Build business strategy in the period of 2011-2015 for Military Commercial Joint Stock Bank- Dien Bien Phu Branch

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSSINESS ADMINISTRATION PROGRAMS CAPSTONE PROJECT REPORT “Build business strategy in the period of 2011-2015 for Military Commercial Joint Stock Bank - Dien Bien Phu Branch” Group Number: 01 Nguyen Ngoc An Do Thi Ha Hoang Thi Thu Hien Nguyen Minh Hung Pham Thi Huong HA NOI 2011 COMMITMENT We here by commit: The capstone‟s content is our actual research, which has been implemented on the basis of theoretical research, real situation of the bank Data and figures of the capstone are true Given strategies and solutions start from our practice and experience Once again, we confirm the truthfulness of the above commitment! i ACKNOWLEDGEMENT We faithfully thank all teachers of the program In order to complete this graduate program and capstone, we have received wholehearted and enthusiastic guidance, assistance and criticisms of all teachers Thank the Management Bank of Military Commercial Joint Stock Bank, Dien Bien Phu Branch and colleagues who have wholeheartedly exchanged views, offered suggestions and provided data and figure ii TABLE OF CONTENTS CONTENTS Page Commitment i Acknowledgement ii Table of content iii List of tables and figures vi List of appendices viii List of abbreviations ix INTRODUCTION CHAPTER 1: GENERAL THEORETICAL FOUNDATIONS OF BUILDING BUSINESS STRATEGY 1.1 Theories of strategy and strategic management 1.1.1 Concept of strategy 1.1.2 Bases of strategy 1.1.3 Basic steps of strategic management 1.1.3.1 Stage of planning strategy 1.1.3.2 Stage of implementing and inspecting strategy 10 12 1.2 Analysis of environmental factors 1.2.1 Analysis of macro environment – PEST Model 12 1.2.1.1.Politics 13 1.2.1.2 Economics 14 1.2.1.3 Socioculture 14 1.2.1.4 Technology 15 iii 1.2.1.5 Integration 15 1.2.2 Analysis of the environment of sectors - Micheal Porter‟s Five 16 Forces Model 1.2.2.1 Competitive pressures from the suppliers 17 1.2.2.2 Competitive pressures from customers 17 1.2.2.3 Competitive pressures from potential competitors 18 1.2.2.4 Competitive pressures from substitute products 18 1.2.2.5 Competitive pressures in the internal 18 1.2.3 Analysis of the internal environment 18 1.3 Establishment of SWOT matrix and selection of business strategy 20 CHAPTER 2: ANALYSIS OF ENVIRONMENT FACTOR AND 24 SELECTION OF BUSINESS STRATEGY FOR MB DIEN BIEN PHU BRANCH 2.1 Overview about MB and MB Dien Bien Phu Branch 24 2.1.1 Overview about MB 24 2.1.2 Overview about MB Dien Bien Phu branch 27 34 2.2 Analysis of environmental factors 2.2.1 Analysis of external factors 34 2.2.1.1 Analysis of macro environment according to PEST 39 2.2.1.2 39 model Analysis of environment of the sector according to model of M Porter 2.2.2 Analysis of internal factors of MB Dien Bien Phu 49 2.2.2.1 Primary operations 49 2.2.2.2 Supporting activities 57 2.2.2.3 Comparison correlation between MB Dien Bien Phu and 61 iv other bank 2.3 Establishment of SWOT matrix and selection of business strategy 66 CHAPTER 72 3: SOLUTIONS FOR IMPLEMENTATION OF BUSINESS STATEGY OF MB DIEN BIEN PHU BRANCH BY 2015 3.1 Business goals of MB Dien Bien Phu by 2015 72 3.1.1 The common goals 72 3.1.2 Specific goals 72 74 3.2 Strategy implementation solutions 3.2.1 Organization of network and structure 74 3.2.2 Build up corporate culture 74 3.2.3 Human resource development solution 75 3.2.4 Marketing Solution 76 3.2.5 Information Technology Solution 77 3.2.6 Service and products solution 78 3.2.7 Mobilization and lending solution 78 3.2.8 Risk management solution 79 Recommendation: 81 Conclusion 83 References 84 Appendix 86 v LIST OF TABLES, FIGURES No Name of tables, figures Page Figure 1.1 Simulation of military strategy Figure 1.2 Simulation of business strategy Figure 1.3 The strategic management process Figure 1.4 The model of the working steps in the strategic planning stage 10 The model of the working steps in the strategic implement 11 Figure 1.5 stage Figure 1.6 The working steps in the strategic assessment stage 12 Figure 1.7 The model of competitive forces 16 Figure 1.8 The diagram of SWOT matrix 20 Figure 2.1 The organization and operation structures of MB Bank 25 Table 2.2 The basic targets of MB Bank in the period (2008-2010) 26 Figure 2.3 The organization structure of MB Đien Bien Phu 28 Table 2.4 The business results of MB Đien Bien Phu 31 Table 2.5 The GDP growth speed and inflation of Vietnam 35 The socio-economic targets in the first months of 2011 36 Table 2.6 compared to the same period of 2010 Table 2.7 The matrix of external elements EFE 48 Table 2.8 The structure of mobilized capital of MB Dien Bien Phu 50 Table 2.9 The lending situation in MB Dien Bien Phu 52 Table 2.10 Structure of lending outstanding MB Điện Biờn Phủ 53 vi Table 2.11 Table 2.12 IFE matrix of MB Dien Bien Phu 60 The table comparing MB Dien Bien Phu with some 61 competitors in the sector Table 2.13 The table comparing MB Dien Bien Phu with some 63 competitors in the sector ( no credit) Table 2.14 Matrix SWOT 66 Table 2.15 QSPM Matrix of MB Dien Bien Phu 70 Table 3.1 The growth objectives of MB Dien Bien Phu ( 2011 – 2015) 72 vii LIST OF APPENDICES No Name of appendices 01 The customer survey questionnaires 86 02 The list of VIP customers of MB in general and Dien Bien Phu Branch 88 viii Page LIST OF ABBREVIATIONS No Abbreviations Full name MB Military Commercial Joint Stock Bank ASEAN Association of Southeast Asian Nations ACB Asia Commercial Joint-Stock Bank CBNV Staff CNTT Information Technology GDP Gross Domestic Product HSBC Hong Kong and Shanghai Bank IMF International Monetary Fund NHNN State Bank of Vietnam 10 NHTM Commercial Bank 11 R&D Research & Development 12 SACOMBANK Saigon Thuong Tin Commercial Joint Stock Bank 13 TECHCOMBANK Vietnam Technological and Commercial Joint- stock Bank 14 TNHH Limited Liability 15 USD United States Dollar 16 WTO World Trade Organization ix ... characteristics of building business strategy in the field of banking business - Build business strategy for MB Dien Bien Phu and put forth solutions to be taken, specific plan in the period of 2011-2015. .. Phu Then select business strategy and suggest solutions for implementing business strategy in the period of (2011 – 2015), in order that MB Dien Bien Phu is always a leading strong branch in MB‟s... business strategy in the period of 2011-2015 of Military Commercial Joint Stock Bank, Dien Bien Phu Branch? ?? b Purposes of research: Based on the theoretical and practical foundations of strategic