LUẬN VĂN THẠC SĨ Xây dựng chiến lược kinh doanh công ty cổ phần PVFC chi nhánh Thăng Long THESIS MBA BUILDING BUSINESS STRATEGIES OF PETROVIETNAM JOINT STOCK FINANCE CORPORATION- THANG LONG BRANCH, PERIOD 2010-2015 AND ORIENTATION TO 2020 COMMITMENT We would like to commit that the content of research paper has not been submitted to any advanced program as well as any training program We also pledge that this research paper is the effort of members in the group The results, analyses and conclusions in this research paper (except for quoted parts) are the work achievements of the whole group SIGNATURE OF STUDENTS ACKNOWLEDGEMENT TABLE OF CONTENTS INTRODUCTION 1 The subject .1 Reasons for choosing the subject Purpose of research Scope of research Methods of implementing research Questions of research .2 Implications of the subject The limitations of the subject Expected result .3 10 Structure of the subject CHAPTER 1- RATIONALE 1.1 STRATEGY AND BUSINESS STRATEGY 1.1.1 Strategy 1.1.2 Business strategy and the selection of business strategy 1.1.3 The implication and role of business strategies 1.2 STRATEGY-FORMING PROCESS 1.2.1 Mission and vision 1.2.2 Strategic targets 1.2.3 Analyzing outside environment 1.2.3.1 Analyzing micro-environment .10 1.2.3.2 Analyzing micro-environment (sectorial environment) 14 1.2.4 Analyzing internal environment 16 1.2.4.1 Analyzing based on the field of doing business – Value Chain 17 1.2.4.2 The process of identifying steady competitive advantages 19 1.2.5 SWOT matrix .20 1.2.5.1 General theory of SWOT .20 1.2.5.2 SWOT matrix 20 1.2.6 Selecting strategies 21 1.2.6.1 Strategy of cost leading 22 1.2.6.2 The strategy of making products unique .23 1.2.6.3 The strategy of focusing on key things .23 1.2.6.4 The combination of those strategies 25 The summary of Chapter I .25 CHAPTER 2- BUILDING AND SELECTING BUSINESS STRATEGIES OF PVFC THANG LONG 27 2.1 AN OVERVIEW OF PVFC .27 2.1.1 Formation and development process 27 2.1.2 Types of products .27 2.1.3 Norms of business activities 28 2.1.4 Development orientation to 2015 and vision to 2020-2025 .29 2.2 Overview of Thang Long branch of Petrol Vietnam Finance Corporation 30 2.2.1 The establishment and development process 30 2.2.2 Organizational structure 30 2.2.3 The targets of the main business activities 32 2.3 BUILDING AND SELECTING BUSINESS STRATEGIES FOR PVFC THANG LONG IN THE PERIOD 2010 - 2015 .33 2.3.1 Outside environment analysis 33 2.3.1.1 Macro environment analysis – PEST Model 33 2.3.1.2 Inside- industry environment analysis- the M Porter’s five forces model 38 2.3.1.3 The summary of outside environment analysis result 45 2.3.2 Internal Environment Analysis – Value Chain Model 51 2.3.2.1 Value Chain Model .52 2.3.2.2 Identifying outstanding ability and sustainable competitive advantage 56 2.3.2.3 Synthesizing results of internal environment analysis .58 2.3.3 Matrix Analysis: SWOT 59 Summary of Chapter .61 CHAPTER – SELECTED STRATEGIES AND IMPLEMENTATION MEASURES FOR SELECTED STRATEGIES 62 3.1 DEVELOPING TARGET FOR PVFC TO 2015, ORIENTED TO 2025 62 3.2 PVFC THANG LONG DEVELOPMENT ORIENTATION UNTIL 2015 64 3.3 SELECTING BUSINESS STRATEGIES .65 3.3.1 General strategies .65 3.3.2 Selecting application strategies 66 3.4 PVFC THANG LONG’S SELECTED STRATEGIES 67 3.5 IMPLEMENTATION MEASURES 69 3.5.1 Implementation measures for strategy – Focal point strategy 69 3.5.2 Implementation measures for strategy 2- Distinction strategy 70 3.5.3 Measures for making breakthroughs 71 3.6 SUGGESTIONS ON SUPPORTING MEASURES .72 3.7 SHORTCOMINGS OF THE CAPSTONE PROJECT REPORT AND ORIENTATION FOR FURTHER RESEARCH 74 3.8 CONCLUSION 75 GENERAL CONCLUSION OF THE CAPSTONE PROJECT REPORT .76 REFERENCES 77 LIST OF ABBREVIATIONS Abbreviations GDP PEST Content PV PVFC PVFC Thang Gross domestic product Political- Economic- Social- Technological Model PetroVietnam (Vietnam Oil and Gas Group) PetroVietnam Joint Stock Finance Corporation PetroVietnam Joint Stock Finance Corporation – Thang Long Long SO Branch Competitive Strategies combining Strengths and Weaknesses of ST Company (Strengths-Opportunities) Competitive Strategies combining Strengths and Threats of SWOT Company (Strengths-Threats) Strengths- Weaknesses- Opportunities- Threats Matrix of TCTD TNHH VDL WO Company (Strengths - Weaknesses - Opportunities - Threats) Credit Institution Limited Charted Capital Competitive Strategies combining Weaknesses and WT Opportunities of Company (Weaknesses-Opportunities) Competitive Strategies combining Weaknesses and threats of Company (Weaknesses -Threats) LIST OF TABLES INTRODUCTION The subject Building strategies of PetroVietnam Finance Corporation – Thang Long Branch (PVFC Thang Long) period 2010-2015 and orientation to 2020 Reasons for choosing the subject In any enterprise, the designing of operation strategies is aiming at orienting the enterprise to get the soundest step to adjust its operation In the mechanism of the market economy, the formation of a suitable business strategy has an especially significant implication; it helps the enterprise soon achieve business development goals The effective implementation of business policies and strategies will help the enterprise develop sustainable The PetroVietnam Joint Stock Finance Corporation- Thang Long Branch is one of nine branches under PetroVietnam Finance Corporation It has come into being and operated since August 2007 and operates in the fields of finance and currency Although the Company has had business strategies and implemented them already; yet, they are only strategies in the initial steps and still have a lot of shortcomings and have not been built methodically Besides, financial and monetary operation is a relatively sensitive field; thus, the formation of a proper strategy in this period is badly needed and important to orient for the business strategies of PVFC Thang Long develop sustainable To be prompted by that reality, we have chosen the subject “Building strategies of PetroVietnam Joint Stock Finance Corporation-Thang Long Branch period 20102015 and orientation to 2020” Purpose of research The subject systematically collects the theoretical bases on business strategies to serve the research and building business strategies for the company Analyzing the impact of business environment on financial trading activities Well recognizing the opportunities and challenges, strengths and weaknesses of the enterprise From that, we have mapped out the measures on necessary business strategies to enhance the effectiveness of specific business strategies for PVC Thang Long Scope of research In the scope of this research, the authors only concentrate on studying, building and selecting business strategies to apply in the period from 2010-2015 Methods of implementing research The subject uses following methods: - Comparing, analyzing and generalizing: analyzing the data, comparing over periods then generalizing to give comment - Analyzing SWOT matrix: the technique is used to analyze and process the research’s result on environment, helping the enterprise formulate a strategy scientifically, etc - Statistical method: collecting statistics from tables and charts and drawing out conclusion of trends to evaluate the operation situation of the sector and the enterprise Questions of research - Why does the Company need to have business strategies? - If there are, what are suitable business strategies for the Company? - How to make selected business strategies take effect? Implications of the subject The subject has systematized the rationale on building business strategies and applied to formulate business strategies for PVFC Thang Long The subject analyzes the operation situation of PVFC and PVFC Thang Long and selects the appropriate business strategies for the Unit in the time to come The subject has put forward the measures to implement the selected business strategies for PVFC Thang Long Being the reference document for current branches and branches which will be opened in the upcoming time in the system of PVFC and other Finance Corporations The limitations of the subject The duration of research and the source of statistics for the research are limited The world’s as well as Vietnam’s economy has a lot of unprecedented fluctuations causing great impact on the financial and monetary market of Vietnam which results in the fact that the building of strategies is sometimes not close to the real situation sometimes Expected result - Selecting and building suitable business strategies for PVFC Thang Long - Setting the oriented base for the business and development process of the Company in the period from 2010-2015 and the vision till 2020 10 Structure of the subject Apart from the introduction, appendix and associated tables, the structure of the subject consists of three chapters: Chapter 1: Rationale Chapter 2: Building business strategies for PetroVietnam Joint Stock Finance Corporation- Thang Long Branch Chapter 3: The measures to implement the selected strategies CHAPTER 1- RATIONALE 1.1 STRATEGY AND BUSINESS STRATEGY 1.1.1 Strategy The term “strategy” originated from military sector with the meaning “the science on planning and controlling military activities”, “the art to give command on means to defeat the opponents” Starting from military sector, the term strategy is used much in business field in both macro and micro scale: socio-economic development strategy, mechanical and chemical industry development strategy; strategy to develop the corporation and the company with the content to define the fundamental long-term targets, action and resource allocation plans to exercise the target of the economy, the sector and the enterprise in the long run Coming into being since the 1960s of 20 th century, strategy and business strategy have been applied in many enterprises with different conceptions James B Quinn thought that “strategy is a model or a plan to coordinate the main targets, policies and action process into an ensemble” William J Glueck viewed “strategy is a uniformed, comprehensive and coordinative plan, designed to ensure that the basic targets of the enterprise will be exercised” Alfred Chandler, Harvard University defined, “strategy embraces the fixation of fundamental and long-term goals of the enterprise, at the same time selecting the method or action process and allocation of essential resources to realize those goals” In short, strategies of an enterprise have three following most common features: - Forming a general action plan toward the future on the basically long-term business goals of the enterprise; - Any changes of important policies and measures of the enterprises are made by the decision of the enterprise’s owner; - Setting up the order of action, implementing and resource allocating method to realize the goals of the enterprise - Successfully arranging capital for most projects of PVN and member of PVN; - Providing all the modern finance services to Vietnam market; - Carrying out management model and training the staff under international standard; - Internationalizing the bank trademark The period 2016 – 2025: The stable development period: - Keeping situation of top 10 strong joint stock commercial bank within area; stably and sustainable growing; - At the top of providing finance service in the field of energy within the area; - Completing management model under International standard; - Continuously broadening potential markets in the county and over the world 3.2 PVFC THANG LONG DEVELOPMENT ORIENTATION UNTIL 2015 Vision and mission PVFC Thang Long is one of nine branches of PVFC, sharing one common task as well as one common mission in the roadmap of integrating on internationally financial market, making the Petrol Vietnam Finance Corporation become a financial institution of Petrol Vietnam and a strong trade bank in the energy field of region Therefore, PVFC Thang Long must be successful in performing their brand name, image and its position in the financial and banking market Operating objectives - Building PVFC Thang Long to become one of the strongest branches in the PVFC system, and the most effectively operated branch of PVFC in the market of Hanoi and Northwestern provinces, ensuring the service quality to serve customers most optimally - Focusing on diversifying products, services and business operation which aims to meet the demand of the customers in the market within branch’s operating scale, determining enterprise credit as the key service - Building and developing the packaged products to serve better to special customer groups, especially the target customer group - Building and developing PVFC brand name, culture in both domestically and internationally financial market 64 Concrete objectives Period 2010 – 2011: Completing organization structure, training human resources to keep up with the conversion to trading bank’s model; promoting performance in some fields of energy, mineral, and infrastructure which are the firststepping stones on the development of comprehensive strengths of the whole system The average growth rate of the following year must double or triple the growth rate of the previous year Period 2012- 2015: Operating based on the model of commercial bank, the growth rate per year will be about 15%- 20% By the year of 2015, revenue and profit of the branch will been counted for 10% of corporation’s turnover and profit respectively Product orientation Focusing on the strong products – special credit products- such as the credit products in fields of Petrol, Energy and Mineral; ensuring the comprehensive development of the strong products by the form of product packages Market and customer Orientation Focusing on the area of Hanoi city and the Northern provinces Focusing on the customers who are the within Oil and Gas sector companies and the new enterprises 3.3 SELECTING BUSINESS STRATEGIES 3.3.1 General strategies Based on SWOT matrix analysis, PVFC Thang Long establishes basic business strategies as followed: Strategy 1: Maintaining strategic relations with traditional customers, and constantly increasing the number of new customers by improving efficiency and service quality for customers Diversifying its catalogue of services in order to provide customers with high quality products, moving forward to serving customers with the whole package for different services – Diversification strategy Strategy 2: Concentrating on exploiting new markets where PVFC Thang Long has advantages in terms of relations, for example customers in field of gas and oil, energy, mineral resource, high-class tourism – Focal point strategy 65 Strategy 3: Innovating, improving management activities to optimize its performance, cutting down on expenditure – Expenditure reduction strategy Strategy 4: Building a roadmap to train and improve professional knowledge for the staff, implementing incentive policy to attract more talented individuals – distinction strategy 3.3.2 Selecting application strategies The selection of appropriate business strategies is based on the standards set forth by PVFC Thang Long, after it has compared between different strategies in order to most sensibly carry out its strategy and apply weight method Based on the operation characteristics of PVFC Thang Long, criteria selected and assessed include: trade mark, technology, corporate culture, administration, leadership, knowledge, ability of the staff Based on the analysis of the business environment, practical conditions, PVFC Thang Long selects strategic plan using weight method The point scale ranging from to 10 for different criteria is based on theoretical and practical foundations Table 3-13: Strategy selection matrix Criteria Trade mark Technology Corporate Weight Strategy Scor Produ e ct Strategy Pro Score duct Strategy Produ Score ct Strategy Prod Score uct 0,15 0,2 1,35 1,6 10 1,5 1,6 1,05 1,6 0,9 1,4 0,15 1,2 1,2 1,05 1,2 0,15 0,15 9 1,35 1,35 9 1,35 1,35 10 1,35 1,5 9 1,35 1,35 knowledge 0,2 1,6 1,8 1,6 10 and ability Total culture Leadership Management Staff’s 8,45 8,8 8,15 8,65 (Figures caculated and analized by the group itself) The analysis of strategies using weight method shows that strategy – focal point strategy - is the most suitable for PVFC Thang Long This strategy is aimed at making full use of the relations with traditional customers of PVFC; PVFC Thang Long will expand market and continue to develop products that PVFC Thang Long has 66 advantages in the market Those products are related to oil and gas, energy with the support derived from PVN’s trade mark reputation and the transition to a commercial bank In addition, it is common knowledge that human factor is one of the main conditions that are decisive to the success of an enterprise operating in the market, especially in the context of international financial-economic integration Having a thorough understanding of that crucial factor, PVFC Thang Long has to constantly improve the staff’s skills, and train human resources within itself, at the same time introduce policies to attract talented individuals to develop PVFC Thang Long better – Distinction Strategy 3.4 PVFC THANG LONG’S SELECTED STRATEGIES Inwhich 09 branches of PVFC all over the country, PVFC Thang Long is also the youngest and the only branch in Hanoi area (has the same area with Head office) Each branch after being establishing will has separate operation area to avoid the overlap customer contact affecting the reputation of PVFC With operation area that coincide with Head office’s, the operation partition to PVFC Thăng Long must be specific and more detailed than any other branch of PVFC Although not having independent strategy and completely separate from operation strategy of PVFC, however due to the client partition and each operation area has their own character, demand and developing orientation Therefore, associated with the objectives and operation orientation of the whole system, each branch has to build their own suitable operation strategy In addition, associated with each activity (credit, investment, financial service ) PVFC also has list of customers group that are customers target for example: oil and gas, energy, minerals, real estate, high level tourism and obviously that each area will has its own characteristic, its own developing orientation In fact, one branch of PVFC can not identify the minerals industry as a key customer group if there is no minaral development in operation area, or can not identify superial tourism as a key field if there is no tourist place in area 67 As above reasons, building saperate strategy for a branch is very necessary and useful Of course, that strategy must be associated with common development strategy of the whole system According to analysis in Chapter 2, business strategies selected by PVFC Thang Long are in the following: Strategy 1: Bringing into full play current relations with traditional customers of PVFC and PVFC Thang Long; expanding PVFC Thang Long’s market; developing products in areas where PVFC Thang Long has advantages, such as oil and gas, energy thanks to the reputation of PetroVietnam’s brand name, especially the transformation of PVFC Thang Long into a commercial bank – Focal point strategy Strategy 2: Building a roadmap to train and improve professional knowledge for the staff, implementing incentive policy to attract more talented individuals – Distinction strategy It is obviously that, the partition operation area, the focus on the key strengths to develop are the basis for selecting the focal point strategy When converting to comercial bank model, it is clearly that PVFC and PVFC Thang Long must have a breakthrough in providing products and services that show the private brand of Petro Vietnam to stand stable in competition with many “aging” banks in the market Focal point strategy focus on products orientation, market orientation to develop strength, gain market share, maintain the relation with traditional clients and expand the relation with new prestige and power clients Beside that, the distinction strategy focus on developing services through the training of specialized and high quality staff These two strategies are different of implementation way, however associating with common developing strategy of PVFC Thang Long locating in development strategy of PVFC The focal point strategy to promote the strength of Petro Vietnam brand to increase the products suppling and the distinction strategy is the complementary strategy that brings the satisfaction to customers when using products of PVFC 68 3.5 IMPLEMENTATION MEASURES 3.5.1 Implementation measures for strategy – Focal point strategy We are aware that, focal point strategy focuses directly on serving particular customer groups The strategy will concentrate on particular markets, different groups of products Geography: Being a branch of PetroVietnam Finance Corporation – PVFC, and operating in Hanoi (close to PVFC’s headquarters), PVFC Thang Long was granted a clear area for operation in order to avoid overlapping operation area of PVFC As mentioned above, PVFC Thang Long is in charge of customers who are PVFC’s subsidiary companies (PVFC Invest – PVFC Invest and Consultancy Company; PVFC Land – Real estate, Finance, Oil and gas joint stock Corporation; PVFC Capital – PetroVietnam Fund Management Joint Stock Company; and PVFI PetroVietnam Joint Stock Finance Corporation), companies to which PVFC is shareholders, and subsidiary companies of PVN ( in some particular cases, PVFC Thang Long can submit to PVFC for approval to access and manage customers) In addition, PVFC Thang Long has customers from Northwestern area such as Yen Bai, Lao Cai, Lai Chau, Ha Giang, Tuyen Quang provinces, etc In Hanoi, customers who come from other sectors are target customers of PVFC Thang Long in such districts as: Cau Giay, Tu Liem, Dong Da, and Hoang Mai To successfully implement focal point strategy, and to focus on different geographical areas, some following measures must be taken: - PVFC Thang Long needs to provide customer manuals for different groups (within or outside the sector), areas of operation, and fields of operation to get better access and scrutiny on the performance as well as potential to expand market This helps PVFC Thang Long to maintain good relations with current customers, and have chance to expand its relations to many other target groups -PVFC Thang Long will build and develop service packages for traditional customers, and during the process of expansion, it will reach out to prospective customers from other sectors with package services in every field of business such as credit (including corporate credit and individual credit), investment, financial services, etc 69 - PVFC Thang Long will formulate programs and action plans, to attract customers to use its services and products Division of product lines: PVFC Thang Long’s roadmap is to transform to a commercial joint stock bank, 2010-2011 period will be a preparatory period and improve its organization, as well as its orientation for developing products and business With its focus on the sectors of oil, gas and energy to build up and develop its strengths within PVFC, PVFC Thang Long has to quickly introduce new services and products to gain more market share In addition, there must be clear plan to focus on different groups of customers belonging to the sector of oil and energy It is clear that, if PVFC Thang Long goes in this direction it can take advantage of the reputation of PVN’s trademark 3.5.2 Implementation measures for strategy 2- Distinction strategy Currently, in the context of globalization, financial institutions enjoy many favorable conditions; especially many foreign companies have a great chance to penetrate Vietnamese market Vietnam’s WTO commitments will ensure fair and equal competition for all participants in its “home ground” The difference in services plays a crucial role decisive to the company’s success Different from production sector which produces tangible products, business in services sector, especially in financial sector, provides similar services (difference, if any, will lie in the focus) Therefore, human factor – those who directly deal with customers to increase their satisfaction - is the main factor that makes the difference For PVFC Thang Long, it is a financial company currently on the way to change to operating as a commercial bank However, PVFC Thang Long is young when many well-known and large banks are taken into consideration That is not to mention the many foreign banks, at present, operating in Vietnam Besides concentrating on its main area of operation which is oil and energy in order to build its brand and strength, PVFC Thang Long also considers competition in service quality to be a major factor because human resource is a suitable way to increase its competitiveness in the current situation To succeed, PVFC Thang Long needs to carry out the following measures: 70 - Improving the human resource quality, moving forward to standards of international practices; combining traditional with modern practices to build up faith and prestige to partners, creating competitive power in the market place - Training a contingent of highly skilled specialists in particular fields of operation so that they can run and use new products and services - Innovating recruitment activities; gradually replacing weak, inefficient positions - Building PVFC culture, creating brand reputation to customers and making it the pride of PVFC Thang Long - Reforming, improving management, administration capabilities of the company as well as its personnel so that they can meet the requirements stemming from the current context of international economic integration; focusing on training management officers, staff to improve their capabilities and professionalism in the company in order to enable them to better understand customers’ need and psychology, and to attract more customers - Investing a due amount of finance in the strategy to train the company’s contingent of management officers, and staff who directly carry out the company’s business (Those who work on new products and services of the company) - Reforming administrative activities toward clear and transparent divisions of duties and responsibilities for each level, each department of the company; increasing autonomy for each administrative level This will contribute significantly to the company’s success in negotiating with its clients 3.5.3 Measures for making breakthroughs In addition to implementing synchronously the above mentioned measures, PVFC Thang Long will cooperate with PVFC to concentrate on formulating plans to implement measures for making breakthroughs at the very beginning of 2010, those measures are related to: human resources, procedure, and administration system and IT Human resources: - Recruitment: Cooperating closely with the Headquarters and other training institutions, prestigious recruitment agencies to search for high-quality human resource in order to satisfy PVFC’s and PVFC Thang Long’s requirements in the process of development 71 - Training: Speeding up on-the-spot training for management officers, specialists in key areas At the same time, sending staff overseas for further training Completing incentive policies and employment policies based on training results Procedure, administration system: - Reforming procedures; optimizing the use of IT; providing statistics to assist decision-making process; - Improving management capabilities of the company’s management officers; Actively organizing the management mechanism in a flexible manner, ensuring that every duty is taken in charge, monitored; - Raising the staff’s sense of responsibility and activeness in carry out assigned tasks Information technology: Focusing on implementing groups of measures below: - Building an advanced IT system, in conformity with international standards, which is an assisting tool for the company’s business operation, creating competitive advantage for PVFC – Competition using technology- with the focus on utility system to serve customers, for example: establishing Contact Center (customer service center), establishing online information portal (through PVFC’s website); - Focusing on building database consistent with business-support software, managing, ensuring a smooth operation for the business of PVFC and PVN Raising administration qualities, reducing business risks and supporting quick, accurate decision making process; - Training professional, skilled staff so that they can meet requirements in the administration and running business of the company 3.6 SUGGESTIONS ON SUPPORTING MEASURES 3.6.1 Suggestions to PVFC 72 The management unit plays a crucial role in orienting strategies for its subordinate bodies; therefore, PVFC Thang Long’s policies must be in line with those of PVFC Concerning the selected business strategies for 2010-2015 period, PVFC Thang Long wishes to make some suggestions to PVFC: - The number of customers who are taken in charge by PVFC Thang Long should not be reduced or approached by the parent company to avoid overlapping This has significant meanings to PVFC Thang Long in maintaining and expanding markets based on its fundamental bases The shrinking of operation area will cost PVFC Thang Long a great deal of energy, time, and finance to establish new markets or to restore its previous markets In addition, the overlapping access to markets already managed by PVFC Thang Long will be harmful to its creditability towards its customers - PVFC Thang Long hopes to receive support, guidance from the parent company in its transitional period to a new operation model Currently, the whole PVFC system is in its transitional period to new operation models As planned, up to 2012, the whole PVFC system will operate as a commercial bank As a result, PVFC Thang Long needs to have thorough preparation for its business strategy in 2010-2015 period The selection and implementation of strategies will revolve around its strength, which is gas and oil, energy, as well as around the common strength of the parent company Although, the company’s function is payment and mobilization of capital, the first step in its transitional period will have to face certain difficulties Therefore, to successfully carry out its selected business strategies, PVFC Thang Long needs the backing and support from the parent company with regard to human resource, finance, customer database as well as training programs so that it will be able to operate in its new operation model and to compete under new pressure - Simplifying approval process, the management of cash inflow and capital Operating in an inter-bank environment, PVFC needs to further simplify its procedures in approving and granting credit for investment projects The duration for solving a dossier should be done more rapidly to avoid slowness for customers 73 The management of cash flow, capital needs to be adjusted in conformity with the division of branches A branch’s autonomy should be increased 3.6.2 Suggestion to the State Bank of Vietnam First: The implementation of international commitments on opening financial and services markets makes the competition among financial institutions become fiercer The State Bank of Vietnam should create a transparent framework and competitive environment for banks At the same time, close and serious measures must be taken to monitor and crack down on illegal competition methods Second: The State Bank of Vietnam should build up a healthy competitive environment by speeding up the reform process, the rearrangement of state-owned enterprises, equitized enterprises Third: The State needs to speed up the administrative procedure reform for SMEs, and increase its monitoring role Fourth: Economic reform must be accompanied by banking reforms, especially the association between banking reforms and reforms in enterprises 3.7 SHORTCOMINGS OF THE CAPSTONE PROJECT REPORT AND ORIENTATION FOR FURTHER RESEARCH Shortcomings: - Due to time constraints, the Capstone project report has not reflect all aspects of the research topic The subjects of the research are branches under PVFC, the operation of PVFC Thang Long cannot be detached from the operation, and targets of the whole system Therefore, the measures which are set for PVFC Thang Long should be considered in the context of the whole PVFC system -The thesis is written by some individuals; therefore the analysis does not reflect the synthetically reasoning -The financial and monetary markets involve many complicated developments and are difficult to forecast The analysis is temporary and, therefore cannot serve as long-term use purpose Orientation for further research: Thanks to careful survey and reference of many authoritative sources of information, the measures in this capstone project report can be used for observation 74 and assessment to determine their suitability and impacts on the development of PVFC Thang Long Subsequently, there should be correction and improvement to the capstone project report to make it more practical to the current situation of Vietnamese economy in 2010-2015 period, and orientation to 2020 3.8 CONCLUSION When a strategy is introduced, there must be practical measures to implement it effectively Regardless of what business strategies are selected, when they are implemented, business operation of any company has to focus on human factor Staff and customers play an important role in deciding the success or failure of an enterprise in their market 75 GENERAL CONCLUSION OF THE CAPSTONE PROJECT REPORT What is a strategy? A strategy is the measure and scope of action of an organization in a long-term basis to achieve its target of building competitive advantage by evaluating its resources which can be utilized in a given business environment to satisfy the requirements for markets and the benefits of all stakeholders More specifically, a strategy is aimed at: • Achieving the targets set by an enterprise in the long-term and sustainable basis (Business and social responsibility) • Markets and the division of markets where a company will conduct its business; business strategies that a company will apply • How to help a company to gain advantage to its competitors in a market with a specific target customer group • What resources to utilize (human resources, skills, assets, finance, technology secrets, etc.) to achieve targets • Potential risks both inside and outside, which can affect the implementation of a strategy: Environment, competition, politics, resource, etc • Values that a company will bring to its owner and the society, to which the company is a member Strategic management is a process of flexibly arranging strategies, business performance, business results, human resources, leadership, technologies, and measures The effective combination of the above-mentioned factors will help to perfect the orientation for development This is a continual activity to set and maintain strategic approaches for business operation of a company, the daily decision-making process to solve newly-emerging issues, and challenges Throughout the research, synthesis of statistics, analysis of different factors and current business operation of PVFC Thang Long, the thesis has introduced a number of business strategies for PVFC Thang Long in 2010-1015 period and orientation to 2020, as well as measures to implement those business strategies 76 REFERENCES I- Vietnamese Ass Prof Dr Nguyen Thua Loc, Dr Tran Van Bao (2005), Textbook on business strategies of commercial enterprise, National Economics University Publishing House, Hanoi Ass Prof Dr Le The Gioi, Dr Nguyen Thanh Liem (2009), Strategic Management, Statistical Publishing House, Hanoi Nguyen Canh Chat (2006), Building and implementing- Business strategies the way to success, Research and Training Institute for Management, Publishing House of Social Labor, Hanoi Le The Gioi, Nguyen Thanh Liem, Tran Huu Hai (2007), Strategic Management, Statistical Publishing House Michael E Porter (2009), translated by Nguyen Ngoc Toan, Competitive Edge, Youth Publishing House, Ho Chi Minh City PVFC Thang Long’s Financial Reports of 2006, 2007, 2008 and 2009 Sources from the Internet II – English Michael E Porter (1980), Competitive Strategy, New York: Free press, USA Michael Porter (1996), Harvard Business Review, November - December 1996 Copyright © 1996 by the President and Fellows of Harvard College, What Is Strategy Campbell, D & Craig, T (2005), Organizations and the Business Environment (2nd ed.), Oxford 77 APPENDIXES SURVEY SHEET I Information of person surveyed Full name:…………………………………………………………………… Unit: …………………………………………………………… Position: …………………………………………………………………… II Survey content: Comparing the correlation between PVFC Thang Long and other banks III Survey table Criteria for assessment PVFC Financial Company Handico Other Banks Financial Financial Financial Company Company Company Vinaconex Song Da EVN Viettel Management and administration Relations with customers Service quality Trade mark and reputation Human resources Financial capability IT Research & Development Organizational culture (The subjects surveyed mark on corresponding column to scale from to 10) ………… date month year ……… PERSON SURVEYED (Sign, full name) 78 ... strategies and applied to formulate business strategies for PVFC Thang Long The subject analyzes the operation situation of PVFC and PVFC Thang Long and selects the appropriate business strategies for... the Chi n lược toàn cầu structure to the selected Implementing and strategy - Set out the conditions to concretize the targets, building strategies and strategies adjusting strategies thực thi chi n. .. SELECTING BUSINESS STRATEGIES OF PVFC THANG LONG 27 2.1 AN OVERVIEW OF PVFC .27 2.1.1 Formation and development process 27 2.1.2 Types of products .27 2.1.3