485- NguyenMinhNghi- Assingment 1

ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 1: Business and Business Environment Submission date 26/11/2020 DateReceived1stsubmission Re-submission Date DateReceived2ndsubmission Student Name NGUYEN MINH NGHI Student ID GBC19293 Class GBC0804 Assessor name DUONG QUE NHU Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism I understand that making a false declaration is a form of malpractice Student’s signature MINH NGHI Grading grid P1 P2 P3 M1 M2 D1 Summative Feedback:Resubmission Feedback: Grade: Assessor Signature: Date: Internal Verifier’s Comments: Signature & Date: Table of Contents EXECUTIVE SUMMARY I INTRODUCTION II OVERVIEW OF SELECTED ORGANIZATION 10 III TYPE AND PURPOSES 11 Type 11 Purposes 13 IV SIZE AND SCOPE 15 Size 15 Scope 17 V FUNCTIONS 19 VI CONCLUSION 24 REFERENCE 25 ASSIGNMENT 1- Internal environment of business EXECUTIVE SUMMARY In technology development, the tendency to invest equity in a project or company that is favored by large companies, which Wells Fargo is also doing As a Wells Fargo analyst business, I write this report to analyze and provide research information about Techcombank, which is a new opportunity for Wells Fargo to invest in Considering Techcombank's annual report and earnings for 2019, it's chosen to explore and grow in the future This six-part report will provide complete information about Techcombank and the reasons why Wells Fargo should not ignore the opportunity to invest in Techcombank After a detailed analysis of Techcombank, I made some important findings of the company This is a private joint-stock company with over 76% foreign investment and operating for profit In addition, the company was listed on the stock exchange Furthermore, Techcombank is a large enterprise with a scientific and divisional organizational structure The company's operating goals are set based on the type and size of the business and in accordance with the function of the organizational structure chart, which helps Techcombank easily achieve the goals set out in 2019, and goes further in the years 2020 and 2021 There are numbers, figures, some online information provided by the website articles, and the citations to support this report are listed in the reference In addition, the images will also be listed and quoted below them and in a reference in clearly way so that they represent ownership knowledge Figure 1: The main logo of Techcombank’s company Source ( https://techcombank.com.vn/home ) I INTRODUCTION The report is intended to analyze information about the banking firm Techcombank to see if Wells Fargo should invest in it Techcombank is one of the largest banks in Vietnam and is a leader in the banking industry with the return to assets ratio in the financial statements in 2019 Therefore, Techcombank promises to provide many prestigious banking services and most credit in Vietnam's banking industry nowadays As a result, Techcom is a "bright candidate" that could bring in huge profits for Wells Fargo if our company invests in it That is the reason why I choose Techcombank as an investment opportunity that Wells Fargo should consider This report will be structured into six parts The first part is the introduction, the second part will overview general information about the company, the third part describes the type and purpose of the company The next section will clearly describe the size and scope of Techcombank's operations to better demonstrate and understand what its target customers are After that come the functions of Techcombank Throughout this report will provide the relationship between the characteristics and objectives of Techcombank Finally, the conclusion will wrap all the main points and will be firmly concluded at the end of the report Figure 2: The Techcombank’s company Source (https://techcombank.com.vn/home) II OVERVIEW OF SELECTED ORGANIZATION There is some biographical information about Techcombank including name, logo, address, contact information, and phone number: Figure 3: The table of Techcombank summary information Source ( https://techcombank.com.vn/home ) The company is called the Vietnam Technological and Commercial Joint - Stock Bank, abbreviated Techcombank It is considered as one of the large and strongly growing joint-stock banks in Vietnam Headquartered in Hanoi, after 27 years of operation since its establishment, Techcombank currently has 314 transaction points spread across 25 major cities and provinces of Vietnam, including Can Tho city Techcombank's logo is quite simple when it is made up of two interlocking red squares and creating a smaller white square in the middle The two red squares create a solid, and stable position, just like Techcombank's commitment to its customers "Keep your trust" In addition, according to Eastern philosophy, the two squares with the side "bowls" represent wealth, prosperity, and luck The small white square in the middle represents the bank's 10 continuous development, wanting to create more and more material and spiritual values for the society, combining three benefits: individuals, collectives, and communities The overall Techcombank logo is a harmonious combination of the symbol with the brand name, consistency in a strong, solid style, contributing to a simple but meaningful impression of the brand It can be said that the Techcombank logo is simple but carries many messages from icons to colors, creating a sense of stability, where customers can confidently send their trust III TYPE AND PURPOSES Type The fact that Techcombank always has a specific financial report on numbers, which is shown in the annual report, and the annual always clearly mentioned and after-tax profits (the chart is quoted below) Thereby, it is indisputable that Techcombank is a profitable working organization Figure 4: The chart of outstanding financial numbers of Techcombank Source ( https://www.techcombank.com.vn/annualreports2019/chi-so-tai-chinh-noi-bat-EN.html ) 11 According to the annual report structure and documentary information of the shareholders meeting from the investor section in Techcombank in 2019, it can be shown that Techcombank is a private organization with 100% capital of investors, in whom domestic investors accounted for 22.5% and foreign investors are 77.5% Figure 5: Shareholder structure and changes in The Techcombank journey shareholders’ equity Source ( https://www.techcombank.com.vn/investors/annual-reports ) Besides, when looking at the image extracted from the HOSE (Ho Chi Minh City Stock Exchange) below, it can be inferred that Techcombank is a publicly listed company with transaction code TCB 12 Figure 6: Techcombank on the HOSE stock exchange board (16/11/2020) Source ( http://stockboard.sbsc.com.vn/apps/StockBoard/SBSC/HOSE.html ) Purposes According to Techcombank's criteria outlined on their website, their vision is to become the best bank and leading enterprise in Vietnam Besides, the company has a mission to become the most trusted and selected financial partner of customers thanks to its ability to provide a full range of financial products and services based on always considering the customer as the focus, building the best working environment for employees with many opportunities to develop capabilities, contribute value and build successful careers and ultimately to provide shareholders with attractive, long-term benefits through the implementation of a strong rapid business development strategy in parallel with the application of rigorous standard corporate governance and international standard risk management practices 13 Figure : Techcombank’s vision, mission, core values Source (https://www.techcombank.com.vn/investors/annual-reports) Techcombank has also mentioned the company's core values over the years as its customer focus First, emphasizes that Techcombank values each customer and always strives to provide products and services that best meet customers' needs Second, continuous improvement means a company is good but can always be better, so the company will never stop learning and improving Next, the spirit of coordination means that Techcombank trusts its colleagues and works together to bring the best out of the bank Besides, human development means that the company creates conditions for its employees to maximize the capabilities of each individual and reward those who achieve achievements Finally, commitment to action means that the company always ensures that the committed work is completed Mentioning the objective, Techcombank's plan for the next five years is more resilient and superior In the next five years, what Techcombank is building on the foundation today will begin to pay off and go deeper For example, the State Bank wants the Vietnamese financial system instead of relying on the cash flow of banks to lend, banks should issue more bonds to bring to the outside financial markets To achieve that, the bank is now focusing on building 14 systems, building people, and establishing domestic and foreign relationships so that the market can consume the bonds (Nguyen Le Quoc Anh-CEO’s Techcombank,2019) Techcombank has gradually built up the market When the market is more diverse, the depth gets better The company has started to just that, and five years from now, when the systems and relationships begin getting big enough, the engine will run Besides, the main purpose of Techcombank is still to serve customers the best and most effective way and be the financial partner that domestic and international customers want to develop together (Nguyen Le Quoc Anh-CEO’s Techcombank,2019) IV SIZE AND SCOPE Size Based on two financial tables extracted from Techcombank's 2019 annual report below, it can be seen that the total assets of the company are 383,699,461 million VND and the total equity is VND 62,072,767 million VND Besides, the total liabilities of the company are 321,626,694 million VND Pursuant to Decree 39/2018 / ND-CP, article six seven, eight, nine, eleven, an enterprise in the trade and service sector with an annual average number of employees is not exceeding 100, and a total annual turnover not over 300 billion is defined as a medium-sized enterprise Through that decree, a large-scale organization should have employees over 100 people and a turnover of over 300 billion VND Meanwhile, according to Techcombank's 2019 annual report, the company's total staff is 11,156 people, annual revenue is 14.1 trillion VND From the information given, it can be inferred that Techcombank is a large-size enterprise 15 Figure 8: The total assets, total shareholder’s equity and the total liabilities of Techcombank Source (https://www.techcombank.com.vn/investors/annual-reports) As analyzed, Techcombank is a big business, it is vital to ensure it fulfills its goals in 2020, which is better in 2019 although this year Techcombank has done very well and will have to outperform in 2020 With current large capital and investment from domestic and foreign shareholders, it is an advantage for Techcombank to develop, expand, and provide more services to cater to the needs of customers Therefore, it is undeniable that a company's size is also closely linked with the company's objectives, which affects the company's growth Currently, Techcombank is present in most large and small cities, with its current size, Techcombank can completely expand and develop in suburbs and retail provinces to reach closer to target customers to use a company service, for example sending a passbook with interest, it will be very appealing to people there Furthermore, Techcombank can use its available capital to analyze the needs of the target market, make a marketing plan, and hire 16 more professional and creative staff In addition, Techcombank has a human resource of over 11,000 people including managers and employees, especially they are always loyal, dedicated, responsible for their work, solidarity, and doing their best for the common goal of the company With the aforementioned size, they all create a strength for Techcombank, which makes it easy for the company to achieve its objectives and create a solid empire Scope OPERATING NETWORK: Techcombank has a head office located at 191 Ba Trieu Street, Hanoi and has no foreign headquarters However, Techcombank has two representative offices and 311 transaction offices in 2019 and currently has 314 transaction offices operating across 45 out of 64 cities and provinces in 2020 (Techcombank,2020) TECHCOMBANK’S THREE SUBSIDIARIES: First, Techcom Securities Joint Stock Company – Techcom Securities (TCBS) with two core businesses including Corporate Finance Advisory and Asset Management has become a profitable securities company, which was the second-largest and most effective operation in Vietnam in 2019 The second one is Vietnam Technological and Commercial Joint Stock Bank– Asset Management Company Limited (AMC), which is responsible for handling bad debts, overdue debts entrusted by Techcombank The last one is Techcom Capital Joint Stock Company – Techcom Capital (TCC) provides investment management and corporate finance advisory services including Business restructuring consulting, capital mobilization consulting and consulting Mergers and Acquisitions (M&A) (Techcombank,2019) 17 Figure 9: Branch network and subsidiaries of Techcombank Source (https://www.techcombank.com.vn/investors/annual-reports) According to geographic area, Techcombank's customers can be divided into three divisions: North, Central, and South Each region is divided into small parts: cities and suburban provinces In addition, customers are also segmented according to low, medium to high and very high-income levels Techcombank has identified the target market segment as residents living in urban areas with average wages or higher, small and medium enterprises and some large enterprises, especially are enterprises operating in the field of import and export 18 Figure 10: Transactions in Techcombank Source (https://www.techcombank.com.vn/about-us/media-corner/press-release/techcombank-nhangiai-thuong-ngan-hang-cung-cap-dich-vu-ngoai-hoi-tot-nhat-viet-nam-2016-tu-tap-chi-global-finance) The wide and diversified network of operations helps Techcombank raise the organization's brand awareness among customers Thereby, the company will also strengthen customers' confidence in Techcombank Once the company's reputation is maintained, the company will have a certain number of loyal customers and gain access to potential customers who choose Techcombank as a reliable companion for investment Thence, it creates more profits for the company Moreover, the three subsidiaries mentioned above also contribute to creating a good foundation to help customers feel secure in investing These factors help Techcombank achieve its goal of generating more profits and revenues, boosting capital size growth, and so on Especially, it helps to build the ecosystem and the popularity of the company in the future V FUNCTIONS The structure chart of Techcombank is shown below (Techcombank, 2019) Based on this structure, Wells Fargo can easily deduce that Techcombank has a division structure since each one acts as a center of profit 19 Figure 11: The structure chart of Techcombank Source (http://ceecvn.org/wp-content/uploads/2017/09/TECHCOM-Performance.pdf) Techcombank also has a more concrete structure from the CEO position to other parts of the company (Techcombank,2019) 20 Figure 12: The detailed company chart from the position of CEO in Techcombank Source (http://ceecvn.org/wp-content/uploads/2017/09/TECHCOM-Performance.pdf) Through Techcombank's organizational structure chart, I will present more about the functions of each department to help Wells Fargo better understand the functions of each department in Techcombank Firstly, the General Meeting of Shareholders is the highest authority to decide on important matters of Techcombank in accordance with the Law on Credit Institutions, the Law on Enterprises, and the Charter The General Meeting of Shareholders has the right to approve the development direction of Techcombank, and elect and dismiss Techcombank's members of the Board of Directors and Supervisory Board and exercise other powers The General Meeting of Shareholders includes all shareholders with voting rights The General Meeting of Shareholders is assembled annually mainly by the Board of Directors and may be convened on an extraordinary basis in some special cases Secondly, Techcombank's Board of Directors is the governing body of Techcombank, with members elected by the AGM The BOD has the role and responsibility of monitoring and making key financial and operating decisions, as well as creating a risk management strategy based on 21 recommendations from the Board of Management to achieve these goals Techcombank's strategy, aiming at the long-term success of Techcombank and bringing sustainable values to customers Thirdly, the Supervisory Board is elected, dismissed, or dismissed by the General Meeting of Shareholders of Techcombank The Supervisory Board oversees the Board to ensure the BOD performs its work in the best interests of Techcombank's shareholders in accordance with the applicable rules and regulations Techcombank established an Internal Audit division under the Supervisory Board to plan and conduct regular and extraordinary internal audits to monitor internal control, compliance, and risk management, report findings, and cases that need to be taken remedial measures for the Supervisory Board Last but not least, the Board of Directors manages Techcombank's day-to-day business operations The General Director is appointed by the Board of Directors and is on the tentative list approved by the Governor of the State Bank of Vietnam (Techcombank,2019) Referring to the advantages, plus points for Techcombank lies in the division structure The first advantage is the flexibility and easy adjustment of the company's parts This has to with Techcombank's objectives Because the current era is the digital age 4.0, the company's goal is to serve customers in the best way, expand the market, Techcombank wants to have a good service to meet the needs of customers Therefore, sometimes it is necessary to change the structure accordingly, for example, adding or removing any parts that help the company's progress evolve Next, the part structure is controlled by the performance of the parts This will help the good performers get recognized, providing long-term benefits for the company In addition, this structure also helps the company own strategic rights, specialize in the capabilities of each department in the company, and train the company's strategic perspective (Worthington & Britton,2014) On the contrary, this type of structure also gives the company a number of disadvantages such as duplication of central functions and part functions, which can increase operating costs because each part is an entity that operates separately and needs functional experts and good managers for each department Alternatively, parts will be fragmented and uncooperative The departments may see themselves as completely separate individuals from other departments and they will only be interested in achieving their goals instead of other parts of the company or pay attention to the main goal of the whole organization Therefore, there is a risk of losing 22 central control However, it can be ensured that with Techcombank's current capital and revenue, the implementation of this organizational structure is possible and potentially profitable For a company like Techcombank, this organizational structure is the most appropriate structure Additionally, the structural division and management that I analyzed above is another reason why I believe Techcombank is the right place to invest (Worthington & Britton,2014) From the above analysis, it can be seen that the company's division structure is scientific and reasonable and the advantages outweigh the disadvantages Each department and all members of the company are assigned their work and responsibilities appropriately for each different field This also brings many benefits to the company and makes it easier for the company to achieve its objectives in 2020 when Techcombank aims to outperform each day and focus on customer benefits to increase revenue and profit for the company For example, the technology department and the analytics department also play an essential role, making Techcombank proud to offer customers the greatest value and experiences through programs like free transtation, which attracts many customers According to a report by Techcombank in 2019 that electronic transfer service (E-Banking VND) is for individual and corporate customers or unlimited cashback when spending with Techcombank debit card (Debit Cashback) help the number of transactions at Techcombank, only individual customers, has increased 20 times in the past years, with the amount Techcombank paid back to customers is more than 600 billion through the policy of free transfer transactions Techcombank's success with E-Banking with zero VND in allowing customers to change their money usage has attracted many other banks, creating a cost-saving effect for people and businesses Making customers satisfied and trusting has helped Techcombank operate effectively for a long time and have a strong foothold in the current market One of the critical factors that determine a company's success is talented managers know how to organize, distribute, manage, track, supervise employees, and build interoperability Sometimes, they give employees a sense of comfort and enthusiasm at work to create high productivity They sometimes 'urge' employees to work and make them feel responsible for Techcombank Therefore, each member of the company has a clear understanding of what they need to do, what they will to achieve the company's success, which has helped Techcombank have a certain position in the market In addition, possessing a scientific and reasonable division structure diagram, with the correct management 23 and administration of the leadership combined with the professionalism and high responsibility in the work of the staff All of these strengths give Techcombank can stand firmly in the market and easily achieve the goals of 2020 and further goals in the future It cannot be denied that this is the reason why investing in Techcombank becomes more attractive and appealing VI CONCLUSION To draw the conclusion, one can say that the Vietnam Technological and Commercial Joint - Stock Bank (Techcombank) is a for-profit organization, which is the second-largest jointstock bank in the top ten most developed banks in Vietnam according to banktop.vn and ranked the third position in the top ten most profitable private companies in Vietnam in 2019 according to JP Morgan Techcombank has a clear vision, a good mission, bright core values , and ambitious objectives In addition, the world's prestigious organization JP Morgan has released its financial analysis report for 2018-2019, recognizing Techcombank as the bank with the highest ROA ratio in the Vietnamese banking system According to JP Morgan's calculations, Techcombank is one of the rare banks across the region that is making profits on both sides of the balance sheet and fee income is added to all allocated expenses This shows a more long-term view of profits JP Morgan also expects that the bank will continue to maintain profit growth, TCB shares will continue to outperform in the next 12 months (valued at VND 40,000/share) Subsequently, the organizational structure and functions are also identified in this report Based on Techcombank's objectives, strategy, and operations Wells Fargo can count on Techcombank to invest in the future because this is an investment opportunity that has real potential 24 REFERENCE TECHCOMBANK (2019) Annual report 2019 Available at: https://www.techcombank.com.vn/annualreports2019/indexEN.html?_ga=2.144012149.1350101134.1605489686-1005710708.1605057684 (Accessed: 21 November 2020) TECHCOMBANK (2020) Techcombank’s home Available at: https://techcombank.com.vn/home (Accessed: 21 November 2020) WORTHINGTON, I and BRITTON.C (2014) The Business Environment 7th Ed Harlow Pearson HOSE (2019) HCM Stock exchange 16 November 2020 http://stockboard.sbsc.com.vn/apps/StockBoard/SBSC/HOSE.html Available (Accessed: at: 21 November 2020) JP Morgan (2019) JP Morgan pointed out three reasons why Techcombank's ROA is at the forefront of the industry Available at: https://www.techcombank.com.vn/gioi-thieu/goc-baochi/bao-chi-noi-ve-techcombank/jp-morgan-chi-ra-ba-nguyen-nhan-khien-roa-cuatechcombank-dat-vi-tri-dan-dau-trong-nganh (Accessed: 21 November 2020) Decree No 39/2018 / ND-CP (2018) Regulations only regret some articles of the law to support small and medium enterprises Available at: https://thuvienphapluat.vn/van-ban/Doanhnghiep/Nghi-dinh-39-2018-ND-CP-huong-dan-Luat-Ho-tro-doanh-nghiep-nho-va-vua366561.aspx (Accessed: 21 November 2020) BankTOP (2020) Top 10 Largest bank in Vietnam latest updated 2020 Available at: https://banktop.vn/top-10-ngan-hang-lon-nhat-viet-nam/ (Accessed: 18 September 2020) 25 ... TECHCOMBANK (2 019 ) Annual report 2 019 Available at: https://www.techcombank.com.vn/annualreports2 019 /indexEN.html?_ga=2 .14 4 012 149 .13 5 010 113 4 .16 05489686 -10 05 710 708 .16 05057684 (Accessed: 21 November... ORGANIZATION 10 III TYPE AND PURPOSES 11 Type 11 Purposes 13 IV SIZE AND SCOPE 15 Size 15 Scope ... 2 019 annual report, the company's total staff is 11 ,15 6 people, annual revenue is 14 .1 trillion VND From the information given, it can be inferred that Techcombank is a large-size enterprise 15