Hoàn thành chiến lược kinh doanh của ngân hàng BIDV chi nhánh thăng long

THIESIS SUBJECT COMLETION OF BUSINESS STRATEGY OF THANG LONG BRANCH OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM TABLE OF CONTENT TABLE OF CONTENT .2 ABBREVIATION LIST OF TABLE .5 LIST OF FIGURE PREAMBLE CHARTER BASIS OF THEORY OF ENTERPRISES’ BUSINESS STRATEGY 1.1 Business strategy of enterprises .8 1.1.1 Concept .8 1.1.2 Business strategy at business enterprises 1.2 Process of setting up strategy 12 1.2.1 Determining business duty 12 1.2.2 Evaluating external factors .12 1.2.3 Assessing internal situation of enterprises 13 1.2.4 Analyzing strategy and selection 13 1.3 Tools to set up business strategy 14 1.3.1 Collecting and systematizing information 14 1.3.2 Process of combination 16 1.3.3 Decisive Process .18 1.4 The characteristics of banking sector impact on strategic management 19 1.4.1 The potential need for usage of banking service 19 1.4.2 The management of the SBV 20 1.4.3 Development of related and supported industries 20 1.4.4 Competitors .21 1.4.5 Internal factors of banking 22 CHAPTER II 24 THE CURRENT SITUATION OF BUSINESS ENVIRONMENT OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM-THANG LONG (BIDV TL) .24 2.1 Introduction of Bank for Investment and Development of Vietnam – Thang Long (BIDV TL) 24 2.1.1 History of establishment and development .24 2.1.2 Distributing Network 24 2.1.3 Products and Services .25 2.1.4 The Business Result 26 2.2 The analysis of environmental factor impacts on the operations of BIDV TL 34 2.2.1 Macro-environment 34 2.2.2 Micro environment 41 2.2.3 Evaluating opportunities and threats .47 2.2.4 External factor evaluation matrix (EFE) 48 2.2.5 Matrix of competitive image 50 2.3 Analyzing internal factors of BIDV Thang Long 53 2.3.1 Human resources .53 2.3.2 Marketing 54 2.3.3 Organizing Structure .55 2.3.4 Management capacity .55 2.3.5 Financial capacity 56 2.3.6 Research, development 56 2.3.7 Information technology 57 2.3.8 Evaluating strong and weak points 57 2.3.9 Internal factor evaluation matrix (IFE) 58 2.4 Necessity of building up business strategy for BIDV Thang Long .59 CHAPTER III 61 COMPLETION OF BUSINESS STRATEGY OF BIDV TL BY 2012 61 3.1 Business target of BIDV TL by 2012 61 3.1.1 General target 61 3.1.2 Detailed target by 2012 61 3.2 Analyzing feasible business strategy .62 3.2.1 Analyzing SWOT matrix .62 3.2.2 Analyzing SPACE 64 3.2.3 Analyzing large strategy matrix 66 3.2.4 Determining substitution business strategy 66 3.3 Quantitative strategic planning matrix (QSP) 67 3.4 Solutions to implement strategy .69 3.4.1 Solutions to develop human resources 69 3.4.2 Marketing Solutions 72 3.4.3 Technological solution 74 3.4.4 Restructuring solution of organization 75 3.4.5 Building up culture of organization 78 3.4.6 Building up material facilities 80 CONCLUSION 80 REFERENCE 82 ABBREVIATION SBV State bank of Vietnam Vietcombank Vietnamese Commercial Bank Vietinbank Vietnamese trade bank Agribank Agriculture and rural development bank BIDV Banks of Investment and development of Vietnam SACOMBANK Saigon Thuong tin Commercial Bank BIDV TL Banks of Investment and development Thang Long ATM Automatic transferring machine EFE External factor evaluation IFE Internal factor evaluation SWOT Strengths, weakness, opportunities and threats SPACE Strategic Position & Action Evaluation BCG Boston Matrix IE Internal external LIST OF TABLE Table 2.1 ATM network Table 2.2 Business Report Table 2.3 GDP growth rate Table 2.4 import export turn over………………………………………… Table 2.5 Populations scale and structure………………………………… Table 2.6 Structure of total instruments paid by 2002-2006……………… Table 2.7 Comparison Norm……………………………………………… Table 2.8: EFE Matrix……………………………………………………… Table 2.9: Matrix of competitive pictures………………………………… Table 2.10: IFE Matrix……………………………………………………… Table 3.1 SWOT Matrix…………………………………………………… Table 3.2 SPACE Matrix…………………………………………………… Table 3.3 SPACE Matrix…………………………………………………… Table 3.4 Selected strategies……………………………………………… Table 3.5: Steps for implementation 25 26 34 35 36 38 46 48 50 58 62 63 67 69 80 LIST OF FIGURE Figure 1.1 SWOT Matrix Figure 1.2 SPACE matrix Figure 1.3 Matrix of large strategy Figure 2.1 Export import turn over Figure 3.1 SPACE matrix 16 17 18 35 64 PREAMBLE The necessity of selecting subject According to Vietnam’s pledge with WTO and bilateral agreement, Vietnam has duty to remove commercial and financial barriers for foreign investors Hence, Vietnamese enterprises are facing difficulties due to strong competition when opening its market By the end of 2011, foreign banks will be treated as Vietnamese ones, resulting that they will face fierce competition Up till now, banks are promptly founded, expanded their scale to confirm sustainable position Setting up suitable business strategy for each bank is vital for survival, development and enhancement As a result, Subject “Completion of business strategy of branch of Bank of Investment and Development Vietnam Thang Long by 2012” is selected Study object and scope Study object: Business strategy of BIDV Thang Long - Scope: business activities of BIDV Thang Long, comparing with competitors in banking sector including: Viectcombank, Vietinbank, Agribank Study goal and target Goal of Group is to set up business strategy for BIDV Thang Long to 2012 and propose solutions to make BIDV Thang Long one of strong banks in BIDV system Targets: - Overview basic theory of business strategy processes of building up the strategy, tools, and characteristics of banking sector affecting to strategy - Analyze external and internal factors to find strengths, weakness, opportunities and threats of BIDV Thang Long - Determine business targets based on SWOT, set up strategy and solutions to implement the strategy Methodology - Resources of references: banking newspapers and magazines, books, website (asset.com, bidv.com.vn, vietcombank.com.vn…), report of Vietcombank, Vietinbank, Agribank - Approaching method: All methods are used When analyzing current situation of BDIV Thang Long, particular approach method is used When analyzing internal and external factors affecting business activities of BIDV Thang Long, historical, qualitative and quantitative approach method are used - Primary information collecting method: Observation, interview, expert methods are used - Information handling method: Modernizing method, result-reason analyzing, statistics are used Methods of subjects: Strategy management, HR management, Marketing…are combined to analyzed Meaning of subject The capstone project is base on theory relating to strategy management and uses it to analyze SWOT of BIDV Thang Long, setting up business strategy and solutions to implement this strategy, mostly in the context of Vietnam entry into WTO and Vietnam must pledge to implement regulations in banking by 2012 CHARTER BASIS OF THEORY OF ENTERPRISES’ BUSINESS STRATEGY 1.1 Business strategy of enterprises 1.1.1 Concept “Business strategy of enterprises is a general action plan to implement target of enterprises” In order to gain such targets, it does not depend on business strategy; they are variety of support programs, functional strategies Business strategy creates guideline framework for implementation * Business strategy in general is determined by three levels: + Company – level strategy: Determine and show purposes in detail, targets and business activities of a company, create policies and basic plan to gain targets + Business – level strategy: Determine selection of products and particular type of products for business activities inside company; determine methods for every business units to complete their targets to distribute to company’s target fulfillment + Function- level Strategy: Determine solutions, plan for every business industry * Some concepts closely related to concept of business strategy + Duty Report: Report about long term purpose, which represent business mission of company by products and services providing customers, making difference between this company and that company It describes values and priorities of company, determine general development of company + Long term targets: Results which enterprises gain from completing their main duty Long term targets are lengthened over one year with criteria: challenge, measurable, suitable and clear Long term targets are set up for enterprises and their units Long term targets play an important role in period of strategy’s establishment + Annual targets: Milestone which enterprises must achieve to meet long term targets Annual targets include types as follow: management, marketing, finance/accounting, producing/managing, developing study and information system Annual targets play an important role in period of strategy’s implementation + Policies: Tools to gain targets, guideline for making decision and implementing repeat or frequency circumstances Policies play an important role in period of strategy’s implementation + Opportunities and challenges: Such factors depend on external environment, out of control of enterprises, which may harm or make profit + Strong and weak point: Such factors depend on inside environment, in control of enterprises They are determined in the connection with competitors 1.1.2 Business strategy at business enterprises 1.1.2.1 Centralizing growth strategy It is able to apply every enterprise’s strategy to their units However, at business units, centralizing growth strategy must be firstly focused on because central object of strategy is products and marketing This strategy mainly improve status of competition of enterprises with their existing products in the marketing, on the basis of strengthening marketing activities or changing current marketing strategy without changing products There are three main strategies: + Market penetration: Looking for market share for increasing current products and services at existing market through marketing effort + Market development: Introduce current products, services to new area + Product development: Increasing revenue by improving and renewing current products, services 1.1.2.2 Competitive strategy base on M Porter’s ideal Michael E.Poter – Harvard University’s professor defined basic competitive strategy in the book: “Competitive Strategy” Low cost leadership strategy Such strategy creates competition by two ways: - Valuating is lower than that of competitors to attract targeted customers who are sensitive to prices to increase total profit It is suitable for enterprises with large scale, which have ability to reduce cost in activities - Controlling not to reduce totally, satisfying current market share and using lower costing tools to gain profit margin higher for every product Differentiation strategy Enterprises will focus on making more clearly different types of products and marketing programs than competitors to gain the top position After that, fixing higher price than normal products, increasing revenue through attracting customers with remarkable characteristics such as: unique taste, storage to distribute products to customers everywhere, scientific applying into designing and managing implementation, optimal service, high service, prestige and easy to differentiating with other products… Strategy focusing on main points Enterprises focus on narrow market segments Such segments are determined by geographical area, products, and customers Attractive segment selected are areas without competitions or competitors not meet all customers’ need and wants 1.1.2.3 Competitive strategy for business enterprises based on market share Although every business units depend on enterprises, their market share is different 10 Table 3.3 : QSPM matrix : Factors Internal factors Total assets Bad debt Managers young, enthusiastic and self-motivated employees Brand name ’s prestige Unification of will and actions Recruiting and training human resource Risks management Marketing strategy 10 Distribution network External factors Export turnover 2.Political environment Development of science and technology The opening of financial market requires GDP growth rate The market penetration of foreign banks Alternative products Bank systems Risk of bankrupt 10 Demand of banking products and services Total attractive points Class -sificatio n Alternative strategies Market Market Major development penetration concentration AS TAS AS TAS AS TAS 2 12 12 12 3 3 4 16 16 12 12 6 3 12 3 3 1 4 4 12 4 4 12 4 16 6 3 12 12 3 12 3 12 3 4 12 12 12 12 4 12 16 174 159 Bases of attractive marks 164 AS is attractive marks, TAS is total attractive marks So that we choose market development strategy for SO strategy group, because TAS=174 is the highest mark The chosen strategies for BIDV TL by 2012 are in order of priority as follows: 68 Name of strategy Main contents Market development strategy (S2, S3, Concentrate on finding the best places to S4+O1, O2) open transaction points and expand business network Leading strategy by low cost (S2, S3, Take advantages of low input cost to S4+T2, T4) determine attractive output price in order to lead the market Intensification marketing strategy Invest in advertisement and promotion to (W3+T2,T3,4) find new customers and keep existing customers Re-organization and human Re-organize the bank according to TA2 development strategy (W2, W5+O2, O4) model of BIDV center Sending personnel to professional courses and foreign language courses Product development strategy Enhance quality of existing products and (S2,S3,S4+O3,O4) services and supplying new products of BIDV center, diversifying products and services Major concentration strategy Concentrate on public, rich and potential (S3,S4+O1,O6) customers segments Table 3.4: Selected Strategies 3.4 Solutions to implement strategy 3.4.1 Solutions to develop human resources To implement chosen strategies, we have to build human resource with high professional standard, over-all understanding of banking services, enthusiastic serving manner, and good communication skills To achieve these objectives, BIDV TL needs to do: 3.4.1.1 Recruitment process and human resource attraction BIDV TL needs renew recruitment methods to ensure high quality personnel for the development plan BIDV is using traditional recruitment method that includes 69 receiving applicant’s document, writing examination, and interview This method has disadvantages of theory, overlooking group working skills, communication skills, matter solving skills, In fact, students who are fresh out of university often have writing marks better than experienced candidates So that potential candidates are ignored Thus, BIDV TL needs to change recruitment method to develop human resource - Built up a close and scientific recruitment process from the step of receiving applicant’s document in order to choose skillful and professional candidates - Publish recruitment information, examination forms, and contents of examination - The contents of examination base on job description of each recruitment position For examples: we need to have both writing and communicating examination for transaction staffs - Abolish absolutely recruitment basing on relationships without mention of knowledge and skills In fact, BIDV TL uses this method for recruitment frequently Besides, BIDL TL needs to implement human resources attracting solution The Bank signs probation labor contract with the probationary students who have high term marks (more than 7.5 marks in average) and pays them salary during their trial period We can see their ability, skills, and morality in part on the probation time The Bank needs to build good relationship with prestigious universities in order to recruit good students 3.4.1.2 Training and retraining staff Base on job description and job standards of each working position, we survey and classify 150 people of the bank into groups: the group of people who meet standards and the group of people who don’t meet standards And then we build 70 training plans for the second group and determine the improvement time for their working skills - Build up plans of human resource training, focus on on-the-work training, and plans of alternating personnel to ensure its staffs not only work well but also understand generally knowledge of the bank - Open short-term training courses of features of existing products and services for staffs - Arrange tests and examinations periodically in each department of the Bank to evaluate staffs’ ability and professional skills After that, it sends the results and evaluation of strength, weakness to each staff This also helps the bank find out good staffs for scheduling managers, avoid being passive in case of someone retires or moves to other company 3.4.1.3 Policy of managing human resources, salary, bonus - Building up job descriptions and job standards for each working position of the Bank This helps every body knows what they have to do, to contribute, and to learn for having a better position This also helps Bank with appointments and monitoring, evaluating working results of each person accurately, avoid brain-drain - Building up bonus, salary policies based on profits, seniority and the improvements in professional knowledge, foreign language, computer skills, in order to encourage staffs to self-training Building up preferential treatments such as high salary grades to attract good collaborators working for BIDV TL 3.4.1.4 Policy of promotion and assignment of human resources - Besides training and re-training, the promotion and personnel arrangement help the staffs prove their abilities and BIDV TL have high business results So that, the managers need to know professional skills and abilities of their staffs in order to have 71 the best personnel arrangement Otherwise, the Bank needs to evaluate working result of each department frequently to have better re-organization and personnel arrangement This creates favorable conditions for staffs to prove their creations and bear responsibility for their decisions whereby we can evaluate staffs’ abilities and arrange their jobs appropriately - Implementing personnel arrangement and development effectively, openly, democratically to set up manager resource, improve politics virtue together with manager arrangement 3.4.2 Marketing Solutions 3.4.2.1 Market survey BIDV TL needs to concentrate on some issues in market survey as follows: - Competitor survey bases on regular comparison among products, interest rate, advertisements, network; They are Vietcombank, Vietinbank, Agribank, Sacombank, Eximbank on the same area, whereby we can determine advantages and disadvantages of BIDV TL Relying on the survey results, we build up business strategy in common with the competitors but not collide with back competitors The Bank needs to occupy the local market (export activities, foreign investments, and oversea national currency exchange,) to develop suitable services - Customer survey – If you want to keep your customers, you have to make them satisfied, if you want to have new customers, you have to provide them with values that better than your competitors For that reasons, we need to survey customers’ satisfaction and their feeling by survey tables (in the appendix) to build up a suitable customer policy 3.4.2.2 Marketing Mix Implementation Marketing policy includes: product, distribution, price, and promotion The capstone project mentioned distribution content in the section 2.1.2, so that this section mentions contents of product, price and promotion 72 * Product: The Bank needs to keep pace with latest guidance and lead of BIDV center in expanding, developing and enhancing quality of products and services, especially opportunity products in order to have action plans timely In this period, we have not only to concentrate on supplying high profit products and services such as payment, guarantee, foreign currency business but also pay attention to retail products and services as salary payment, BSMS and new products as internet account checking, invoice payment on desk or through ATM, online stock payment connection,… - Diversifying policy of banking products and services in accordance with mix development orientation; Supplying closed services to its sub-banks and other banks of BIDV bank system; having reciprocal trading policy between services of the Bank and services of other sub-companies of BIDV as BIDV insurance company (BIC), BIDV stock company (BSC); Building up specific development process for each service - Completing operation process of BSC stock agent in the Bank, increasing customers, expanding market share together with developing new products and services; coordinating with BSC to upgrade the offline transaction system to the online transaction system * Distribution Development orientation of BIDV TL is becoming a retail bank, so that network expanding is necessary But the network expanding has to be in accordance with business scale, financial ability, business ability and human resource For the present, BIDV TL can: - Founding a banking transaction office in Dong Da district under approved project of BIDV center to complete business network Besides, the Bank needs to improve existing transaction points, complete functions and duties of each point step by step in order to attract capitals and develop retail banking services 73 - In this trend, the banking card market have been narrowed fast, we have to establish banking kiosks and automatic banking transaction points in commercial centers, collective zones and new towns of the area and adjacent areas of the Bank; increase many banking card channels (adding ATM machines, POS machines), implement coordination with commerce centers, super markets,… to supply cards to residents Price: At present, BIDV TL fixes price relying on price regulations of BIDV center and other competitors BIDV is leading in term of low loan interest and low service fee, BIDV center has published loan interest 10.5% per year apply for all customers since 1stJuly 2009 But its send interest is low, especially lower than commercial banks For this reason, BIDV need have a suitable price policy, such as: Adding extra deposit interest to the current interest rate for key accounts (the total interest is belong to the interest scope of BIDV center), or super-market cards, petrol cards - Personnel of BIDV TL mobilize their friends use the bank’s services The staffs understand characteristics, advantages of the products and services exhaustively so that they can persuade their friends successfully For this reason, this method is better than any other marketing methods - Holding customer conference periodically By this way, BIDV TL can understand customers’ further needs as well as receiving their appreciation about quality of services and serving manner After that, BIDV TL can have solutions for better quality of services and stronger brand 3.4.3 Technological solution Technological solutions can be viewed into points: system (including software and hardware) and information personnel 3.4.3.1 System 74 - Software: The Silverlake program, applied since 2003, has brought the bank and its customers with many profits by online management and connection overall the bank system (customers can withdraw their cash at any point of BIDV) However, BIDV TL needs to have a security system because electric banking services are often built up base on the public telecom network So that, the Bank needs to guarantee security for customer data link, especially implement network security solutions absolutely For examples: using camera in machine room, locking doors after out of the room to avoid possible losses for the bank and customers - Hardware: + All of computers of the bank system need to have synchronous hardware configurations; not use bad hardware configurations for transaction offices because their processing speed is not fast enough for running modern application programs + BIDV TL needs to have both formal system and standby system Besides online system, the Bank needs to have offline system in case of jamming the system + The technological system has to be an open system to guarantee that the system can be opened in operation without stopping 3.4.3.2 IT human resources - The operation ability of the technological system and the new product creation depend on ability of IT staffs For this reason, the Bank needs to have suitable recruitment and treatment policies for IT executives Otherwise, duties that are required by other departments have to be expressed into documents to determine duties, implementation progress, avoid arguments and lack of responsibility + Creating favorable conditions for staffs to learn necessary IT courses as well as to learn financial and banking information technology 3.4.4 Restructuring solution of organization Building and improving organization structure to establish functional block, customer orientation with developed scale and management system according to 75 Decision 4589/QĐ-TCCB2 of BIDV center Thence, BIDV TL can repair the weakness: Risk management department is independent and separate from banking department, customers can transactions through one door, and relationships among different departments are co-operating one according to banking process and function of each department Relationship among departments of headquarters and transaction departments are guiding, inspecting, supporting according to function of each department to cooperation common mission In order to implement this objective, BIDV TL needs to establish departments into blocks (in the appendix): Customer Relationship Departments - Enterprise customer relationship Department: separated from commercial credit department, responsible for marketing, developing enterprise customer relationship and credit - Personal customer relationship Department: separated from personal credit department, responsible for marketing, develop personal customer relationship and personal credit Functional Departments: - Credit management department: merged a part of commercial credit department and a part of personal credit department, responsible for doing banking activities directly and loan management, guarantee, set up spare fund for risk according to debit classification of customer relationship department - International payment department: separated from a part of enterprise customer services department, responsible for doing trade aid transaction directly, marketing, and improving effectiveness of branch’s external affair co-operation - Renaming Currencies and Fund Department to Fund services and Management Department, responsible for activities on fund management, encashment and paying 76 out, developing services on funding, consulting for Director Board about solution guarantee currencies, fund safety - Customer services department: Managing account and doing transaction with customer, discovering transaction that have doubt signs and reporting timely, inspecting correctness, completion, legalization of transaction document; managing and storing customer information files Risk management Departments: - Establish Risk management Department, responsible for consultancy, solutions to develop and improve credit; assessing risk of loans that guarantee credit proposal suitable with regulation, deal with doubtful debt; guiding solution to avoid banking risk, to prevent money laundering; managing quality management system ISO; internal inspecting Internal management Departments: - Changing Source of Capital Department to Collecting-Planning Department: responsible for collecting, analyzing, assessing information about social, political, economic of region, partners, competitors that can affect to activities of branch; consulting for Director to build, implement and assessing development plan and business plan; assessing overall business activities of branch - Changing Administration Department to Personnel Department: Responsible for consulting Director on arrangement and development human resource in branch; managing emulation and reward activities; Completing legal procedure related to establish transaction development - Accounting and Financing Department: Responsible for entering the account, doing general account, re-checking accounting record, supervising finance, suggesting regime to manage asset, finance, internal spending; managing all accounting data, implementing financial report 77 - Electrical Team: Responsible for doing as regulation, information technology process and competency of Branch; guiding, training, supporting, inspecting other department, staves to operate information technology application fluently, correctly 3.4.5 Building up culture of organization Culture of organization is reputedly awareness in an organization not only in one person individually So, each person who has different awareness, lifestyle, basic of culture or different position in organization, tends to display organizational culture in the same way or has at least common denominator Culture of organization relate to the way to understand and action of the member insight, outside organization Culture of organization is simultaneously the most specifics and vivid presentation of organization that everyone can realize easily That image may be constituted by many factors Theoretically, if one factor can be changed, organizational image will be different Hence, although organizations may be having many similar features, they can’t have the similar organization culture Fundamental characters of organization culture: - Self management of individuals in organization (responsibility, independence, behavior, working style ) - Organization mechanism (rules, regulation, statutes) - Support of manager to staffs - Solidarity and team spirit in organization - Evaluation, reward, the way and bases to reward - Conflict, withstanding and the way to solve conflicts - Possible risks, withstanding to possible risks In order to build organization culture, BIDV TL needs to: - Regard customers as centre in all activities of BIDV TL, professional operating, handling job quickly, effectively to satisfy customers’ demand in the best way 78 - Ensure the unity of working culture in each BIDV TL’s level and in whole branch - Create gradually friendly banking culture, dynamic working style, synchronous co-operating between different departments, friendly working environment, every staff bring their ability to play - Publish all policies from recruitment to reward in activity process transparently - To treat equally to all member, avoid being partial to somebody base on relationship, create fair competition in organization, that means the driving force to impulse the development of organization - Beside to equip specialist professional knowledge, it must update professional skills, BIDV TL also have to direct staff to discipline awareness and professional ethics - Parallel with specify task and responsibility of each staff, organization need to create good conditions for they to complete their mission, and build wage policy, clear business evaluation system, recognize the achievement of staff to encourage they work self-consciously with loving and contribute whole hearty for development of organization - BIDV TL need to direct staff to be aware that their colleagues are internal customers, regard that colleague who next step of working is their customer, in that way BIDV TL will create friendly and healthy environment - To build relationship between leaders with staff is co-operative relationship toward activity object of the bank, not only complete task to avoid reprimand, such as: + Sharing with staff about working objectives and have solution to help them achieve the goal + Sharing with staff about necessary knowledge and skill to help them improve working ability, create their belief and devotion to manager + Never think of staff as mediocre people, need to consult with staff before decision 79 3.4.6 Building up material facilities Head office of BIDV TL is hired; the expenditure for hiring is more than 600 million VND per month This quite huge amount increase expenditure of branch, oneway street position decrease business advantage In 2009, The bank promote to have construction permit in order to start building new office at No 3, Pham Hung street, Cau Giay, Ha Noi, according to design approved by BIDV In summary, Chapter has analyzed and combined elements: opportunities, threats, strength, weakness in comparison with competitors of BIDV TL; building substitution strategies to expose attackable solution These solutions need to be implemented synchronously at once in order that BIDV can establish its specific position in the future Table 3.5: Steps for implementation Unit: million VND Content Development HR Responsible HR Departments Time Cost At the end of 2010, check and 500 assess, select and plan training for years coming Marketing Administrationlan Department IT development Restructure organization Electronic team - /2010: complete online stock 3000 payment system - QIII/2010: establish and upgrade materials, add functions for transaction departments 12/2009: complete IT system and 300 add staff with profession QI/2010: clarify and decentralize base on functions and duties of departments with model TA2 BOM Note Norms to assess base on specific activities CONCLUSION Period 2009-2012 appears many changes in competitive environment of the economy in general and banking particular: movement from domestic competition to international one Pressure from international economic integration make enterprises 80 focus highly for survival In trend of new integration and development, BIDV Thang Long needs introduce timely solutions to stand firm on its feet and develop in competitive environment Based on strengths, weakness, opportunities and threats of BIDV Thang Long, business strategies are set up: market development, low costing leading, Marketing, restructuring organization and developing human resources In order to implement such strategies, solutions must be focused on: developing human resources, distributing network, marketing, technology, organization restructure, building up enterprise’ culture and materials facilities However, business environment always changes; BIDV Thang Long need frequently check and assess implementing result to adjust solutions Besides solutions, we make proposals to State bank of Vietnam, Vietnamese association of Bank, Deposit Insurance of Vietnam mechanism, policies to make further favorable conditions for banking activities in general and BIDV Thang Long in particular for coming years 81 REFERENCE Fredr David, Theory of strategy management, Statistic Publishing House, Hanoi Nguyen Thi Lien Diep, Associate Professor – PhD and M.A Pham Van Nam (2006), Business strategy and Policy, Labour and Society Publishing House, HCM Nguyen Trong Nghia, M.A (2006), Improvement of knowledge of international economic integration, training center of Association of Banks, Hanoi Michael E Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1998, 1st ed Free Press Le The Gioi – Associate Professor, Phd, Nguyen Thanh Liem – Phd, Tran Huu Hai, Strategy management, Statistic Publishing House Hill, M., Irland, R., and Hopskinsson, R.,7/e, 2007 Thomson Southwestern, Strategy management: Competition and Globalization Financial Report of BIDV Thang Long 2006, 2007, 2008 and first months of 2009 Annual Report of Vietcombank, ViettinBank, AgriBank Vietnamese Association of Banks (10/2006), Vietnamese and Vietnamese Banks’ pledgement when WTO’s entry 10 Decision No 912/NHNN-CLPT dated August 19 2005 of State Bank of Vietnam and Strategy of developing banking service 2006-2010 11 Decision No 112/2006/QĐ-TTg dated 24/05/2006 of Prime Minister of approval of project to develop banking system by 2010 and orientation by 2020 12 Banking magazine 2006, 2007, first months of 2008 13 http://www.mckinseyquarterly.com/home.aspx 14 http://harvardbusiness.org/resources/strategy 15 http://www.strategy-business.com/ 16 www.vietcombank.com.vn 17 www.bidv.com 18 www.vietinbank.com.vn 19 www.agribank.com.vn 82 [...]... VIETNAMTHANG LONG (BIDV TL) 2.1 Introduction of Bank for Investment and Development of Vietnam – Thang Long (BIDV TL) 2.1.1 History of establishment and development Bank for Investment and Development of Vietnam – Thang Long (BIDV TL) was established and developed from a department under the Central Bank of Construction (that was later renamed Bank for Investment and Development of Vietnam– BIDV) to issue,... and pay basic building capital for Thang Long bridge construction In 1991, it was renamed Bank for Investment and Development of Vietnam – Thang Long (BIDV TL) directly under Bank for Investment and Development of Vietnam (BIDV) According to Business Registration Certificate numbered 315370, dated January 12 th 2009, BIDV TL was one of 108 member units of BIDV , BIDV TL traded in multisectors such as... business report of BIDV TL for recent years, despite unfavorable location and basis of customers not as good as these of other branches in the area, BOM orientation and all staff’s trial at best make BIDV TL be assessed branch Grade 1 with financial norm, credit quality at high level of BIDV TW - Comparing norms of BIDV TL with BIDV TW by 31st December 2008 No 1 2 3 4 5 6 Norm Medium, long term debit... currently located on 8 Pham Hung road, Cau Giay, Hanoi 10 transaction offices are in turn on Nguyen Chi Thanh, Tran Dang Ninh, Ho Tung Mau, Kim Ma, Trung Hoa, Lac Long Quan, Hoang Cau, Nguyen Khanh Toan, Pham Van Dong These are the satellites going around the bank In addition, BIDV TL has 16 Automated Teller Machines (ATM) located in following places: 24 Table 2.1: ATM network Location The number of ATM... combination among departments and board, belonging units, the relationship among departments… In summary, the enterprises during the business process have to determine their annual target and long term target The business strategy is the way to gain those targets In this capstone project, determining business duties, analyzing of external and internal factors of BIDV Thang Long will be solved in Chapter II... BIDV TL was average 13%, especially in 2008, the growth speed was low (10,0%) BIDV TL trading in suburb area has many difficulties Mobilizing capital resources is mainly from economic organizations, so the capital foundation hasn’t been really stable The capital mobilization from habitants remains limited because of their low income On the other hand, the Central Bank pass annual business plan of BIDV. .. Although BIDV TL has many difficulties, for example, the business location is disadvantageous, the clients are mainly the SOEs who trade in construction and assembly areas and who have financial difficulties, bad debt, over term debt, off balance sheet debt, high hanging debt, the credit staffs young and unstable, the credit operation of BIDV TL for the past three years followed exactly the BIDV control... the total of credit debt surplus of BIDV TL increased nearly 44%, but the increase was mainly the short-term debt surplus (increased 661 billions dong) The mid and long- term debt surplus increased a little (172 billions dong, increased 10%) in comparison with 2005 These differences can be changed at the end of 2009 and the following years when several middle and long- term projects are completely disbursed... operation of the whole system in general and of BIDV TL in particular This was the period rising in both absolute 31 relative numbers The average growth level of BIDV TL for 3 years was 58% (the average growth level of the whole sector was 54%).Net service revenue accounted for high rate of the total of net service revenue which came from business operation of BIDV TL (22,7% in 2006, 25% in 2007, 40% in... 106, 7% the clients and accounting for over 50% of the total of net service revenue of BIDV TL The results above showed that BIDV TL took advantageous opportunity of the market very well, especially in the first 6 months of 2008 Other services also had high growth level, which made the result of net service revenue of BIDV TL gain and exceed the plan of 2008 given by the Central bank 32 The business