Developing a general business strategy of Vietnam international commercial joint stock bank (VIB) feriod 2009 - 2013

GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER OF BUSINESS
ADMINISTRATION PROGRAM

CAPSTONE

PROJECT

REPORT

DEVELOPING A GENERAL BUSINESS
STRATEGY OF VIETNAM
INTERNATIONAL COMMERCIAL
JOINT STOCK BANK (VIB) PERIOD
2009 -2013

Group No.:11
Students’ names:

AN - Dang Xuan
HA - Ho Hong

NGHIA - Vu Thiet
THU - Bui Xuan

HANOIL.

7 3009


ACKNOWLEDGEMENTS

Our group
group;

they

(group
were

11) assures that our research works
guided

by

our

consultants.

And

were done
we

assure

by our
that

all

information consists of contents, results, data references are valid and clear to

understand where it is from.

Hanoi, July 2009.
Authors:
AN - Dang Xuan
HA - Ho Hong
THU - Bui Xuan
NGHIA - Vu Thiet


TABLE OF CONTENT
FOREWORD
1. Reason for CHOOSING (ODÍC................... co
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CHAPTER

I: GENERAL

THEORIES OF BUSINESS STRATEGY

1.1— Notions and role of business strateøy in corporatÏOnS:.......................... 7
1.1.1. Some notions about business sfra{(ۯV:...............-co
n1 111 S55 7
L1.2. Role of Business. Strategy wssses cans samennes cams sreoabiuitiesa Si 21056 8IS60 106005 V45 SAINGG BUNHUEI 8
1.1.3. Business strategy modelS:.......................--c cọ
HH H1 n1 ng 9
1.1.3.1 - Linear strafèy mod€Ì:........................--<< con 1n S1 S191 9v 9
1.1.3.2 - Adaptation strategy model.............s0ccsecccssrscsecsccasscscescceccnseccons 10
1.1.3.3 - Interpretive strategy MOE vz sves viens news coesews cesenss snes vans swan seas sans os II
1.2- The process of developing general business strafâỉV:......................
ô.ô-ô 12
1.2.1. Choosing the corporation”s mission and maïn targefS:..................
.... 12
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1.21.3 -A corporation’s business Ø0:..................................
<< có
9
v0 9s 13
1.22. External environmenI(: .............................co cu 1n 1n n1 VY 13
1.23. A corporation’s internal environmen(:..................................«««<««< 13
1.24. Choosing business Sfra{CØV:...............
. con HH HH HH mm VY 14
1.24.1- BC

method:.............................- SH

SH SH

vs

1.24.2 Method of SWOTT analysis model:............................--. «c2
1.24.3- Mc KINSEY - GENERAL

ELECTRIC

14
<+ 15

matrix method:.................. 16

1,25. Performing, (he Strate@ys css sass ows sanvc amas snes amas une ams wan saa ses ances mats Sarees 17

CHAPTER

II: VIB°S ACTUAL

STATE

2.1- The actual state ðof VH..................
con HH HH KH Hinh HH
2.11. A general view Of VIB...

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0.0.0.0... cece cece ence nec eeeneeeeeneeeeeeeeeeeseeeseeeeseess 18

2.12. VIB’s commercial activity results of 3 vears 2006, 2007, 2008:............ 20


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2,1.3.2- Organizational sfFuCfUF€, IGEWOFKE..............

2.1.3.3- Human

F€SOUIFCC:....................

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Họ Họ họ

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2.1.3.4- Brand name and techn0ÏOØ: .......................
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2.2 - Macro environment affecting VIB”s commercial activities:...................... 28
2.2.1.

Global financial crisis and world economic downfurn: ............................ 28

2.2.2 .Vietnam”S €COTOIV:......................
- co nọ HH HH HH HH Hi ni g9 29
2.3- Banking environmenf anySÌS.....................-.«co c1

n1. 34
2.3.1. Banking industry background:...............................--«««<«cc
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2.3.1.2- US financial sform: .........................-- cm

H1

Hi Ý V986 34

2.3.1.3- Competition among banks: .............................--.-<< c0 sse 35
2.3.1.4- Competition with securities market:..............................-.<< <<<2.3.2- Trends in banking industry.....................-..-.- «<< s1 111 s9 36
2.3.3. Financial market anySÌS:....................--con n9 1n 1n n1 n8, 38
2.3.4. Opportunities of banking indusfrV......................--..--«<< «<< s5 s 5s 42
2.4. VIBs position in banking industry and competifOFS.........................-.- 44
2.4.1. Competitors’ business situation (as at 31° December 2008): ................ 44

2.4.2. VIB’s market share in the banking system: ................................-.--« 45
2.4.3. Comparing VIB with its competitors at present fenS€:....................... 46
CHAPTER

III: VIB'S GENERAL

2013, SOLUTIONS

BUSINESS STRATEGY

PERIOD 2009 -

AND CONCLUSION

3.1- VIB's mission and vision period 2009 - 2()Ï 3:,........................ Sex.)
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3.1.4. Process of developing VIB’s business strategy: .........
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3.2. Business strategy period 2009-2013 oo...
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3.2.1.1-VIB”s basic business targets up to 2(013:................................c.
c3
3.2.1.2. Management and 0pe€ratiOHS (ASKS................. c4
3.2.2. Personal customer busin€SS SEFACỢN............ con

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3.2.3. Corporate customer ĐbuSỈNI€SS SEFAECĐV..............
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3.2.3.2- Big corporate & FDI customer business strafۯV............................ 66
3.2.4. Business strategy for Treasury and foreign currency trading group ....68
3.2.5. Network development strategy ............cccceceecceecesereeeeeeeesersceeseserss 68
3.3- Solutions and launch 0Ÿ eX€CufÏOH.......................--c
55 71

3.3.1. Bring into play the essence of competitive advantages, such as: .......... 71
3.3.2. To achieve its targets and business strategy period 2009-2013, VIB needs to
develop
10

a comprehensive

ii)

action program,

086) 2.

comprising

very specific operational

eeae.-.............. Tế

3.3.2.1- Proceed with restructuring organizational model: ......................... 72
3.3.2.2- Reform branches and customer welcoming manner ...................... 76
3.3.2.3-Build a new model in business and customer serVvices:.................... 78
3.3.2.4- Develop branches’ operation process, describe staffs’ job ............... 79
3.3.2.5- Complete the planning process of branches .............................-..«- 80
3.3.2.6- Improve human resource qualÏty ..........................----«se «<<
<<<5 80
3.3.2.7- Develop the project of reallocating the bank ...........................-.- 81
3.3.2.8- Concentrate on performing strategic levers and development route ...81
CONCLUSION wns cunussas vane nies oars wus ssc

sams saree sae baie anne Baw was KR BIỂN A6068 1/001-3103084.30884 83


FOREWORD

1. Reason for choosing topic:
The event of Vietnam joining the World Trade Organization (WTO)
turning-point
who

know

for Vietham’s
how

to

invest,

Opportunities

are always

anytime

they

and

economy.

will

search

and

threats,
make

Opportunities are waiting
utilize.

dangers,

businesses

However,

challenges,
face

with

for the enterprises

existing

and

risks

difficulties

marked a great

alongside
that

can

if there

with

arise
is no

at
full

preparation for courses to deal with them.
With competitions happening more and more severe and violent in the market, each
business should prepare readily with effective courses in order to exist and develop
solidly. A corporation with sound and suitable business strategies, being able to lean
On internal forces to make use of opportunities coming from external environment or
to avoid

risks, restrict weaknesses

will certainly be strong enough

to compete

and

stand firmly in the market.
2009

is the 3rd year that Vietnam’s

economy joined WTO

more and more wholly,

among

that the most important thing is that the presence of banks with

foreign

fund. Opportunites and threats are waiting for banks, including Vietnamese

International

Commercial

Joint

Stock

Bank

(VIB).

While

domestic

100 percent

banks

are

expanding their networks, the establishment of domestic banks and the existence of
banks with 100 percent foreign fund will lead to more severe competitions.
For VIB, in the conditions where the economy always changes with many chances but

also several challenges, the competition in banking industry is increasingly severe with
the participation of foreign banks, and direct competitors

is domestic commercial joint

stock banks, to create a firm and stable position will require a lot of efforts to maintain
the market share and develop more. Nonetheless, VIB has distinguished itself as a star
in the joint stock bank system
models,

strategies

according European
Board

of

establishing

brand

image

organizational and management
with

the

guideline

“Managing

style, trading according to Eastern philosophy” (According to a

of Directors Chairman

brand name

by applying modern

in power).

Depending

of VIB and internal forees which

on available advantages

of the

ts the determination and singleness of

mind of the Board of Directors, Board of Management, and staffs, VIB was successful
IN building and carrying out the business strategy period 2003-2007,


So as to maintain its position and continue pursuing the objective of leading VIB to
become one of the top five joint stock banks of Vietnam and to harmonize with the
hew

era — era of globalization,

faster,

firmly,

safely

and

VIB

needs to develop strategies to make

effectively

together

with

restructuring

it expand

the

system

corresponding to customer-oriented product lines.
With these reasons, our group has decided to choose the topic “Developing a general

business strategy of Vietnam International Commercial Joint Stock Bank (VIB) period
2009-2013”

to do

research

for the

capstone

project

of the

MBA

degree,

Griggs

University.
2. Goal and meaning:
-

Goal:

Using

researched

theories combined

with analyzing practices to bring up

effective business strategies for VIB from now to 2013.
-

Meaning: According to scientific foundation, this research project came into being
with the desire of contributing some strength for the chosen institution — Vietnam
International Commercial Joint Stock Bank (VIB).

3. Object and area of research:
Research object: Business strategies of businesses.
Research

area:

Banking

environment,

competitors’

strategies,

and

business

strategies of VIB.
4. Research method:
By several methods like quantitative and qualitative methods, combined with analysis,
statistics, and expert method, the coursework was carried out for research at VIB bank
to gain the most comprehensive and exact results. Based on that basic, our group are
then able to bring out effective strategies.
5. Topic’s

struture:

consisting

of foreword

and

conclusion,

the essay’s

structure

consists of three parts:
Chapter I: General theories of business strategy
Chapter Il: Analysing the actual state of VIB
Chapter

Hf:

Develop

a general

realization solutions and conclusion.

business

strategies

for

VIB

period

2009-2013,


CHAPTER

GENERAL

THEORIES

I

OF BUSINESS STRATEGY

1.1 — Notions and role of business strategy in corporations:
1.1.1. Some notions about business strategy:

The terminology “strategy” started from military field. In military, strategy is defined
as: the art of combining military forces, mental and economic politics mobilized to win
over

the

enemy.

Though,

nowadays,

the

term

“strategy”

are

used

frequently

in

business field. Although it started long ago, there has not been an absolutely exact and
sufficient definition for this term. Some notions about business strategy are as follow.
According to Michearl Porter, a professor of Havard University: “Business strategy 1s
the art of creating competetive edges”. Like that, business strategy is one of means to

compete among corporations; it is a way for corporations to attain the proposed objects
by creating competitive edges, or equivalently, by creating strengths, opportunities,
dangers, challenges, etc, thus point out suitable solutions to succeed in business.
As

the

consultation

group

of Boston

Consulting

Group

(BCG)

stated:

“Business

Sstratedy is the division of corporations’ available resources and take the competitive
position.”

This

means

that

corporations,

by

analyzing

its resources

and

business

divisions then dividing its resources in the most effective way, point out objectives and
tactics to realize those objectives with the greatest effect to generate dominance

to

compete.

According to Alain Charles Martinet: “Strategy is the art corporations use to prevent
competition

and

gain

success.”

evolvement

orbits, around

Hence,

strategy

those orbits may

is to sketch

out

firm and

lasting

be able to organize right decisions and

actions of corporations.
In business

environment,

applying this term always
Pheretore,

the term
fails

“strategy”

mostly

arises

from

basic

laws.

Yet,

due to lack of Knowledge about its nature and use.

itis difficult to get a united

definition

about “strategy”

because of two

reasons:

(1) strategy consists different aspects, and (2) strategy has individuality,

changes

with circumstances

of each business,

in each typical branch.

However,

it

there


are at least three types of strategy in business world, which are: strategy or normal
strategy, corporate strategy, and competitive strategy.

Corporate

Strategy

Strategy

Competitive
ICRC

Figure 1.1: Strategy
Therefore, there are many definitions about strategy, but focused on four main areas:
plan, model, position and prospect. In accordance with these points of view, strategy is:

(1) A plan showing what to do from one thing to get another thing.
(2) A lasting activity model,

for example

a company

which always promotes

costly products, it is using the strategy “focusing on objects with high income”.

(3) Position, which indicates decisions of bringing special goods or services to
special markets.
(4) Future

prospect,

which

is line

of vision

and

orientation

which

helps

corporations or organizations expand.
1.1.2. Role of business strategy.
A defined business strategy is equivalent to corporations answering these following
questions:

The corporation
-

Where is it standing?

-

What does it want to do?

-

What does it have to do?

-

What will it do?

-

How will it do so?


From

specifying the current standing point, developing

business strategies will

give us the answer for where the corporation wants to go and by which method it can
vo. If any. Business strategy points out objectives and directs corporations to operate
effectively.
Strategy helps a corporation utilize resources rationally, creating a competitive
position for its products

in the market,

find its strengths and make

use of them

to

create edges, also find out the disadvantages to limit and overcome them. Additionally,
strategy helps corporations take advantages of chances, always in an active position in
face of environmental changes.
These

days,

in the

market

economy

where

competitions

among

competitors

inside and outside some particular industry are serious, businesses do not only have to
exert all its strength to perfect its internal functions effectively, but also have to be
dynamic, flexible in its activities to adapt to market’s complex changes. This situation
requires corporations to be more

long-sighted for its own

improvement.

A practical

problem is that strategy is the factor that helps corporations improves. For this reason,
it is necessary

to start a plan by pointing out the future prospect,

including exact

position, and how it can achieve it with a carefully established plan. In the long-term,
everything will change. Decisions and actions of the model mark a change from the
beginning to the success.

1.1.3. Business strategy models:
1.1.3.1 - Linear strategy model:
The

linear model

concentrates on planning activities. A model

is called linear

because it comprises activities which are in sequence, oriented and in logical order ofa
planning process.
According to linear point of view, strategy consists of: integration of decisions,
operations, and plans set up and oriented to the organization’s objectives.

Both the

objective and the method of achieving it are the result of strategic decisions. In order
to

achieve

environment,

the

objective,

the

such as changing

organization

may

change

its

link

to) surrounding

products, transferring markets, or carrying out other

business activities. Terms associated with the linear model include: forming a strategic
plan, establishing the strategic sytem, and performing the strategy.


The

linear model

describes

high-level

managers

as people

with the ability of

changing organization. Surrounding environment

is a group of difficulties caused by

competitors.

decisions,

Through

a process

of appropriate

the

high

level

manager

defines the target, develop alternative plans to achieve the target, assess the chance of
success of each

plan, and decide the plan to operate.

In this process, the manager

makes use of future trends and conditions benefit for commercial activities and avoid
or

have

methods

to

businesses to make

prevent

the

disadvantages.

profit, the two

important

As

the

model

1s developed

for

conclusions considered are profit and

productivity.
If the purpose of the planning process is the corporation’s success, it is needed to
ensure

that all decisions

of the

top

manager

will

be operated

completely

in the

organization. This assumption enables proposed ideas to become realistic actions. The
second assumption of the model starts from the characteristic of time-consuming and
future directing of the planning process. In other words, today’s decision are given by
believing in future conditions.

Decisions may be carried out after a few months, or

even a few years. In order to believe that the time given to making decision is not
wasteful,

it

is

necessary

to

believe

that

business

environmental

changes

are

predictable. One more assumption is that the most important result ofa strategy is that
each institution is able to define some goals and complete them.
Linear model is used less and less since strategy problems are increasingly severe
not only because they are connected with several management aspects, but also due to

changes of technical, economic, information, social... variables.
1.1.3.2 - Adaptation strategy model
Adaptation strategy model is defined as being interested in improving the ability
of combining opportunities and risks of business environment with the corporation’s
resources and its ability to exploit these opportunities. The predicted corporation will
continue to assess internal and external conditions. The result of assessment are the
appropriate

adjustments

in the organization

or in related environments

in order to

create a suitable combination between the environment’s opportunities and risks and
the corporation’s ability and resources.
Adaptation
environment

are

strategy
connected

is)

based)

more

on)

closely

some
than
10)

assumptions.
dinear

model.

Corporations — and
Environment

is more


dynamic

and

more

difficult

to predict

in adaptation

model.

Business

environment

includes: competitors, trend, and relevant factors (become more and more important).
While

linear

model

assumes

that

corporation

has

to

face

business

environment,

adaptation model assumes that corporation changes in line with business environment.
Adaptation model uses more variables and have greater modification ability than
linear model. Nevertheless, many still believe that the realistic business world is much
more complicated.
1.1.3.3 - Interpretive strategy model
Until now,

interpretive strategy model's parameters

have not been completely

clear. However, this model is mainly based on factors of social relationship. The social
relationship standpoint considers a corporation as a mixture of cooperation agreement
between each individual and voluntariness. The existence ofa corporation depends on
the ability of attracting labors sufficient for suitable benefits for all parties.
This model also assumes that reality is not something objective or exogenous, but
is taken

shape

through

a process of social

impacts,

in there everyone’s

feeling

is

reliable, adjusted and replaced corresponding to others’ feelings.
Strategy

in

interpretive

model

can

be

defined

as a oriented

metaphor

or a

Orientation frame allowing the institution’s important factors to understand it and its
surrounding

environment.

On

this basis, these important

factors are encouraged

to

believe and act in the orientation of creating beneficial effect for businesses.
Interpretive

strategy,

business environment

like

adaptation

strategy,

assumes

that corporations

and

relate closely to each other. Still, in interpretive strategy, the

corporation’s leader forms opinions of each individual in the corporation and people to

be

involved

as well

as the corporation’s

products.

However,

the

leader does

not

perform physical changes to the products. Change in opinions leads to a greater trust
for the corporation

or its products.

About

this point,

interpretive

model

equals

to

adaptation model.
A noticable difference between adaptation model
approach

to complexity

complicated
demand

for

of each

model.

Adaptation

and interpretive model
model

tries hard

is the

to solve

the

problem of structure, the most significant is the conflict and changes of
the

corporation’s

products.

Interpretive

model

emphasizes

on

complicated problem of attitude and awaremess of parties related to the corporation,

the


1.2- The process of developing general business strategy:
The

general

business

strategy

is outlined

based

on

the

corporation’s

vision

expression, have the nature of directing all the activities of the corporation and thus,
have the nature of lasting strategy. Consists of these following steps:
1.2.1. Choosing the corporation’s mission and main targets:
A corporation’s mission and main targets provide the background to set up the
strategy. The mission states the reason of an organization’s existence and shows what
it will do. Main targets determine what the business wishes to satisfy in the mediumand long-term.
1,2.1.1- Mission:
Mission 1s a message expressing the essential value ofa business. It illustrates the
business’s importances and contributions in both business and life aspects; it shows the
corporation’s business motto, its position in the world, and the points it commits to
obey. Mission has to be concise but imply adequately basic meanings, has to be be
encouraging and represents a long-term stability.
Some expressions about mission for reference:
Merck:

We are in the business of preserving and improving human

life. All of

Our actions must be measured by our success in achieving this.
Apple: To make a contribution to the world by making tools for the mind that
advance humankind.
McKinsey:

The

purpose

of

McKinseyand

Company

is

to

help

leading

corporations and governments are more successful.
1.2.1.2 -Vision:
Vision

is a message

specifying

mission

to an encouraging

goal.

It shows

the

essence of vital innovations to the corporation, make the corporation believe in the
future and it targets to the goal, make the impossible possible.
Some expressions about vision for reference:
5

“Achieving the goal, before this decade is out, of landing a man on the moon

and returning him safely to earth’ President John Kennedy,
.

“48 hours to assemble and deliver a car” Toyota

:

“Beat Coke” Pepsi

.

“Maru-C™ (Eneirele Caterpillar) Komatsu

1961


.

"Yamaha wo tsubusu(We wil crash. squash, slauphter Yamaha) Honda

1.2.1.3 -A corporation’s business goal:
A corporation’s

business goal

is often

its financial

goal.

It is a specific goal

accompanied by a specific point of ume. For instance, “achieve xxx US dollar profit in
200x”, or “start making profit by the end of 200x”, etc.
1.2.2. External environment:
The purpose of analysing external environment is to aware of opportunities and
threats

from

the

corporation’s

external

environment.

Three

kinds

of

external

environment which link with each other are: macro environment, national environment
and industry environment where the corporation operates.
The corporation

determines

opportunities and threats by analysing data about

changes in the environments where it is operating or intending to enter. Opportunities
can include market growth potential, market gap, whether or not it is near low-cost
material

and

labor sources with suitable skills. Challenges

market

being

politic

instability

restricted,
in

increasingly

core

markets

harsh
or

competitions,

technological

to a corporation
potential

innovation

policy
which

can be
changes,

makes.

its

production means and lines have the risk of being outdated.
1.2.3. A corporation’s internal environment:
The

purpose

of analysing

internal environment

is to find out a corporation’s

strengths and weaknesses.
By analysing a corporation’s internal environment, strengths about organizing the
corporation can be skills, resources, and advantages it has over its competitors (its key
abilities) such as having many talented managers, a superior technology, a well-known
brand name, available cash, a good image in front of public and a large market share in

core markets.

A corporation’s weaknesses

are shown

in shortcomings or flaws and

skills, resources or factors that restrict its competing ability. They may be ineffective
distribution network, poor working relationships, lack of internationally experienced
Managers or goods and services being outdated compared to competitors.
Results from analysing a corporation’s internal and external environments are results
of

researching

environment

and

i some

assessing

business)

geographical

environment

boundary

generally,

including

(politic. social, economic,

business

environmental,

cultural). industry's trend (science. technology, suppliers), market's state (demand, selling


ability,

trend

forecast), competition

situation

(main

competitors,

potential

competitors,

ability, strengths and weaknesses, current position and strategy pursued).
1.2.4. Choosing business strategy:
A

corporation’s

establishment

business

strategy

of the corporation’s

is

the

competitive

direction

edges

based

assessment of the situation as above steps. The corporation

of

on

improvement
knowledge

and

and the

can have many strategic

choices such as:

The most creative technology.
-

Lowest prices (Cost domination strategy).

-

Only focus on a particular market or a particular market segment.

-

Only focus on a particular group of products.

-

Making the difference strategy.

Choosing a strategy plan can be conducted by one of the following methods:
1.2.4.1- BCG method:
The criteria for valuing a corporation’s attractiveness are relative market share
and the industry’s growth. Ech activity will be located according to these criteria. This
matrix has two axes: vertical axis: growth ability of the market, and horizontal axis:

Group 3

Group 4

Relative market share

High

Medium

Figure

From
below

the

BCG

strategies:

matrix,

1.2: BCG

figure.

\5!H

Group 2

wInIpayy

|

WOT]

Group

12NIDUI â(1 JO ẤN [IQE 11A0)

>
+>

relative market share.

Low
matrix

corresponding

to each

location

we

have

these


Group

1: Corporations

in this square have many

edges and they can give up to invest

prospects but no competitive

for other areas or concentrate on investing to

control the market.
Group 2: The corporation has high prospect and competing power. The solution
for it is to frequently consolidate investing effort so as to maintain its leading position.
Group

3: The corporation

has slow growing

speed but has advantages

about

market size. The solution for it is to avoid investing too much and at the same time,
estamate the withdrawing time.
Group 4: The corporation has neither advantages about relative market share nor
growth rate. The solution for the corporation is to quickly withdraw from the market
by not gathering

valuable

and

rare resources

or reselling to a more

advantageous

corporation.
The approaching method of BCG
widely.

On

the one

hand,

has many advantages and therefore, is applied

this matrix

make

it easy

to anaylize

the corporation’s

activities list in general. It enables examining whether or not the fund flow from some
activities can offset demand and whether or not new actitivites can replace degrading
activities. On the other hand, it enables creating objectives about activities list as well
as

strategies

that

need

to

be

pursued.

However,

this

method

also

has

many

disadvantages. First of all, it is the difficulties in arranging activities in the four types
mentioned above, or more exactly, deducing the location of activities corresponding to
the applied strategy. For example,

when

the effect of experience is low a dominant

position does not have the same meaning and consequences as when experience affects
prices greatly. Likewise, special conditions about prices, including competitors’ prices
miay offset external shortcomings in the market. That is why all assumptions of BCG
method must be assessed specifically and completely by other factors.
1.2.4.2 Method of SWOT analysis model:
The

main

purpose

of SWOT

analysis

is to identify

the strategies

it directs,

creating an appropriation among resources, and between the corporation’s ability and
the needs of the environment where the corporation Is operating.
SWOT

matrix

| Strencths
Weak esses

| Opportunities

Threats

S/O strategies

S/T strategies

WO

WT

strategies
|5

strategies


Figure 1.3: SWOT

SO:

strategies are obtained

opportunities.

An

important

matrix

by combining the corporation’s main strengths and

thing 1š that the corporation

has to use its strengths to

exploit Opportunities.
ST: strategies are obtained by combining the corporation’s strengths and threats.
Here, the corporation needs to make use of its strengths to win over threats.
OW:

strategies

are

obtained

when

the

corporation

uses

every

possible

Opportunity to overcome its Weaknesses.
WT: strategies are obtained when the corporation attempts to restrict weaknesses
in order to prevent threats.
A specific example for SWOT
to

1992,

Anaheim,

Walt

Disney

California

had

analysis is the case of Walt Disney Company. Up

always

(1955),

been

Florida

successful

(1970),

and

in Disneyland
Tokyo

(1983).

theme
In

parks

1992,

in

Disney

continued its success in Paris due to correct practical and realizable results of SWOT
analysis process, namely:
S: The

fame

of cartoon

characters,

famous

Walt

Disney

brand

name,

strong

financial potential.
W: The knowledge about French culture and interest was not complete.
O:

France’s

geographic

location

was

favorable

(central

of

Europe);

French

government had encouraging and supporting measures for transportation, land’s price,
share contributing...
T: The competition of other theme parks in Paris.
1.2.4.3- Mc KINSEY - GENERAL

ELECTRIC matrix method:

This model was built based on two norms: market attractiveness and competitive
position. These two norms are divided into three levels: strong — medium — weak. Each
aspect

enables

locating all activities

in the table.

For example,

the activity

SBU]

develops in a market with much attraction and high competitive position. One of the
activities that should be brought forward is to maintain these activities at this position,
The

activity

SBU3

does

not

develop

in the

same

kind

of market.

The

market

attractiveness Is very poor. However, good competitive position shows that it does not
need to spend too much effort to sustain the Maximum profits.


The task of analyzing internal and external environments and then choosing a
strategy 1s considered to be developing a strategy.
1.2.5. Performing the strategy:
It is an operational plan setting up the activities that the corporation will carry out

together with progress achievement at each time point which the corporation needs so
as to achieve the joint target. It also includes the design of the organizational structure
and appropriate control system in order to bring the strategy to performing.
The process of forming a business strategy mentioned above can be summarized
in the following diagram:

Figure 1.4: Performing the strategy

17

CHAPTER
VIB’S ACTUAL

I
STATE

As we all know, a bank 1s a special corporation because it trades and provides a
very special type of goods
monetary

finance

— it is monetary finance. Banking operations are to supply

to corporations,

and

is a blood

vessel

that

feeds

Therefore, most of current factors affecting Vietnam’s economy

the economy.

are the factors that

affect current business activities at some commercial banks. For this reason, under the
angle of the topic, we will mention some of the following problems about VIB in the
situation when Vietnam’s economy has joined WTO:
Analyzing

actual state of VIB.

Therein

analyses

VIB’s

business situation and

result in the nearest three years (2006, 2007, 2008). VIB’s strengths and weaknesses.
Analyzing

current business

environment

of banking

industry. Then,

point out

opportunities and threats for VIB’s business activities.
Based on the above analyzing results, our group conclude that VIB need to have
changes in its business strategies and restructure the bank and relocate brand name
appropriate
economy

to current

reality

and

future

prospects.

Particularly

when

the

global

is under crisis and especially the financial crisis happening in the US and

many other countries in the world.
2.1- The actual state of VIB

2.1.1. A general view of VIB
Vietnam

International

Commercial

Joint

Stock

Bank

(abbreviated

as Vietnam

International Bank — VIB)’s head office is located at 198B Tay Son street, Dong Da
district,

2Šth

Hanoi;

Januray

the bank

1996

was

established

by the Governor

under the

of State

Bank

consist of successful individuals and businessmen
markets;

Bank

for

Foreign

Trade

of

Decision

Vietnam;

No.

22/QD/NHS5

of Vietnam.

Founders

dated

of VIB

in the domestic as well as foreign
Vietnam

Bank

for

Rural

and

Agricultural Development.
VIB is persisting strengthening its position in Vietnam’s financial market. Since
the inauguration day, with its initial charter capital of SO billion Vietnam dong, VIB
has been developing to become
Vietnam.

one of the leading domestic

financial institutions of


VIB provides a range of package financial products and services for customers,
core ones are small and medium corporations with healthy operations and individuals
and households

with stable incomes.

By

30th April 2009,

VIB’s charter capital

2,000 billion VND; total assets were nearly 40,000 billion VND.

hit

VIB has always been

rated best by State Bank of Vietnam according to assessment standards of Vietnam's
Bank system for many successive years.
By 30th May 2009, beside the head office in Hanot, VIB has over

and transaction offices in Hanoi,

Ho Chi Minh

City, Hai

100 branches

Phong, Quang

Ninh,

Hai

Duong, Vinh Phuc, Phu Tho, Thai Nguyen, Thai Binh, Ha Tay, Thanh Hoa, Nghe An,
Hue, Da Nang, Quang Ngai, Binh Dinh, Khanh Hoa, Dac Lac, Dong Nai, Binh Duong,
Vung Tau, Can Tho, An Giang, Kien Giang, Tay Ninh...
With the motto “Values and values for you”, VIB never stops adding the value of
customers, partners, its staffs and shareholders.
Banking
relating

to

services
the

developed

banking

and

services

provided

and

its

by VIB

structure:

for customers

See

more

include

information

in

Appendices.
In conclusion,

after almost

13 years of operating,

VIB’s

size of business has

expanded

significantly. Targets in total assets, capital mobilized

from residents and

economic

organizations, credit liabilities of economic organizations and individuals,

profits before tax have grown stably. Especially, from 2003 to now, VIB’s next year
average growth rate has always doubled previous year’s. Since the inauguration day,
with its Initial charter capital of 50 billion VND and 23 staffs, now, VIB’s total assets
have grown to nearly
VND;
with

35,000 billion VND; owner’s equity has reached 2,500 billion

number of staffs has raised to 2,500, network has been expanded continuously
107

transaction

offices

nationalwide

equipped

with

innovative

facilities and

technology system.
From

2003

to 2007,

VIB

has successfully

developed

its business strategy.

In

addition to achieved operating results, during this period, VIB successtully conducted
core-banking

technology

modernization

project

in the whole

system.

Depending

on

innovative technology, VIB’s products and services has been diversified by steps with
services:

Mobile

Banking.

Internauional credit cards...

Internet

Banking.

VIB4U.

Domestic

debit)

cards.

Phe bank's card services were marked development when

LÒ