Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (126)

Draft of Major Exercise – Ge MBA 01 V01 – Group MINISTRY OF EDUCATION AND TRAINING HANOI NATIONAL UNIVERSITY ‫ھ‬ BULDING BUSINESS TRATEGY OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM AT NORTH QUANG BINH BRANCH IN THE PERIOD 2010-2015 DRAFT OF MAJOR EXERCISE GeMBA01.V01 - Group Group members: Phan Xuan Khanh Đao Huu Son Nguyen Thanh Phuong Ho Tan Canh Quang Binh – 2009 Draft of Major Exercise – Ge MBA 01 V01 – Group CHAPTER I THEORETICAL BACKGROUND OF BUSINESS STRATEGY OF COMPANIES 1.1 Business strategy of companies 1.1.1 D e f i n i t i o n “Business strategy is a general program of action towards the objectives of the company "[1.14] Business strategy does not aim to outline a special plan of how to achieve goals because it is the task of numerous supporting programs, of other functional strategies It just creates the frame of thinking guide for action * Business strategy is normally defined as three levels: + Corporate Strategy: Determine and point out objectives, goals and business activities of the company, develop policies and basic plan to achieve goals of the company + Business unit strategy: Identify choices of products or particular form of the market for private business in the company; determine the way each business unit will try to achieve their goals to contribute to finish overall goals of the company + Operational strategy: Determine the solutions, plans for each field of business * Besides the concept of business strategy, there are concepts, which are closely related to: Task Report: report on long-term objectives to show the company’s business mission with service products which organizations will supply to customers, help to distinguish between organizations and organizations It Draft of Major Exercise – Ge MBA 01 V01 – Group describes the values and priorities of organization, identify general developing direction for organization + The long-term objectives: Determined achievements that a company tries to gain when pursuing its task A long-tem objective is more than one year It must be challenging, measurable, appropriate and clear It is set for the whole company and for each part Long-term objective is important in the period of working out strategy + Annual objectives: What companies need to achieve to reach long-term objectives? It is identified by the achievements in managing, marketing, financing/accounting, producing/executing, researches of development and information system Annual objective is important in the period of carrying out strategy + Policies: Means to achieve given objectives, instructions for making decisions and carrying out repetitive or cyclic situations Policy is important during period of carrying out strategy + Opportunities and challenges: These are the impact of external environmental factors, beyond the control of organization and can benefit or damage organization + Strengths and weaknesses: These are the impacts of internal elements of organization, under the control of organization They are identified in the relation to competitors 1.1.2 Strategy in business unit 1.1.2.1 Concentric growth strategy Each strategy of a company is implemented for business unit However, at business unit, firstly need to pay attention to focus growth strategy since the main targets of these strategies have been products and markets This group of strategies primarily aims to improve the competitive position of company with existing products on the basis of increasing marketing activities Draft of Major Exercise – Ge MBA 01 V01 – Group or change existing market strategy but still not change any products There are three main types of strategy: +Market penetration: seeking increasing market share for products and services in current markets by taking efforts to marketing + market development: Launch products and services to new areas + Increase turnover by improving and innovate existing services 1.1.2.2 Competitive strategies from the view of M Porter Michael E.Poter – a professor of Havard University has showed basic competitive strategies in his work: “Competitive Strategy” a Cost leadership strategy This strategy creates the competition in two ways: - Lower pricing than the competitors to attract target customers who are sensitive to price to increase total revenue This strategy is suitable to large-scale business unit, can reduce costs during operational process - Restrain from not cutting price down entirely, be content with current market share and use lower cost devices to earn more profits per sold product b Differential strategy Differentiation is aimed at the broad market that involves the creation of a product or services in comparison with competitors to get to the first rank Since then, setting higher price than other conventional products, increase turnover by attracting customers who are interested in brands with striking features such as: distinctive smell, the ability of provision for distribution to customers anywhere, appliance of science in design and management, optimal services, high quality, prestige and easy of distinction, etc c Focus strategy According to this strategy, business units pay their attention to narrow segments of the whole market These segments can be defined by geographic areas, products, and target customers Chosen attractive segments are which there Draft of Major Exercise – Ge MBA 01 V01 – Group are no competitors in or the competitors have not met the needs and wants of customers yet 1.1.2.3 Competitive strategies for business units according to market share position in the market In spite of being in the same company, each business unit has different market share position in the market a Bus ines s units leading market - Strategy of expanding the demand of market: Seeking new geographic areas for sales, seeking new customers, developing new uses and encouraging greater use of the product - Defensive strategy: Helps leading business units in the market hold their position in the current market Leading business units are always threatened by other competitors, especially units that hold challenging position in the market Therefore, business units have to defend continuously against attacks from competitors - Strategy of expanding market share: takeover small business units of competitors, attack to take market share of weak competitors b Business units challenging market: Attack leading business units and other competitors to increase market shares or to run parallel with competitors and not rub against competitors behind To carry out aggressive strategy, business units must follow the following steps: - Clearly identify the competitors to attack and the goals of strategy - Select appropriate aggressive strategy: attack forwards, attack sidewards, attack surroundings, etc c Bus ines s units following market: These business markets not want to face leading competitors or challenging market because of their lack of resources, their fear of loss, costs, etc Therefore, they ward off by closely following the leading competitors by imitation strategy: Draft of Major Exercise – Ge MBA 01 V01 – Group - Imitate accurately all products, methods of distribution, advertising and marketing activities, supplying products for target market, which is sensitive to low price - Imitate some core content in the marketing mix of leading competitors and keep some difference of packaging, pricing, adverting, sales network, etc - Imitate including improvements to adapt to the market by depending on the marketing mix to improve and create specific features for their marketing to meet the needs of target market d Hidden business in the market Businesses units hidden in market are always seeking one or several segments to hide safely and to be profitable To succeed in narrow market segments, they often carry out typical specialize strategies: - Specialize according to the last user: Depending on each types of sector, businesses choose a customer target who has needs of using products or services to serve - Specialize in phases in production process, product distribution: Business units can choose details, or components of a fully worked-out product, additional products to the main ones, etc - Specialize according to customers: Choose the customers basing on demographic standard such as customers with high, medium or low income, or clients are children, teenagers, youth, etc - Specialize according to sales areas: Choose geographical areas to supply such as domestic market, local market, or market according to international areas, etc - Specialize according to features of product: high quality, luxury or normal - Specialize according to products in each sector: according to one or several products in big industry Draft of Major Exercise – Ge MBA 01 V01 – Group - Specialize according to select business services that competitors not offer 1.2 Process of planning a strategy Planning a business strategy is the beginning period in the process of strategic management The process of planning a strategy includes four steps; each step will include the following: 1.2.1 I d e n t i f y business task The idea of reporting business task by Peter Drucker in 1970s is due to his studies at General Motors company and 21 his own books as well as hundreds of his articles Drucker said: “A report of business task is a statement of “reason for existence” of an organization It answers for a main question: What is our business? The report of business task clearly is a necessary thing to establish goals and draw up strategies effectively [2,93] 1.2.2 E v a l u a t e external environment Environment of an organization includes factors, forces, regulations… those are outside business affecting the operation and performance of business but the manager cannot control them Environment of organization can be divided into two levels: macroenvironment and microenvironment Macroenvironment affects all business but not imperatively in a certain way, including: (1) Economics environment (2) Law, Government and Politics environment (3) Culture and Society Environment (4) Nature environment (5) Technology environment Microenvironment is defined by a particular sector Businesses in the sectors are affected by the sectors’ microenvironment, including: (1) Competitors (2) Customers (3) Suppliers (4) Implicit rivals (5) Replacing products Analysing the environmental factors will allow businesses to identify what opportunities (O) business can take advantage of, and what challenges (T) Draft of Major Exercise – Ge MBA 01 V01 – Group business must face Identify and evaluate opportunities and challenges from the external environment which affects business will allow business to set up clear business tasks and propose suitable policies to achieve annual goals That identifying outer factors is qualitative, intuitional, and unimaginable In strategic management, researchers have offered two tools, which allow business to mark and quantize influences of environment to operations of the business They are External Factor Evaluation matrix and competitive profile matrix 1.2.3 E v a l u a t e internal situation of business Internal situation of business are often evaluated through functional field such as Finance, Human resource, Management, Organization, Marketing, Research / Development; Information technology That analyzing internal situation of business will allow identifying strengths (S) and weakness (W) of business Since then, chosen business strategies need to maximize strengths and overcome weaknesses of the business Similar to technique to analyse external factor, in order to quantitize analysis of internal situation of business, they use “Internal factor evaluation” (IFE) 1.2.4 A n a l y z e strategies and choices That analyzing strategies and choices mainly is making subjective decisions based on objective information to identify the operational process, which can be chosen Since then, the company can finish their responsibilities and objectives Current strategies, objectives and missions of company with internal and external controlling information will provide the basis for forming and evaluating feasible strategies 1.3 Tools for planning a business strategy According to Fred R.David, there are three periods to form business Draft of Major Exercise – Ge MBA 01 V01 – Group strategy and each period uses different tools Stage 1: Collect and systematize information This period summarizes basic information, which is collected and systematizes to form business strategies This period uses three tools: EFE matrix, competitive profile matrix and IFE matrix Stage 2: Combining This period chooses, arranges and combines external environmental factors, internal factors to draw up feasible strategies This period will use matrix tools: Strengths – weaknesses, opportunities – threats (SWOT) Strategic position and action evaluation matrix (SPACE) and big strategic matrix Stage 3: Decision The only tool this period uses is Quantitative Strategic Planning Matrix (QSPM) Matrix QSPM uses information in period 1, objectively evaluates feasible business strategies in period to decide which business strategies is the most optimal for business 1.3.1 S t a g e of collecting and systematize information 1.3.1.1 EFE matrix Matrix EFE is set with five steps: - Step 1: Gather a list of external factors Divide factors into two groups: opportunities and threats - Step 2: Assign a weight to each factor The value of each weight should be between and with total value of all weights equals 1 means that the factor is the most influential and critical one - Step 3: Assign a rating to each factor Rating should be between and Rating indicates how effective the firm’s current strategies respond to the factor Point = superior Point = above average = the response is below average and = the Draft of Major Exercise – Ge MBA 01 V01 – Group response is poor - Step 4: Multiply each factor weight with its rating This will calculate the weighted score for each factor - Step 5: Add all weighted scores for each factor This will calculate the total weighted score for the company The highest total score is and the lowest is Average is 2.5 The higher point is, the better the business respond to external factors 3.1.2 Competitive profile matrix This matrix identifies major competitors of business This matrix is expansion of EFE matrix with the level of importance of factors, significance of score of each factor and total important scores have the same meaning The difference between competitive profile matrix and EFE matrix is that: Some external factors that play decisive important role are also compared to Total points of evaluating competitors will be compared to businesses, which are chosen as samples 1.3.1.3 IFE matrix IFE matrix is also set by steps: - List internal factors - Assign a weight that ranges from 0.00 to 1.00 to each factor (increasing level of importance) with the sum of all weights equals 1.00 One indicates very important for business, regardless of whether a key factor is an internal strength or weakness of business - Score from to for each factor presenting internal characteristics of business to that factor Point is the major weakness, point is the minor weakness, point is the minor strength, and point is major strength - Sum the total weighted score for business ( by weights determined by step 4) Draft of Major Exercise – Ge MBA 01 V01 – Group FS The strategy of attacki ng CA -6 -5 -4 -3 -2 -1 IS -1 -2 -3 -4 -5 -6 3.1 Image: The strategy in SPACE matrix That image indicates strategic position of BIDV in North of Quang Binh needs to consider like that: The bank is good at financial and has many competitive advantages in a stable industry In the present background, BIDV in North of Quang BInh has to choose itself one attacking strategy The strategies that are cautious, defensive, competitive not only are feasible but also lose opportunity to develop 3.2.3 Analyzing strategic matrix Owing to analyzing in chapter II, we judge: - About competitive position in the market: BIDV in North of Quang Binh is one of rather strong group in the market - About the development of market: The market of banking service have developed very fast and will continue in the next period - With above factors, in big strategic matrix, BIDV in North of Quang Binh is at the first right angle, it means we can apply the following strateties: Draft of Major Exercise – Ge MBA 01 V01 – Group Expanding market; Penetrating market; Developing product; Combining ahead; Combining reawards; combining breadthwise; and diversifying, concentrating can be both carried out 3.2.4 Defining business strategy capable of replacing By analyzing SWOT matrix, we bring out SO group strategy for business activity of the branch of BIDV in North of Quang Binh: - Expanding market strategy (S2,S3,S4,S5+O2,O5): To carry out this strategy, BIDV in North of Quang Binh should take advantages of management staff, employees, brand prestige, the unification of will in the branch and take opportunity about great need of banking product and service, stable political environment to develop market - Strategy of concentrating in the main point (S3,S4+O1,O6): BIDV in North of Quang Binh should use brand prestige and serving manner of young active and enthusiasm staff to take advantage of the opportunity of high turn-over export import, the growing speed of GDP so that it can expand its suitable customer with the segment including popular customer, rich customer and potential ones - Strategy of developing new product (S2,S3,S4+O3,O4): Taking advantage of management staff, employees, brand prestige and taking advantage of the opportunity of science and technique improving, the opening of market to develop new product in order to meet the variety demand of customer 3.3 QSPM matrix We choose the strategy for SO group by analyzing QSPM matrix: 3.3 Table QSPM matrix Elements Classifi Replaceable strategies Inside elements The cation Developme Penetration Concentrati basic of nt attractiv thị trường on AS TAS AS TAS AS TAS e point Draft of Major Exercise – Ge MBA 01 V01 – Group Total asset Bad debt Management staff 2 12 12 12 6 Young active employee 3 9 Brand prestige 4 16 16 12 Unification of will and action 3 9 12 Using and training human resource Risk management Marketing strategy 10 Distribution network Outside elements Export and import turnover Political environment 6 3 12 3 3 4 4 3 4 4 4 The development of science and technique Opening financial market 12 12 16 6 Growing speed of GDP Penetration of foreign banks 3 12 12 3 12 3 12 Substitute Bank system 3 9 9 Bankrupting threat of firms 12 12 12 10 Need of banking product and service 12 12 16 Total attractive point 174 159 164 Draft of Major Exercise – Ge MBA 01 V01 – Group Among them, AS is the attractive point, TAS is the total attractive point We should give priority developing market strategy to SO group strategy, because of the following reasons: TAS = 174 is the highest result We choose the strategies of BIDV in North of Quang Binh till 2015 owing to the following priority order: Name of strategy 3.4 Table: Strategies: Main contents Strategy of market developing (S2,S3,S4+O1,O2) Strategy of low cost leading Concentrating in looking for the convenient to set up transaction place, broaden system (S2,S3,S4+T2,T4) Taking advantage of low cost outcome, owing to that leading the market by fixing a low price Strategy of reinforcing marketing activity Investing in advertising and promoting activities to market new customer (W3+T2,T3,4) giữ khách hàng có Strategy of rearranging organization apparatus and developing human resource (W2,W5+O2,O4) Rearranging organization apparatus according to TA2 model of Vietnamese BIDV Appointing official to take part in professional training courses Strategy of developing product (S2,S3,S4+O3,O4) Improving the quality of existing product and service and developing new product given by Mother BIDV, diversifying products and services Strategy of concentrating in main point (S3,S4+O1,O6) Concentrating in the segment of popular, rich and potential customer 3.4 Process of strategy organization and implementation Draft of Major Exercise – Ge MBA 01 V01 – Group  Rechecking strategic target and bases for strategy construction  Establishing annual targets  Constructing support plan and system of policies  Proposing reasonable procedures, budget and program  Distributing resources (Human resources, finance, facilities, and technique)  Selecting and completing organization structure  Forming steering committee and administrative mechanism  Commiting to implement strategy  Step by step deploying strategy implementation  Inspecting, controlling, adjusting and coordinating during execution 3.5 Solutions to carry out strategies 3.5.1 The solution to develop human resource Our branch concentrates in improving quality of banking officials We continuously select, complete, reinforce the manpower of credit staff, including managing official and directly demonstrating staff It is essential to strengthening training and retraining credit staff comprehensively, constantly, systematical Thank to that, we can improve continuously the level, awareness, ability to serve business activities effectively We need to investigate, apply suitably with the real condition and ensure them work effectively We should also arrange and dispose the credit staff sensibly to the suitable people with the right job so that we can assure to use human resource effectively At the same time, we ought to encourage our staff in researching documents, rules about related professional services to satisfy the requirements of modern banking Apart from compensating of material reasonably, it should have strict regulations concerning rewards and punishments, Draft of Major Exercise – Ge MBA 01 V01 – Group equip with facilities, working conditions in order to create the driving force for development -Relying on the table describing assignment and working standard in each position of the staff, we have surveyed and classified the groups of 64 existing employees: the group has enough standard and insufficient standard According to that, we make a plan to retrain both groups and fix the time for them to perfect themselves working skills - Developing a plan to train human resources, focusing on training on the spot, making plan to rotate the personnel, ensuring that each employee not only is professionally proficient but also improves the general understanding about banking - We should open regularly short term courses about productivity, available services for the employees It is because of the reason that professional capabilities of staff showing in the expert knowledge about banking services - In each fixed period, BIDV in North of Quang Binh should open tests, checking at each different section of the branch to evaluate again its staff’s capacity After that, it will send the result to assess the strengths, weakness for each employee so that they have awareness of improving their weakness At once, we should discover the good employee to gather the source of management officials, avoid being passive when we open more transaction offices or our staff is off or move to the other place - The promotion and arrange personnel together with training and retraining will help us promote all the capacities of each employee and have highly business effect for BIDV in North of Quang Binh Leaders need to understand level and capacity of their staff to make a sensible division between the official departments Our branch needs to examine and evaluate the working of each component Owing to that, we can rearrange or rotate our staff to the more suitable position, create Draft of Major Exercise – Ge MBA 01 V01 – Group good conditions for employees to promote their creativeness and selfresponsibility for their own decision, since then, we can appraise the capacity of our staff and assign suitable task for them - We need to implement planning effectively, develop our officers openly and democratically to create sourcing staff, intensify to foster political characteristic together with planning leaders, orienting the striving for planned ones 3.5.2 M a r k e t i n g solution 3.5.2.1 Building customer strategy In the guideline of BIDV system of Vietnam it is highlighted well that availability and development of customer are the existing and development of “Sharing opportunity – Cooperating successfully” Customer is the person both provide capital for the bank and use capital in the bank Therefore, studying about customer is the firstly important thing for enhancing effect of using capital at BIDV As well as other branches, BIDV in Quang Binh province has taken care of customer policy since it started doing business towards market trend Therefore, customers are treated equally; they are treated equally by many policies, including borrowing-customers and depositing-customers… However, because of the lack of borrowing capital comparing with the investing need of our economy as well as of the Government, State Bank, our policies are sometimes partially According to the real situation, our branch needs to deal with relationship with customers effectively It means that we have to make customer strategy to meet the urgent and long-strategic requirements This strategy includes these following contents: Firstly, classifying customers: Classifying customers is done with the aim that we can manage and exploit customer effectively: - Customers relating to the professional of capital mobilization, including Draft of Major Exercise – Ge MBA 01 V01 – Group + Customers are firms doing business in manufacturing, circulating and service… + Customers are administrative agencies, union organizations + Customers are population classes: When the economy grow, population classes will have income in the form of added currency These incomes are distributed in households in our society - Customers relating to the professional of lending: Lending is the important process in Commercial banks in general and in the branch of BIDV in North of Quang Ninh in particular It is nearly the process that produces income profit for activities of bank To get the high profit, the branch of BIDV in North of Quang Binh needs to implement lending subjects effectively It means the loans can be collected both principle and interest when there is due It is such a difficult problem for the bank because it has close relationship with the lending-customers To get profit, the branch of BIDV in North of Quang Binh has method to select customer when they want to borrow capital from the bank so that we can limit maximum the ethical risks of borrowers Secondly, establishing good and long lasting relationship with customers Establishing good and long lasting relationship with customers will help the bank: + Mastery of information relating to customers, evaluate quality of customers well, save inspecting and supervising costs + Attract capital to strengthen input and expand output in accordance with the requirements of customers + Set out strategies, business plan to working in each stage and in the tend of developing our services in future The benefits of establishing long-lasting relationship with customers will create the strong and benefit attachment for both the bank and customers The Draft of Major Exercise – Ge MBA 01 V01 – Group branch of BIDV in North of Quang Binh should have mechanisms and policies suitable to customers Thirdly, implementing policies to attract customers through encouraging physical interests + In current conditions, non-term deposits of economic organizations should also be paid immediately by the interest rate of non-term savings and bank gets the charge of service Until payment through branch is modernized, quality of services is improved, inflation is actually stable + Encouraging residential areas to increase the payment by check, through the deposit at the bank + Supplying enough liquidity at the request of customers +Focusing on managing, mobilizing the interest rate flexibly, striving to achieve the planned target growth + Focusing on exploiting the capital with high difference compared to the internal transfer of capital to increase income for the branch and improve overall performance of the branch + Diversifying the products of raising capital, the type of raising capital so that the customers have more choices, attracting the maximum idle capital in the population, in economic organizations as well About the market researching, BIDV in North of Quang Binh should concentrate in following problems: - Researching on competitors basing on comparing products, interest rates, the advertising activities and networks regularly These competitors include: Vietcombank, Vietinbank, Agribank, Sacombank in the same area According to that, we can determine the field that has the best competitive advantages and the worst disadvantages for BIDV in North of Quang Binh Basing on researching results, building actively and implementing business strategies in parallel with the competitions and not touching to the competitions standing behind our branch needs to capture market actively local areas (export-import activities, the foreign Draft of Major Exercise – Ge MBA 01 V01 – Group investment, remittances ) to develop correlative services Fourthly, expanding activity network: Development orientating of the system BIDV in North of Quang Binh is becoming retail bank, therefore expanding network is urgent, right from this time we have to ourselves an enough strong network But the opening of the network must conform to the scale, compatible with the financial ability, the ability of business, human resources and scale of operation At the present, BIDV in North of Quang Binh can: Establish new transaction offices in Hon La seaport economic zones following the project approved by mother BIDV to complete the network model At the same time, we can strengthen and upgrade of existing trading room, add gradually functional tasks and decentralize more reasonable for the transaction offices to promote the work of raising capital and developing retail banking services through a network of transaction points We should associate network development with improving the working efficiency, cost savings Fifthly, strengthening the propaganda ads: - Increasing to transfer information to majority population by leaflets introducing features of each service and product briefly easily understanding to help customers update, be consistent with the products and service that the Bank is providing Since then, customers can handle the method of using, the benefits of these products and services - BIDV in North of Quang Binh can campaign by legal entity and individual customer having relationship of deposit, loaning and using services of bank by its own staff The staff is person understands the nature and characteristics of products and services of bank and they are also dealing with customers directly so that they are able to have success in communicating, Draft of Major Exercise – Ge MBA 01 V01 – Group guiding, persuading customers rather than any other forms of advertising -Holding periodically customer conferences By this direct contacting, the BIDV in North of Quang Binh can learn more about the needs of customers and receive the appraisal about the manner of serving services, quality of products that our bank provides Since then, we can make a solution to overcome in order to serve customers better and improve brand of BIDV in North of Quang Binh - Paying attention to other policies in accordance, having preferential policies on interest rates, service charges Paying attention to developing new products to mobilize other capital, the utility services thank to modernization so that we can bring into play the advantage in competition 3.5.3 About the Central Bank for Investment and Development of Vietnam: - On the management of income and expenses: Because BIDV has not made distribution of income and cost for each activity, each customer, each cost incurring center, the analysis has just relatively reflected the income and expenses of each activity and has not reflected the entire related incurring cost, in which the capital and management costs are largest In the trend of developing into a bank of modern innovation and consistence with international practices, BIDV needs to research sharply, apply the income and costs allocating method to each business operation, each customer and each unit to reflect and evaluate exactly the results of individual business activities - On the capital operation: Appointing the expected targets (capital mobilization, quarterly credit surplus,…) must follow the type of currency to run balanced the available funds effectively and save the input costs This appointment needs a flexible adjust policy which does not pose any pressure on capital mobilization The bank also continues to allocate credit as well as finance projects effectively with other branches to enhance the scale of credit in the branch Draft of Major Exercise – Ge MBA 01 V01 – Group - On the liquidity management: completing regulations, the process of liquidity management and clearly defining responsibilities for the department of clue, the coordinating departments to ensure compliance and smooth operation - On operating capital internally: Keeping correcting and improving the management of capital centralization, transfer pricing mechanism, lending mechanism for bank affiliate which is relevant to the reality and the TA2 model to operating capital flexibly and efficiently + Continuing to allocate credit as well as finance projects effectively with other branches to enhance the scale of credit in the branch + Undertaking TA2 of the branch has faced many troubles due to small scale Hence, the branch suggests the Central bank having supporting plan From the theoretical basis of the chapter and the current situations of business environment of the north of Quang Binh branch of Bank for investment and development of Vietnam, and the need to build up a business strategy for the branch, our group has launched the comprehensive solutions which are from policy mechanism to support in order to enhance business performance in North Quang Binh Branch in the near future Besides, in order to affirm to complete these goals, in addition to the efforts of the branch itself, there must be the support, coordination of superior banking, local authorities and other ministries and functional industries CONCLUSION Draft of Major Exercise – Ge MBA 01 V01 – Group The system of commercial banks of Vietnam has been having a constant growth both in quantity and quality, the competitive process is fiercely taking place among commercial banks Specifically, in the context of integration and globalization, the commercial banks of Vietnam are having more opportunities as well as facing many difficulties and challenges For the economy as a whole and banking system in particular, the period 2010 to 2015 will see changes in quality of competition environmental: it is the shift from domestic competition to international competition Pressure of international economic integration does not allow businesses to take step negligently and deliberately The North of Quang Binh Branch of BIDV is not exceptional In the trend of new development and integration the Branch is required to have timely adjustments to stand firmly and develop within a fiercely competitive environment Therefore, the Branch needs to build up a real strength and a proper orientation to integrate the general environment Based on the analysis of strengths - weaknesses, opportunities - threats of the North of Quang Binh Branch of BIDV, the project has made four strategic business plans for the Branch: Market Development, Leading low-cost, Marketing, Organization restructure and Human resources Development To implement the strategies, the Branch should focus on such solutions: A solution to human resource development, distribution network, marketing, technology, organization restructure, organization culture defining and material base building However, the business environment always changes, so the North of Quang Binh Branch of BIDV needs regularly make inspection and evaluation of the results of solutions implementation for appropriate adjustments Beside the solutions above, the project gives some recommendations for the State Bank, the central Bank for investment and development of Vietnam on mechanisms and policies to provide favorable conditions for the activities of the banking sector in general and so the North of Quang Binh Branch of BIDV in particular during the next time Draft of Major Exercise – Ge MBA 01 V01 – Group BIBLIOGRAPHY Diep Nguyen Thi Lan Dr and Nam Pham Van (M.A) (2006), Business strategies and policies, Labor-Society Publisher – Hochiminh City Bao Nguyen Ngoc M.A, Evaluation on the competition capacity of Vietnam commercial banks ( Banking Science and Education Magazine) Hung Nguyen Le (M.A), 2006, Success and challenges of Vietnam commercial Banks in the integration process (Banking Science and Education Magazine) Hien Nguyen Tho 2006 Solutions for strengthen the competitiveness of Vietnam commercial banking system (Banking Magazine) Hai Dang Van 2007 Enhancing the staff quality of Vietnam commercial Banks (Market – finance - Currency Magazine) Report on business activities and finalization of the North of Quang Binh Branch of bank for Investment and Development of Vietnam in 2006, 2007, 2008 Annual Report of Vietcombank, Vietinbank, Agribank Report on economy - society and Statistical yearbook 2006 to 2009, Quang Binh Province Decision 112/2006/QD-TT dated on May, th 2006 of Prime Minister of Vietnam on approving proposals to develop the banking industry in Vietnam by 2010 and to 2020 10 The document of the ninth conference on the X Central Executive Committee Communist Party of Vietnam (2009) 11 - Banking magazine in 2006, 2007, 2008, 2009 12- Website: www.vietcombank.com vn; www.bidv.com.vn ; www.vietinb ank.com.vn ; www.agribank.com.vn; www.asset.com and the internal website of BIDV Draft of Major Exercise – Ge MBA 01 V01 – Group ... (Agribank) - Joint Stock Commercial bank for Foreign Trade of Vietnam (Vietcombank) Draft of Major Exercise – Ge MBA 01 V01 – Group 2.1.3 Products and Services BIDV BQB are making efforts to... customers, help to distinguish between organizations and organizations It Draft of Major Exercise – Ge MBA 01 V01 – Group describes the values and priorities of organization, identify general developing... existing products on the basis of increasing marketing activities Draft of Major Exercise – Ge MBA 01 V01 – Group or change existing market strategy but still not change any products There are