MBA THESIS STRATEGIC MANAGEMENT “BUSINESS TRATEGY FOR THE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – YENBAI BRANCH IN THE PERIOD OF YEARS 2010 – 2015” TABLE OF CONTENTS ACRONYMN TABLE Error: Reference source not found Approval by GaMBA Program: Error: Reference source not found DECLARATION Error: Reference source not found CHAPTER I Error: Reference source not found INTRODUCTION Error: Reference source not found 1.1 Necessity and significance of research topic: Error: Reference source not found 1.2 Goal of research/ objective of business development strategy .Error: Reference source not found CHAPTER II .Error: Reference source not found COMMON ISSUES IN STRATEGIC MANAGEMENT .Error: Reference source not found 2.1 Concept of business strategy Error: Reference source not found 2.1.1 Viewpoints in approaching corporate business strategy Error: Reference source not found 2.1.2 Concepts of corporate business strategy Error: Reference source not found 2.2 Features of business strategy Error: Reference source not found 2.3 Type of business strategy Error: Reference source not found 2.4 Process to build business strategy Error: Reference source not found 2.5 The objective necessity of the business strategy of the enterprise Error: Reference source not found 2.5.1 The importance and benefits of business strategy Error: Reference source not found 2.6 The planning of a business strategy of a enterprise Error: Reference source not found 2.6.1 Requirements and grounds for the planning of business strategy Error: Reference source not found 2.6.2 Ideas to be fully understand when making business strategies Error: Reference source not found 2.6.3 Steps for making business strategies of the enterprise .Error: Reference source not found 2.6.5 Identifying objectives of the enterprise Error: Reference source not found 2.7 Build the strategic model Error: Reference source not found 2.7.1 The model of growth strategy Error: Reference source not found 2.7.2 Stable strategy Error: Reference source not found 2.7.3 Cutting strategy .Error: Reference source not found 2.7.4 Combination strategy Error: Reference source not found 2.7.5 Outward strategy .Error: Reference source not found 2.8 Selection of strategy option Error: Reference source not found CHAPTER III Error: Reference source not found STRATEGIC ANALYSIS AT BIDV - YEN BAIError: Reference source not found 3.1 Overview of Bank for Investment and Development of Yen Bai Error: Reference source not found 3.1.1 Process of formation and development Error: Reference source not found 3.1.2 Structure and management apparatus of the branch:Error: Reference source not found 3.1.3 Human resources of the branch: Error: Reference source not found 3.2 External environment analysis .Error: Reference source not found 3.2.1 Analyzing local socio-economic environment: Error: Reference source not found 3.2.2 Analyzing market share, market Error: Reference source not found 3.2.3 Analysis of customers .Error: Reference source not found 3.2.4 Competitor analysis Error: Reference source not found 3.3 Internal analysis: .Error: Reference source not found 3.3.1 Analysis of products and services: .Error: Reference source not found 3.3.2 Analysis of the model of distribution channels network Error: Reference source not found 3.3.4 Analysis of credit operation: Error: Reference source not found 3.3.5 Analysis of services operation: Error: Reference source not found 3.3.6 Analysis of technologies: Error: Reference source not found 3.3.7 Analysis of the training resources: Error: Reference source not found 3.3.8 Analysis of assets, liabilities management- risks management: Error: Reference source not found 3.3.9 Financial Analysis: Error: Reference source not found CHAPTER IV .Error: Reference source not found BUSINESS STRATEGY FOR BIDV – YB for the period of 2010 – 2015 …76 4.1 Strategic plans of BIDV until 2015……… ………………………… 76 4.1.1 Purpose – Principle Operations…………………………………… 76 4.1.2 View Error: Reference source not found 4.1.3 Ten major objectives should be priorities of BIDV Error: Reference source not found 4.1.4.The basic targets for the period 2010-2015.Error: Reference source not found 4.1.5 Detailed Objectives for each major business: Error: Reference source not found 4.2 Objectives, the guideline work, the idea of strategic business view of BIDV – Yen Bai…………………………………………………………… 79 4.3 General targets (quantitative and qualitative):…………………………… …84 4.3.1 The period of 2010-2012: Error: Reference source not found 4.3.2 The period of 2013-2015 Error: Reference source not found 4.4 Determine partial plans: .Error: Reference source not found 4.4.1 Capital mobilization plan: Error: Reference source not found 4.4.2 Credit plans: Error: Reference source not found 4.4.3 Plans for credit quality and bad debt handling: Error: Reference source not found 4.4.4 Plan service: .Error: Reference source not found 4.4.5 Plan for extending network and distribution: Error: Reference source not found 4.4.6 Plan for human resource training and development: Error: Reference source not found 4.4.7 Plan for development and information technology application:Error: Reference source not found 4.4.8 Plans for risk management: Error: Reference source not found 4.4.9 Plans for operational management, business management: Error: Reference source not found CHAPTER Error: Reference source not found CONCLUSION Error: Reference source not found REFERENCES Error: Reference source not found ACRONYMN TABLE No 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Terms Administrative Department Internal Financial and Accounting Department Credit Management Department General Planning Department Risk Management Department Customer care Department Customer Service Department Fund Service and Management Team Yen Binh Transaction Office Computing team Savings Treasures Risk Reserve Fund Bank for Investment and Development of Vietnam Bank for Investment and Development Bank - Yên Bái Agriculture and Rural Development Bank Commercial bank Vietnam Bank for Social Policies State Treasure Private Enterprises Technology and Informatics Public servant Socialist Fixed asset People Credit Fund Acronym TCHC TCKT QTTD KHTH QLRR QHKH DVKH QLDVKQ GDYB ĐT QTK DPRR BIDV BIDV-YB NHNo & PTNT NHTM NHCS KBNN DNTN CNTT CBCNVC XHCN TSCĐ QTDND Approval by GaMBA Program: DECLARATION We commit that the content of this assignment has not been provided to any Master program as well as any other training program We also commit that this assignment is our collective effort of all group members Analysis and conclusion in this assignment (beside quote) are all the working results of 11 members of our group Signature of group members Dang Thi Kim Phuc Nguyen Van Tri Ha Cam Thuy CHAPTER I INTRODUCTION 1.1 Necessity and significance of research topic: One organization in general or one enterprise in particular, who wishes to succeed in business market, needs to have capacity to deal with all situation – they have to totally self-control, to make decisions, and be responsible for every operation of the business So it requires the organizations to grasp the changing tendency, know how to use best the strengths and limit the weaknesses, take advantage of good opportunities to overcome challenges From this foundation, the creative business steps will be performed, in other words, we must build the suitable business strategy for ourself In recent years, most state-owned enterprises have operated the business without proper business strategy The run the business depends on the function of assigned missions in the decision of establishing enterprise, The State will hand the annual business plan over through the Ministries-sectors-local authority (authority in charge) They will assign the plan to the enterprises for implementation based on the focus planning system That means what the enterprises produce, what kinds of products, quantity, quality, and varieties of products, scale, technology, raw material, distribution, and consumption, etc., are all decided by the State Today, in the market economy mechanism, what enterprises produce, what sort of product, quantity, quality, varieties of products, scale, market share, market – customer – consumer –competition, etc will be regulated by the market and the enterprises; The State holds the role of orientation, business guideline, legal frame building, mechanism – regime policies for the enterprises and market At present enterprises frequently lose their direction if there is no business strategy If there are unclear objectives and purposes, business operation will run inefficiently, which might lead to failure – bankruptcy In addition, the business may have no competitiveness and cannot have brand in the business market; It is possible to say that the role of business strategy is getting more particularly important to enterprises, especially in the context of global economic integration BIDV has complied with the requirements – missions of the Government and of the State Bank of Vietnam for the recent years It has built up its business strategy and then deploys the annual business plan However, the building of business strategy and business plan deployment remains inefficient and is left beyond the growth The scale simply focuses on volume, not aware of quality and efficiency; portability – creativeness – breakthrough in business not yet to improve; Compliance – transparency is still weak; Business strategy building is extremely important for each enterprise to develop; the strategy is considered as a guiding star, a compass that conduct business ship in the right direction and objective, it will also be a will- fundamental method – business manner which indicates core persistent value of the enterprise 1.2 Goal of research/ objective of business development strategy Originating from the goal-objective business, which is to make profit, BIDV aims to become a multi-purpose and multi-possess commercial bank that offers diversifications and standard-criterion heading for international practices It expects to have a quality similar of that of regional banks; it aims to be the top leading bank in Vietnam and gain a firm position in Asian region Gradual integration in the direction of being a modern bank operating under the guided practice-standard basis will help BIDV be strong enough to compete and to exist as well as make persistent development In order to complete this task, BIDV needs to renovate mindset, innovate activities, reform business management and executive management, make breakthrough for foundation of growth More important, it is necessary to set up business plan from branch level to the entire bank network CHAPTER II COMMON ISSUES IN STRATEGIC MANAGEMENT AND BUSINESS DEVELOPMENT STRATERGY 2.1 Concept of business strategy 2.1.1 Viewpoints in approaching corporate business strategy The term of strategy existed for a very long time, previously the term first used in the military Today, it is widely used in most fields of economy, politics and social culture Particularly in the economy field both in micro-economy and macroeconomy In macro-economy, we may find the concept such as “industry development strategy”, “industrialization of exports strategy”, in micro-economy, the strategy term combines with the concept of corporate management; some popular terms are “marketing strategy”, production strategy”,” business strategy” The appearance of business strategy concept is not simple borrowing but it originates from the necessity reflecting the actual objective of corporate management in the market mechanism We will find out some methods in approaching corporate business strategy as follows * Classical viewpoint This viewpoint came out before the 1960s, based on this viewpoint, the enterprise can optimize and plan for all input factors so that it can create long-term favorable competitiveness edge in an aim to achieve goals efficiently and maximize profit In reality, year 1970 this approach lost its meaning, due to not mention to the external environment and whole activities of the enterprise was directed by chief accountant and director On the other hand, the competition appeared among the regions North America, South America, Eastern Europe became more severe at that time It required the enterprises to have common voices of collaboration and to figure out the competitiveness factors * Evolutional viewpoint This viewpoint sees “The enterprise is the living body that is affected by external environment, meanwhile this living body controls itself to adapt to the surrounding environment” So this viewpoint does not regard the enterprise as a black box On the contrary, the enterprise is the open system influenced by external environment, “The business is unable to sit in four walls that it must open window to observe the sky of full stars”, in an effort to seek business opportunities and detect the threats to the business * Processing viewpoint Pursuant to the processing viewpoint, the enterprise wants to succeed in the market; it must go through a long process of doing business During the period, the enterprise will gradually accumulate experience to acquire the business secret According to the calculation of American Harvard University: It takes three and half years for a business to integrate into the market and three to five years to affirm its position and over eight years to succeed in the business market Thus the business must possess the long-term plan and must build long-term business development plan in its market (Website://bwportal.com) * Systematic viewpoint This systematic viewpoint assumes that business enterprise is the element of economic system in which the enterprises have the relationship one another, they are strictly governed and impacted by their environment (environment of economic system includes collective element, subsystems such as politics, law, social culture…) or economic system influences on its environment Hence each enterprise (element) when conducting business activities not only look at enterprise itself but also pay attention to the influence of other element in the system (industry environment) as well as the external system and it’s called external environment of enterprise In such a way, it is essential matter for enterprise to make environmental analysis 10 savings Attracting customers by giving flexible mobilized capital type basing on the new savings types of Bank for Investment and Development of Vietnam Offering preferential policy for big customers, traditional customers, give preference on money transfer services for individuals and economic organizations, who have big and regular amount of credit deposit to ensure a stable business foundation for the branch Improve customer service quality (customer service behavior, professionalism…) Making bank staffs and officials be fully aware of customer service quality, importance of customer in the operation of the bank Promote approaching and marketing to potential economic organizations/ institutions and individuals At the same time, the branch should also make full use of capital from State Treasure, BIDV and other financial institutions in the area Basing on the adjusted interest rate (FTP) of the headquarter, the branch should have a flexible and effective operation and management measures (ensure the liquidity, adequate reserve the surplus of which will increase FTP charge); * Credit activities: - Closely follow the instruction and direction for the credit task of Bank of Investment and Development of Vietnam in each period; - Timely grasp the guideline, policy for socio-economic development of the province for the period 2010-2015 On the basis of economic development strategy and policy of the province, carry out the analysis and assessment to establish several credit investment policies appropriate with the capacity and actual conditions of the province and capacity of the branch - Have suitable policies to ensure the suitable balance between loan interest rate and FTP mobilized interest rate for each credit products, each type of period so that to avoid the situation of lower loan interest rate than FTP mobilized interest rate - Create a firm customer base, concentrate on small and medium enterprises, nonstate owned enterprises, guaranteed loans, individual customers to improve the rate 88 of account debit deposit in retail/ total debit deposit towards to the standard rate of the whole system - Periodically review customer list, rearrange the list according to the Internal Credit Ranking System issued at Decision No 8598/QĐ-BNC on 20/10/2006 of General Manager of Bank of Investment and Development of Vietnam, basing on which to propose measures and method to gradually decrease debit deposit from 3-5 group of customers and decrease the debit deposit of Group in line with the standard of Bank of Investment and Development of Vietnam - Gradually improve the capacity of customer service staffs, risk management staffs so that they can consult to customers during investment project planning, project implementation, and project operation Improve the activities of investment project appraisal, customer appraisal to ensure the independence, objectiveness during appraisal process, risk management Only disburse the capital if the project has strong financial capacity, ability to pay the debt, credit risk management at the beginning of project - Pay attention to supervision after disbursement to ensure that the loan is used with the right purpose, minimize the risk to the loan; * Develop the services and make full use of advantageous and distinct products - Diversify types of credit products; give priority to the market for individual customers, small and medium enterprises; attach credit growth with the development of banking services; incessantly improve the competitiveness of credit products according to the demand of market mechanism and international integration route; - Concentrate on new services and products, offer modern products of the bank (SMS, Online banking (BIDV-Directbanking, BIDV-VNTopup,…); - Pay attention to service quality, customer service behavior, shortern transaction time, simplify transaction process and necessary document for transaction, pay 89 attention to improve one-gate transaction, package transaction, cross-products and services - Build selling culture during serving clients, accelerate marketing - advertising introducing of products of BIDV, especially new products to create the distinction between BIDV and its competitors, improve its image in the area - Install more ATM in the province to effectively develop the salary payment via bank account - Be active in finding, marketing new customers, potential customers to increase source of capital, especially the one with low mobilization costs, best supply of banking services in order to meet the maxim of customers’ demand 4.4.3 Plans for credit quality and bad debt handling: General targets: - Improve credit quality, measure and manage the risks in credit activities; - Continue to promote the handling of bad debt, collect deferred interest, carry out the classification of bad debt and extract enough DPRR according to the plan assigned by Bank of Investment and Development of Vietnam Specific targets by 2015: - Overdue debt rate < 2%; - Bad debt rate < 3% Specific policies, solutions, measures: - Supply credits in accordance with the procedures, credit, and handbook; - Strictly implement the debt classification and establishment of DPRR according to Decision No 493/2005/QĐ–NHNN of State Bank of Viet Nam and Decision No 9365/QĐ- BIDV on 27/11/2006 of Bank for Investment and Development of Vietnam about Policies on Establishment of DPRR - Continue to maintain the assessment of credit quality, so that measure handling bad debt, problematic debts Increase the control and information Increase to control and update information for customers timely 90 - Have more periodical inspection and evaluation on credit quality, periodical and sudden strict management on risk 4.4.4 Plan service: General targets: - Become a bank with the best service in the province; - Meet the demands for financial-banking services of customers the best; - Develop new services: Electronic banking services (Internet/phone banking, ATM, POS/EDC, customer consultancy services, capital management) Specific targets by 2015: - Mark share for banking service supply in the province accounts for over 50% - Density of net service income/before-tax profit reaches 30% Specific solutions, measures: - Focus on developing information communication technology strong enough to develop the application of product supply for customers at all transaction point of the branch in Yen Bai province - In short-term, it is necessary to develop new products, services, services attached to the development of modernization project - Regularly train and create human rights in relevant parts related to applied process and develop products so as to grapes Knowles, updated information necessary to develop and operate new products - Appropriate price compatible with product-service quality, Study further to subjective so that have less boldness to have appropriate products, regional shirt 4.4.5 Plan for extending network and distribution: General targets: - Continue to finish an organizational model and manage the activities of the branch under the organization of Bank of Investment and Development of Vietnam - Build a project of network development in the period of 2010-2015 ensuring the reality and ensure successful business POS/EDC 91 Specific targets by2015: - Period 2010-2012: Upgrade saving funds into transaction station, further study the network in the city and Nghia Lo province _ Period of 2013-2015 Study to extend the network and create a key district that at several incomes such as Van Ten, Tran Yen… Specific solutions, measures: - Carry out the survey and assessment of the market; closely follow the project of network development approved by Bank of Investment and Development - Meet all the demand for human resources ensuring the network extension plan - Diversify distribution channel and effectively distribute; - Quicky improve payment activities and service supply to individual customers at established branch 4.4.6 Plan for human resource training and development: General target: - Recruit officers according to the procedure, establish plans, and assign officers for the period of 2010-2015; - Build a professional staff for each operational field, each new product, service; - Select and supplement key officers according to their capacity, focus on training further in terms of professional skills and political arguments Specific targets: - By 2015 total employees of BIDV-YB is 115 officers; - In which undergraduate and graduate level: more than 85%; - 100% key officers are at intermediate level of political arguments and equivalent upwards; - 100% managers are at senior political arguments Policies, solutions, measures: - Quickly build and strongly develop the strategy for human resource development meeting integration strategy well (2010-2015); 92 - Apply in accordance with the regulations for recruitment activities, assignment, planning and management of officers; - Apply officer standard system for many levels of leaders, for each specific title, profession under the direction of Bank of Investment and Development of Vietnam At the same time, along with specific procedures on responsibility, task, and authority of each officer From that, appropriate and satisfactory treatment, awarding policies are introduced; - Build and executive policies for attraction, maintaining and development of talented people; - Make best us of the efficiency of education project, technical support of Bank of Investment and Development of Vietnam in order to improve the officers’ capacity; especially in the fields related to laws, finance and international bank - Rearrange organizational structure in line with business conditions and requirement of modernization project, TA2 (Modernization) project and ensure effective operation and convenience for customers - Encourage all staff working at the branch to have self-training to improve their abilities, knowledge and skills with the motto “Good at one carreer, know many carreers" 4.4.7 Plan for development and information technology application: General targets: General target for ICT development of BIDV-YB by 2015 is to make a breakingthrough in business strategy, through which making a sustainable market, increasing the market share for BIDV-YB by ensuring the construction of modern ICT infrastructure and plentiful effectively in every aspect of business and management operations Make attempt by become one of the banks capable to apply ICT and advanced ICT level in Yen Bai province by 2015 Specific targets: 93 - Build and upgrade ICT infrastructure, especially network and communication infrastructure to develop applications in wide range network of BIDV; - Enhance the training of human resources in ICT according to long-term target; - Use ICT in every business and management operations, modernization of professional procedure, giver priority to integration demand, improve competitive capacity and business efficiency; - By 2015 all professional officers use and develop fluently computers, ensuring to meeting sufficient demand for regular and long –term human resources for ICT development Policies, solution, measures: - Carry out the policy to concentrate resources for renovating technology strongly: From infrastructure to professional procedures, management and operation Invest in modern technology, considering technology as the key to carry out the development of products, service, customer’s service; - When building technical, technological infrastructure serving modern financial banking operations; - Fully equipped with machines and facilities to ensure business effectively Understand and comply with strict regulations on the operation, safety and security for information technology network in branch - Improve the quality of transmission to ensure smooth information systems, timely information to executive management, avoiding the risk occurs - Implement good management information systems to meet the bank management requirements - Management and operation of automated teller machines, Point of sale to ensure effectiveness - Promptly - fully – accurately update on new software programs provided by the Bank for Investment and Development of Vietnam - Provide training and advanced training to computing staffs at the branch to be able to master and smoothly operate the system BDS, the modernization project 94 4.4.8 Plans for risk management: Banking operations are affected by the economy and risks, including risks from customers, risk from the business environment mechanism and risks from inside the bank due to the failure to conform the loose rules, procedures, regulations…So, risk management determine the security in banking operations *General target: Ensure security and efficiency; reduce every risk possible to happen Manage thoroughly main types of risk: credit risk, market risk, fully conform to security limits * Policy, solutions, measures: - Apply risk management policy of BIDV for each type of risk; market, operation, etc Determine the limit of risks for each period of ensuring security and operational efficiency On that basis determine operational limits for each field and professional officer; - Apply the system of risk management tools: system of signs and signals standards for measuring risks, build risk management programmers… At the same time study and introduce into development and application professional products in order to prevent risks (derivative professional); - Develop thoroughly and apply risk management handbook, internal auditing handbook, etc - Promote internal checking and inspecting at the Branch, strictly control potential risks - Increase revenues from credit activities through scale expansion and credit growth Limit arising overdue debt, debt to group due to customers was defined as decreasing abilities of loan payment - Promote the services, especially payment service, guarantee services, currency trading, card services, BSMS, basing on which to increase the proportion of service revenue / total revenue 95 - Successful implementation of the Law on thrift against practice which was been issued by the Government In the year, strive to reduce from 70-10% of expenses such as materials, printing paper, fuel, allowance and telecom cost, cost for reparation of fixed assets - Strictly control credit quality, minimize the bad debt incurred (debt group 3, 4, 5), on that basis to reduce the extraction for risk reserve for credit activities - Have enough extraction for DPRR accordance with the State Bank and Bank for Investment and Development of Vietnam, after balancing the profit, ensuring income for workers 4.4.9 Plans for operational management, business management: Operational management, business management determines the existence and shortterm as well as long-term development So it is necessary to regularly renovate operational management to adapt to the development requirements in each period General target: - Change the organizational model in accordance with the direction of the Bank of Investment and Development of Vietnam to effectively carry out annual business plans; - Carry out full of debit asset-credit asset management including: liquidity, interest rate risk, capital security; - Risk measurement and management may arise in every operational aspect of the branch Policies, solutions, measures: - In operational management, must conform the laws; observe the regulations on operation of General Director, Director Build working regulation, handing over regulation, assessing officers to ensure the transparency, strict discipline; - Introduce into the operation of organizational model, management under the direction of the Bank of Investment and Development of Vietnam Clearly determine, authority, responsibility of departments as well as the relationship of 96 operational extend between Department, Group, Saving fund, transaction point in the branch - Improve the institution; enhance the management capacity and strategic planning for operators, managers for the period of 2010-2015 * Self-inspection, self-supervision and obedience to operational regulations: - Absolute compliance with operating discipline of the General Director of all time - Improve the role self-inspection and control for each part of the professional process while working, ensure compliance with procedures, regulations and laws - Gathering information related to professional activities (especially credit activities) to make risk management policies in time * Improvement of brand and culture - Improving performance of information communication in building BIDV brand in Yen Bai - Well organize the work of direct communication to introduce, promote products and BIDV’s image - Make full use of channels of information to make propaganda and brand development - Maintain a good information mechanism within the bank through the dissemination of information about products, services, development orientation of the sector and branch to all staff (employees) - Maintain internal intranet site associated with the activities of the headquarter, besides enhancing the public relations activities, enlist the maximum support from local government leaders - Maintain and develop BIDV culture within staff of the branch: Setting up the effective working atmosphere and arise traditions and culture of 50 years of collective staff of BIDV branches A good working atmosphere, social and open 97 leaders, clear job description and assignment with many measures to encourage people engrossed in work, maintain intimate relations and cooperation * Other activities: - Propagate and encourage staff and workers actively participate in thrift wastefulness practices in all activities of the agency Propaganda should be associated with the construction of BIDV culture, especially advocate staff to strictly comply standard of professional ethics, code of conduct for staff within Bank for Investment and Development of Vietnam - Accelerate the progress of construction of Branch Office to put into use soon - Protect the agency to ensure absolute safety of life and property 98 CHAPTER CONCLUSION Existing – developing safely and sustainably, banking business operation brings high profits; implement the mission of the Bank for Investment and Development BIDV-YB should select and set up specific targets, long-term targets for each period; the manner, the stage, specific strategies for each specific field of operation From the reality, the situation, competitive capacity – operational quality, operational efficiency of the Bank for Investment and Development Yen Bai branch, with methods of analyzing business environment (external environment – internal environment) determine the strengths – weaknesses, shortcomings, insufficiency in: Operational management, useful products – services, operational environment, market share, market, technology, customers, opportunity and challenge; subjective, objective reasons… from that build 2010-2015 business strategy of BIDV-Yen Bai BUDV-Yen Bai determines efficiency, security and growth in business operation as the mail targets in planning the development strategies for the period 2010-2015 The key target in this strategy is that: Build BIDV-Yen Bai to become a leading bank supplying products, services of high quality for customers in Yen Bai town Business target of BIDV-Yen Bai is to direct towards best serving customers, safe business operation, sustainable development with high profits Specific targets - Annual average growth of capital mobilization 22%; - Annual average growth of credit 28%; - The difference between income-expense 15%; - Bad debt rate < 3% on total account outstanding; - Overdue debt < 2% on total account outstanding; - Annual average growth of banking service income 35%; 99 With feasible specific targets, and partial plans and specific, creative solutions appropriate with the business environment of BIDV-Yen Bai, assigning the plans for departments, sections with measures for managing customers, checking, supervising, analyzing and assessing the regular implementation, along with renovations in business management-operational management of business strategy for 2010-2015 shall be successful In order to gradually integrate, along with BIDV system directed towards a modern bank, according to general rule and international standard, competitive enough to exist and develop sustainably This is the business strategy of Yen Bai Bank branch, if implemented successfully this will be a document for branches of the whole system to refer to build and implement business strategy of their branch * Limitations of the thesis and suggestions for further study: - Since the conclusions are drawn on the basis of the actual situation at BIDV-Yen Bai, it is possible to apply these conclusions, solutions into other banks which need further study - Despite efforts to study the materials, literature learned and read; however, since the author has to study and work at the same time, time set for completing the thesis is affected Moreover, the operation of a mountainous branch still face many difficulties, so deeply understanding the operation of the whole BIDV system is rather limited However, with enthusiastic help of the instructor as well as encouragement of professors giving lectures for the international business management program at the Job system and training technology center – Hanoi National University Our group hope and try to continue studying and developing the subject further in terms of literature as well as the application and following up the actual operational situation of BIDV, with the hope to contribute our small part to the success and sustain development of BIDV in the competitive and integral environment 100 * Suggestions and recommendations - It is suggested that Bank for Investment and Development of Vietnam regularly support in terms of capital, modern technology and professional techniques for BIDV-Yen Bai - The Government soon enacts synchronous financial-monetary policy, mechanism, creating legal corridor for the system of commercial banks to operate, gradually integrate sustainably Sincere thanks to the Job system and training technology center – Hanoi National University; Griggs University, USA Sincere thanks to the professors who enthusiastically instruct us to complete this course 101 REFERENCES Binkley, Allan Strategy and Application New York: NXB Alfred A Knopk.1992 Kolter, Philip How is Marketing Management Magazine.(1998) Charles W.L.Hill and Gareth R.Jones Strategic management book Translated version of HSB By Houghton Miffin Company., Boston, MA, USA ấn hành, Forth Edition 4 Conference documents of branches in ther Northern mountainous area – April 2005 Report on general planning on socio-economic development of Yen Bai in the period 2006 -2020 Report for years 2001 – 2005 operation, direction and tasks in the period 2006 – 2010 of State Bank of Vietnam – Yen Bai branch Report for years 2004 – 2008 BIDV – Yen Bai branch Website www.bidv.com.vn of the Bank of Investment and Development of Vietnam Strategic Management book for Master of Business Management International Training Course – Vientam National University, Hanoi 102 [...]... and ideas of which the center point is about the philosophy of business of the enterprise will answer the questions of what basic beliefs, expectations and prior philosophy of the enterprise are 2.4.2 The business strategy of the enterprise will determine objectives of business and operations of the enterprise in each period and scope for determining strategies made In addition, the business strategy... helps the enterprise combine their decisions with conditions of business environment In other words it helps the enterprise be active in making decisions The building of business strategies helps the enterprise make and prepare better business strategies by applying the method of system-access, increasing foundation and combination, and increasing the combination between staffs and managerial officers in. .. corporate business strategy and sector business strategy 2.4 Process to build business strategy As stated above, due to different concepts of business strategy presented, there are, therefore, a wide range of opinions of strategy as a result However, there is still one common point among those opinions, that is, the business strategy of a enterprise is, in fact, a general strategy of a enterprise in business. .. semi-finished products for assembly? The right determination of business lines and functions of the enterprise will facilitate the orientation and concentration of the enterprise into key links in order to create the competitive advantages in the determined market Based on the grounds of the strategic trio as stated above, the business strategy of the enterprise may gain its necessary trust However, business. .. planning business strategy of the enterprise in recent economic conditions of Vietnam In time of subsidiary, the concept of business strategy of a enterprise was less used and employed when enterprises did not focus on building their own business strategies It can be mainly explained by quotas set and determined by leaders and higher authorities But the business strategy in recent time is an important and. .. aspects: The business strategy helps the enterprise determine their purpose and ways Because of rapid changes of business environment of the enterprise which may lead to both opportunities and sudden risks, the building of business strategies will help such enterprises make the best use of opportunities and minimize risks to increase the competitiveness of the enterprise accordingly 17 The business strategy... implementing a right strategy for the enterprise Without a proper business strategy or effective implementation of such strategy planned, failure is a result of course Sometimes, the planning of business strategy is ignored due to the lack of full understanding of the manager on (1): the question what strategy is and the reason why it is so important, (2) how to combine all processes of planning for business. .. period and time + Business strategy helps combines staffs and managerial officers together in realizing objectives of the enterprise to create an internal strength of the enterprise + Business strategy helps increase sales, productivity and efficiency of the management of the enterprise and prevents risks and difficulties which may affect the enterprise 2.5.2 Indispensability and objectiveness of the. .. the determination of historic mission of the enterprise This mission is a message to express the reason for the existence of the enterprise In other words, what is the purpose for the existence of the enterprise? This is the prerequisite for determination of methods of action of the enterprise In the stage of market mechanism, any enterprise has their certain functions and tasks when establishing and. .. good standing of conditions of business environment which the enterprise is working in The business environment has its strong influences for it affects all steps of the building business strategies The ultimate strategy should be built based on expected conditions So, it is necessary to carry out the research and making estimates for the business environment of the enterprise 2.6.4 Research and making