X03[1].StrategicManagement.capstone.group6 v1

8/8/2019 X03[1].StrategicManagement.capstone.group6 v1

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Gamba01.X03

CAPSTONE PROJECTCAPSTONE PROJECTREPORTREPORT

Group 6:

Nguyen Tu Anh

Luong Minh Tuan

Tran Luu KienBui Huy Quang

Hanoi, January 2011


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TOPIC

Building and selecting strategy to developHanoi Western market of PetroVietnam

Finance Corporation Thang Long Branch(PVFC Thang Long) in 2011 2015 period

and vision to 2020

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Group 6

Contents

Conclusion of the thesis

CHAPTER 3: Development Strategy Toward HanoiWestern Market & Solutions for PVFC Thang Long

CHAPTER 2- Analyse Market Situation of PVFC

Thang Long

CHAPTER 1 Theoretical Base

Preface

3


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Group 6

CHAPTER1 THEORETICAL BASE

1.1.

STRATEGY

AND

MARKETINGSTRATEGY

THEORETICAL

BASE

1.2. PROCESS

OF BUILDING

STRATEGY

4


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1.1. STRATEGY AND MARKETING STRATEGY

So, what is strategy?Koontz, Ciril ODonnell and Heinz Weihrich, authors of the

book Essential of Management" defined strategy in three

ways as follows: Strategy is general action program on the deployment of

important resources to achieve comprehensive goals.

Strategy is an organizations program of goals and its

changes, resources and the arrangement to uses

resources to achieve goals and policies to distributeincome.

Strategy defines basic long-term targets of an

enterprises, selects orientation of operation and allocates

necessary resources.

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Group 66

Strategy?



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1.2. PROCESS OF BUILDING STRATEGY

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Vision/missionVision/mission

Building and selecting strategySWOT, GREAT model

External environment

analysis

1. Macro analysis

PEST/SLEPT model

2. Micro analysis

Mc. Portermodel

=> Competition pressure

in the sector

=>Opportunities and

threats

Internal environment analysis

Value chain model

Process of recognize sustainable

competitive edge

=>Strengths &Weaknesses

Functional strategyFunctional strategy

Business strategy/competitionBusiness strategy/competitionCorporate strategyCorporate strategy

Global strategyGlobal strategy

Implementing and adjusting

strategyMonitoring and evaluating the

strategy implementation

Suitable organizational structure

with selected strategy



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1.2. PROCESS OF BUILDING STRATEGY

Mission and vision

Objective of marketing strategy

External environment analysis Internal environment analysis

SWOT matrix

Strategy selection

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Macro environment analysis PEST model (Political Economic Social Technology)

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Analysis model of three-level internal andexternal environment

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Economics Politics

Law

Technology

International

environment

Culture

Society

Population

Labor

New

entrants

Suppliers Customers

Rivals Substituteproducts

Enterprise



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Group 611

Threat of new market entrants

Bargaining

power of

suppliers

Competitive

rivalry within an

industry

Bargaining power

of customers

Threat of substitute products

Five forces model of Michael E. Porter



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SWOT matrix

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SWOT matrix Opportunities (O)

1...

2...

3...

Threats (T)

1...

2...

3...

Strengths (S)

1...

2...

3...

SO strategy

This strategy uses

strengths of to utilize

external opportunities.

ST strategy

This strategy uses

strengths of to cope

and avoid external

threats.

Weaknesses (W)

1...

2...

3...

WO strategy

This strategy helps

overcome weaknesses

of enterprise to utilize

external opportunities

WT strategy

This strategy helps

overcome weaknesses

of enterprise to reduce

external threats.



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Strategy selectionThere are a lot of different business strategies;

generally, there are three basic approaches to

generating competitive edge, namely:

Cost-leadership strategy;

Product differentiation strategy;

Focus strategy.

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General view on PVFC PVFC was founded in June 19, 2000;

Charted capital: 5,000 billion VND

On March 18th 2008, PVFC officially became PetroVietnam

Joint Stock Finance Corporation. Types of products:

(1) Investment products:

(2) Corporate finance

(3) Personal finance

(4) Accumulating corporate capital and credit

(5) Monetary trading

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2.1. General view on PVFC


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The organizational structure of PVFC Thang Long

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DIRECTOR

DEPUTYDIRECTOR 1

General

coordination

department

DEPUTYDIRECTOR 2

Department

finance and

accounting

Credit

department

Department of

Risk assessment

and management

Investment

department

Transaction-

on office

2.2. The Process ofFormation andDevelopment ofPVFCThang Long


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Group 617

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

500

1000

1500

2000

2500

3000

2007 2008 2009

Diagram ofRevenue, Profit and the ratio ofProfit/Revenue ofPVFCThang Long in the period

of 2007 - 2009

Revenue (billion VND) Profit (billion VND) Ratio of Profit/Revenue (%)

2.2. The Process ofFormation andDevelopment ofPVFC (con.)


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Diagram of comparing revenue of products and services inOil and Gas industry (2009) in PVFC Thang Long and theoutside of the industry

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2.2. The Process ofFormation andDevelopment ofPVFCThang Long (con.)


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Diagram of revenue of main products and services ofPVFC Thang Long 2010 (estimation)

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Group 6

(2) Individual

customers

(3) Investment

operations

(1) Business

customers

- Credit

- Capitalarrangement

- Developing CDM

- Foreign

exchange trade.

- Capitalmobilization

- Period purchase

- Personal credit

-Supportive stock

business

- Project

investment

- Investing

mandate

- Bond professions

- Trading priced

certificates

20

(4) Other products and services

- Stock exchange floor

Main products and services



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2.3. Market and Market share Developmentsituation

PVFC Thang long and market on the West ofhanoi

PVFC is a finance company, so it is not allowed to

practice payment function.

-> PVFC will transfer the operation model into trading bank.

->PVFC and other subsidiaries will have opportunities to

carry out payment products and services for customers.

Therefore, the personal financial market on the

West of Hanoi is very important to PVFC ThangLong

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Group 622

COMPETITION in western market of Ha noi

TECKCOMBANK

AGRIBANK

VIETCOMBANK

VIETINBANK

BIDV

MHB BANK

Citi group

GP Morgan Chase

HSBC

Mitsubishi UFJ Financial

Group

Mizuho Financial Group

VIETNAMESE BANKS FOREIN BANKSPVFC

2.3. Market and Market share Developmentsituation (con.)


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The strategy on customers of PVFC Thang

Long

The enterprise customers

Customers for consultancy service Individual customers

The foreign customers

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2.3. Market and Market share Developmentsituation (con.)


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Summarize Chapter 2

Within the Chapter 2, Our group applies theoretical model studied in the strategic

management course to analyze business environment and

the characteristics of Hanoi Western market, focuses on

analyzing credit institutions in the area, work

force, competitiveness of PVFC Thang Long; and

Applies analysis of value chains of services and products of

branch PVFC PVFC Thang Long, as well as advantages

and disadvantages of work, in order to give solutions to

development strategy toward Hanoi Westernmarket, which will be mentioned in Chapter 3.

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Group 625

CHAPTER 3

DEVELOPMENT STRATEGY TOWARD HA NOI

WESTERN MARKET AND SOLUTIONS FOR

PVFC THANG LONG


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CHAPTER3-

3.1. Development Target of Petrovietnam Finance3.2. Development Orientation for PVFC Thang Long by

2015

3.3. Options in Market Development Strategy of PVFC

Thang Long3.4. Solutions

3.5. Suggest some supporting solutions

3.6. Limitations of report and the next researching

orientation

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PVFC orients to develop in the periodfrom 2007 to 2011:

Develop product and service

Personnel

Management

Brand development marketing solutions

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3.1 DEVELOPMENT TARGET OF PETROVIENAM FINANCE

CORPORATION BY 2015 AND ORIENTATION TO 2025


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3.3. OPTIONS IN MARKET DEVELOPMENTSTRATEGY OFPVFCTHANG LONG

Some main reasons to select westernmarket of Ha Noi

The place of the head office of PVFC Thang Long lies

in the dynamic area in the West of Hanoi

Select the market in Ha Noi West area basing onSWOT model

Marketing development strategy based on economic

environment

Brand development strategy

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SELECTED STRATEGY

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Create values for customers

Leading banking technology

Different products/product set

Focusing on the humance resourse

3.3. OPTIONS IN MARKET DEVELOPMENTSTRATEGY OFPVFCTHANG LONG (con.)


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3.4. SOLUTIONS

The solutions for the strategy 1 Thestrategy of the focus

The practical methods possibly coming to real

are:

Increase income from services.

Approach the customers who gain high and

stable income, connect them to the effective

invested projects in progress.

Diversify products, prepare necessary conditionsto control market share of individual finance.

Focus on develop personnel with higher quality

.

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3.4. SOLUTIONS (con.)

The solutions for strategy 2 Thestrategy of distinction

All the operations of PVFC Thang Long have

to aim to the distinction from other credit

organizations:

The products of PVFC Thang Long have to

include three contents:

Create values for customers, Provide sensible values,

Difficult to imitate.

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3.4. SOLUTIONS (con.)

Breakthrough solutions Some main solutions as follows:

Increase to perform package products

Concentrate on investing in projects which are safe and have

high economic efficiency in the industry ofpetroleum, energy, high-grade tourism, real

estate, banking, stock;

Provide consultancy service M&A; take part in this operation

directly;

Develop high-grade products for VIP customers;

Develop products and services on the bases of advanced

information technology;

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3.5. SUGGEST SOME SUPPORTING SOLUTIONS

Toward PVFC Support PVFC Thang Long to resolve fully unpaid

debts

Support the branch with a risk warning system;

Enhance capacity of management according tointernational standard.

Standardize organizational structure following

international practice, which concentrative aims to

customers. Renovate management structure following

international standard.

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CONCLUSION

Within the scale of the thesis with topic, group 6have resolved following issues:

Systematize theoretic issues relating to market development

in financial companies and here is PetroVietnam Finance

Corporation Thang Long branch.

Analyze the situation of developing products and

services, market; assess the condition of business and take

them as bases to expand Ha Noi Western market.

Suggest some solutions to enterprises as well as ideas about

policy aiming to develop Ha Noi Western market in the plan

of PVFC Thang Long.

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X03[1].StrategicManagement.capstone.group6 v1