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Global Advanced Master of Business Administration GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT “BUILDING AND SELECTING BUSINESS STRATEGY FOR JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIET NAM – BA DINH BRANCH TILL 2015” Group number: 04 - X0210 Student’s name: Mr Nguyen Hoai Trung Mr Nguyen Van Hong Mrs Nguyen Anh Thu Mrs Nguyen Thi Thanh Cham HANOI 2011 Group – Class X0210 Global Advanced Master of Business Administration TABLE OF CONTENTS LIST OF ABBREVIATED WORDS LIST OF TABLES – FIGURES INTRODUCTION CHAPTER 1: GENERAL BASES OF ARGUMENT ABOUT BUSINESS STRATEGY FORMULATION 1.1 Theories about strategy and strategic management Strategic definition 1.1.1 Strategy formulation process 1.1.2 1.1.2.1 Determination of business assignment 1.1.2.2 Assessment of external factors 1.1.2.3 Assessment of internal situation of enterprises 1.1.2.4 Strategic analysis and choice Basic steps of strategic management 1.1.3 1.1.3.1 Period for strategic planning 1.1.3.2 Period for strategic implementation 1.1.3.3 Period for strategic check 1.2 Business Strategic planning tools Period for information collection and systematization 1.2.1 1.2.1.1 EFE matrix 1.2.1.2 Competitive image matrix 1.2.1.3 IFE matrix Period for combination 1.2.2 1.2.2.1 SWOT matrix 1.2.2.2 SPACE matrix 1.2.2.3 Grand Strategy Matrix Decisive period 1.2.3 CHAPTER 2: CURRENT SITUATION OF BUSINESS ENVIRONMENT OF VIETCOMBANK-BA DINH BRANCH 2.1 Overview of Vietcombank and Vietcombank-Ba Dinh branch 2.1.1 Overview of Vietcombank 2.1.1.1 Introduction 2.1.1.2 Business lines 2.1.1.3 Vision and mission 2.1.1.4 Some achievements 2.1.2 Overview of Vietcombank-Ba Dinh branch 2.1.2.1 Process of establishment and development 2.1.2.2 Main operating activities 2.1.2.3 Organizational structure Group – Class X0210 Page 9 9 10 10 11 11 12 12 12 12 12 12 13 13 13 14 14 14 15 16 17 17 17 17 17 18 18 20 20 21 21 Global Advanced Master of Business Administration 2.2 2.3 2.1.2.4 Operating results Analysis of environmental factors 2.2.1 Analysis of external environmental factors 2.2.1.1 PEST analysis of macro-environment Analysis of industry environment by M.Porter’s 2.2.1.2 model 2.2.1.3 Assessment on opportunities and threats 2.2.1.4 External Factor Evaluation Matrix (EFE) 2.2.1.5 Competitive Image Matrix Analysis of internal factors of Vietcombank – Ba Dinh 2.2.2 branch 2.2.2.1 Human resources 2.2.2.2 Marketing 2.2.2.3 Organizational structure 2.2.2.4 Financial capacity 2.2.2.5 Research, development 2.2.2.7 Assessment on strong and weak points 2.2.2.8 Internal Factor Evaluation Matrix (IFE) The necessarity for the formulation of business strategy of Vietcombank – Ba Dinh Branch CHAPTER 3: BUSINESS STRATEGY OF VIETCOMBANK-BA DINH BRANCH TILL 2015 AND SOLUTIONS FOR IMPLEMENTATION 3.1 Business target of Vietcombank-Ba Dinh branch till 2015 3.1.1 General target 3.1.2 Specific target 3.2 Formulation of matrixes and selection of business strategy 2.3.1 Analysis of SWOT matrix 2.3.2 Analysis of SPACE matrix 2.3.3 Analysis of Great strategy matrix 2.3.4 Determination of alternative-possible business strategy 2.3.5 QSPM Matrix 3.3 Solutions to strategy implementation 3.3.1 Solution to human resource development 3.4.2 Solution to Marketing communication 3.4.3 Technological solution 3.4.4 Solution to re-structure of mechanery 3.4.5 Effective implementation of business culture 3.4.6 Solution to facilities building CONCLUSION AND PROPOSAL REFERENCE Group – Class X0210 22 26 26 28 35 40 41 42 43 43 44 45 46 46 47 48 49 50 50 50 52 53 53 55 56 56 58 62 62 64 66 67 69 70 Global Advanced Master of Business Administration Group – Class X0210 Global Advanced Master of Business Administration LIST OF ABBREVIATED WORDS ACB Agribank BIDV Eximbank EFE IFE NHNN QSPM SPACE SWOT Asia Commercial Bank Vietnam Bank for Agriculture and Rural Development Bank for Investment and Development of Vietnam Vietnam Export Import Bank External Factor Evaluation Matrix Internal Factor Evaluation Matrix The State Bank of Vietnam Quantitative Strategic Planning Matrix SPACE matrix (The Strategic Position and Action Evaluation) SWOT matrix (Strengths, Weaknesses, Opportunities, and Threats) Techcombank Vietnam Technological and Commercial Joint Stock Bank Vietcombank-Ba Đinh Joint Stock Commercial Bank for Foreign Trade of Vietnam – Branch Vietcombank VP Bank VRB Group – Class X0210 Ba Dinh Branch Joint Stock Commercial Bank for Foreign Trade of Vietnam Vietnam Prosperity Joint Stock Commercial Bank Vietnam - Russia Joint Venture Bank Global Advanced Master of Business Administration LIST OF TABLES - FIGURES Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 2.6 Table 2.7 Table 2.8 Table 2.9 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Figure 1.1 Figure 1.2 Figure 1.3 Figure 1.4 Figure 2.1 Figure 2.2 Figure 2.3 Figure 2.4 Figure 2.5 Figure 2.6 Figure 3.1 Operating result of Vietcombank for the 2008 – 2010 period Operating results of Vietcombank – Ba Dinh branch Data sheet of mobilization of customers’ deposit Surplus debt and structure of surplus debt on credit for the 2008-2010 period Increase in quantity in banking industry Growth of capital and capital mobilization and credit EFE matrix Competitive image matrix IFE matrix SWOT matrix for Vietcombank Ba Dinh SPACE matrix for Vietcombank Ba Dinh QSPM matrix for Vietcombank Ba Dinh Budget for target strategy implementation up to 2015 Business strategy establishment process SWOT Matrix SPACE Matrix Grand Strategy Matrix Organizational structure of Vietcombank-Ba Dinh branch Growth rate of after-tax profit of banking Growth rate of GDP and inflation in the 2002 – 2010 period GDP per capita in the 2000 – 2010 period Foreign Direct Investment (FDI) Import-export turnover for the 2000 – 2010 period SPACE matrix for Vietcombank Ba Dinh Group – Class X0210 Global Advanced Master of Business Administration INTRODUCTION Reasons for topic With the current trend of global economic integration, banking is one of industries which are influenced the most strongly and clearly Integration can bring about many opportunities for development and risks, threats and challenges for the banking At present, Vietnamese banking system has a nationwide branch network and more banks are established, leading to more severe competitive rate than ever For overcome threats and making use of good opportunity in order to improve their competitive positions in the market, banks have to lay out business strategies suitable for individual periods of development; appropriate to global trend based on the ensured balance between the country’s benefits and banks’ Therefore, planning of business strategy is a necessary demand for individual banks From that reality, Group decided to choose the topic: ”Building and selecting business strategy for Vietcombank-Ba Dinh branch till 2015” Subject and scope of research Scope of research is business strategy of Vietcombank- Ba Dinh branch, and those of some bank branches in Hanoi Scope of research is business operation of Vietcombank-Ba Dinh branch, in comparison with that of competitors on its area and within the industry Purpose of research and applicability: The topic is with a view to establish and select business strategy for VietcombankBa Dinh branch till 2015 and propose solutions to implement this strategy, aiming at leading Vietcombank-Ba Dinh branch to be one of great branches among Vietcombank system and on the its area Below are steps for implementation: - Systematizing bases of argument about business strategy, choosing analysis models which are effective for the formulation of business strategy - Applying system of bases of argument to the reality so as to analyze and assess internal and external enviroments, advantages – disavantages and then build up business Group – Class X0210 Global Advanced Master of Business Administration strategy for Vietcombank- Ba Dinh branch - Proposing solutions for implementing business strategy of Vietcombank – Ba Dinh branch The great assignment is done by a group of most members who are working in banking and is investigated, analyzed based on the reality, therefore business strategy set up for Vietcombank- Ba Dinh branch by this group must make a positive contribution to the branch’s activitites in the following years However, in the current extremely-complicated context of economy, proposals made by the Group are for long-term strategic oritentation only, not for detailed plan or flexible short-term plan Research method The great assignment of the group uses three research methodoligies including: - Approach method: Using summary of particular approach methods and historic approach method, associated with qualitative and quantitative approach methods - Method of primary information collection: Using summary of observation, interview and specialist methods - Information processing method: Using modelling method, analysis of causes and effects, descriptive statistics when analyzing business operation of Vietcombank-Ba Dinh branch, associated with use of subjects method: Strategic management, Human resources management, Marketing, Operational management, etc Lay-out of the great assignment Apart from introduction, conclusion, reference materials, the great assignment includes chapters: Chapter 1: General bases of arguments about business strategy formulation Chapter 2: Current situation of business environment of Vietcombank-Ba Dinh branch Chapter 3: Business strategy of Vietcombank-Ba Dinh branch till 2015 and solutions to implement Group – Class X0210 Global Advanced Master of Business Administration CHAPTER GENERAL BASES OF ARGUMENT ABOUT BUSINESS STRATEGY FORMULATION 1.1 Theories about strategy and strategic management 1.1.1 Strategic definition Definition of the strategy appeared in the Ancient Greece, this term of military origin derives from the word ”Strategos” refering to a leader of commander of an army In most cases, the strategy is a military term used to refer to the plan of disposing and distributing forces for the purpose of beating enermies or achieving its military target Nowadays, definition of the strategy is used very widely and considered as base for operation of enterprises Accurate definition of the strategy according to natural levels depends on point of view In general, a strategy when set up must satisfy all the followings requirements: - Being mapped out for a long time; - Creating the growth of the organization; - Using all resources that the organization has in the best effective way; - Creating the best competitive position for the organization in the future Hence, it can be said that, the strategy "is a series of activities of the long term, built up to enable an organization to achieve its desired position from current position through its formulation of competitiveness in comparision with other organizations’ advantages on the market.” (Michael E Porter,1996) Strategic management is the process of analyzing current environment, forecasting future environment, determining mission, target and strategic program, carrying out, inspecting and evaluating the implementation of targets, strategic program in reality 1.1.2 Strategy formulation process Firgure 1.1: Business strategy formulation process Group – Class X0210 Global Advanced Master of Business Administration Mission, vision Internal analysis + Model: - Value series, - Competive advantage + Conclusion: - Strong points - Weak points Construction & choice of strategy (SWOT) Accord apparatus organization with strategy Chosen strategy Lead on expenses Product differentiation Concentration Implementation and adjustment of strategy External analysis + Macro analysis: external analysis + Micreo analysis: Five competitive forces model + Conclusion: - Opportunity - Threat Supervision and assessment of strategy implementation source: document of Strategic management book 1.1.2.1 Determination of business assignment The report of business assignment is a statement of ”reason for existence” of an organization It responds to the central question” what is our business?” It is obvious that the report of business assignment is extremely neccessary for establishing and drafting strategies in an effective way” (Peter Drucker,1970) 1.1.2.2 Assessment of external factors Figure 1.2: External environment Source: Teaching materials on strategic management Group – Class X0210 10 Global Advanced Master of Business Administration The second: Together with the strong development of banking system is the development and deversification of service products to meet the various customers’ demands The third strategy group includes the following contents: - Enhancing quality of current sevice products by improving conditions of facilities, human, ocupational process - Implementing new product set out by Vietcombank according to the general service product development - Increasing added value on product, service to create competitive advantages - Implementing deversification of service products, flexibility in supply of service products according to customers’ demands The forth strategy : Vietcombank Ba Dinh needs to choose marketing communication strategy to build trademark in area through investment for market research Reasons to choose this strategy are as follows: The first: Vietcombank trademark is the strong trademark However, if it is not continously consolidated from the basic level, it will be weakened gradually and market shares will be also narrowed, especially in the strickly competitive condition at present The second: Only through marketing, the Bank is able to grap customers’ demands, transmit functions, value and interests of service products in order to attract more customers, and satisfy customers’ demands The forth strategy group includes the following contents: - Enhancing budget to advertisment and promotions activities, to attract new customers and keep current customers - Investing in market reseach work about customers and competitors - Carrying out Marketing Mix, marketing policies turn around: product, distribution, price and communication The implementation of above strategies is required to be evaluated quarterly, annually to ensure the appropriation and stable development The implementation Group – Class X0210 61 Global Advanced Master of Business Administration methods are required to carried out comprehensively, priority according to the imperative level and budget 3.3 Solutions to strategy implementation 3.3.1 Solution to human resource development To implement the main chosen strategies, it is required to build the human resource including employees with high qualification and general knowledge about service products of bank, enthusiastic service style, good communication skills So, Vietcombank Ba Dinh needs to have: 3.3.1.1 Process of recruitmeent and attraction of human resource Vietcombank Ba Dinh needs to innovate recruitment method The traditional recruitmeent method is combination of writing test (profession, language) and interview This form is serious in theory, ignoring teamwork skills, communication skills, problem solving skills … Therefore, it will not be enough to evaluate candidates who has actual experience, good working skills  When recuitment, it is required to base on the Job discription for each position to put forth the reasonable subject For examples, to the transaction officer, in addition to writing test, communication skill test should be added  Building the close and scientific recruitment process right from receipt of documents to guarantee candidates with high qualification and good skills  Abolishing absolutely the recruitment through relationship, respective of qualification and virtue This status is still happens regularly at Vietcombank Ba Dinh Concurrently, Vietcombank Ba Dinh needs to carry out solution to attract the other human resource such as: Bulding relationship with prestige universities to recruit good students; combining with recruiment company to seak personnel corresponding to the position; having policies to attract good person from other units in industry 3.3.1.2 Training and retraining personnel  Basing on job discription and work standard for each specific position, to survey and classify current human resource according to groups: group meeting standard, group Group – Class X0210 62 Global Advanced Master of Business Administration not meeting standard, then putting forth the retraining plan to the second and stipulating cleary the completion time for each working skill  Building the training plan for human resource, attacting an importance to training at place, plan to exchange personnel, ensuring that each staff is not only good at profession, but also improve the general knowledge in banking  Regularly appointing cadres to participate in the professional cources organized by Vietcombank, and encourage to fund, organize the seminars, discussions about profession, cross introduction to products  Periodically organizing the examinations, checking in each different divisions in branch to re-evaluate qualification and capacity of personnel The evaluation result is sent to every staff to complete them Concurrently, it is possible to detect good staffs to renew the manager source, avoiding being inactive when opening more transaction offices or having left of personnel or they work for other organization 3.3.1.3 Policy on salary, treatment, personnel management  Building the special preference such as arranging salary level to attract good staffs from other organizations to work for Vietcombank Ba Dinh  Basing on Job discription, and work standard for each specific position in the Bank, NH, Board of Directors is possible to monitor, evaluate work of each staff exactly, to assign timely, avoiding brain drain to other banks  Building the reward and salary policy is not based on interest, length of woking, it is ordered to combine with the progress of staffs about knowledge, and skills supporting to work such as foreign language, information technology, in order to encourage staffs to train themselves 3.3.1.4 Policy on promotion and arrangement of human resource  This policy will help to uphold whole capacity of each staff and bring the high business effeciency for Vietcombank Ba Dinh Leaders needs to grasp qualification and capacity of personnel to assign tasks resonably among divisions It is required to regularly check and evaluate activities of each divisions Then it is possible to reGroup – Class X0210 63 Global Advanced Master of Business Administration arrange or exchange personnel to the more appropriate position, creating conditions for staffs to uphold the creation and responsibility for their decisions, to evaluate the capacity of each personnel and assign resonable task  Effective implementation of planning, developing cadres publically, democratically to create source cadre, strengthen to train politic virtue together with manager planning, orient to strive for projected object 3.4.2 Solution to Marketing communication 3.4.2.1 Market reseach Vietcombank Ba Dinh needs to focus on following problems:  Bank’s research on customers, because it wants to keep customers thanks to the agreement, attraction of customers owing to the value for customers higher than that of competitors Therefore, it is necessary to research satisfaction and awareness of customers about value by sending questionnaire to customers to buil the resonable customer policy  Reseaching competitors basing on comparision among products, interests, advetisment activities, network … regularly They are NH: BIDV, Vietinbank, Agribank, Techcombank, ACB in area and it is possible to determine the advantegous and disadvantegous competitive field Basing on research result, being active to build and carry out the business strategy superior to competitors Branch needs to be active to grasp market in area (foreign investment, foreign exchange, export activities, overseas national currency exchange …) to develop the corresponding service 3.4.2.2 Marketing Mix implementation Policies on marketing turns around: products, distribution, price and advertisment communication For products: Branch needs to grasp timely guides, instructions of Vietcombank in development, opening and promoting quality of service products, especially new product with feature of opportunity, time to be active to have implementation plan In this preriod, in addtion to focusing on exploitation of service products with strenght bringing Group – Class X0210 64 Global Advanced Master of Business Administration a great earnings such as: Commercial sponsor, international payment, security, trade of foreign currency, branch needs also to attach an importance to retails service products such as salary payment, SMS banking and new products such as news consultancy in Internet, bill paymetn through ATM and at transaction office, online payment connection … - Implementing policy o deversifying the banking service products according to the development orientation of mix bank Guaranteeing to provide closed service for customers of Branch and in the system of Vietcombank For distribution: The development orientation of Vietcombank Ba Dinh system is becoming the retials bank so the expansion of network is urgent The network is required to be enough strong but corresponding to scale, financial capacity, human resource and operation scale At present, Vietcombank Ba Dinh is able to:  Establish the new transaction office according to the route approved by Vietcombank to complete the network form; concurrently to consolidate and upgrade the current transaction offices, step by step add function and mission and assign task more responsibly for transaction offices in order to promote the work of mobilization and develop the retails banking through transation points network  Build automatic banking transation points in the Commercial centres, residential areas and new urban areas; to put forth more channels of issuing card; to reseach to implement the coorperative forms with Commercial Centres, Supermarket to issue card for people basing on dividing mutual expense For price: At present, Vietcombank Ba Dinh evaluates the service products basing on price regulated by Vietcombank and reference of other banks In general, Vietcombank is always the bank which has the least loan rate and charges relating to commercial sponsor, credit activities in the banks sytem But the deposit interest is impossible to compete with the other banks such as Joint Stock Commercial Bank, so Vietcombank Ba Dinh needs to have the flexible private policy on price, specifically: For strategic customers, it is possible to pay more deposit interests outsite the applied interest Group – Class X0210 65 Global Advanced Master of Business Administration rate, but in the permitted divergence indicator of Vietcombank or converting different interest percent in the form of present, bonus For communication:  Enhancing transmition of information to major peoples by flyers to introduce function of each service, product briefly and easy-to-understand in order to help customers to up to date, consistent in service products being provided by the Bank  Through staffs, it is necessary to mobilize customers who have deposit and loan to use services of banks The staffs who understand features, characters of their bank’s service products and also have the direct transaction with customers, so it is possible to have more effect in transmitting, instructing, persuasing customers than any advertisement modes  Periodically organizing the customer conference, through this direct contact, Vietcombank Ba Dinh is possible to learn more about the customers’ demand as well as recognizing eveluation on service style, quality of product provided by the bank Then it is necessary to put forth the overcome method in order to serve customers better and enhancing trademark of Vietcombank Ba Dinh 3.4.3 Technological solution Technological solutions are considered under points of view: system (software, hardware) and technology information personnel 3.4.3.1 System Software: Silverlake program applied since 2003 has brought many interests for customers and bank through management and online connection of whole system However, Vietcombank Ba Dinh needs to ensure the security because the electronic banking services built on public telecommunication network contains many risks Therefore, the system needs to be ensured about data transmision line, to be attached to implement the network security solutions more absolutely, such as using camera to monitor, requirement to lock the door after the computer engineer leaves room to avoid causing damages for the bank and customers Group – Class X0210 66 Global Advanced Master of Business Administration Hardware:  All computers from head office to transaction offices are required to be synchronous in configuration, avoiding that computer equipped to transaction offices has low configuration tránh, not strong enough to run the modern applied program  Beside the offical systems, it is necessary to have a ready stand-by system In addition to online system, it is necessary to have offline system to use guranteeing that the internal transactions run normally when occuring the blocked telecommunication  Technological system is required to have expansion feature to guaranteeing demand on expanding network in operation process, and not stagnate operation when connecting more network 3.4.3.2 IT Personnel  The current capacity of technological system and the creation of new products depending on IT personnel Therefore, the bank needs to choose and behaves resonably the professional staffs in IT Concurrently, the work required by the other divisions needs to be shown in written to determine clearly responsibility, implementation progress of each division, absolutely no permission to depending on others, coordiantion leading to no responsibility and dispute  Creating conditions to staffs to study in the informatics cources necessary to the work as well as to aproach to the IT in banking finance 3.4.4 Solution to re-structure of mechanery Builing and completing the mechanery in direction of establishment of blocks, orientation to customers Then it is possible to overcome weakness that the risks management division is apart from the professioal divisions independently, customers will have transaction through one gate, the relationship among divisions is the coordination according to professional process and responsibility of each division Vietcombank Ba Dinh need to re-structure as follows: Customer block: Dividing the customers department into: Group – Class X0210 67 Global Advanced Master of Business Administration  Enterprise division: Carrying out the Marketing, development of enterprise relationship and credit work  Individual customer division: Carrying out development of individual customers relationship, sales of products, retails banking service and credit work of individual customers Operational block:  Establishment of risks management dividion: Merging one part of Cusotmer division and one part of Accounting division (Loan management part), directly carrying out operation and security, loan management; calculating to extract and compile a risk prevention according to the loan classification result of the Customer division  Establishing the international payment division: the payment team is apart from the Customers division, to implement marketing, transaction in commercial sponsor, payment and security Risk management block: Establishment of risk management division to act as an advisor and put out proposal on policies, methods to develop and enhance the credit quality, risks and loan evaluation guranteeing that the proposals are corresponding to regulations, treatment of bad debts, instruction to implement the prevention methods of operational risks, prevention from laundering money, management of the ISO quality standard system, internal inspection… Internal management block:  Establishment of General Department – Capital is trade on foreign currencies: Analysis, evaluation on social, politic and economic status of locals, partners, competititors making influence on the Branch’s operation; acting as an advisor in building, carrying out and reporting the evaluation on implementation of business development plan; trade on capital and foreign currencies  Separating the Informatics team out of the personnel administration division: Directly carrying out according to competence, regulations, IT process of the branch; Group – Class X0210 68 Global Advanced Master of Business Administration instruction, training, supporting, checking divisions, cadres to run skilled, i accordance with IT regulations 3.4.5 Effective implementation of business culture Business culture is considered as awareness only exiting in an organization, not in a individual Therefore, individuals having different basis of culture, life style, awareness, positions in an organization, will tend to express that organization’s culture in one way, or will have a common denominator Business culture relates to awareness and behavior of members to that internal and external organization Concurrently, business culture is the most concrete and lively appearance of that organization which is possible to be realised easily That image is able to be constituted fom many elements Therefore, it is just necessarry a changed element, theoretically, the image on that organization will be different Hence, theoretically, there will not be identical business culture among organizations, although they have many the same characters To to carry out effectively Vietcombank culture, Vietcombank Ba Dinh needs to implement as follows :  Ensuring the unification in working culture of Vietcombank at all levels and whole branch  Considering customers as centre in all operations of Vietcombank Ba Dinh, professional operation, quick and effective resolution, to meet all customers’ demands  Step by step building banking culture friendly, enthusiastic working style, harmonious coordination among divisions, friendly working environment, promotion of staffs ability  Being explicit and public all operational policies from the recruitment period to reward period during working process Group – Class X0210 69 Global Advanced Master of Business Administration  Behaving equally to every members, avoid being biased thanks to individual relationship, creating the healthy competition in internal organization, this will be a driving force to promote the organization to develop stronger  Beside equiping its personnel the professional knowledge, the professional skill is ordered to be up-to-dated regularly Vietcombank Ba Dinh also orients its staffs to have disciplinary awareness and professional  Together with determination of mision and responsibility of staffs, it is necessary to create conditions for them to well complete the assigned work and to build the policy on salary and reward, clear work evaluation, recognition of staffs to encorage them to self-aware implementation of its work plesantly and contribution to the organization’s development  Vietcombank Ba Dinh needs to orient its personnel to aware that their colleges is internal customers, to consider collleges implementing the following work as their customers, creating healthy and friendly environment  Building the relationship between leaders and personnel is the coordinative relation because of bank’s target, not just the implementation with few responsibility, specific as follows: + Sharing staffs about the working target to understand and put out the method helping them to carry out the target + Sharing staffs about the knowledge and experience to enhance staffs’s capacity and to create confidence of staffs to the managers + No considering staffs as the trivial people, reference of opinions of personnel to make a decision 3.4.6 Solution to facilities building At present, whole head quarter and transaction offices of Vietcombank Ba Dinh are leased, the rent is VND300 million/month causing great cost, making affluence on operation efficiency Due to leasing, the area has not satified whole current demands and network development in the future when completing the machinery Besides, it is the Group – Class X0210 70 Global Advanced Master of Business Administration unstability in signing the office lease contract from the leaser To implement the long-term development strategy, the branch needs to invest in facilities and equipments to meet requirements on serving customers’s satisfaction as well as its operation The branch needs to invest in construction of Head quarter with scale based on owner’s capital Besides, the regular investment in facilities as interors and equipments is in accordance with standard of Vietcombank Table 3.4 Budget for target strategy implementation by 2015 Or Solutions Marketing communication Development in human resource Investment in facilities Investment in technology Others Total Estimated Budget Budget 13 15 80 10 10 128 Unit: VND billion Implementation time Quarterly, 0.1% annually mobilized capital Quarterly, on average VND5 billion/year, equivalent to VND50 million/person/year In 2012, regular depreciation in coming 25 Annually Annually Chapter has analised and combined the elements: chances, threats, strengths, weakness in the comparision between Vietcombank Ba Dinh and competitors and building the stratigies with alternative ability to put forth the aggressive solutions The solutions need to be implemented comprehensively righ from this time for Vietcombank Ba Dinh to get the projected target Group – Class X0210 71 Global Advanced Master of Business Administration CONCLUSION In the period from 2008 to 2011, to the economics generally, to the bank particularly, there are many changes in quality in the competitive environment: it is the placement from internal competition to international competition Pressure of integration in international economics doesn’t allow enterprises to apathetically and leisurely step in coming road Vietcombank Ba Dinh is not out of that scope In the tendency of development and integration, Vietcombank Ba Dinh is required to have timely adjustment to stand firm and develop in the whirl round of competitive environment Hence, Vietcombank Ba Dinh needs to build a strong capacity, a right orientation to intergrade in the common environment Basing on analysis of strengths - weakness, chances – threats of Vietcombank Ba Dinh, the great execise puts forth 04 business strategies for Vietcombank Ba Dinh: market development strategy, focusing on main point, product development strategy, markeing telecommunication strategy To carry out the strategies, Vietcombank Ba Dinh needs to focus on solution groups: solution to human resouce development, on Marketing, on technology, restructure of machinery, implementation of Vietcombank culture, building facilities However, business environment has always changes; hence, Vietcombank Ba Dinh needs to regularly check and evaluate on the implemntation result of resolutions to have the reasonable adjustment Beside the proposed solutions, the group has also the proposal to the State bank of Vietnam, Vietnam Banks Association, Vietcombank on regimes, policis in order to create conditions to the bank’s operation generally and to Vietcombank Ba Dinh particularly in coming time Group – Class X0210 72 Global Advanced Master of Business Administration PROPOSAL For the State Bank of Vietnam - The State Bank of Vietnam needs to consider carefully the sufficient and necessary conditions to be licenced to establish the new commercial bank It is order to avoid that the economic corporation participates in establishment of bank in order to lend cross among corporations with joint bank ownership, making credit risk is in high danger - The State Bank of Vietnam needs to enhance management work through associations, card unions, concurrently, quickly consider and issue the legal documents relating to regime of card publishment and payment corresponding to card operation in Vietnamese market, support policy, promoting the non-cash payment method To Vietnam Banks Association: The Vietnam Banks Association (VBA) needs to uphold the role in associating domestic banks to enhance competitive capacity The policies on interests, exchange rate, investment in modern technological, new products… depending on particular strategy of each bank, so it is in the scope of general aggreement of VBA, avoding unnecessary competition in price such as interest competition in recent years To Vietcombank - In coming time, forest of credit growth rate will be limited at a rate of 20% level At presetn, many commecial banks have used nearly end of limit of credit growth rate Therefore, many banks will not dare to mobilize capital with high interest rate and no output It is also the advantage of Vietcombank In coming time, it is necessary to improve, promote the advantages in trademark, prestige and safety of customers by researching new products to put forth the attractive mobilized methods, products corresponding to market, to the actual operation of Vietcombank and demands of individuals and enterprises - Nowadays, account outstanding rate/ total mobilization of the branch is low, so the interests depends mainly on internal interests Hence, we want to propose the Head Group – Class X0210 73 Global Advanced Master of Business Administration quarter to support the branch on acceptance rate and deposit interest to the agreed transactions and higher margin of difference between mobilization and capiaal deposit at the Head quarter for the branch to minimize difficulties in mobilization when competing with other commercial banks and still to have interest guarantee Group – Class X0210 74 Global Advanced Master of Business Administration LIST OF REFERENCE DOCUMENTS In Vietnamese Associate Professor PhD Le The Gioi – PhD Nguyen Thanh Liem – MSc Tran Huu Hai (2009), Strategic Management, Statistical Publishing House, Hanoi Fred R.David (2006), Strategic Management Concepts, Statistical Publishing House, Hanoi Global Advanced MBA Program of Griggs University in Hanoi (2009), Management of Organization Behavior – for internal circulation only, Hanoi Nguyen Thi Tuyet Mai (2009), Marketing Management, Slide of the lecture for subject: Marketing Management, Global Advanced MBA Program of Griggs University, Hanoi Michael E.Porter (2009), Competitive Advantage, The Publishing House, Ho Chi Minh city Vietcombank, Financial Statements of year 2008, 2009, 2010 Vietcombank – Ba Dinh Branch, Financial Statements of year 2009, 2010 and 31/06/2011 In English Fred R.David (2011), Strategic Management, Pearson, UK Michael E Porter (1980), Competitive Strategy, New York: Free press, USA Online Ban Viet Securities Company, An update on banking industry on 26/01/2011 BIDV Securities J.S.C, Report on banking industry update on 29/7/2011 Website of General Statics Office http://www.gso.gov.vn Website of the State Bank of Vietnam http://www.sbv.gov.vn Other Websites: http://www.vietcombank.com.vn; http://www.bidv.com.vn; http://www.vietinbank.com.vn; http://www.agribank Group – Class X0210 75 ... SITUATION OF BUSINESS ENVIRONMENT OF VIETCOMBANK-BA DINH BRANCH 2.1 Overview of Vietcombank and Vietcombank-Ba Dinh branch 2.1.1 Overview of Vietcombank 2.1.1.1 Introduction 2.1.1.2 Business... Vietcombank and Vietcombank-Ba Dinh branch 2.1.1 Overview of Vietcombank 2.1.1.1 Introduction Vietnamese name NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN NGOẠI THƯƠNG VIỆT NAM Transaction name VIETCOMBANK Headquaters... and Threats) Techcombank Vietnam Technological and Commercial Joint Stock Bank Vietcombank-Ba Đinh Joint Stock Commercial Bank for Foreign Trade of Vietnam – Branch Vietcombank VP Bank VRB Group