Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (282)

Global Advanced Master of Business Administration CAPSTONE FORMULATION OF RETAIL BANKING SYSTEM DEVELOPMENT STRATEGY OF VIETINBANK BA DINH IN THE PERIOD OF 2012 - 2015 Group 10: Nguyen Duc Tu Ha Ngoc Dung Nguyen Van Hieu Nguyen Thi Khanh Chi Ha Noi 2011 Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration TABLE OF CONTENT INTRODUCTION 56 Theoretical background 56 Objectives of the study 56 Object and scope of the study 56 Methodology of the study 56 CHAPTER: THEORETICAL BACK GROUND OF BUSINESS STRATEGY FORMULATION 78 1.1 OVERVIEW OF BUSINESS STRAEGY 78 1.1.1 Concept 78 1.1.2 Strategy classification 78 1.1.3 Affecting factors to strategies of an enterprise 89 1.2 PROCESS OF STRATEGY FORMULATION 1.2.1 Strategy formulation by SWOT analysis 1.2.2 Tools for strategy formulation 1.3.ROLE OF BUSINESS STRATEGY FORMULATION TO ENTERPRISES CHAPTER II: REAL SITUATION OF RETIAL BANKING BUSINESS AT VIETINBANK BRANCH BA DINH 2.1 INTRODUCTION OF VIETINBANK BRANCH BA DINH 2.1.1 Process of establishment and development 2.1.2 Organizational structure of the Branch 2.1.3 Products and services 2.1.4 BUSINESS RESULTS 2.2 REAL SITUATION OF RETAIL BANKING BUSINESS ACTIVITIES AT VIETINBANK – BA DINH BRANCH 2.2.1 2.2.1 Individual mobilization and individual credits 2.2.2 On card services: 2.2.3 Potential of banks in the region 2.3 ANALYSIS OF ENVIRONMENT FACTORS AFFECTING RETAIL BANKING SERVICE AT VIETINBANK BRANCH BA DINH 2.3.1 External environment analysis 2.3.2 External Factor Evaluation (EFE) Matrix 2.3.3 Competitive profile matrix 2.3.4 Internal factor analysis Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration 2.3.5 Internal Factor Evaluation (IFE) Matrix STRATEGIC CONTENT OF RETAIL BANKING OF VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.1 ORIENTATION ON EXPANDING AND DEVELOPING RETAIL BANKING BUSINESS OF VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.1.1 Motto of VietinBank Branch Ba Dinh 3.1.2 Objective of business strategy by 2015 3.2 SELECTING STRATEGY ON EXPANDING AND DEVELOPING RETAIL BANKING BUSINESS OF VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.2.1 SWOT Matrix 3.2.3 QSPM Matrix 3.2.4 Determination on strategy of VietinBank Branch Ba Dinh in 2012 – 2015 period SOLUTIONS TO IMPLEMENT THE STRATEGY ON RETAIL BANKING BUSINESS IN VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.3.1 Diversifying the investment portfolios 3.3.2 Improving appraisal 3.3.3 Expanding the network and attracting customers 3.3.4 Improving organizational model and boosting quality of human resources 3.3.5 Marketing solutions 3.4 SOME RECOMMENDATIONS 3.4.1 Recommendations to the State and the Government 3.4.2 Recommendations to the State Bank of Vietnam (SBV) 3.4.3 Recommendations to Vietnam Joint Stock Commercial Bank for Industry and Trade CONCLUSION REFERENCES Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration LIST OF FIGURE Figure 1.1: Process of strategy formulation by SWOT Figure 1.2: QSPM Matrix Figure 1.3 -Organizational structure of the Head Office LIST OF ABBREVIATIONS VietinBank Vietnam Joint Stock Commercial Bank for Industry and Trade VietComBank Joint Stock Commercial Bank for Foreign Trade of Vietnam TechcomBank Vietnam Technological and Commercial Joint Stock Bank ATM Automated teller machine CA Competitive Advantage ES Enviroment Environment 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 WO Weaknesses, Opportunities WT Weaknesses, Threats SPACE Strategic Position & Action Evaluation matrix Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration INTRODUCTION 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; VietinBank Branch Ba Dinh has not got acquainted with the competition from other commercial banks in the market Although VietinBank 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, VietinBank Branch Ba Dinhshould well create formulate Objectives of the study - Organizing and reviewing literature and theories of strategic management; - Analyzing and evaluating business performance of VietinBank Branch Ba Dinh; - Proposing strategic solutions for VietinBank Branch Ba Dinh in 2012- 2015 period Object and scope of the study - Scope: within the Vietnamese market during the period of 2012- 2015 - Objects: Formulation of Retail banking system decelopment strategy of VietinBank Ba Dinh Retail banking can be considered as a strategic business unit (SBU) of VietinBank Ba Dinh because of the following reasons: - Retail Banking department (“Department”) is an independent and fully functional department operated as both cost and profit center of the branch - VietInBank Ba Dinh has fully delegates authority and responsibility to a senior director of the department who reports directly to the General Director of VietinBank Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration 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 VietInBank Ba Dinh Methodology of the study + Data collection method - Data offered by VietinBank Branch Ba Dinh 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 + 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 “Retail banking system development strategy of VietinBank Ba Dinh in the period of 2012 -2015 ” Chapter 1: Theoretical background of business strategy formulation Chapter 2: Retail banking service business situation at VietinBank Branch Ba Dinh Chapter 3: Strategic content of retail banking of VietinBank Branch Ba Dinh in 2012 2015 period Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration CHAPTER I THEORETICAL BACKGROUND OF BUSINESS STRATEGY FORMULATION 1.1 OVERVIEW OF BUSINESS STRAEGY 1.1.1 Concept 1.1.1.1 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 1.1.1.2 Basic characteristics of business strategy - Business strategy is to clearly define basic objectives and business orientations of an enterprise in each period - The orientativeness objective 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) Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration 1.1.2 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 - 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 1.1.3 Affecting factors to strategies of an enterprise 1.1.3.1 External environment A 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 Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration markets, current changing markets, regionalization trend, economic relation among countries, regions are factors having direct influence on strategic management B Micro-environment/industry environment: Applying five forces model by Michael E Porter: Michael E Porter is a theorist and practician of strategy at Harvard Business School, he set out a framework to help managers to recognize opportunities and threats facing enterprises in an industry (Michael E Porter, Competitive Strategy, New York: Freepress, 1980) The framework of Michael E Porter is called five forces model represented via following diagram: Table 1-1: Five Forces Model by Michael E Porter Threat of new entrants Bargaining power of suppliers Competitive rivalry among existing firms Bargaining power of buyers Threat of substitute products M.Porter indicates that the stronger these forces are, the more they will constrain the capacity of existing enterprises in raising price and gaining higher profit The strength of five forces may be changed over time when industry conditions change (1) Threat of new entrants: new entrants with a number of potentials: advantages in terms of scale, capital, product differentiation, cost advantage, access to distribution system always appear and gain market share and the market (2) Bargaining power of suppliers: Bargaining power of suppliers includes scale, monopoly and bargaining power in the market and capacity of supplying products and prices (3) Bargaining power of buyers: Business activity of an enterprise depends on the number of buyers and the influence of some individual buyers to the enterprise and their bargaining power over products and services Gamba 01.X0810_Strategic Management _group 10 Page Global Advanced Master of Business Administration (4) The appearance of substitute products and services: The strengths of an enterprise will be influenced when customers find out different methods to implement the work that should have been done by the enterprise (5) Industry competitors: The core of this factor is the number and competitive capacity of competitors in the same market The strong or weak levels of competition concern following criteria: scale of the industry, structure of the industry, competitors, etc 1.1.3.2 Internal environment (1) Financial resource analysis: Finance, the most basic resource of an enterprise includes equity, mobilized capital, liquidity, revenue, profit, etc (2) Marketing capacity analysis: Structure of customers, potentiality of product and service consumption, diversification of quality, market share, customers’ preference, post-sale services, customer care services, etc (3) Human resource analysis: Quality of human resources is represented by the degree of professional qualification, work process, soft skills such as foreign language competence, computing skill, communication skill, presentation, decision-making, etc (4) Organizational level analysis: Organizational structure; organization of internal communication system; control system; internal inspecting and auditing; strategy planning system; capacity, interest and conscience of managers and administrators; strategic management capacity; reasonable distribution and arrangement of resources, etc (5) Infrastructure: Transaction center, points-of-sales; customer serving equipments; internal facilities; payment system, computer system, etc (6) Technological and scientific capacity: Technology includes machine, equipment, information management system, payment system, etc help reduce the time for operation and raise accuracy (7) Diversification of products and services serving customers: The diversification of products and services both creates opportunities to use products of customers and satisfy their demand Gamba 01.X0810_Strategic Management _group 10 Page 10 Global Advanced Master of Business Administration Being active in balance sheets of the bank, ensuring the high liquidity for customers - VietinBank brand name is well known from cities to rural, from remote areas to international countries - Staff quality is always ensured and has got significant improvement in education, knowledge and professional skills because of the increasing, expansion and diversification of training programs Contents of training programs are focused, which is very diverse but still professional Headquarters and transaction locations are spacious and traffic convenient The network layout is reasonable and suitable for the customer's transactions - VietinBank data system is centralized; the management and online transactions at the transaction locations and security information system have been upgraded to ensure the safe operation for the system, safe properties to the bank (2) Weaknesses: - Our brand is a dependent brand of VietinBank, thus, it is difficult to be active in using capital and allocating income The brand is not entitled in mechanism of recruitment, satisfactory treatment to attract high quality human resource, especially in such competitive areas like Hanoi - The Branch has not yet established the job descriptions for staff, as the basis for appraising, training and developing human resources The network is small due to the late born and the constraint of both VietinBank and SBV on the gross network development The equipment and facilities are not synchronous and luxury due to the limit of spending power - Information technology systems are not completed, which is in the process, therefore the specified processes on information technology have not met the management and exploitation quality of information technology 2.3.5 Internal Factor Evaluation (IFE) Matrix Table 2.13 – Internal Factor Evaluation (IFE) Matrix No A Key internal factors Strengths The Branch has high sources of fund, being Gamba 01.X0810_Strategic Management _group 10 Weight Rating Weighted score 0,08 0,24 Page 40 Global Advanced Master of Business Administration B proactive in mobilizing interest rate The Branch has high capacity of supplying credit service to customer, supplying credit to many types of customers, The Branch is proactively in balancing assets of bank to ensure quick liquidation for customers The Branch has well-known brand to the people and International friends Quality of staff is ensured and always improved significantly in terms of qualification, knowledge, professional skills, etc The Head office and transaction offices are big, clean and convenient in traffic Database of VietinBank system is concentrated, managed and ensure the safety of assets for the bank The information technology staff is young, active and has high qualification and sense of responsibility Weaknesses The Branch depends on VietinBank, so it has not been active in using capital and distribute income Brand promotion activity is lack of professionalism The Branch has not been allowed to recruit employees and provide a satisfactory compensation policy to attract human resources The Branch has not been able to form a job description for the staff to set the base for evaluation, training, fostering and developing human resources The network remains limited because the Branch was established lately and is controlled by VietinBank and the State Bank of Vietnam in development Information technology system has not been completed and in the process of completion Total Gamba 01.X0810_Strategic Management _group 10 0,10 0,40 0,06 0,12 0,08 0,24 0,08 0,16 0,08 0,24 0,08 0,24 0,07 0,21 0,06 0,18 0,06 0,12 0,07 0,21 0,08 0,24 0,05 0,10 0,05 0,10 1,00 2,80 Page 41 Global Advanced Master of Business Administration CHAPTER III STRATEGIC CONTENT OF RETAIL BANKING OF VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.1 ORIENTATION ON EXPANDING AND DEVELOPING RETAIL BANKING BUSINESS OF VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.1.1 Motto of VietinBank Branch Ba Dinh Brand value: The operation of VietinBank Branch Ba Dinh aims at sustaining and developing the brand of VietinBank in general and VietinBank Branch Ba Dinh in particular Branch’s value: VietinBank Branch Ba Dinh ensures continuous, effective, secured and sustainable growth and income for its staff It also strives to become the leading branch in the system of VietinBank Customer is the source of existence: VietinBank Branch Ba Dinh always appreciates customers and directs to customers with a professional and modern serving styles Honest and transparency: VietinBank Branch Ba Dinh always pays attention to risk management, internal control and raising transparency and honesty in all activities of the whole system 3.1.2 Objective of business strategy by 2015 - Fund resources: grows 15 -17% on average - Outstanding loans: grows 10 -12% on average - Non-performing loans: is sustained at below 3%/total loans - Customers: grows 5% on average - Income-expense difference: increases by 10% on average - Income: Ensuring salaries for laborers and including incentives in salaries Gamba 01.X0810_Strategic Management _group 10 Page 42 Global Advanced Master of Business Administration 3.2 SELECTING STRATEGY ON EXPANDING AND DEVELOPING RETAIL BANKING BUSINESS OF VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.2.1 SWOT Matrix From evaluation on Strengths – Weaknesses of VietinBank Branch Ba Dinh, the group sets up SWOT Matrix as follows: Table 3.1 SWOT Matrix Strengths (S) Operation model is being rebuilt more mordern to suit the model of the world's large banks VietinBank brand has come a long and had high reputation for Vietnamese people As bank with large size and extensive network Good finance capability As a bank with large Opportunities (O) Stable political environment Legal environment facilitates retail banking development Economic environment pulls RB service demand Social environment suitable for RB development at urban area Good technological environment The stipulation of cap interest rates helps big banks like VietinBank be chosen by customers to send more money This is the relevant period for VietinBank to promote the development of retail banking, to dominate the market and care customer more carefully SO: Cost Leadership Strategy Gamba 01.X0810_Strategic Management _group 10 Threats (T) Legal environment increases competitiveness The society requires products are quality, different and more complex Technology environment requires Vietinbank must have high investment Competitors have more experience in the development of RB services The banking sector in general and RB services in particular are under the fierce competition, requiring high capital investment and technology ST Market Development Strategy Page 43 Global Advanced Master of Business Administration deposits of which nonterm deposits account for high proportion Weaknesses (W) WO Personnel is going to Market penetration strategy perfect the structure and test the new model so it‘s able to arrange suitable staff Business activities still have the characteristics of SEs, not flexible and spreading size 10 Current technology is still weak compared to other banks 11 Developpement of many products and services without the careful study WT Defensive Strategy: Do not expand into retail banking 3.2.3 QSPM Matrix In the scope of this project, the group has selected two key strategies related to the project, namely: Strategy 1: Market Development Strategy Strategy 2: Market penetration strategy Table 3.3 QSPM Matrix Alternative strategy Key factors Weight Market Development Market penetration Strategy Attractiveness score strategy Total attractiveness score Attractiveness score Base for total attractiveness score Total attractiveness score External factors Stable political and legal environment Open economic environment 12 12 3 4 Gamba 01.X0810_Strategic Management _group 10 Having the same response Having the same response Page 44 Global Advanced Master of Business Administration Supporting policies from the Government Populated population, potential market Demand for banking services Industry rivalry Scale and quality development of banks Fierce competition in attracting talented people Increased risks in integration process 8 3 3 3 9 6 6 10 Customers’ requirements for quality Having the same response this criterion The second strategy better responses to The first strategy this criterion better responses to this criterion Having the same response The first strategy better responses to Having the same this criterion response The first strategy better responses to The first strategy this criterion 3 of banking products and better meets this criterion services Internal factors Technological and communication system 2 4 Good financial situation and credit supply Ensured quality of the 12 Brand prestige 12 Wide network 6 Interest gained 6 12 Dependence on VietinBank Operating cost response It is more effective to staff Having the same Gamba 01.X0810_Strategic Management _group 10 focus on the first strategy The first strategy will be more appropriate The first strategy will be more appropriate Having the same response The first strategy brings more interests Having the same response The first strategy saves more cost Page 45 Global Advanced Master of Business Administration Poor image promotion 10 Business risks 2 4 Sum total 150 attractiveness score Having the same response Having the same response 133 From the above strategy alternatives, GREAT matrix is used to select the best one: Criteria Weight Strategies ST SO WO WT Rating Score Rating Score Rating Score Rating Score Gain (G) 0,3 0,9 0,9 0,6 0,3 Risk (R) 0,1 0,2 0,2 0,2 0,2 Expense (E) 0,25 0,5 0,5 0,75 0,75 Achievable (A) 0,2 0,6 0,4 0,4 0,2 Time (T) 0,15 0,3 0,3 0,3 0,45 Total score 2,5 2,3 2,25 1,9 Conclusion: ST strategy is chosen as its score is highest 3.2.4 Determination on strategy of VietinBank Branch Ba Dinhin 2012 – 2015 period Via SWOT and QSPM matrices, after evaluating the strategy on retail banking business has higher attractiveness score, the group has detailed strategy for business activity of VietinBank Branch Ba Dinh in 2012 – 2015 as follows: Table 3.4 Selected strategy and supporting strategy Strategy Market Development Strategy Gamba 01.X0810_Strategic Management _group 10 Content Taking advantages of brand Page 46 Global Advanced Master of Business Administration Based on the number of current customers, Strategy of diversifying investment analyzing groups of customers and groups of portfolios individual products and forecast risks in the future Using new technology and making use of Strategy on optimizing credit risk analysis capacity of information system to manage credit risks 3.3 SOLUTIONS TO IMPLEMENT THE STRATEGY ON RETAIL BANKING BUSINESS IN VIETINBANK BRANCH BA DINH IN 2012 – 2015 PERIOD 3.3.1 Diversifying the investment portfolios - Reviewing and evaluating each retail banking products, which are being established in terms of size and quality, as well as predicting its risks - Adjusting and regularly replace products of the high-risk products with the low-risk ones, or those which never been implemented at VietinBank Branch Ba Dinh - Establishing and developing effective products which were successful launched by other institutes while VietinBank Branch Ba Dinh has not implemented or even established with little attention and uniformity Complete the model of retail banking management and operation The prerequisite condition for professional and efficient retail banking business of VietInBank is the establishment of a synchronous, consistent model that is used commonly from Headquarters to branches This model requires headquarters to consolidate its administrative role, construct branches to be professional sale organization with independent divisions of individual customer relationship, deputy directors, transaction offices and some units supporting for retail banking business 3.3.2 Improving appraisal - Regular training and retraining in credit operation and enhancing knowledge of business finance, law for credit officers to improve the quality of this team Good Gamba 01.X0810_Strategic Management _group 10 Page 47 Global Advanced Master of Business Administration analysis of business finance is a very important stage in appraisal to provide accurate proposals for credit facilities and reduce risks in the future - Dividing management according customer groups, especially selected good ones who have deep understandings of corporate finance to work in business credit groups - Enhancing the role of management and credit control Regular disseminating ethics for officials and avoid the area, misleading, and false loan application client to influence the lending decision is incorrect - Establishing independent evaluation of credit staffs, with a regular task to capture, analyze and process customer information for assessment tasks, branch-level credit 3.3.3 Expanding the network and attracting customers - Reviewing and analyzing the effectiveness of each transaction office in the network To maintain and develop additional transaction with high priority in the new urban areas in the near future, also called "going in advance" - Improving service quality to attract customers in order to adequately satisfy the needs of customers To improve service quality, VietinBank Branch Ba Dinh need to: + Building a team with a professional qualification, have a sense of responsibility, serious working style, honesty and openness with customers + VietinBank Branch Ba Dinh should improve its procedures towards convenience and friendliness with customers, making customers feel comfortable when dealing with the bank - Each transaction office must have a staff in charge of providing guidance and answering questions for clients in the most professional way to ensure the interests of both customers and the VietinBank Branch Ba Dinh 3.3.4 Improving organizational model and boosting quality of human resources - To improve the organizational model, VietinBank Ba Dinh needs to consolidate the organizational structure to match the scale and model of the company currently and in the future The organizational structure must meet the requirement: compact and effective to ensure the smooth and secured operation Gamba 01.X0810_Strategic Management _group 10 Page 48 Global Advanced Master of Business Administration - Improving the quality of human resource: Rapidly and effectively implementing and deploying the training and retraining of staff, consolidate staff in the whole of VietinBank Branch Ba Dinh - Adopting strategies to attract talents: Building special treatment policy for professional staff, the staff with high experience in management - Building a work system and an effective, specific and clear division of labor in order to evaluate accurately the work performance of employees 3.3.5 Marketing solutions - Principle of operation of VietinBank Branch Ba Dinh: putting the satisfaction of the customer's needs first, forward to customer with professional style and modern, regulating directly interview, taking a survey of customer satisfaction to find the limit to overcome weaknesses - Building brand name VietinBank Branch Ba Dinh through media channels, television, local radio, leaflets, porters, billboards, directed at the office, and through the annual customer conference to contact, catch the proposal and needs which the bank does not timely supply effectively - Improving website quality of VietinBank Branch Ba Dinh to provide fully information about products and services of the bank Develop a solid customer base and maximize customer value - Developing a large and stable customer base and using various banking products and service are key goals of any retail business Subjects of VietInBank Ba Dinh retail banking business are individuals and households using banking and financial services for the purpose of consumption and production For each group of products and services or each particular products and services, it’s necessary to determine appropriate criteria to segment customers (combining the application of pyramid model as above with other suitable criteria such as regions, age, occupation, education level, gender ) On the basis of criteria development and implementation of market segmentation, identifying target groups of customers to have the appropriate policies (product, distribution, price, Gamba 01.X0810_Strategic Management _group 10 Page 49 Global Advanced Master of Business Administration PR ) in accordance with each group of customers The customers can be grouped as follows:  Group of prosperous clients  Group of wealthy clients  Group of medium income clients  Group of standard clients - Establishing a system of customer’s relationship management (CRM) and customer analysis method based on a customer scoring system and the support of technology and information to maximize the customers’ needs to provide a wide range of product appropriately, contributing to increase customer value Gamba 01.X0810_Strategic Management _group 10 Page 50 Global Advanced Master of Business Administration 3.4 SOME RECOMMENDATIONS 3.4.1 Recommendations to the State and the Government - Continuing to sustain a stable politic and socio-economic environment The State is recommended to establish a stable, reasonable and long-term macro-economic environment for the stabilizing the macro-economy to create a stable business environment for the entire economy - Promptly completing standard legal system in accordance with International common rules to integrate in the International economy, create conditions, encourage enterprises, to development and effectively operate under the law Creating conditions for stable and equal development for all enterprises of all economic sectors and fields - Having close regulations in establishing enterprises, supervising the situation that enterprises are established massively without capital for operating or operating ineffectively - Completing dispute settlement mechanism related to loan insurance and treating mortgages Promulgating legal document to accelerate compulsory sale of mortgages at banks 3.4.2 Recommendations to the State Bank of Vietnam (SBV) - Flexibly regulating monetary and fiscal policies to raise the efficiency of monetary policies via regulating the open market operation, rediscounting, refunding Closely combining monetary policies with fiscal policies to control all cash inflows of the economy, especially from the State Budget and non-banking financial institutions - Completing the system of the State Bank of Vietnam in the direction of converting SBV into a real central bank Enhancing the relative independence of SBV and the Government to raise efficiency of monetary policy, establish the role and self-reliance of SBV in establishing and managing monetary policies - Promoting the role of inspecting and supervising of the State Bank of Vietnam to business activities of retail banking, ensuring secured and effective operation and avoiding unhealthy competition among comercial banks Gamba 01.X0810_Strategic Management _group 10 Page 51 Global Advanced Master of Business Administration - Expanding information system and preventing risks by upgrading, expanding customer information system and ensuring the accurate and timely information supply to banks Information system will contribute to limit the lack of customer information of commercial banks Besides, SBV is recommended to promulgate regulation on exchanging information among banks 3.4.3 Recommendations to Vietnam Joint Stock Commercial Bank for Industry and Trade - Improving proactiveness to branches and transaction office in business activities on the basis of potentials and internal forces of each branch - Having encouragement policy for branches with effective operation, bringing high profit for the Bank - Supporting software technology to help branches formulate a multi-dimensional information system Investigating and applying appropriate risk management system with current regulation pursuant to the operating characteristics of VietinBank and International common rules - Regularly opening training and knowledge fostering classes to enhance professional qualification for the staff to catch up with the current development trend of financebanking sector - Quarterly marking credit rating of branches to have orientations for the branches in each stage of development Gamba 01.X0810_Strategic Management _group 10 Page 52 Global Advanced Master of Business Administration CONCLUSION Vietnam economy in general and financial market in particular has integrated in to International economy Although the Vietnam enterprises have strongly grown both in quantity and quality and there are many opportunities, they have also encountered difficulties, challenges and potential risks In period 2012-2015, Vietnam economy will witness quality changes in competitive environment: it is transferring from domestic competitive to international competitive Vietnam commercial bank system will accompany with enterprises under the pressure of international economic integration which force the commercial banks including VietinBank Branch Ba Dinh to make preparation to integrate and develop Therefore, VietinBank Branch Ba Dinhis required to have some timely changes to stand firm on difficulties and suitably develop Hence, it is needed to be built real strength, right orientation to participate common environment Group10- Gamba.X0810- thank to ETC Center, teacher who taught and graduated guideline and gave career enthusiasm to transmit experience to MBA student Gamba 01.X0810_Strategic Management _group 10 Page 53 Global Advanced Master of Business Administration REFERENCES Theory on Strategic Management of Fredr David, Statistical Publishing House Encyclopedia – Ass Prof PhD Pham Hung Viet (http://dictionary.bachkhoatoanthu.gov.vn/default.aspx? param=1377aWQ9NzkwNSZncm91cGlkPTgma2luZD0ma2V5d29yZD0=&page=17) http://tamnhin.net/tieu-diem/5678/Tang-truong-kinh-te-Viet-Nam-nam-2011-cao-thuba-toan-Chau-A.html http://dvt.vn/20110106105532876p0c69/tang-truong-gdp-nam-2010-cua-ha-noi-dat- 11.htm Annual report of VietinBank Branch Ba Dinh; and data supplied by MBA program’s students working at competing banks Socio-economic report in June and the first six months of 2011 – Hanoi General Statistics Office Gamba 01.X0810_Strategic Management _group 10 Page 54 ... providers including Vietcombank; VietinBank, Agribank and BIDV - Group 2: Share of commercial banks having high adaptability, providing good service are Sacombank, Techcombank, ACB, etc VietinBank... current 10 accounts ATM mobilization(billions) Credit card sales Gamba 01.X0810_Strategic Management _group 10 VietinBank Vietcombank Ba Dinh Ba Dinh Branch 9.900 7.510 1,7 21 300 23500 Branch... Vietnam Joint Stock Commercial Bank for Industry and Trade VietComBank Joint Stock Commercial Bank for Foreign Trade of Vietnam TechcomBank Vietnam Technological and Commercial Joint Stock Bank ATM