HOÀN THIỆN CHIẾN lược KINH DOANH NGÂN HÀNG TM cổ PHẦN đại DƯƠNG2

CAPSTONE PROJECT REPORT COMPLETING BUSINESS STRATEGY FOR OCEAN JOINT STOCK COMMERCIAL BANK PERIOD OF 2011-2015 Hanoi, 2011 TABLE OF CONTENT CHAPTER .9 1.1Overview about strategy and business strategy 1.1.1Concepts of strategy 1.1.2Business strategy 13 1.1.3Typical features of business strategy .13 1.1.4The role of business strategy 13 1.1.5Strategic Management Procedure 14 1.1.6Difficulties of strategic management .15 1.2Strategy commitment: Vision; Mission; Core value 16 1.2.1Vision .16 1.2.2 Mission 16 1.2.3Core value 16 1.3Strategy analysis .17 1.3.1Analyzing macro-environment 18 1.3.2Analyzing sector environment .21 1.3.3Analyzing internal environment 24 1.4Strategies and approach to strategy 25 1.4.1Corporate level strategy 25 1.4.2Business unit level strategy 26 1.5Implementation and consideration 27 1.5.1Organization structure 27 1.5.2Control system .27 1.5.3Implementation roadmap .28 CHAPTER .29 REALITY OF BUSINESS STRATEGY IN OCEAN JOINT STOCK COMMERCIAL BANK (OCEANBANK) 29 2.1Overview about Ocean Joint Stock Commercial Bank (OCEANBANK) .29 2.2Trading results of Ocean Bank .37 2.2.1Situation and trading results in 2010 .37 2.2.2Lending activity 38 2.2.3Capital mobilizing over years 39 2.2.4Lending over years 40 2.2.5Trading results over years 41 2.3Analyzing and assessing current strategy of Ocean Bank .42 2.3.1Strategic commitment 42 2.3.2Influences of macro-environment to business activities of Ocean Bank .44 2.3.3Influences from sector environment 47 2.3.4Competitive pressure within industry 51 2.4Current business strategy of Ocean Bank 52 2.5Consideration about implementation of business strategy in Ocean Bank 53 CHAPTER .56 COMPLETING BUSINESS STRATEGY OF OCEAN JOINT STOCK COMMERCIAL BANK IN PERIOD OF 2010-2015 56 3.1Development orientation of Ocean Bank 56 3.1.1SWOT analysis of Ocean Bank 56 3.1.2Development orientation of Ocean Bank 59 3.2Completing strategic commitments of Ocean Bank 62 3.3Complete business strategy in period of 2011-2015 62 3.4Solutions to complete strategy of Ocean Bank 63 3.4.1Solution on human resource 63 3.4.2Solution on technology .65 3.4.3Solution on capital 66 3.4.4Solution on market 67 3.4.5 Solution on improving risks management 69 3.4.6Solution on expanding business areas 69 3.5Roadmap for strategic solution enforcement in OceanBank 70 3.6Recommendation 71 3.6.1Regarding to related authorities .71 3.6.2Regarding to Ocean Bank 71 CONCLUSION 72 REFERENCES 72 List of tables List of figure Figure 1.1: PEST model in macro-environment analysis 18 List of chart List of symbols and abbreviation ATM ĐVT GDP PGD NHTM NHTMCP NHNN NXB OceanBank TCTD Automated teller machine Unit Gross Domestic Product Dealing room Commercial bank Joint Stock Commercial Bank State Bank Publishing Ocean Joint Stock Commercial Bank Credit organization USD VND WTO US dollar Vietnam dong World Trade Organziation OceanBank - Professional - Enthusiatic - Dedicated INTRODUCTION After studying in Global Advanced Master of Business Administration Program (abbreviation as GaMBA) jointly organized by Center for Educational Technology and Career Development – Hanoi National University and Griggs University – The US; we are group – class GaMBA01.M1009 the capstone project including members as: No Full name Gender Le Minh Doc Male Nguyen Đang Song Male Quyen Hang Thi Thu Femal Title Chief of Head office Secretariat Manager of Planning Department Deputy Manager of Corporate Consultancy Department, Office Ocean Joint Stock Commercial Bank Vietnam National Shipping Lines Thang Long Securities Joint Stock Company Investment Banking Service Van Tien Thanh Male Expert Vietnam Bank for Foreign Trade – Vinh Phuc Branch Members in group 09 conduct the topic in line with the theme: "Completing business strategy for Ocean Joint Stock Commercial Bank in period of 2010 – 2015” with the expectation to complete business strategy of Ocean Bank Furthermore, we are to find out solutions aimed at improving business efficiency of the bank following years PREFACE The imperativeness of topic As we know, in recent years, the Commercial Banks of Vietnam have developed rapidly in both size and quality But in the context of Vietnam's economy in international economic integration, it has been set for the economy in general and the commercial banks in particular to face up huge challenges The increase in the number of banks shows that the competition is getting fiercer, especially in present economic and financial difficulties It provides opportunities as well as threats for commercial banks in the integration process To overcome these challenges and capitalize on the opportunities, it requires commercial banks to identify the strengths, weaknesses Furthermore, they must be really hard to make appropriate business strategy for each stage period, consistent with the trend on the principle that the interests and sustainable development, contribute to national development as well as the Bank Ocean Joint Stock Commercial Bank (Ocean Bank) is one of the banks were rated as having outstanding growth in recent years, the bank is young but solid, especially when the Vietnam Petro became strategic shareholders, strategic partners of the Bank since January 2009 In order to go to a stable and multi-bank in the future, it is required to have completion in business strategy Therefore, they are able to go on right direction on the path of integration, especially during the Vietnam's economy and the world economy is experiencing transmited difficulties As a result, Ocean Bank must understand them by means of analyzing business activities as well as catching actual market Since then combine the strengths and weaknesses, as well as opportunities and threats to bring the business growth, ever-improve strategy and achieve its business strategy Because of the imperativeness in completing business strategy of bank as well as the importance of business strategy in operations of commercial banks in general and Ocean Joint Stock Commercial Bank in particular, group 09 selected topic in line with the theme: “Completing business strategy for Ocean Joint Stock Commercial Bank in period of 2011 – 2015” to research in our capstone project Real foundation In this context, the joint-stock commercial banks in general will inevitably face many difficulties due to the impact of the global economic downturn as well as the competition is getting stiff and spread on the domestic and international currency market Banking activities play a particularly important role in the economic development of Vietnam in the current period Generally, the operation and efficiency of the banking sector directly affects to the development of the entire economy of Vietnam In the process of privatization, globalization and international economic integration, the banking sector contributes significantly to the stability and development of each country Vietnam officially joined the World Trade Organization with the commitments of liberalization for foreign banks which have branches with 100% foreign capital in Vietnam Thus, the number of banks in Vietnam is increasing and the competition of the banking sector will be more intense Previously, banks were only subject to the competition from the domestic banks or venture banks, and then later the competition has been increased with the development of the banks and foreign financial group with the strong capital resources and older business capacity This has warned the risk of narrowing the market for commercial banks in Vietnam It requires each commercial bank of Vietnam is that each bank has to have the right business strategy which is appropriate for each stage Because the strategy is a very important part in the process of leading banks, and helps banks have appropriate steps to achieve the proposed business efficiency Researching objectives  To systematize basic knowledge and theory of strategic management and strategy  building To analyze and assess the enforcement for strategy in Ocean Joint Stock  Commercial Bank over the past years To introduce solutions implementing strategy of Ocean Joint Stock Commercial    Bank in period of 2011–2015 Researching subject and scope Subject: Ocean Joint Stock Commercial bank Researching scope: Bank market in Vietnam in phase of 2010- 2015 Researching time: we conduct this assignment from 17 July 20011 to 10 August 2011 Researching method  Method of collecting date  Data provided by Ocean Joint Stock Commercial Bank includes in capital, asset, trading results over years as well as related information  Information about banking sector and market of banks in Hanoi are collected from internet and newspaper  Method of analyzing data  Use available researching method (secondary data) to consider size, structure and movement of market  Comparison method: this is popular method in analyzing problem Contents of this method are to consider each criterion in both absolute and relative way  Particular consideration method: be applied when analyzing each problem, each criterion, each phenomenon (with unusual fluctuation) to assess and find out nature of problems  Comprehensive consideration method: is general consideration about all operational activities of the bank This method is also following particular time and phenomenon as well as problem to general and comprehensive consideration Phenomena and problems are set particularly but in general relation  Reasons for selection of researching methods They refelect fully and accuratly operational activities of unit and assess reality of business strategy From that, they introduce solutions completing business strategy of Ocean Joint Stock Commercial Bank in period of 2011-2015 Expected results  Directorate of Ocean Joint Stock Commercial Bank consider reality of trading activities in period of 2011–2015 in complete way for reaching better results in the future  Commercial banks in Vietnam can consult with suitable references  Enterprises and customers use services of bank Structure of capstone project: This capstone project includes three chapters:  Chapter 1: Theories and researching method about strategic management of  enterprise Chapter 2: Reality about business strategy of Ocean Joint Stock Commercial  Bank Chapter 3: Complete business strategy of Ocean Joint Stock Commercial Bank in period of 2011 – 2015 Functions of members in group With above contents, group divides functions for each member as following: Members Chapter Section Le Minh Doc Introduction Chapter 1.1 Chapter 2.1; 2.2; Chapter 3.1;3.4 Nguyen Dang Song Chapter 1.3; 1.4 Chapter 2.3;2.4 Chapter 3.5; Quyen Thi Thu Hang Chapter 1.5 Chapter 2.5 Chapter 3.2;3.3 Van Tien Thanh Chapter 1.2 Chapter 3.6; Conclusion CHAPTER THEORY ABOUT STRATEGIC MANAGEMENT OF ENTERPRISE 1.1 Overview about strategy and business strategy 1.1.1 Concepts of strategy There are many concepts about strategy, in the limit of this capstone project; we would like to introduce some concepts following: According to the normal meanings, the strategy (derived from the Greek meaning: strategos) is a limitary term used to refer to the arrayed plans and force distribution with the goal of defeating the enemy Carl von Clausewitz – a military planner of the 19 th century- described the strategy as “outlining the war plan and combat campaign plan These campaign plans will decide the participation of each individual” More recently, a historian, Edward Mead Earle, described the strategy as “the art of control and use the resources of a nation or a coalition of countries aim to ensure and increase the efficiency for their own essential rights” Nowadays, the business organizations also apply the concept of strategy which is similar to the military Strategy is a plan of controlling and using the organizational resources such as human, property and finance and so on aiming to improving and ensuring their own essential rights Kenneth Andrews was the first person gave the typical ideas of the classical book named as “The Concept of Corporate Strategy” He said that the strategy is things which an organization must based on the strong points and weak ones in the context of opportunities and threats Strategy is the direction and scope of the actions of an organization in the long term to achieve the business advantage through the identification of current resources which can be used in a business environment to satisfy the demands of market and ensure the benefits for the related stakeholders To be more clearly, the aims of a strategy are:  To achieve the business objectives in the long term (business and social responsibility) sustainably  The market or market segmentation which company will be in business, the business strategies will be applied  How to prevail over the competitors in those markets with the specific customers  Resources need to be used (human, skills, assets, finance and technological expertise…) in order to achieve the goal  The potential risks from the outside can affect to the implementation of strategies: environment, competition, politics, resources and risk prevention plan  An enterprise will bring the values for business owners and society when this enterprise is a member In term of process, strategic management is considered as a process of management including: Establishing a strategic vision (strategic vision), setting the goals, preparing a strategy and implementing that strategy and adjusting the strategy to be proper with the circumstances Establishing and deciding the strategy toward targets are not enough, the strategy must give the specific actions in the specific time and phase with specific resources to achieve 10 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn GaMBA01.M1009 – Group No: 09 - Policy on financing and credit of the State is more and more completed Information technology has rapid development; the connection of service is convenient, banking services are diversified There are many opportunities to exploit with multilateral cooperation with partners as financial institutions, economic groups and national as well as foreign enterprises  Threats: - The policy of the state is still insufficient and lacks stability especially in currency and credit - - The direct competition of national rivals is in growing Experience and specialization in communication, customer care sometimes make customer unsatisfied; it may lose opportunities for development Raising capital is increasingly difficult due to inflexible policies and the - increasing competition among banks The advantage of the brand is not absolute when more and more brands are developing and penetrating into market - Competition with other financial institutions on alternative products such as Post Office, insurance companies, financial leasing companies 3.1.2 Development orientation of Ocean Bank As analysis in Chapter 2, we agree with the goals that Ocean Bank built in 20112015 period With the objective to 2013, building Ocean Bank becomes multifunctional and modern bank It has size equivalent with big joint stock commercial bank in Vietnam It has strong enough financial capacity, customer network, branch system, human resource and technology to create the most favorable conditions for transferring into leading bank in period of 2013 – 2020 Therefore, Ocean Bank has strategic commitment to be one of Vietnam’s top 10 banks in 2010 with strong financial capability, nationwide branch network, perfect service and product system, and skilled human resource and state of the art technology Apart from above main goals, we propose some additional goals as following: - Developing and fostering the management machinery in accordance with manufacturing and professional way Organizing courses domestic and abroad for direct managers and officers directly communicating with customers 59 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn GaMBA01.M1009 – Group No: 09 - Upgrading and renovating system, equipment, and infrastructure; applying advanced technologies in management and administration Changing the structure of revenue per income from services in accordance with increase in comparison with present - Developing and implementing specific business strategies, safety co efficiencies and banking operations management standard in accordance with international rules We introduced estimation with data for trading results of Ocean Bank up to 2015 aimed at making the bank into top 10 Joint Stock Commercial Banks as follow: Table 3.2: Business strategy of Ocean Bank up to 2015 60 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn GaMBA01.M1009 – Group No: 09 No Criteria Total asset Charter capital Capital mobilizing Lending account outstanding Bad debt rate Earnings before tax Average income /year 2010 Gained value (billion VND) 2011 Annual Gained average value growth (billion rate VND) against previous year (%) 2012 Annual Gained average value growth (billion rate VND) against previous year (%) 2013 Annual Gained average value growth (billion rate VND) against previous year (%) 2014 Annual Gained average value growth (billion rate VND) against previous year (%) 2015 Annual Gained average value growth (billion rate VND) against previous year (%) 55.139 18 65.000 20 78.000 20 93.600 30 121.680 37 166.700 3.500 14 5.000 15 5.750 15 6.600 15 7.600 20 9.120 50.427 17 59.000 20 70.800 20 84.960 20 101.952 20 122.342 17.631 19 20.980 19 24.966 19 29.710 19 35.355 19 42.072 1,67