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GRADUATION ASSIGNMENT BUILDING UP BUSINESS STRATEGY OF FINANCIAL SERVICE OF AGRIBANK NGHE AN WITHIN THE PERIOD OF 2011 -2020 Tran Thi Viet Anh Nguyen Kim Khanh Nguyen Thac Chinh Vi Van Quynh HANOI - 2011 Class GaMBA01.V0110 – Group No.8 TABLE OF CONTENTS COVER PAGE TABLE OF CONTENTS LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES INTRODUCTION CHAPTER I: THEORETICAL BACKGROUND TO FORMING CORPORATE BUSINESS STRATEGY 10 1.1 Concept and role of business strategy 10 1.1.1 Concept of business strategy 10 1.1.2 Role of business strategy 10 1.1.3 Strategic system in business 11 1.2 Steps to build-up business strategy 11 1.2.1 Mission and objectives of the organization 11 1.2.2 Analysis of external environment 12 1.2.2.1 Economic factors 12 1.2.2.2 Cultural-Social factors 13 1.2.2.3 Political-Legal factors 13 1.2.2.4 Technical factors 13 1.2.2.5 Natural factors 13 1.2.3 Analysis of internal factors 14 1.2.3.1 Infrastructure 14 1.2.3.2 Finance 14 1.2.3.3 Human Resource 14 1.2.3.4 Marketing 14 1.2.4 Selecting strategy 15 1.3 Techniques to analysize strategy 16 1.3.1 SWOT matrix 16 1.3.2 IE matrix 17 1.3.2.1 EFE matrix (External Factor Evaluation Matrix)) 17 1.3.2.1 Competitive Profile Matrix 18 1.3.2.1 IFE matrix (Internal Factor Evaluation Matrix) 18 1.3.2.1 IE matrix 19 CHAPTER II: ANALYSIS OF THE BASIS FOR BUILDING UP STRATEGY FOR AGRIBANK NGHE AN 21 2.1 Overview of Agribank Nghe An 21 2.1.1 History of Establishment and Development 21 2.1.2 Organizational Structure 23 2.1.2.1 Vertical Organizational Structure 23 2.1.2.2 Horizontal Organizational Structure 24 2.1.3 Mission and Vision, Core Value, Strategic objective 25 2.1.3.1 Mission and Vision 25 2.1.3.2 Core Value 25 2.1.3.3 Strategic objective 25 2.2 Analysis of Agribank Nghe An's business environment 25 2.2 External environment (PEST Model) 25 2.2.1.1 Political-legal factors (P) 2.2.1.2 Economic factors (E) 26 26 2.2.1.3 Cultural - Social factors (S) 26 2.2.1.4 Technical factors (T) 26 2.2.1.5 Natural factors 27 2.2.2 Analysis of sector environment (5 Forces Model of Michael Porter) 27 2.2.2.1 Competitive rivalry within an industry 28 2.2.2.2 Threat of potential rivals 28 2.2.2.3 Bargaining Power of Customers 28 2.2.2.4 Threat of Substitute Products 29 2.2.2.5 Bargaining Power of Suppliers 30 2.3 Analysis of Agribank Nghe An's internal environment 31 2.3.1 Assessment of infrastructure and Technique 31 2.3.2 Assessment of financial condition 32 2.3.2.1 Capital operation 32 2.3.2.2 Creadit operation 34 2.3.2.3 Credit operation 36 2.3.2.4 Other business activities 36 2.3.2.5 Business performance 38 2.3.3 Assessment of Human Resource 39 2.3.4 Assessment of Marketing 40 2.4 Analysis of SWOT matrix 41 2.4.1 Strengths, Weaknesses, Opportunities and Threats of the organization 41 2.4.2 SWOT Matrix of the organization 45 CHAPTER III: RECOMMENDATION OF SOME STRATEGIES AND SOLUTIONS FOR AGRIBANK NGHE AN 46 3.1 Development orientation of Agribank Nghe An in the future 46 3.1.1 Market prospect 46 3.1.2 Strategic objectives 47 47 3.1.2.2 Business objectives of Agribank Nghe An in 2015 47 3.2 Selecting financial service strategy for the period of 2011-2020 49 3.2.1 Selecting general strategic options of the organization from SWOT matrix 49 3.2.1.1 Distribution channel development strategy 49 3.2.1.2 Product development strategy 49 3.2.1.3 Key item focusing strategy 49 3.2.1.4Financial condition improvement strategy 49 3.2.2 Selecting financial services strategy 49 3.2.2.1 Integrated strategy of cost leader and difference 49 3.2.2.2 Concentrated strategy 52 3.3 Strategic solution 54 3.3.1 Financial solution 54 3.3.1.1 Charter capital increase 54 3.3.1.2 Improvement of credit-debit management 54 3.3.1.3 Processing bad-debts, strengthening financial condition 3.3.1.4 Improving credit operation 55 55 3.3.2 Human resource solution 56 3.3.2.1 Changing conception of modern bank 56 3.3.2.2 Improving qualification of staff 56 3.3.2.3 Changing customer service styles 57 3.3.2.4 Organization solution 57 3.3.3 Technical solution 3.3.3.1 Finishing IPCAS2 application 58 58 3.3.3.2 Improving safety and stabilizing CTTT system 58 3.3.3.3 Improving automaticity of processing system 58 3.3.4 Solution to improve management of the leaders 58 3.3.4.1 As for the branch 58 3.3.4.2 As for the Head Office 58 3.3.4.3 Using service development fund 58 3.3.5 Competitive competency solution 59 3.3.5.1 Promoting system network advantage 59 3.3.5.2 Diversifying traditional products and developing new products 59 3.3.5.3 Improving marketing and advertisement 60 3.3.6 Customer solution 61 3.3.6.1 Updating customer information 61 3.3.6.2 Updating new customer information 61 3.3.6.3 Opening payment account, advertising products and issuing card 62 CONCLUSION REFERENCE 63 64 LIST OF ABBREVIATIONS Order 10 Content Information Techniqur Board of Managers State Bank Agricultural Bank Rural Development Bank for Agriculture and Rural Development Bank for Agriculture and Rural Development Commercial Bank Joint Stock Commercial Bank Service and product Abbreviations IT HĐQT NHNN NHNo PTNT Agribank NHNo & PTNT NHTM NHTMCP SPDV LIST OF TABLES Order Table 2.1: Content Capital mobilizing results of Agribank Nghe An in the period Table 2.2: of 2008-2010 Lending operation performance of Agribank Nghe An in the Table 2.3: period of 2008-2010 Credit operation of Agribank Nghe An in the period of 2008- Table 2.4: 2010 Business Performance in the period of 2008-2010 Page LIST OF FIGURES Order Figure 1.1: Figure 1.2: Content SWTO matrix IE matrix Page Figure 2.1: Figure 2.2: Figure 2.3: Organizational structure of Agribank Nghệ An PEST model M.Porter’s Five Forces INTRODUCTION General context and role of the research topic Starting from the actual operation of Vietnam bank for Agriculture and Rural Development, finance showed many challenges before the competitive demands to integrate into… AGRIBANK is the top commercial bank in Vietnam and in the course of the business has also built up many specific development strategies Beside the general difficulties of economic-social environment, there are many reasons that the bank governance, the management of business operations also have many problems need to be researched, and solved in order to adjust strategies and provide the solutions of safe and effective development The scope of the study is business, the strategic management of Nghe An AGRIBANK in financial services in recent years and then proposing strategies in the next years The selected topic called: “Building up business strategies of financial service products of Vietnam bank for Agriculture and rural development from 20112020.” Purpose and significance of the study The research purpose of the topic is to apply the knowledge gained and some experience in strategic management subject, to analyze and evaluate the current business development strategies of branches of Nghe An AGRIBANK in financial service business On that basis, to give some ideas to improve the strategic management of the bank in the next time Methodology In building financial service business strategies of Nge An AGRIBANK, there are the data collection method as follows: * The secondary data collection Using The table methodology: Analyzing information for this study came from a lot of sources including annual reports of Nghe An AGRIBANK and data of Nghe An AGRIBANK, articles on magazines or newspapers, etc Besides, the study group also reviews general directions of Vietnam AGRIBANK up to 2020 The secondary data is identified by the annual statistical methods and analyzing methods of AGRIBANK: The internal data of the bank includes: - The financial reports - Reports of bank business results - The research reports of the bank + The external data of the bank includes: - State bank information - The public media (television, newspapers, internet) - Website: http://www.agribank.com.vn - Website: http://www.sbv.gov.vn * The primary data collection - The method of collecting opinions through group discussions Group discussion will be conducted with groups of members Each group has times of discussion within a week - Interviewing method: The author of this topic directly interviewed some key officials and employees as well as had direct discussion with the leaders of Nghe An Agribank about the current situation and the development orientation in the next years Theoretical models such as PEST analysis, Porter, SWOT The structure of the study includes three chapters: Chapter 1: THEORETICAL BACKGROUND TO FORMING CORPORATE BUSINESS STRATEGY Chapter 2: ANALYSIS OF THE BASIS FOR BUILDING UP STRATEGY FOR AGRIBANK NGHE AN Chapter 3: RECOMMENDATION OF SOME STRATEGIES AND SOLUTIONS FOR AGRIBANK NGHE AN CHAPTER I: THEORETICAL BACKGROUND TO FORMING CORPORATE BUSINESS STRATEGY 1.1 Concept and role of business strategy 1.1.1 Concept of business strategy the best quality products into the market, focus on developing strong products of retail banking services such as international credit card, domestic credit, payment services, savings  Improve capacity of operation management Maintain the guarantee for Nghe An Agribank in any situation and enhance competitiveness Ensure being rated I according to criteria of evaluation Agribank Vietnam  Detailed Objectives:  Set goal to reach credit recovery of at least 20% per year: The idea of business is to take traditional products (credit and grant funding) as the foundation and basis in the development of Agribank Combining traditional products and new product is to create firm steps for Agribank Nghe An, consider this as the basis for development: The traditional services products should be improved for higher quality supplement products; non-traditional banking service have been added new products with, high quality and utility, in accordance with a general trend of modern banking • Change the perception of banking activities in the integration trend: Change the entire system awareness about service products, determine the importance of service products in the operation of modern banking, ensure competition and integration • Objectives of technology systems: Build up and deploy a modern information technology system, with high capabilities of processing as a major bank in the province • Objectives of product differentiation: Improve the differences in each service products to attract customers with distinct competitive advantage, by using the advantage of technology to provide the products with different high quality, then create absolute competitive advantage Superior quality, quantity service products than other domestic banks, leading in supplying and deploying of modern service products 3.2 Selecting financial service strategy for the period of 2011-2020 3.2.1 Selecting general strategic options of the organization from SWOT matrix 3.2.1.1 Distribution channel development strategy: - Expand distribution channels through transaction points and modern technology to attract new customers - Exploit the advantage of extensive network of branches across the country 3.2.1.2 Product development strategy: - Diversify service products, gradually develop retail banking business - Increase the percentage of income from services, develop high profitable service products - Maintain credibility by means of improving the quality of service products 3.2.1.3 Key item focusing strategy: - Concentrating on developing the small and medium sized companies in the agricultural sector - Focus on investing in market segments with high efficiency - Make credit entrustment service for the banks for policy in disadvantaged areas 3.2.1.4Financial condition improvement strategy - Research privatization, issue shares and bonds - Manage capital assets, rationalize interest rates and service charges - Manage capital resources to reduce interest rates 3.2.2 Selecting financial services strategy 3.2.2.1 Integrated strategy of cost leader and difference New services development strategy The purpose of this strategy is to consolidate and to create the competitive position of the banks, making customers feel comfortable and secure when doing transactions at Agribank Nghe An, and above all is that the needs the customer are met Facing the fierce competition of the banks and the immediate challenges of the integration process, the bank have to make a difference in the service products which is able to develop new advanced products that can create a competitive position for the bank in the market Qualifications of the staff team also contribute greatly in research and development of new products in practical conditions in Vietnam The bank's new services need to be further improved to make it stand out, while the bank has to research to launch other new service products to bring many benefits to customers  Carry out the loan, including payments, this is a relatively new business for Vietnamese market and there are few banks perform this operation because of high risk  further study to extend credit into other sectors such as electricity, postal services because this is profitable and efficient business  Besides the traditional forms of lending as normal lending, discount loan, rediscount of valuable papers, loan combined financing and loan for consumption, complete other loan forms consistent with the objective requirements of the current economy as: - Providing loans financing imports and exports with pledging in the import and export shipments: This method is quite risky but if the bank increases the appraisal of business plan, strict control over lending process, this would be a form of credit financing which is beneficial for businesses, especially small and medium enterprises that have limited capital - Loans and overdraft on deposit accounts, allow customers to use excess balances on deposit with a maximum limit which has been predetermined to support demands of the customer's capital shortage in a short time This method has been implemented in some large joint stock banks and is preferred by customers - Supply credit in the form of credit card: the same as overdraft loans, but being applied on credit card accounts for individuals Differentiation strategy focusing on the certain market: Differentiation strategy concentrating on segmentation strategy is to create services which is considered a unique product for customers in its segment to meet customer's satisfaction goals in ways that other competitors can not Target clients of Agribank Nghe An are the small and medium enterprises in the field of agriculture - rural areas, farmers that have the spare savings, so that the bank needs to create a differentiation in the customer policies On the other hand, the bank also needs to make a difference in customer services, most banks have the same service products, similar interest rates are not much different so that banks compete on customer service and other services attached To create its unique point, the bank should equip the staff with knowledge, uniform, gestures that show the identity of the bank Provide services and other utility for customers such as free transaction account open , free advice, offering low or even free security payment for close customers, ensuring transferring order, doing payment as request Quick response strategy: This is the strategy to detect and respond to customer needs quickly, to create a competitive position - Home customer services is also a quick response of the bank: The concept that customers are asking for help…when they transaction is wrong and need to be crossed out The bank has to offer a good serving behavior for the customers For example: the bank need to the transaction immediately without any fee when customers open a deposit account of 100 million or more - The bank should be willing to take and respond to any questions of the customers as well as the customers can connect directly to the customer services or through email… The internal control department have to contact the relevant department to process information and take measures to resolve the situation 3.2.2.2 Concentrated strategy Current Market Maintaining Strategy: With this strategy, the bank will focus on human resources and material resources existing in the current market; exploit the strengths of the bank to take advantage these opportunities The bank will make flexible policy with good customer services and simple procedure to access target potential customers and make strong relation  Improving fund raising: - Implement capital raising program by open deposit funding forms with different terms, interest rate ladder, progressive interest on deposits balance - Organize payment services with high speed, low cost, direct deposits acceptance and payments at home, whereas the bank is also willing to facilitate lending when customers need - Keep Searching for funding, the trust of the government, economic organizations for rural development projects, small and medium enterprises supporting projects,  Improving the quality of credit services and improve customers’ satisfaction: - Offering much credit services to meet different demand form the customers - Take advantage of clear credit policy and staff qualification, improve the procedure to cut the transaction time and create more utility for the customers - Regular evaluating, sorting customers following the criteria of the bank, in order to create suitable policy for each type of customer as well as improve the service quality  Diversification and improvement of service quality: - The purpose of adding value to customers using bank services - Besides lending, development of non-credit services to meet customer needs as well as develop full credit packages such as domestic and international payment services , foreign currency exchange, cash services, investment advisory, ATM card services Market development strategy: This is the strategy that the bank use their current products and services to enter a new market, in order to expand market share, sales and access potential customers With its strength of Rural Development Agribank network, Agribank Nghe An has much opportunity to develop customers in remote mountainous districts through the agent and transaction points  Operation network development: - In the next years, the bank needs to establish some level – branch, transaction points to build up reputation and create conditions for professional development Agribank Nghe An has a big advantage compared to other commercial banks about operation network, the bank can use Agribank Vietnam’s system like a payment agent With a network stretching across the country, from the central cities to the island and remote districts, this would support the transfer payment services of the bank - Not only depending on the system of Agribank Vietnam, Agribanj Nghe An needs to expand relations with other commercial banks to carry out co-financing projects, trust lending services, e-payments such as: ATM, credit card, debit card  Promote marketing activities: - Product: improve traditional services, shorten the transaction process, offer benefits to customers - Interest and fees: offer lists of tariff, interest rate corresponding to each target customer, research on tariffs of other banks to have policies to deal with - Location: select locations that are convenient to transaction and customers such as headquarters in downtown area, parking for customers, etc - Promotion: focus on advertising through mass media such as newspapers, radio, TV The cost of this kind of advertising may be greater but more efficient Besides, it is possible to introduce services of banks to customers through many ways such as sending letters, brochures, websites - Style of serving and quality are also “non ad” factors which are highly effective, not only helping to keep old customers but also attracting new customers, especially in such competitive conditions as today 3.3 Strategic solutions 3.3.1 Financial solutions 3.3.1.1 Raise the task of debit and credit asset administration - Improve and promote the task of statistical report accurately - Construct and apply the management model of debit-credit asset in business activities - Coordinate comprehensively between credit risk management division and liquidity risk management in debit and credit administration 3.3.1.2 Process bad debt According to international rule, debt balance of commercial bank is divided into types: good debt, attentive debt, under standard debt, bad debt, debt of capital loss; bad debt includes three types: debt of under standard, bad debt and debt with loss of capital To process bad debt we must implement the following solutions: - Apply comprehensively methods to process bad debt and prevent, limit newly arisen bad debt based on connecting with raising credit quality and banking business efefct; evaluate bad debt especially stagnant debt; define duty of each level, each individual, each unit in arisen debt as well as prevent and process bad debt; create transparent and publicized information of bad debt and processing bad debt of the bank; there must be constant monitoring of Viet Nam Agribank + Positively monitor, withdraw overdue debts, debts to be processed by standby risk fund, interest … + With regard to bad debt which is difficult to withdraw, transfer or sell such loans for the companies of debt purchasing and asset exploiting company to reduce time of bad debt and mortgage asset management then focus the whole time on business activities 3.3.1.3 Improve credit task - Construct, check list of customers to issue and manage risk in the best way - Construct staffs with capacity to analyze, strategiv vision in trading development - Apply the task of marking and classifying customers in credit issuance - Raise quality of appraisal of re-appraisal office - Continue developing rural credit market - Study models of analysis and evaluation of risk in credit activities 3.3.2 Solution of human resource 3.3.2.1 Change viewpoint, realization on modern banking There must be the change of awareness of cadres on banking; this is the decisive condition which is the basis for developing new products and services then cannot develop products effectively Change viewpoint on the whole system of Agribank with big quantity of employees,most of rural areas have difficult condition that requires to have methods to be implemented comprehensively in a long time Implementing this method the bank needs to organize training class on products and services to the whole cadres on modern banking as follows:  Organize training class to understand deeply system of modern banking products and serices firstly for managing cadres in branches; introduce current banking products and services; well realize the rolw of products and services for trading banking in currently violent competitive environment  Expand the task of disseminating, nurturing awareness to the whole employees; organzie movement and encouragement of cadres to understand products and services Change awareness on banking activities: the basic and important problem which is suitable to the natural trend of banking activities is the model of modern bank; in term of banking products and services, we must define banking activities in the new trend as the activities to create income from service cost 3.3.2.2 Training to raise qualification of cadres on products and services  Train on professional task together with products and serices because professional task and products as well as services have the same contents but different from approach; the targets of such solutions are to make cadres to approacj products and services to replace the approach of traditional professional skills  Training class must supplement the contents of common knowledge in term of products, services, hiring external lecturer then use teachers in the sector to join in teaching  Timely organize training class to the whole system for new declared products and services 3.3.2.3 Change style, customers' services  Change transactional style: serving style according to the principle in which the bank will bring products and services to customers; assign cadres to be in charge of consulting customers of banking products and services then it can attract customers  Construct and promulgae process of transaction: Nghe An Agribank must construct regulations of transactional process of transactor to reach the target of diversifying transaction of employees then agree on behaviors in transacting with customers' services 3.3.2.4 Organization  Supplement professional cadres of products and services: at the first and second type branch there is also Product and service marketing office then we must supplement cadres of marketing, products and services at the third type branch and transactional office then assign cadres to undertake the task of new product marketing to customers because such units are the direct place to transact with customers  Improve organizational model: change organizational model at the branch according to the orientation in which the branch has multifunctional trading of products and services products and services; then in short term we must experiment some branches to improve the model and multiply when having enough conditions  Labor arrangement: based on capacity to apply informatics technology, improve organizational model, arrangement of labor in suitable way to meet demand of integration, competition in violent way 3.3.3 Solution of technology 3.3.3.1 Improve system of IPCAS2: develop programs to apply exploiting and processing information of customers, apply management of products and services on PCAS; upgrade transmission line to ensure transaction and circulation 3.3.3.2 Raise capacity of safety, stability of informatics technology: system of products and services are developed based on informatics technology and inheriting system of PCAS Safety and stability will have decisive significance for advertisement, attraction and maintenance of customers; projects to raise safety and stability of the system must be done first 3.3.3.3 Raise automatic capacity of processing system: reality on processing transaction and total transaction quantity on the annually increased system of informatics technology; increase of transaction will increase workload to be processed; however, increase of workload does not mean to increase labor but by automatic capacity by application of computer system 3.3.4 Solutions to raise management capacity 3.3.4.1 With regard to the third type branch: consider new products and services as the duty of director of the branch; director will bear duty in front of general director in launching new products and services in the unit 3.3.4.2 With regard to the main institution: construct suitable mechanism for current regulations at the same time ncourage branches to develop products and services such as grant norms of income apart from credit for the branch; construct financial insitution, emulation, general management of products and services and other mechanism to encourage branches to develop products and services 3.3.5 Solutions to raise competitiveness 3.3.5.1 Promote advantage of network Large network is the big advantage of Agribank; however large network can be promoted in the trend of competition, integration and development of informatics technology or not there must be the following solutions: - Construct principles of management and cost sharing: define duty and right in products and services transaction in the branch; Agribank will construct regulations of management and cost sharing principle, define duty of the branch to join in processing inter-branches product and service transaction to raise profit of modernized network nationwide - Construct process, management and development of products and services: construct process , mechanism to launch products and services in the most consistently way from the main office to the branch, transactional office; to launch the new products and services within the whole system - Finhish constructing Contact center system and support division of transaction and customers: construct and establish the center to process problems of products and services, manage and process related transaction of the network as well as abnormal transaction and complaints from customers 3.3.5.2 Diversify traditional and new products Constantly raise and improve product and service quality, expand channel of distribution and development of the new products; customers have many choice for products and serices; many different banks will be the problem for Agribank to upgrade system of products and services - Establish market study office, product development office to launch new products - Diversify new products based on traditional products - Develop new products based on available advantages of Agribank 3.3.5.3 Increase marketing and brand name advertisement Advertisement of products and services is the activities to make products and services attractive to customers and market; the task of marketing, advertisement of products and services not only orient to new products and services but also existing products: - Improve and well exploit system of customer' information on IPCAS to construct strategy, development plan of general marketing - Innovate marketing task and advertisement of products to customers - Study market, economic distinction of each region to have suitable marketing forms - Make use of advantages of Nghe An Agribank to have plentiful cadres to advertise products and services of Agribank…this is one of channels with low cost to bring high effect - Focus on introducing products and serices with the clear contents and images to encourage customers to use banking products and services - Implement direct marketing (letter, leaflets to customers, explanation on Broadcasting, conferences… …), increase activities of support, charity, promotion of new products - Increase advertising brand name of Agribank with a friendly and close image with customers with community quality, high safety and effective operation 3.3.6 Solution of customers Solution to attract customers, occupy marekt is one importan solution to be cared; the importance of attracting customers, occupying market is clear, the problem here is the capacity of Agribank to implement it  Nghe An province has population of more than million people  Market of Agribank is large nationwide  Capacity of informatics technology is good enough to receive a big quantity of customers (contain 100 million customers)  Brand name of Agribank has high prestige then it is cared by many customers Comprehensive solutions: 3.3.6.1 Supplement information of customers: supplement lacked information of customers such as code, address, mobile phone, email, tax code…on system of IPCAS to implement strategy of customers, marketing, market segmentation to develop and provide suitable products; collect information of customers into IPCAS to manage and have constant method to attract customers via many forms such as sending letter, leaflets, … 3.3.6.2 Update information of new customers: the branch will actively approach with customers to collect basic information to install into IPCAS as the basis to construct plan of development and provision of products and services; grant concrete tasks to related cadres to implement this policy; with regard to enterprise customers it must implement 100%, with regard to individual customers it must be done with priority, with regard to customers closed to the bank to have payment demand of power, water, telecom, tax …to approach 3.3.6.3 Open payment acocunt, advertise products and issue card: when opening accounts for customers, the branch must be active to approach customres to register using products and issuing cards to customers; assign the office of new product study and development to improve the model of registering product using in Agribank syste; on the other hand the branch must assign credit cadre to advertise products and services to customers CONCLUSION Economic integration is the indispensable way of Vietnam to develop We have become members of such great organizations and associations as WTO, APEC, ASEM, etc Integration will provide us chances well as challenges The banking sector in general and Agribank in particular can not avoid that trend With low point of departure, experiencing the reconstruction, dispite some success, in general, the basic competitive factors are still limited and have not meet the requirement of the world modern banking sector In the indispensable competitive period, in order to compete well in domestic market then expand to foereign market, Agibank Nghe An must make great afford to improve financial condition, magemenent and human resource quality as well as to apply modern technique to develop, diversify service and product and develop it brandname Due to some limitation, our group’s study just recommend some general solutionstaff to improve business strategy of Agribank’s service and product based on promoting strengths, limiting weaknesses, taking advantage of opportunities and reducing challenges in comparision with other Banks to consolidate competitive status in the market Despite the effort to finish our group’s assignment, it is clear that this assignment can not avoid limitations Therefore, we would like to receive usedful and constructive ideas and commentation of teachers and all the readers to improve it Thank you very much REFERENCE Vietnamese Vice-Professor & Dr Ngo Kim Thanh, Vice-Professor & Dr Le Van Tam (2009), Strategic Management, National Economic Publisher GRIGGS University, Strategic Management Textbook Michael E Porter: Competition Strategy Scientific and Technical Publishing House Hanoi 1996 Website: http://www.agribank.com.vn Website: http://www.sbv.gov.vn English Fred R David (2011), Concepts of Strategic Management - Thirteenth Edition, Integra Sofware Services Ltd, USA ... financial products and services of Nghe An Agribank Along with five other banks as Vietcombank, Incombank, Eximbank, BIDV and Maritime Bank, Agribank has upgraded the technology of information processing... strategic administration: Vietcombank and BIDV care for their own strategies; Vietinbank and Agribank cares with average level (8) Investment in personnel: Vietcombank and BIDV are the constant... network, customers then Agribank competes directly with Vietcombank, Vietinbank, BIDV Agribank Competitive factor Importance Viecombank Impor Classi level Impor Classi tance fication Classi fication