UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Cao My Anh LOW LEVEL OF SALESPERSON COMPETENCIES AT EAST SAIGON BRANCH OF VIETINBANK, HO CHI MINH CITY, VIET NAM ID: 22 13 00 03 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr LE NHAT HANH Ho Chi Minh City – Year 2016 Table of Contents CHAPTER 1: PROBLEM IDENTICATION 1.1 Company background 1.2 Background of problem 1.2.1Symptom of business problem 1.2.2Possible problem 1.3 Problem justification 1.3.1Problem definition 1.3.2Justify the existence 1.3.3Justify the importance 1.4 Potential causes 1.5 Causes validation CHAPTER 2: ALTERNATIVE SOLUTIONS 2.1 Alternative solutions 2.1.1Organizational policy 2.1.2Reward system 2.1.3Training program Table 2.2: Comparison among possible solutions 2.2 Solution comparison CHAPTER 3: ACTION PLAN Table 2.3: Financial analysis among solutions Table 3: Detailed implementation plan Conclusion CHAPTER 4: SUPPORTING INFORMATION Table 1.1: Lending interest rate (%) in ASEAN Table 1.2: Opening questions for management staff Table 1.3: Problems were indicated in VES Table 1.5: Sales Competencies Questionnaire in East Saigon Branch of VietinBank Table 1.6: Standard scores ten Table 1.8: Sale competencies questionnaires in Agribank Table 1.9: Causes were reflected in VES Table 1.10: Manager Interview transcript 46 Table 2.1: Comparison the number of agreements among solutions .49 References 51 LIST OF TABLES Table 1.1: Lending interest rate (%) in ASEAN 35 Table 1.2: Opening questions for management staff 36 Table 1.3: Problems were indicated in VES 38 Table 1.4: Initial cause and effect map 20 Table 1.5: Sales Competencies Questionnaire in East Saigon Branch of VietinBank 39 Table 1.6: Standard scores ten 41 Table 1.7: The final causes and effects map 24 Table 1.8: Sale competencies questionnaires in Agribank 42 Table 1.9: Causes were reflected in VES 44 Table 1.10: Manager Interview transcript 46 Table 2.1: Comparison the number of agreements among solutions .49 Table 2.2: Comparison among possible solutions 27 Table 2.3: Financial analysis among solutions 31 Table 3: Detailed implementation plan 32 LIST OF ABBREVIATIONS Agribank………………………Vietnam Bank for Agriculture and Rural Development ARM………………………………………………….Associate Relationship Manager RM……………………………………………………………….Relationship Manager SCQ……………………………………………The Sales Competencies Questionnaire VES……………………………………………… VietinBank East Saigon branch VietinBank ………… Vietnam Joint Stock Commercial Bank for Industry and Trade Executive summary East Saigon Branch plays a significant role in sale performance and development activity in VietinBank Nevertheless, the low level of salesperson competences in Marketing Department is affecting to employees and operation in branch Moreover, this issue will bring the potential sequences in VES as this problem has existed for next years Especially, the company has faced to decreasing income and high turnover rate The main purpose of this thesis is to suggest the solutions to enhance the level of salesperson skills in Marketing Department in VES In order that we could find out the best solution, we have to make step by step from the analysis to the illustration They contain collecting symptoms, analysing problem, identify potential causes which is training programme, organizational climate, product knowledge, etc They are discovered from the textbook Additionally, depended on the root cause of the problem, the probable strategies to improve the level of salesperson competencies in the transactions also are found out From the possible strategies such as updating organizational procedures, adjusting reward system, and improving training program, the efficient key to a difficulty will be built and recommend to VES Nonetheless, the best answer is to be adjusting training program Because that solution is the most economical and most profitable in the future Actually, the profit is VND 1,025 million while the expense is VND 200 million (Table 2.3) The cost of two remain solutions is VND 800 million and VND 1000 million respectively Meanwhile, the profit is merely VND 200 million and VND 20 million respectively In order to handle training course, the bank should carry out implementation plan in chapter Because this action plan use willing resources such as trainers who is the experience employees in sale performance and study place where is the meeting room in the bank? It brings benefit and convenience for both employees and company Furthermore, the recommendations have to be tested for the purpose of ensuring the most suitable for the branch and all the employees The thesis use the qualitative method which is face to face the interview of managers and 53 staffs in Marketing Department Besides that, this thesis makes reference to the literature from the theory, textbook, and previous academic papers in order to verify the main problem, as alternative solutions, and as implementation plan Running head: LOW LEVEL OF SALESPERSON COMPETENCIES IN VES CHAPTER 1: PROBLEM IDENTICATION 1.1 Company background Vietnam Joint Stock Commercial Bank for Industry and Trade is abbreviated to VietinBank VietinBank is one of the two banks in Vietnam to enter into the Global 500, recognizing the world’s most value banking brands in 2015 according to Brand Finance – the world’s famous ratings agency and brand valuation consultancy firm (Annual report 2014) For 10 consecutive years, VietinBank has been in the Top 10 National Brands and the holders of Vietnam Value Award for three straight years That’s why the branches of VietinBank have the advantage of brand and prestige in the financial market This thing is represented obviously in East Saigon branch of VietinBank In 1991, East Saigon branch of VietinBank was established in Thu Duc district The branch has 155 employees and transaction offices It is focusing business customers due to its location on industrial zone In addition, the scope of operation include Fund Mobilization in the form of Term Deposits for Retail and Corporate clients, Foreign Exchange, Guarantees, International Settlements, Letter of Credit, Capital Markets, Money Markets, Bonds, Equity Investments, Correspondent Banking, Internet Banking, and other innovative financial and investment services and solutions licenced by the State Bank of Vietnam The thesis concentrates on the Marketing Department, which consist of over 50 employees and is divided into groups Each group has members to 12 members who is called Associate Relationship Manager Additionally, team head is called Relationship Manager Associate Relationship Manager and Relationship Manager are abbreviated to ARM and RM respectively Furthermore, each team is responsible for a LOW LEVEL OF SALESPERSON COMPETENCIES IN VES customer group permanently More specifically, each individual person is responsible for his own customers At the same time, they have to seek potential customers for the company 1.2 Background of problem 1.2.1 Symptom of business problem For consecutive years, the annual report between 2012 and 2014 of the firm describes that the revenue decreased from 3,594 billion Vietnam Dong to 1,724 billion Vietnam Dong Moreover, during the period of years from 2012, net income also dropped significantly from 49.4 billion Vietnam Dong to 5.1 billion Vietnam Dong In 2014, the number of customers increased insignificantly around 320 customers While planned figure was over 800 customers The table below will illustrate the details Revenue Net income The real number of customers grew The schedule number of customers (Annual report 2012, 2013, 2014) LOW LEVEL OF SALESPERSON COMPETENCIES IN VES According to interview results with 53 staffs in Marketing Department of bank, they disclosed many problems which had an effect on turnover and income in the branch Average score of listening skill and motivation merely reaches at 4.36 and 4.38 respectively (Table 1.3) They indicated that they are less developed competencies In point of fact, Mr Ha, as a manager in Marketing Department, she believed that motivation provides a stimulus to encourage employee’s performance and greater involvement in business success Essentially, much motivation can come as employees are encouraged to grow in their competencies through education, training, and experience It is an internal state that leads to the pursuit of objectives From the standpoint of manager, motivation is an activity carried on to get them to achieve results .Those problems is discussed more detailed in Section 1.2.2 Overall, the data described ineffective performance in East Saigon branch of VietinBank Especially, the number of customers reduced from 2012 to 2014 What is actual cause that it is really affect a downward trend in revenue and profit in the bank? Which methods are handled to seek root cause? 1.2.2 Possible problem In the current context for the Vietnamese economic and the present situation of banking sector, association with another elements, VES copes with a several problems They are causes lead to decline of profitability in the bank Following a financial crisis developed with remarkable speed starting in the late summer of 2008, as mortgage-related securities that had spread through the US and global financial system suddenly collapsed in value This crisis has undermined many of the largest financial institutions in the US and elsewhere, as well as severely damaging a large agree with this cause % Note: The table below illustrate various causes which is abbreviated to the letters No LOW LEVEL OF SALESPERSON COMPETENCIES IN VES H I 10 J 11 K Table 1.10: Manager Interview transcript N Questions o Which causes lead to decline revenue? LOW LEVEL OF SALESPERSON COMPETENCIES IN VES How you think sales competencies have an influence in revenue and income in the bank? Is the current training program good? LOW LEVEL OF SALESPERSON COMPETENCIES IN VES How you think the current reward system? LOW LEVEL OF SALESPERSON COMPETENCIES IN VES How you think about organizationa l policy in VES? Table 2.1: Comparison the number of agreements among solutions Solutions No Participants Ms Thao Ms Nhi Ms Tu Ms Khanh Mr Khiem Ms Bich Ms Trang Ms Anh LOW LEVEL OF SALESPERSON COMPETENCIES IN VES Mr Hung 10 Ms Kha 11 Ms Hong 12 Ms Mai 13 Ms Hang 14 Ms Hong 15 Mr Bach 16 Mr Vinh 17 Ms Kieu 18 Ms Ngan 19 Ms Ha 20 Ms Lan 21 Ms Binh 22 Ms Xuan 23 Mr Duc 24 Ms Nha 25 Mr Hoang 26 Mr Kiet 27 Mr Luan 28 Mr Vinh 29 Ms Chau 30 Ms Diem 31 Ms Truc 32 Ms Thu 33 Ms Cuc 34 Ms Trinh 35 Ms Tuyen 36 Ms Thi 37 Ms Hue 38 Ms Hong 39 Ms Hoang 40 Ms Uyen 41 Ms An 42 Ms Thao Trang 43 Mr Dong 44 Ms Viet 45 Ms Kim 46 Ms Phuong LOW LEVEL OF SALESPERSON COMPETENCIES IN VES 47 48 49 50 51 52 53 Ms Van Ms Vy Ms Mi Ms Thy Mr Tai Ms Ninh Mr Huu Total persons agree with solutions % References Abdullah, H., & Hiok, O M (2009) Modelling HRD practices in Malaysian manufacturing firms European Journal of Social Sciences, 8(4), 640-652 LOW LEVEL OF SALESPERSON COMPETENCIES IN VES Annual report (2012, 2013, 2014), East 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Sales Competencies Questionnaire VES……………………………………………… VietinBank East Saigon branch VietinBank ………… Vietnam Joint Stock Commercial Bank for Industry and Trade Executive summary East Saigon Branch