Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (285)

CAPSTONE PROJECT REPORT Strategy development for the Lien Viet Post joinstock commercial bank 2011 - 2015 Nguyen Viet Dung Nguyen Thi Minh Hue Bui Thai Ha H A N O Anh I Tung 1 Nguyen Class: X0810 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT STRATEGY DEVELOPMENT FOR THE LIEN VIET POST JOINSTOCK COMMERCIAL BANK 2011 - 2015 Group Number: 13 Student’s name: NGUYEN VIET DUNG NGUYEN THI MINH HUE BUI THAI HA NGUYEN ANH TUNG HA NOI 2011 TABLE OF CONTENTS LIST OF ABBREVIATION LIST OF TABLES INTRODUCTION CHAPTER I: STRATEGIC MANAGEMENT FUNDAMENTAL THEORY OF AN ENTERPRISE I STRATEGY AND ITS ROLE………………………………………………….3 Strategic concepts:…………………………………………………….3 Strategic roles:……………………………………………………… 3 Strategic classification:……………………………………………… 3.1.Strategy for enterprise level: 3.2.Strategy for business unit level 3.3.Strategy for functional unit level II STRATEGY SETTING PROCESS………………………………………… 1.Strategic goal definition……………………………………………….5 Strategic analysis…………………………………………………… 2.1 External environment evaluation 2.2 Macro environment analysis (PEST) 2.3.Industry analysis 2.4 Internal assessment: 2.5 SWOT Analysis Strategic selection……………………………………………………11 3.1.Strategic selection bases (TOWS) 11 3.2 Selecting business strategy model 11 3.3 Strategic plans assessment method (QSPM) 12 CHAPTER II: ANALYZING LIENVIETBANK’S STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS 14 I INTRODUCTION ON LIENVIETPOST BANK 14 Formation and development process……………………………… 14 Business features…………………………………………………… 14 II MACRO ENVIRONMENT ANALYSIS .17 Macro-economic factor 17 Social culture factor 19 Technological factor………………………………………………… 19 Political and legal factor:…………………………………………… 20 III ANALYZING ENVINRONMENT IN BANKING SECTOR .20 Credit institutions groups 20 1.1 State-owned banks group: 21 1.2 Joint Stock Commercial banks group 21 1.3 Foreign, joint venture and foreign branches banks group 1.4 Financial, insurances institutions group 21 22 Competitiveness in commerical banks 22 Analyzing external factor evaluation matrix (EFE) 25 Competitive Profile matrix analysis (CPM) 26 IV ANALYZING LIENVIETPOSTBANK’S INTERNAL ENVIRONMENT 28 Organization structure and network……………………………… 28 Financial capability………………………………………………… 30 Technology and modernization factor……………………………… 32 Products and services:……………………………………………… 33 5.International cooperation, foreign exchange trading……………… 34 6.Training and Labour policies……………………………………… 35 Internal Factor Evaluation Matrix (IFE)………………………… 36 V SUMMARY 37 Strengths…………………………………………………………… 37 Weaknesses:………………………………………………………… 39 Opportunities……………………………………………………… 40 Threats……………………………………………………………… 41 CHAPTER III: SELECTING STRATEGY FOR LVP IENVIETBANK 43 I Development orientation 43 Development orientation…………………………………………….43 Development goals…………………………………………………… 44 II Selecting strategy .45 Building strategy from TOWSSWOT matrix…………………………… 1.1 Strategy to expand market: 45 48 1.2 Strategy to merge and buy back: 48 1.3 Strategy to develop products and services: 49 1.4 Strategy “standing firmly in the market”: 49 1.5 Strategy to strengthen marketing operations: 49 1.6 Strategy to invest in technology 49 1.7 Strategy to manage the human resources and train: 50 1.8 Strategy to tighten spending and improve capacity to manage risks 50 Assessing strategy from QSPM matrix…………………………….50 Solutions to implement strategies of the LienVietPost Bank: ………… 53 3.1 Raising financial capacity: 53 3.2 Organization structure and human resources: 54 3.3 Increasing the infrastructure quality of information technology 3.4 Completing and developing banking services and products: 3.5 Improving capacity to manage risks 54 55 56 3.6 Making marketing plan: 57 3.7 Implement customer consulting services 57 III Recommendations: 57 For the Government and State Bank:……………………………… 57 For the LienVietPost Bank……………………………………………….59 REFERENCES 62 LIST OF ABBREVIATION - SWOT: Strengths – Weaknesses – Opportunities – Threats - CPM: Competitive Profile Matrix - EFE : External factor evaluation - IFE : Internal factor evaluation - QSPM: Quantitative stratergic planning matrix - ROA: Return on total asset - ROE: return on stockholder’s equity - EBIT: Earning before interest and tax - EPS : Earning per share - STAS: Sum total attractiveness score - TAS: total attractiveness score LIST OF TABLES Diagram 1.1: Developing enterprise strategy process …5 Table 1.2: five-competitive forces (M.Porter)……………… …… … Table 1.3: SWOT Matrix .9 Table 1.4: MC Kinsey strategic selection model .12 Table 1.5 QSPM matrix 13 Table 2.1 The LienVietBank main figures as of 31/12/2010 is as hereinafter: 16 Table 2.2.External Factor Evaluation matrix (EFE) .25 Table 2.3 COMPETITIVE PROFILE MATRIX 27 Table 2.4 BALANCE SHEET 30 Table 2.5 BUSINESS PERFORMANCE 32 Table 2.6 INTERNAL FACTOR EVALUATION MATRIX (IFE) 37 Goal, object, route, budget planning to implement M&A strategy and focus on three farming points: Mục tiêu, đối tượng, lộ trình, dự trù ngân sách cho việc thực chiến lược M&A tập trung vào tam nông: 3.1Strategic goal:Mục tiêu chiến lược: - Strategy focus on “three farming points”: there are fierce competitions in commercial banks’ system in the big cities It is difficult to give out loans to customers who are giant Corporations, Groups because these objects are often associated with state-owned commercial banks With a large network, LienVietPostBank should focus on Agriculture – Rural areas - Farmers, a dense and potential market Focusing on the "three farming points" is also consistent with the Government’s development priority policy.Chiến lược tập trung vào “tam nông”: Tại thành phố lớn gặp phải cạnh tranh gay gắt hệ thống Ngân hàng Thương mại Việc cho vay đối tượng khách hàng Tập đồn, Tổng Cơng ty lớn khó thực đối tượng thường quan hệ với Ngân hàng Thương mại nhà nước nắm quyền kiểm kiểm soát Với mạng lưới rộng lớn Ngân hàng Bưu điện Liên Việt cần tập trung vào thị trường rộng lớn nhiều tiềm phát triên khu vực Nông nghiệp – Nông thôn – Nông dân Việc tập trung vào khu vực “tam nơng” cịn phù hợp với sách ưu tiên phát triển Chính phủ - M&A: LienVietPostBank has not yet developed traditional customers as newly-established since 2008 Its market share is small in comparison with competitors who have experiences and worked for years in the banking sector Recently, due to the state limitation on establishing new branches and transaction offices, mergering and acquisition with financial institutions to extend credit networks and scale is crucial for the development of LienVietPostBank Besides, there is an opportunity to expand market and make up market share In order to stabilize macroeconomic and curb inflation, the Government has launched a series of policies and measures One of that aims to tighten, reduce credit growth rate in credit institutions LienVietPostBank’s M&A activity will also expand its credit growth opportunities, scale and customers, etc M&A: Do thành lập từ năm 2008, Ngân hàng Bưu điện Liên Việt chưa xây dựng nhiều khách hàng truyền thống, thị phần nhỏ so với đối thủ cạnh tranh có bề dày kinh nghiệm hoạt động lâu năm 59 lĩnh vực Ngân hàng Do sách nhà nước giai đoạn vừa qua hạn chế việc cấp phép thành lập chi nhánh phòng giao dịch Ngân hàng nên việc mua bán sáp nhập với tổ chức tài tín dụng để mở rộng mạng lưới quy mô thực cần thiết phát triển Ngân hàng Bưu điện Liên Việt Bên cạnh cịn hội để mở rộng thị trường, chiếm lĩnh thị phần Để ổn định kinh tế vĩ mơ, kìm chế lạm phát, Chính phủ đưa hàng loạt sách, giải pháp mà số thắt chặt, giảm tỷ lệ tăng trưởng tín dụng tổ chức tín dụng Hoạt động M&A Ngân hàng Bưu điện Liên Việt mở rộng hội tăng trưởng tín dụng, quy mô, khách hàng… - Risks may occur when performing M & A: focusing too much on M & A may lead to liquidity problems if there are no sufficient resources If M & A activity does not base on voluntary spirit and consent among parties, it may arise disputes over legal or cause lost of money and effort It also leads to loss of assets and participant’s trademark Besides the cultural integration in the business post-merger is also a major challenge for leaders Những rủi ro xảy thực M&A: Việc tập trung vào M&A khiến Ngân hàng gặp khó khăn khoản khơng có chuẩn bị nguồn lực cách chu đáo Việc M&A không thực dựa tinh thần tự nguyện có đồng thuận bên nảy sinh tranh chấp pháp lý tốn nhiều tiền của, cơng sức đơi cịn gây thiệt hại không nhỏ vật chất, thương hiệu bên tham gia Bên cạnh việc hịa nhập văn hóa doanh nghiệp hậu sáp nhập thách thức lớn nhà lãnh đạo 3.2 Objects to implement the strategy:Đối tượng thực chiến lược: - Implement policy focussing on "three farming points": Objects are mainly farmers with activities such as providing fund to develop agricultural, livestock, fishing and exploiting fishery products In addition, the policy also aims to support enterprises operating in the field of exploitation, processing, export products from rural agricultural areas in order to expand purchase capacity Thực sách tập trung vào “tam nông”: Đối tượng phục vụ chủ yếu bà nông dân, hỗ trợ vốn cho phát triển nông nghiệp, chăn nuôi, khai thác đánh bắt ni thủy hải sản Bên cạnh phải hỗ trợ cho doanh nghiệp hoạt động lĩnh vực khai thác, chế biến, xuất khẩu… sản phẩm từ khu vự nơng nghiệp thơn để có thẻ thu mua 60 sản phẩm người dân sản xuất - M&A: Change all postal saving offices to be the bank’s transactions Find out commercial banks those are small scale with good credit quality but facing liquidity problem in order to conduct merger and acquisition M&A: Tổ chức triển khai thực việc đưa toàn điểm giao dịch tiết kiệm bưu điện hoạt động đầy đủ theo mơ hình phịng giao dịch, điểm giao dịch Ngân hàng Tìm hiểu Ngân hàng Thương mại có quy mơ nhỏ, chất lượng tín dụng tương đối tốt gặp khó khăn khoản để tiến hành mua bán sáp nhập Implementation and budgeting roadmap: Lộ trình thực dự trù ngân sách: - Implementation roadmap: The synchronization system of the Postal Savings Company with the LienVietPostBank requires a great number of money, time and efforts The manpower is one of main issues as it plays an important role for the success or failure of the Bank By the end of 2013, LienVietPostBank will attempt to recruit and train 3,000 additional staff for postal saving transactions in districts and review transactions in communes which have development potential Around 1,000 transactions that operate fully bank business will be expected to grow soon The other transactions will still remain crossing mechanism operation and paying for incurred services During the period 2012 – 2014, LienVietPostBank will conduct M&A with small scale credit institutions if any It will also select strategy partners who are major financial institutions, banks in the world that matched LienVietPostBank’s development strategy in order to take full advantage of management experiences and financial resources Lộ trình thực hiện: Việc đồng hệ thống Công ty tiết kiệm Bưu điện với Ngân hàng Bưu điện Liên Việt đòi hỏi phải đầu tư nhiều tiền bạc, thời gian công sức Vấn đề người đặt lên hàng đầu định nhiều đến thành công hay thất bại Ngân hàng Đến hết năm 2013 cố gắng tuyển dụng đào tạo thêm khoảng 3000 nhân viên để đưa điểm giao giao dịch tiết kiệm Bưu điện huyện đồng thời rà soát điểm giao dịch xã để triển khai nơi có nhiều tiểm phát triển Số lượng điểm giao dịch hoạt động cách đầy đủ nghiệp vụ Ngân hàng dự kiến tăng thêm khoảng 1000 điểm Với điểm giao dịch lại giữ nguyên cõ chế hoạt ðộng chéo, trả tiền cho dich vụ phát sinh Ðồng thời giai ðoạn 2012 – 2014 tiến hành M&A với tổ chức tín dụng có quy mơ nhỏ có ðiều kiện; Lựa chọn ðối tác 61 chiến lýợc tổ chức tài chính, Ngân hàng lớn Thế giới phù hợp với chiến lýợc phát triển Ngân hàng Býu ðiện Liên Việt ðể tận dụng kinh nghiệm quản lý tiềm lực tài - Budgeting: The budget for recruitment, training and building a system of 1,000 transactions will cost around VND 200 billion allocated in two years (2012-2013) The M&A with credit institutions on a small scale will take at least VND 5,000 billion Also, it focuses funds to finance for the "three agriculture points" in order to reach outstanding loans of about VND 35,000 billion by 2015 Dự trù ngân sách: Ngân sách cho việc tuyển dụng, đào tao, xây dựng hệ thống cho khoảng 1000 điểm giao dịch dự kiến khoảng 200 tỷ đồng phân bổ năm (2012 – 2013) Việc M&A với tổ chức tín dụng có quy mơ nhỏ cần tối thiểu 5000 tỷ đồng Tập trung nguồn vốn ưu đãi để tài trợ cho khu vực “tam nông”, phấn đấu đến năm 2015 dư nợ cho vay thuộc đối tượng khoảng 35.000 tỷ đồng 4.LienVietPostBank’s solutions to implement M&A strategy and focus on three farming points Những giải pháp để thực chiến lược M&A tập trung vào khu vực tam nông Ngân hàng Bưu điện Liên Việt: Solutions to implement strategies of the LienVietBank: 34.1 Raising financial capacity: The financial capacity of commercial banks is not only the financial source to ensure their business operation but also the ability to exploit, manage, and use those sources to effectively serve trading operation At present, the financial capacity of most of banks in Vietnam is still weak The standard to assess financial capacity includes factors such as capital scale, payment and profitable possibility, and ability to exploit and use financial sources A bank with good financial capacity often maintains its normal operation and stable development in the economic, social, and politic If the financial capacity of banks is ensured, risky levels in operation is low and the competition capacity is high Hereafter are some solutions to enhance the financial capacity in LienVietPost Bank: - Increasing the scale of property: With a big network system, LienVietPost Bank should focus more on capital mobilization Mobilizing capital from 62 organizations is being implemented in a relatively good way and it should be kept going However, it is necessary to pay more attention to mobilizing capital from people (stable and firm source), especially in urban areas On the other hand, the potentials of rural areas should be focused on - Trying to obtain an annual average speed of profit growth of over 20% to ensure dividend rate for shareholders and capital supplying source for the owners - In phase 2011 – 2015, actively searching and choosing strategic partners that are big financial and banks in the world in order to increase the owners’ capital; at the same time, learning and gathering experience of management and business in banking financial field - Using an amount of money as spare money for risks according to the law; strengthening to take back bad debts: combining with the customers in order to together deal with difficulties; restructuring loans or taking somebody to court For loans that cannot to be collected, the fund for preventing risks to deal with bad loans and ensuring healthy financial situation for the Bank should be used - Increasing the quality of debt property – paying special attention to the mobilized capital that is suitable with period nature and output interest rate to ensure the business capital source, stable and safe growth in order to maximum limit risk liquidation - Not focusing on developing great debit of an industry or a group of customers; focusing on diversifying the customers, giving priority to people belonging to “rural area, agriculture, and farming” 34.2 Organization structure and human resources: - The leading task of LienVietBank at present is fully implementing banking services in all post saving transaction point However, as the number of transaction points is so big, in the short-term, it should be focused on main point development: in areas with relatively developed economy, specific business industries, and many banks - The current organization apparatus in LienVietBank is relatively small Functional sections are clearly and specifically assigned work However, the combination of work in each specific field is still not so good It is necessary to build and standardize each operation to make every part combine well with each other For instance, it the need to have a combination between network development section and personnel and basic construction sections to avoid receiving premise when the procedures have not been completed; or the formalities were finished but employees have not been recruited yet 63 - The personnel structure of the Bank is just newly founded; hence, it is necessary to focus on training work Staffs should be trained with professional and communicating skills; skills of management and administration for managers; having policy to encourage staffs to share their skills and knowledge in a sense of learning and bettering themselves - Regularly updating new knowledge for staff training and coaching programs The training is closely connected to the development strategy of the LienVietBank, especially for developing new products; stepping up to propagandize and build corporate culture; building job description in details; assessing standards and requirements of the professional level and necessary supports for each specific field This aims to raise the effectiveness and saves time - Building a structure to promote, assign, create promotion, and increase income to bring motivation to the staffs Management positions should be recruited only when the internal human resources of the Bank has not met requirements 64 34.3 Increasing the infrastructure quality of information technology With the available investment, the information technology infrastructure of the LienVietPost Bank is relatively modern However, along with the merging of the post savings service, the Bank need to make plan to have comprehensive database as well as technology infrastructure to meet the demand of developing new services and raising the operation management effectiveness The Bank also needs to focuses on developing open payment system in order to implement auxiliary systems such as system dealing with internal and international payment; treating and checking images; processing and paying electronic vouchers, e-banking and other overseas national currency exchange Increasing network management aims to ensure the information safety of the Bank and the customer properties 34.4 Completing and developing banking services and products: - Banking services have close relationships with each other, a service’s development will be considered as an important basis to develop other services and vice versa Therefore, in order to develop services, banks should exploit the mutual exchange of products and services Enhancing learning from products that have been deployed by commercial banks in order to develop appropriate products and services with the LienVietnPost Bank’s features and scale Firstly, the bank should improve and expand banking services to meet customers logical demands such as debit account to issue credit cards, payment through bank capital -payment -foreign currency trading, including the used of foreign exchange risk avoidance tool as option, future - Second, it is necessary to encourage customers to use banking services package by offering preferential rates For example, the bank may apply a lower interest rates level to encourage loans while it should increase other services fees such as foreign exchange trading fee, differences in exchange rate, payment fees in foreign country and transfer fees in domestic, etc Thus, the bank can ensure profitability as well as develop its banking services - Developing products to manage capital and trading in foreign exchange - Focusing to study and develop products that serve people of the agriculture, farming, and peasant 65 - Developing electronic banking service to serve modern payment methods such as e-banking, phone banking, internet banking and card services… - Implementing the operation processes in order to supply services, skip unnecessary and ineffective processes that cause difficulties in the staffs’ work and waste the customers’ time In addition, it should also increase service time If the bank has many useful and modern facilities, high quality services but limit the transaction time with only hours per day, customer will not able to use maximum bank’s services and the bank will not be able to achieve its service development targets In Japan and the U.S., there are 24/24 hours banking services, which are not only the card payment services and credit Hence, in order to extend working time on holidays such as Saturday or Sunday, the bank can also arrange working shifts for its employees 34.5 Improving capacity to manage risks Seriously and sufficiently implementing forms to manage risks such as credit risks, operation risks, liquidation risks, interest rate risks, and market risks Fully building processes to manage risks: Identifying, measuring, controlling, monitoring, reporting, assessing, and checking risks Strengthening work of training and retraining the staffs who manage risks; building a system that ensures the regular and continuous contact between management section and implementation section In managing risks, if having a self-assessed system, it might be not objective Hence, the Bank should periodically hire experts to re-assess the whole real situation of risk management system to clarify limitations in the risk management work; standardizing model to manage risks according to international standards (Basel II system) The bank must establish a separate risk management department which is responsible for research and proposed risk management policy for each specific service of the bank It should also build and improve risk management systems, togeher with the research and development department in order to launch the most effective and secure strategy In order to have a complete anti-risk management, the bank should develop a risk manual Accordingly, the bank can firstly recognize possibilities of occuring risks Secondly, it can find out causes that lead to such risks Thirdly, measures should be set up to reduce risks for each service Finally, these above mentioned steps should be 66 summarized in order to produce a risk management handbook for all banking staff 34.6 Making marketing plan: The marketing operation is playing a more important role in the development process The marketing section of LienVietPost Bank should to well conduct the following specific tasks: - Popularizing the Bank trademark to the customers so they can know its services and prestige; strengthening to advertise in the website and public media means as well as sponsoring activities Promoting the bank images through professional staff team - Studying the competitive opponents to find out the Bank’s competition advantages in each product and service - Developing its services closely connecting with market development; classifying customers to have correlative policies for each subject - Analyzing and assessing the market; defining the Bank’s competition position; carefully studying the market and using the Bank’s services to bring out solutions to improve the customer service quality - Forecasting changes of the market in order to have plans to initiatively cope with them 34.7 Implement customer consulting services - Most customers are often confused when they have to choose whether saving or investing service, financial investment in plan A or plan B, using what kind of saving services such as step up savings, accumulated savings, savings in domestic currency or foreign currencies or other services of the bank, etc Hence, it is necessary to quickly set up a customer services department in order to help customers feel secure and confident when using the service Accordingly, it can extend the ability to attract customers and develop services III Recommendations: For the Government and State Bank: - Creating a stable and healthy business environment with comprehensive policies and legal documents; creating and fair and competitive business environment in banking operation 67 - Strengthening the work of inspecting and monitoring banks to support them in completing and correcting their shortcomings in their operation as well as preventing risks - Issuing and conducting policies should have specific way and base on the real situation; avoiding to impose administrative orders in the field of managing banking systems The State should promulgate synchronized regulations on banking activities such as regulations on security transactions, property keeping services, regulations on lands, commercial bills, drafts and e-commerces In particular, regulations on financial performance reports and accountability of financial statements in businesses that is consistent with the integration trend - The State should also have rules which are in associated with industries such as post, taxation, water and electricity to make payment electricity, water, telephone bills via their accounts at the bank It would have a huge effect in reducing cash use, increased non-cash payments in the economy and improve people's awareness in the implementation of banking services - The State Bank should assign more proactive responsibilities to commercial banks in foreign exchange trading, diversify operations in order to minimize exchange rate risks for businesses - Thirdly, improving activities of the open and currencies markets - Operations of open and currency markets are underdeveloped involving a number of banking services activities which are not improve such as discount commercial paper, bonds, investments, etc In the near future, besides of supporting commercial banks in banking modernization and services development, the State Bank should re-structure the open and currency markets organization to promote operation of these markets - Defining the rate of credit growth in each credit organization should be considered in some aspects such as scale, serving objects, capital safety rate, and operating time For new founded banks like Lien Viet, Tien Phong, and Bao Viet, their credit growth according to the total asset scale and the rate of non-production loans should be allowed - The government has issued many policies to support the agriculture; hence, the Lien Viet Bank can be considered to be supported in capital and interest rate to their “three farming points” loans 68 For the LienVietPostBank - The Bank should focus on the strategy to develop three farming points of agriculture, rural areas, and peasants as they have supports from the government and leaders in the implementing process - Performing development strategies and competitions by the difference The difference here is products with specific nature and service quality The service quality is assessed through serving attitude or handy nature of the products, supplying time, the simplicity or complicatedness of the supplying process, and the Bank material condition - For deposit service: the bank should improve this service by offering more new saving products for customers such as:  Customers can register with a fixed bank balance on their account, when the account balance exceeds the amount which customer had choosen, that entire balance will be redirected to the step up saving account of the customer  Customers can sign up for automatic transfers from their individual account to the step up savings account a fixed amount periodically (day/week/month/2 months )  Customers can also sign up to transfer from their step up savings accounts to personal accounts when the money in personal accounts fall below the minimum balance which has registered with the bank  Customers can sign up for automatic transfers from their step up savings accounts into individual account to cover the overdraft that has been paid by customers 69 - Implement the raising capital method with interest rates base on terms Since the current interest rates set by month (1 month, months, months, months, 12 months, etc) did not satisfy the customer needs, it may provide interest rates following days such as 07 to 15 days, 16 to 30 days, etc - Introduce lending service processes to buy houses, shares, education loans, continue to expand lending to workers who intend to work abroad and lending at home - Trade in foreign exchange services - Study the implementation of derivative products such as future transactions, options to limit risk for clients - Research to hasten the implementation consulting services, investment and management capital for customers rather than maintain the deposit balance in the account - Build up documents, regulations, procedures related to the implementation of banking services in the simple way It should also ease the business process implementation to improve service quality, reduce customer transactions time in by setting up simple contracts, forms with adequate required information - Strengthening marketing operations to popularize the Bank’s image and services to different social objects 70 - Increase the training work, especially the professional skills and communicating skills to improve the serving quality of staffs Firstly, strengthen personnel training Training and retraining staff should be considered as an urgent task It is necessary to set priority for managers according to advanced training programs Secondly, the bank should also retraining managers (heads, deputy director, director, deputy director of branches) then they can acquire basic knowledge on some important areas of bank management, business management, information technology, open markets, analysis and forecasting of risk prevention, administration, etc Thirdly, it is essential to focus on improving communication and customer service skills: The transactions personnel should be trained on communication skills particularly interviewing, negotiation and marketing skills The bank should also build up a special communication culture in dealings with customers and popularize broadly across the system Fourthly, the training must be consisted with the use of staff after training in order to avoid waste and improve the staff quality in the development of banking services - Build up a technology development strategy in accordance with general trends of the banks in all over the world: A long-term technology strategy should be developed in parallel with the development of existing resources As advanced technology constantly changing, many new techniques can be used at the same time Furthermore, technological change has usually at high cost and beyond the bank capability If there is no appropriate development strategy in technology, it can cause seriously waste Technology development strategy should focus on the level of technology, technical improvements, research and development services, application and exploitation of information technology, digital technology, electronics and telecommunications in business and bank management - Develop technologies should be synchronized In order to promote the technology in the creation of new products and services to meet customer demand and create an advantage for banks in the management, the bank must develop synchronous technology in all branches - It is necessary to study the rules and technical measures to ensure security and minimize the risks associated with conducting works - Expand self-determined right for branches so they can better serve the customers; however, the work of monitoring and checking should be increased - Develop a network with appropriate operations: Reducing ineffective 71 branches and transaction points by merging or relocating to a suitable and efficient place - Periodically checking and classifying the employees to reward or dismiss in order to ensure the fair and objective factors - In phase 2011 – 2015, implementing the “blue ocean” strategy”: having only partners, not opponents This is a graduation thesis with the purpose of building strategy for the LienVietBank of the team 13 in GaMBA X0810 class of Griggs University As having limitation time, we have not analyzed as well as assessed problems in details We hope that our ideas can be applied in reality We would like to express our heartfelt thanks to teachers who enthusiastically instructed us during our learning process and the management section for supporting us in materials and operations./ 72 REFERENCES Tiếng việtVietnamese books: Strategic Management Textbook Statistics Publisher in 2002 Giáo trình Quản trị chiến lược NXB Thống kê 2002 Strategic Management Concepts and Cases Written by Fred David Statistics Publisher in 2006 (Translator: Truong Cong Minh, Tran Tuan Hac, Tran Thi Tuong Nhu) Khái luận Quản trị Chiến lược Tác giả Fredr David NXB Thống kê 2006 ( dịch giả Trương Công Minh, Trần Tuấn Hạc, Trần Thị Tường Như ) LienVietPostBank’s sources, provided by Administration Department in October 2011 Tài liệu Ngân hàng Bưu điện Liên Việt, Phòng Tổ chức CB Ngân hàng Bưu điện Liên Việt cấp tháng 10/2011 Sources from General Statistics Office website.Tài liệu sưu tầm từ Internet Tổng cục Thống Kê Tiếng AnhEnglish books: Fred R David :( 1999) “Strategicratergic Managerment Concepts and cases” – thirteenth edition 2.Viet Nam Financial Network ( source Tai chinhVietnam.com) 73 ... scale and scope of activities however, several joint stock commercial banks (ACB, Sacombank, Techcombank, Eximbank ) have recently growth rapidly with appropriate business strategic orientation... The LienVietPostBank defines a number of joint-stock commercial banks including ACB, Techcombank and Sacombank as its main rivals in the current period As the state-owned commercial banks have a... Competitive ability on price Total score ACB Important Classification scores Techcombank Important Classification score Sacombank Important Classification Score Important Score 0,1 0,15 0,15 0,05 0,15