Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (131)

GeMBA 01V01-Group10 Capstone Project Report ACKNOWLEDGEMENT This project report is the result of researching and writing during the winter of 2009 It has been an interesting and learning experience for our group We are deeply thankful for all our teachers at Global Advanced Master of Business Administration Program for providing us with knowledge and instructions during our time of study We would also like to give our heartfelt thanks to the authors who provide us with valuable books for our report We would also like to give special thanks to all staff at VietinBank Ben Thuy for their cooperation and positive spirit that helped and inspired us in writing i GeMBA 01V01-Group10 Capstone Project Report TABLE OF CONTENTS INTRODUCTION Rationale ……………………………………………… Aims and Objectives …………… Scope ………………………….… ……………………………… Methodology ………………………… … ………………… Theoretical and Practical Significance ………… .………….……………… Structure ………………………….……… .…………………… Chapter 1: Theoretical Background 1.1 Theory of Business Strategies …………… … …………… 1.1.1 Basic Concepts ………………… …………………………………… 1.1.2 Business Unit Strategy ……………………… …… ……………… 1.1.2.1 Focused Growth Strategy …………… ……… … …………… 1.1.2.2 Three basic competitive strategies 1.1.2.3 Competitive strategies for business basing on market share position … 1.2 Process of developing strategies 1.2.1 Defining mission and objectives …………………………………… 1.2.2 External environment analysis ……………………………… …………… 1.2.3 Internal business status analysis 1.2.4 Analysis of strategies and options ………………………… …………… 1.3 Tools of strategy formulation ……………………………… ……………… 1.3.1 Stage of information collection and systematization 1.3.1.1 EFE Matrix …………………… …………………………………… 1.3.1.2 IFE Matrix ………………………… ………………………………… 1.3.2 Stage of Combination …………………… 1.3.2.1 SWOT Matrix …… .………………………… 1.3.2.2 SPACE Matrix ……………………………………………………… 1.3.2.3 Large scale strategy matrix ………………………………… 1.3.3 Stage of Decision ………………………………….……………………… Chapter II: Analysis of business status of VietinBank Ben Thuy in recent years 2.1 General Introduction ………………… ……………………… ……… 2.1.1 History and Development ……………… ….………………………… 2.1.2 Distribution network …………………………………….…… .……… 2.1.3 Service Products ……………………………………… ………………… 2.1.4 Business results through the years …………………………………….… 2.2 Analysis of factors affecting the operation of VietinBank Ben Thuy …… 2.2.1 Macro Environment …………………………….………………… .… 2.2.1.1 Economic environment ………………………….……… ………… ii 2 3 4 5 8 10 11 11 11 12 12 12 13 15 16 17 17 17 17 18 18 22 22 22 GeMBA 01V01-Group10 Capstone Project Report 2.2.1.2 Socio-cultural environment …………………………………… …… 2.2.1.3 Political and Legal Environment ……… …………………… ….… 2.2.1.4 Natural Environment ……………………………… ………………… 2.2.1.5 Technological Environment ……………………… ……………… 2.2.2 Micro environment ……………………………… ………………… 2.2.2.1 Competitors …………… .……………………………………… 2.2.2.2 Customers………………… ………………………………………… 2.2.2.3 Suppliers………………… .……………………………………… 2.2.2.4 Potential rivals ………………………………… .………………… 2.2.2.5 Substitute Products ……………………………… ……………… 2.2.3 Matrix for External Factors Evaluation (EFE)…………………… …… 2.2.4 Evaluation of Opportunity and Threats .……………… 2.3 Analysis of internal factors of VietinBank Ben Thuy ………………………… 2.3.1 Human Resource ………………………………………….……………… 2.3.2 Marketing………………………………………………………………… 2.3.3 Organization structure ………………………………… ……….…… 2.3.4 Management skills ………………… 2.3.5 Financial capacity ……………………………………………….……… 2.3.6 Research and Development ………………… 2.3.7 Information technology ……………………………………….………… 2.3.8 Internal Factor Evaluation (IFE) …………… 2.3.9 Evaluation of strengths and weaknesses ………………… ……………… 2.4 The need to set up trading strategy for VietinBank Ben Thuy Chapter III: Business Strategies of VietinBank Ben Thuy from 2010 to 2015 3.1 The business mission of VietinBank Ben Thuy from 2010 to 2015 3.1.1 General targets .…………………………………… 3.1.2 Concrete targets from 2010 to 2015 ……… 3.2 Analysis of feasible trading strategies……… ……………………… 3.2.1 SWOT matrix Analysis…………………………………………………… 3.2.2 SPACE matrix Analysis…………………………………………………… 3.2.3 Large Scale Strategy Analysis…………………………………………… 3.2.4 Define replaceable trading strategy …… 3.3 QSPM Matrix…………………… ………………………………………… 3.4 Solutions to strategies… ……… 3.4.1 Human resource development .………… 3.4.1.1 Effective recruitment of personnel .…… 3.4.1.2 Training and re-training staff……………………………………… 3.4.1.3 Human resource management and preferential treatments …… .… 3.4.2 Marketing strategy ………………………… 3.4.2.1 Market Research……….……………………………………………… iii 26 28 28 29 29 29 31 31 31 32 32 35 36 36 37 39 39 40 40 40 41 43 44 46 46 46 46 47 47 49 52 52 53 57 57 57 57 58 58 58 GeMBA 01V01-Group10 Capstone Project Report 3.4.2.2 Marketing Mix …………………… .…………………………… 3.4.3 Technology strategy 3.4.4 Corporate culture …………………………………… 3.4.5 Infrastructure Construction .…………………………………………… CONCLUSION REFERENCES iv 59 60 61 63 65 66 GeMBA 01V01-Group10 Capstone Project Report LIST OF TABLES v GeMBA 01V01-Group10 Capstone Project Report Table 2.1: Some indicators of business operations ……………………… Table 2.2: Vietnam’s GDP Growth Rate over years …………………… Table 2.3: Nghe An Province’s GDP Growth Rate over years ………………… Table 2.4: Import-Export Turnover Table 2.5: Some indicators of capital mobilization and lending of commercial banks in 18 23 23 26 30 Nghe An province………………… Table 2.6: EFE Matrix …………………………………………… Table 2.7: IFE matrix .………………………………………………………… Table 3.1: SWOT matrix .………………………………………………………… Table 3.2 SPACE matrix ……………………………………………………… Table 3.3: QSPM Matrix .………………………………………………………… Table 3.4: Selected strategies according to priority …………………………… 32 41 47 49 54 56 LIST OF IMAGES Image 1.1: SWOT matrix ……………………………………………………………… Image 1.2: SPACE Matrix ……………………………………………………………… Image 1.3: Large Scale Strategy Matrix………… ………………………………… Image 3.1: Graph demonstrating SPACE matrix …………………………………… 13 14 15 51 vi GeMBA 01V01-Group10 Capstone Project Report INTRODUCTION Rationale Vietnam’s banking and financial market has been sharply developing in recent years, especially since Vietnam’s accession to WTO There is an increase of the opportunity as well as the challenge for all financial institutions, specifically for the commercial banks However, Vietnam’s banking and financial market is in the early stage of development Products and services provided by financial institutions are still relatively limited They are mainly of traditional banking products; modern and specialized banking products are still scare This is the opportunity for potential financial institutions to capture and exploit the market This is also the condition for banks to survive in the increasingly fiercely competing market Each bank will have to build business strategies consistent with their specific characteristics in each stage of history in order to be able to quickly dominate the market, improve competitiveness, expand and promote new products and services It is also important for each bank to create outstanding differences, bring more utility and value to customers To survive and to win in the competition is becoming crucial to every bank In that situation, Vietnam Commercial Bank of Industry and Trade, Ben Thuy Branch (VietinBank Ben Thuy) is making gradual effort to confirm its position as well as to improve its competitiveness in Nghe An Province financial and banking market Having been working for this bank for many years and fully aware of the situation, the authors have decided to choose the research topic: "Developing business strategies for Vietnam Joint Stock Commercial Bank for Industry and Trade, VietinBank Ben Thuy Branch from 2010 to 2015", with the hope to contribute to the improvement of business efficiency of VietinBank Ben Thuy and bringing it to a new position in the Vietinbank system in particular and in the Vietnamese banking system in general GeMBA 01V01-Group10 Capstone Project Report Aims and Objectives The aim of this research is to develop business strategies for VietinBank Ben Thuy from 2010 to 2015 and to propose the solutions to implement these development strategies, to make VietinBank Ben Thuy become one of the best branches in the Vietinbank system and in Nghe An province banking market as a whole In order to achieve that aim, the objectives of this research will be as follows: - Giving an introduction to the basic theory and the process in developing business strategy - Analyzing external factors and internal factors to explore the strengths as well as the weaknesses of VietinBank Ben Thuy - Identifying the business objectives basing on SWOT analysis, developing business strategies and proposing solutions to implement the strategies Scope and subject of the study The research subject is VietinBank Ben Thuy The research will limit to strategic issues and strategy management in the banking sector As the analysis data are collected from VietinBank Ben Thuy, the result of this research is only applicable at this bank Methods of the stdudy - The approaches: This research includes the general approaches such as: individual approach, historical approach, quantitative and qualitative approach - Method of processing and analyzing data: statistic method is used to describe, analyze, and synthesize the assessment of business performance in VietinBank Ben Thuy Matrix analysis such as EFE , IFE, SWOT, SPACE are also used in this research - Sources of information: secondary information from books, the Internet and report from VietinBank Ben Thuy and State Bank of Nghe An province Theoretical and Practical Significance GeMBA 01V01-Group10 Capstone Project Report The research is based on the theories relating to strategic management to make the SWOT analysis of VietinBank Ben Thuy and develop business strategies as well as propose solutions to implement these strategies, especially with Vietnam's accession to WTO and the full commitment of the banking sector in 2015 It is of both theoretical and practical significance in the sense that it brings the authors not only more insights into the field of strategy administration but also a golden chance for them to understand more about the field of banking as well as Vietinbank Ben Thuy, thereby to help them to find the ways to improve it Structure This report consists of three chapters: Chapter 1: Theoretical Background Chapter 2: Analysis of business status of VietinBank Ben Thuy in recent years Chapter 3: Business Strategies of VietinBank Ben Thuy from 2010 to 2015 GeMBA 01V01-Group10 Capstone Project Report CHAPTER THEORETICAL BACKGROUND 1.1 Theory of business strategies 1.1.1 Basic Concepts There are many definitions of business strategy depending on the viewpoint of each author According to Chandler (cited in Le The Gioi et all, 2009), "business strategy of an enterprise is the determination of the objectives and purposes of the long-term business and the application of a series of actions as well as the allocation of resources needed to implement its goals." In his definition of strategy with five Ps, Mintzberg (cited in Le The Gioi et all, 2009) generalizes aspects of strategy management as follows:  Plan: The sequence of consistently intended actions  Pattern: The consistent behavior over time, intentionally or unintentionally  Position: The harmony between the organization and its environment  Perspective: The ways to deeply understand about the world  Ploy: The specific methods to deceive opponents Business strategy does not specifically aim to outline how to achieve that goal because it is the duty of the numerous supported programs and other strategic functions It just creates the frame of thinking to guide the action Business strategy is usually defined as three levels: - Company's Strategy: relating to the overall purpose and scope of organization - Business' Strategy: relating to successful competitive methods on the specific market GeMBA 01V01-Group10 Legal system Inflation, exchange rate, interest rate Sector adherence barrier Variables of IS The growth rate of sector The importance to economy Capital scale of the Capstone Project Report -3 -3 Bad Complicated but still under -2 control Quite good 5,66 6 Excellent Very important Big scale sector Notes: - FS is financial strength - CA is competitive advantage - ES is environmental stability - IS is the industrial strength We choose a group of variables that represents FS, CA, ES and IS We define values from (worst) to (best) for FS and IS, from -1 (best) to -6 (worst) for ES and CA, then calculate average point for FS and IS, ES and CA Adding points on horizontal axis and marking the result; adding points on vertical axis and marking the result; marking the co-ordinate and drawing graph from original point to new point, we have: FS + ES = 4,33 – 2,25 = 1,78 IS + CA = 5,66 – 2,66 = As demonstrated on matrix graph, we have strategies of VietinBank Ben Thuy in the following position: 50 GeMBA 01V01-Group10 Capstone Project Report FS 1,78 CA IS ES Image 3.1: Graph demonstrating SPACE matrix As can be seen from the above graph, strategy position of VietinBank Ben Thuy shows that the bank has healthy financial situation and many competitive advantages in a stable sector VietinBank Ben Thuy must choose attack strategies Other strategies including conservative policy, defensive policy and competitive strategy are infeasible 3.2.3 Large Scale Strategy Matrix Analysis According to analyzed result in chapter II, we come to recognize that: In term of competitive advantage: VietinBank Ben Thuy belongs to medium group within Nghe An province 51 GeMBA 01V01-Group10 - Capstone Project Report In term of market growth: the market of banking products and services will strongly develop in the coming time With above factors, according to large strategy matrix, VietinBank Ben Thuy belongs to the first right angle, that can apply the following strategies: market development, market penetration, product development; backward and frontward combination; horizontal combination; focused diversification 3.2.4 Define replaceable trading strategy Through analysis of SWOT matrix, we can apply one of the six following strategies:  Strategy SO: - Market development strategy: take advantage of strong point of brand name, consensus on will, well trained human resource; grasp opportunity of extended market, big banking products and services, opportunity for joint-venture and association; stable politic environment for market development and network expansion - Strategy of focusing on key points: based on brand name; young, enthusiastic and qualified employees, well trained human resource to grasp the opportunity of open market, the increasing demand of banking products and services and modern technology to orient to retail customers, small and medium enterprises Customer’s segmentation to serve retailer, rich customers and potential customers - The strategy to develop new product: take advantage of brand name, young, enthusiastic and qualified staffs, well trained human resource, grasping the opportunity of market development; increasing demand of banking services and products and modern technology to develop new products to meet the demand of customers  Strategy ST: Costs-leadership strategy: take advantage of brand name, young, enthusiastic and qualified staffs, strong financial capacity and internal consensus to make customers trusted which bring sakes to customers to mobilize cheap capital leading to low sale price Utilize foreign credit programs with low interests, then we can cope with the risks of replaceable products and other bank’s competition 52 GeMBA 01V01-Group10 Capstone Project Report  Strategy WT: Marketing strategy: extended market, new banks’s adherence to Vietnamese market, many replaceable products VietinBank Ben Thuy needs to develop marketing activities to adjust its own weak points to attract customers  Strategy WO: Human resource management and development: due to extended market, development of many banking products and services, then VietinBank Ben Thuy must be bold to retrain human resource with high quality to replace redundant human resource 3.3 QSPM Matrix QSPM for SO group is chosen as follows: Table 3.3: QSPM Matrix Factors Classification Replaceable strategies Market Market Focus on development penetration AS TAS AS TAS main point AS TAS Internal factors Strong brand 4 16 16 16 name Financial 12 12 12 capacity Young, 3 9 3 qualified staff Consensus on 3 9 12 will Staff training 3 9 and development Trading strategy Marketing 3 3 3 enthusiastic and 53 GeMBA 01V01-Group10 Capstone Project Report activities Total credit asset Risk 3 12 12 12 management 10 Geographical location 11 Redundant 2 2 2 human resource External factors Market demand Open market Study and learn Politics Science and 1 4 3 12 3 12 2 2 12 2 4 12 2 16 technology Competition Integration 3 12 12 12 bankruptcy Replaceable 2 2 2 products Inflation 10 Providers’ 3 9 leading to enterprise’s advantages due to the great number of banks Total attraction 151 145 146 point Note: AS is the attraction point; TAS is total attraction point We give priority of market development to SO strategy group, because TAS = 151 is the highest 54 GeMBA 01V01-Group10 Capstone Project Report Strategies of VietinBank Ben Thuy from 2010 to 2015 are selected according to priority: Table 3.4: Selected strategies according to priority Strategy Market development Main content Look for favorable location to transfer the head office, settle down the transaction Marketing strategy offices to extend the network Promote advertising, marketing to new Human resource management and and old customers Bold to innovate, re-arrange redundant development Costs -leadership strategy human resource to be replaced by high quality human resource Try to look for cheap capital source, foreign credit programs with low interests then to define low output price to make Focus on key points price lead Focus on customers which are small and medium enterprises; segmentation of retail customers, rich customers as well as potential customers to have suitable Product development service policies Raise the quality of existing products and services and implement new products given by Vietinbank; diversify services and products 3.4 Solutions to Strategies 3.4.1 Human resource development 55 GeMBA 01V01-Group10 Capstone Project Report To implement above selected strategies, first, we must reconstruct organization structure, recruit and train high quality human resource The staff must be skilled and fully understand banking products and services; have good communication skills and attitude To have such human resource, VietinBank Ben Thuy must implement the following issues: 3.4.1.1 Effective recruitment of personnel Currently, VietinBank has had clear regulation of recruitment; however, in the process of recruitment, there have been some problems: - The object of recruitment: VietinBank Ben Thuy just focus on recruiting newly graduated students with high learning result; but not focus on attracting talented and experienced people from other units In the coming time, we must change the thought of recruitment method We should consider recruiting talented people from other units and arranging them in suitable working positions with deserving preferential treatments - In the process of examination: the questionnaire only focuses on theory, lacking practicality and other skills such as communication, behavior, and team work… Then, we should recommend to parent bank to re-organize the method of examination to recruit suitable people with both academic knowledge and other necessary skills - Completely stop recruitment based on acquaintances - Set up policy to support and attract excellent students from universities by building up good relation with prestigious universities 3.4.1.2 Train and re-train staff - Currently, Vietinbank has had the college to train and develop human resource Annually the college has set up programs to train staff within the whole system The training quality is rather good with high qualified teacher as well as good learning schedule However, the reality of appointing staff to join these courses is not really effective For example: some employees after finishing the course don’t report the achieved result from the course, exchange with other employees who don’t join the 56 GeMBA 01V01-Group10 Capstone Project Report course; sometimes they even never use the learned knowledge so it is just a waste of time and money In the coming time, we should have regulation for staff who are appointed to training courses It should be that: after finishing the course, those employees must report to Director Board as well as other employees who don’t join the course Based on the quality of the report, the Board of Director will evaluate the employees whether they fulfill the task in the time of joining the course or not - Encourage and create condition for all staff of VietinBank Ben Thuy to learn and improve qualification such as post-graduate training, politic improvement… especially employees in the master plan of manager source 3.4.1.3 Human resource management and preferential treatments - Set up suitable policy to arrange employees; dismiss unqualified employees out of VietinBank Ben Thuy to receive qualified employees who can meet the working demand - Timely reward employees with initiatives and who bring profit to VietinBank Ben Thuy - Accurately assess employees to timely appoint; avoid the situation in which qualified and capable employees are not appointed then they must transfer to other units Effectively implement master plan of employees … - Set up special preferential treatments to attract talented people from other units to VietinBank Ben Thuy 3.4.2 Marketing strategy 3.4.2.1 Market Research We must focus on studying the following issues: - Study competitive opponents within the same area based on the comparison of service, products, price, advertising, distribution network… then we can grasp advantages and disadvantages of our own bank in each term And then we can set up suitable trading strategy - Study bank’s customers: grasp the demand and satisfaction of customers by sending questionnaires to adjust timely customers’ policy so that we can keep the customers 57 GeMBA 01V01-Group10 Capstone Project Report 3.4.2.2 Marketing Mix Marketing mix relates to 4Ps: product, place, price and promotion Product: focus on highly effective products such as guarantee, payment, foreign currency trading, securities… Well implement package services for customers including other banking products and services of Vietinbank such as insurance, securities, fund management, gold trading… Utilize cheap capital sources, foreign credit programs with low interest rate such as JIBIC, KFW, EC, ADB Place: the development orientation of VietinBank Ben Thuy is to become a retail bank then network expansion is very necessary A large and strong network will make VietinBank Ben Thuy occupy the market; expand scale to become a leading bank within Nghe An province However, network development must be suitable to capacity of the branch in each period During the period 2010-2015, VietinBank Ben Thuy can expand the network as follows: - Look for favorable location to transfer the head office - Upgrade the transaction office number into the first-ranked transaction office - Set up some new transaction offices in densely-populated areas or few banks: office at Quang Trung Street - Vinh; office at Hung Loc commune – Vinh (appoved by VietinBank); office at Dien Chau town; office at Hung Nguyen district and office in the North of Vinh city - Set up some ATMs and some places for payment of international credit card at big supermarkets and hotels Price: fix up the price flexibly and effectively Apart from interest rate and ordinary fees, we should have policy for lobby, marketing and reward to customers who bring great profit to the branch Promotion: - Strengthen information to people via mass media, leaflets to introduce the function of each service, product briefly so as to make customers update banking products and services And then, customers can understand the way to use, the features of each products and services 58 GeMBA 01V01-Group10 Capstone Project Report - Through employees and close customers to mobilize good customers who have the demand of banking services and products This is the cheap but effective advertising method because employees and close customers will be the ones who thoroughly grasp the strong and weak points of products and services; and that also the basis to create chain effect on bank’s prestige to customers - Co-ordinate with association such as association of small and medium enterprises; industrial zone management board; local authority of traditional craft villages to grasp the demand of customers to marketing and timely meet the demand of banking products and services - Annually, we should organize customers’ conference to show gratitude to customers as well as to understand the demand and expectation of customers and then have better services 3.4.3 Technological strategy - VietinBank uses the system of modern technological software INCAS which brings many benefits to the bank and customers through management and online connection within the whole system (customers can send money in this place but can draw money in another place within the same Vietinbank system) However, the bank must ensure the security because online bank’s services are set up on public telecommunication network which has many risks Therefore, the system must ensure security on the line of customers’ database; focus on solution of network security such as machine office must have camera system to monitor; when computer staff finish working, they must lock the key to avoid the damages for bank and customers - Currently, the transmission line is not so good, so sometimes the system operates slowly In the coming time, we must upgrade the system of transmission line to ensure operation to timely serve customers - With regard to staff of information technology: the bank must recruit and have deserving preferential treatments to make them concentrate on working and studying information technology to apply to the bank 3.4.4 Corporate Culture 59 GeMBA 01V01-Group10 Capstone Project Report Corporate culture is considered as an awareness that just exists within an organization but not in an individual Therefore, individuals with different cultural background, living style and working positions in an organization tend to have the same manifestation of corporate culture or at least they have the same denominator Corporate culture is related to the awareness and behavior of members inside and outside the organization At the same time, corporate culture is the most vivid and concrete manifestation of the organization that people can be easy to recognize That image can be made up by many factors Therefore, just one factor’s change can make the image of organization change In term of theory, there is no same corporate culture among organizations in spite of some of their similar features Some basic features of corporate culture: - Self-management of individuals in organization (responsibility, independence, behavior, working style…) - Organizational mechanisms (regulations, principles, charters) - The support of manager to employees - Solidarity and teammate spirit in organization - Consideration, reward, and its basis - Conflicts, resistance and solution for conflicts - Possible risks and resistances to such risks Currently, VietinBank has set up handbook of Vietinbank corporate culture Its content is as follows: Mission, vision and trading philosophy of VietinBank The core values of - VietinBank are described as follows: All activities are customers-oriented; Staffs are active, creative, professional, enthusiastic, transparent and modern; Labors have the right to strive and dedicate to the bank – they also have the right to enjoy preferential treatments according to the quality, result, and working effect; they are also honored “excellent individual” and “excellent labor” Regulation of professional etiquette of VietinBank Purpose: the regulation of professional etiquette is based on basic etiquette and core value of VietinBank to direct employees and managers to apply in daily communication which can create distinctive cultural value of VietinBank Behavioral culture of VietinBank It includes the following issues: 60 GeMBA 01V01-Group10 - Capstone Project Report Communicating culture including: greeting, exchange point of view, professional culture, telephone; communicating culture between leader, manager and staff - Communicating culture with customers including: introduction and selfintroduction; using name card; communicating culture of transactor with customers - Individual behavior at working place: uniform and appearance; working style; hygiene; awareness with working and collective; awareness to join meeting and behavior when receiving new employees - Culture of decorating office - VietinBank’s culture in other activities: annual cultural events; party culture; culture of sitting in cars Vietinbank Cultural awards The target of award is: - Encourage units and individuals within VietinBank to set up cultural spirit in internal activities to build up brand name and cultural image of Vietinbank; - Honor and multiply cultural symbol of VietinBank, through which we build up Vietinbank brand name within domestic and foreign markets; - Set up a common title and symbol for Vietinbank to create and maintain cultural values of Vietinbank within the whole system; - Appreciate cultural values of Vietinbank; promote pride and create attachments of excellent individuals to organization; - Cultural image of Vietinbank will contribute to advertise Vietinbank brand name; - Set up cultural days of Vietinbank to make Vietinbank become a financial corporation and a leading bank of Viet Nam Generally, VietinBank cultural handbook has fully promulgated basic factors of corporate culture However, the applying of cultural handbook in life and working with regard to Vietinbank staff is not easy VietinBank Ben Thuy must organize learning, examining, assessing empoyees in implementing content of promulgated cultural handbook This must be considered to be one of assessing criteria of working effect of employees in VietinBank Ben Thuy 3.4.5 Infrastructure Construction 61 GeMBA 01V01-Group10 Capstone Project Report Current institution of VietinBank Ben Thuy is located at the end of Nghe An province, where trading activities are less developed and inhabitants’ income is low As a result, this is an unfavorable location for trading VietinBank Ben Thuy needs to change location of main office to the centre area of Vinh city (The centre of Vinh city is along Quang Trung Street; in the future all of organizations and agencies will focus on Le Nin Boulevard) So, we can choose one of these two positions to transfer the institution In conclusion, in this chapter, our group has analyzed and combined the factors of opportunity – threats, strong points – weak points of VietinBank Ben Thuy to set up strategies and solutions to implement selected strategies 62 GeMBA 01V01-Group10 Capstone Project Report CONCLUSION In the current trends of integration, especially after Vietnam joined WTO, Vietnam’s economy in general and the banking sector in particular have been getting the great benefits However, we also have to face such difficulties and challenges which are not trivial In the past, there were only competitions among domestic banks; it is now, however, the globalized competitions, in which the foreign banks with the potential strong finance, modern technology, qualified personnel and technical superiority will become huge obstacles for domestic banks to overcome Thus, Vietnam banks are required to renovate the technology, increase the financial capacity, train and provide qualified human resources and develop network quickly in order to expand the market share so as to increase competitive capabilities In doing so, banks need to conduct appropriate business strategies for themselves to survive and grow Based on the theory of strategy management and strategy building process, combined with analyzing the assessment and review of actual situation, the specific characteristic of VietinBank Ben Thuy, including both external and internal factors affecting on formulating business strategies, the authors have proposed business strategies of VietinBank Ben Thuy and the solutions to the strategies The study is the result of efforts from the authors; however shortcomings are unavoidable The authors wish to receive more comments and advices from teachers, scientists, colleagues, and those who concern in order to supplement and complete the paper with higher quality, as well as to increase the topic’s feasibility in practical applications 63 GeMBA 01V01-Group10 Capstone Project Report REFERENCES Nguyen Thị Lien Diep, Phạm Van Nam (2006), Business Strategy and Policy, Ho Chi Minh City Labor - Society Publishing House Le The Gioi, Nguyen Thanh Liem, Tran Huu Hai (2009), Strategy Management, Hanoi Statistics Publishing House Fredr, David (2006), Definition of Strategy Management, Hanoi Statistics Publishing House Decision 112/2006/QD-TTg on 24/05/2006 of Prime Minister on approving the schedule of developing Vietnam Banking sector by 2010 and orientation by 2020 Final reports on trading activities of VietinBank Ben Thuy in 2006, 2007 and 2008 Reports on implementing tasks of commercial banks within the area in 2006, 2007, 2008 of Nghe An State’s Bank Vietnam Banks Association (12/2006), Commitments of Viet Nam and Vietnam banks in WTO integration Vietnam Economic Times on 2/6/2008 Website:www.Vietinbank.vn;www.sbv.gov.vn;www.mof.gov.vn; www.moit.gov.vn; www.vneconomy.com.vn 64 ... CONCLUSION REFERENCES iv 59 60 61 63 65 66 GeMBA 01V01-Group10 Capstone Project Report LIST OF TABLES v GeMBA 01V01-Group10 Capstone Project Report Table 2.1: Some indicators... III will present the identification and selection of business 16 GeMBA 01V01-Group10 Capstone Project Report strategies 17 GeMBA 01V01-Group10 Capstone Project Report CHAPTER II ANALYSIS OF THE... 32 32 35 36 36 37 39 39 40 40 40 41 43 44 46 46 46 46 47 47 49 52 52 53 57 57 57 57 58 58 58 GeMBA 01V01-Group10 Capstone Project Report 3.4.2.2 Marketing Mix …………………… .…………………………… 3.4.3 Technology