Tài liệu Building business strategy at bank for investment and development of vietnam – tu liem branch in the phase of 2017 2021

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐỖ ĐẠI DƯƠNG BUILDING BUSINESS STRATEGY AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – TU LIEM BRANCH IN THE PHASE OF 2017-2021 XÂY DỰNG CHIẾN LƯỢC KINH DOANH TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH TỪ LIÊM TRONG GIAI ĐOẠN 2017 – 2021 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐỖ ĐẠI DƯƠNG BUILDING BUSINESS STRATEGY AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – TU LIEM BRANCH IN THE PHASE OF 2017-2021 XÂY DỰNG CHIẾN LƯỢC KINH DOANH TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH TỪ LIÊM TRONG GIAI ĐOẠN 2017 – 2021 Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. NGUYỄN NGỌC THẮNG Hà Nội - 2018 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration. Hanoi, date of …… / …… /…….. Do Dai Duong ACKNOWLEDGEMENT I hereby certify that I am the sole author of this thesis and no part of this thesis has been published or submitted for publication. I certify that, my thesis does not violate anyone’s copyright. Additionally, all ideas, quotations, or material from the work of other people included in my thesis, published or otherwise, are fully acknowledged with the standard of references. I declare that this is a true copy of my thesis. The content of this thesis has been approved by the committee of Vietnam National University, Hanoi – Hanoi School of Business (HSB). This thesis has not been submitted for a higher degree to any other University or Institution. In order to finish this project successfully, I have received many helps, supports and guidance from many people who I would like to thank sincerely. First of all, I would like to thank all the professors of MBA program, especially PSD, Dr. Nguyen Ngoc Thang – my suporvisor. Then I would like to thank deeply the respondents and interviewees who allowed me to gather enough data for this research. Finally, I would like to express my thanks to my family, my colleges and my fellow friends who created convenient conditions and give me encouragement and understanding for me to complete this degree. I sincerely thank you! Hanoi, date of …… / …… /…….. Do Dai Duong TABLE OF CONTENTS LIST OF ACRONYMS............................................................................................... i LIST OF FIGURE, TABLES ..................................................................................... ii HEADING ...................................................................................................................1 CHAPTER 1: RATIONALES ON BUSINESS STRATEGY OF THE ENTERPRISES ...........................................................................................................4 1.1 The concepts of business strategy of the enterprises ............................................4 1.2 Characteristics of Business Strategy .....................................................................5 1.3 Requirements of business strategy for enterprises ................................................6 1.4 Purpose, objective necessity of building business strategy ..................................6 1.5 Process of business strategy development ............................................................7 1.5.1 Targeting ........................................................................................................7 1.5.2 Analyzing the basics of business strategy development: ...............................8 1.6 Tool to provide information for strategy development: ......................................15 1.6.1 Internal Factor Matrix (IFE): .......................................................................15 1.6.2 External Factor Matrix (EFE): .....................................................................15 1.6.3 Competitive Image Matrix: ..........................................................................16 1.7 Strategy development and selection: ...................................................................16 1.7.1 Matrix strengths - weaknesses, opportunities - risk (SWOT): .....................16 1.7.2 Strategic planning matrices can be selected .................................................17 CONCLUSION CHAPTER 1 ...................................................................................20 CHAPTER 2: CASE ANALYSIS OF JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIET NAM – TU LIEM BRANCH ..................................................................................................................21 2.1. Overview of the Joint Stock Commercial Bank for Investment and Development of Viet Nam ........................................................................................21 2.2. About Joint Stock Commercial Bank for Investment and Development of Viet Nam - Tu Liem Branch: ............................................................................................21 2.2.1 Formation and development process: ..........................................................21 2.2.2 Business activities of Tu Liem Branch: .......................................................22 2.2.3 Products and services: ..................................................................................24 2.2.4 Analysis of business activities of BIDV Tu Liem in 2016: .........................24 2.3. Analysis of external factors affecting the operation of BIDV Tu Liem: ...........27 2.3.1. Macroeconomic Analysis: ...........................................................................27 2.3.2 Micro-environment analysis (sectoral environment): ..................................33 2.3.3 Assessment of opportunities and challenges:...............................................44 2.3.4 Matrix of external factors .............................................................................45 2.4 Internal factor analysis of BIDV Tu Liem: .........................................................47 2.4.1 Human resources factor................................................................................47 2.4.2 Accounting and financial factors: ................................................................48 2.4.3 Research, Development and Marketing: ......................................................49 2.4.4 Information technology: ...............................................................................49 2.4.5 Assessment of strengths and weaknesses: ...................................................49 2.4.6 Matrix of internal factors: ............................................................................50 CONCLUSION CHAPTER 2 ...................................................................................52 CHAPTER 3: BUILDING THE BUSINESS STRATEGY OF JOINT STOCK BANK FOR INVESTMENT AND DEVELOPMENTOF VIETNAM – TU LIEM BRANCH IN THE PHASE OF 2017-2021 ..............................................................53 3.1 Business objective of BIDV Tu Liem period 2017 - 2021: ................................53 3.1.1. Strategic direction of BIDV in 2016-2020 ..................................................53 3.1.2 The objectives of BIDV Tu Liem in the coming time: ................................55 3.2 Strategic Analysis and Selection: ........................................................................56 3.2.1 Use the SWOT matrix to select business strategies: ....................................56 3.2.2 Analyze strengths, weaknesses, opportunities and challenges of BIDV Tu Liem through the SWOT model ............................................................................57 3.2.3 Business Strategy Selection - QSPM matrix: ..............................................59 3.3 Specific strategies: ..............................................................................................60 3.3.1. Firstly, the strategy of developing products and services: ..........................61 * Overall objective: ...............................................................................................61 3.3.2 Second, capital development strategy: .........................................................62 3.3.3 Third, credit growth strategy: .......................................................................63 3.3.4 Fourth, training strategy and human resource development: .......................64 3.4 Some solutions to implement the business strategy of BIDV Tu Liem in period 2017 - 2021: ..............................................................................................................64 3.4.1 Capital operation ..........................................................................................64 3.4.2 Credit activities: ...........................................................................................65 3.4.3 Service activities: .........................................................................................66 3.4.4 Technology development: ............................................................................67 CONCLUSION CHAPTER 3 ...................................................................................68 CONCLUSIONS AND RECOMMENDATIONS ...................................................69 2.2. For the State Bank of Vietnam ...........................................................................72 REFERENCES ..........................................................................................................75 LIST OF ACRONYMS NHNN State Bank of Commerce NHTM Commercial banks NHTMCP Joint Stock Commercial bank NHTMQD Joint stock commercial banks of state-owned BIDV Bank for Investment and Development of Vietnam BHXH Social insurance BIDV Tu Liem Joint Stock Commercial Bank for Investment and Development Vietcombank of Vietnam - Tu Liem Branch Vietinbank Vietnam Joint Stock Commercial Bank for Industry and Trade Agribank Bank for Agriculture and Rural Development SACOMBANK Saigon Thuong Tin Commercial Joint Stock Bank ATM Automatic payment machine BSMS Information via mobile phone EFE Matrix evaluates external factors IFE Matrix evaluates internal factors SWOT Matrix Strengths-Weaknesses, Opportunities-Risk SPACE Matrix Strategic Positions and Assessment Activities BCG Matrix Teams Consulted Boston IE Matrix of internal-external factors i LIST OF FIGURE Figure 1.1. PEST model ..............................................................................................8 Figure 1.2. The force model of M.Porter ..................................................................10 Figure 1.3. Model of choice of factors affecting business performance ...................13 Figure 1.4. Schematic diagram of SWOT .................................................................17 Figure 1.5. BCG matrix .............................................................................................18 Figure 2.1. Organizational model of BIDV Tu Liem ...............................................22 ii LIST OFTABLES Table 2.1. Update of business results of BIDV Tu Liem 30/06/2017 ......................22 Table 2.2. Evaluation of business results of BIDV Tu Liem 31/12/2016.................24 Table 2.3: Population pyramid chart of Vietnam in 2016.........................................31 Table 2.4. Credit outstanding, capital mobilized by banks 2016 ..............................35 Table 2.5. Comparison of NPL ratios, risk management of banks ...........................36 Table 2.6. Profit before tax and net service income of banks ...................................36 Table 2.7. Correlation of scale, performance and net interest income of banks .......37 Table 2.8. Financial indicators for banks in 2016 .....................................................37 Table 2.9. Network development of banks in the period 2011-2015........................37 Table 2.10. Relationship between GDP Growth and Credit .....................................38 Table 2.11. EFE matrix .............................................................................................46 Table 2.12. Human Resources of BIDV Tu Liem ....................................................47 Table 2.13. Matrix of elements within the IFE .........................................................50 Table 3.1. BIDV's objectives for 2016-2020 ............................................................54 Table 3.2. Targets of BIDV Tu Liem in 2017-2021 .................................................56 Table 3.3: SWOT matrix ...........................................................................................57 Table 3.4: QSPM matrix ...........................................................................................59 iii HEADING 1. Reason for selecting the topic The Fourth Industrial Revolution has been coming. This is unprecedented revolution in human history, it will evolve very fast, is a combination of technology in the fields of physics, digitization and biology, creating entirely new possibilities and has a profound impact on the political, social and economic systems of the world. More than ever, the only thing that businesses can know for sure is change. Therefore, building and managing a strategy as a way to help businesses overcome the turbulent in the market, reaching a future, by their own efforts and capabilities. In Vietnam, businesses have been facing many difficulties arising from the strong competition when opening the market. A business that wants to succeed needs to be able to cope with every situation, be independent, make decisions and take responsibility for all activities. Therefore, businesses need to grasp the trend is changing, to exploit the strengths, limit the weaknesses, take advantage of opportunity to overcome the challenge, thereby creating creative steps for themselves. , in other words, build a proper business strategy. Joint stock commercial Bank for Investment and Development of Viet Nam (BIDV) is one of the four largest commercial banks in Vietnam, which is undergoing a shift towards globalization and international economic integration. With 60 years of development and development, BIDV has achieved many successes in business activities. BIDV's reputation in the international market has been affirmed as the leading financial institution in the financial institutions in Vietnam. Based on these perceptions and practices, who has worked for many years at BIDV, is currently working at the Joint stock commercial Bank for Investment and Development of Viet Nam – Tu Liem Branch- a member of BIDV. Along with the knowledge gained from the MBA course of the Faculty of Business Administration - Hanoi National University, I chose the topic "Building business strategy of the Joint stock commercial Bank for Investment and Development of Viet Nam - Tu Liem Branch in the phase of 2017 - 2021 "as his dissertation topic. 1 2. Research objects and scope of research The subject of the dissertation is business strategy of Joint stock commercial Bank for Investment and Development of Viet Nam - Tu Liem Branch. The scope of the research is the business activity of BIDV Tu Liem, compared with the overall business of BIDV and other competitors in the industry, mainly commercial banks. Vietcombank, VietinBank, Bank for Agriculture and Rural Development (Agribank) and other commercial joint stock banks in the area. 3. Objectives and objectives of the study: 3.1. Purpose of the thesis: Developing a business strategy for BIDV Tu Liem between 2017 and 2021 and proposing solutions to implement this strategy to make BIDV Tu Liem one of the strongest branches in the BIDV system and in the local area of Hanoi City. 3.2. Objectives of the study: - Summarize basic theoretical issues related to business strategy planning, strategy development, strategic development tools. - Analyze the external factors, internal factors to find strengths, weaknesses, opportunities - risk of BIDV Tu Liem in relation to the BIDV system in general. - Define business objectives based on strengths, weaknesses, opportunities and threats, develop business strategies and propose solutions to implement those strategies on the basis of BIDV overall assessment in general and BIDV Tu Liem in particular. 4. Research Methodology: The lecture was completed on the basis of using the following research methods: Methodology of theoretical study, combined with practical research at Tu Liem BIDV; Secondary and primary data collection methods; Professional solution; Methods of analysis, collation and synthesis. Combining the use of course methods: Strategic Management, Human Resource Management, Marketing ... Sources of information: The thesis uses secondary information from books, magazines, wesite (asset.com, bidv.com.vn, vietinbank.com.vn ...), published reports of Vietcombank, Vietinbank, Agribank ... at the State Bank. 2 5. The structure of the thesis: The thesis consists of 3 chapters and introductory sections: Chapter 1: Theories of business strategy of enterprises. Chapter 2: Current Situation of Business Operations of Joint stock commercial Bank for Investment and Development of Viet Nam - Tu Liem Branch. Chapter 3: Business Strategy for Vietnam Development Investment Bank Tu Liem Branch 2017 - 2021. The main content of each chapter is presented below. 3 CHAPTER 1 RATIONALES ON BUSINESS STRATEGY OF THE ENTERPRISES 1.1 The concepts of business strategy of the enterprises The first strategic term used in the military field. Gradually, the strategy is used in other areas of socio-economic life. The term "strategy" is a combination of the word war, that is fighting, fighting and combing, that is, intrigue. Thus, in the original, the strategy is to fight and more importantly to win. Today, the term has been used in almost all fields: economics, politics and culture. In the field of economics, at the macro level we may have concepts such as "sectoral development strategy", "export-oriented industrialization strategy", microlevel, Combined with corporate management, the term "marketing strategy", "production strategy", "business strategy" is formed. Due to the different approaches to strategy that The concept of strategy is different, so far there is not a common, consistent concept of this category. In the field of economics, the scope of the strategy applied to enterprises may take into account some of the following concepts: "Strategy is the deciding factor of the organization's long-term goals" (Prof. Alfred D. Chandler, 1962); "Strategy is a red thread throughout the organization's operations" (Prof. H. Igor Ansoff, 1965); "Strategy is the art of creating competitive advantages" (M. Porter, 1980). "The strategy is to outline the long-term, stable enough orbits around the trajectory that can make the right decisions and the actions of the business" (Alain Charles Martinet, 1983). "A strategy is defined as a plan or business plan that guides or directs the organization to the desired goal. This general operating plan provides the basis for policies (orientation for decision approval) and operational procedures. "(Garry D. Smith, Danny R. Arnold, Bopby G. Bizrell. "Business Strategy and Strategy"). In general, these concepts of strategic terminology are inclusive and reflect: 4 + The objectives of the strategy; + Time of implementation; + Strategic decision making; + Competitive environment factor; + Advantages and disadvantages in general and in each activity in particular. So, we see the strategy of the business is a "product" that combines what the environment has? What business can? And what businesses want? Together: In business, a strategy is to be understood as a design art, a means of achieving long-term goals and a relationship with a changing and competitive environment. . A good business strategy is a strategy in which a company can gain a competitive advantage over competitors at an acceptable cost. To better understand the business strategy category, we need to consider its characteristics so that we can distinguish it from related concepts and categories. 1.2 Characteristics of Business Strategy Business strategy often defines the basic objectives and business directions of each enterprise in each period and is fully understood in all aspects of production and business activities to ensure Business development is continuous and sustainable (more than 1 year). Business strategy ensures maximum mobilization and combines the exploitation and use of resources of enterprises in the present and future, bringing into play the advantages and grasp opportunities to win the market. business. Business strategies must be reflected throughout a continuous process from formulation, implementation, inspection, evaluation and strategic revision. Business strategy is usually built for a relatively long period (3 years to 5 years), tendency to shorten down depending on the characteristics of each sector. From the above characteristics, it is easy to distinguish the strategic category from related concepts and categories. The concept closest to the strategy is "plan", in fact many people mistakenly confuse the two concepts together. The striking feature of the strategy is the direction and identification of major solutions and policies to the main objectives, while the alignment plans are mainstream, all goals 5 are quantified. This is a system of indicators reflecting the comprehensive production and business activities of enterprises. 1.3 Requirements of business strategy for enterprises One key feature of this feature is that it clearly defines the business scope of the business. This is an important step in business analytics, strategic direction, resource allocation, and portfolio management. Two basic questions to ask are: What business are we doing? And what business should we do? This is a relatively complex issue as the market segmentation process has a huge impact on the organizational structure of the business. Business strategy creates a mutually supportive relationship with the opportunities and challenges outside the enterprise, the strengths and weaknesses of the business, and thus create the competitive edge of the business. This feature highlights a key issue of the strategy that is to create a sustainable long-term competitive advantage over the main business competitors in the business sector in which the business engages. This is a modern approach that is used to study the competitive position of the business. 1.4 Purpose, objective necessity of building business strategy Building a business strategy is one of the most important activities of senior managers. A non-strategic organization is like a rudderless ship. Without a proper strategy implemented effectively, failures are almost certain. Building a business strategy that brings practical benefits to the business is: Help your business see its future in the future so that executives will consider and decide when and how to reach the target. Helps administrators stay motivated by environmental changes: Helps administrators clearly see opportunities and threats in the current business environment to analyze, evaluate and forecast conditions. business environment in the future. This helps the company take advantage of opportunities, repel the risk to win the competition, win. Helping businesses maximize and exploit their resources. thus promoting the maximum strength of the business to grow up; Allocate resources from one place to another in a rational manner. 6 Helping businesses increase the alignment of employees and administrators in the implementation of corporate goals, thereby creating the internal strength of the business. Help businesses increase sales, increase employee productivity and increase governance, avoid risks, increase prevention and prevent problems for businesses. 1.5 Process of business strategy development 1.5.1 Targeting Strategic goals are the desired goals of the business. It is to specify the purpose of the business in terms of direction, scale, structure and implementation process over time. In the market economy, businesses generally pursue three main purposes: existence, development and diversification. The strategic target system also expresses the desire to achieve certain results during the strategic period. There are usually two types of objectives: short-term and long-term. Long-term goal: is the final desirable result that the business wants to achieve over a period of more than a year, with the specific content: profitability, productivity, competitive position, employment, community relations, technology position, social responsibility. Short-term goals: These are the specific results an enterprise expects to achieve in a cycle, quantified. When defining the target system, the following requirements must be met: Specificity: Objectives must be clearly defined in each period, must have common goals and objectives. Linking: Goals must ensure cohesion, mutual reciprocity, or otherwise, in achieving this goal, without interfering with the achievement of other objectives. Priority: Define the priority of each objective and the hierarchy of each goal. Flexibility: The objectives set out need to be flexible enough to be adapted to the changing business environment. Feasibility: The goal must balance the difficulty and the reality. Quantitative: Targets must be defined in a measurable or quantifiable form. 7 Rationality: The goal must be accepted and fully understood by the implementers. 1.5.2 Analyzing the basics of business strategy development: 1.5.2.1. Macroeconomic Analysis: For macro-economic analysis, the PEST theory includes assessments of political (P), economic (E), social (S), and (T) and threatening to businesses operating in that business environment. Factors of political law are the foundation for shaping other elements of the business environment, which means the political platform, and the legal environment that has that business environment. These factors include the political system, the legal system. Lenin said: "There is no political issue, no pursuit of economic gain and no economic problem for political ends." Therefore, if the political system is stable, the political path is clearly open, creating opportunities for businesses and vice versa. Apart from analyzing the legal elements of the host country, enterprises must also study the legal environment of the countries where the investment-oriented enterprises come. Figure 1.1. PEST model (Economics) (Political) - Political stability - Labor Law - Policy of tax - Legal System - Regulatory environment (Social) - Change of GDP -Population, demographic - The rate of economic growth - Distribution of national income - Interest rates, inflation - Lifestyle - Unemployment - Economic cycle (Technological) - Discover new technology - Speed of technology transfer - Government spending on R & D - Market of technology products 8 etnamese people, culture - Customs and habits + The economic factors play the most important role in these factors affecting the business activities of enterprises. It includes factors such as economic growth rate, exchange rate, inflation rate, interest rate policy, economic policy ... If the rate of growth of the economy is high, the exchange rate increases , stable inflation rate, appropriate interest rate policy, economic policy to create a level playing field for businesses, it is an opportunity for businesses. In contrast, these factors will create challenges for businesses operating in that economy. + Cultural and socio-cultural factors have a slow impact on the business environment but have a strong impact by influencing market demand such as changing customs and habits. + In the real estate business, population and demographic characteristics play an especially important role in creating markets for the industry. The size of population, population density, consumption habits, habits of people and demographic characteristics by age, ethnicity, distribution have a great impact on the sector. + Technological factors play an increasingly important role in determining the business environment of enterprises in two directions. Technology technology directly affects and determines the two basic factors that make the products competitive in the market, quality and price. New technology also affects the state of the art facilities for businesses through the transfer of technology and the process of collecting, processing storage and transmission of economic information. Assembly. 1.5.2.1. Sectoral Environmental Analysis: An industry is a group of companies that provide products or services that can be closely intertwined. In competition, companies in the industry are influential. Generally, each sector consists of a mixture and variety of competitive strategies that companies pursue to try to achieve a higher than average income. Industry analysis and competition to shed light on key issues: - The economic characteristics of the sector. Competitive forces are active in the industry, the nature and power of each force 9 - Motivations for change in the industry and their impact - Companies with the strongest and weakest position. - Who would be the one who made the next move in the industry? - Key factors for success in competition - The attractiveness of the sector in terms of profitability above average. Managers can not form a long-term orientation, or a strategic decision, if they do not have a keen understanding of the company's strategic situation, the nature and the competitive conditions that it does. to face, how to create a fit between resources and capabilities with those conditions. Potential opponents Pressure of the supplier Competitors in the industry Pressure of the buyer Alter native servic e produ cts Figure 1.2. The force model of M.Porter The author approaches the competitive model of M. Porter, which includes 5 competitive forces that help strategists in the analysis of the sectoral environment. The task of the strategists is to analyze and judge Competitive forces in the industry to identify opportunities and threats to their businesses. ● Competitors: 10