THANK YOU LETTER In order to complete this assignment, we have received very precious help from the individuals and organizations. We would like to thank the overall staff of Vietcombank Bac Ninh who have facilitated and have provided us valuable assistance in terms of collecting and processing the materials for our research to complete this assignment. We hereby commit the content of this assignment is the effort in the research process from choosing the topics to analyze and to give our own team ideas on the basis of reference a document (with citations attached) We are also committing that these assignments haven’t been handed in for any other research or other training program. Bac Ninh, 25/07/ 2010 Group 10 1 TABLE OF CONTENTS THANK YOU LETTER .1 TABLE OF CONTENTS .2 LIST OF ABBREVIATION .6 LIST OF TABLE .8 CHAPTER 1 – GENERAL THEORY OF BUILDING BUSINESS STRATEGY.
The definition, characteristics and the role of business strategy in the enterprise: .1 The concept of business strategy:. Characteristics of business strategy:. The role of business strategy:. Process of business strategic management:.
Determining the mission and the strategic targets of business strategy: 14 1.2 Analysis business environment of enterprises:. Ananlysis of macro environment:. Micro environment analysis .3 Analysis of internal environment in the enterprise. Synthesis of analysis and forecasting business environment .1 Table of synthesis analysis and forecasting of inside and outside business environment: .2 Matrix to evaluate the business environment: .5 SWOT analysis and combined strategy.
Selection the optimal strategy .8 Testing and making adjustment for business strategy:. ANALYSIS AND EVALUATION THE CURRENT BUSINESS SITUATION IN VIETCOMBANK BAC NINH. Overview of Vietcombank Bac Ninh. Overview of Vietcombank.
Overview of Vietcombank Bac Ninh: .1 Results of business activities from 2005 – 2009:. Analysis of business environment and internal factors in VCB Bac Ninh. Analysis of macro environment:. Socio-economic environment:.
Analysis of micro environment (industry environment):. Supplier and customer:. Identify the opportunities and threats of VCB Bac Ninh. Synthesis of analysis external environment:.
Analysis internal environment of VCB Bac Ninh. The process of providing banking services by Vietcombank Bac Ninh – Production process:. Evaluation financial resources of Vietcombank Bac Ninh. Identify the targeted market: .2 Products and services:.
Building corporate culture in the VCB Bac Ninh: .5 Evaluation the service quality:. Business management system. Research and development activities (R & D). Identify the strengths and weakness of VCB Bac Ninh.
Synthesis of analysis internal factors environment of VCB Bac Ninh (IFE): 60 2. Evaluations on the current business strategy of VCB Bac Ninh:. The development objective of the joint-stock commercial bank for Foreign Trade of Vietnam by 2015:. Development objective of the Vietcombank- Bac Ninh branch in the period 2010 to 2015.
The development objectives of the branch specific period 2010 to 2020. Construction and selection of business strategy for the development of Vietcombank Bac Ninh in the period 2010 to 2015. Basis for formulating strategies. Strategies formation from the SWOT matrix: .3 Analysis the I-E matrix.
Selection the optimal strategy:. Strategy implementation solutions. Solution for capital source development:. Solutions to expand operations and distribution channels.
Solutions for training high quality human resources to improve customer service quality. Solutions for promoting the differentiation of service quality and diversification of banking products and services:. Solutions for the marketing. Increase the risk management capacity: .1 Some petitions to the Government, Bac Ninh province’s authorities: .2: Making innovation for the operation of the State bank:.
Petition and proposal with the central VCB .84 LIST OF REFERENCE. 86 LIST OF ABBREVIATION 5 ATM :Asynchronous Transfer Mode EXIMBANK : Vietnam export and import commercial joint-stock bank GDP : Gross domestic product SBV : The State bank of Vietnam SACOMBANK : Sai Gon Thuong Tin bank CI : Credit institution TECHCOMBANK : Vietnam Technological and Commercial Joint- stock Bank USD : United State Dollar VND : Vietnam dong VCB : Bank for foreign trade of Vietnam WTO : World Trade Organization ACB : Asia commercial bank ANZ : Australia and New Zealand Bank HSBC : Hongkong Shanghai Bank Corporate AFTA : Asean Free trade Area CD : Certification of Deposit T.Os : Transaction Offices IMF : International Monetary Fund NPL : Non Performance Loan QD-NHNN : Decision of State Bank of Vietnam SMS : Short Message Service QSPM : Quantifies strategic planning matrix IT : Information technology POS : Point of service ODA : Official Development Assistance 6 LIST OF TABLE Table 1.1 List general analysis and forecasting inside and outside business environment: Table 1.2 Inside elements evaluation matrix (IFE) Table 1.3 External factors evaluation matrix (EFE) Table 1.4 SWOT matrix Table 1.5 QSPM Matrix Table 2.1 Some basic activity indicator of VCB Bac Ninh from 2005 to 2009 Table 2.2 Credit structure Table 2.3 Capital mobilization structure Table 2.4 Total market share of commercial banks in Bac Ninh province from 2007 to 2009 Table 2.5 Synthesis of major indicators of some big banks in the Bac Ninh province at 31/12/2009.6 Image competition matrix Table 2.7 External factor evaluation matrix (EFE) Table 2.8 Some financial indicators of VCB Bac Ninh from 2007 to 2009 Table 2.9 Matrix to evaluate the internal factors environment Table 3.1 Determination of sustainable competitive advantage of VCB Bac Ninh Table 3.2 Table of SWOT analysis Table 3.3 I-E matrix, systhesis of internal and external factors of the branch Table 3.4 Matrix of main strategies Table 3.5 QSPM matrix, the group of S/O Table 3.6 QSPM matrix, group S/T 7 INTRODUCTION 1. The necessity of the topic Vietnam's financial market is facing with both opportunities and challenges of the international economic integration trend. In the recent years, Vietnam's financial market is expanding its activities scope which is almost no border to both create conditions to strengthen the cooperation and deepen the fierce competitive process.
Objectively, compared to other foreign banks, the commercial banks of Vietnam are weak in many aspects such as capital, management experience, business, technology, quality and type of service, as well as the anti-risk capability. This requires banks to have a suitable solution for the development and improving competitiveness, holding the ownership of the domestic financial market and expanding to reach the international financial markets. On the other hand, the competition among domestic commercial banks as well as between the banking sector and domestic financial institutions is becoming fiercer. On the banking and financial markets, there appears increasingly more investment funds, insurance companies, many new banks was licensed to establish.
And the Vietnam's stock market is going is very exciting. All these create more financial investment channels for the enterprises and the residents. The financial institutions are competing directly with banks to raise capital and make investment. Adding that, the competition among the banking sector is taking place intensively.
Starting from the above practical requirements, in order to survive and achieve sustainable development, Vietnam commercial banks need to build a development strategy which is suitable for the specific characteristics of each bank in each stage of development. In addition, the world economic crisis in late 2007 has influenced on the Vietnam economy in general and the banking sector in particular. In 2008 it marked a strong influence to all activities in the banking sector of Vietnam: having difficulties in credit growth due to high inflation; capital mobilization does not increase; erratic fluctuations in exchange rates; banking sector profits decrease 8 dramatically (with some small banks, they are likely to suffer from losses and on the risk of being merged or closed). This crisis is opportunity to help us better identify the opportunities, challenges, strengths, weaknesses of the banking system in our country, which increasingly poses urgent need to develop a suitable business strategy to achieve sustainable development.
In the general context, the Bank for Foreign Trade of Vietnam - Bac Ninh branch also realizes the importance of building a suitable business strategy for the business development and sustainable stability. Our group 10 members are working at the VCB Bac Ninh, with a desire to build a strong bank and a famous brand of Vietcombank in Bac Ninh province, we choose the theme: “BUILDING BUSINESS STRATEGY OF VIETCOMBANK BAC NINH FOR 2010 – 2015 PERIOD” as the topic for our graduation capstone project of the Global Master of Business Administration programs (abbreviation GaMBA) held by the Education Technology Training and Employment System - Hanoi National University link Griggs University - United States. The target of the research: - Systematize the theory of strategic management. - Analysis & evaluation the current business situation in the enterprise - Building business strategy for the enterprise in the period from 2010 – 2015.
Objects and scope of the research: - Object: The Bank for Foreign Trade of Vietnam – Bac Ninh branch - Scope of the research: Applying the basic theory and methodology of strategic management, based on practical and competitive trends in the financial and banking sector to make the contribution to build the business strategy of the Bank for Foreign Trade of Vietnam - Bac Ninh branch. Methodology of the research: Our capstone project uses logic method, synthesis method, statistical method, survey method, comparison method and forecast method. Contribution of the research: Provide the scientific methodology, evaluate the actual situation, give some proposals to improve the building strategy to ensure the development objectives of the Bank for Foreign Trade from 2010 to 2015 6. Research structure: In addition to index and list of abbreviations, list of tables, drawings, introduction, conclusion, reference list, appendix, the content of the capstone is divided into three major chapters: Chapter 1.
The general theory of building business strategy Chapter 2. Analysis and evaluation the current business situation in Vietcombank Bac Ninh. Chapter 3: Selection business strategy for Vietcombank Bac Ninh in the period 2010 - 2015 and implementation solutions. 10 CHAPTER 1 – GENERAL THEORY OF BUILDING BUSINESS STRATEGY 1.
The definition, characteristics and the role of business strategy in the enterprise: 1.1 The concept of business strategy: Economists and researchers are more and more interested in business strategy and have come up with many definitions of the term "business strategy". Each definition has its own characteristics depending on the perspective of each author. Author Glueci supposed that "Strategy is a plan of uniformity, comprehensiveness, and synthesis, designed to ensure that the objectives of the business will be done." According to General Arlleret: "Strategy is the goal determination and measures taken to reach the goals through the policies”. Other authors such as M.
Porter and Alain Threlart consider business strategy as the art of competition on the market and achieving business development. With Chandler, "Strategy is to identify the goals and objectives of the long- term business and to apply a series of actions as well as the allocation of resources needed to achieve these objectives". However, to sum up, strategy is a system of long-term goals, policies and measures on the organization, business, finance, human resources in order to reach the business goals pointed out. From these different ideas above, the concept of business strategy which is supported by many authors are: "Strategy is a series of actions to mobilize resources to achieve a certain purpose".
Characteristics of business strategy: Although there are many concepts and approaches of different categories of strategies, basic features of business strategy is rather united. The basic characteristics are: - Business strategy has its orientation in a long time. It points out the target, the business direction for each specific product. It clearly defines the basic tasks, solutions to step by step achieve their objectives.
Business strategy is flexible, being built for a long time of 5 years or 10 years, and it consists of a continuous process from the stage of construction to the implementation, inspection and supervision.