Strategic plan of the academy of finance (AOF) center for foreign languages, hanoi, vietnam for the years 2013 2017

STRATEGIC PLAN OF THE ACADEMY OF FINANCE (AOF) CENTER
FOR FOREIGN LANGUAGES, HANOI, VIET NAM FOR THE YEARS
2013-2017
I. Brief history of AOF and CFL
Academy of Finance – the former name is Hanoi University of Finance and Accounting – was
founded in 1963, located in Phuc Yen district, Vinh Yen province, 30 km away from Hanoi. The
school primarily specialized in providing graduates and post graduates of finance and accounting
for Vietnam, Laos and Cambodia. AOF was founded according to Decision 120/2001 QD/TTg
dated August 17th 2001. AOF is a merger between Hanoi University of Finance and Accounting,
Institute of Finance Research – IFR, (established in 1963) and Improvement Center for Financial
Officers. However, IFR and the Improvement Center are two legal entities. The activities of
HUFA are now directly under the control of AOF.
As a state owned institution, administrators usually come from in-house staff and teachers and
most of them go after their promotion while only few quit or are sacked. Most of presidents also
come from in-house administrators till their retirement or outside promotion. Overall, AOF’s
people are almost the same except for the retired and the newly recruited. They saw the growth
of the school: from a humble 523 students in 1963 to an overflowing number of 7,375 students in
2012. The increase in population has been a witness for the quality education that the school has
delivered over the past 49 years.
CFL was established by the Director of Academy of Finance in 2010 with the aim of providing
AOF students with English proficiency to better meet the market’s needs. CFL has served 300
learners.
II. Overall performance
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CFL has enrolled only 300 out of about 7,375 students. This is a relatively small number.
Learners sat in the TOEIC exam on May 20th 2012 and one third has got TOEIC 450 and higher.
CFL has one manager who majored in Accounting and 5 staff none of who specialize in English.
2.1. Major concerns:
There are three major concerns of the center. First is the size of enrollment. CFL is aimed at

providing AOF students with a certificate of 450 TOEIC through English courses at AOF
campus. At present, CFL has served only 300 learners out of about 2000 students who are
required to obtain 450 TOEIC within the school year 2013 – 2014. Second is teacher
collaboration. CFL has hired 50% of teachers from outside FFL, AOF and the rest from FFL,
AOF. This has raised some difficulties in managing some academic issues. Third concern is the
building of qualified workforce.
2.2. Institutional Activities
Overview: Institutional activities are divided into two categories: Major activities and Support
activities. Major activities of the school/ language center include logistics, operations, marketing
and sales. Support activities are procurement, technology development, human resource
management and infrastructure. Identifying the key elements in the activities of the language
center is important in order to surface the different strengths and weaknesses of the institution.
Strategy for the institution will be generated from these.
2.3. Evaluation of institutional activities
Logistics
The Center has a strength of customized courses for AOF learners, while it suffers some
weaknesses such as: difficulties for learners and teachers due to the insufficient classroom
facilities; not enough investment in technology in teaching force; open on Sunday evenings due

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to shortage of teachers; not enough attention to upgrading of academic curriculum; and low
enrollment.
Operations
The Center’s strengths are strong awareness of teaching methods; strong emphasis on the
importance of faculty members; and its weaknesses are very limited programs where students
exposure in the actual practice of their courses; limited revenue generation; bad financial
situation; low faculty loyalty; low investments in HR; low teacher collaboration.
Marketing and sales

Large budget and reasonable tuition fees are strengths of the Center and its weaknesses are no
promotion programs to attract a large number of AOF students; no contact with AOF teachers;
no campaign and recruitment medium; and not active website.
Services
The Center has no strength but some weaknesses such as no scholarship program for poor but
deserving students; not good coordination of different student organizations; no alumni
activities; and poor supports from staff.
Infrastructure
In-house promotion for Vice Director and Director, and other senior positions is the good point
in the Center but there is no academic manager; None of the center member majors in English;
and promotion regardless the employees’ opinions.
Human Resource Management
The Center has a high profile of teachers and strong staff loyalty as evidence by the low turnover
rate. Its weaknesses are low faculty loyalty; weak recruitment, hiring and employment policy.
The process is not stringent enough in order to get the best and qualified faculty; compensation

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scheme does not emphasize the efficiency; no policy for performance appraisal; no policy to
encourage teachers to acquire their masters or doctorate degrees.
III. Proposed strategic plan

objectives
1. To prepare
AOF students
with English
proficiency

2. To enhance

welfare and
competence of
teaching and
non-teaching
employees

3. To enrich
curriculum and
course
offerings

key result areas
1. Exam results
2. Placement of
graduates

1. Percentage of
MBA’s, MA’s
and PhD’s
2. Faculty
Development
Program
3. Staff
Development
Program
4. Compensation
1. Enrollment
market share

2. Curriculum

development

4. To
modernize
facilities

1. Investment in
renovation

past performance
indicators
1. Worse than its
competitors
2. No career
placement for
graduates
3. Decreasing
satisfaction from
employers
1. 26% Bachelor,
53% Masteral, 21%
Doctorate
2. 5 seminars and
workshops per year,
1 time per 5 years
per faculty
3. 3 seminars and
workshops per year,
1 time per 3 years
per staff

1. No.1 in English
for Accounting and
Finance

2. Decided by
academicians

1. 21% of
classrooms are
equipped with
computers and
projectors; Each unit
under department

proposed
performance
indicators
1. Reach the
bench- mark
2. Enroll 50% of
AOF students
3. No need of
retraining
graduates
1. 10% Bachelor,
55% Master, 35%
Doctorate by 2015
2. 5 seminars and
workshops per year
per person

time frame

1. before 2016
2. before 2016 –
continuing
activity
3. by 2016
1. beginning in
Sept of 20014 –
2020
2. 2014 –
continuing
activity

3. 3 seminars and
3. 2014 –
workshops per year continuing
per person
activity
1. No.1 in English
for Accounting and
Finance and
TOEIC
2. Decided by
academicians and
industry
practitioners

1. 100% classroom

is equipped with
computers and
projectors; Each
unit under
department is

1. 2014 –
continuing
activity; except
for English for
Acc. & Finance
course: 2020 –
continuing
activity
2. by 2015 – once
every 2 years
activity
1. before 2020

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5. To improve
financial
stability

1. Liquidity
2. Revenues

has one computer

1. No debt
2. Revenues from
state budget

provided internet.
1. No debt
2. Additional
revenues

2014 – continuing
activiy

SWOT matrix
External
Opportunities
Factors 1. Demand of Business and
Industry for quality workforce
2. Positive culture for
education
3. Government support for
education
Internal
4. Growing population for the
Factors
next five years
Strengths
S.O. Strategic Options
1. Strong staff loyalty
How can AOF utilize its
2. Convenient location

strengths to exploit the
3. AOF’s strong financial opportunities it faces?
support
1. Re-engineer focus of
4. AOF’s familiar students
vision-mission to learning as a
product where students and
employers as the customers.
S1, S2, S3, O1, O2, O3, O4, O5.
2. Strengthen staff loyalty. S1,
S2, S3, O1, O2, O5.
3. Implement stringent hiring
policy. S3, O1, O4.
4. Strengthen policy for poor
but deserving students. S4, O2,
O4.

Weaknesses
1. Marketing and Sales
2. Weak faculty collocation
3. Insufficient facilities
4. Poor academic management
5. Poor admin support
6. Loose hiring process

W.O. Strategic Options
How can AOF overcome its
weaknesses in order to exploit
the opportunities?
1. Build corporate image/

center image to attract
learners. W1, W2, W5, O1.
2.
Intensify
recruitment
program. W3, W6, O2, O3, O5.
3. Offer courses responsive to
demands of the economy. W2,

Threats
1. Government regulations
2. Difficulty in forecasting the
need of the society
3. Competition from private
educational institutions

S.T. Strategic Options
How can AOF utilize its
strengths to ward off threats?
1. Strengthen staff loyalty to
retain qualified people. S1, S2,
T1.
2. Strengthen policy to attract
master’s and doctorate degree
holders to be a faculty. S1, S2,
T1, T3.
4. Introduce scholarships
programs
to
poor

but
deserving students. S3, S4, T1,
T3.
5. Introduce short courses and
seminars and workshop on
English for accounting and
finance issues. S4, T2, T3.
W.T. Strategic Options
How can AOF overcome its
weaknesses to ward off
threats?
1. Build up relationship with
FFL and other language
centers in the area. W1, W2,
W3, W4, T2.
2. Implement guest-teacher
program with FFL. W3, W4,
W6, T1.
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W4, O5.

The Strengths and Weaknesses, Opportunities and Threats Matrix which is the evaluation of the
strengths and weaknesses of the school fitted to the opportunities and threats identified in Part I
draw the different strategic options enumerated in the table above.
3.1. Comparison with the current strategy
Functional areas

Changes

Organizational

1. involving the all stakeholders of the school and center

Strategy

2. getting all the school’s people committed to the vision-mission
statement

HRM strategy

1. incorporating both theory and practice in faculty and staff
development program with priority of faculty over staff
2. aggressive and active recruitment strategies
3. efficiency of the employees being considered in compensation and
benefit scheme

Operations Strategy

1. involvement of FFL and AOF key persons in curriculum
development
2. applying learner-centered teaching method more intensively and
improving the traditional methods
3. implementing Customer Relationship Management program
4. new short course offerings
5. establishment of Quality Control Unit

Marketing Strategy

1. creating the position of Marketing and Recruitment Officer
2. implementing direct marketing activities: FFL teachers can be a
good influence.

Financial Strategy

source additional revenues

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3.2. Management of changes
Strategic plan for CFL to manage above-mentioned changes is in Organization, HRM,
Operations, Marketing and Finance.
In HRM Strategy, Faculty Development Guidelines and Staff Development should be
implemented. General Recruitment Guidelines for Staff and Faculty is also important.
Position description and announcement, Recruitment strategies, Recruitment Advertising Plan
are to help increase the quality of the Center’s workforce. Compensation and Benefits should
also be the key area to encourage staff and teachers to work effectively and creatively.
In Operations Strategy, Curriculum Development, Teaching Method, Customer
Relationship Management – CRM and Short course offerings are key areas in operations to
improve the Center performance.

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