Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (9)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM BUILDING BUSINESS STRATEGY TO DEVELOP DEVELOPING FUND MOBILIZATION ACTIVITIES IN BANK FOR FOREIGN TRADE OF VIETNAM OPERATIONS CENTER (VIETCOMBANK O.C.) IN PERIOD OF 2012-2016 Group Number : 10 Class : GaMBA X0510 Members : Truong Tuong Anh (Leader) Pham Hoang Phu Pham Duy Huan Bui Thi Kim Van HANOI: 2012 22 ACKNOWLEDGEMENT On behalf of the group, we would like to send gratitude to dedicated support of lecturers in Center for Educational Technology and Career Development ETC, Post University Department – Hanoi National University; Griggs University – The US We also expressed our thanks to General Director of Operation Center Vietcombank, Manager in Planning – Investment department, Financial – Accounting department providing data for completion of this capstone project Although the group tried our best to well this capstone project, due to limited knowledge, this capstone project has limitations Thus, the group wishes to receive significant contribution of lecturers, colleagues and friends for the most effect COMMITMENT Group 10 Class X0510 commit this is our own research project Data given in this capstone project is honest and has been not published in any scientific projects Hanoi, 15th February 2012 Group leader Truong Tuong Anh INTRODUCTION 1.1 Context and necessity of the subject 1.2 Context of subject Recently, together with industrialization and modernization, the process of urbanization in Vietnam has strong development According to estimation, growth rate of urbanization in Vietnam is about 30% Furthermore, Vietnam is the nation having stable growth rate of GDP at 6-8% year since the world economy faced up with difficulties resulted from financial crisis Accompany by the economic development is social development Vietnam becomes one of countries the most development of information technology and internet in the world From the above reasons, it creates favorable conditions for development of fund mobilization and competition in this field Nevertheless, with the existence of more than 100 commercial banks as present, in order to have sustainable development and mark position in market, banks must have right and sustainable development strategies on the basis of analyzing internal factors, influences of external environment to attract more capital for expand business in this sector 1.2 The necessity of subject Reality Vietcombank is one of the largest commercial banks in Vietnam at present 1.2.1 After more than 50 years of foundation and development, the bank continuously expands their operations with annual growth rate up to 18% The significant contribution to growth of Vietcombank over the past year is development of fund mobilization of Operation Center In accordance with development of economy, scientific technology; fund mobilization become attractive business model for Vietnamese banks In order to maintain this market share, banks also face up with many difficulties and threats resulted from integration process 1.2.2 Reasons to select topic From analysis mentioned above, we can see the role of fund mobilization of Vietcombank – Operation center in particular and Vietnamese commercial banks in general Having awareness of that importance, there have been some researches and conclusions about this operation such as: Topic: “Developing quality of fund mobilization for commercial banks in Vietnam, reality and solutions”, Associate Professor – Doctor Nguyen Dac Hung – Banking Academy This topic provided the general view about operations for improving quality of fund mobilization at commercial banks as well as introduced solutions to improve above operations with banks in general Topic: “Fund mobilization of commercial banks in Vietnam in integration process”, Doctor Nguyen Van Tien – Vice Dean of Banking Faculty, Banking Academy The topic pointed out risks for retail banking products, the opportunities for banks in integration process Topics had meaningful conclusions about fund mobilizaiton operations in general In order to apply them into building strategy for a specific bank in this area, the topic “Building business strategy to develop fund mobilization activities in Vietcombank Operation Center in the period of 2012-2016” was selected with the aims at proposing right strategies for Vietcombank – Operation center to expand market share in attracting capital as well as control threats from this business model Fund mobilization can be considered as a strategic business unit (SBU) of Vietcombank Operation Center because of the following reasons: - Fund mobilization department (“Department”) is an independent and fully functional department operated as both cost and profit center of the branch - Vietcombank OC has fully delegates authority and responsibility to a senior director of the department who reports directly to the General Director of VietInBankVietcombank - The Department has its own budget, marketing plan, competitors as well as manpower The contribution in terms of money of the department is clearly calculated and monitored by Vietcombank OC Objectives of capstone project From analyzing operations of Vietcombank Operation Center from 2007 up to now, the subject applied theories of strategic management into business activities in general and fund mobilization activities in particular Furthermore, the subject also drives to following three specific objectives: + To manage human resource and capital effectively + To promote quality of fund mobilization + To expand market share in fund mobilization operation In which, human resource and capital management is considered as key factor about service quality and market share expansion in area of fund mobilization Researching objects and scope Topic focused on researching operations of building business strategy of Vietcombank – Operation Center in general and fund mobilization in particular Researching scope is business activity of Vietcombank – Operation Center with comparison with business activity of other competitors within industry including, Agribank, BIDV, ACB, Techcombank and Dong A Bank Researching methods Topic used theories about strategic management into analyze primary and secondary information Additionally, provided information comes from following sources: + Consulting ideas of experts in finance and real estate area + Trading result in general and fund mobilization in particular from 2007 up to now + Information from newspaper, magazine and internet Information and data from above sources were analyzed and summarized to introduce strategies for Vietcombank Operation Center in fund mobilization activities In order to have these strategies, capstone project used following tools and methods: + External factor evaluation, internal factor evaluation and SWOT matrix, QSMP matrix + Michael Porter’s five force model, PEST model, Meaning of capstone project This topic is built on the basis of theories relating to strategic management and application of theories to analyze strengths, weaknesses, opportunities and threats of Vietcombank – Operation Center From that, identify reality, build, select and propose solution implementing business strategy for Vietcombank Operation Center in period of 2012 - 2016 At present, the world and national economy has complex fluctuation Therefore, introduced solutions only have long term orientation not detailed action program for Vietcombank – Operation Center Structure of capstone project Apart from introduction, conclusion and annex; this capstone project is divided into three chapters as following: Chapter 1: Overview about building business strategy and fund mobilization in commercial banks Chapter 2: Analyzing business environment of fund mobilization of Vietcombank – Operation Center Chapter 3: Selecting strategies and solutions for implementing fund mobilization development strategy in period of 2012-2016 TABLE OF CONTENT LIST OF SYMBOLS AND ABBREVIATIONS No 8 Symbol ADB ATM EFE GDP IFE NHBL NHTM MIC Meaning Asian Development Bank Automated teller machine External factor evaluation matrix Gross domestic product Internal factor evaluation matrix Retail banking Commercial bank Ministry of Information and Communications 10 11 POS PPP VIETCOMBAN Point of sale Purchasing power parity Vietnam Commercial Bank 12 13 K WB WTO World Bank World Trade Organization LIST OF TABLES AND FIGURES List of tables CHAPTER 1: OVERVIEW OF STRATEGIC MANAGEMENT AND FUND MOBILIZATION IN COMMERCIAL BANK 1.1 Theories about building and managing strategy 1.1.1 Concept about strategy and strategic management "Strategy" is a concept having been presented and widely used in many areas for a long time “Strategy” was first used in military filed, then moved to politics Since 5060s of the 20 century, the concept of strategy was used in socio-economy area "Strategy" is usually understood as the way and methods solving given tasks in comprehension, overall and long term United Industry Development Organization (UNIDO) said that: "Normally, a development strategy may be described as a draft for development process in order to gained defined goals for a term from 10 – 20 years; it drives strategy planners in mobilizing and distributing resources In general, we can say that strategy provides a vision of an expected development process and consistency in methods of implementation Furthermore, strategy may be foundation for comprehensive development plan in short term, midterm or a general recognition without binding of insiders in that term about outlook, challenges and satisfaction" There are many definitions about strategy Fred R David, in his view, (2003) strategy consists of means reaching long term goals According to Michael E Porter (1996), strategy is creation of valuable and unique position including different operations Generally, concepts and definitions about strategy, despite being different in expression, always cover following contents: + To define short term and long term goals of enterprise + To propose and select predetermined plans + To conduct and distribute resources aimed at implementing those goals In addition to the understanding about strategy, leaders in company also need to know to manage it and make right decisions If applicable, their company will well strategy known as strategic management In general way: "Strategic management is defined as a collection of decisions and actions implemented via results of planning, enforcing and evaluating strategies It is designed to gain long term." 1.1.2 The role of building strategy for enterprise 10 Head office Boad of management APPENDIX Internal control & audit Payment promotion Credit management Economic analysis Project appraisal Treasury Debt handing International relation Marketing Equity investment Financial accounting International credit Account reconcilization Personel and training Card center Secretariat Payment center Administration Elec data processing Information Tech Legal system Credit information Appendix 1: Working operation of Vietcombank Suppervitory Commitee co Boad of director Credit Commitee co Domestic network Operation center co 73 Branches co Subsidiaries co Oversea network 66 Representative officfes (Paris, Moscow, Sing) Finance company (Hongkong) Appendix 2: Vietcombank network in Vietnam 67 Appendix : The questionnaire on employee satisfaction and quality QUESTIONNAIRES To whom it may concern, In order to assess the corporate culture of Vietcombank – Operation Center, please kindly answer below questions This survey is using the High performing culture assessment model developed by Daniel R Denison (http://www.denisonconsulting.com/home.aspx) General information: I> Sex: Male Age: Under 30 Experience: Education: Female 30-40 Under years 40-50 From to 15 years Undergraduate Hierarchy: Manager Graduated 50-60 and above Above 15 years Postgraduate Junior Department: …………………………………………………………………… Nº Questions Strongly Disagree Neutral Disagree Most employees are highly involved in their work 68 Agree Strongly Aargree Nº Strongly Disagree Neutral Disagree Questions Information is widely shared so that everyone can get the information he or she needs when it's needed Everyone believes that he or she can have a positive impact Cooperation across different parts of the organization is actively encouraged People work like they are part of a team Teams are our primary building blocks Authority is delegated so that people can act on their own There is continuous investment in the skills of employees The capabilities of people are viewed as an important source of competitive advantage 10 The leaders and managers "practice what they preach." 11 There is a characteristic management style and a distinct set of management practices 12 There is an ethical code that guides our behavior and tells us right from wrong 13 When disagreements occur, we work hard to achieve "win-win" solutions 14 There is a "strong" culture 15 We often have trouble agreement on key issues reaching 69 Agree Strongly Aargree Nº Strongly Disagree Neutral Disagree Questions 16 Our approach to doing business is very consistent and predictable 17 It is easy to coordinate projects across different parts of the organization 18 Working with someone from another part of this organization is like working with someone from a different organization 19 We respond well to competitors and other changes in the business environment 20 New and improved ways to work are continually adopted 21 Different parts of the organization often cooperate to create change 22 Customer input directly influences our decisions 23 All members have a deep understanding of customer wants and needs 24 We encourage direct customers by our people 25 We view failure as an opportunity for learning and improvement 26 Innovation and risk taking are encouraged and rewarded 27 Learning is an important objective in our day-to-day work 28 There is a long-term purpose and direction 29 There is a clear mission that gives meaning and direction to our work contact with 70 Agree Strongly Aargree Nº Questions 30 Our strategic direction is unclear to me 31 There is widespread agreement about goals 32 Leaders set goals that are ambitious, but realistic 33 The leadership has "gone on record" about the objectives we are trying to meet 34 Leaders have a long-term viewpoint 35 Our vision creates excitement and motivation for our employees 36 We are able to meet short-term demands without compromising our long-term vision Strongly Disagree Neutral Disagree 71 Agree Strongly Aargree Descriptive Statistics Sex Age Experience Education Hierarchy Most employees are highly involved in their work Information is widely shared so that everyone can get the information he or she needs when it's needed Everyone believes that he or she can have a positive impact Cooperation across different parts of the organization is actively encouraged People work like they are part of a team Teams are our primary building blocks Authority is delegated so that people can act on their own There is continuous investment in the skills of employees The capabilities of people are viewed as an important source of competitive advantage 10 The leaders and managers "practice what they preach." 11 There is a characteristic management style and a distinct set of management practices 12 There is an ethical code that guides our behavior and tells us right from wrong 13 When disagreements occur, we work hard to achieve "win-win" solutions 14 There is a "strong" culture 15 We often have trouble reaching agreement on key issues 16 Our approach to doing business is very consistent and predictable 17 It is easy to coordinate projects across different parts of the organization 18 Working with someone from another part of this organization is like working with someone from a different organization 19 We respond well to competitors and other changes in the business N 258 258 258 258 258 Minimum 1.00 1.00 1.00 1.00 Maximum 4.00 4.00 3.00 2.00 Mean 1.71 1.8023 1.7791 2.2287 1.8488 Std Deviation 453 74049 71233 47304 35890 258 2.00 5.00 3.8411 66158 258 1.00 5.00 3.7054 68222 258 2.00 5.00 3.8295 63152 258 1.00 5.00 3.7636 64999 258 2.00 5.00 3.7132 64457 258 1.00 5.00 3.7636 63790 258 2.00 5.00 3.6589 66010 258 1.00 5.00 3.7364 67206 258 1.00 5.00 3.9496 68996 258 1.00 5.00 3.6085 74191 258 1.00 5.00 3.5891 72865 258 1.00 5.00 3.6822 66584 258 1.00 5.00 3.7674 64839 258 2.00 5.00 3.8062 65515 258 1.00 5.00 3.0388 76299 258 1.00 5.00 3.6860 67637 258 2.00 5.00 3.3992 75856 258 1.00 5.00 3.5194 79493 72 73 ... strength, Vietcombank system has great support to lower business unit (including Vietcombank OC) Additionally, the prestige of Vietcombank system helps to keep the faith of customers to Vietcombank OC... Vietcombank and Vietcombank OC need to have more efficient strategy in next period 2.3.5 SWOT matrix for Vietcombank OC From summarizing strengths, weaknesses, opportunities and threats of Vietcombank... Profit indexes of Vietcombank in 2011 and 2010 are illustrated via below figure: Vietcombank, BIDV, Vietinbank annual reports Figure 2.4: Profit before tax of BIDV, Vietcombank and Vietinbank in