DEVELOPING STRATEGIC MANAGEMENT MODEL FOR VIETNAM DEVELOPMENT BANK (VDB) UNTIL 2015, STRATEGIC TASK FOR 2020The development bank network has 01 headquarter, 02 Transaction centers, 56 branches and representative offices in all over the country and overseasDEVELOPING AN OVERALL STRATEGY FOR VDB IN THE PERIOD 2010 2020
CAPSTONE “DEVELOPING STRATEGIC MANAGEMENT MODEL FOR VIETNAM DEVELOPMENT BANK (VDB) UNTIL 2015, STRATEGIC TASK FOR 2020” TABLE OF CONTENTS Assignment of group – Strategic Management TABLE OF CONTENTS LIST OF ABBREVIATIONS LIST OF TABLE LIST OF FIGURES, CHAT INTRODUCTION RATIONALE CHAPTER I 13 THEORY OF STRATEGIC MANAGEMENT 13 1.1 OVERVIEW OF STRATEGIC MANAGEMENT 13 1.1.1 In military view: 13 1.1.2 In business view: 13 1.2 KEY DEFINITIONS OF STRATEGIC MANAGEMENT 14 1.3 ROLE OF STRATEGIC MANAGEMENT IN OPERATION (ENTERPRISE, COMPANY ETC.) 17 1.3.1 Strategic management model: 17 1.3.2 Task of strategic management: 18 1.3.3 Benefits of strategic management 1.4 CLASSIFYING THE CURRENTLY APPLIED STRATEGIC MANAGEMENT MODELS 20 1.5 APPLICATIONS OF STRATEGIC MANAGEMENT MODEL IN VIETNAM 22 CHAPTER II 24 SITUATION ANALYSIS IN VDB 24 2.1 OVERALL INTRODUCTION TO VDB 24 2.2 ORGANIZATIONAL STRUCTURE OF VDB 25 2.3 FUNCTIONS AND TASKS OF VDB 25 2.4 RESOURCES: 27 Assignment of group – Strategic Management 2.4.1 Fund of development bank consists of: 27 2.4.2 Human resource: 27 2.4.3 Technology and equipment: 28 2.4.4 Network scope: 28 The development bank network has 01 headquarter, 02 Transaction centers, 56 branches and representative offices in all over the country and overseas 28 2.5 OPERATION OF VDB DURING 2006-2009 29 Major activities (investment and export credits, credit guarantee, postinvestment interest support and ODA etc.) 29 2.5.1 Capital mobilization: 29 2.5.2 Investment loan: 31 2.5.3 ODA: 32 2.5.4 Export credits: 33 2.5.5 Guarantee for investment credit 35 2.5.6 Post-investment subsidy 35 2.5.7 Other activities: 36 2.5.8 Financial situation of VDB 36 2.6 EVALUATION OF VDB ACTIVITIES IN 2006-2009 38 2.6.1 Achievements: 38 2.6.1.1 For the economy: 38 2.6.1.2 For VDB: 48 2.6.2 Weaknesses and causes for weaknesses (focusing on major weaknesses in VDB activities and causes for these weaknesses as the foundation for considering the relationship between the current management model and results and objectives) 54 2.6.2.1 To the economy 54 * Modest impacts on national economic growth 54 * Increased interest compensation and administrative fees funded from the State Budget 55 Assignment of group – Strategic Management * The appearance of adverse impacts on market regulation, growing conflicts between the demand for supporting policy and implementation capacity 55 2.6.2.2 To VDB 57 2.6.2.3 Reasons for exisiting problems and limitations 60 * Inappropriateness of the VDB model 60 * Export and investment credit policies of the governement have not been issued, or no timely state guidline has been worked out, regardless of inappropriate regulations 63 * The financial scheme is improper and the state support is not timely and sufficient 67 * Ineffective executing environment 68 * Causes from VDB 70 CHAPTER III 77 DEVELOPING STRATEGIC MANAGEMENT MODEL FOR VDB 77 3.1 MAJOR BASES: 77 3.2 ABILITIES TO MEET THE VDB’S OBJECTIVES UNTIL 2015 AND STRATEGIC TASKS UNTIL 2020 77 3.3 DEVELOPING AN OVERALL STRATEGY FOR VDB IN THE PERIOD 2010 - 2020 78 3.3.1 Forecasting - opportunities and challenges for VDB 78 3.3.2 Develop an overall strategy for VDB during 2010-2015 and strategic task for 2020 80 3.3.2.1 Mission Statement and Major Goals: 80 *.VDB Philosophy: 80 * Goals: 80 * Specific objectives: 81 3.3.2.2 Strategic development orientation of VDB for 2010 - 2015 and strategic task for 2020 82 Assignment of group – Strategic Management 3.4 SOLUTIONS TO IMPLEMENT THE SET OBJECTIVES OF VDB 87 3.5 SELECTING AN EFFECTIVE STRATEGIC MANAGEMENT MODEL FOR VDB 93 CONCLUSION 96 REFERENCE 97 APPENDICES 98 Assignment of group – Strategic Management LIST OF ABBREVIATIONS GDP MPI ODA SBV VDB Gross Domestic Product Ministry of Planning and Investment Official Development Aid State bank of Vietnam Vietnam Development Bank Assignment of group – Strategic Management LIST OF TABLE Table 1: Local mobilized capital 30 Table 2: ODA loan in VDB 32 Table 3: Export credit results 33 Table 4: The implementation results of post-investment subsidy 36 Table 5: Financial situation of the Development Cooperation 37 Fund/VDB Table 6: Credit structure in 2001-2008 40 Table 7: Capital structure by economic sectors 44 Table 8: The value of additional fixed assets 46 Table 9: Some determinants of liquidity risk 58 Assignment of group – Strategic Management LIST OF FIGURES, CHAT Figure 1: Strategic management process 16 Figure 2: Basic model of strategic management 18 Figure 3: Five tasks of strategic management 19 Chat 2.1: Annual mobilized revenues 30 Chat 2.2: Structure of invesment credit outstanding loan 31 Chat 2.3: Disbursement structure of export credit by product 34 Chat 2.4: Disbursement structure of export credit by market 35 Chat 2.5: Structure of investment capital 39 Chat 2.6 : VDB Gov.bond in listed securities market 43 Chart 2.7 : Frequenies of GDP nominal value and VDB’s 100 disbursement Chart 2.8: Regression of disbursement and GDP 103 Chat 2.9 : Average interest rate, interest rate subsidy and 55 managerment fees Chat 2.10: Some determinants of investment credit risk 57 Chat 2.11: Percentage of bad debt in investment credit 57 Chat 3.1: Present role of VDB 93 Assignment of group – Strategic Management Research paper: “DEVELOPING STRATEGIC MANAGEMENT MODEL FOR VIETNAM DEVELOPMENT BANK (VDB) UNTIL 2015, STRATEGIC TASK FOR 2020” INTRODUCTION RATIONALE Thanks to over 15 months of well-organized and quality training in the Master of Business Administration provided by Hanoi National University , our group comes to aware that business administration is an essential but challenging task for trainees The task requires a harmonious combination between theory and working experiences of each trainee in order to come up with important decisions in business Though, our group finally agrees that it will be difficult to be successful in business without being equipped with knowledge from this MBA program Strategic Management is the final subject in the MBA program It reviews all theories and practical application of subjects from the beginning of the program is a systematic way Specifically: Knowledge in the MBA is arranged systematically and logically, from the first to the last subject Business administration (in nature is Strategic Management), the key problem of the business administration process, is developed on the foundation of areas which are arranged logically, including economics, accounting, financing management, organizational behavior, accounting management, economics management, financial enterprise, financial Assignment of group – Strategic Management accounting, business statistics, negotiation, marketing management, human resource management, leadership, operational management and finally strategic management The practical element or the actual experience of each case/situation plays an important role Trainees can come up with various solutions in their business based on the theories obtained from the Program and the actual business situation of the enterprise The Strategic Management subject proves that Business Administration is highly linked to practical situation in the economy We have chosen a specific enterprise which is the Vietnam Development bank (VDB) to understand, analyze and develop a strategic management model for this bank This choice has been our strength due to the following reasons: - Banking is one of the “sensitive” areas and has great influence on the economy In fact, banking has contributed significantly to the economy in recent years It accounted for 8.5% in total services and made up 4.5% of total GDP in 2008 Research of the Strategic Development Institute of the Ministry of Planning and Investment (MPI) shows that banking sector continues playing an important role in Vietnam economy in the coming years, particularly when Vietnam is moving out of economic downturn and entering a new development cycle - VDB is a special bank (government bank) so it requires a special strategic management model VDB was set up to serve objectives of the Government of Vietnam It has the functions and tasks in mobilizing medium and long-term capital, receiving and managing State fund for implementing the government credit investment policy and export credit targeting at promoting investment for economic development and export (through preferential interest rate) for all types of businesses VDB has fulfilled the tasks set by the Government successfully during 2006-2009 and has made remarkable achievements However, in order to improve its administration model in the coming years and Decision No 108/2006/QĐ-TTg on 19/5/2007 of the Government on the functions, tasks and rights of VDB 10 Assignment of group – Strategic Management - Reform the mechanism of evaluating employees to be applied in the entire network - Decentrialize administrative and human resource management; - Formulate, revise and issue common standards for each title and position in VDB; - Develop strict regulations on the role and responsibilities of each position to ensure the accountability in their daily work; - Appoint, rotate, train and retrain staffs to ensure that the tasks assigned are suitable to the capacity and ability of each employee - Staffs recruited should be examined and evaluated based on their background and their suitability for the position The evaluation of candidates should be a public process and follows the required criteria and procedures Staff should be recruited based on the principle that “employees are chosen for the jobs rather than choosing the jobs” and should be equipped with professional knowldege to perform the assigned tasks - The appointment and rotation of staff should be implemented regularly without interfering the relative stability of the organization; appointment should be accompanied by special training for appointed employees - VDB should issue common standards for positions to be applied in the entire network as the basis for recruiting, appointing and training employees Activity management solution (risk management, information management…) Market-based funding (interest rate is defined based on the market, thus ensuring compensation of all costs) should be specified in VDB objectives and policies All activities should be publicly and regularly supervised by a capable independent organization Marketing management solution 92 Assignment of group – Strategic Management Promoting the publicity of VDB activities VDB should organize such marketing and promotion activities as seminar, customer workshop VDB staffs should be equiped with professional knowledge and interpersonal skills to provide adequate and accurate guidance on government policies to customers and thus, enhancing the reputation of VDB The presence of VDB should also be introduced to regional and international markets to open new cooperation opportunities, mobilize resources and promote technology transfer 3.5 Selecting an effective strategic management model for VDB On the basis of major solutions mentioned in Section 5, we would like to propose an effective strategic management model for VDB to achieve its objectives and development orientation to 2015, vision to 2020, which will be elaborated belows: - We have come up with a strategic management model for VDB based on two principles: Applying the Strategic Management theory and ensuring the applicability of the model to real situation of VDB First, a policy bank, funded entirely from the state budget, operates under market mechanism with enhanced autonomy and self-responsibility; Second, fields of operation: Financing industrialization and infrastructure a Risk b Cost compensation development, focusing on large projects which have impacts on economic restructuring and local development; supporting the private sector; financing projects with huge capital, Private sector State Budget Cost compensation long VDB Risk repayment period, low profitability and Chat 3.1: Present role of VDB higher risk compared to projects funded by commercial banks, especially for the projects which total funding from the State Budget is not necessary This means that VDB financing is limited to projects which the private sector is neither willing nor having sufficient resources to finance This 93 Assignment of group – Strategic Management financing aims at ensuring socio-economic efficiency as well as the possibility of collecting payment (as it diminishes market imperfections) As illustrated in the above graph, the fields of operation of VDB has supporting and facilitating effects rather than competing effects It should be noted that both a and b lines may move right or left in different periods, subject to the development phase, the national prioritized fields/sectors as well as the market-oriented level of the economy Thirdly, sources of capital: The initial funding (100% of chartered capital) is provided by the Government Besides, the government also provides support by guaranteeing for VDB to mobilize long-term stable capital In addition, under certain circumstances and in certain periods, the government may provide such supports as: Direct interest compensation, supplying and supplementing capital, funding directly through the Ministry of Finance and the SBV Fourthly, banking services and financial activities: VDB should have authority to diversify its activities, particularly those targeting prioritized fields/sectors in the government investment credit and export credit policies Meanwhile, VDB should be entitled to actively participate in the capital market through buying/selling longterm debt instruments (bonds) to ensure more flexible capital restructuring and improve the efficient use of capital - Fifthly, VDB has final decision to give loans to development projects at an interest rate that covers the borrowing interest rate, administrative costs and risk insurance costs based on market mechanism Sixthly, relationship with the Government and ministries and sectors: the Government gives orientation, VDB has autonomy in carrying out its activities The Government (through the Ministy of Finance) manages the total capital (domestic and international capital etc.) Monetary and credit management will be done by the SBV on the ratio basis (credit safety ratios and standards) - It should be noted that proper adjustments in VDB operations should be made, subject to modifications in the government investment credit and export credit policies The strategic management model of VDB should be perfected towards 94 Assignment of group – Strategic Management enhanced autonomy and authority, whereby the Government and ministries only play guiding and supervising role Decisions of VDB should be made based on current legal framework as well as management mechanism approved by the government This is an important, however sensitive, issue It enables VDB to hold a relatively independent position, rather than the current completely dependent position in its relationship with the Government and ministries Seventhly, the tasks and operation scale of VDB are specified in VDB Charter or relating documents, thus developing a disciplined corporate culture in the entire network This also contributes to the harmonization between VDB and commercial banks To sum up, in order to come up with an effective strategic management model for VDB, our group agrees that if the above-mentioned reasons are applied, VDB will promisingly improve its current management model, position itself in the system of credit institutions in Vietnam, gradually integrate into regional and international financial institutions In addition, by basically applying a modern strategic management model, VDB can improve the efficiency of its management activities, deserving the special position of “a government bank” 95 Assignment of group – Strategic Management CONCLUSION After studying and developing a modern strategic management model for VDB, our group has come up with the following ideas: 1.Strategic management is an essential activity for every organization (not only enterprises but also organizations) because it reflects a process of formulating – managing - operating the vision and strategic orientation of an organization in order to achieve the set objectives The strategic management process developed by international scholars is seen suitable to every type of enterprises/organizations as it was developed based on actual situation of many enterprises/organizations over many years 2.The identification of an effective strategic management model for VDB not only helps our group acquire more comprehensive understanding of the role and the implication of the Strategic Management course in particular but also provides managers of VDB with objective analysis and evaluation about VDB activities During the course of preparing this assigment, our group has realized that: - The study of a specific bank (the VDB case) is a precious opportunity for all group members to understand the role and position of the Strategic Management course in the MBA program The knowledge from the course is “linked” in a logical way Strategic management is an effective management instrument not only for VDB but also for any enterprise/organization - For VDB, the identification of an effective and suitable strategic management model for the objectives and future development of this bank will prove that the entire operations of VDB can hardly be improved unless a suitable strategic 96 Assignment of group – Strategic Management management model is defined In addition, it is difficult to achieve the set objectives without formulating and managing strategies to implement the objectives 3.By investigating the case of VDB and preparing the assignment for the Strategic Management course, our group has also been fully aware of the effectiveness of the entire MBA program The effectiveness of the MBA program delivered by Hanoi National University in collaboration with International School are reflected in the following aspects: - Firstly, studying the MBA program is studying the ways of problem solving through concrete available case studies developed by international scholars; - Secondly, studying the MBA program is studying the methods of approaching and solving problems of specific enterprises There is no right or wrong solution to the problem, there is only suitable or unsuitable solution; - Thirdly, the MBA program (as mentioned in the Introductory Part) is the program which has strongest link with reality among economics programs as it stems from reality and solves problems stemming from reality Last but not least, our group would like to express our most profound thanks to the MBA program organized by the Hanoi National University International School, Vietnamese and foreign lecturers as well as teaching assistants who have supported us to complete this program! REFERENCE 97 Assignment of group – Strategic Management Vietnamese: Strategic Management, Associate Prof Dr Lê Thế Giới – Dr Nguyen Thanh Liem – MA Tran Huu Hai Statistics Publishing House 2007 VDB’s summariting, balance – sheet report in 2006, 2007, 2008 English: Alex Miller (1998) Strategic Management 3rd Ed Irwin/McGraw- Hill Barley, J.B (1991), Firm resources and sustainable competitive advantage Journal of management 17 99-120 Chandrer, A (1962), Strategy and Structure, Cambrige, Massachusettes MIT Press Economic – Society Development Planning Theories and practicalities Development Strategy Institute National Politics – Truth Publishing House, Hanoi 2003 Mintzber, H Ahsran, B., Lampel, J (1998) Strategy Safari: A guided Tour Through the Field of Strategic Management, Prentice Hall Europe Porter, ME (1980), Competitive strategy New York, Free Press Prakalad, CK , Hamel,G (1990) The core competencies of the corporation Havard Business Rewiew 68 (3) May- June Some reports of GSO (MPI), SBV, website APPENDICES 98 Assignment of group – Strategic Management We know that: GDP=C+I+G+Ex To consider the effectiveness oof VDB’s disbursement to GDP, we suppose the mathematic relation between VDB’s disbursement and GDP nominal value as follow: GDP = f(I) = eβ1VDBβ2eU (*) Using Logarithm for above equation: Lg(GDPi) = β1 + β2 Lg(VDBi ) + Ui (**) Doing analysis with Skewness, Std Error of Skewness, Kurtosis, Std Error of Kurtosis take us to the state that they has conform with standard distribution and sufficient for statistic evaluation Frequencies VDB*GDP Statistics LG_GD LG_VD P N Valid B 37 37 0 Mean 5.2692 3.3488 Std Error of Mean 03027 04506 Median 5.2571 3.3086 Std Deviation 18415 27407 Skewness 311 035 Std Error of Skewness 388 388 -.790 -.330 759 759 Missing Kurtosis Std Error of Kurtosis DAF*GDP 99 Assignment of group – Strategic Management Statistics N LG_DAF 26 3.2730 04994 3.2542 2.71a 25464 174 456 361 887 85.10 Valid Missing Mean Std Error of Mean Median Mode Std Dev iat ion Skewness Std Error of Skewness Kurt osis Std Error of Kurtosis Sum LG_GDP 26 5.1758 02359 5.1617 4.95a 12030 148 456 -.744 887 134.57 a Mult iple modes exist The smallest v alue is shown Chart 2.7: Frequenies of GDP nominal value and VDB’s disbursement Period 2000- June 2006 Period 2000- March 2009 LG_GDP Std Dev = 12 Mean = 5.18 N = 26 00 4.95 5.05 5.00 5.15 5.10 5.25 5.20 Frequency Frequency Std Dev = 18 Mean = 5.27 N = 37.00 4.94 5.35 5.30 5.06 5.00 5.40 LG_GDP L G_GDP 100 5.19 5.13 5.31 5.25 5.44 5.38 5.56 5.50 5.69 5.63 Assignment of group – Strategic Management LG_DAF LG_VDB 10 12 10 8 6 Std Dev = 25 Mean = 3.27 N = 26.00 2.75 2.88 3.00 3.13 3.25 3.38 3.50 3.63 3.75 3.88 Frequency Frequency 2 Std Dev = 27 Mean = 3.35 N = 37.00 2.75 2.88 3.00 3.13 3.25 3.38 3.50 3.63 3.75 3.88 LG_DAF LG_VDB Estimation of Model: Using ordinary least squares (OLS) method in SPSS 11.5 for the data of GDP nominal value and VDB’s disbursement: Box 2.1: Comparison of the models Period 2000- June 2006 Period 2000- March 2009 Model Summary(b) R Model Summary(b) Model Model (1) (1) 498(a) R 620(a) R Square 248 R Square 385 Adjusted R Square 217 Adjusted R Square 367 Std Error of the Estimate Change R Square Statistics Change F Change 10646 Std Error of the Estimate 248 7.926 Change R Square Statistics Change F Change 33729 385 21.893 df1 df1 df2 24 df2 35 Sig F Change 010 Sig F 101 000 Assignment of group – Strategic Management Durbin-Watson Change 346 Durbin-Watson a Predictors: (Constant), LG_DAF; b Dependent Variable: LG_GDP 534 a Predictors: (Constant), LG_VDB b Dependent Variable: LG_GDP Coefficients(a) Model (1) (Constant) LG_DAF Unstandardized B 4.405 235 Coefficients Std Error 274 084 Standardized Beta 498 Coefficients T 16.051 2.815 Sig .000 010 ZeroCorrelations 498 order Partial 498 Part 498 Collinearity Tolerance 1.000 Statistics VIF 1.000 a Dependent Variable: LG_GDP Lg(GDP) = 4,405 + 0,235Lg(DAF ) + ei Coefficients(a) Model (1) (Constant) LG_VDB Unstandardized B 8.919 417 Coefficients Std Error 689 089 Standardized Beta 620 Coefficients T 12.942 4.679 Sig .000 000 ZeroCorrelations 620 order Partial 620 Part 620 Collinearity Tolerance 1.000 Statistics VIF 1.000 a Dependent Variable: LG_GDP Lg(GDP) = 8,919 + 0,417Lg(VDB ) + ei 102 Assignment of group – Strategic Management Chart 2.8: Regression of disbursement and GDP 5.8 5.6 5.4 LG_GDP 5.2 5.0 4.8 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 LG_VDB Disbursement of investment credit and GDP nominal value (current price) Unit: Bil VND Year 2000 2001 2002 2003 Quarter/yea r Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 DAF/VDB’s disbursement of investment credit (quaterly) 977 513 813 2,420 983 1,615 1,955 3,932 1,568 1,547 2,305 3,956 1,398 2,805 103 GDP nominal value (quaterly) 89,966 115,429 107,986 128,266 98,396 125,768 118,338 138,792 108,101 139,377 132,453 155,831 121,718 158,018 Assignment of group – Strategic Management Q3/03 Q4/03 Q1/04 Q204 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 2004 2005 2006 2007 2008 2009 2,035 7,246 1,192 1,955 2,544 4,881 1,551 1,650 1,410 3,212 1,071 2,263 2,500 3,500 149,844 176,006 140,520 183,822 180,755 210,210 161,227 211,861 213,628 251,142 184,567 242,526 258,798 287,900 1708 210878 1315 282577 5289 293776 6929 356211 3686 254086 4053 371652 1997 390765 7028 4265 Histogram LG_GDP Frequency Std Dev = 18 Mean = 5.27 N = 37.00 4.94 5.06 5.00 5.19 5.13 5.31 5.25 5.44 5.38 5.56 5.50 5.69 5.63 LG_GDP 104 462192 311136 Source: DAF, VDB, GSO Assignment of group – Strategic Management LG_VDB 12 10 Frequency Std Dev = 27 Mean = 3.35 N = 37.00 2.75 2.88 3.00 3.13 3.25 3.38 3.50 3.63 3.75 3.88 LG_VDB Regression Variables Entered/Removed(b) Mod el Variable Variables s Entered Removed LG_VD B(a) a All requested variables entered b Dependent Variable: LG_GDP Method Enter Model Summary Adjusted R R Model R Square Square 620(a) 385 367 a Predictors: (Constant), LG_VDB Std Error of the Estimate 14648 ANOVA(b) Sum of Model Squares Regression 470 Residual 751 Total 1.221 a Predictors: (Constant), LG_VDB b Dependent Variable: LG_GDP df 35 36 Coefficients(a) 105 Mean Square 470 021 F 21.893 Sig .000(a) Assignment of group – Strategic Management Mod el Unstandardized Coefficients Standardized Coefficients Std B Error Beta (Constant) 3.873 299 LG_VDB 417 089 620 a Dependent Variable: LG_GDP 106 t 12.942 4.679 Sig .000 000 [...]... decision in the strategic management model In this task, it is essential to evaluate in the most comprehensive way of the 5 strategic management tasks so as to make appropriate adjustment for the management model 1.3.3 Benefits of strategic management Overall benefits of strategic management The immediate benefit of strategic management is to bring about an overall view of the development path for the organization/company... three chapters: - Chapter I: Theory of Strategic management - Chapter II: Situation analysis in VDB - Chapter III: Develop strategic management model for VDB 12 Assignment of group 5 – Strategic Management CHAPTER I THEORY OF STRATEGIC MANAGEMENT 1.1 Overview of Strategic management Nowadays, the terms “strategy” or strategic management or strategic partnership” are used in many... meets the objectives and equals to the management level of other similar banks, our group members agree to use VDB as the research object for our graduation assignment entitled: Developing strategic management model for VDB until 2015, strategic tasks for 2020 With regards to the research content as mentioned above and on the basis of original data provided by VDB, we use various research methods such... but they share “great thought” on strategic management They are important concepts for our research and proposal of the strategic management model for VDB in the coming chapters 1.5 Applications of Strategic Management Model in Vietnam We faced with difficulty in presenting clearly the possible strategic management models that can be applied in Vietnam As we know, Vietnam has an emerging ecnomy which... efficiency of the bank and gradually improve the strategic management model in these banks The above example illustrates our group’s view that the identification of a strategic management model for VDB does not mean that VDB is not operating effectively It aims at a further goal that we are trying objectively to find out the most effective strategic management model for VDB, a government bank which provides... any strategic management model will always be applied for these types of enterprises In fact, we realize there are several effective strategic management models by Vietnamese enterprises These models have been researched, developed and applied successfully The strategic management models of two joint stock commercial Vietnamese banks can be named, namely Asia Commercial Bank and Saigon Commercial Bank. .. introduce a standard strategic management model for Vietnam However, we agree that considering the current development situation of Vietnam and the special feature of Vietnamese companies/enterprises, the most feasible and applicable strategic management model is the mix strategic management model According to the studies of the General Statistic Office of Vietnam, over 85% of Vietnamese companies...Assignment of group 5 – Strategic Management with a development spirit, VDB wants to develop an effective strategic management model which deserves the name of a Government bank - Our research group consists of four members in which one member is holding the management role in VDB Bearing in mind the concern to have a modern strategic management model for VDB which meets the objectives... appropriate strategic management model based on the basic principles of strategy In strategic management process, “strategists” have to follow 5 tasks closely as shown in Figure 1 On that basis, companies have a full understanding for setting up and implementing tasks suitably to their actual situation The other benefit of strategic management lies in the close and accurate implementation of strategic management. .. These banks use a modern strategic management model with a target to become the leading financial corporation and banks in Vietnam in 22 Assignment of group 5 – Strategic Management 2020 They pilot the idea of making members of the Board of Director to be independent members and do not own shares in these banks The purpose of using independent members to participate in the bank management