Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (41)

2011 | GLOBAL ADVANCED MBA PROGRAM (M1009) | Group No.: 03 CAPSTONE PROJECT REPORT Building business strategy for Thang Long Securities Joint Stock Company from 2011 to 2015 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CONTENT INTRODUCTION………………………………………………………………….5 CHAPTER 1.1 Overview about business strategy of enterprise 1.1.1 Concepts 1.1.2 Typical features of business strategy 1.1.3 The role of business strategy in enterprise .9 1.2 Process of building business strategy of enterprise .10 1.2.1 Define Vision, Mission, Target, Policy and Core thinking 10 1.2.2 Analyzing external environment 11 1.2.3 Analyzing internal environment 14 1.2.4 Building business strategy 15 1.3 Tools used to analyze strategies 15 1.3.1 SWOT matrix .15 1.3.2 Quantitative Strategic Planning Matrix (QSPM) 16 CHAPTER 18 2.1 Overview about TLS .18 2.1.1 History of foundation and development .18 2.1.2 Trading sector .21 2.1.3 Organization structure 21 2.1.4 Vision and mission .22 2.1.5 Business principles .22 2.2 Analyzing external environment of TLS 23 2.2.1 Analysis of macro-environment 23 2.2.2 Analyzing sector environment of securities business 32 2.2.3 Opportunities and threats 39 2.3 Analyzing internal environment 39 2.3.1 General business result of TLS .39 2.3.2 Operations of department results 52 2.4 SWOT matrix TLS 61 CHAPTER 65 3.1 Orientation for business strategy of TLS in period of 2011 - 2015 65 3.1.1 Strategic targets of TLS 65 3.1.2 Building partial strategies .65 3.2 Selecting business strategy for TLS in period of 2011 - 2015 72 3.3 Solutions for implementing business strategy of TLS .74 3.3.1 Solutions on human resource .74 3.3.2 Solutions on Marketing 77 3.3.3 Solutions on capital 78 CONCLUSION .80 Appendix I ……………………………………………………………………………… 82 Appendix II ……………………………………………………………………………… 90 2/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn List of symbols and abbreviations ABS ACBS An Binh Securities Joint Stock Company ACB Securities Joint Stock Company APEC BCG Asia - Pacific Securities Joint Stock Company Boston Consulting Group BVS FPTS Bao Viet Securities Joint Stock Company FPT Securities Joint Stock Company 11 12 HNX HSC Hanoi Securities Trading Department Ho Chi Minh City Securities Joint Stock Company 13 14 HSX/HOSE KEVS Ho Chi Minh City Securities Trading Department Kim Eng Securities Joint Stock Company 15 16 QSPM SBS Quantitative Strategic Planning Matrix Sacombank Securities Joint Stock Company 17 18 SSI TLS Sai Gon Securities Joint Stock Company Thang Long Securities Joint Stock Company 20 21 VNDS VND Vndirect Securities Joint Stock Company Dong 3/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn List of table Table 1.1 SWOT analysis 16 Table 2.1 Important milestones 19 Table 2.2 Comparison of some criteria in business of TLS against rivals 38 Table 2.3 Some item of bussiness result in 2009 - 2010 ………………………….40 Table 2.4 Total accounts receiable in 2009 - 1010 ……………………………… 42 Table 2.5 Total liabilities in 2009 - 2010 ………………………………………….42 Table 2.6 Major financial ratio……………………………………………………43 Table 2.7 SWOT matrix of TLS .61 List of figure Figure 1.1 PEST model in analyzing macro-environment .13 Figure 1.2 Michael E Porter’s five force model 14 List of chart Chart 2.1 Top 10 brokerage market share in two trading departments 21 Chart 2.2 GDP growth rate of Vietnam in 2000 - 2010 26 Chart 2.3 Inflation rate of Vietnam in 2000-2010 28 Chart 2.4 Business result of TLS………………………………………………… 39 Chart 2.5 Assets and Equity……………………………………………………… 39 Chart 2.6 Growth in management account of TLS in 2008 - 2010 46 Chart 2.7 Personnel structure of TLS basing on laborage………………………… 48 Chart 2.8 Revenue of IB Services ……………………………………………… 66 Chart 2.9 Market share of issued value…………………………………………… 66 Chart 2.10 Revenue of Securities of Brokerage…………………………………… 68 Chart 2.11 Revenue of Securities of Investment ……………………………………73 4/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn INTRODUCTION I The imperativeness of topic The world economy has been in more stable phase after economic crisis and is having significant development Together with general development trend of the world economy, Vietnam is gradually marking position in global economy With the open economy, demand on capital in regard to enterprises increases and become diversified Securities market, by means of a part of market It is useful took to solve demand on capital After 11 years of foundation and development, securities market in Vietnam has gained significant achievements and steps At present, there are more than 100 securities companies and each of them self-drives to survive and develop after ups and downs in market The ups and downs of market in 2010 and first half of 2011 have made some securities companies recognize efficiency and adjust their trading activities Thang Long Securities Company (TLS) is one of the first securities companies adjusting their development strategy to be able to have improvement in securities market With open tendency of economy, TLS has to face up with more and more rivals not only domestic ones but also foreign one with strong finance capacity The increase of rivals reduces market share of TLS Although TLS has many competitive advantages namely strong finance capacity and trademark and over the past years, TLS always improves to increase prestige and product quality provided customers; TLS must have development strategy in the future against fiercely competitive pressure as present If applicable, the company can control risks, solid steps and mark position in Vietnam Securities market Coming from above problems, our groups realized the particularly important role of building strategy for existence and development of a securities company Therefore, the group decided to select topic in line with the theme “Building business strategy for Thang Long Securities Joint Stock Company " 5/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn II Researching objectives  To systematize basic knowledge and theory of strategic management and strategy building  To initially approach to actual operations of securities company in particular and Vietnam securities market in general  To apply gained knowledge building strategy for Thang Long Securities Joint Stock Company III Researching scope Researching time: we conduct this assignment from 17 July 20011 to 15 August 2011 Researching scope: Trading activities of Thang Long Securities Joint Stock Company, Vietnam securities market and some factors in currency market IV Researching methods  Analysis of data from books, newspaper and internet;  Observation from reality of the company;  Summary of appraisal about the company;  Expert method Structure of capstone project  Chapter 1: Theoretical foundation about building business strategy for enterprise  Chapter 2: Analyzing foundation for building strategy of Thang Long Securities Joint Stock Company  Chapter 3: Building business strategy of Thang Long Securities Joint Stock Company in period of 2011 – 2015 6/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 7/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CHAPTER THEORETICAL FOUNDATION OF BUILDING BUSINESS STRATEGY OF ENTERPRISE a Overview about business strategy of enterprise 1.1.1 Concepts 1.1.1.1 Concepts about strategy From the past up to now, there have been many definitions about strategy according to different viewpoint groups We would like to introduce and analyze some traditional and modern notions to have relatively entire and extensive view about strategy conception:  According to Alfred Chander (1962): “Business strategy covers definition of long term basic target of enterprise, selection of method or action program and allocation of resources to implement that target”  According to Ansoff H.I (1965): “We can consider strategy as “joint connection” among activities of enterprise and market consuming products, it contains four parts: market scope – product, growth rate (changes conducted by enterprise to match to market scope – definite products), competitive advantages and resonance”  According to school of Harvard Business University (1965): “Strategy is system of goals, targets stated under the form of sectors/business activities that the company wants to, entry, size, position that the company wants to achieve and basic policies as well as plans to implement predetermined targets”  According to William Glueck (1980): “Business strategy is a united, comprehensive and cooperative one designed to ensure the enforcement of basic targets in enterprise” or “Strategy is a united and general one drafted to gain achievements”  According Michael Porter: “Strategy is the creation of unique and valuable 8/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn position including differentiation, exchanged selection to focus on resources; from that it brings advantages for organization” From above definition, we can see that strategy relates to long term and basic goals of an enterprise Nevertheless, building and selecting the strategy oriented goals are not enough; strategy must be defined as matching to vision, mission of organization and methods as well as means to reach those goals the most effectively If applicable, it promotes strengths, overcomes weaknesses, makes use of opportunities and mitigates threats from external environment Thus, we can define strategy in general as following: “Strategy is a series of complex activities to mobilize resources of organization and gain certain objective.” 1.1.1.2 Concepts about business strategy of enterprise As mentioned above, strategy related to goals of an enterprise and set forth strategies must help enterprise gain predetermined goals Nevertheless, business strategy has connection to the methods for enterprise to be able to successfully compete in specific market It relates to strategic decisions about product selection, meeting requirements from customers, holding competitive advantages in comparison with rivals, exploiting and creating new opportunities According to Fred R.David “Business strategy contains means reach to longterm goals” It can say that, business strategy is means helping enterprises reach long term goals Business strategy is not to outline specific actions; it is compressive program, the most effective mobilization solutions for resources with the aim at conducting predetermined goals Business strategy in an enterprise can be defined in following general way: “Business strategy is an art of designing and organizing means to reach long term goals of enterprise; it has connection to changes of business environment and competition” 9/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 1.1.2 Typical features of business strategy From viewpoints about strategy mentioned above, strategy still has the most typical features in any period of time It reflects the nature of business strategy in enterprise with the most basic ones such as:  Business strategy defines basic goals and business orientation of enterprise in each phase  The orientation of strategy is to ensure the continuous and stable development in fluctuated business environment for enterprise  Business strategy ensures the maximum mobilization and optimal combination in exploiting and using resources of enterprise at present and in the future It also upholds advantages, catches opportunities to hold competitive initiative in market  Business strategy of enterprise is shown in continuous process from forming to conducting, assessing and adjusting the enforcement of predetermined targets  Business strategy always has idea to fight against and win in business market  Business strategy is always built in long term (it may be years, years or 10 years) 1.1.3 The role of business strategy in enterprise The role of business strategy in enterprise is demonstrated through following issues:  Business strategy helps enterprise define their orientation in each specific period of time It is guideline for all production and trading activities of enterprise  Business strategy helps enterprise catch and make use of opportunities, promote strengths and have initiatives to overcome weaknesses, avoid or respond to mitigate damages from external threats in competitive market  Business strategy has significant contribution to the effect of using resources, promotes position of enterprise and ensures the continuous as well as 10/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn REFERENCES Blocher and co-workers (2002), “Strategic Analysis and Strategic Cost Management”, FredR.David (2000), “Concepts about strategic management” (translation edition), Statistics Publishing Garry D.Smit, Danny R Arnold.( 2003), “Business Strategy and Method” (translation edition), Statistics Publishing Griggs University– The US, “Document on Strategic Management of GaMBA” Liam Fahey & Robert M.Randall – MBA in hand, “Strategic management”, Ho Chi Minh City General Publishing TLS (2010), “Annual report in 2010 of Thang Long Securities Joint Stock Company” TLS, “Auditing financial report in 2009, 2010 of Thang Long Securities Joint Stock Company” Website: http://www.saga.vn/Quantrichienluoc/16423.saga Website: http://tls.vn 82/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Appendix I: A Sample Suvey Code: …… … QUESTIONNAIRE Full name of interviewee: …………………………………………………………………………………… Gender: 1 Male 2 Female Date of birth: ………………………………… Address: …………………………………………………………………………………………… ………………… Ward: ……………………….District: …………………………City/town: …………………………… Phone number: …………………………………………; Email: …………………………………………………… Date of interview: …… / …… / 2010 Time of interview: …… minute From …… O’clock…… to ……… O’clock … INTRODUCTION Dear customer, I am: ………………………………., market research collaborator of Thang Long Securities Trading Company (TLS) At present, our Company is carrying out a customer survey about service quality to serve customers better Therefore, I would like to exchange with valuable customers about some information related to service quality The interviewed result will be summerized for all customers and we would not share your personal ideas with anyone, except for having your agreement I hope to receive your enthusiatic contributed ideas I Information related to behavior and psychology of investors to securities investment 83/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Q1 Would you please tell me the reason for your participation in securities market? (Maximum alternatives) – SHOWCARD Using idle money Using spare time Raising income Updating social trend Gaining more knowledge and experience about investment Showing yourself with friends and relatives Exchanging and broadening relations Code Route Q2 Q3 Q2 Would you please tell me the time for observing transaction Daily 3-4 times/week 1-2 times/week Several weeks/time Several month/time Q3 Would you please tell me your forms of securities investment? – SHOWCARD Q4 Q4 Would you please tell me your securities investment strategy? – SHOWCARD Long-term investment Short-term investment Q5 Q5 Which of the following factors affecting your investment decisions? (Maximum alternatives) – SHOWCARD Market trend Rumor Financial statement of enterprises Long-term investment for enterprises’ future Trading trend of foreign funds and organizations Macro-economic situation in domestic and international markets Individual investment Group investment Code Q6 Route Q6 When talking about finance and securities markets, which are the five securities companies that you will name first 1……………………………………………… 2……………………………………………… 84/96 Q7 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 3……………………………………………… Q8 4……………………………………………… 5……………………………………………… Q7 In above-mentioned companies, which company you think to be the most well-known at present: ………………………………………………………………………… ………………………… 99 Q9 Q8 Would you please tell me the time when you started opening trading account at TLS? - SHOWCARD Above years 3-5 years 1-3 years Below year Not remember Q9 Would you please tell me the proportion of transactions at TLS in your total amount invested in securities? – SHOWCARD Below 30% 30% – 50% 50% – 80% Above 80% Q10 Which transaction center of TLS you often attend? SHOWCARD Kim Ma Lieu Giai Ly Nam De Hoan g Quoc Viet Hai Phong Branch Le Duan Go Vap Nguy en Cong Tru 85/96 4 10 98 Q10 Q11 Q12 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Phan Xich Long Ton Duc Thang Q11 You choose TLS (Maximum alternatives) because: SHOWCARD Prestige of the Company Good quality of products and services Diverse products and services Reasonable fee of services Favorable location (near your house/office, etc.) Having acquaintances, friends, relatives working at TLS Being introduced by acquaintances, friends and relatives Other: ……………………………………… II Evaluation of customer’s satisfaction to products and services of TLS Q12 Quality of services in general - SHOWCARD 1: Very good 2: Good 3: Normal 4: Not very good 5: Poor Route Q12.1 Opening account Q12.2 Q12.2 Ordering transaction Q12.3 Q12.3 Account inquiry service Q12.4 Q12.4 Procedures of cash advance, cash transfer, cash withdrawal Q12.5 Q12.5 Custodian service Q13 Q13 Process of ordering Code Route Q13.2 Q13.3 Q14 Q13.1 You often order: Directly at the transaction center Making phone calls Ordering via the internet Q13.2 Have you ever encountered any incident in ordering process? Yes No Q13.3 Would you please tell me specify the situation: 86/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn ………………………………………………………………………… ……………………………… ………………………………………………………………………… ………………………………………………………………………… ………… ………………………………………………………………………… ………………………………………………………………………… ……… Q14 Q14 Transaction fee – SHOWCARD Update on transaction fee of TLS and some securities companies 1: Very low 2: Low 3: Normal 4: High 5: Very high Route Q14.2 Q14.1 Transaction fee of TLS Q15 Q14.2 Compared to other securities companies Code Q15 Which distance services of TLS that you are using? -SHOWCARD a/ Are using: Transaction via the internet (Stock 24) Receiving results of ordering, checking account information, and market information via SMS Automatic ordering and information checking Contact Center Financial service via telephone (cash advance, cash transfer) b/Are not using Route Q16 Q17 Q16 Are you satisfied with distance services and utilities of TLS? - SHOWCARD Normal 1: Very satisfied 2: Satisfied 4:Dissatisfied 5: Very dissatisfied 3: Q16.2 Q16.3 Q16.4 Q17 87/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Q18 Q19 Q19 Q16.1 Transactions via the internet (Stock 24) Receiving results of ordering, checking account Q16.2 information, and market information via SMS Automatic ordering and information checking Contact Q16.3 Center Financial service via telephone (cash advance, cash Q16.4 transfer) Q17 Do you have any recommendations on new services? Yes No Q18 If any, please specify: ………………………………………………………………………… ……………………………… ………………………………………………………………………… ……………………………… ………………………………………………………………………… ………………………………………………………………………… ……………………………………………………………… III Evaluation on the staff of TLS Q19 How you evaluate the service quality of TLS’s staff? - SHOWCARD 1: Completely agree 2: Partly agree Route 3: Normal 4: Partly not agree 5: Not agree Q19.2 Q19.3 Q20 88/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Q19.1 Good professional qualification Q19.2 Quick and accurate operations Q19.3 Thoughtful, enthusiastic and cordial with customers Code Route Yes No Q20.2 Q21.1 Q20.2 If any, are you satisfied with the quality of consultancy? SHOWCARD Very satisfied Satisfied Normal Dissatisfied Very dissatisfied Q22 Q21.1 Do you expect to be supplied with investment and transaction consultancy services? Yes No Q21.2 Q22 Q22 Q22 Code Route Q20.1 Have you ever been received consultancy on investment and transaction from brokers? Q21.2 If having to pay high for these services, are you willing to pay? Yes No IV Evaluation on information supply to investors Q22 Which is the information channel that you often use to search for investment information? - SHOWCARD T.V (specify): …………………………………… Website specify):: ………………………………………… Online newspapers (specify): ……………………………… Specialist magazines (specify): …… Friends and relatives Special workshops 89/96 98 Q23 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn General shareholders’ assembly Other: …………………………………………………………… Q24 Q25 Q23 Do you often access website of TLS www.thanglongsc.com.vn to search for information? - SHOWCARD Rarely Sometimes Daily Q24 Are you often received analyses and comment on the market from TLS from info@thanglongsc.com.vn? – SHOWCARD Code Route Q26 Q25.2 Rarely Sometimes Q26 Daily Q25.1 Do analyses of TLS help you in making investment decisions? Q27 Yes No Q25.2 If not, please specify the reasons: …………………………………………………… ………………………………………………… Q.26 Do you have any recommendations to help TLS improve quality of information supply service to customers? ………………………………………………………………………… ………………………… …………………………………………… V Infrastructure Q27 Are you satisfied with following conditions at securities center? - SHOWCARD 1: Very satisfied 2: Partly satisfied 3: Normal Dissatisfied 4: Partly dissatisfied 5: Q27.1 Location of transaction center 90/96 Route Q27.2 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Q27.2 Parking Q27.3 Q27.3 Service quality of receptionists Q27.4 Q27.4 Promotion information and leaflets introducing products Q27.5 Q27.5 Billboard, logo, sign post Q27.6 Q27.6 Electronic board Q27.7 Q27.7 The area of floor compared to the number of customers Q27.8 Q27.8 Supporting utilities (chairs, air-conditioner, drink) Q27.9 Q27.9 Security Q27.10 Q27.10 Service quality of transaction staff at Military Bank Q28 Code Route Q28.2 Q29 Q28.1 Do you have any ideas to help TLS improve quality of services? Yes No Q28.2 If any, please specify: ………………………………………………………………………… ……………………………… ………………………………………………………………………… ……………………………… ………………………………………………………………………… …………………………… ………………………………………………………………………… ………………………………… Q29 Q30 Q29 In your opinion, service quality of TLS attains how many points in 10 rating scale:…… Q30 If any of your friends or relatives wants to invest in securities, will you introduce them to open accounts at TLS or not? Yes No Thank you for spending your valuable time for the interview Present gift to customer INTERVIEWER:.……………………………………………………… SUPERVISOR:……………………………………………………… 91/96 Code Route End GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Appendix II: Introduction about Investment Bank I General view about Investment bank 1.1 Concept of Investment Bank According to traditional view, Investment bank is known as a “intermediary” subject with main role as consulting, and implementing capital mobilization in capital market for the customers (including enterprises as well as governments) Capital sources in capital market mostly have quality of medium term and long term while short-term capital sources are often mobilized in currency market through a system of commercial banks Today, Investment bank has opened its numerous types of business into different fields and has become a diversified business subject, taking traditional investment banking operations as core activity Apart from investment banking operations, main business fields of a modern investment and development bank (including such services as securities issue and trading consultant, business combination) consist of investment (sales and trading), research, investment management, merchant banking and prime brokerage 1.2 Main operations There are many ways dividing the operations of an investment bank Basically, Investment bank is often divided into such fields of operation as below: 1.2.1Investment Banking This operation has the same name of “investment bank”; perhaps this is the most long-term traditional one and is the reason for the foundation of Investment bank Tradition investment banking includes consultant services, guarantee securities issue for the customers; therefore, it is possible to consider investment banking as the one in primary market Types of securities include debt securities (debenture), and capital securities (conversion stock and debenture) 92/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Investment banking has gradually extended including sales and trade consultant, business combination (mergers and acquisitions), Reengineering the Corporation Consultant This operation uses professional knowledge in the field of Corporate Finance and so it is considered as a prolonging operation of securities issue and capital mobilization M&A consultant service includes Mergers and acquisitions, joint-venture foundation, strategic alliance, invested capital withdrawal and strategic consultant against hatred acquisitions Investment banking often brings back enormous consultant cost and guarantee for Investment banks and creates basis as a springboard to cross-sell other products Customers of this service mainly include enterprises, investment funds, organized investors, governments and local authorities 1.2.2Sales & Trading If Investment banking happens mainly in primary market, investment operation mainly happens in secondary market Investment operation includes brokerage and investment Brokerage operation is mainly applied for posted securities products (including derivative posted products as future contracts or option contract); in which, Investment banks play an intermediary role to accept and match the commands for the customers Investment includes investment banking for customers with the function to create market liquidity; in which, Investment banks play the role as the market establishers and privately owned operations with the aim at speculating market price fluctuation Investment operation is highly risky due to the banks use their own capital to business 1.2.3Research The research is implemented by researchers with the target to observe the business situations of types of securities in the market, helping the investors possibly make trading decisions timely and flexibly Research products are diversified, including common research reports as macroeconomic, business research, investment strategy research and products 93/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn research Research report is the foundation that helps the investors possibly make trading decisions timely Research also includes building and developing analysis and management tools of investment portfolio for the customers 1.2.4Merchant Banking Merchant banking is a type of investment banking but its main objects are replacing products The replacing products are known as investment products not traditional products (stocks and debenture), including real estate investment, leveraged finance loan, great credit agreements such as co-sponsored loan, and project sponsor 1.2.5Investment Management Investment management has more and more become an important business of Investment banks owning to low risk level and stable income Investment management can be divided into possession management and property management 1.2.6Prime Brokerage The Prime brokerage has many different names in English such as “Prime Brokerage”, “Capital Market Prime Services”, “Global Clearing Services” or “Prime Securities Services” This operation appeared in 1980s; however, only being developed strongly since the end of 1990s and recently it has been separated into a specific operation group thanks to the heavy development of speculation funds and organized speculators II Differentiate between Investment bank and Commercial bank II.1 Commercial bank Commercial bank is the one that mainly runs its business in currency market Main operations of commercial banks are receiving bank deposits (transactional accounts, savings deposit, term deposit) and using these capital sources to loan the economy As a subject of the currency market, activities of commercial banks mostly focus on short-term operations Commercial banks play the role of intermediary subjects and 94/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn enjoy the interest rate difference between cost to pay the interest rate for the customers and the earnings from the interest rate of loans Therefore, in the model of commercial bank, surplus units and underfunded units cannot meet each other directly because they not believe in each other and not know each other (the dissymmetry in information) Figure 1: Model of Commercial bank Surplus capital Capital Commercial bank Capital Low on capital Low on capital Surplus capital Low on capital Surplus capital II.2 InvestmentCredit Bankrisk Credit risk Investment Bank is the subject that runs its business in capital market with the function to consult and act as a guarantee for security issue with an aim at mobilizing capitals for the customers With the model of Investment bank, the capital source can directly flow from the surplus capital subjects to low-on-capital subjects; and Investment bank only plays the intermediary role so that the parties can understand each other through information prospectus and road shows Although there is technical support of other independent professional institutions such as Credit rating agency (determine credit risky rate), auditing company (determine financial information), law consultant company (determine legal aspects) Investment bank plays the role of “the conductor” for this connection Figure 2: Model of Investment bank Surplus capital INVESTMENT BANK Surplus capital Surplus capital Investment risk Low on capital Low on capital Low on capital With this method, low-on-capital subjects will find it easy to mobilize long-term capital sources at suitable cost and surplus-capital subjects will be allowed to invest 95/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn directly into low-on-capital subjects, accepting risks of low-on-capital subjects, but the expectation about higher profits than depositing into commercial bank 96/96 ... PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 7/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CHAPTER THEORETICAL... 2/96 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn List of symbols and abbreviations ABS ACBS An Binh Securities Joint Stock Company... Kim Eng Securities Joint Stock Company 15 16 QSPM SBS Quantitative Strategic Planning Matrix Sacombank Securities Joint Stock Company 17 18 SSI TLS Sai Gon Securities Joint Stock Company Thang