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GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT CONSTRUCTION OF BUSINESS STRATEGY FOR BAO VIET NGHE AN LIFE INSURANCE Group No.: 01 Student’s name: Tran Xuan Binh Bui Huy Cuong Nguyen Van Dinh Nguyen Quang Thanh Team Class: GaMBA01.V01 Strategic administration HA NOI, 2010 TABLE OF CONTENTS Opening part Page  General background, necessity of the research topic…………………………  Purposes, meanings of the research topic……………………………………  Subject and scope of research ………………………………………….……  Study methodologies ……………………………………………………….…  Structure of this assignment …………………………………………… …… Chapter 1: RATIONALES OF STRATEGY CONSTRUCTION 1.1 Theories on construction of business strategy…………………………… 1.1.1 Definition of business strategy ………………………………………… 1.1.2 Role of business strategy to the enterprise/ ……………………………… 1.1.3 Classification of business strategies ……………………………………… 1.2 Process of building business strategy ……………………………………… 1.2.1 Determination of enterprise's mission, target………………… ……… 1.2.2 Evaluation of external environment …………………………………… 1.2.2.1 Macro environment …………………………………………………… 1.2.2.2 Microenvironment (industry environment)…………………………… 1.2.3 Analysis of company's internality ……………………………….……… 1.2.3.1 Financial analysis ……………………………………………………… 1.2.3.2 Function analysis …………………………… ……………… ……… 8 10 11 11 12 13 15 21 21 21 24 Team Class: GaMBA01.V01 Strategic administration 1.2.4 Construction of strategy projects……………….……………………… 24 1.2.4.1 Product strategy……………………………… ……………………… 24 1.2.4.2 Competitive strategy……………………………… ………………… 26 1.2.5 Analysis and selection of strategy ………………………….…………… 27 1.3 Specific characteristics of construction of life insurance business strategy Chapter 2: ANALYSIS OF THE COMPANY’S INTERNAL AND BUSINESS ENVIRONMENT 28 2.1 Introduction of Bao Viet Nghe An Life Insurance Company ……… …… 28 2.1.1 History of establishment and development ……… …………………… 28 2.1.2 Functions, tasks ……… ……………………………………………… 29 2.1.3 Apparatus organization …………… ………………………………… 30 2.1.4 Mission………………………………………………………………… 30 2.1.5 Vision…………………….……………………………………………… 30 2.1.6 Business philosophy ………….………………………………………… 31 2.1.7 Situation and results of business activities …………………………… 32 2.2 Analysis of business environment ……………………………………… 32 2.2.1 Economic environment ………………………………………………… 34 2.2.2 Social environment ……………………………………………………… 35 2.2.3 Natural environment …………………………… ……………………… 35 2.2.4 Technological environment ………………………… ………………… 36 2.2.5 Political and lawful environment ……………………………………… 37 2.3 Business environment …………………………………………………… 37 2.3.1 Supplier ………………………… …………………………………… 37 2.3.2 Customers…………………… ………………………………………… 38 2.3.3 Potential rivals………………………………………………… 38 Team Class: GaMBA01.V01 Strategic administration 2.3.4 Substitute products……… …………………………………………… 39 2.3.5 Established companies on the market ………….…… ………………… 41 2.4 Opportunities and challenges……………………………………………… 48 2.5 Analysis of Bao Viet Nghe An Life Insurance Company's resource … … 48 2.5.1 Human resources…….…………………………………………………… 49 2.5.2 Finance…………………………………………… …………………… 49 2.5.3 Material facilities ………………………………………………………… 49 2.5.4 Technology ………….………………………………………….……… 50 2.6 Analysis of strengths and weaknesses in administration ………… ….… 50 2.7 Analysis of competitive capacity……………………………………… … 51 2.8 Strengths, weaknesses ……………………………………………… …… 55 2.9 Matrix SWOT…………………………………………………………… Chapter BUSINESS STRATEGIES AND SOLUTIONS OF THE COMPANY 59 3.1 Strategy of business unit level (company level)……………………… … 59 3.1.1 Demands of customers …………………………………………… …… 59 3.1.2 Groups of customers and market segments ……………………………… 60 3.1.3 Capacity of distinction………………………………………………… 60 3.2 Strategic targets………………………………………………… … 60 3.3 Partial strategies …………………………………………………… 60 3.3.1 Product strategy…………………………………………………… 60 3.3.2 Strategy of distribution channel development …………………… …… 61 3.3.3 Strategy of services ……………………………………… …………… 61 3.4 Strategic solutions ………………………………………… .………… 61 3.4.1 Market solutions…………………………………………… ……… 62 3.4.2 Solution of distribution channels………………………………….……… 63 3.4.3 Solutions of products and services ……………………………… …… 64 Team Class: GaMBA01.V01 Strategic administration 3.4.4 Solutions on human resource and apparatus organization ……………… Conclusion 66  Recommendation………………………………………………………… 66  Conclusion……………………………………………………………… 68 Reference documents LIST OF TABLES AND CHART Page Tables Table 2.1 Date on the company’s results of business activities in the period 2006-2009 31 Table 2.2 Indicators of Vietnam economic growth rate ………… ……… 32 Table 2.3 Established life insurance companies in Vietnam till December 2009 Table 2.4 39 Turnovers and market shares of Life insurance companies in Vietnam - beginning months 2009………………………… … 40 Charts Chart 1.1 General chart of industry environment……… ………………… 15 Chart 1.2 Process of strategy construction ………………………………… 27 Chart 2.1 Apparatus organization of Bao Viet Nghe An Life Insurance…… 28 Charts Chart 2.1 Vietnam’s average income per capital …………………….……… Chart 2.2 Turnover of life insurance premium in Vietnam for period 2005- Chart 2.3 32 2009 33 Comparison of total life insurance turnover rate with GDP…….… 33 LIST OF ABBREVIATION - SWOT: Strength, Weakness, Opportunity and Threat Team Class: GaMBA01.V01 Strategic administration - LIMRA: Life Insurance Marketing Research Association; Bao Viet Life Insurance Corporation is a member of LIMRA - LOMA: Life Organizations Management Association is an international association established in 1924 Via that above 1,200 insurance and financial services companies in above 80 nations participate research and education activities in order to promote activities of companies Assignment Topic: CONSTRUCTION OF BUSINESS STRATEGY FOR BAO VIET NGHE AN LIFE INSURANCE COMPANY Opening  General background, necessity of the study topic Vietnam is developing country with crowded population (about 85.8 million people) Population structure is young, economic growth rate is high, average income per capita is continuously increased, life of people is improved, demands of people is becoming more and more diversified, especially demands of services of finance, health insurances, etc Last years Bao Viet Nghe An Life Insurance Company has been operating in the fileds of supplying customers with products of life insurance nationwide with Nghe An as core operation area The company at present occupies the biggest market shares for life insurance in Nghe An (above 60%), and is one of three biggest companies of Bao Viet Life Insurance Corporation Clearly identifying big development potentials and business opportunities of life insurance in Vietnam, recent years big life insurance companies in the world have been penetrating into Vietnam markets In Nghe An - a province with crowded population political economic center of North Central Vienam there is already presence of famous lie insurance companies in the world (such as Prudential, AIA…) Team Class: GaMBA01.V01 Strategic administration In business environment nowadays competition is harsher and harsher, activities are more and more difficult, if Bao Viet Nghe An Life Insurance company just bases on previous advantages without changes, it is difficult for him to maintain development rate, keep firmly his positions and market shares With this thinking out team wants to build suitable strategy for the company and agreed to select the topic "CONSTRUCTION OF BUSINESS STRATEGY FOR BAO VIET NGHE AN LIFE INSURANCE" for graduating assignment of Global Master of Business Administration Program (GaMBA) jointly organized by Center for Educational Technology and Career Development - Ha Noi National University and Griggs University - United States of America  Targets and meanings of research topic Factors influencing success of Bao Viet Nghe An Life Insurance Company are specifically analyzed, and then suitable business development strategy for the company is built Strategies and solutions for successful execution of strategies specified are built The highest target is to help the company to continue maintaining development rate, keeping firmly his position and market shares as well as occupying markets in the business fields of life insurance  Study object and scope Study object is Bao Viet Nghe An Life Insurance Company under management of Bao Viet Life Insurance Corporation This company specializes in only 01 business field viz supply of life insurance services Accordingly this assignment also only study activities of life insurance business at the company  Research methodologies Data collected include: Preliminary/primary and secondary data Secondary data: are collected from many sources such as Bao Viet Nghe An Life Insurance Company, Bao Viet Life Insurance Corporation, Vietnam Insurance Team Class: GaMBA01.V01 Strategic administration Association, Ministry, Ministry of Planning and Investment, Nghe An Statistics Department, Newspaper and Internet Primary database: directly exchanging, dealing and interviewing leaders of the company in order to know more about contents not shown in yearly reports and getting some strategic orientations in next years (these information are presented in chapter 3) Analysis techniques: Data are treated by methods of comparison, analysis, generalization, using SWOT model and Michael Porter's model - competition forces  Structure of this assignment This assignment includes 03 chapters Chapter 1: Rationales of strategy construction Chapter 2: Analysis of the company's business and internal environment Chapter 3: Business strategies and solutions of the company Team Class: GaMBA01.V01 Strategic administration Chapter 1: RATIONALES OF STRATEGY CONSTRUCTION 1.1 Theories on construction of business strategy 1.1.1 Definition of business strategy Term "strategy" is a plan of action designed to achieve a particular goal The word strategy has military connotations, because it derives from the Greek word for general In aspect of the history, term "strategy" is used in military with meaning as long term and big plan made basing on sure foundations about what opponents can or can't Usually people understand that strategy is military plan and art Nowadays term "strategy" is widely used in many different fields In business field, there are also many way for approach to the strategy According to traditional approach, business strategy is considered as general long term plan of 01 organization to achieve long term target Management history researcher Alfred D Chandler thinks that “strategy is to define long term basic targets of one enterprise and together to perform operation program and distribute necessary resources in order to achieve these targets” Thus, this ideology shows clearly that strategy is a clear-sighted planning process, in which enterprise selects targets for himself, defines action program so as to complete the best the targets and find the way to distribute corresponding resources Traditional approach has advantage of helping enterprises to imagine easily works, which need to be done for strategy planning, and to see benefits of strategy in aspect of long term plan However in the business environment, which is always changes as now Team Class: GaMBA01.V01 Strategic administration we can see limit of traditional approach, because it is impossible to adjust flexible to changes of business environment According to current approach, strategy can be wider than what enterprise intends or plans to According to Mintzberg, strategy is a model in flow of decisions and action programs Model can be any type of strategy: previously designed strategy or sudden strategy He proposed the model: Modem approach helps the enterprise to deal easily and flexible with changes of business environment, and develop creativeness of members in the enterprise Yet it requires leaders, managers that they must have good professional level, capacity of predicting conditions for execution of strategy and evaluation of sudden strategy Via above approach we can understand business strategy of one enterprise is an art of building long term targets and execution policies in order to create orientation and competitive advantages to enterprise Business strategy is to analyze, study and specify basic road, development process outline in business and production activities That is comprehensive, coordinative and united plan carefully trained in order to lead the business unit ensuring targets of business unit Business strategy is definition of business unit's basic targets, selection of action means and mode, distribution of necessary resources for execution of business targets Term “strategy” is usually used with 03 popular meanings Firstly, It is general action programs and execution of main resources for achieving targets Secondly, It is target programs of the organization, resources, which need to be used to achieve this target, policies of managing collection, use and arrangement of these resources Thirdly, It defines long term targets, selects action policies and distributes necessary resources to achieve these targets 1.1.2 Role of business strategy to the enterprise/ company 10 Team Class: GaMBA01.V01 Strategic administration second total biggest turnovers on the market Importance Importance to the to the industry company 3 2 2 2 WEAKNESSES (W) Total Apparatus/system is still cumbersome, dispersed, non-synchronous, and nonunited Staffs are still weak; it is in shortage of good experts in important fields It is in shortage of united and effective management policies Activities of marketing are not professional It is in shortage of effective agent training programs Existing training programs, especially skill training ones are heavily theoretical and low practical There are not trainers with high professional knowledge 2.9 Matrix of SWOT Opportunities (O) Market is potential/latent, participants Challenges (T) very Almost competitors on the in market are foreign life companies with stronger insurance is very few while financial capacity, global 30% households are able to trademarks, 54 more Team Class: GaMBA01.V01 participate Strategic administration in life experience insurance management Life not better technology insurance than Bao Viet life insurance companies on the market are years, numerous All competing (in companies develop comparison with other maximally their strength in countries), many new order to speed up process companies as (Prevoir, of penetration Cathay Life, Great Eastern) occupation still have weak positions of and market shares, thus competition Vietnamese people has shall become harsher and tradition of worry harsher "amassment of cereals for environment provision against changes Business always complicatedly; misfortunes and amassment interest, rate of foreign of medicines for provision exchange, gold price, etc at against especially diseases", some time reach to high worry about level learning future of children Main distribution Innovation of State's channel is still agents while company, privatization of Vietnamese society hasn't Bao Viet facilitate more yet really considered this as initiative in activities of an occupation (even this business, cooperation with occupation is boycotted foreign strategic partners and despised, etc) So life (as HSBC Insurance) in insurance industry meets order to approach to and difficulties in attractiveness 55 Team Class: GaMBA01.V01 receive transfer advanced technology Entrance especially Strategic administration of of labors into work as agents barriers, barrier Because companies Vietnam valid, are so present to customers' mentality, they development of network of appreciate foreign of immediate in economic benefits; all cash currently flows are invested into they limit channels with high and presence and competition quick interest In the near of foreign companies in future, banks, financial and localities including Nghe credit An Strength (S) organization still have many bad impacts on Strategies SO Wide network Prestigious trademark development of agents in standardization of works Well To understanding parrallel speed life insurance Strategies ST with to up 10 Process and train according to standards ISO business environment via available agents to be more 11 To continue investment reality of 44 operation professional in order to to maintain and enhance increase years To satisfy efficiency more occupy markets diversified demands and moe value of trademark, and to heighten national of To combine sales of life spirit customers thanks to cross insurance and non-life 12 To build image of sale of life insurance and insurance products; to take agents to be more and more non-life insurance the full advantage of professional; to affirm products in members of trademark of Bao Viet agents' works as a true one, Bao Viet group corporation yielding high incomes; to 56 Team Class: GaMBA01.V01 The crowded most customers, To speed second advertisement the Strategic administration up attract more labors to work and for agents total biggest turnovers on propaganda activities; to 13 To popularize widely in affirm the market position and people trademark benefits insurance; of to life make To continue improving customers appreciate more products, increasing quality and more life insurance of services in order to keep the Strengths (W) Apparatus/system still old customers and attract new customers Strategies WO Strategies WT is To realize concentrated 14 To increase competitive cumbersome, management according to ability, keep firmly maket dispersed, non- model of life insurance shares synchronous, and united non- companies in the world 15 To manage, use costs To perform cooperation, effectively Staffs are still weak; it training for improvement of 16 To coordinate strictly is in shortage of good employees, development of with experts in government and important human resources according authorities in order to take fields to standards LIMRA (Life the full advantages of their It is in shortage of Insurance Marketing and effective support united and effective Research Association) management policies To maintain well To cooperate research, relations with media units, Activities of marketing hire are not profession 17 experts for the perform well PR activities positions, and in the fields, It is in shortage of what the company can't effective agent training meet 57 Team Class: GaMBA01.V01 programs Existing training To cooperate programs, LIMRA (Life especially skill training Marketing ones are theoretical with Insurance Research to building low policies of practical There are not management trainers with and heavily Association) and Strategic administration action and agent high training professional knowledge There are policies attracting talents and human resource with high professional level in fields of life insurance market and marketing development Via analysis of SWOT and in conditions of Vietnam, with the market where few quantity of life insurance purchasing people, not many life insurance companies, this market can be considered as the big one so that life insurance companies can compete and achieve market shares Hence the company can select all measures above mentioned to speed up business activities Chapter BUSINESS STRATEGIES AND SOLUTIONS OF THE COMPANY 3.1 Strategy of business unit level (company level) Pursuant to analysis at chapter 2, to give strategic targets and solutions, we need to determine strategies at business unit level (strategy of business unit: SBU) According to Derek F Abell about process of decision making, to build strategy of business unit, it needs 03 factors viz.: demands of customers, groups of customers 58 Team Class: GaMBA01.V01 Strategic administration and distinction ability These factors determine way the company shall compete in 01 business or industry 3.1.1 Demands of customers Demands of customers are expectation, desire, necessity or thirst , which can be satisfied by features of products or services According to Abraham (Harold) Maslow (1908 – 1970) demand of safety is the second important one among 05 basic demand groups of human being On Vietnamese market, rate of people participating in life insurance is too low while their income and life are high Thus next years number of customers, who have demand of life insurance shall increase indispensably Knowing this demand, the company needs to offer many kinds of product in order to satisfy more and more diversified, higher and higher demands of the customers 3.1.2 Groups of customers and market segments Reality shows that last year the company has mainly exploited rather good and average customers, and hasn’t paid much attention on rich people in the society, while rich people themselves are customers yielding big value and high effective contracts (rule Pareto or rule 80/20) Next time the company needs to concentrate on determining target customers, areas for target markets and increase of contract bigness 3.1.3 Capacity of distinction The most important distinction of the company is to own the famous trade mark in the country, long term prestige with customers especially on Nghe An market The company needs to take strictly the full advantage of this distinction in order to get competitive advantages 3.2 Strategic targets Average growth of turnover from new exploitation: 25% /year 59 Team Class: GaMBA01.V01 Strategic administration Growth of total average turnover: 10 %/year Firmly keeping market shares not lower than 60% 3.3 Partial strategies 3.3.1 Product strategy It needs to diversify kinds of products including main and auxiliary ones, satisfying different demands of many kinds of customers It needs carry out long term products, big insurance amount, products of united or joint venture units, etc directing to customers with big financial ability 3.3.2 Strategy of distribution channel development In the near future, main distribution channels are still agents, contributing above 95% turnover of new exploitation Decisive distribution channel with above 1,300 agent is maintained Quality: Agents operate professionally This shows via criteria K.A.S.H K: Knowledge: firmly knowing products, operational process, finance and laws A: Attitude: Clearly understanding occupational meanings in order to have good attitude to occupation of life insurance agents S: Skills: firmly grasping skills contact, communication, and consulting of products in accordance with demands of customers H: Habits: Practicing professions, specialty of regular consulting, making knowledge and skills to become daily work habits of each agent In addition it needs to develop distribution channels via banks 3.3.3 Strategy of services Services to customers are quick, convenient and modern Bao Viet Life Insurance is built with products and services yielding quality of life 3.4 Strategic solutions 3.4.1 Market solutions 60 Team Class: GaMBA01.V01 Strategic administration Under general influence of Bao Viet trade mark, Bao Viet Life Insurance is one of the famous trade marks know by many people However activities of marketing, market development last time have been evaluated as to be not professional, united, strongly impressive to customers and not satisfy demand of market information to functional units in the company The tasks are given as follows: To maintain and develop trade mark of Bao Viet Life Insurance together trade mark of Bao Viet group to be a strong one, which always are known and believed by customers Take initiative to propose and participate in effective trade and sale promotions To define potential markets and segments of potential customers suitable to each group of products and according to each area Main solutions on market: - To coordinate with Corporation and Group in order to execute successful change of trade mark to be suitable new business situation, and to increase competitiveness - To carry out Bao Viet life insurance trade mark identifying system in accordance with new standards in unity with whole system - To realize consistently and professionally activities of trade mark advertisement, sale promotion, agent recruitment support; to apply methodology of letters “O” On-Air: Advertisement on TV, Radio Off-Air: Advertisement on newspapers, magazines and publications Online: Online advertisement on websites On-Ground: Advertisement on the ground, reportages serving customer meetings, meetings for agent recruitment 61 Team Class: GaMBA01.V01 Strategic administration - Realize periodically activities of market research, research of customers’ purchase act change - To evaluate customers’ satisfaction to products, services, serving style of employees and agents - To evaluate and measure marketing activities, then to have suitable and effective action projects 3.4.2 Solution of distribution channels Until the end of 2009, the company has over 1,000 agents This is main force yielding most turnovers to the company However above mentioned quantity of agents is not corresponding to the potentials of the markets Main solutions: Recruitment of agents: To concentrate all resources, forces on recruitment of agents including the ones inside and outside province, but to pay much attention on Nghe An area in order to increase number of agents to 1,300 Organization: To continue maintaining model of agent of 03 levels (agent – chief of the group – leader of the section), to study and propose to the Corporation model of corporation; to classify agents into different levels basing work capacity in order to have suitable policies to each groups; to build superior agents who are able to sell general financial products and direct to high class customers Policies of agent: To continue completing policies of payment and bonus to agent according to consulting of LIMRA; to create attractive/ effective mechanism, regulations to recruitment and operation of agents; to build both short and long term competition programs in order to create momentum for promotion of effective action movements to agents Training: To develop own trainers and also hired trainers from universities, prestigious training centers; to building many training programs about establishment of 62 Team Class: GaMBA01.V01 Strategic administration targets, plans, time management, work organization, etc; to train methods of coaching new agents Management of activities: To rearrange system of agents; to organize activities and strengthen supervision of agents’ activities; to develop sale and recruitment support tools, action management tools; step by step to develop modern tools, software to support activities of agents Started to carry our distribution channel via banks but the effectiveness is not yet high, presently set up cooperation relation with Techcombank, Agribank, etc; to maintain and set up more relations with banks for future preparation 3.4.3 Solutions of products and services To propose the corporation to check list of products, reevaluate and stop using ineffective products To concentrate on products made by joint venture unit, as this is attractive product flow and attracts big attention of customers To establish modern customer space: material facilities, clothes, serving attitude, etc To maintain collection of premiums directly from customers, concurrently developing other new form (paying via post office, banks, ATM card, etc) in order to facilitate customers To notify timely information related to life insurance contracts to customers; to supply useful services in order to help customers to perform some transaction basing on modern technologies such a SMS, internet, call center To continue improving process of insurance benefit /right settlement, ensuring quick, timely, and exact settlement; to increase rate of resigning contracts To build modern customer care program, develop added value services besides contracts; there is distinguishing of each customer group 3.4.4 Solutions on human resource and apparatus organization 63 Team Class: GaMBA01.V01 Strategic administration Human resource: There are policies to attract proficient/good expert in the field of life insurance To speed up rearrangement of labors of sections, units rationally, suitable to capacity, strong point of staffs/labors To build system of specific descriptions to each unit/ section and position To build program system and learning maps to each position basing on descriptions of works To build promotion road t each position basing on combination with learning map To organize training programs to improve professional knowledge and skills to employees/labors To build friendly work environment, connected with material and non-material policies, creating work momentum Organization of apparatus: To propose move of some professional work contents (accounting, service) to the corporation for execution To merge, increase quantity of units/sections in order to execute concentrated management model according to the models of foreign life insurance companies Apparatus of the company is reorganized into 03 main sections/units: Business development section: is in charge of development of distribution channels, sale support, action management at the agents The company offers priority of concentration of human resources to this section Customer service section: is in charge of serving and care of customers (loans according to the contracts, change of the contract conditions, customers care programs), managing activities of premium collection Administration section: is in charge of management of material facilities, supply of essential service so that other sections can operate 64 Team Class: GaMBA01.V01 * Strategic administration * * CONCLUSION AND RECOMMENDATIONS  Recommendations *To State: To continue maintaining priority policies to life insurance industry such as exemption of individual incomes from interest in life insurance participation to customers To postpone time of licensing to new life insurance companies; to limit expansion of the competing and operating companies' networks 65 Team Class: GaMBA01.V01 Local authorities should pay more Strategic administration attention, especially on media, telecommunication works/activities in order to support Bao Viet life insurance - the unique life insurance company of Vietnam on the market * To Bao Viet group and Bao Viet Life Insurance Corporation To continue investments of finance, human resource, technology and sale promotion programs to the company, as Bao Viet Nghe An Life Insurance Company is one of 03 companies with the biggest turnover in the corporation, and Nghe An is a market, which many competing companies direct to  Conclusion: Rationales and reality prove business strategy has important role in activities of companies in modern economy For activities in the industry with fierce competition, one correct business strategy is very necessary to the company on the way of integration It shall help the company to cope flexibly, timely, and in the right direction with changes of business environment Via construction of business strategy, the company shall define correctly systems of targets, policies and measures; which need to be executed in the future However in the business environment with many changes, to increase effectiveness of strategy application into business reality, "flexibility" is very necessary This means that there is selection of the most feasible methods/measures in order to achieve given targets Therefore determination, application of strategy into real business of Bao Viet Nghe An Life Insurance Company in next stage are very difficult mission And all employees of whole company need to have determination Together proposal of business strategies to Bao Viet Nghe An Life Insurance Company, our group hopes that strategies given shall help the company to develop 66 Team Class: GaMBA01.V01 Strategic administration stably and raise his competitive position higher and higher in the life insurance business industry of Vietnam in general and Nghe An in specific * * * In condition of ending year, both research, execution of the topic and concentration on fulfillment of work targets and plans at the company, although we try our best, it is sure that the thesis can't avoid shortcomings We would like to express our gratefulness to MBA program of GRIGGS, Dr Soren, Dr Ngo Kim Thanh - subject: strategy administration, teachers of the programs and management board of Bao Viet Nghe An Life Insurance Company , who help us to complete this topic Reference materials Books 1.1 PGS.TS Le The Gioi (2009), “Strategy administration”, Statistics publisher 1.2 Syllabus: Strategy administration, MBA program of university GRIGGS Reports and magazines: 2.1 Reports on business results in the period 2006 – 2009 of Bao Viet Nghe An Life Insurance Company 67 Team Class: GaMBA01.V01 Strategic administration 2.2 Report on development history of Bao Viet Nghe An Life Insurance Company 2.3 Insurance business laws and documents of guidelines for execution 2.4 magazines: Vietnam insurance market in years 2005-2008 (Ministry of Finance) Website 3.1 http://www.baovietnhantho.com.vn 3.2 http://www.chinhphu.vn 3.3 http://www.mpi.gov.vn 3.4 http://www.gso.gov.vn 3.5 http://www.mof.gov.vn 3.6 http://www.watsonwyatt.com 3.7 http://www.baohiem.pro.vn 3.8 http://avi.org.vn/ 68 ... knowledge from developed countries (such as MBA of university GRIGGS) helping to train human resources in Vietnam CHALLENGE (T) 43 Total Team Class: GaMBA01.V01 Strategic administration Almost... 1.2.3.2 Function analysis …………………………… ……………… ……… 8 10 11 11 12 13 15 21 21 21 24 Team Class: GaMBA01.V01 Strategic administration 1.2.4 Construction of strategy projects……………….……………………… 24 1.2.4.1... Customers…………………… ………………………………………… 38 2.3.3 Potential rivals………………………………………………… 38 Team Class: GaMBA01.V01 Strategic administration 2.3.4 Substitute products……… …………………………………………… 39 2.3.5 Established