In this paper, I will analyze the macroeconomic impact and impact of an organization and its business strategies, and moreover, I will evaluate and apply the results of an organization analyzing using the Porters Five Forces model for a given market area. More specifically, in order to do this research, I will apply the Bao Viet company to do the requirements in this exercise 1.
ASSIGNMENT FRONT SHEET Qualification BTEC Level HND Diploma in Business Unit number and title Unit 32: Business Strategy (574) Submission date Date received (1st submission) Re-submission date Date received (2nd submission) Student name Student ID Class Assessor name 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: Grading grid P4 M4 D1 Summative Feedbacks: Resubmission Feedbacks: Grade: Assessor Signature: Internal Verifier’s Comments: Signature & Date: Date: Contents I Introduction .5 II Propose at least two strategic plans as a set of strategic choices III Evaluate alternative strategies using various assessment methods IV Conclusion 12 V References .13 I Introduction Bao Viet Insurance Corporation (Bao Viet Insurance - Baoviet Insurance) is a member company with 100 capital investment by Bao Viet Finance - Insurance Group After nearly half a century of establishment and development (from January 15, 1965 up to now), Bao Viet Insurance is proud to be the oldest insurance company in Vietnam, always affirming its leading position in the market market share, original insurance premium and charter capital size Bao Viet Insurance has made continuous efforts to fulfill the role and responsibility of the leading insurer in Vietnam in assisting and settling compensation for customers as well as in social security; to ensure sustainable development and contribute to improving the quality of life for the community II Propose at least two strategic plans as a set of strategic choices One of the service trends of Vietnamese people is investment, accumulation, as people increasingly understand the importance of long-term benefits Previously, backup in Vietnamese thinking was simply savings Meanwhile, today, Vietnamese people are more proactive in building contingency plans to minimize the impact of risks in life Therefore, the life insurance segment of Bao Viet promises to thrive with an increase in urban customers, people with better living standards, high literacy and increasing interest solutions to financial protection and increase assets This opportunity is even more pronounced when the urbanization rate in Vietnam is getting higher and higher Representatives of the Vietnam Urban Planning Association predicted that by the 40s of the 21st century, about 50% of the Vietnamese population would live in urban areas Mission Statement: Protecting Vietnamese values is the mission and goal of Bao Viet Life We always stand side by side with our customers to build a peaceful and prosperous life through life insurance products.We are committed to creating the highest values for our partners, shareholders, and people work and make a positive contribution to the development of the community Bao Viet's vision to 2025 statement: is “Maintaining the position of the leading Financial - Insurance Group in Vietnam, enhancing international competitiveness, strong financial potential, and effective and sustainable growth firm ” On the basis of evaluating the advantages and disadvantages of the economy and competitive advantages, Bao Viet Group's strategy to 2020 aims to achieve goals: Effective and sustainable growth, in which internal cooperation, focusing on promoting synergies throughout the Group between traditional insurance and other financial service sectors Strengthen financial potentials through diversifying capital mobilization methods and strictly controlling the efficiency of capital use, ensuring dividends for shareholders Strengthening business management and management capacity on the basis of One Bao Viet, applying international practices and standards Targets to 2025: To be a leading life insurer in Vietnam, specializing in providing reliable, friendly and professional life insurance products Strategy Direction : With a history of 55 years of establishment and development, Bao Viet Group has affirmed its role and position in the Finance - Insurance market In the context of regional integration, on the basis of assessing the advantages and disadvantages of the economy and the competitive advantages of enterprises, Bao Viet aims to have a vision to 2025 as “Maintaining the position of a Financial Group - Leading insurance in Vietnam, improving international competitiveness, strong financial potential, and effective and sustainable growth ” To achieve this, Bao Viet has oriented its business towards the following goals: • Customer is the center: Bao Viet understands deeply, always shares and meets the increasing needs of customers With the motto "Serving customers the best for development", Bao Viet constantly strives to provide versatile and convenient products through financial supermarkets in order to bring the highest benefits to customers • Human resources are valuable assets : Bao Viet commits to creating an ideal working environment, focusing on recruiting, training and developing human resources; implementing a salary and bonus mechanism based on the performance evaluation according to international standards • Responsibility to the community : Bao Viet has been striving to contribute to bringing peace, prosperity and long-term benefits to the community Continuing the fine cultural tradition of the nation, Bao Viet's development is always associated with charitable activities, improving the quality of life of the community • Sustainable growth : Bao Viet continuously develops business areas, standardizes and makes information transparent, bringing the highest return on investment to shareholders Strategic method : The motto 'Solid belief, sustainable commitment' reflects Bao Viet Insurance's vision towards building “A sustainable Bao Viet” Bao Viet's development goal is to become a Financial Group - leading insurance companies in Vietnam, operating in the fields of life insurance, non-life insurance, financial investment, securities and other financial services for improving management skills, quality of customer service in any business field of the Group, from research and development of products and services to private consulting customers with optimal solutions or building close cooperation relationships for mutual development with customers and partners Bao Viet's strategy to 2025 is to become the leading financial-insurance group in Vietnam, with strong financial potential, gradually integrating into the regional and international markets based on three pillars: insurance, banking and investment In the period of 2019, Bao Viet has achieved many great achievements such as non-life insurance: Maintaining the leading position in the non-life insurance market in terms of market share of retained insurance premiums By the end of 2019, original insurance premium revenue reached VND 8,800 billion, net profit after tax reached VND 480 billion Life insurance: Maintaining the leading position in the life insurance market in terms of fee revenue and service quality By the end of 2019, insurance premium revenue reached VND 6,700 billion, new mining revenue reached VND 1,971 billion, an annual growth of 21%, EAT reached VND 580 billion Bao Viet Insurance currently has 01 General Director and 03 Deputy General Directors The head office currently has 23 functional departments, divided into blocks which are operations management block, distribution channel management block, direct business block and professional management block The rooms are structured in the direction of clear functions and tasks, in which the management and business blocks are structured in the direction of specialization in different types of operations Bao Viet Insurance currently has 66 member companies in 64 provinces and cities nationwide, each member company has a director and a deputy director in charge of operating the operations of each unit The management organization system in Bao Viet is applied according to the functional online model This model allows the leader to have full authority to manage, direct and promote the functions of the affiliated departments The departments conduct research according to their tasks and capabilities and then propose ideas for the Board to make the final decision III Evaluate alternative strategies using various assessment methods SFA Criteria Suitability In order to be adequate, the choice is examined if it is optimal for the target to be reached In fact, for instance, this may involve analyzing whether a commodity specifically fits the environment in which the firm exists Sustainability goals require a longer timeline for return on investment (ROI) but once the initial investments are made, they can actually lead to an increase in returns The management and coordination of environmental, social and financial needs and concerns to ensure responsible, ethical, and continuing success Feasibility Within the perspective of feasibility, it is checked whether the option considered is in line with the opportunities that the organization has at its disposal If the option is not feasible, either for practical or other reasons, it has no added value to further analyses the option Here it is checked whether the option will be successful or not The feasibility of an option is determined after the results from the external analysis have been processed Acceptability When looking at the strategic option from the perspective of acceptability, many external factors are taken into account When tapping into a new market, a coffee exporter from Colombia can, for example, analyses how much the expected profit is (forecast ROI), which risks the expansion entails and whether all stakeholders agree with the new step Often the shareholders, who are also among the stakeholders, are those who ensure that the organization is provided with capital It is therefore also very important that they remain supportive of the organization SFA /Option The development Building "One Building Providing financial goal of Bao Viet is Sustainable product services Bao management organization system to become a Viet" in Vietnam with the best in Bao Viet is leading Financial service quality applied according to the Group - Insurance online functional Company in model to create Vietnam more value Suitability Acceptability 8 Feasibility Total 17 23 25 19 QSPM Application : QSPM Factors The Building "One Building Providing financial development product services Sustainable Bao management goal of Bao Viet with the best Viet" in Vietnam organization system is to become a service in Bao Viet leading is applied according quality to the online functional model to create more value Financial Group - Insurance Company in Vietnam Weights AS TAS AS TAS AS TAS AS TAS Large width of 0.15 source 0.3 0.3 0.75 0.15 Long-standing 0.3 brand 0.75 0.6 0.15 0.75 Capital 0.2 0.3 0.3 0.6 Business results 0.1 1.25 0.75 3 There are no 0.25 strong human resources 0.15 0.75 0.3 Low salary mechanism 0.2 0.3 0.75 0.3 0.1 0.1 1.25 0.5 0.75 0.75 Strengths from the state Weaknesses are not too impressive Opportunities FDI inflows Population increased 0.25 0.3 0.75 0.15 Threats The goal 0.3 0.15 1.2 1.8 0.75 Huge outside 0.2 investors jumped in 0.3 0.75 0.3 0.15 cannot be achieved outside Total 1.5 7.3 6.65 6.65 5.4 For Bao Viet Group, 2015 marks the glorious and proud half-century of development of the whole system, is a pivotal year in implementing the 5-year development strategy for the period 2011-2015 and Group restructuring project (2013-2015) With the motto "Open all resources for development", Bao Viet Group has made strong changes by drastically implementing breakthrough strategic solutions such as improving the efficiency of business fields joint core; perfecting the organization of the management apparatus, administration and centralized governance mechanism throughout the word Group to member units, in which the Parent Company plays a coordinating role, is the nucleus of the whole system in key areas such as human resources, finance, investment, building headquarters, and brand , Information Technology; Implementing Bao Viet Finance - Insurance Group Synergy Project to unleash Bao Viet's available resources and potentials in human resources, system networks, and develop distinctive integrated integrated products of Bao Viet, promoting cross-selling among units within the Group To achieve the vision to 2025, Bao Viet Group will implement the One Bao Viet strategy with focus directions as follows: • Effective and sustainable growth, strengthening the foundation of One Bao Viet: Prioritize resources to make a breakthrough in operating efficiency, consolidate competitive advantage and leading position in the insurance business sector, continue to exploit opportunities in other financial services sectors • Strengthen financial potentials Through the diversification of capital mobilization methods, in which the dividend policy is to spend part of the additional resources for the investment and development fund, strictly control the efficiency of capital use, increase the business value business, ensuring long-term benefits for shareholders • Strengthening governance capacity And manage business on the basis of One Bao Viet, apply international practices and standards, and promote the application of information technology Bao Viet will further promote its role of direction and orientation from the Parent Company to improve the function of risk management, compliance, and promote cross-selling, internal cooperation among member units , step up the application of information technology to bring high uniformity and strengthen the system, thereby creating a solid foundation for faster and more dynamic development in the next five years (2021- 2025), improve operational efficiency, increase brand value, ensure sustainable growth Creating a change from the sense of environmental protection to accompanying Bao Viet in environmental activities for customers, partners and all staff Conduct supplier assessment and selection based on social and environmental responsibility commitments Apply responsible investment principles in investment projects to ensure the realization of a sustainable value chain of Bao Viet Energy efficiency in office buildings is achieved through the rational, conscious use of energy and natural resources Increased use of recycled products and use of “green” labeled equipment Minimize activities that generate waste and pollute the environment, contribute to the improvement of the environment and human health IV Conclusion After examining the internal external conditions, including company strengths and disadvantages We'll then sum up a plan for developing and enhancing consumer penetration or promoting innovative goods by evaluating the external climate, including demand drivers, economics and customer insights This helps to systematically investigate and review any corporate plan prior to execution while also safeguarding the tactics that can be used in the future V References Baoviet.com.vn 2021 Bảo Việt - Tầm nhìn chiến lược [online] Available at: [Accessed May 2021] Xemtailieu.com 2021 Tài liệu Tiểu luận Phân tích chiến lược cơng ty bảo hiểm Bảo Việt | XEMTAILIEU [online] Available at: [Accessed May 2021] toolshero 2021 What is the SFA Matrix? Definition, template & more | toolshero [online] Available at: [Accessed May 2021] ... 0.15 source 0 .3 0 .3 0.75 0.15 Long-standing 0 .3 brand 0.75 0.6 0.15 0.75 Capital 0.2 0 .3 0 .3 0.6 Business results 0.1 1.25 0.75 3 There are no 0.25 strong human resources 0.15 0.75 0 .3 Low salary... 0.2 0 .3 0.75 0 .3 0.1 0.1 1.25 0.5 0.75 0.75 Strengths from the state Weaknesses are not too impressive Opportunities FDI inflows Population increased 0.25 0 .3 0.75 0.15 Threats The goal 0 .3 0.15... The goal 0 .3 0.15 1.2 1.8 0.75 Huge outside 0.2 investors jumped in 0 .3 0.75 0 .3 0.15 cannot be achieved outside Total 1.5 7 .3 6.65 6.65 5.4 For Bao Viet Group, 2015 marks the glorious and proud