GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS DEVELOPING STRATEGY 2011 – 2015’s OF VIETNAM NATIONAL AVIATION INSURANCE COMPANY Group Number: 02 Student’s name: DINH QUY CUONG NGUYEN MAI HANH LE MINH TRONG NGUYEN HUY LIEU 0 Ha Noi 2011 ACKNOWLEDGEMENTS During the implementation of this thesis we have received much help and encourage more business agencies, and individuals We would like to thank teachers of all subjects - A respected teachers who dedicated guide and encourage us perform complete this master of capstone project reportcapstone project report. We would like to thank the Board of Manager, the Director of Vietnam National Aviation Insurance Company, and colleagues have created favorable conditions, and help us in every way during the learning process in MBA course and make the economic master of capstone project report at Vietnam National Aviation Insurance Company We would like to thank colleagues working in enterprises, collective grade students: GaMBA.X0810 2010 course Griggs University has helped us in providing the documents and data for the implementation of this capstone project reportthesis. Many thanks! 1 COMMITMENTS Our group would like to commit: This theme is the research result of our group, not of any individual in the group. Analyses in the theme of our group base on theory learned at class GaMBA.X0810 together with materials provided by the school and other references.
Data mentioned in the research are true and have clear origin. After being consulted by Subject Group of the school, our group has acquired and supplemented and amended the report in conformability to the requirements of the program, and ensure objective independence in our own research. 2 TABLE OF CONTENS Pages Acknowledgements 1 Commitment 2 Table of contents 3 List of Abbreviations 7 List of tables 8 List of figures and charts 9 INTRODUCTION 10 1. Reasons for select theme 10 2.
Research object and scale 11 4. Scientific implication of the theme 11 6. Theme structure 11 Chapter I: Rationale of the overall business strategy 12 1. The concept of strategy 12 1.
International Business Strategy 13 3 1. Role of strategy 13 1. Build process strategy 14 1. Analysis of external environment 14 1.
Analysis of general environment 14 1. Analysis environment sector 16 1. Analysis of internal environment 17 1. Human resources and organizational 17 1.
Technique and technology 18 1. SWOT matrix synthesis 18 1. Strategy assessment test 20 Chapter 2: Analysis strategy bases formulation 21 2. Introduction about Vietnam National Aviation Insurance Company 21 2.2 Products and services of VNI 22 2.3 Operation situation of VNI from 2008 to 2010 24 2.
Analysis business strategic of VNI 30 2. Analysis of external environment 30 2. Political, Governmental, Legal environment 32 4 2. Cultural and Social environment 33 2.
The Nature of environment 35 2. Analysis industry environment 35 2. External Factor Elements Matrix (EFE) 44 2. Competitive Profile Matrix (CPM) 48 2.
Analysis internal factor of VNI 50 2. Finance and insurance capacity 50 2. Human resources and organization 51 2. Management and Administration 53 2.
Build a culture of VNI 57 2. Internal Factor Elements Matrix (IFE) 58 Chapter III: Building business strategy for VNI to 2015’s 60 3.1 Perspective of the government's strategic direction for Vietnam's 60 Insurance market to 2015 3.2 Perspective of building business strategy to 2015 61 3. The objective of building 61 3. The objective of the VNI to 2015 62 3.
Develop strategic plan: SWOT Matrix 63 3. The Grand Strategic Matrix 65 3. Analysis of the proposed strategy 66 5 3. The decision stage selection 70 3.
Quantitative Strategic Planning Matrix (QSPM) 70 3. Measures of strategy implement 75 3. Marketing solutions and customer care 75 3. Invest to modern information technology solutions 82 3.
Human resource development solutions 83 3.6 Organizational structure solutions 84 3. Research and development Solution 85 3. Building corporate culture 87 3. Company 90 CONCLUSION 91 REFERENCES 93 6 List of Abbreviations VNI: Vietnam National Aviation Insurance Company HO: Head Office VPKV: Regional Office BAOVIET: Vietnam Insurance Company BAOMINH: Bao Minh Insurance Company PVI: Petro Vietnam Insurance Company PJICO: Petrolimex Joint Stock Insurance Company PTI: Post and Telecom Insurance Company SWOT: S (strengths) and W (weakness O (opportunities) and T (threatened).
VNA: Vietnam Airlines. TKV: Coal and Minerals of Vietnam GELEXIMCO: Import & Export Company of Hanoi LILAMA: Vietnam Machinery Erection Corporation VIA: Vietnam Insurance Assocciation QSPM: Quantitative Strategic Planning Matrix EFE: Matrix of external factor elements CPM: Matrix photo competition IFE: Matrix of Internal Factor Elements 7 List of Tables Pages Table 1: List of Insurance capital registered 22 Table 2: Business result from 2008 to 2010 25 Table 3: Table 3: Business results in 2008 26 Table 4: Table 4: Business results of each branch in 2008 27 Table 5: Table 5: Business results in 2009 27 Table 6: Table 4: Business results of each branch in 2009 28 Table 7: Table 5: Business results in 2010 29 Table 8: Table 4: Business results of each branch in 2010 29 Table 9: Total premium of non-life insurance 2008-2010 35 Table 10: Business results of non-life insurance enterprises from 2008 to 2010 37 Table 11: Matrix of external factor elements (EFE) 46 Table 12: Matrix photo competition (CPM) 49 Table 13: Matrix of Internal Factor Elements (IFE) 58 Table 14: Growth of non-life insurance premiums 2011 - 2015 periods 61 Table 15: SWOT Matrix 63 Table 16: The Grand Strategic Matrix 66 Table 17: QSPM - SO Strategic group 70 Table 18: QSMP - ST Strategy group 72 Table 19: QSMP – WO Strategy group 72 Table 20: QSMP – WT Strategy group 73 8 List of Figures, Graphs Pages Figure 1: Business result from 2008 to 2010 26 Figure 2: Market share of corporate non-life insurance in 2008 40 Figure 3: Market share of corporate non-life insurance in 2009 41 Figure 4: Market share of corporate non-life insurance in 2010 41 Figure 5: VNI’s organization chart 51 Figure 6: Service Procedure 77 Figure 7: Claim Procedure 78 9 INTRODUCTION 1. Reasons for select theme: Insurance business activities covered the role of special importance for the economic and social development of each country: Insurance Business is considered as a shield to protect economic institutions and individual co- mobilize capital for development investment. In recent years, along with the socio-economic development of the country, the business of insurance has grown significantly with amazing speed and maturity in many aspects.
The insurance companies can meet the requirements set forth in the economy and improve business performance in the context of fierce competition; businesses need to constantly improve their development. Therefore, the strategy becomes a necessity indispensable step in the operation of insurance enterprises. Vietnam National Aviation Insurance Company (VNI) was born in the context of the global economic situation and the country has many complicated and unpredictable. However, the insurance market in general and non-life insurance in particular, Vietnam is considered potentially rich, diverse and becoming more professional.
The number of companies operating in the insurance sector and gradually increase satisfaction of customers. In the future, the insurance market operators more difficult and increasingly fierce competition especially with foreign enterprises. In this context, for survival and sustainable development in Vietnam's insurance market, the company should develop a strategy for development in the future. Wishing to build a business strategy appropriate for VNI, our team has chosen the theme "BUSINESS 10 DEVELOPING STRATEGY 2011 – 2015’s OF VIETNAM NATIONAL AVIATION INSURANCE COMPANY" to make capstone project report.
Research Objective Based on a theoretical basis for strategic planning and general business insurance market in Vietnam, the project has developed the research status of Vietnam's insurance sector, the development trend of the sector, thereby building a business strategies and solutions implementation phase of the Company from 2011 to 2015 3. Research object and scale Research subjects of business activities of VNI company from inception to date, including in depth analysis of the external environment and internal environment of VNI, the competition to identify the strengths , weaknesses, opportunities and threats for the development of the company since then choose the appropriate strategy for the company's operations. Research Methods Research methods are mainly analytical methods of dialectical materialism and allow historical materialism, the statistical method accounting, the method of comparing and aggregating data, forecasting methods, logical approach. Scientific implication of the theme Strategic management is an economic science is relatively new in our country.
In fact today, there are few companies in Vietnam to build a serious strategy, science. Subject is expected to contribute a little more practical experience in applying strategic management to develop strategies for the company, thereby contributing to the strategic management experience of its own Vietnam. Theme structure Besides the introduction and conclusion, subjects include three chapters: Chapter 1: Rationale of the overall business strategy 11 Chapter 2: Analysis based strategy for VNI Chapter 3: Building business strategies for Vietnam National Aviation Insurance Company to 2015’s CHAPTER I RATIONALE OF THE OVERALL BUSINESS STRATEGY 1. The concept of strategy: Business strategy of enterprise is the selection, and coordinates the measures (strength of the business) with time, the body, the space (fields) in the environmental analysis and the ability to source capability of how to achieve goals consistent with trends of the business.
The strategy is a rather abstract concept, the concept of strategy exists only in the mind, in thinking of those who are interested in strategies, such as inventions, creative strategies on how to measure legal action in the future of the enterprise to achieve the goals most important basic and most effective way. The orientation of the strategy to ensure continuous business development firm in the business environment is constantly fluctuating. Decisions must be focused on the highest level leaders of the enterprise, can guarantee the accuracy of long-term decisions (product, market, investment and training .) and the secret information on market competition. Strategy is always forward-thinking public to take advantage in the marketplace; the strategy must be planned and executed on the development of business opportunities and to recognize the comparative advantage of enterprises in order to achieve the highest business results.
Company strategy: 12 Corporate level strategy clearly defined purpose and objectives of the company, identify the business that the company pursued, the distribution of resources between business, creating policies and plan to achieve the basic objectives of the company. Business strategy: Strategy for the company's business objectives determined each business unit must be completed to contribute to the fulfillment of the target company level. This strategy is planned to select products or markets for its own business activities within the company, the tricks to compete with competitors in the industry. Functions strategy: Functional level strategy focuses areas of operation, the business sector to support the allocation of corporate strategy.
International Business Strategy: Today globalization is going strong throughout the world. Company has formation business strategy not only within the country, which should affect the outside world. International Business Strategy formed on the basis of calculations and considerations to improve the value chain and develop a competitive advantage. Role of strategy: In the market economy is fiercely competitive, a business wants to have a successful strategy, the enterprise must understand the advantage of changing market, find the key factor for success, to exploit the advantages of the business, understand the weaknesses of the business, understand the competition, the desire of the customer, know how to approach new markets which made the creative decision to implement activities or cut back operations at the time and location specified.
Government efforts in order to provide an optimal strategy, it has specific effects to the basic functions of business are: 13 - Provides an enterprise business direction specific and effective as the guideline for all activities of the business functions, helping businesses develop a competitive advantage to strengthen business development more market share - Help enterprises limit the uncertainty to the minimum risk, enabling businesses long-term stability and continuous development. BUILD PROCESS STRATEGY 1.