VIETNAM NATIONAL UNIVERSITY, HA NOI SCHOOL OF BUSINESS NGUYEN XUAN HAI BUILDING BUSINESS STRATEGY FOR BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM SECURITIES JOINT STOCK COMPANY IN PERIOD OF 2012-2015 Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMNISTRATION THESIS Supervisor: Dr. Tran Doan Kim Ha Noi, 2012 TIEU LUAN MOI download : skknchat@gmail.com ABSTRACT BUILDING BUSINESS STRATEGY FOR BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM SECURITIES JOINT STOCK COMPANY IN PERIOD OF 2012-2015 Nguyen Xuan Hai MBA Candidate, 2008-2010 Hanoi School of Business, Vietnam National University Supervisor: Dr. Tran Doan Kim December 2012, 91 pages The world economy has been in more stable phase after economic crisis and is having significant development. Together with general development trend of the world economy, Vietnam is gradually marking position in global economy.
With the open economy, demand on capital in regard to enterprises increases and become diversified. Securities market, by means of a part of market. It is useful took to solve demand on capital. After 11 years of foundation and development, securities market in Vietnam has gained significant achievements and steps.
At present, there are more than 100 securities companies and each of them self-drives to survive and develop after ups and downs in market. The ups and downs of market in 2010 and first half of 2012 have made some securities companies recognize efficiency and adjust their trading activities. BIDV Securities Joint Stock Company (BSC) is one of the first securities companies adjusting their development strategy to be able to have improvement in securities market. With open tendency of economy, BSC has to face up with more and more rivals not only domestic ones but also foreign one with strong finance capacity.
The increase of rivals reduces market share of BSC. Although BSC has many competitive ii TIEU LUAN MOI download : skknchat@gmail.com advantages namely strong finance capacity and trademark and over the past years, BSC always improves to increase prestige and product quality provided customers; BSC must have development strategy in the future against fiercely competitive pressure as present. If applicable, the company can control risks, solid steps and mark position in Vietnam Securities market. In the condition of the difficulties of the economy, the securities industry has faced up to huge challenges.
Developing strengths, eliminating weaknesses, promoting the absolute advantage and competitive advantage will help the businesses in the field of securities find the way to survive and develop in the current period. Which direction should be selected? what strategy should be chosen? The limitation of resources and the current period is extremely difficult for securities companies. Thanks to discussions with experts in the field of securities as well as colleagues, leaders in the BSC and the knowledge achieved from the course, the author has contributed a little to find out strategy and direction for the BSC in the future. With all the general information about the stock market, the author would like to bring to the reader an overview of the stock market in Vietnam, point out the strengths and the weaknesses of the BSC as a basis for selection of strategic development in the future.
All the solutions are orientedly given, accompanied with the instability of the stock market; the author hope to contribute a lot of useful ideas for development of the BSC in the future. iii TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENT ACKNOWLEDGMENTS. iv TABLE OF CONTENT. vi LIST OF TABLE.
viii LIST OF FIGURE. ix LIST OF CHART. x LIST OF SYMBOLS AND ABBREVIATIONS. 1 CHAPTER 1: THEORETICAL FOUNDATION OF BUILDING BUSINESS STRATEGY OF ENTERPRISE .1 Overview about business strategy of enterprise .2 Typical features of business strategy .3 The role of business strategy in enterprise .2 Process of building business strategy of enterprise.1 Define Vision, Mission, Target, Policy and Core thinking .2 Analyzing external environment .3 Analyzing internal environment .4 Building business strategy .5 Distinguishing three strategic types: .3 Tools used to analyze strategies.2 Quantitative Strategic Planning Matrix (QSPM).
17 CHAPTER 2: ANALYSIS OF STRATEGY CONSTRUCTION BASIS OF BIDV SECURITIES JOINT STOCK COMPANY (BSC) .1 Overview of BSC .1 History of formation and development. 20 vi TIEU LUAN MOI download : skknchat@gmail.4 Line of vision, mission.5 Philosophy, viewpoint of business .2 Outside market analysis of BSC .1 Macro market analysis .2 Analysis of securities business sector environment .3 Judgment of opportunity and challenge .3 Analysis of internal environment .2 Business support activity .3 Identifying strength, weakness and building the evaluation matrix of internal environment factor (IFE matrix) of BSC: .4 SWOT matrix of BSC. Orientation for business strategy of BSC in period of 2012 - 2015. Strategic targets of BSC.
Building partial strategies. Selecting business strategy for BSC in period of 2012 - 2015. Solutions for implementing business strategy of BSC. Solutions on human resource.
Solutions on Marketing. Solutions on capital. 91 vii TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLE Table 1. Comparison of some criteria in business activity of BSC with competitors.
External factor matrix affecting BSC (EFE) .4 - Main financial targets of BSC in 2009 – 2011 .5 - Matrix of internal factors of BSC (IFE) .6 SWOT matrix of BSC .1: QSPM matrix of BSC .75 viii TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURE Figure 1.1: PEST model in macro-environment analysis. Porter’s five force model .10 ix TIEU LUAN MOI download : skknchat@gmail.com LIST OF CHART Chart 2.1 GDP growth rate of Vietnam in period 2000 - 2010.2 Inflation of Vietnam in period 2000-2010 .30 x TIEU LUAN MOI download : skknchat@gmail.com LIST OF SYMBOLS AND ABBREVIATIONS 1 BCG Boston Consulting Group 2 FPTS FPT Securities Joint Stock Company 3 HNX Hanoi Securities Trading Department 4 HSC Ho Chi Minh City Securities Joint Stock Company 5 HSX/HOSE Ho Chi Minh City Securities Trading Department 6 QSPM Quantitative Strategic Planning Matrix 7 MBHS MBH Securities Joint Stock Company 8 CSC Capital Securities Joint Stock Company 9 BSC BIDV Securities Stock Company 10 VND Dong xi TIEU LUAN MOI download : skknchat@gmail. The imperativeness of topic The world economy has been in more stable phase after economic crisis and is having significant development. Together with general development trend of the world economy, Vietnam is gradually marking position in global economy.
With the open economy, demand on capital in regard to enterprises increases and become diversified. Securities market, by means of a part of market. It is useful took to solve demand on capital. After 11 years of foundation and development, securities market in Vietnam has gained significant achievements and steps.
At present, there are more than 100 securities companies and each of them self-drives to survive and develop after ups and downs in market. The ups and downs of market in 2010 and first half of 2012 have made some securities companies recognize efficiency and adjust their trading activities. BIDV Securities Joint Stock Company (BSC) is one of the first securities companies adjusting their development strategy to be able to have improvement in securities market. With open tendency of economy, BSC has to face up with more and more rivals not only domestic ones but also foreign one with strong finance capacity.
The increase of rivals reduces market share of BSC. Although BSC has many competitive advantages namely strong finance capacity and trademark and over the past years, BSC always improves to increase prestige and product quality provided customers; BSC must have development strategy in the future against fiercely competitive pressure as present. If applicable, the company can control risks, solid steps and mark position in Vietnam Securities market. Coming from above problems, I realized the particularly important role of building strategy for existence and development of a securities company.
Therefore, I decided to select topic in line with the theme “Building business strategy for BIDV Securities Joint Stock Company in period of 2012-2015". Researching objectives 1 TIEU LUAN MOI download : skknchat@gmail.com To systematize basic knowledge and theory of strategic management and strategy building. To initially approach to actual operations of securities company in particular and Vietnam securities market in general. To apply gained knowledge building strategy for BIDV Securities Joint Stock Company.
Researching scope Researching scope: Trading activities of BIDV Securities Joint Stock Company, Vietnam securities market and some factors in currency market. Researching methods Analysis of data from books, newspaper and internet; Observation from reality of the company; Summary of appraisal about the company; Expert method. Structure thesis Chapter 1: Theoretical foundation about building business strategy for enterprise. Chapter 2: Analyzing foundation for building strategy of BIDV Securities Joint Stock Company.
Chapter 3: Building business strategy of BIDV Securities Joint Stock Company in period of 2012 – 2015. 2 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: THEORETICAL FOUNDATION OF BUILDING BUSINESS STRATEGY OF ENTERPRISE 1.1 Overview about business strategy of enterprise 1.1 Concepts about strategy From the past up to now, there have been many definitions about strategy according to different viewpoint. We would like to introduce and analyze some traditional and modern notions to have relatively entire and extensive view about strategy conception: According to Alfred Chander (1962): “Business strategy covers definition of long term basic target of enterprise, selection of method or action program and allocation of resources to implement that target”1. According to Ansoff H.I (1965): “We can consider strategy as “joint connection” among activities of enterprise and market consuming products, it contains four parts: market scope – product, growth rate (changes conducted by enterprise to match to market scope – definite products), competitive advantages and resonance”2.
According to school of Harvard Business University (1965): “Strategy is system of goals, targets stated under the form of sectors/business activities that the company wants to, entry, size, position that the company wants to achieve and basic policies as well as plans to implement predetermined targets”3. According to William Glueck (1980): “Business strategy is a united, comprehensive and cooperative one designed to ensure the enforcement of basic targets in enterprise” or “Strategy is a united and general one drafted to gain achievements”4.David, 2000: “Concept on strategic management”. (2) (3) : Blocher and associates, 2002: “Strategic Analysis and Strategic Cost Management” 3 TIEU LUAN MOI download : skknchat@gmail.com According Michael Porter: 5“Strategy is the creation of unique and valuable position including differentiation, exchanged selection to focus on resources; from that it brings advantages for organization”. From above definition, we can see that strategy relates to long term and basic goals of an enterprise.
Nevertheless, building and selecting the strategy oriented goals are not enough; strategy must be defined as matching to vision, mission of organization and methods as well as means to reach those goals the most effectively. If applicable, it promotes strengths, overcomes weaknesses, makes use of opportunities and mitigates threats from external environment. Thus, we can define strategy in general as following: “Strategy is a series of complex activities to mobilize resources of organization and gain certain objective. Concepts about business strategy of enterprise As mentioned above, strategy related to goals of an enterprise and set forth strategies must help enterprise gain predetermined goals.
Nevertheless, business strategy has connection to the methods for enterprise to be able to successfully compete in specific market. It relates to strategic decisions about product selection, meeting requirements from customers, holding competitive advantages in comparison with rivals, exploiting and creating new opportunities According to Fred R.David “Business strategy contains means reach to long- term goals”6. It can say that, business strategy is means helping enterprises reach long term goals. Business strategy is not to outline specific actions; it is compressive program, the most effective mobilization solutions for resources with the aim at conducting predetermined goals.