Quản trị chiến lược kinh doanh các ngân hàng, phân tích điểm mạnh, điểm yếu, cơ hội, thách thức của ACB, Vietcombank, BIDV, Agribank, Vietinbank, Sacombank. từ đó đưa ra các chiến lược kinh doanh tương ứng.
Trang 1COURSE TITLE:
STRATEGIC MANAGEMENT
Student:
ID :
Lecturer: UBIS INTAKE
COURSE CODE:
MGT 604
Trang 21.Analyze external elements of Sacombank
2 Analyze internal elements of Sacombank
CONCLUSION
REFERENCES
Contents CONTENTS
1.Analyze external elements of Sacombank
2 Analyze internal elements of Sacombank
CONCLUSION
REFERENCES
Trang 3LIST OF ACRONYMS
ACB Asia Commercial bank
BIDV Joint Stock Commercial Bank for Investment and Development of Vietnam
ROA The return on assets
ROE Return on equity
CAR Capital Adequacy Ratio
NPL Non-performing loan ratio
INTRODUCE
1 General information of Sacombank
Vietnamese name: Ngân hàng Thương mại Cổ phần Sài Gòn Thương Tín
English name: Saigon Thuong Tin Commercial Joint Stock Bank
Abbreviated name: Sacombank
Head office: 266-268 Nam Ky Khoi Nghia Street, District 3, HCMC
Telephone: (+84 8) 3932 0420
Fax: (+84 8) 3932 0424
Email: info@sacombank.com
Website: www.sacombank.com.vn
Date of incorporation: 21 December 1991
Chartered capital: VND10,739,676,640,000 (as at 31 December 2012)
Date of listing: 12 July 2006
SWIFT code: SGTTVNVX
Tax code: 0301103908
2 Mission of Sacombank
Constantly maximize value for customers and shareholders
Bring value to staff in terms of career development and wealth
Contribute to the development of the community
3 Vision of Sacombank: To be the first modern universal retail bank in Vietnam and the region
4 Products and/or services
Receipt of demand deposits, term deposits, savings deposits and other types of deposits
Issuance of certificates of deposit, bills of exchange, bills of credit, bonds for raising funds domestically and abroad
Grant of credit in the form of:
Lending;
Discount and rediscount of commercial instruments and other valuable papers;
Bank’s guarantee;
Credit card issuance;
Domestic factoring and forfeiting; international factoring and forfeiting with respect to banks allowed for international payments;
Other forms of credit granting upon approval from the State Bank of Vietnam
Opening of payment accounts for customers
Provision of payment facilities
Provision of the following payment services:
Rendering domestic payment services, including cheques, payment orders, banker’s orders, bank collection, letters of credit, banking cards, entrusted collection and payment services;
Trang 4 International payment services and other payment services upon SBV’s approval.
5 The market
Up to date 10/03/2013, Sacombank has 422 outlets in the Vietnam, Laos, Cambodia, 780 ATMs and 4,091 POS machines Besides, Sacombank has established correspondent
relations with 811 agent 14 329 banks in 84 countries around the world to implement the international payment transactions
(Journal of Internal Sacombank – web www.Sacombank.com.vn)
ANALYZE BUSINESS ENVIRONMENTS
1 Analyze external elements of Sacombank
b) Macro Environment
Political Environment (P)
o The political situation in Vietnam is stable that gives favorable conditions for foreign investors to invest in Vietnam
o financial and monetary policy of the State Bank of Vietnam has not been consistent, has ongoing small changes to impact on the operation of the business of credit institutions
economic environment (E)
o Although in recent years, the Vietnamese economy has been difficult, it can be evaluated to have much potential recovery
o Vietnam which is a developing economy is a good opportunity for the operation of the bank providing financial services
Social Environment (S)
o Vietnam's population is young that creates opportunities for the development of financial products and services of modern banking
o Literacy is increasing and diverse that will be the challenge for the field of financial services providers
Environmental technology (T)
o Current Internet systems are evaluated fairly common for people in Vietnam bank That is an opportunity to deploy the product electronic banking services to customers
o System information technology is also developing a strong challenge for financial institutions to continuously upgrade information technology systems in order to compete with rivals providing modern services
The natural environment (E)
o Advantages: climatic conditions and natural in Vietnam is very convenient for the economic development of agriculture, fisheries and forestry products
o Difficulty: Vietnam is frequently affected by floods and storms It impacts negatively
on risk assets, economic people in particular and the economy in general
Environmental Law (L):
o Vietnam's legal system is not clear, the common law has not added together and synchronized That leads to contain many legal risks when disputes arise
o Too much text, conflict between decrees c) Micro environment
Analyze current competitors
o Sacombank identifies competitors include the following 3 groups The table compares the strengths and weaknesses of competitors
1 A group of
state-owned
commercial
banks:
− Mechanism of attractive loan rates
− These have prestigious brand and a long year for financial
− The ground based, asynchronous design Not many network operations Communication has not been
Trang 5No Group Bank STRENGTHS WEAKNESSES
Vietcombank,
BIDV,
Agribank ,
Vietinbank…
markets VN VCB is particularly good at international payment currency exchange rate mechanism
− Agribankhas a largest network in Vietnam
− Financial scale and large profits
− The Sun is the ruling decentralization in high bank transactions
focused
− Do not have good customer care service
− The process to complete the transaction and complete records also takes more time
− Organization structure and mechanism of action has not flexible time
− Products and services are not rich diversity No package to meet the needs of the plan
• Banks Group focuses on customer relations and general public company, the business capital of the state, the large-scale enterprises in the country However, this trend is gradually shifting to small and medium customer relations and individual customer
• There may be, the incentives from the State, the source of cheap loans from foreign financial institutions
2 Group of
joint-stock commercial
banks have scale
similarity: ACB,
Techcombank,
Eximbank,
DongAbank
- There are no significant differences in terms of policies, products and services, transaction time, interest rates, fees, terms and preferences including the business office
- ACB: Largest network in HCM City The ability to provide the best service quality
- Eximbank has the advantage of international liquidity and exchange rates
- Techcombank has the great advantage of the true support of HSBC
- Network and brand of Techcombank, Eximbank, DongABank not by Sacombank
- ATM Systems Techcombank, Eximbank and DongAbank do not accept all cards on the market
- ACB, Techcombank, eximbank and DongAbank do not have synchronous development of the Company and its subsidiaries to provide products and services packages to customers
- No development outside VN market
• The development of the Group's bank: retail, serving the diverse needs of customers Development of the largest private corporations in the country and the region
• Flexibility in operation mechanisms and rapid restructuring in response to changes in the economy and modern trends
• The strong rise of the bank group is recently both in terms of total assets, profits, quality and quantity of the active transaction
Trang 6No Group Bank STRENGTHS WEAKNESSES
3 Group of Joint
Stock
Commercial
banks have
smaller:
NamAbank, HD
Bank, VP Bank,
VIP Bank,
AnBinhBank…
- Mechanism of deposit rates, the promotions, gifts is very competitive
- Conditions for more liberal credit
- Capital increase after increasing
to 3,000 billion, creating more conducive to speed
- Products and services are not rich to meet the diverse needs of customers
- Network activity is very low, less prestigious brands, small headquarters operation, personnel quality is not high
- The organizational structure, processes, regulations is not perfect Not high quality personnel
- Is in the process of formation and perfection towards retail banking
- Meet "maximum" needs to retain and attract customers
- Accept the risk to maintain profitable operations
- To develop and exploit the corner, niche market
Analysis of customer pressure
o With the development of information technology, communications and high competitive level of competition has created favorable conditions for increasing customers’ comparison between the organizations The customers will choose the one providing the best price of products and services package for them
o The development of economic enterprises in the country relies heavily on loans to high risk levels
o The scam tricks of customers is increasingly sophisticated, leading to potential risks for the bank's operations
Analysis of supplier pressure
o The difficulties of real estate market and stock market influences negatively on raising capital
o Some credit institutions owning small capital have unhealthy competition That has impacted prices of capital
Analysis of potential competitors: the International Finance Corporation increasingly joined largely and deeply into the Vietnamese market and it is a big challenge for credit institutions in the country in general and for Sacombank in particular
2 Analyze internal elements of Sacombank
a) Strengths
The most extensive network of commercial banking shares
The average age of the staff are young and active
The system of policies, regulations and procedures in the operation of Sacombank is clear, transparent
The financial system is healthy, good liquidity
System information technology is good
Sacombank offers a variety of financial products and services
b) Weakness
Cannot compete on price with the state-owned banks
Trang 7 Workforce is young, dynamic but lacks practical experience as well as the ability to predict high risk in the financial sector
Staff supporting business accounted for 60% of activity That showed inefficient labor productivity
Cost control activities are not well
SETTING STRATEGIC OBJECTIVES
Since 2012, Sacombank has conducted comprehensive thorough restructuring In terms of corporate governance, Sacombank conducted a restructuring from financial portfolio to business model As for the Banks Development Strategies for the 2011-2020 period, it will persistently pursue the orientation “To be the first modern universal retail bank in the region.” The Bank’s seven groups of strategic objectives continue to be performed, but with proper adjustments in terms of priority level and schedule of implementation in line with actual conditions
a) Human resources strategies are critical to the success of any organization, including
Sacombank In 2012, the Bank continued to boost human resources training and improvement
in order to improve employee productivity and selling skills
b) Information technology strategies aim to ensure information technology is the foundation
for modernizing the Bank’s network, expanding business partnerships and increasing utilities of products and services, as well as boosting the development of card and electronic banking products and services for strong growth in future The objective of improving employees’ productivity will be achieved through utilising the technology infrastructure The most important thing is to accelerate the progress of implementation of data exploitation projects in support of corporate governance, risk management, customer relationship management and effective resources allocation
c) Financial strategies continue to develop a low-risk and sustainable financial structure The
Bank’s Asset- Liability portfolio will be strongly restructured in order to increase the percentage
of profitable assets, improve the imbalance of terms between liabilities and assets, and improve the efficiency of use of capital resources through concentrating capital resources on core businesses Furthermore, the efficiency of use of capital resources must be properly calculated and specifically analyzed for each business and each product line to boost the performance
d) Distribution channel strategies are implemented with the aim of strengthening and
developing the existing network, especially the network of Transaction Offices, in order to increase business activities, improve competitive edge, gain market share and expand market coverage This is the period of improving the quality and efficiency of the distribution network
In the short term, Transaction Offices will be upgraded into “miniature branches” thus increasing competitiveness and business performance in each geographical area
e) Business strategies will focus on retail activities, development of the personal customer base
in order to create a stable basis for business activities Full package selling programs and increases of utilities for customers will be prioritized in order to maximize value to the customer The target is that 100% of customers use at least two products or services of Sacombank In addition, marketing strategies will be managed on a centralized basis, and internal and external communications will be increased to promote the brand and corporate culture of Sacombank
f) Product and service strategies aim to improve the retail objective with a gradual increase in
the percentage of service incomes in the income structure Products and services must serve the objective of maximizing use of products and services by customer and are designed with multi-utility features in order to increase the frequency of use by customers Especially, products and services must be unique and distinctive to improve the Bank’s competitiveness in the market, thus resulting in growth breakthroughs for the Bank
g) Governance strategies continue the restructuring of the Bank’s organization for leanness
and efficiency, an increase in the percentage of resources used for the sales force to improve marketing and product distribution capabilities In the centralized governance model from the Headquarters to each business location, intermediate-level management will be enhanced; checks and corrections will be boosted; and alerts and self-checks will also be promoted in order for making proper decisions
SWOT ANALYSIS
1 Strength
Trang 8 Most extensive network of commercial banking shares
The financial system is healthy, good liquidity, large scale, strong financial strength
Provide a lot of financial products and services
2 Weaknesses
Workforce is young, dynamic but lacks practical experience as well as the ability to predict high risk in the financial sector
The control of production costs is not good
Scale capital, management capacity is still modest compared with the integration requirements
The marketing of products and services is not really effective, and make a difference
Having the right direction for investment services activities but not effective
3 Threats
The Vietnameseenterprises are mostly small and medium enterprises and principally operate based on loans that makes high risk levels
Deposits of economic organizations and residents are mostly short-term funds That will limit the use of long-term capital
The trend of developing non-credit services segment towards less risky revenues is not good
Tighten monetary policy is forecasted to continue to make difficult for banks
4 Opportunities
Young and large population structure is the opportunity to develop modern financial products
Facilitate to expand partnerships, cooperate and associate with foreign banks
Import and export activities of Vietnam creates favorable conditions to attract new capital
Proportion of population using financial and banking services in Vietnam is low, so the potentiality of industry is high
SWOT model combines
Opportunities Threats Strength SO:
and abundant workforce, and systems of modern information technology to develop financial products and services
- With big brands in the domestic market, this is an opportunity to collaborate with foreign banks on all aspects
ST:
network system to increase cheap mobilization to produce
competitiveness with the state-owned and international banks
products to increase revenues to limit credit risk
Trang 9- Associatewith the
institutions to have access
to the advanced technique
to minimize risk, enhance development of non-credit products and services
business staff directly to increase productivity and limit costs
- Banking activities in the current period must comply with the motto "cautious - retail -dispersed" to minimize risk and have sustainable development.
SELECTING THE STRATEGICS
1 The general objective
Reaffirming "Sacombank become multifunctional retail banking - top modern banks in area"
2 The view direction
With the results are not as expected after 2 years of relentless efforts for deployment of strategy development phase from 2011 to 2015, Sacombank is necessary to look back and evaluate the development process, to adjust changes appropriate strategy by focusing on quality, but remained steadfastly retail banking model Here are the main strategies to implement for the route in 2011 - 2015 and vision to 2020
labor productivity, creating an environment for every employee to dedicate through transparent and fairness remuneration policy equal opportunities for advancement and Intimacy - solidarity development
ii Banking technology strategy: maximize functionality of T24 core system technologies and have appropriate investment in information technology to serve business strategies and modern management of the bank; make modernization become a key duty to enhance labor productivity and optimize performance of the transaction
iii Financial strategy: continue the growth in total assets and restructure Liabilities- Assets
to be oriented increasingly
sustainable development: (a) Focus on mass customers, increase mobilization from resident and boost dispersion of lending, (b) be interested in credit quality, enhance risk management, (c) focus on developing product and improve the quality of customer service to create a sustainable competitiveness.
v Market Strategy: Take advantage of the network to enhance competitiveness, ensure growth which is safe - efficiency - sustainable: (a) transition from developing in width to focus in depth, (b) enhance the scope and effectiveness of each transaction
vi Strategic governance: ensure all aspects of the organization and operation of Sacombank to be in control of the executive apparatus
vii. The strategy of development of significant financial targets in period 2014 – 2020
No Target Average / year Year 2020 (million
VND)
I Equity
In particular, the charter capital
11%
12%
52.500
35.300
III Total deposits
In particular, the organization mobilized
from economic and population
18%
Trang 10No Target Average / year Year 2020 (million
VND)
IV Total loans to customers 18% 365.000
VI Loans and advances / total assets 76%
VII Of earning assets / total assets 93%
VIII Operating expenses / total net income 46%
3 Implementation strategy
i Roadmap
No Work Implementing
Entity
Support Leader in charge Completion
time
1 Adjust the strategy
development phase
Sacombank 2014 - 2018
2020 views
Planning Department
The related departments
Deputy General Director in charge
of finance
12/2013
2 Strategy development
phase region 2014 - 2018
with a vision to 2020
The regional office
Planning Department
Regional Director 1/2014
3 Strategic development of
the array, banking rooms,
card center
The provision, card center
Deputy General Director in charge
of, division, center card
1/2014