( i*J( GRIGGS ;( 5) NTERNATION BUSINESS ADMINISTRATION MASTER UNIVERSITY GLOBAL ADVANCED MASTER ADMINISTRATION PROGRAM CAPSTONE PROJECT OF BUSINESS REPORT BUILDING BUSINESS STRATEGY FOR BANK OF INVESTMENT AND DEVELOPMENT VIETNAM -THANG LONG BRANCH IN THE PERIOD OF 2012-2016 GaMBA01.X0410 - Group No 03 Group Members: Pham Thu Phuong (Group leader) Vu Hong Phong Dang Mau Son Pham Duc Anh HANOI, November 2011 strategic Management Capstone Report Assessment Group | , C rRIC ;( ` INTERNATION BUSINESS ADMINISTRATION MASTER COMMITMENT We, the members of the Group No3 would like to commit that this Capstone Project has not submitted to any MBA program, also to any degree-training program We also would like to commit that this Capstone Project is all ours group’s exertion The analysis results and conclusions in this project (excluding quoted sections) are own ours intelligence product, but not copied from any other available material ACKNOWLEDGEMENT This Capstone Project is the last and most important request of our MBA finance This project focuses on the business strategy program in management, which is integrated with others as marketing management, human resource management and corporation finance management This project helped us having an occasion to match the knowledge and skills of modern business management from MBA program with the practical situations of the medium firm in Vietnam To full fill this project, we would like to express our deep gratitude for the favor support of Griggs University, Center for Educational Technology and Career Development (ETC) of Hanoi National University and especially to the lecturers, who have knowledge enthusiastically taught, guided and provided us with the valuable We sincere thanks also to the support and assistance of the leaders and staffs of BIDV Thang Long branch They have spent highly valuable time on organizing surveys, providing data and discussing with us about the relation between the project contents and practical situations at the Company; from that, helping to create a close connection resulting between theory and practice and in a highly feasibility in the future We, the Group No3 members, would like to receive the continual support of the lectures to help us completing the course with the highest results Particularly, the support of all BIDV Thang Long’s leaders and staffs will be an indispensable motivation for this project coming into the bank’s practice Strategic Management Capstone Report Assessment Group 3 CONFIRMATION OF BANK FOR INVESTMENT VIETNAM - THANG LONG AND DEVELOPMENT OF BRANCH We, Bank for Investment and Development of Vietnam — Thang Long Branch confirm that we agree the research group including the members mentioned below to be allowed to get access to the internal documents, data as well as contact with the operation fact to study about the strategic orientations of BIDV — Thang Long Branch, serving the research purpose of the group to complete the MBA course: > th I Vũ Hồng Phong Đặng Mâu Sơn Phạm Đức Anh Phạm Thu Phương noi, December 5, 2011 S/ S x00 CHÍ NHẢNH NGAN HANG > / DAUTUVAPHATARIEN THANG’ LONG \- \* GIAM DOC sy Vion Mul ` ( rR Bo f TRAINING IC r( 9) PROGRAM INTERNATION BUSINESS ADMINISTRATION MASTER unistration TABLE OF CONTENTS COPAMITMENT sussxxessvusies ss st.ndnsttenentanare cencnansnnanensana ACKNOWLEDGEMENT .QQ TABLE OF CONTENTS LIST OF SYMBOLS cach nh 0g 501501 QQ 2002001211212 1112010111111 1n HT Hà HH HT Q2 Q.0 202012121121211101111 111110111011 1n AND ABBREVIATIONS LIST OF FIGURES AND TABLES 6051719 10100151776 511101 008824951555 TQ Q.nT HH1 H11 HT HT HT HH HT 2012112111 12101111 111 H11 H HT Tnhh acc HH nhe HT ng nhac HT HH TH nh TH T 370.11 CHAPTER 1: THEORETICAL BASIC ABOUT STRATEGY AND STRATEGIC MANAGEMENT 1.1 Concepts and theories ooo ccc ccccccsccseesscsssesesessccsevscvsevsecsssssssasersssesessesescassaeecsecane 1.1.1 Strategy and strategic DUSINGSS MANAGEMENS? uo ee cecccscesceccscescscsesscsscstesscssesacsecsecseseees 1.1.2 Levels Of DUSINESS STOLE GY .cccecccccesccssssesccscescscescsecscssesacsesssvacsessesssescsucassassecsacaecstsaceeseacs 10 1.1.3 The formulation Of StrOTE GY cccccssessesssessescssessecsccsscsscecacsasesessesausaussessussucasecessesscscessesse 10 1.2 Strategic formulation Analysis 0.2 ccc ccccsccssescscescsecevscsceecscssesesesavssescacsccseaseatsesecseess 11 1.2.1 External environment analysis, EFE matrix and CPM SH TH ng nen re 12 1.2.1.1 SeC†oridl environrmenl ccsc cv H1 10111110 HH 1.2.1.2 Common envirOnrme@nnÏ - ‹ + stcc cv x3 nn 11H TT 1.2.1.3 EFE (External Factor Evdluofion mGIiX] - TT TT TT HT TH TT HH He 12 ng nen 12 cv HH H10 1011811111 ng ng ng 13 1.2.1.4 CPM - Competitive Profile rmQfiX - ác 111918101111 581 58011118 11 Ea na-cay 14 1.2.2 Internal environment analysis and] IEF rmGIiX tt S3 S393 ES8 553551 568 -3E S S3 cszssz 15 1.2.3 Analyze the sttategy and choosing the motrix s†ra†egies 2-2 St tE+EEvEzEzzcs 16 V.2.3.1., SWOT MOBIK 16 1.2.3.2 Quantitative Strategic Planning Matrix — Selecting the strategy - QSPM 17 1.3 Srafegy choosing LH HH HH HH HT TT Hước 1.3.1 LOW COST SỈTÍ@QJy ĐT 1.3.2 Produc† specificofion s†ra†@Qy 1.3.3 Centrolizofion $ỈTỌ©Qy HH TT TH HT HH TT TT HT TT TH TH TH TT nh 17 HH1 101011111111 11 1111 E1 TT HH nga HH HH HH ng gan Tang 17 17 g1 peysgersrs 17 1.3.4 Integrating development strategy cccccsssssssscscscecessevecsesssessesescatscssstececacsecsesesevacecsess 17 Seo 2o on 17 CHAPTER 2: ANALYSIS OF BUSINESS ENVIRONMENT OF BIDV -THANG LONG BRANCH 20 2.1 Overview of BIDV - Thang Long branch - ĐT HT HH1 TT 1H Tnhh nen re, 20 2.1.1 Establishment and development history cccescccsesessescesssecscccsecsssscsessesscsaceccesceaceaceeees 20 2.1.2 OFGANIZATION'S SHUCHULS oe seesceeseeeesesessesssecssseseescssscssceesecscsesceacateascausaatssavsesacsateacecsecsees 21 2.].3 Moin business acfivities of BIDV - Thang Long Branch 2S ST nS SE 2.1.4 VISION AN 2) MISSION ceesecesesesesesesesesesessvscseseussevsvscsvscsssssevavavassesevasavasasasutsavavacssssevscavseseeess 21 2.2 Analyzing business environment for investment project appraisal activities in BIDV - Thang Long BIG h nn c cece cece cscs esessscssvasecsevssevevevevsvassavavasavatscsasavasssassevavavavsesacsevavaveeeeves 24 Strategic Management Capstone Report Assessment Group 3 ¬ ( TRAINING P rik IC iC 9) 2.2.1 Fundamental ROGRAM NTERNATION BUSINESS ADMINISTRATION nistratior MASTER basic to build business strategy in the period of 2012- 2014 24 2.2.2 External FACtOrs Œn\QlySÌS L1 21 11110110 11 51H 2.2.2.1 Mqcro environment fac†tors (PEST mocdel) 2.2.2.2 Micro environment TT Tnhh nho 25 ác c set ct c2 11113 1115115155111 55 151151551 te 25 (Michael Por†ter's five force model) :-ccc cac cv 2sEszssszca 28 2.2.2.3 Ex†ernol fac†ors evdlUofion rmGIX 2.2.3 In†erndl faC†Ors œniQlySÏS - ác - 2.2.3.1 The bank's voluogble ChOïm n1 111111111 g1 TT na rệc 38 S1 111121 5111111108111 0111111111 11 1111111 Hx HT c1 1211 1H H1 2.2.3.1.1 Safety banking DrOC©S H11 H ng HT HH 40 T111 TH Han rệc 40 ác SH HT HH TT HH TH TH TH TH TH Tư cờ 40 c2 2121 1n 11H T121 11T HH1 H115 g5 ngày 40 2.2.3.1.2 Humeœn resOUrCe mOfiVGÌOFi Dedvdd PINGNGIO! CPONYSIS ws scxesricsncnssnsatsontersnnsnnsnsuneonnncsnceneos eseansenypyneasentexenteeenosseustexnensaysynanannsanws 44 2.2.3.3 The bank's CUITUFE AN FEPUTATION cc eeeceessssceecesceseescsecsecscsecsecsesacsacsevscsssscseseceeseseess 5] 2.2.3.4 Internol fac†ors evdlUd†iOn rmQÌX . - - + Sa S4 v3 v1 11 111 11 1111111581181 3n rsec 53 2.2.4 SWOT ANALYSIS nh ảảằ 55 2.2.4.) SHENG 55 VN 592 ốc 2.2.4.3 ODDOr†Uniifi©S 2.2.4.4 Thr@CÏS 2.2.4.5 SWOT mIÌX CHAPTER 3: CHOOSING cố LH 2211 10110 HH HH TH ng HH1 1110111101011 TH HT TT Só nến 57 HH TH TT St 1211121111111 11 1 HH S9 TH TH TT TT ưệc 61 BUSINESS STRATEGIES AND SOLUTIONS TO APPLY STRATEGIES FOR BIDV - THANG LONG BRANCH IN THE PERIOD OF TIME 2012-2016 o.oo cccececcccsccesscseecseeeeees 63 3.1 Long-term development trend of BIDV Thang Long ce ccccccccccesscescscscesescscescscesees 63 4.1.1 Long †erm target 2020.0 ceecccscsesscsscscssescsscsscscsssssssecscsaceaesaesccssacacesesacsucaecasssessessaceasceeses 63 3.1.2 Short term target through financial strategy during from 2012-2015 cccccscscssssseseseseees 63 3.2 Choosing strategy and solutions to apply strategy ooo cccccccccecscscsseccccscscscsesescesseesees 66 3.2.1 CHOOSING SHOE GY eeeceescccsscsesescsesescscsvscscscssssvavavscecsevsvassesssesasavssasussavavasssiceessvavasscecsevaveses 66 3.2.1.1 Choosing strategy Vid SWOT Matix c.cccscscsscsesesescesscscscscscssscssscacsvscscacacatacstststesvassessaes 66 3.2.1.2 Choosing strategy Vid QSPM Matrix cccccccscscscscsescscscecscsescacscsesescatacacasacavscsesssssevesceasees 67 3.2.2 SOIUPIONS TO APPly StATEGIES ec eeccscscesescscescscsesecscsecsesecsesessesesacsssasacsessssssscscsesesassececseees 69 3.2.2.1 Solutions to diversify DANKING SEPVICES .c.ccccscessscssssecsescecscscssscscstscscsescasscseseevevevecevseees 69 3.2.2.2 Solutions to diversify DANKING Credit SEPVICES oo cecesecesesescsesesesssescseecscscecseeveuseeveveees 72 3.2.2.3 HUMAN FESOUFCE SOLUTION eececcesescsessesesesescscsescscscscscssssasacasscavscasscacaacassvavasatsavacevavavavaes 73 3.2.2.4 Morke†ting develoDmen† s†rQ†@Qy - TT HH TH TT TH TH TH TH Tnhh re 3.3 Conclusion 221211211 111 eo 7ó 77 Ree ES ES vcr svssrrennssesesptstebeosEHU 0107803588138 Kt denanmnmnnnnanneoununererecexinesamurncepmmsanueergeraveremmeneesvavesseesues 78 PPE LO A CŸ trynisgagipdiidfii2i8 lu, 2s ụcgọ E710 8/6:8109050 -20,-4240101200.11L81-71E-00TT7 1900108.2U8 -17T2T 7717 TT T7 TT 01 07177787 78 Strategic Management Capstone Report Assessment Group GRIGC INTER NG N/ PROGRAM SINESS LIST OF SYMBOLS ADMINISTRATION MASTER AND ABBREVIATIONS No Symbol l ADB Asia Development Bank ATM Automated teller machine BIDV EFE GDP IFE NHBL Retail banking NHTM Commercial bank MIC Ministry of Information and Communications 10 POS Point of sale II PPP Purchasing power parity 12 QSPM 13 BIDV _| South East Asia Commercial Joint Stock Bank 14 WB 15 WTO Meaning | Bank oflnvestmentand Development of VN External factor evaluation matrix —_| Gross domestic product an Internal factor evaluation matrix Quantitative Strategic Planning Matrix World Bank World Trade Organization Strategic Management Capstone Report Assessment Group _ ro; y / C rlà{[C¿;( ‹ S) re ALIAS Đ2OGRAM NTERNATION BUSINESS ADMINISTRATION MASTER rat LIST OF FIGURES AND TABLES List of figures [Figure 2.1: Organization chart of BIDV - Thang Long branch ¿5-5 sscscvsa ligure 2.2: Credit mechanism chart according customer type .c.cccccccscsseessseceeeeeseeees 36 Figure 2.3: Credit structure according to borrowing time c.ccccceccccessseceeseeeeecseeseseees 49 Figure 2.4: Opening coefficient of Vietnam economy (%) cccccccsscsesesecesseseeeecsceceees 58 Figure 2.5: The number of transaction offices of some commercial banks - 60 List of tables Table 2.1: Matrix of competitive picture .0.0 cccccccceccseeseccscescescscesssscsseseeacsecaseecsees 30 Table 2.2: Credit mechanism according to CUStOMET c.cccceseseeceeeseesesescesescsceseseees 36 Table 2.3: EEE, mafFIX S1 1S 1n HH n TH Hà TH TH HT Tnhh TH ngư 38 Table 2.4: Assessment prOC€dUre - - SE S1 03 011211201 11T ngan 42 Table 2.5: Some operation crteria of BIDV — Thang Long Branch during from 2008 Z) 44 Table 2.6: Income from credit activities of BIDV Thang Long branch from 2008- DLO sessccrenenexesninsi nen tas aiisichousnenensneonnenvemesnecny goveysustee Y0 996315000015025001079EX5E39TS95.701045070201 913560 X6.3 50 Table 2.7: Long -Medium term overdue debts are assessed in BIDV —Thang Long Branch o cc ececeesescscscsceesessseseseessnesssenssesesessseesasasessusvesesssesscsevevscscscsasavavacacecessasacacansesavaces 51 Table 2.8: Assessment matrix of internal factor .0.ccccccccccccscssesescscescecceseseeecscseeseseees 53 Table 2.9: SWOT matrix for BIDV — Thang Long 5-5-6 5S 3v t£zEsEzEsecez ó] Table 3.1: Development target of main financial indexes till 2015 -sccscs=a 63 Table 3.2: Development target for credit activity till 2015 oo cccccesccsscsesecsescsecesseees 65 Table 3.3: QSPM matrix of BIDV - Thang Long c.c.ccccccccsscscsseseseeeseseseseseestecseseseeees 68 Strategic Management Capstone Report Assessment Group ⁄ ( I R IC 9) (TERNATION BUSINESS ADMINISTRATION MASTER PREAMBLE Reason for theme selection: The year Organization achievement of 2010 is the fourth After 20 of innovation, as well as growth speed year, our Vietnam economy of Gross joined World Trade has achieved a lot of great National Products (GNP) is over proposed plan Although, the economy has not been developing strongly as economy of other countries in the area, our economy has been proved to develop higher and higher Bank The economic contribution development of Commercial is significant The system banking in our activities country have for been our actively contributed in capital mobilization and increasing investment capital for production and create favorable condition to attract foreign capital for national economic growth Commercial economy bank system in Vietnam has great and strong development in in all fields including quantity, scale, content and quality, which is really pioneered in innovation of economic mechanism and deserves to be efficient tool to support Government in limiting and driving back inflation and stabilize price For above reasons, our team decided to select the theme “Building business strategy for BIDV— Thang Long branch in the period of 2012-2016” Researching target: To study the business environment of Thang Long Investment and Development bank branch, from that could propose to set up the business strategy for BIDV — Thang Long branch during period 2012 - 2016 Researching method: - Data Development collection: Bank, Thang Reports Long and documents Investment and of Vietnam Development Investment branch, and Vietnam Joint Stock Commercial Bank for Industry and Trade, Vietnam Bank of Agriculture and Rural Development is stated in newspaper and internet - Analysis method: Statistic, interpretation, inductiveness Strategic Management Capstone Report Assessment Group ⁄ Cz]RRIC¿( ` RAINING rf F SRAM INTERNATION BUSINESS ADMINISTRATION MASTER - Data analysis and appraisal about absolute and relative numbers of criteria to analyze available documents So that, our group could give comment on banking activities Theme contribution: Great homework is based on theoretical basis relating to strategic administration and applies that theory to analyze the strong and weak points, chance and challenges of BIDV- Thang Long branch By the way, could determine the business strategy and propose solution to implement these strategies, especially in the background that Vietnam joined WTO and will completely implement commitment in banking until 2016 Structure of great homework: A part from opening, conclusion, appendix and list of referent documents, the essay includes the following chapters: Chapter 1: Theoretical basis about strategy and strategic management Chapter 2: Analysis business environment of BIDV — Thang Long branch Chapter 3: Choosing business strategy and solutions to apply strategy for BIDV — Thang Long from 2012-2016 Source: https://InforMap.vn Strategic Management Capstone Report Assessment Group ⁄ ( rR IC TRAINEE, ( RAM BUSINESS INTERNATION ` CHAPTER BR: 1: THEORETICAL STRATEGIC ADMINISTRATION MASTER BASIC ABOUT STRATEGY AND MANAGEMENT 1.1 Concepts and theories 1.1.1 Strategy and strategic business management The overview about management Management is a process aiming at achieving the success of desired goals and objectives by using available resources efficiently and effectively From this concept, we can see that management is a series of necessary and constant activities for the existence and development of all organizations The goals of management are create surplus value, which means finding out suitable methods to implement the jobs in order to accomplish the highest efficiency at the most acceptable cost of resources Management comprises basic functions: planning, organizing, leading (or directing), and controlling an organization Concept about strategy: Strategy is a range of scheduled goals and policies implemented in a long term based on exploiting the most of the resources of the organization to meet the development goals Therefore, the strategy should be formulated as detailed plan or general operational diagram to drive the company to the expected goals Concept about business: According to our country’s Article of Business Law promulgated on February 2" 1991 “Business means the continuous conduct of one, several or all of the stages of the investment process, from the production to sales of the products or provision of services in the market for profits.” Therefore, we can understand that Business is a range of activities aiming at producing profits of the economic subjects in the market Strategic business management: Strategic management is a process in which managers determine the long-term goals and formulate great oriented methods to achieve these goals on basis of using the most of existing resources and possibly mobilized resources of the enterprise The goal of a strategy is find out opportunities; or in other words, increase opportunities and look for competitive position Therefore, strategic management is a process including main phrases: Strategic Management Capstone Report Assessment Group ... CONFIRMATION OF BANK FOR INVESTMENT VIETNAM - THANG LONG AND DEVELOPMENT OF BRANCH We, Bank for Investment and Development of Vietnam — Thang Long Branch confirm that we agree the research group including... Government in limiting and driving back inflation and stabilize price For above reasons, our team decided to select the theme ? ?Building business strategy for BIDV— Thang Long branch in the period of 2012-2016? ??... Researching target: To study the business environment of Thang Long Investment and Development bank branch, from that could propose to set up the business strategy for BIDV — Thang Long branch during