2011 GLOBAL ADVANCED MBA PROGRAM (Class C02) CAPSTONE PROJECT REPORT BUSINESS STRATEGY FOR AN BINH COMMERCIAL JOINT STOCK BANK IN THE PERIOD 2011 - 2015 Group number: Student’s name: 1, VU THU LAP 2, NGUYEN THI PHI LOAN 3, TO DUY LAM 4, TRAN DINH LOC 5, LE MAI CANH Class: GaMBA01C02 Group No.4 HO CHI MINH CITY 2011 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PRORGAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY FOR AN BINH COMMERCIAL JOINT STOCK BANK IN THE PERIOD 2011 - 2015 Group number: Student’s name: 1, VU THU LAP 2, NGUYEN THI PHI LOAN 3, TO DUY LAM 4, TRAN DINH LOC 5, LE MAI CANH Class: GaMBA01.C02 HO CHI MINH CITY 2011   GaMBA01.C02 ACKNOWLEDGMENT – CAPSTONE PROJECT REPORT ACKNOWLEDGEMENT First of all, our group would like to thank sincerely to Center For Education Technology & Career Development of Vietnam National University, and Griggs University who help us acquired knowledge through the program of Global Advanced Master of Business Administration We would like to thank sincerely and deeply to all teachers who have enthusiasm to guide us to fulfill the capstone project report as well as big-hearted teaching, assisting, and facilitating for us to complete this course We also send our sincere thanks to ABBank’s board of leaders, classroom management members, and GaMBA01.C02 classmates had helped, encouraged, and supported our group to complete this capstone project report as well as complete the GaMBA’s program ON BEHALF OF GROUP GROUP LEADER VU THU LAP GaMBA01.C02 LETTER OF CONFIRMATION – CAPSTONE PROJECT REPORT LETTER OF COMFIRMATION All data in the project "Business strategy of An Binh joint stock commercial bank for the period 2011-2015" related to ABBank’ activities from 2006 to October 2010 is cited in the annual reports of ABBank and it has been approved by ABBank ‘s leader Ho Chi Minh city, March 1st 2011 For AN BINH JOINT STOCK COMMERCIAL BANK Signed by Mr NGUYEN CONG CANH DEPUTY DIRECTOR GENERAL  TABLE OF CONTENTS – CAPSTONE PROJECT REPORT GaMBA01.C02 TABLE OF CONTENTS Page Acknowledgements Letter of confirmation Table of contents INTRODUCTION ………………………………………………………… ………………………………………………………… I, Theoretical basis CHAPTER I 1,Concepts, role of strategy and business strategy …… 2.1, The strategic formulation process ………………………………… 1.1, Concept of strategy 1.2, Strategies at different levels within an organisation 1.3, The role of business strategy 2, The strategic building process 2.1.1, Determination of the mission and of the organization …………… …………………… 2.1.2, Determination of the goals of the organization 2.1.3, Determination of the strategic objectives …… 2.1.3.1, The internal factors ………………………………………… 10 2.1.3.2, The external factors ………………………………………… 10 2.1.4, Analysis the business environment of firm 2.1.4.1- The impacts of external environment for business strategy 2.1.4.1.1, Macro environment 2.1.4.1.2, Competiors 11 11 11 12 2.1.4.1.3, The quality and capabilities of companies in the industry 13 2.1.4.1.4, Market demand …………………………………………… 13 2.1.4.1.5, Customers 13 2.1.4.1.6, Suppliers 14 …………………… 14 ………………………………………… 14 …………… 15 15 …………………………………… 15 2.1.4.2, Assessment of environmental impacts 2.1.4.3, Internal analysis 2.1.4.4, Value chain of the organisation analysis 2.1.4.4.1, The primary activities 2.1.4.4.2- Support activities  TABLE OF CONTENTS – CAPSTONE PROJECT REPORT GaMBA01.C02 2.1.5, Financial analysis ………………………… ……………… 15 2.1.6, The rotation index 15 2.1.7, Organizational culture and reputation analysis 15 ………………………………… 16 II, The methods of research 16 2.2, Implementation of strategy 1, Method of data collection 1.1, By referring to a document 1.2, From the experiments 17 17 1.3- From non-experimental data (questionnaire survey) 2, Method of comparison 2.1- Comparison of relative movement 2.2- Absolute comparison 16 17 17 17 18 3, Method ofstatistical description 18 18 5, SWOT Matrix 18 6, Method of Five Forces Analysis 19 …… 20 Summary of Chapter I 20 ………………………………………………………… 21 4, Method of SWOT analysis 7- Method of Quantitative Strategic Planning Matrix (QSPM) CHAPTER II I, General introduction of ABBank 22 ………………………………………………… 22 …………………………………………… 22 ………………………………… 22 2.2, For corporate customners 23 …………………………… 23 1, Introduction 2, Products and services 2.1, For individual customers 2.3, Special customers in electric sector 3, The formation and development of ABBank 4, Structure of shareholders 23 ………………………………………… 24 5, Organization structure of ABBank 25 5.1- Board of Directors …………………………………………… 26 5.2, Board of Supervisory 27 27 5.3, Executive Board  TABLE OF CONTENTS – CAPSTONE PROJECT REPORT GaMBA01.C02 5.4, The Council, Committee of the Board 27 5.4.1, Credit Council 27 5.4.2, Assets and Liabilities Management Commitee (ALCO) 27 27 ………………………………………… 28 5.4.3, Risk Monitoring Committee 6, Business network II, Results of operations of ABBank in the period 2006 to 2010 28 1- Some key indicators of business from 2006-2010 of ABBank 28 2, Characteristic activities of ABBank 30 III, Analysis ABBank‘s business activity 31 1, SWOT analysis of the current operating environment of ABBank 31 …………………………………………………… 31 1.1- Opportunities 1.1.1, The economy growth is continuous at high speed 1.1.2, Globalization and international economic integration 31 32 32 1.1.3, The legal environment for banking activities have been increasingly improved 1.1.4, Population size and structure are favorable for the development of banking services 1.1.5, Vietnam's society and politics are stable 33 33 ………………………………………………… 33 1.2.1, The increase in competitive pressure in the banking sector 33 1.2.2, Pressures in keeping and expanding in the local market share 34 1.2, Threats 1.2.3, Competition labor market is increasingly fierce 34 1.2.4, Pressure on increasing charter capital, the management capabilibity of commercial banks in compliance with the international standards and rules (Basel II) by the State Bank of Viet Nam’s regulations 34 1.2.5, Customers become increasingly more demanding for banking services 35 1.3 - Matrix of environmental factors assessment 35 36 …………………………………………………………… 36 2, Analysis of the internal ABBank 2.1- Strengths 2.1.1, The advantage of equity 36 2.1.2, Foreign and domestic trategic partners are financial and economic institutions with prestige and strong financial resources 36  TABLE OF CONTENTS – CAPSTONE PROJECT REPORT GaMBA01.C02 2.1.3, A wide distribution network 2.1.4, Risk management system and supervision system 37 37 2.1.5, Employees with force capable, experienced and high qualitified 37 2.1.6, Executive capacity 37 2.2, Weaknesses …………………………………………………………… 37 2.2.1, Low effective of using capital 37 2.2.2, Distribution channels 37 2.2.3, Competitive advantage 37 2.2.4, Service qulity 38 2.2.5, Marketing activities 2.3- Matrix of the internal analysis 38 38 3, Analysis competitors …………………………………………………… 39 - Some forecasts of banking operations from 2010 to 2015 43 4.1- Key issues is addressed in the development period 2011-2020 43 4.1.1- For all commercial banking system of Vietnam 43 4.1.2- For state-owned commercial banks 44 4.1.3- For joint stock comercial Banks ……………………………… 44 4.1.4- For the non-banking institutions 45 4.2-The general direction of Vietnam's banking by 2020 4.2.1, Competitions 45 …………………………………………………… 45 ……………………………………………… 45 4.2.2, Health and stability 4.2.3, Transparency, Disclosure 4.2.4, Easy access 46 46 4.2.5, International integration 46 Summary of Chapter II ……………………………………………………… 47 …….……………………………………………………… 48 CHAPTER III I, Strategies of ABBank in the period 2011 – 2015 49 1, Orientation of business strategy for ABBank in the period 2011 – 2015 49 1.1- General orientations (general goals) 49 1.2- Guideline 49 1.3- Orientation some basic norms in the period 2011-2015 49  TABLE OF CONTENTS – CAPSTONE PROJECT REPORT GaMBA01.C02 1.3.1- Equity 1.3.2- Total Assets 50 50 1.3.3- The total capital mobilization 50 1.3.4- Total outstanding loans to the economy 50 1.3.5- Return on equity (ROE) 50 1.3.6- CAR 50 1.3.7- Number of branch / transaction devisions 50 1.3.8- Strong research and development of products and services 50 1.3.9- Establishment representative offices or branches 50 52 2, Strategy formulation 2.1, Financial capacity stratergy 53 2.2, Technology capacity stratergy ………………………………… 54 ……………………………… 54 2.3, Management capacity stratergy 2.4, Stratergy of organizational structure and network development 55 ……………………… 55 2.4.2, Network development ……………………………………………… 55 2.5, Strategy for products quality and the new products development 56 2.4.1, Organizational structure construction 2.6, Corporation stratergy ………………….……………………… 56 ……………………………… 56 2.8, Human resource stratergy ………………………………… 57 ……………………… 58 …………………………………………………… 58 2.7, Branding and marketing stratergy 3, Selection of stratergy and specific solutions 3.1, QSPM analysis 3.2, Some of other main reasons 68 ……………………………………………… 68 3.2.2, Products quality …………………………………………………… 69 ……………………………………………… 70 ……………………………………… 71 ……………………………………………… 71 3.3.2, Solutions for network development stratergy 72 3.3.3, Solutions for products quality …………………………………… 75 3.3.4, Solutions of human resources development …………………… 76 3.2.1, Human resources 3.2.3, Business network 3.3, Specific group of solutions 3.3.1, Solutions for capital II, Determining the time to implement the strategy …………… …… … 78  TABLE OF CONTENTS – CAPSTONE PROJECT REPORT GaMBA01.C02 1, The 1st period 78 2, The second period 79 3, Steps to develop and implement strategies ……………………………… 79 III, Some recommendations 1, For Government, State Bank of Vietnam and concerned ministries 80 80 81 Summary of Chapter III …………………………………………………… 82 2, For ABBank CONCLUSION ……………………………………………………………… 83 REFERENCES ……………………………………………………………… 85 ... we decided to choose the theme ? ?Business strategy of An Binh joint stock commercial bank (ABBank) for the period 201 1- 2015? ?? The necessity Business strategies are required for each development... COMFIRMATION All data in the project "Business strategy of An Binh joint stock commercial bank for the period 201 1- 2015" related to ABBank’ activities from 2006 to October 2010 is cited in the annual reports... UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PRORGAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY FOR AN BINH COMMERCIAL JOINT STOCK BANK IN THE PERIOD 2011 - 2015 Group number: Student’s