Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (290)

CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY OF AN BINH COMMERCIAL JOINT STOCK BANK FOR THE PERIOD 2010 – 2015 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY OF AN BINH COMMERCIAL JOINT STOCK BANK FOR THE PERIOD 2010-2015 Class: GeMBA01 E01 Group: No Students' name: Doan Thi Dzung Thai Thi Yen Pham Anh Van Le Duc Dinh Le Thi Huong HANOI 2009 ACKNOWLEDGEMENT First of all, the group of authors would like to express our deep gratitude to: The lecturers of the MBA training program of United State Griggs University - who provide knowledge; Managers and staff of the Centre for Educational Technology and Career Development - Hanoi National University(ETC)-who are enthusiastic and indispensable helpers in the process of learning; The authors would also like to thank the Managers and staff of An binh Joint Stock Commercial bank- who are main supporters in the process of studying about the situation of the enterprise; And especially, Board of Management of the Electricity of Vietnam (EVN)- who create the opportunity, finance, provide the support of time so that members of the group can join and complete the training course Finally, we would like to send the most sincere thanks to families, colleagues and classmates -who are the solid basis of spirit for members of the group during the participation of Griggs University MBA program and the process of completing major assignment Capstone Project "Building business strategy of An Binh Commercial Joint Stock Bank for the period 2010-2015" TABLE OF CONTENTS ACKNOWLEDGEMENT LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES, GRAPHS INTRODUCTION 10 Chapter BASIC ARGUMENTS ON BUSINESS STRATEGY OF THE ENTERPRISE 13 1.1 Overview of strategy and business strategy 13 1.1.1 Definition of strategy 13 1.1.2 Business strategy 14 1.1.3 Process of strategic management 16 1.2 Vision, mission and core value 17 1.2.1 Vision .17 1.2.2 Mission 17 1.2.3 Core value .18 1.3 Strategic analysis 19 1.3.1 Analysis of the external environment 19 1.3.2 Analysis of the internal environment of the enterprise 24 1.3.3 Summary of SWOT analysis .26 1.4 Selection and construction of business strategy .28 1.4.1 Business strategies in practice .28 1.4.2 Construction of main objectives of the strategy 34 1.4.3 Selection of strategy 34 1.4.4 Solutions of strategy implementation 35 1.5.5 Assessment of strategies and implementation measures 36 1.5 Some issues on building business strategy for commercial banks 36 CHAPTER STATUS OF BUSINESS STRATEGY OF AN BINH COMMERCIAL JOINT STOCK BANK 43 2.1 Overview of An Binh Commercial Joint Stock Bank .43 2.1.1 General introduction 43 2.1.2 Establishment and development process of ABBANK .43 2.1.3 Milestones of chartered capital growth 45 2.1.4 Organizational structure of ABBANK 45 2.1.5 Products and services of ABBANK 48 2.2 Analyze and evaluate the situation and business performance of ABBANK .48 2.2.1 Business results of ABBANK .48 2.2.2 Capital mobilization and lending .51 2.2.3 Financial investments 52 2.2.4 Development of Information Technology 53 2.2.5 Development of networking 54 2.2.6 Operation of international payment 54 2.2.7 Development of card system .55 2.2.8 Risk management .55 2.2.9 Strategic partnership 56 2.2.10 Social activities 58 2.3 Analyze and evaluate the current business strategy of ABBANK 58 2.3.1 Current business strategy of ABBank 58 2.3.2 Evaluation on current business strategy of ABBANK 60 2.4 Analysis on impact factors from the external business environment 61 2.4.1 Political and legal environment 61 2.4.2 Economic environment 61 2.4.3 Cultural and social environment 64 2.4.4 Technology environment 67 2.5 Analysis on factors of the banking sector of Vietnam 67 2.5.1 Threat from new entrants 67 2.5.2 Threat of substitutes 68 2.5.3 The bargaining power of Buyers 68 2.5.4 The bargaining power of supplier 69 2.5.5 Analysis of competitors 69 2.6 Analysis of internal factors of ABBANK 76 2.6.1 Factors of technology, product and service quality 76 2.6.2 Factor of customer service 77 2.6.3 Branch 78 2.6.4 Corporate Culture 78 2.6.5 Human resources 79 2.6.6 Research and development (R&D) .81 2.6.7 Financial factor 81 2.6.8 Leadership and management 84 2.7 Identify strengths & weaknesses and opportunities & challenges of ABBANK 86 2.7.1 Strengths .86 2.7.2 Weaknesses 87 2.7.3 Opportunities .88 2.7.4 Threats 88 CHAPTER SUGGESTIONS AND SOLUTIONS TO BUILD THE BUSINESS STRATEGY OF ABBANK FOR THE PERIOD 2010-2015 .90 3.1 Summary of analysis results in Chapter 90 3.2 Summary of SWOT Analysis .90 3.3 Propose business strategies for ABBank 93 3.4 Select the business strategy for ABBANK 94 3.5 Business strategy of ABBANK in the period 2010-2015: 95 3.5.1 Mission of ABBANK 95 3.5.2 Vision of ABBANK .95 3.5.3 Core values of ABBANK .95 3.5.4 Business strategy of ABBANK 96 3.5.5 Specific objectives 97 3.6 Solutions on implementing business strategies 98 3.6.1 Solution of technology: 98 3.6.2 Solutions on management of human resources 99 3.6.3 Solutions on marketing 100 3.6.4 Solutions on improving financial capacity .101 3.6.5 Solutions on improving the effectiveness of risk management 102 3.6.6 Solutions on improving the efficiency of executive management 102 3.6.7 Solutions on R & D 103 3.7 Conditions on strategy implementation 103 3.8 Route for implementation of strategic solutions 104 CONCLUSION 105 APPENDIX 106 REFERENCES 107 LIST OF ABBREVIATIONS ABBANK An binh bank- An Binh Joint Stock Commercial Bank ATM Automatic Transfer machine CITAD Centre for Information Technology and Development GDP Gross Domestic Product ISO International Standard Organization POS Point of Service MIS Management information system SMS Short Massage Service USD United State Dollar WTO World Trade Organization VND Vietnam dong Vietinbank Vietnam Joint Stock Commercial Bank for Industry and Trade BIDV Bank for Investment & Development of Vietnam VCB,Vietcombank Bank for Foreign Trade of Vietnam Agribank Bank for Agriculture and Rural Development of Vietnam TCB, Techcombank Technological and Commercial Joint- stock Bank HSBC Hongkong Shanghai Bank Corporate SOCBs State-owned commercial banks JSCBs Joint Stock Commercial Banks ACB Asia Commercial Bank STB, Sacombank Sai gon Thuong tin commercial Joint stock bank MB Military Joint Stock Bank EAB Eastern Asia Bank Habubank Hanoi Building Commercial Joint Stock Bank VP bank Viet nam commercial joint stock bank for private enterprises VIB Viet nam International Bank ANZ Australia and New Zeland Bank SBV State Bank of Viet name LIST OF TABLES Table 1.1 SWOT Matrix Table 1.2 Model GREAT Table 2.1 Chartered capital of ABBANK Table 2.2 Several financial indicators of ABBANK 2006-2008 Table 2.3 Income Statement of ABBANK 2006-2008 Table 2.4 Capital mobilization of ABBANK 2006-2008 Table 2.5 Outstanding loans of ABBANK in 2006-2008 Table 2.6 List of some companies contributed by ABBANK Table 2.7 Demand of investment loans for power works of EVN in 2010- Table 2.8 2015 Number of banks in 1991-2008 Table 2.9 Basic financial indicators of competitors in 2008 Table 2.10 Structure of ABBANK human resources based on qualifications Table 2.11 Evaluation the surpassing capability of ABBANK Table 2.12 Evaluate and compare strengths and core capacity of ABBANK Table 3.1 Analysis of SWOT matrix Table 3.2 Selecting ABBANK's strategy through GREAT model Table 3 Specific financial objectives of ABBANK 2010-2015 LIST OF FIGURES, GRAPHS Figure 1.1 The strategic management process Figure 1.2: Model of five competitive forces created by M Porter Figure 2.1 Organization chart of ABBANK Figure 2.2 Chart of GDP growth rate of Vietnam Figure 2.3 Chart on comparison of Cash/M2 ratio Figure 2.4 Market share of bank mobilization and lending in 2000-2008 Figure 2.5 Comparison on branches & transaction offices of commercial banks in 2008 Figure 2.6 Chart on equity of commercial joint stock banks in 2008 Figure 2.7 Chart of comparison of total assets of commercial banks in 2008 Figure 2.8 Chart of NPL of commercial banks Figure 2.9: Chart of ROA of commercial banks in 2008 Figure 2.10 Chart of ROE of commercial banks in 2008 INTRODUCTION Necessity and meaning of the theme With its open-door economic policy and that Vietnam officially entered the World Trade Organization (WTO), these have created new opportunities and challenges for the whole economy as well as Vietnamese enterprises Under WTO committments, Vietnam will fully open the financial and banking field in 2011 The level of competition in the banking sector is forecast to become harsher and harsher as there will be more 100% foreign invested banks established to operate in Vietnam A fact is set forth that Vietnamese banks are, at present, taking the advantage of opportunities of the integration of the international economy and preparing their luggages to cope with those challenges With the banking sector, in the recent period, to meet the demand of capital for economic development, to satisfy client requirements on financial and banking service products, Vietnamese banks have ceaselessly developed themselves in scale, network expansion, non-stop improvement, increasing the quality of service products at the same time built up more new service products These banks have been competing and accepted the competition for existence and development Especially, in the period from late 2007 and early 2008 to present, either the world or Viet nam did experience complicated developments and severe consequences of the global financial crisis: World economic growth slowed down; many developed countries such as the United State of America, Japan and EU member nations suffered from economic recession; there were a drop in global trade and world-wide stock markets, an abnormal fluctuation in global prices; and bankruptcy, liquidation or merger of series of big financial institutions in the world A series of banks in which there are also such American big banks as Lehman Brothers, CIT Group … which have already applied their petitions for bankruptcy protection Economies in the world have got to shoulder and confront to overcome the crisis Because of wide openness of the economy, Vietnam could not avoid impact of complex developments of the world economic environment 10 to develop and enhance competitiveness O9: The capital market grows in line Threats (T) Strategies (ST) T1: The competition in the Strategy of differentiation Strategies (WT) - Improve professional skills, banking sector of Vietnam is - Define a difference of working capacity to combine and becoming fiercer T2: There development ABBank is of a through friendly, reform the model of organization rapid safe, effective and flexible and management, enhance the information services capacity of management; technology so it makes banks - Develop highly distinctive - Consider safety and service continuously invest in upgrading products; quality as focus their systems of information - Make more investments in - Improve the capacity of risk technology to compete in the technologies, R&D management through perfecting market the T3 : Low loyalty of customers procedures and technologies Very a - Prepare the policy to attract difference of bank products and human resources and build An services Binh culture to create a close T4 : Customers change their connection among senior officers needs and request higher quality - Limit investments in ineffective products and services operations in the banking sector difficult to make organization, people, T5: Quality of human resources is increasingly competitive T6: Risk level is becoming higher and higher 3.3 Propose business strategies for ABBank Based on the analysis of SWOT matrix, the group would like to propose business strategies for ABBANK as follows: * Strategy (SO): Strategy of diversification development - Model of multi-purpose bank: retail bank, wholesale bank and investment bank - Make investment in developing all kinds of products and services to fully meet needs of customers - Expand scope, industry and field of business 93 - Strengthen the promotion, enhance the image and brand value of ABBANK * Strategy (WO): Strategy of concentrated growth: - Focus on developing the market through network development, customer development; - Make investment in technology development; apply the most advanced technology in management and development of bank products and services - Make the most of cooperation with EVN and major shareholders; - Focus on development and investment for the operation of the retail bank; - Develop products and services directed to such target customers as EVN, SMEs and individuals - Take the advantage of strategic alliances with ABS and ABF, provide package services, cross-sell products and take the advantage of resources, network and customers * Strategy (ST): Strategy of differentiation - Define the difference of ABBank through friendly, safe, efficient and flexible service - Develop products with high differentiation; - Make high investment in technology, R & D * Strategy (WT): Strategy of defense - Improve professional qualifications, work capacity to combine the innovation of organization and management models, management, capacity of operation; - Consider safety and service quality as focus - Strengthen the management of risk through perfecting the organization, human resources, regulations and technology - Develop policies to attract human resources, build An Binh culture to create the connection of staff - Reduce ineffective investments made by the bank 3.4 Select the business strategy for ABBANK Group use GREAT model to choose strategies for ABBANK Table 3.2 Selecting ABBANK's strategy through GREAT model Criteria G : Gain R : Risk Weight ed 0.3 0.2 Strategy Score Product 50 20 15 Strategy Score Product 40 20 94 12 Strategy Score Product 50 20 15 Strategy Score Product 30 30 E : Expense A : Achievable T : Time Total 0.3 0.1 0.1 1.00 30 20 30 33 40 40 40 12 4 36 20 20 20 2 29 40 40 40 The evaluation is calculated by scoring from to and the highest score is and the lowest score is (good, fairly good, above average, average and weak) Based on Table 3.2 we see, the strategy is the strategy which has the highest score so it means that if this strategy is carried out, it will be the most beneficial for the bank followed by the strategy Each above strategy has different strengths and weaknesses After the analysis in combination with the current situation of ABBANK, the group of authors proposed a business strategy for ABBANK for the period 2010-2015 primarily based on the Strategy with some additional advantages of rest strategies 3.5 Business strategy of ABBANK in the period 2010-2015: 3.5.1 Mission of ABBANK ABBANK always makes efforts to bring satisfaction to its customers with safe and efficient products, services and high technology with high flexible financial solutions; add value for agents related to the bank, including customers, shareholders, employees and communities; look forward to comprehensive and sustainable development through the strict control of risk, based on advanced technologies and attempts of improvement; make investment in human resources as the basis for a long-term development 3.5.2 Vision of ABBANK It aims to become a prestigious financial institution, ranking one of the top 10 commercial joint stock banks in Vietnam; it also has its brand name, financial capacity, human resources, technological level, bank management at a fairly good level; supplying high quality products and services, modern technology; having the full competitiveness in the target market as selected 3.5.3 Core values of ABBANK - Results - Orientation - Responsibility - Accountability - Value Add creativity - Friendliness, sympathy & high touch - Spirit of service – Servant mindset customer service 95 12 4 35 3.5.4 Business strategy of ABBANK 3.5.4.1 Corporate- level Stategy It is the strategy of concentrated growth with the following strategic objectives: - Focus on market development, increase market share through network development, customer development; develop the network in a steady roadmap; - Make investment in development of technology and application of modern technology as basis for executive management, develop and provide products and services; - Operate under the model of retail commercial bank; it aims at customers such as the Electricity of Vietnam and subsidiaries; partners, contractors of electricity, electricity consumers; small and medium enterprises which operate in potential growth fields; individuals have high income in urban areas, staff of EVN and their related people; - Define service quality as spearhead of competition in which the work of personnel, standardized procedures and application of information technology are those factors which play a decisive role It aims to create the difference of ABBANK through friendly, enthusiastic, attentive, fast and efficient services; it is also aimed at becoming a retail bank in a friendly manner; - Promote cooperation with EVN, May Bank, these two strategic partners create advantages develop ABBank network, customers, product development and enhance the capacity of system - Strengthen the capacity of executive management in accordance with regulations of the state bank and international standards; increase the capacity of system through competitive programs of recruitment, training and staff development in attachment to business results; build the culture of An Binh Bank; apply modern information technology in the management of the bank - Strengthen risk management through perfecting the organization, human resources, processes, regulations and technology 3.5.4.2 Business Unit level Strategy Selected strategy is centralized strategy It is required to concentrate on target customers 3.5.4.3 Function strategies 96 * Technology strategy: It is required to make investment in developing banking technologies so that they help develop modern banking products, services and management In 2015, ABBANK technologies will have to be as same as those of leading commercial joint stock banks * Marketing strategy: - Build an effective strategy of marketing, including such factors as: product, price, distribution channel, marketing and selling - Build staff who are professional, dynamic, creative, qualified, experienced in marketing and customers * Strategy of human resources - Define human resources as the most important property to decide success or failure so that the bank has policies to attract, train, develop and use resources accordingly - Implement the mechanism of executive management in accordance with international practice and apply modern technology; - Build the department of humand resources in professional and value-oriented manners - Develop recruitment policy, training human resources to ensure quality and competitive ability; - Create the best environment for the development of bank staff Each individual has equal opportunities in training and promotion * Financial strategy Improve the financial capability by enhancing the internal accumulation; increase the scale of capital to take the advantage of the development of capital market; control credit quality, treat bad debts absolutely so as to develop in a safe and effective manner; step by step apply and implement the management of risk according to international practices and standards of Basel II 3.5.5 Specific objectives * Assumptions: - Average GDP growth speed is 7.5% - ABBANK: + Chartered capital: up 15% per year + Growth rate of total assets: 30% 97 + Capital mobilization: up 32% + Credit: up 30% Unit: billion VND Criteria Total assets Chartered capital Capital mobilization Lending Profit ROA ROE Bad debts CAR 2009E 29,000 2,850 22,000 20.000 315 1.09% 11% 2% >8% 2010 37,700 3,500 26,400 28,600 525 1.39% 15% 8% 2011 49,000 4,025 34,800 37,200 725 1.48% 18% 8% 2012 63,700 4,630 46,000 48,300 970 1.53% 21% 8% 2013 2014 2015 82,800 107,600 140,000 5,320 6,120 7,000 60,700 80,000 106.000 62,800 81,700 106,000 1,280 1,650 2,100 1.54% 1.54% 1.54% 24% 27% 30% 8% Table 3 Specific financial objetives of ABBANK 2010-2015 - Network: The bank has 63 branches and 150 transaction offices in all cities and provinces of the country - Number of customers: It doubled in comparison with 2008 3.6 Solutions on implementing business strategies 3.6.1 Solution of technology: - Develop all features of the Corebanking software based on the development of modern banking products and services; continue to implement the software for management and supply of retail product; - Make investment to buy a copyright software based on the agreement with Microsoft about using the copyright software in the whole banking system of ABBANK - Strengthen the security of information technology system - Recruit and train managers and employees who are skilled in information technology; - Organize the training and continuously update the knowledge of information technology for all ABBANK staff; - Train how to use the software for employees 3.6.2 Solutions on management of human resources This is the most important solution * Solution on recruitment: 98 – Attract the excellent management team from competitors based on wage policy, deserving treatment in line with appropriate working conditions to limit the movement and personnel attraction of other banks - Pay attention to recruiting young, trained and high quality human resources - Build clear standards of recruitment for each job position - Build the plan of recruitment in a timely and specific manner - Improve the process of recruitment aimed at efficiency, saving, search and find out talents * Solution on training and developing human resources - Enhance the performance of the training center of ABBANK - Build the Bank's Total Learning Plan from key programs and training functions to the development of personal needs - Regularly organize training courses: training after recruitment, advanced training, knowledge for bank staff - Organize the form of training diversity: concentrated training, on-the-job training, training trainers, training in practice - Apply the policy on encouraging employees to improve their skills - Make the training become the strength to attract human resources for ABBANK * Solution on appraisement and remuneration for employees - Develop salary policies to compete with banks in the same group, renew salary policies associated with business results (fixed wages and salaries of business) to motivate each staff and each department in the bank; - Locate and build the culture of An Binh Bank to create the working environment in an effective cohesive manner and keep good staff - Step by step apply methods of work performance evaluation under international standards such as KPI (Key Performance Indicator) and use methods of objective assessment - Ensure (Management By Objectives), the method of management according the process - MBP (Management by Process) subject to the characteristics of each position 3.6.3 Solutions on marketing * Products and services - Improve the quality of existing products and services; 99 - Select and focus on developing potential products such as card product: ATM card; international debit card; make investment in the development of Visa-Master card, chip card, Youcard-Billing - Focus on studying new retail bank products based on the reference of banks in the world; modify to suit the particular characteristics of Vietnam; take the advantage of leading banks in implementation At the same time it is required to make a difference in product quality and flexibility to compete * Price: Prepare the price of product and service at an equal or lower level than the price of competitors It is required to apply such measures as cost saving, selling package products and services * Development of distribution network - Branches and transaction offices are regarded as customer-oriented distribution channels, creating favorable conditions for customers; - Continue to make investment and expansion in towns, cities and provinces throughout the country; urban areas and industrial zones are potential to develop; it is possible to choose a location to set up any new transaction room based on the network of subsidiary companies under EVN - Develop virtual distribution channels thanks to modern technology - Build the plan to develop the research-based network to find out the potential of development and it is required to be calculated to bring about economic efficiency * Customer service - Improve the quality of customer care service - Select and train skills for staff of the Call Center to communicate with customers and all staff in contact with customers, - Create the specific style for ABBANK - Focus on building customer data: through collecting customer information and subsidiary companies and buying back intermediary organizations; - Analyze customer data to optimize the effectiveness of marketing; take the advantage of cross-selling opportunities; provide support service products; create the basis for making the decision of sale * Advertising and sales promotion 100 - Strengthen the marketing in ways and methods; apply activities ATL (Above the line), BTL (below the line) and direct marketing such as (tele-marketing, online marketing, events and promotions) - Employ to design impressive advertising programs; organize scaled campaigns of advertising for ABBANK; - Construct promotional programs in a very attractive form - Select well-known media channels to advertise ABBANK, hanging the billboard in public places - Organize flexible and effective marketing forms such as leaflets to advertise ABBANK in line with electricity bill - Carry out customer surveys through consulting firms in a quantitative and qualitative manner * Solutions on developing brand name and public relations (PR) - Strengthen the publicity of band name, enhancing the image of ABBANK - Build the brand name through ATL, PR, signboard, panel, website, mass media - Implement programs to disseminate knowledge about finance and banking - Design the slogan of ABBANK - Interact with the public to convey stories or messages to create a good image for the bank - Have good relations with media agencies and investors - Strengthen social activities for the community as charity activities and have participation in social support programs to enhance the image of the bank in the public 3.6.4 Solutions on improving financial capacity - Increase internal sources of capital such as retained profit; - Issue additional shares to shareholders and issue to the public - Issue ABBANK bonds and convertible bonds - Improve the effectiveness of activities such as raising capital; giving credit; develop and provide retail banking products and services, international payment Increase the rate of income from banking services; improve the efficiency of capital and assets - Revise and restructure the portfolio, be ready to eliminate inefficient investments such as making investment in securities for trading 101 3.6.5 Solutions on improving the effectiveness of risk management - Raise standards of professional ethics; improve the performance of the internal control system - Learn the experience of May Bank on risk management; as committed, Maybank will appoint and send its specialist as the director of risk management in ABBANK This is a favorable condition for ABBANK so that it can improve the quality of assessment, evaluation and monitoring of credit in the entire system - Build the internal trust-ranking system to evaluate risks for clients, loans - Develop the module of automatic loan classification; - Clearly define powers and responsibilities of each level, each department and each individual in risk management; - Improve the capacity and effectiveness of the internal inspection & control system; speed up inspection and control in all stages - Analyze, forecast and build the early warning system for credit risk, market risk and operation risk; 3.6.6 Solutions on improving the efficiency of executive management - Increase the effectiveness and cohesion of the management - Reorganize the structure of management in the direction from the concentrated management in terms of the same business sector + Set up blocks including: retail banking and network; operation, finance and accounting, support, treasury and investment, risk management and development of strategic clients Each division will have room, board and subsidiary center + Combine the horizontal management to develop the network and customers on the basis of region and locality: + Under the head office, they are transaction offices and its subsidiaries; The headquarters office will support and provide the orientation for branches in activities but to lose the initiativeness and creativity of its subsidiaries; + It is regulated their functions and responsibilities so whatever will be implemented by the head office (eg marketing, brand building, research and development of new products ) and whatever those are activities which a certain branch can be active to implement - Build the software for the management, such as MIS 102 - Apply ISO into the entire system of ABBANK - Develop the award mechanism for the General Director and other manager positions after completing any tasks; 3.6.7 Solutions on R & D - Organize research groups or departments to develop products and services on the basis of modern technology; There are encouragement policies for those departments/groups; - Refer modern banking products and services which are successfully developed by bank predecessors; learn about the experience of May Bank and others both in and out of the country for those products which are already available in the world but not available in Vietnam; it is possible to purchase copyright or copy to develop such products; however it is required to change according to the Vietnamese market; 3.7 Conditions on strategy implementation * For leaders of the bank The awareness and determination of executive leaders of the bank are the most important factors to determine the feasibility of strategy solutions * Other factors: - Business strategy must be concretized and disseminated to all parts departments and all employees to understand all the meaning and importance of implementing business strategy - Develop the specific roadmap of business strategy and thereby build a roadmap detailed for implementation plan - Need to establish a supervision department to examine, supervise, speed up the process of implementation and implement strategies and plans On that basis, there are adjustments and supplementations in time - Ensure adequate resources, including financial and material resources to execute the strategy successfully The allocation of resources is attached to the roadmap of implementation so as to avoid wastes 3.8 Route for implementation of strategic solutions In order to ensure effective inspection, supervision and evaluation of the implementation of strategic solutions, the following route must be executed: 103 No Solution 2010 2011 2012 2013 2014 2015 Technological solutions X X X Human resources management solutions Solutions on marketing X X X X X X X X X X X X X X X X Solutions on improving financial capacity Solutions on improving the effectiveness of risk management X X X X X X R&D solutions X X X X X X Solutions on improving the efficiency of executive management X X X 104 CONCLUSION It is aimed to build an appropriate business strategy on the basis of strategy science and practice so the theme "Building a business strategy for An Binh commercial joint-stock bank for the period 2010 2015" has resolved basic issues: - The most basic arguments are systematized about building the business strategy for a certain enterprise in general and at the same time, it is possible to highlight characteristics for the banking industry - It is required to provide a general introduction on An Binh Commercial Joint Stock Bank and its business activities in the recent years - It is required to analyze and evaluate impacts left by the business environment and internal conditions to identify opportunities and threats of the environment and at the same time evaluate strengths and weaknesses of ABBANK - It is required to define development objectives of ABBANK to 2015 and techniques applied to analyze SWOT and select feasible business strategies for ABBANK - It is required to create solutions to the above strategies and recommendations on strategy implementation During the process of preparation, the authors have paid a close attachment to contents of the process of business strategy on the basis of knowledge of the master of business administration (MBA) program and referred experiences from specialists and opinions contributed by teachers and ABBANK colleagues Therefore, we believe that if the strategy is prepared, it will meet objectives set forth However, due to limits of capability and time, there are likely certain mistakes in contents of the theme We would like to receive constructive opinions so that the theme is prepared well 105 APPENDIX Chartered capital of the commercial banks up to September 30th, 2009 No Banks Chartered No Banks capital (Bil capital (Bil VND) Agribank Vietcombank Vietinbank 10 11 12 13 14 15 16 17 18 19 20 21 22 Chartered VND) 13,400 12,100 11,252 23 24 25 Bao Viet bank OCB Saigon bank for Industrial 1,500 1,474 1,412 BIDV ACB Eximbank Sacombank SEA Bank Techcombank Military Bank Lien Viet Bank Sai gon Commercial 8,755 7,705 7,219 5,115 4,068 3,462 3,400 3,300 3,299 26 27 28 29 30 31 32 33 34 and trade Viet A bank Bac Á bank Nam A bank Vietnam Tin Nghia bank Kien long bank Global Petrol bank Western Rural Bank Nam Viet bank Tien Phong bank 1,359 1,314 1,252 1,1.33 1,000 1,000 1,000 1,000 1,000 Joint Stock bank(SCB) Dong A Bank(EAB) An Binh bank Habubank VP Bank Maritime bank Phuong Nam bank VIBank Ocean bank SHB HD bank 2,880 2,850 2,800 2,117 2,240 2,027 2,000 2,000 2,000 1,550 35 36 37 38 39 40 41 42 43 Vietnam Thuong Tin bank Gia dinh bank Petrolimex Group bank Great trust bank Great Asia bank First Bank(FCB) MHB My Xuyen bank Viet Hoa 1,000 1,000 1,000 1,000 1,000 1,000 816 500 72.9 Sources: State Bank of Viet nam REFERENCES I- Vietnamese FRED R DAVID, translated by Truong Cong Minh, Tran Tuan Thac, Tran Thi Tuong Nhu (2006), Concepts on strategic management, Statistical Publishing House Michael E Porter; translated by Nguyen Ngoc Toan, (2009) Competitive strategy Youth Publishing House 106 Le The Gioi - Nguyen Thanh Liem - Tran Huu Hai (2007), Strategic Management, Statistical Publishing House Nguyen Khoa Khoi – Dong Thi Thanh Phuong (2007), Strategic Management, Statistical Publishing House Thai Van Dai – Nguyen Thanh Nguyet (2009), Commercial bank management, Can Tho University Annual Reports 2005, 2006, 2007, 2008 prepared by An Binh Commercial Joint Stock Bank Annual Report 2008 of the State Bank of Vietnam Annual Reports 2008 of Vietnam commercial banks Articles and documents from the Internet II – English Michael Porter (1996), - Harvard Business Review – November - December 1996 Copyright © 1996 by the President and Fellows of Harvard College, What Is Strategy Micheal E Porter (1980), Competitive Strategy, Free Press; 107 ... Investment & Development of Vietnam VCB,Vietcombank Bank for Foreign Trade of Vietnam Agribank Bank for Agriculture and Rural Development of Vietnam TCB, Techcombank Technological and Commercial Joint-... of all, the group of authors would like to express our deep gratitude to: The lecturers of the MBA training program of United State Griggs University - who provide knowledge; Managers and staff... the solid basis of spirit for members of the group during the participation of Griggs University MBA program and the process of completing major assignment Capstone Project "Building business strategy