social and culture environment.3 The political and legal environment.3 Analysis of industrial environment.1 The stock market in the recent years.2 Analysis the current competitors of HSC.4 Analysis of potential competitors.5 Analysis of the environment within the company.2 Culture and prestigious business.3 Models environmental analysis within the IFE.6 Strengths and weaknesses.64 CHAPTER 3: PROPOSED STRATEGY AND SOLUTIONS OF COMPETITIVE STRATEGY FOR HSC SECURITIES JSC.1 Orientations of industry development in the period 2011 to 2015.3 Best strategic selection by QSPM model.1 Marketing strategy planning.2 Improving financial capacity of HSC Securities JSC.3 Human resource solutions.
79 Capstone Project Report Gamba01.4 Modernization the information technology system in service of business executives in company.5 Approach the strategic partners.6 Develop leadership culture and future leading generations of HSC.7 Effective investment strategy:.84 Capstone Project Report Gamba01. Urgency of research Since late 2006, Vietnam's stock market developed rapidly both in number of securities, the number of investors and securities service organizations with a total market capitalization reached 304 trillion (20 billion) in 31% of GDP, approximately 200,000 securities accounts and 55 securities companies, 18 fund management companies, 61 depository institution. By the end of March 2007, the stock market tends to go down, stock exchange is delayed, meanwhile, more and more nascent securities companies which led to the fierce competition among securities companies. In recent years, the impact of global economy as well as the difficulties and challenges of domestic economy make the increasingly fierce competition with the high risk of rejection.
To help businesses get the right strategy to survive and grow in the current period, we have chosen the topic "Business strategy planning of Ho chi minh Securities company in the period 2011-2015 " 2. The research objective of the capstone project report: Systemize the basics of stock services of a securities company to be the theoretical basis for research. Assess the business situation of the company, the strengths, weaknesses, opportunities and challenges to build the appropriate business strategy for the company. Systemize the proposes and solutions to implement business strategies for company 3.
Objects and scope of the research Financial reports, business operation reports, annual reports over years… Company activities, competitors reports analyst. - Brokerage: brokerage, deposit, advance payment of securities, pledged. Capstone Project Report Gamba01.X0610 - Group 6 5 - Advisory services: listing advisory, underwriting securities issuance agent, equalization consultancy, investment consultancy. Other services: investment portfolio management, shareholders investment.
Offer specific business strategies for companies in the period 2011-2015. Research Methodology Research methods are mainly used in this paper is the analysis, synthesis and comparative approach. Through these methods the report evaluates services of HSC securities companies, from which proposes solutions to the development of the HSC securities company services. In addition, the report also uses a number of other methods such as statistical methods, interpretation, inductive.
Report structure Besides the introduction, conclusion and reference list, the report is structured into three chapters: Chapter 1: Competitive strategy of HSC securities company Chapter 2: Situation analysis of HSC securities company Chapter 3: Proposed strategy and solutions of competitive strategy for HSC securities CHAPTER 1: COMPETITIVE STRATEGY OF HSC SECURITIES COMPANY 1.1 Overview of securities business activity 1.1 Definition of stock market In the beginning period of producing goods and circulating money, banking system was early appeared to mobilize idle capital in society to re-distribute to national economy according to credit principle. Thus, a capital flow channel connecting them and going through financial intermediaries mainly the banking system, which is called the indirect capital flow channel. When social production and circulation of commodities develops in an advanced stage, those who have already qualified for the legal environment, financial environment and so on Capstone Project Report Gamba01.X0610 - Group 6 6 transferring directly their capital to invest in production without going through financial intermediaries and have to go through the stock market - a market which directly led from a capital pole to another capital pole basing investment principles. This is called direct capital flow channel According to studies on direct and indirect capital flow channel, besides advantages of direct capital flow, which can not appear in indirect one, stock market stabilizes capital in national economy through trading and alienation among parties of economy.
Therefore, when production develops in advanced stage requiring the creation of national securities markets. Furthermore, in terms of internationalization of economic life and society today, globalization of stock market operation is necessary and will develop Thus, what is stock market? There are many different definitions of stock market; however, in general, there is a common one: Stock market is a market where people buy them to sell, alienate and exchange securities for profitable purpose The stock market must exist in a place where buying and selling securities that are made. In the process of developing and improving stock markets in countries with the long history of goods production and circulation as America, Britain, France, etc. where it exists in two forms: organized and no-organized stock markets Typical form of the organized securities market is Stock Exchange.
Any purchase, sale, transfer or exchange of securities must be conducted in Operations Centre and by the members of the Operations Centre under the regulation of stock exchange. Stock exchange may be state-owned one, joint stock company or partnership and all have the legal status of securities trading activities. There are some famous stock exchange in the world such as NYSE (New York Stock Exchange), TSE (Tokyo Stock Exchange), LSE (London Stock Exchange), etc. Capstone Project Report Gamba01.X0610 - Group 6 7 The no-organized securities market is existed without formation of an organization; it could be anywhere where buyers and sellers meet directly to carry out the transaction.
There may be at the counter at any bank. This market formation so-called is transaction market over the counter (OTC) Today, thanks to the revolutionary achievements of information technology, internet system binds members of the market together. Thus, the exchange of information or conducting securities transactions is no need to come bank office and be able to proceed immediately in computer. This is a form of advanced non- organized stock market in the last decade.
This market has not yet had official name, some people call it the Third Market 1.2 Characteristics of Securities Market Function of Securities Market Mobilizing capital for the economy. When investors buy securities issued by companies, some of their idle money is come into production and business activities and thereby contribute to the expansion of social production. Through the stock market, the Government and local authorities can raise funds for the intended use and infrastructure investment in economic development, serving the needs of society Providing investment environment for the public: Stock market provides a healthy investment environment with abundant opportunities for the public. The securities types in market are very different in nature, duration and risk.
This allows investors to choose the goods in accordance with ability, goals and hobbies Creating liquidity for the securities: Thanks to stock market, investors can convert their securities into cash property or other securities when they want. Liquidity is one of the attractive features of the securities vectors. This factor reflects the flexibility and safety of capital. The more dynamic and effective Stock market operations are, the more liquid the securities traded in the market are Evaluating business operation: the operation of the businesses reflected generally and precisely through securities.
It makes evaluation and comparison of Capstone Project Report Gamba01.X0610 - Group 6 8 business operations faster and more convenient. Therefore, it also creates a healthy competition environment to improve the efficiency of capital and stimulate the application of new technology and product innovation Creating an environment to assist the Government to implement macroeconomic policies Securities market indicators reflect sensitively and accurately the economy's dynamics. The increasing price of securities means the expansion of investment and the growing economy. On the opposite site, decreasing stock price shows the negative signs of the economy.
Therefore, the stock market is considered as barometer of the economy and an important tool to assist the Government to implement macroeconomic policies. Thanks to securities market, the government can buy and sell government bonds to generate revenue to offset budget deficits and inflation management. In addition, the Government can also use some policies and measures to affect the stock and orient investments to ensure the balanced development of economy. Securities market Structure Analyzing the flow of securities on market, there are two kinds: 1.
Primary market: is market sale of newly issued securities. On this market, capital investment will be transferred to the publisher by investors buying newly issued securities 2. Secondary market: is A market for trading of securities issued on the primary market. Secondary market is to ensure liquidity for the securities issued.
Secondary market is to exchange, buy and sell securities which have already been issued. Investors buy to resell the securities for the one of purposes: keeping financial assets, receiving a fixed annual income, and enjoying the price difference. Thus, the secondary market does not provide capital to businesses, and then what is benefit? If there was no secondary market, there wouldn’t have primary market, if the securities issued couldn’t flow on the secondary market, investors wouldn’t not interested in the purchase and holding of securities issued (especially shares, a Capstone Project Report Gamba01.X0610 - Group 6 9 indefinite security). Since Trading of shares of an organization listed on the stock market reflects investors' confidence in the organization, the listed organizations who want to raise capital, they may continue to issue stocks or bonds in next time.