MỤC LỤC
Analysis of internal business is the third factor in the strategy management process, in order to find out the strengths and weaknesses of the organization, to achieve the competitive advantage and the role of capacity difference (unique strength of the company), the resources and ability to create and maintain sustainable. According to the present schools of strategy management, this stage should be carried further to realize the nature of competitive position basing on analysis to find out the resources, capabilities and core competence as the basis for the development of strategy options.
Strategies: market penetration, market development, product development, forward combination, forward combination and horizontal combination are possible depending on the specific circumstances of each business. QSPM matrix use information obtained from three matrixes in stage 1 (stage to collect and systematize information) and 3 matrix in stage 2 (combination stage), therefore, the objective assessment of the business strategy can be replaced.
However, that number was decreasing compared to other local banks’ annual market share of capital mobilization, particularly in 2006 the capital mobilization accounts for 7% of the market share, that number in 2007 and 2008 only accounts for 5% of the market share. When the economy grows, organizations need capital to invest in business activities; the multinational investment generates strong demand for banking services such as payment, guarantee, leasing, card service, foreign currency purchase and conversion. The social investment capital implementation in 2008, according to estimated current prices, reached 637.3 trillion VND, equaling 43.1% of GDP and increasing by 22.2% compared to that number in 2007, including the state capital area with 184, 4 trillion VND which accounted for 28.9% of capital and reduced 11.4%; non-state capital area with 263 trillion which accounted for 41.3% and increased 42.7%; direct investment capital area with 189.9 trillion VND which accounted for 29.8% and increased 46.9%.
Under the instruction of the State Bank, Banknetvn and Smartlink, the two largest union card organizations (accounting for more than 80% of Vietnam bank market) have implemented ATM connection system between member banks of the two. alliances together, creating conditions that are more favorable for customers using the card. While the banking system has made great efforts to modernize the payment system but with the population of more than 85 million people in Vietnam, the number of ATMs and card number cannot meet the needs of people population. Annual Report of the State Bank 2008). According to Vietnam Economic Times (issued on June 2, 2008), by this time, there are five state-owned commercial banks in Vietnam with more than 4000 branches and two banks for social policy with hundreds of branches, six joint venture banks, 36 joint-stock banks, 44 foreign banks’ branches, an association of people's credit funds with more than 30 central branches and 998 basic people's credit fund nationwide. Currently, Nghe An province has 6 branches of state-owned commercial banks, 19 branches of joint-stock banks, a branch of association of people's credit fund, a branch of bank for social policy, and a branch of Vietnam development bank, representative offices directly belonging to these branches, ATM systems and basic people's credit funds.
Easy to look for partners for joint-venture and association: currently, the joint- venture and association of VietinBank are mainly focused on main institution; and the association and joint-venture in branches haven’t developed, then the influence of this critera on VietinBank Ben Thuy is still limited. Currently, VietinBank has agent relations with more than 850 big banks all over the world; it is the first Vietnamese bank which is issued certificate of ISO 9001:2000; Vietinbank is a member of Vietnamese Banking Association and of Asian Banking Association; a member of Society for Worldwide Interbank Financial Transactions (SWIFT), Association of issuance and payment via VISA, MASTER. VietinBank Ben Thuy is organized by functional model and divided by products and services types, including: accounting office; corporate customers office; individual customers office; administrative office; currency and fund office; risk management group; computer group; transaction office.
From above analysis, we can see that the essential capacity of VietinBank Ben Thuy is the prestige of brand name, qualification of cadres, the quality of. The prediction of World Bank (WB) on Vietnamese economy in the year 2009 showed that the risk as well as weak points of the year 2008 would be relatively reduced and improved in the year 2009. However, according to general consideration of economic experts, this figure would be difficult to reach because the year 2009 would be still a difficult year for Vietnamese economy.
With that situation, the period 2010-2015 is considered to be a time when competition in banking will be more and more violent, especially when our country has completely removed technical barrier in financial sector according to the commitment of WTO integration. To be aware of difficulties to prepare necessary conditions to grasp opportunity, overcome the risks, set up development strategy as well as feasible solutions to reach targets in the coming period is very important and urgent for. In conclusion, through analyzing internal factors of enterprise, we can see that VietinBank Ben Thuy belongs to relatively strong group of banking sector.
Strong points are: powerful brand name; young, enthusiastic and qualified staff; good human resource using and training; good service; solidarity and consensus from the highest to lowest level… Weak points are: problems of network development, marketing, trading strategy, competitiveness capacity of interest…Then, how can VietinBank Ben Thuy define the targets and trading strategies which are suitable to the coming period?.
With regard to VietinBank Ben Thuy, the given target is to become a leading bank in Nghe An province in term of scale, service quality, provision of package banking services with modern technology, plentiful products and services with high quality, flexible activities, expanding network to favorable location within Vinh city and districts, communes within the province. As can be seen from the above graph, strategy position of VietinBank Ben Thuy shows that the bank has healthy financial situation and many competitive advantages in a stable sector. - Market development strategy: take advantage of strong point of brand name, consensus on will, well trained human resource; grasp opportunity of extended market, big banking products and services, opportunity for joint-venture and association; stable politic environment for market development and network expansion.
- Strategy of focusing on key points: based on brand name; young, enthusiastic and qualified employees, well trained human resource to grasp the opportunity of open market, the increasing demand of banking products and services and modern. - The strategy to develop new product: take advantage of brand name, young, enthusiastic and qualified staffs, well trained human resource, grasping the opportunity of market development; increasing demand of banking services and products and modern technology to develop new products to meet the demand of customers. Costs-leadership strategy: take advantage of brand name, young, enthusiastic and qualified staffs, strong financial capacity and internal consensus to make customers trusted which bring sakes to customers to mobilize cheap capital leading to low sale price.
Human resource management and development: due to extended market, development of many banking products and services, then VietinBank Ben Thuy must be bold to retrain human resource with high quality to replace redundant human resource.
Utilize foreign credit programs with low interests, then we can cope with the risks of replaceable products and other bank’s competition. VietinBank Ben Thuy needs to develop marketing activities to adjust its own weak points to attract customers. We give priority of market development to SO strategy group, because TAS = 151 is the highest.
Market development Look for favorable location to transfer the head office, settle down the transaction offices to extend the network. Costs -leadership strategy Try to look for cheap capital source, foreign credit programs with low interests then to define low output price to make price lead. Focus on key points Focus on customers which are small and medium enterprises; segmentation of retail customers, rich customers as well as potential customers to have suitable service policies.
Product development Raise the quality of existing products and services and implement new products given by Vietinbank; diversify services and products.
- Set up some new transaction offices in densely-populated areas or few banks: 1 office at Quang Trung Street - Vinh; 1 office at Hung Loc commune – Vinh (appoved by VietinBank); 1 office at Dien Chau town; 1 office at Hung Nguyen district and 1 office in the North of Vinh city. - Co-ordinate with association such as association of small and medium enterprises; industrial zone management board; local authority of traditional craft villages to grasp the demand of customers to do marketing and timely meet the demand of banking products and services. - VietinBank uses the system of modern technological software INCAS which brings many benefits to the bank and customers through management and online connection within the whole system (customers can send money in this place but can draw money in another place within the same Vietinbank system).
Therefore, the system must ensure security on the line of customers’ database; focus on solution of network security such as machine office must have camera system to monitor; when computer staff finish working, they must lock the key to avoid the damages for bank and customers. - Labors have the right to strive and dedicate to the bank – they also have the right to enjoy preferential treatments according to the quality, result, and working effect; they are also honored “excellent individual” and “excellent labor”. VietinBank Ben Thuy needs to change location of main office to the centre area of Vinh city (The centre of Vinh city is along Quang Trung Street; in the future all of organizations and agencies will focus on Le Nin Boulevard).
Based on the theory of strategy management and strategy building process, combined with analyzing the assessment and review of actual situation, the specific characteristic of VietinBank Ben Thuy, including both external and internal factors affecting on formulating business strategies, the authors have proposed business strategies of VietinBank Ben Thuy and the solutions to the strategies.