(5RIGGS pa nộ UNIVERSITY CAPSTONE PROJECT REPORT PERFECTING BUSINESS STRATEGY OF LIEN VIET COMMERCIAL JOINT STOCK BANK FOR 2010 — 2015 PERIOD Tran Ngoc Tuan Dang Hoang Ha Tran Manh Cuong Vu Duc Hung GaMBA01.M01 HANOL 2009 sty ,9 Lien Viet Bank NGAN HANG LIEN VIET TO WHOM Lien Viet Commercial IT MAY CONCERN Joint Stock Bank hereby confirms that: Group — Class GaMBA 01.MOl1 includes 04 members: Tran Ngoc Tuan Dang Hoang Ha Tran Manh Cuong Vu Duc Hung Has joined to research and apply course knowledge to analyze and propose solutions on business strategic management in LienVietBank with the theme “Perfecting the business strategy of Lien Viet Commercial Joint Stock Bank for 2010 — 2015 period” This Project report is expected to help LienVietBank to re-consider tendency and business plan so with those matters, it is based to prepare a business strategy in 2010 — 2015 to increase competitiveness and ownership value ⁄268NRRAL DIRECTOR 2HĨ TƠỔNG GIÁM ĐỐC Bin Lin hing TABLE COVER OF CONTENTS PAGE TABLE OF CONTENTS ABBREVIATIONS LIST OF TABLES INTRODUCTION CHAPTER) I1: ARGUMENTATIVE MANAGEMENT IN THE ENTERPRISE BASIS ON — STRATEGIC 1.1 Overview of strategic management 10 1.1.1 Definitions 10 1.1.2 Process of strategic management 12 1.2 Mission; Vision; Core Value 13 1.2.1 Mission 13 1.2.2 Vision 14 1.2.3 Core value 14 1.3 Strategic analysis 15 1.3.1 Analysis of macro-environment 15 1.3.2 Analysis of sectoral environment 18 1.3.3 Analysis of internal environment 21 1.3.4 Summary of SWOT analysis 22 1.4 Selection of preferential strategy 24 1.4.1 Corporate level strategy 24 1.4.2 Business level strategy 25 1.5 Implementation & evaluation 27 1.5.1 Organizational structure 27 1.5.2 Control system 28 1.5.3 Route construction for implementation 29 CHAPTER 2: PRESENT SITUATION OF BUSINESS LIENVIET COMMERCIAL JOINT STOCK BANK 2.1 Introduction of Lien Viet Commercial Joint Stock STRATEGY Bank OF 30 30 to General information 30 t© 1.2 Organizational structure of Lienviet Bank 31 to 1.3 Products and services of Lienviet bank 32 1.4 Business performance in 2008 and the first half of 2009 32 2.2 Analysis & evaluation of LienViet Bank’s present business strategy 35 2.2.1 Current strategic commitments of LienVietBank 35 2.2.2 Analysis of macro-environment impacts 37 2.2.3 Analysis of sectoral environment impacts 41 2.2.4 Analysis of LienVietBank’s internal environment 45 Current business strategies 55 2.2.6 Current organizational structure & control system 63 2.3 Comments to 1.1 and evaluations on implementing the business strategy of Lien VietBank CHAPTER 3: COMMERCIAL 3.1 PERFECTING BUSINESS STRATEGY OF LIENVIET JOINT STOCK BANK FOR 2010 — 2015 PERIOD Corporate development orientation 3.1.1 Table of summary of SWOT 66 67 67 analysis 67 3.1.2 Development orientation 68 3.1.3 Objectives 69 3.2 Perfecting strategic commitments of Lien VietBank 69 3.2.1 Mission 69 3.2.2 Vission 70 70 3.3 Perfecting business strategy of Lien VietBank in 2010-2015 70 3.4 Solutions for perfecting strategy of LienVietBank 71 3.4.1 Technological solutions 71 3.4.2 Human resources solutions 73 3.4.3 Solutions for improvement of financial capability 75 3.4.4 Marketing solutions 78 3.4.5 Solution for improvement of risk management capability 82 +32 3.2.3 Core Value 3.4.6 Research & Development (R&D) 82 3.4.7 Solution for organizational development and expansion of business lines 83 3.4.8 Conditions for strategic implementation 84 3.5 Perfecting organizational structure and control system 85 3.5.1 Perfecting organizational structure 85 3.5.2 Control system 86 3.6 Route for implementation of strategic solutions 87 CONCLUSION 88 REFERENCES 89 APPENDIX: ORGANIZATIONAL CHART OF LIENVIE TBANK 90 ABBREVIATIONS LVB LienVietBank - Lien Viet Commercial Joint Stock Bank MB Military Bank T echcombank Technological and Commercial Joint- stock Bank HSBC Hongkong Shanghai Bank Corporate ALCO Assets and Liabilities Committee MSS Mobivi Securities Settlement ATM Automatic Transfer machine GDP Gross Domestic Product ISO International Standard Organization TQM Total Quality Management IT Information Technology L/C Letter of Credit ODA Official Development Assistance POS Point of Service SMS Short Message Service WTO World Trade Organization USD United State Dollar VND Vietnam dong SATRA SAIGON TRADING SASCO Southern Airports Services Company CITAD Centre for Information Technology and Development GROUP LIST OF TABLES Table 1.1 SWOT analysis summary Table General 1.2 strategies in the model “Five competitive forces” by Michael Porter Table 2.1 Growth of LienVietBank’s fund mobilization and lending Table 2.2 Business performance results of LienVietBank Table 2.3 The comparison of operating situation of LienVietbank and (unit; VND billion) competitors in the year 2008 Table 2.4 The comparison between the core capacity of LienVietbank other competitors Table 2.5 Evaluation the key capability of against rivals Table 2.6 Evaluation the surpassing capability of LienVietBank Table 2.7 General business plan in 2010 — 2012 (unit: billion VND, %) Table 2.8 Plan for mobilization (unit: billion VND, %) Table 2.9 Credit operation activity (unit: billion VND,%) Table 2.10 Plan to increase total asset — capital (unit: billion VND.%) Table 2.11 Plan for Profit (unit: billion VND.%) Table 2.12 Business targets in 2013 — 2015 (unit: billion VND.%) Table 2.13 Summary and analysis of business plan targets in 2010-2015 (unit: billion Table 3.1 VND,%) SWOT analysis table of LienViet Bank and INTRODUCTION The necessity of the theme: Vietnamese financial market is at present growing more both in scope form, quality and structure of market participation Under the process of accessing World Organization WTO and Vietnam — US trade agreement Vietnam [rade undertakes to fairly treat local and foreign banks in terms of banking services to remove limits to access into the local banking service banks, the system of Vietnamese market However, commercial to apply control appropriate of the local remedies financial to develop market with foreign banks still has such weaknesses financial resources, experience of management service as well as incapacity of risk prevention compared business, technology quality as and [his requires each commercial bank improve and expand competitiveness seize into the international the financial market In which, establishing big banks which have multi-purpose and the capacity to catch up with fast changes in the modern world has been becoming a necessary demand and an indispensable tendency On the other hand, the competition among domestic commercial banks as well as the system market of banks and local financial institutions is happening of finance insurance and companies, banking, urban banks there are more that are newly and more fiercely In the investment established and funds the securities market of Vietnam is taking place eventfully All these things create more financial and investment channels for enterprises and people to choose These financial institutions have the direct competition with banks in raising capital investment and the competition is just also fierce in the banking industry From the above reality in order to exist and develop sustainably, Vietnamese construct their strategy of development commercial in accordance banks with the specific have to industry from time to time addition, considerable Opportunity the world impacts on for us to have financial crisis the banking a more & sector economic downturn of Vietnam comprehensive ¬ In and This practical have crisis view caused is also an of all risks opportunities, ccuntry strengths and weaknesses This also creates an of the system essential demand of commercial against banks commercial in the banks to ccmsider and make their strategy of development Ir the program of training International Master of Business Administration at the Us University GRIGGS, asigned to undertake with the theme “Strategic a major exercise through Management”, a project our team in connection Is with a catain local enterprise to apply course knowledge to analyze & create solutions on stategic management With these reasons, at the same time in the team there Is a member who is working for Lien Viet Joint Stock Commercial his agreed to decide Len Commercial Viet and choose Joint the theme Stock “Perfecting Bank for 2010 Bank so our team the business — 2015 period” cctributing to the sustainable development of Lien Viet Commercial strategy of aimed at Joint Stock Bink — LienViet Bank in the current tendency of regional & global integration 2.Study objectives: - Systemize theoretical matters in terms of strategic management - Analyze & evaluate the situation of strategic execution in the enterprise in the past time - Set forth solutions to perfect the strategy in LienVietBank for 2010 — 2015 period 3.Object & scope of study: - Object: Business strategy of LienVietBank - Scope of study: In the market of Vietnam, it is applied from 2010 — 2015 4.Study method: It's to apply qualitative methods as follows: - Apply methods to study available documents (secondary consider scope, structure and tendency of market movement - Study investigate survey to collect primary data 5.Expected results: documents) to It is expected to help business leaders to re-consider tendeney with those matters, it is based to prepare a business and business plan so strategy in 2070 3015 to increase competitiveness and ownership value Layout of the theme: In addition to the introduction and conclusion, main contents are included in 03 chapters: - Chapter 1: Argumentative basis on strategic management in the enterprise - Chapter 2: Present situation of business strategy of LienViet Bank - Chapter 3: Perfecting the business strategy of LienViet Bank for 2010-2015 period Assignments undertaken by team members: Based on contents & structure of the theme mentioned above our team agrees to provide team members with assignments as follows: Team members Tran Ngoc Tuan Chapter Introduction Chapter | m Vu Duc Hung Dang Thi Hoang Ha a Tran Manh Cuong ma 1.3: 1.4; 1.5 Chapter 3.1; 3.3 Chapter 2.2.4 Chapter | pe ma Section alg lad Chapter3 | Chapter 2.1; 2.2 Collect & Select the data of VB ee _and the banking sector _ Conclusion _ | 3.4: 3.5: 3.6 | ee 43.200 Chapter Chapter | | Ị | | ... BUSINESS LIENVIET COMMERCIAL JOINT STOCK BANK 2.1 Introduction of Lien Viet Commercial Joint Stock STRATEGY Bank OF 30 30 to General information 30 t© 1.2 Organizational structure of Lienviet Bank. .. the business strategy of Lien VietBank CHAPTER 3: COMMERCIAL 3.1 PERFECTING BUSINESS STRATEGY OF LIENVIET JOINT STOCK BANK FOR 2010 — 2015 PERIOD Corporate development orientation 3.1.1 Table of. .. enterprise - Chapter 2: Present situation of business strategy of LienViet Bank - Chapter 3: Perfecting the business strategy of LienViet Bank for 2010-2015 period Assignments undertaken by team