Strategies in developing Eximbank card service from 2011 to 2015

CAPSTONE PROJECT REPORT


STRATEGIES IN DEVELOPING
EXIMBANK CARD SERVICE FROM
2011 TO 2015


Group No.: 7
 DOAN THI AI MY
 DANG THAI HANG
 TRAN VAN LAM
 DANG THANH KHANH
 LE DUY NAM


CLASS: GaMBA01.C0210
Ho Chi Minh City, 2011

2011

GLOBAL ADVANCED MBA PROGRAM (GaMBA01.C0210)

Group No.: 7

Group 7, GaMBA01.C0210 – Strategic Management




GLOBAL ADVANCED MASTER OF BUSINESS
ADMINISTRATION PROGRAM

CAPSTONE PROJECT REPORT
STRATEGIES IN DEVELOPING EXIMBANK
CARD SERVICE FROM 2011 TO 2015



Group No.: 7
 DOAN THI AI MY
 DANG THAI HANG
 TRAN VAN LAM
 DANG THANH KHANH
 LE DUY NAM



CLASS: GaMBA01.C0210
Ho Chi Minh City, 2011
Group 7, GaMBA01.C0210 – Strategic Management
1

COMMIMENT
Dear the jury,

Our group, the seventh (7
th
) group – GaMBA.C0210, includes 5 members. We
commit that this capstone project is our research work which have been done for…,
months.
The theory and the data in this capstone project were done by us. We have
consulted, collected, and quoted from textbooks, documents (Griggs University,
University of Economics Ho Chi Minh City, magazines, internet,…). Figures,
formal information were taken from financial reports from banks, especially
Eximbank (Vietnam Export Import Commercial Joint Stock Bank).
Through the outline that was approved and made a suggestion by teachers of Griggs
Program, our group have researched and presented strategies of our company very
clearly. We have mentioned solutions to do above strategies in developing
Eximbank cards from 2011 to 2015. We based on our experience, intuition, data,
figures, information of banks (all over the world and in Vietnam), and knowledge
which we had been taugh for 4 months to finish this capstone project.
The jury‟s comments is a precious opportunity for us so that we apply this
knowledge in planning, establishing, implementing business strategies in our
business the best.

Group 7, GaMBA01.C0210 – Strategic Management
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ACKNOWLEDGEMENT
Our group, group 7 – GaMBA.C0210, express our gratitute to Global Advanced
Master of Business Administration Program – the Griggs University, teachers,
assistant professors supported, helped us during the time we had learnt.
We are also kindly to thank the Jury that have instructed us to finish this capstone
project.
Besides, we are thankful to leaders of Eximbank who allowed us to collect data,
information,to do this topic.
And, we are grateful to leaders (Eximbank, An Giang Construction Company, Ltd
(ACC), HoChiMinh City University of Technology (HCMUT), Saigon construction
quality control joint stock company (SCQC), Ho Chi Minh City Department of
Finance where we have been working) and our families who helped us finance,
encouraged our spirit so that we could finish MBA program wholeheartedly.
One more time, we are kindly to thank Global Advanced Master of Business
Administration Program – the Griggs University, the Jury, teachers, assistant
professors, leaders (Eximbank, An Giang Construction Company, Ltd (ACC),
HoChiMinh City University of Technology (HCMUT), Saigon construction quality
control joint stock company (SCQC), Ho Chi Minh City Department of Finance
where we have been working) and our families with our deepest gratefulness.
We wish you and your family get happiness, health, success.
Group 7, Class GaMBA01.C0210

Group 7, GaMBA01.C0210 – Strategic Management
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LIST OF ABBREVIATIONS
 AFTA: Asean Free Trade Area.
 ATM: Automatic Teller Machine.
 BC: Before Christ.
 BIN: Bank Identification Number.
 CA: Competitive Advantage.
 CPM: Competitiev Profile Matrix.
 D/A: Documents against Acceptance.
 D/P: Document against Payment.
 EFE Matrix: Establishing External Factor Evaluation Matrix.
 EIB: Export Import Bank.
 EMV: Europay MasterCard Visa.
 ES: Environmental Stability.
 FS: Financial Strengths.
 IE Matrix: The Internal – External Matrix.
 IFE Matrix: Establishing Internal Factor Evaluation Matrix.
 IS: Industry Strength.
 IT: information technology.
 JCB: Japan Credit Bureau.
 L/C: Letter of Credit.
 P/O: Purchasing Order.
 PIN: Password Identify Number.
 POS: Points of Sales.
 QSPM: The Quantitative Strategic Planning Matrix.

 SPACE Matrix: The Strategy Position and Action Evaluation Matrix.
 SWOT Matrix: The Strengths – Weaknesses – Opportunities – Threats Matrix.
 T/T: Telegraphic transfer.
 US: United States.
 VNBC: Vi Na Brilliant Card.
 WTO: World Trade Organization.



Group 7, GaMBA01.C0210 – Strategic Management
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LIST OF FIGURES
Figure I-1: The general strategic management model . . . . . . . . . . . . . . . . . . . .
Figure I-2: The planning business strategic process . . . . . . . . . . . . . . . . . . . . .
Figure I-3: Competitive forces of Micheal E.Porter . . . . . . . . . . . . . . . . . . . . .
Figure I-4: External factors evaluation (EFE) matrix . . . . . . . . . . . . . . . . . . .
Figure I-5: Internal factor evaluation matrix . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure I-6: Competitive profile matrix (CPM) . . . . . . . . . . . . . . . . . . . . . . . . .
Figure I-7: The SWOT matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure I-8: The SPACE matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure I-9: The internal – external (IE) matrix . . . . . . . . . . . . . . . . . . . . . . . .
Figure I-10: The QSPM matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-1: Finalcial statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-2: Operational chart of card management department . . . . . . . . . . . .
Figure II-3: Number of merchants in 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-4: Total number of ATM machines . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-5: Acquiring volume at merchants in 2010 . . . . . . . . . . . . . . . . . . . .
Figure II-6: Volume of card payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-7: The number of transactions at ATMs investigation . . . . . . . . . . . .

Figure II-8: Issued cards in 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-9: Number of active cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-10: Number of Issuing Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-11: The mobilization from ATM and Visa Debit cards account . . . .
Figure II-12: Volume of Eximbank Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-13: Review of Credit card debt (NPL) . . . . . . . . . . . . . . . . . . . . . . .
Figure II-14: Income from card business . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-15: Profit of card business in 2010 . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure II-16: Defence from card service in 2010 . . . . . . . . . . . . . . . . . . . . . . .
Figure II-17: Payment for Union of ATM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure III-1: Issued cards in 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure III-2: Review of credit card debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Group 7, GaMBA01.C0210 – Strategic Management
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Figure III-3: Income from card business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure III-4: Profits in card business in 2010 . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure III-5: Density of turnovers from card operation in 2010 . . . . . . . . . . . .
Figure III-6: Financial statements 2006 ÷ 2010 . . . . . . . . . . . . . . . . . . . . . . . .
Figure III-7: Model of the eximbank card center (propose) . . . . . . . . . . . . . . .
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LIST OF TABLES
Table III-1: External Factors Evaluation Matrix . . . . . . . . . . . . . . . . . . . . . . . .
Table III-2: Internal Factors Evaluation Matrix . . . . . . . . . . . . . . . . . . . . . . . .
Table III-3: Competitive Profile Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table III-4: Internal And External Factors Matrix . . . . . . . . . . . . . . . . . . . . . .

Table III-5: SWOT Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table III-6: SPACE Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Table III-7: QSPM Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Group 7, GaMBA01.C0210 – Strategic Management
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TABLE OF CONTENTS

PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10


CHAPTER I
THE THEORETICAL BASIC OF BUSINESS STRATEGIES AND
STRATEGIC MANAGEMENT
1.1.
1.2.
1.2.1.
1.2.2.
1.2.3.
1.3.
1.3.1.
1.3.1.1
1.3.1.2
1.3.1.3
1.3.2.
1.3.3.
1.3.4.
1.4.
1.4.1.
1.4.2.
1.4.3.
1.4.4.
1.4.5.
1.4.6.
1.4.7.
1.5.
Basic concepts of business strategies . . . . . . . . . . . . . . . . . . . . .

Classify business strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate – level Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Strategic Business Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Function- level Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stages of Strategic Management . . . . . . . . . . . . . . . . . . . . . . . . .
The planning business strategy process . . . . . . . . . . . . . . . . . . . . .
Choose mission and vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Analyse external environment . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Analyse internal environment . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Establish business strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Solutions to do business strategies . . . . . . . . . . . . . . . . . . . . . . . . .
Evaluate effects of business strategies . . . . . . . . . . . . . . . . . . . . . .
Choose strategic matrices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
External Factor Evaluation (EFE) Matrix . . . . . . . . . . . . . . . . . . .
Internal Factor Evaluation (IFE) Matrix . . . . . . . . . . . . . . . . . . . .
Competitive Profile Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Strengths Weaknesses Opportunities Threats (SWOT) matrix
The Strategy Position and Action Evaluation (SPACE) Matrix . .
The Internal – External (IE) Matrix . . . . . . . . . . . . . . . . . . . . . . . .
The Quantitative Strategic Planning Matrix (QSPM) . . . . . . . . . .
Some experience in choosing business strategies . . . . . . . . . . . .
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17
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19
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21
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22
23
24
25
26
27
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Group 7, GaMBA01.C0210 – Strategic Management
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CHAPTER II
BUSINESS ACTIVITIES EXIMBANK CARDS
2.1.
2.1.1.
2.1.2.
2.1.2.1
2.1.2.2
2.1.3.
2.1.4.
2.1.5.
2.1.6.
2.1.7.

2.1.7.1
2.1.7.2
2.1.8.
2.1.8.1
2.1.8.2
2.1.8.3
2.2.
2.2.1.
2.2.2.
2.2.3.
2.2.4.
2.2.5.
2.2.6.
2.2.6.1
2.2.6.2
2.2.6.3
2.2.7.
2.2.8.
Overview of payment cards and the development situation . . .
The history and the development of payment cards . . . . . . . . . . . .
The concept and the characteristic of payment card . . . . . . . . . . .
The concept of payment card . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The characteristic of payment card . . . . . . . . . . . . . . . . . . . . . . . .
Classification of payment cards . . . . . . . . . . . . . . . . . . . . . . . . . . .
Card markets and participants . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The benefit of using cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Key factors affect to the development of payment cards . . . . . . . .
Development situation of card in Global and Vietnam . . . . . . . . .
Development situation of card in Global . . . . . . . . . . . . . . . . . . . .
Development situation of card in Vietnam . . . . . . . . . . . . . . . . . . .

Market‟s factors affecting activities of Eximbank card . . . . . . . . .
Positive factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Difficulties and limitations factors . . . . . . . . . . . . . . . . . . . . . . . . .
Opportunities, potential card market in Vietnam . . . . . . . . . . . . . .
Introducing about Eximbank . . . . . . . . . . . . . . . . . . . . . . . . . . .
History and development of Eximbank . . . . . . . . . . . . . . . . . . . . .
Results of Eximbank business in three years (2008-2009-2010) . .
The functions and duties of Eximbank . . . . . . . . . . . . . . . . . . . . . .
The organizational structure of Eximbank . . . . . . . . . . . . . . . . . . .
Introducing about Card Management Department of Eximbank . .
Status of card issuance, customer base and partners . . . . . . . . . . .
Card services of Eximbank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Review of Eximbank card business in Vietnam . . . . . . . . . . . . . . .
Card service development and partner . . . . . . . . . . . . . . . . . . . . . .
Compare card business of Eximbank with others . . . . . . . . . . . . .
Eximbank‟s potition on Vietnam market . . . . . . . . . . . . . . . . . . . .
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Group 7, GaMBA01.C0210 – Strategic Management
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Summary of Chapter II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67

CHAPTER III
STRATEGIES IN DEVELOPING EXIMBANK CARD SERVICE
FROM 2011 TO 2015
3.1.
3.1.1.
3.1.2.
3.1.3.
3.2.
3.2.1.
3.2.1.1

3.2.1.2
3.2.2.
3.2.2.1
3.2.2.2
3.2.2.3
3.2.2.4
3.2.2.5
3.2.2.6
3.3.
3.3.1.
3.3.2.
3.3.3.
3.3.4.
3.3.5.
3.3.6.
3.3.7.
3.4.
3.4.1.
Business objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Analysis of the external and internal environment . . . . . . . . . .
External Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Macro Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Micro Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An overview of the Eximbank‟s card market . . . . . . . . . . . . . . . . .
Financial resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Human resource . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The brand prestige . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company‟s culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Technology system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The strategic matrixs of Eximbank . . . . . . . . . . . . . . . . . . . . . . .
External Factors Evaluation Matrix . . . . . . . . . . . . . . . . . . . . . . . .
Internal Factors Evaluation Matrix . . . . . . . . . . . . . . . . . . . . . . . . .
Competitive Profile Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal and External Factors Matrix . . . . . . . . . . . . . . . . . . . . . . .
SWOT Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SPACE Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
QSPM Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eximbank Card Development Strategy 2011 ÷ 2015 . . . . . . . . .
Penetration and Market Development Strategy . . . . . . . . . . . . . . .
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3.4.2.
3.4.3.
3.4.4.
3.5.
3.5.1.
3.5.1.1
3.5.1.2
3.5.2.
3.5.3.
3.5.4.
3.5.4.1
3.5.4.2
3.5.4.3
3.5.4.4
3.5.4.5
3.5.4.6

3.5.4.7
Product Development Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Card Service Charge Strategy . . . . . . . . . . . . . . . . . . . . . . . . .
Internal and external business association strategy . . . . . . . . . . . .
Solutions for implementing the strategy . . . . . . . . . . . . . . . . . . .
Solutions for penetration and market development strategies . . . .
Promotion, marketing for Eximbank cards . . . . . . . . . . . . . . . . . . .
Customer Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Solutions for product development strategy . . . . . . . . . . . . . . . . . .
Solutions for service charge strategy . . . . . . . . . . . . . . . . . . . . . . .
Solution for the internal and external development strategy . . . . .
Solution for the organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Solutions for Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Solutions for Information Technology . . . . . . . . . . . . . . . . . . . . . .
The accountant activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Linking activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Developping scoring system to extend unsecured credit issuance
through international cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The human resource planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Chapter III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Group 7, GaMBA01.C0210 – Strategic Management
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PREFACE
1. Why do we choose this topic?
Card payment, a product of modern electronic banking. Currently, there are many
kinds of cards with different levels of importance (magnetic cards, chip cards,
contactless cards, ). They have been used all over the world. The more diversity in
use, the more benefits users have got.
Eximbank was established on May 24th, 1989 under the decision No. 140/CT of

the Chairman of the Council of Ministers under the name VIETNAM EXPORT
IMPORT BANK and was one of the first joint-stock commercial banks of
Vietnam.
The Bank officially came into operation on January 17th, 1990. On April 6th,
1992, the Governor of the State Bank of Vietnam signed the license No. 11/NH-
GP allowing the Bank to operate for a term of 50 years with the registered charter
capital of 50 billions of VND (equivalent to 12.5 millions of USD) and the new
name Vietnam Export Import Commercial Joint-Stock Bank (Vietnam Eximbank
for short).
At present, Eximbank has the charter capital of 10,560 billions of VND and the
owner‟s equity of 13,627 billions of VND, making it one of the largest banks in
terms of owner‟s equity among the commercial joint stock banks in Vietnam.
As of December 31st, 2010, Vietnam Export Import Commercial Joint Stock Bank
has developed a nationwide network with its Head Office located in Ho Chi Minh
City and 183 branches and transaction offices in Ha Noi, Hai Phong, Nghe An,
Quang Ninh, Quang Ngai, Da Nang, Hue, Nha Trang, Lam Dong, Dac Lac, Binh
Duong, Dong Nai, Ba Ria Vung Tau, Ho Chi Minh City, Long An, An Giang,
Tien Giang, Can Tho and Bac Lieu and has established correspondent banking
relationship with over 852 banks and their branches in more than 80 countries in
the world.
On August, 2007, Eximbank officially announced foreign strategic partner –
Sumitomo Mitsui Banking Corporation, a leading Japanese retail bank, held 15%
Group 7, GaMBA01.C0210 – Strategic Management
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equity. Eximbank have also cooperated 16 partners in domestic such as Satra, kinh
Do, Nguyen Kim, SJC, etc.
This is a landmark to enhance position of Eximbank in the banking system in
Vietnam. Eximbank has potential in finance, management and technology to satisfy
demands of customers.

Products and Service Portfolios of Eximbank are: (phần này em trích ra từ website
của ngân hàng Eximbank)
- Savings deposits and demand deposits mobilization from individuals and entities
in VND, foreign currencies, and gold. Customers' deposits are insured as per the
State stipulations.
- Short, medium and long term loans; syndicated loans; overdrafts; consuming
loans; credit limits in VND, foreign currencies, and gold with favorable conditions
and simple procedures.
- Foreign currency trading by Spot, Swap, Forward, and Currency Option.
- Settlement services and financing for export-import activities, documentary
discounting, and SWIFT-based transfer under various forms of L/C, D/A, D/P, T/T,
P/O, cheque, thus ensuring quickness, reasonable costs and safety.
- Issuing and settling domestic and international credit cards including EXIMBANK
MasterCard, EXIMBANK Visa, EXIMBANK Card; acquiring VISA, MasterCard,
JCB, etc.; making online payments by cards.
- Cash services, payroll, collection, on-site collection and payment, foreign
exchange, overseas remittance payment, domestic and overseas remittances.
- Domestic and overseas guarantee issuance (payment guarantee, tax payment
guarantee, performance guarantee, bid guarantee, price quotation guarantee,
warranty bond, advance payment bond, etc.).
- Financial services package for overseas studies; advisory services for monetary-
financial investments.
- Home-Banking, Mobile-Banking, Internet Banking.
- Other services: reimbursement of lost or stolen Thomas Cook's Travelers'
Cheques, and those services and facilities that meet customers' needs.
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Eximbank cards payment are multi- functional, convenient in transaction, high
security. Card payment has an important role in society. It is a property of

individuals and nation. It has been used in the worldwide, too. It has contributed in
globalization, developing economy, society, modernization of the country. Because
of particularities, benefits in transaction, high security, most of domestic and
international commercial banks have invested to trade cards.
Today, there are more than thirty (30) banks that have traded cards payment. By the
end of 2010, there are more than 30 millions of cards with all kinds. Eximbank has
got 15% market share in trading cards payment.
The more society develops, the more needs of people increases. This is not only
oppotunities but also threats for commercial banks on the market. So, leaders of
Eximbank need to have stable and long-term strategies to improve the utility and the
security of cards.
So, Eximbank have to position business strategies so that it is suitable with
competitive advantages in market.
For those reasons, we chose the topic: “Strategies develop Eximbank cards from
2011 to 2015”.
2. Aim
- Assess the development of payment cards on a national scale, macroeconomic
policies in Vietnam that has affected to card market, opportunities and challenges
for Eximbank card in competitive environment.
- Evaluate, analyse real situation of business activities in Eximbank. Identify
internal force (strengths, weaknesses), invest, link partners, develop Eximbank
cards‟ services.
- Establish strategies, propose solutions in implementation those strategies in order
to develop Eximbank card‟s services from 2011 to 2015.
3. The scope of research
Develop business services of Eximbank cards in domestic. Propose more optimal
strategies tan competitors.
4. Research Methods
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- Research, analyse information from magazine, newspapers, website, internet, etc;
present data of Eximbank, banks which trade in payment cards.
- Build and analyse matrices. Determine internal, external environment; strengths,
weaknesses affect business activities of Eximbank cards. Determine key factors to
choose suitable strategies and propose solutions should be done.
5. The meaning of this topic
- The scientific meaning:
In essence, the strategic plan is a company‟s game plan. To exist and develop,
Eximbank need to have an effective business strategy, especially in researching and
developing Eximbank cards.
- The realistic meaning:
This topic will be analysed, determined strengths, weaknesses of Eximbank. Since
then, managers/leaders determine core values, opportunities, threats at present and
forecast for the future in planning developmental strategies of Eximbank.
This is also a valuable reference document for Eximbank from 2011 to 2015.

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CHAPTER I
THE THEORETICAL BASIC OF BUSINESS STRATEGIES AND
STRATEGIC MANAGEMENT
1.1. Basic concepts of business strategies
The concept of “strategy” appeared very early from studies about war in the history.
At the sixth (6
th
) century BC, Xenophon - a Greek historian – the first author
defined “strategy” . At this time, Sun Tzu – a Chinese military theorist – wrote “Art
of War”, its contents is miliary strategies.
Until mid the twentieth (20
th
) century, the research and development of business
strategies were begun. Scholars (Drucker, Chandler, Ansoff, Andrew, etc)
researched the success of American Corporations before and in the World War II.
Nowadays, authors (Micheal E.Porter, Fred R.David, Rudolf Grunig, Richard Kuhn,
etc) defined strategies with different concepts.
“Strategy is the determination long-term targets, basic purposes of enterprises, the
application action value, the distribution essential sources to do these goals.” –
Chandler (1962);
“Strategy is a force that coordinate between organization and environment: a
consistent pattern about decided value which was organized with environment
suitably.” – Mintzberg (1979);
“Strategy is a pattern or project which integrates major goals, policies, action
values into a whole closely.” – Quinn (1980);
“Strategy is a differentation. That means the choice different activities chain to
make original value calculatingly.” – Micheal E. Porter (1996);

“Strategy is means to get long-term targets.” – Fred R.David (2003);
“Strategy is long-term objectives, oriented management to finish main aims of
company.” – Rudolf Grunig and Richard Kuhn (2003).
- Thus, main contents of business strategies include:
- Determine basic, long - term objectives of enterprise;
- Set up general plans to act.
- Choose suitable projects, deploy and distribute sources to act those objects.
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What is strategy?
Provisional Definition:
Strategy is a coordinated series of actions which involve the deployment of
resources to which one has access for the achievement of a given purpose.
Strategies:
Strategies are the means by which long-term objectives will be achieved. Business
strategies may include geographic, expansion, diversification, acquisition, product
development, market penetration, retrenchment, divestiture, liquidation, and joint
ventures.
Strategies are potential actions that require top management decisions and large
amounts of the firm‟s resources. In addition, strategies affect an organization‟s
long-term prosperity, typically for at least five years, and thus are future – oriented.
Strategies have multifunctional or multidivisional consequences and require
consideration of both the external and internal factors facing the firm.
Strategic Management:
Strategic Management can be defined as the art and science of formulating,
implementing, and evaluating coss-functional decisions that enable an organization
to achieve its objectives. Strategic Management focuses on integrating management,
marketing, finance/accounting, production/operations, research and development
and computer information systems to achieve organizational success.

Benefits of Strategic Management:
Strategic Management allows an organization to be more proactive than reactive in
shaping its own future; it allows an organization to initiate and influence (rather
than just respond to) activities – and thus to exert control over its own destiny.
1.2. Classify business strategies
There are a lot of strategies in an enterprise. It depends on levels, approaches, etc
such as: Corporate – level Strategy, Strategic Business Unit, Function - level
Strategy (Operational Strategy). However, in the global environment, there is no
border among countries. So, the fourth (4
th
) strategic level appears. That is Global
Business Strategy.
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1.2.1. Corporate – level Strategy
According to Fred R.David, there are 14 kinds of basic strategies which are
classified into 4 groups:
Integrated strategic group:
- Forward integration;
- Backward integration;
- Horizontal integration;
Intensive strategic group:
- Market Penetration;
- Market Development;
- Product Development;
- Concentric Diversilication;
- Horizontal Diversilication;
- Conglomerate Diversilication.
Different strategic group:

- Joint Venture;
- Retrenchment;
- Divestiture;
- Liquidation.
Mixed strategy
1.2.2. Strategic Business Unit
According to Micheal E.Porter, there are three (3) general competitive strategies:
- Overall cost leadership;
- Differentation;
- Focus on a particular market niche.
1.2.3. Function- level Strategy
Function – level Strategy is a strategy of each deparment such as: marketing,
finance, human resources, etc. These strategies will enhance performance of
enterprise. They also support business strategies, strategic business (SBU) to be
done effectively.
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1.3. Stages of Strategic Management
There are three (3) stages
According to Fred R.David, the strategic management model includes three (3)
stages:
Figure I-1: THE GENERAL STRATEGIC MANAGEMENT MODEL

The Strategic Management process consists of three stages:
1. Strategy Formulation includes developing a vision and mission, identifying
organization‟s external opportunities and threats, determining internal strengths and
weaknesses, establishing long-term objectives, generating alternative strategies, and
choosing particular strategies to pursue. Strategy Formulation issues include
deciding what new businesses to enter, what businesses to abandon, how to allocate

resources, whether to expand operations or diversify, whether to enter international
markets, whether to merge or form a joint venture, and how to avoid a hostile
takeover. Strategy Formulation decisions commit an organization to specific
products, markets, resources, and technologies over an extended period of time.
Strategies determine long-term competitive advantages.For better or worse,
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strategic decisions have major multifunctional consequences and enduring effects
on an organization.
2. Strategy Implementation requires a firm to establish annual objectives, devise
policies, motivate employees, and allocate resources so that formulated strategies
can be executed. Strategy Implementation includes developing a strategy-supportive
culture, creating an effective organizational structure, redirecting marketing efforts,
preparing budgets, developing and utilizing information systems, and linking
employee compensation to organizational performance. Strategy Implementation
often is called the “action stage” of strategic management. Implementing strategy
means mobilizing employees and managers to put formulated strategies into action.
Interpersonal skills are especially critical for successful strategy implementation.
Strategy implementation activities affect all employees and managers in an
organization. The challenge of implementation is to stimulate managers and
employees throughout an organization to work with pride and enthusiasm toward
achieving stated objectives.
3. Strategy Evaluation is the final stage in strategic management. Three fundamental
strategy evaluation activities are (1) reviewing external and internal factors that are
the bases for current strategies, (2) measuring performance, and (3) taking
corrective actions. Strategy Evaluation is needed because success today is no
guarantee of success tomorrow. Success always creates new and different problems;
complacent organizations experience demise.
1.3.1. The planning business strategy process

According to Fred R.David, the planning business strategy process includes three
(3) stages: Input, Combination and Decision.
Figure I-2: THE PLANNING BUSINESS STRATEGIC PROCESS
Stage 1: Input
EFE matrix evaluates
external elements
CPM evaluates
competitive environment
IFE matrix evaluates
internal elements
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1.3.1.1. Choose mission and vision
Many organizations today develop a vision statement that answers the
question "What do we want to become ?".
Developing a vision statement is often considered the first step in strategic
planning, preceding even development of a mission statement.
Mission statements are "Enduring statements of purpose that distinguish one
business from other similiar firms. A mission statement identifies the scope of
a firm‟s operations in product and market terms". It answers the question
"What is our business ?". A clear mission statement describes the values and
priorities of an organization. Developing a mission statement compels
strategists to think about the nature and scope of present operations and to
assess the potential attractiveness of future markets and activities. A mission
statement broadly charts the future direction of an organization.
1.3.1.2. Analyse external environment
The goal of analyzing external environment is development opportunities and
minimization threats. There are different factors from macro and micro

environment.
The macro environment :
 Economic;
 Political, Legal, Governmental;
 Cultural, Social;
 Geographical, Demographic.
 Technological;
 Global;
The micro environment: is a competitive environment or industry
Stage 2: Combination
SWOT matrix evaluates
strengths, weaknesses,
opportunities, threats.
SPACE matrix evaluates
strategic position and
action.
IE matrix: internal –
external
Stage 3 : Decision
QSPM plans strategies that can be quantified.
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environment. This environment associates with activities and competitions
firm directly.
Professor Micheal E.Porter, Havard University, United States of America,
developed business strategies. He proposed five forces model.
Figure I-3: COMPETITIVE FORCES OF MICHEAL E.PORTER

1.3.1.3. Analyse internal environment

Each enterprise has strengths, weaknesses. Strengths, weaknesses of internal
environment combine opportunities, threats of external environment is the
basis for establishing targets of enterprise. Factors of internal environment are:
 Finance;
 Management;
 Marketing;
 Human Resources;
 Operation Management.
1.3.2. Establish business strategy
Based on objectives, policies, employee motivation, resource allocation, external
and internal factors of enterprise to establish business strategy with the following
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steps:
 Identify and choose opportunities that help enterprise to get business
objectives.
 Choose target market.
 Choose products, services that supply target market.
 Establish marketing-mix strategies: product strategy, price strategy,
distribution strategy, promotion strategy, etc.
1.3.3. Solutions to do business strategies
To do business strategies that were established effectively, enterprises have to
have solutions in management, production, human resources, finance, culture,
etc. That is arrangement human resources resonably, scientifically to do selected
business strategies. It includes:
 Arrange framework of organization suitably.
 Assign, maintain, develop human resources suitably.
 Assign finance.
 Establish operation management model scientifically and effectively.

 Establish culture of enterprise.
1.3.4. Evaluate effects of business strategies
To evaluate business strategies of enterprise effectively, business strategies have
been proposed must be suitable for real situations of enterprise and development
of society. In the other hand, these busines strategies can salvage maximum
opportunities to get proposed targets. There are two steps in evaluating a business
strategy.
 Check suitability of business strategy before action.
 Evaluate business effect according to each stage when enterprise has applied
business strategies so that strategists discover mistakes, shortcomings. Since
then, they adjust, modify, supplement opportunely.
1.4. Choose strategic matrices
1.4.1. External Factor Evaluation (EFE) Matrix
Establishing External Factor Evaluation (EFE) Matrix will help enterprises to
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summarize and estimate opportunities, threats in business activities. As
establishing EFE Matrix, we list external factors which have affected to
production and business activities of enterprise. We evaluate important level of
each element by weighted scores. Total weighted scores of all elements are 1.
This classification shows respective importance of factors for enterprise‟s
success.
We evaluate the importance of each element by sorting elements from 1 to 4. At
level 4, the enterprise has the best response. Level 3 is above average. Level 2 is
average. Level 1 is lowest. These levels based on effects in implementation
strategies of enterprise.
Marks of the importance of each factor are calculated by multiplying important
level and corresponding marks of ranked classification. After that, we add
important marks for each variable to determine total important marks of the

enterprise. The highest mark is 4. The average mark is 2.5. The lowest mark is 1.
Getting 4 marks, the enterprise has been used and controlled external
opportunities well. With this mark, the enterprise can minimize external threats.
Otherwise, if total of important marks is 1, the enterprise doesn‟t catch
opportunities or minimise external threats.
Figure I-4: EXTERNAL FACTORS EVALUATION (EFE) MATRIX
External factors
Important level
Classification
Important marks
List external factors



-



Total




1.4.2. Internal Factor Evaluation (IFE) Matrix
Establishing Internal Factor Evaluation (IFE) Matrix will help enterprises to
summarize and evaluate important strengths, weaknesses of deparments. These
factors influence production and business activities of enterprise. As establishing
IFE Matrix, we list internal factors which have affected to production and
business activities of enterprise. We evaluate important level of each element by
weighted scores. Total weighted scores of all elements are 1. This classification

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shows respective importance of factors for enterprise‟s success.
We evaluate the importance of each element by sorting elements from 1 to 4. At
level 4, the enterprise has the best response. Level 3 is above average. Level 2 is
average. Level 1 is lowest. These levels based on effects in implementation
strategies of enterprise.
Marks of the importance of each factor are calculated by multiplying important
level and corresponding marks of ranked classification. After that, we add
important marks for each variable to determine total important marks of the
enterprise. The highest mark is 4. The average mark is 2.5. The lowest mark is 1.
Getting 4 marks, the enterprise has had strengths and weaknesses can be
overcome. Otherwise, if total of important marks is 1, the enterprise doesn‟t have
any strengths and weaknesses can‟t be overcome.
Figure I-5: INTERNAL FACTOR EVALUATION MATRIX
Internal factors
Important level
Classification
Important marks
List internal factors



-



Total

1.4.3. Competitive Profile Matrix
Establishing and evaluating Competitiev Profile Matrix (CPM) help enterprises
to identify competitors, strengths, weaknesses. Since then, enterprises have
suitable strategies in business.
Competitive Profile Matrix (CPM) has both internal and external factors which
have importance to success of enterprise. With Competitive Profile Matrix
(CPM), competitors are also examined and calculated important marks. After
that, we compare important marks among specimen enterprise and competitors.
From this result, we will have more information to establish suitable business
strategy for our enterprise.