CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration INTRODUCTION. Objectives of the study. Object and scope of the study. Methodology of the study.9 THEORETICAL BACK GROUND OF BUSINESS STRATEGY FORMULATION.
OVERVIEW OF BUSINESS STRAEGY. Affecting factors to strategies of an enterprise.2 PROCESS OF STRATEGY FORMULATION.1 Strategy formulation by SWOT analysis.2 Tools for strategy formulation.ROLE OF BUSINESS STRATEGY FORMULATION TO ENTERPRISES.19 REAL SITUATION OF CREDIT SERVICE FOR SMALL AND MEDIUM-SIZED ENTERPRISES AT AGRIBANK – NORTH HANOI BRANCH. INTRODUCTION OF AGRIBANK – NORTH HANOI BRANCH.1 Process of establishment and development.2 Organizational structure of the Branch.3 Products and services. REAL SITUATION OF CREDIT SERVICE FOR SMALL AND MEDIUM-SIZED ENTERPRISES AT AGRIBANK – HANOI NORTH BRANCH.1 Scale of credit service for small and medium-sized enterprises.3 Non-performing loans of SMEs.4 Potential of banks in the region.X0210_Strategic Management _group 7 Page 1 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration 2.3 ANALYSIS OF ENVIRONMENT FACTORS AFFECTING CREDIT SERVICE FOR SMES AT AGRIBANK – NORTH HANOI BRANCH.1 External environment analysis.2 External Factor Evaluation (EFE) Matrix.3 Competitive profile matrix.4 Internal factor analysis.5 Internal Factor Evaluation (IFE) Matrix.6 Internal-External (IE) Matrix.
46 STRATEGY ON EXPANDING AnD DEVELOPING CREDIT SERVICE FOR SMEs AT VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT – NORTH HANOI BRANCH IN 2011 – 2015 PERIOD.1 ORIENTATION ON EXPANDING AND DEVELOPING CREDIT SERVICE FOR SMALL AND MEDIUM-SIZED ENTERPRISES OF VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT – NORTH HANOI BRANCH IN 2011 – 2015 PERIOD.1 Motto of AgriBank – North Hanoi Branch.2 Objective of business strategy by 2015.2 SELECTING STRATEGY ON EXPANDING AND DEVELOPING CREDIT SERVICE FOR SMALL AND MEDIUM-SIZED ETNERPRISES AT VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT IN 2011 – 2015 PERIOD.4 Determination on strategy of AgriBank – North Hanoi Branch in 2011 – 2015 period54 3.3 SOLUTIONS TO IMPLEMENT THE STRATEGY ON EXPANDING AND DEVELOPING CREDIT SERVICE FOR SMALL AND MEDIUM-SIZED ENTERPRISE OF AGRIBANK – NORTH HANOI BRANCH IN 2011 – 2015 PERIOD.1 Diversifying the investment portfolios.X0210_Strategic Management _group 7 Page 2 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration 3.3 Expanding the network and attracting customers. Improving organizational model and boosting quality of human resources.4 ROADMAP FOR IMPLEMENTING STRATEGIC SOLUTIONS. Recommendations to the State and the Government. Recommendations to the State Bank of Vietnam (SBV).
Recommendations to Vietnam Bank for Agriculture and Rural Development.X0210_Strategic Management _group 7 Page 3 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration Table 1-1: Five Forces Model by Michael E.1: Process of strategy formulation by SWOT 12 Table 1-3: SWOT Matrix 14 Figure 1.2: QSPM Matrix 15 Figure 1.3 -Organizational structure of the Head Office17 Table 2.1 Results of capital mobilization at AgriBank - North Hanoi Branch in 2008- 2010 period 18 Table 2.2 Results of credit activity at AgriBank – North Hanoi Branch in 2008 – 2010 period 19 Table 2.3 Financial results of AgriBank – North Hanoi Branch in 2008 – 2010 period 20 Table 2.4 The number of small and medium-sized enterprises having credit relation with AgriBank – Hanoi North Branch 21 Table 2.6 Branch’s turnover from lending, loan collection and outstanding loans from enterprises in 2008- 2010 period 22 Table 2.7 Credit capital turnover of SMEs in 2008-2010 period 23 Table 2.8 Non-performing loans of enterprises and SMEs 24 Table 2.9 Competitive profit matrix of competitors 25 Table 2.10 : External Factor Evaluation (EFE)Matrix of Agribank – North Hanoi Branch 32 Table 2.11 Competitive profile matrix 35 Table2.12: Human resources by qualification in 2008 – 2010 period 37 Table 2.13 – Internal Factor Evaluation (IFE) Matrix 40 Figure 2.1 Internal-External Matrix 41 Table 3.1 SWOT Matrix 44 Table 3.2 Strategic Position & Action Evaluation matrix (SPACE)45 Figure 3.1: Strategies on SPACE Matrix 47 Table 3.3 QSPM Matrix 48 Table 3.4 Selected strategy and supporting strategy 50 Gamba 01.X0210_Strategic Management _group 7 Page 4 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration LIST OF ABBREVIATIONS Agribank Vietnam Bank for Agriculture and Rural Development SMEs Small and Medium Enterprises ATM Automated teller machine CA Competitive Advantage ES Enviroment Stability EFE External Factor Evaluation Matrix FS Financials Strengths GDP Gross domestic product IS Internals Strenghts IFE Internal Factor Evaluation Matrix IE Internal External Matrix QSPM Quantitative Strategic Planning Matrix SWOT Strengths, Weaknesses, Opportunities,Threats SO Strengths , Opportunities ST Strengths, Threats SPACE Strategic Position & ACtion Evaluation matrix WO Weaknesses, Opportunities WT Weaknesses, Threats Gamba 01.X0210_Strategic Management _group 7 Page 5 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration ACKNOWLEDGEMENT With the assigned task of formulating business strategy for a unit in the scope of capstone project report, besides our great efforts in studying, this capstone project report would not have been possible without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study. First and foremost, I would like to give my utmost gratitude to the Board of Directors and teachers of the Center for Educational Technology and Career Development (ETC), National University, Hanoi; and Griggs University, USA for their supports in studying for the class of Gamba -X0210, particularly group 07. My sincere thanks also go to the Board of Directors and the heads of departments in the Banks for Agriculture and Rural Development, the Branch of Northern Hanoi for offering me valuable insights and documents in the relevance of the study to fulfill this research. Because of some mistakes caused by the time limit, we would like to receive the teachers’ invaluable helps and opinions to perfect our research as well as develop further research which serves business efficiency in the recent integration situation.
We all commit that this paper is the result of our group’s efforts in studying; also, all data and information used in this capstone project report are authentic and clearly cited.X0210_Strategic Management _group 7 Page 6 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration INTRODUCTION 1. Theoretical background Under the situation of an increasingly competitive business environment due to the globally economic integration, Vietnamese companies operating in all industries have to face fierce competition of international rivals with high financial capacity and long history. The pressures are much higher as in the banking sector; Agibank- North Hanoi Branch has not got acquainted with the competition from other commercial banks in the market. Although Agribank is one of the leading banks in implementing the State’s monetary policies, constraining and reducing inflation, stabilizing monetary market and enhancing economic development, it is required that the bank, under the pressure of competition and capitalization, should obtain the right opportunities to develop sources of competitive advantages.
In order to develop a competitive advantage, as well as increase competitiveness in the banking system, Agribank – North Hanoi Branch should well create formulate 2. Objectives of the study - Organizing and reviewing literature and theories of strategic management; - Analyzing and evaluating business performance of Agribank – North Hanoi Branch; - Proposing strategic solutions for Agribank – North Hanoi Branch in 2010- 2015 period. Object and scope of the study - Scope: within the Vietnamese market during the period of 2010- 2015. - Objects: Strategies for expanding and developing credit service for small and medium –sized enterprises in Agribank – North Hanoi Branch.
Methodology of the study + Data collection method - Data offered by Agribank – North Hanoi Branch including annual reports, performance reports, equity and liability reports and other related data; - Data collected from financial reports, internet, newspapers and magazines, etc. relating to the banking markets and other commercial banks.X0210_Strategic Management _group 7 Page 7 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration + Data analysis method - Research methods of secondary data reviewing the market’s scale, structure and trends; - Comparative method: a popular method. This method provides an explanation about the extent of relationship between different variables including absolute or relative ones in term of times (one period over another period) or place (one bank over another bank), etc. - Individual evaluation method: analysis of each issue, indicator, and phenomenon; and a comprehensive analysis assessing all the Bank’s activities.
Structure of the capstone project report TOPIC “Strategy on expanding and developing credit service for small and medium-sized enterprises at Vietnam Bank for Agriculture and Rural Development – North Hanoi Branch in 2011 - 2015 period” Chapter 1: Theoretical background of business strategy formulation Chapter 2: Real situation of credit service for small and medium-sized enterprises at Agribank – North Hanoi Branch Chapter 3: Strategy expanding and developing credit service for small and medium-sized enterprises at Vietnam Bank for Agriculture and Rural Development – North Hanoi Branch in 2011 - 2015 period.X0210_Strategic Management _group 7 Page 8 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration CHAPTER I THEORETICAL BACK GROUND OF BUSINESS STRATEGY FORMULATION 1. OVERVIEW OF BUSINESS STRAEGY 1.1 Concept of business strategy According to Michael Porter, business strategy is the creation of unique and valuable position including differentiation, selection with exchange characteristics to focus all resources to create advantage for the enterprise. In doing business, enterprises must have strategies, deploy strategy, make reasonable decisions, control their activities, taking advantages of opportunities and weaknesses, overcome threats and enhance competitive strength.2 Basic characteristics of business strategy - Business strategy is to clearly define basic objectives and business orientations of an enterprise in each period. - The orientativeness of strategy aims at ensuring continuous and stable development in the volatile business environment.
- Business strategy helps ensure maximum mobilization and optimal combination of resource use of enterprises at present and in the future, promote strengths and grasp opportunities to gain competitive advantage. - Business strategy is reflected in a continuous process. - Business strategy always has aggressive spirit and gaining victory in the business market. - Business strategy is often built in a long period (3,5,10 years).2 Strategy classification Many types of strategies are used in an organization; however, there are three levels of strategies used: - Corporate level strategy: sets out objectives and business activities of a company, making policies and basic plans to realize these objectives.X0210_Strategic Management _group 7 Page 9 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Global Advanced Master of Business Administration - Business level strategy: determines business environment of the Company, market segment and products for each type of market.
- Functional level strategy: Determines solutions and plans for each business fields. Affecting factors to strategies of an enterprise 1. Macro-environment (1) Macro-economic environment: Macro-economic environment always has influence on enterprises and the industry, and strong influence on banking sector. Macro-economic environment concentrates on some influential variables such as GDP, inflation rate, base interest rate, the availability of credit system, income and consumption capacity.
(2) Technological environment: Technological environment has a strong influence on business activities of banking system because technology can support bank by quickly, favorably and accurately supplying services. (3) Socio-cultural environment: includes socio-cultural factors having influence on the life and behavior of the people, via that affecting the structure of demand, consumer behaviors and consumption trend of customers. (4) Demographic environment: Population, gender, age, geographical distribution, community of ethnic groups and income distribution. (5) Political – legal environment: includes a system of viewports, policies of the state, legal system, especially the laws related to business, political movement within the country and in the world.
(6) Global environment: includes important international political events, characteristics of institutions and basic culture in the global markets, related global markets, current changing markets, regionalization trend, economic relation among countries, regions are factors having direct influence on strategic management.