CAPSTONE PROJECT REPORT PLANNING BUSINESS DEVELOPMENT STRATEGY OF EXIMBANK’ VINH BRANCH FOR THE PERIOD 2011-2020 Tran Van Tam Nguyen Thanh Chung Dang Xuan Quang Dang Van Cuong Class: GAMBA01.V03 NGHE AN 2011 1 TABLE OF CONTENTS ABBREVIATIONS.5 THE LIST OF DIAGRAMS, CHARTS AND TABLES. The impressiveness of the theme 10 II. The purpose of the research, the application purpose of the theme 11 III. Scope of the research 11 IV.
Methodology of the study 11 V. Structure of the theme 12 CHAPTER I: THE REASONING BASIS ON STRATEGY AND STRATEGY MANAGEMENT. Meaning and concept of strategy and strategy management 13 1. Concept of strategy and strategy management.
Types of the strategy. Corporate level strategy. Practical business strategy in the banking activities 15 1. Strategy of market share consolidation 15 1.
Strategy of distribution network diversification 15 1. Strategy of differentiation 15 1. Process of Strategy Management 16 2 1. The process of formulating strategy 16 1.
Strategy implementation process 26 1. Summary of chapter 1 27 CHAPTER II: .BUILDING UP BUSINESS STRATEGY OF EXIMBANK’S VINH BRANCH FOR THE PERIOD 2011 - 2020. Overview of Eximbank’s Vinh branch 29 2.1 History of formation and development of Eximbank. Overview of Eximbank’s Vinh branch.
Organizational structure and management apparatus of the company. Main function and duties of Eximbank’s Vinh branch 32 2. Real situation of the business activities of Eximbank’s Vinh branch for the period 2008 – 2010 33 2. Some main targets within the period 2008 – 2010 of Eximbank’s Vinh branch 33 2.2 Market share of Eximbank’s Vinh branch in Nghe An province 34 2.
Analyzing effects of factors of outer environment on business activities of Eximbank 39 2. Economic- political environment 39 2. Socio-cultural environment. Human resource environment.6 Environment of the banking sector and policies on currency credit.
Analysis of the sector environment 54 2. Matrix for evaluating outer factors 60 2. Analyzing factors of internal environment of Eximbank’s Vinh branch 61 2. Technology and infrastructure 62 2.
Products and services of Eximbank’s Vinh branch 63 2. Culture of organization 64 2. Advantages and disadvantages of Eximbank’s Vinh branch 65 2. Matrix for internal factors of Eximbank’s Vinh branch (IFE) 68 2.
Summary of chapter 2 68 CHAPTER III. STRATEGIC SOLUTIONS AND RECOMMENDATIONS. Objective and mission of Eximbank 70 3. Building up the business strategy for Eximbank until the year of 2020 71 3.
The objectives and main targets 71 3. The main strategy and replaceable strategy 77 3. Analysis of QSPM matrix 78 3. Proposing road-map for implementation 85 3.
Solutions relating to the human resources 86 3. Solutions relating to executive management and organizational structure 87 3. Solutions relating to financial capability 87 4 3. Solutions relating to technology 88 3.
Solutions relating to products and services 88 3. Solutions relating to marketing 89 4.4 Proposals and recommendations 91 4.1 For the State Bank 91 4.2 For Eximbank departments and offices 91 4. Summary of chapter 3 92 CONCLUSION 93 REFERENCES 94 APPENDIXES 95 5 ABBREVIATIONS SWOT Strengths, Weaknesses, Opportunities and Challenges EFE Matrix of the external factors IFE Matrix of the internal factors BCG Matrix of MCG QSPM Matrix of QSPM SPACE Matrix of SPACE GDP Gross domestic product LIST OF DIAGRAMS, CHARTS AND TABLES 1. DIAGRAM DIAGRAM Page Diagram 1: Process of the strategy formation 16 2 TABLE TABLE Page Table 1: Report of human resource of Eximbank’s Vinh Branch 2007-2009 30 Table 2: Some business criteria from 2007 to February 2011 32 Table 3: Data of mobilization, lending in Vietnam Dong provided by the 35 banks in the area of Nghe An province 6 Table 4: GDP growth rate of Vietnam through the years 37 Table 5: GDP growth rate of Nghe An through the years 49 Table 6: The actual situation of the main targets of Eximbank’s Vinh branch and 53 the competitive banks Table 7: Matrix of competition image of Eximbank’s Vinh branch 56 Table 8 : Matrix for evaluating outer factors 57 Table 9: Matrix for evaluating outer factors 65 Table 10:SWOT Matrix 69 Table 11: BCG matrix 72 Table 12: Space Matrix 75 Table 13: QSPM matrix (group of S + T) 77 Table 14: QSPM matrix (group of W + O) 78 Table 15: QSPM matrix (group of W+ T) 80 3.
CHART CHART Page Chart 1: Capital source of joint stock commercial banks 33 Chart 2: Ability of capital mobilization 34 Chart 3: Account outstanding 34 Chart 4: BCG matrix 72 7 ASSURAN We assure: Theme“planning business development strategy of Eximbank’s Vinh branch for the period 2011 - 2020 ” is the theme performed by our research Team The data relating to Eximbank’s Vinh branch have been provided by the self -unit.March, 2011 THE IMPLEMENTATION AUTHORS TEAM 8 ACKNOWLEDGEMENTS We would like to extend our sincere thanks to Eximbank’s Vinh branch which supported us enthusiastically in the process of providing data as well as had the working sessions in order to make business strategy for the company. Besides, we would like extend our sincere thank to the professors and doctors - who have given us the skills and knowledge of the corporate governance throughout the entire course. This knowledge is the basic foundation necessary for us to write this theme as well as to be applied in the work practices. In particular, we sincerely thank the Academic Council of Griggs University who has guided us in the process of conducting research.
THE AUTHORS TEAM 9 PREFACE I. The imperativeness of the theme Along with the international integration getting more and more extensive and deeper and deeper, the implementation of commitments under the road-map when joining the World Trade Organization (WTO), Vietnam is witnessing the vigorous changes of the market. Many economic industries have been being opened and will be forced to be opened for the rest of the world creating a very complex business picture where the competitive factor is indispensable for any business sectors, any trade occupations. Vietnamese enterprises are no longer protected by the State subsidiary measures anymore, instead, they have to face the vital issues of competition Vietnam's banking sector is not outside of such picture.
The Vietnamese commercial banks are trying their best to survive and develop in the context of increasingly fierce domestic and overseas competition. The domestic and foreign banks are increasingly forming and expanding their operational size with an aim of creating their own certain position. The planning of business strategy suitable for the specific characteristics of each bank in order to survive and grow in the competition tends has become an urgent need for any banks. Derived from such practice, the author team has selected the theme "Planning business strategy of Eximbank’s Vinh branch for the period 2011-2020," to be the Capstone Project (dissertation) for the big Assignment of the team.
The contents of the theme shall focus on the analysis of the strengths, weaknesses of Eximbank’s Vinh branch and opportunities, threats of the business environment, thus through the tools of the Matrix-es an appropriate business strategy can be selected and business solutions can be set forth in the evolution road-map of the unit. Purpose of the theme research The purpose of the Capstone Project Report is to plan the business strategy for Export Import Joint Stock Commercial Bank (Eximbank) - Vinh branch for the period 10 2011-2020 and propose some measures to implement this strategy in order to facilitate Eximbank’s Vinh branch to become one of the best banks in operating and keep the high ranking position in Vinh area as well as the nationwide. Object and scope of the research The research object of the Capstone Project (dissertation) Report is Eximbank’s Vinh branch's activities as well as its strategic issues and the external environmental factors affecting the business activities of Eximbank’s Vinh branch. The research scope of the Capstone Project report is only limited to a specific economic sector which is the banking sector, the business situation of the Eximbank and of some other competitors on the current market.
Methodology of the study Making surveys and gathering materials for synthesis and analysis subject to the logical methodology; Making surveys of real situation to give out the precise reviews, comparison and collation ; Using the theoretical models of strategic management in a business in order to apply into the specific conditions of the bank with an aim of making strategy planning for the bank. Using the historical methods in combination to analyze, synthesize, combining with the matrix tools which have been learned in the course of the Program and apply them in the research of the business characteristics, financial data in Eximbank’s Vinh branch and a number of the banks of the same sector. Structure of the theme The research theme is designed and presented in three chapters. Chapter 1 presents an overview of the strategic management Chapter two is the chapter focusing on the analyzing and assessing the current actual status of business activities of Eximbank’s Vinh branch in the correlation of the market and the banking sector.
Chapter 3 generalizes the 11 overall research findings thus some solutions and recommendations shall be suggested in order to achieve the goals set forth according to the implementation road-map. CHAPTER I: OVERVIEW OF STRATEGIC MANAGEMENT 12 1. Meaning and concept of the Strategy and the Strategic Management 1. Meaning The market-oriented economy, the internationalization trend of business operations and the increasingly severe existing competitive environment are now gradually pushing back the thought of waiting for good fortune in the business activities.
Instead, success only comes to those who have wisdom, are capable to know the application of the professional knowledge, the knowledge in management, and planning and strategy management in a clear way. For understanding and applying the strategy effectively in business practice managers, business leaders must understand clearly, have thorough study of traditional and modern s concepts about the strategies and strategic management. The concept of strategy and strategic management The concept of strategy, strategic management is mentioned very much in various documents and approached in many different aspects and angles, however under this report our Group only refer to the most common, popular and accessible concepts. The concept of strategy - According to Fred David, strategy is the means to achieve long-term goals.
Business strategy may include: territorial development, diversification of activities, goods and property, product development, market access, reduction of costs, and liquidation of the joint venture. - According to Michael Porter, strategy is the creation of a unique valuable position, including differentiation, the choice of exchangeable nature in order to focus resources from which to create advantages for businesses. - According to John I Thompson, the strategy is a combination of resources, environment and values needed to be achieved - According to William J. Glueck, strategy is a planning of a consistent, comprehensive and coordinated nature being designed to ensure that the basic objectives of the business will be implemented.
The concept of strategic management - According to Alfred Chandler, strategic management is the process of determining the basic long-term goals of the business, selecting ways, methods (modes) or orientations of actions and distributing essential resources to implement those goals. - According to John Pearce and Richard B. Robinson, strategic management is a system of decisions and actions to formulate and implement plans to achieve the objectives of the business. The types of strategy 1.
Corporate-level strategy: + Corporate-level strategy (or master strategy): is the strategy developed for the entire company in all areas in which the company is participating. The objective of this strategy shows he targets that the company wants to reach with an overall view on all operations that the company pursue as well as directions (orientations) and measures to achieve the targets 1. Business strategy: + Business level strategy (field): is built for a business industry with narrow specialization. In case where company participates only in one area of business then the business strategy is also the corporate level strategy.