Xây dựng và phát triển chiến lược kinh doanh bán lẻ tại ngân hàng BIDV giai đoạn 2015 2020

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Xây dựng và phát triển chiến lược kinh doanh bán lẻ tại ngân hàng BIDV giai đoạn 2015 2020

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LUẬN VĂN THẠC SĨ Xây dựng phát triển chiến lược kinh doanh bán lẻ ngân hàng BIDV giai đoạn 2015-2020 THESIS MBA BUILDING A STRATEGY FOR DEVELOPMENT OF RETAIL BANKING BUSINESS AT BIDV PERIOD 2015 TO 2020 INTRODUCTION Providing personal financial services or retail banking (RB) business is one of the traditional activities to form the world commercial banking system Since its formation until now, RB has played an important role to create sustainable development for commercial banks RB is less affected by economic cycles It scatters risks and contributes to create capital and stable income for the banks In addition, the retail banking’s actvities play an important role for expanding the market, increasing the competitive capabilities and stability of the bank’s performance This role has been shown clearly in the recent world economic crisis Almost all commercial banks which had strategy focusing on RB have survived while the big investment banks were bankrupted such as: Merrill Lynch, Lemon Brothers or felt into difficulties and also shifted to the RB field Therefore, the trend today of commercial banks in the world is development of RB In Vietnam, stable politial and social enviroment, growing economy, large population, living standard is more and more improved, the consumer trend and service usage are more and more increasing, the development of the personal financial services is still low… which all make the retail banking market be considered as having great potential and opportunities for development for domestic and foreign commercial banks With the process of economic integration to the world, banks in Vietnam now is facing the RB development requirements to meet the demand, being under competitive pressure not only of the domestic banks, but also of foreign banks operating in the country Besides tradition, experience and strengths in corporate banking, the RB business of BDIV is until now mostly spontaneous, without strategic plan Under the intensifying pressure of competition and international integration, BIDV needs to have a strategy for development of RB, making this activity become one of the core activities of the bank in order to help the bank keep its competitive capability and sustainable development Because of these reason, we chose the topic "BUILDING A STRATEGY FOR DEVELOPMENT OF RETAIL BANKING BUSINESS AT BIDV PERIOD 2015 TO 2020" This is a highly practical topic, contributing to meet the needs of business and development of BIDV in the future Besides significant importance for the bank, studying this topic will also help the team members to apply the learned knowledge into real business, thus enriching and to improving knowledge about business administration in career development Research purpose: - To review the scientific approach to building strategies of a business in general and in banking field - To investigate the current situation of RB at BIDV, identifying strengths, weaknesses, opportunities and challenges - To build an appropriate strategy for the bank in period 2010-2015 - To propose implementation of the chosen strategy to achieve the objectives of BIDV Research Methodology: - Studying theoretical basis for building of strategies for the general business, bank and RB - Investigation, practical survey in the Head office and some branches of BIDV Data about the activities of the business is gathered from the bank internal reports - Internal and external analysis - Analysis of the data and building strategies, using some tools as BCG, SWOT Matrix and the theory of the competitive forces by Michael E Porter Structure of the article: Chapter 1: Theoretical basis about strategic management in general business, banking and the retail banking field Chapter 2: Analysis the current situation of retail banking business at BIDV Chapter 3: Proposing strategies for development of retail banking business at BIDV period 2010 - 2015, the solutions, recommendations and conclusions CHAPTER I THEORETICAL BASIS OF STRATEGIC MANAGEMENT IN GENERAL BUSINESS, BANKING AND RETAIL BANKING FIELD 1.1 BASIC ISSUES OF BUSINESS STRATEGY 1.1.1 The concept of business strategy There are many different definitions about business strategy, each definition is more or less depending on the viewpoints of each author [3, 4, 6, 11] Alain Threlart said: "Strategy is the art that businesses use to compete and gains victories" According to M Porter: "Strategy is the art of building the competitive advantages for defensing" According to the united point of view : "Business strategy is the art of coordinating activities and controls them in order to achieve long-term goals of the business" In 1980, Quinn gave a more general definition: "Strategy is a pattern or plan to integrate the major objectives, policies and action sequences into a closely cohensive entity" Mintzberg defined the general strategy with 5P: Plan: The sequence of actions intended consistently Pattern: The time consistent behavior, intended or not Position: The match between the organization and its environment Perspective: the way for perception of the world Ploy: The concrete way to defeat the competitor By Charles W.L.Hill and Gareth R Jones: "Business strategy is a process of identifying the basic and long - term goals of business, choosing the way or action method and allocation of resources to achieve the goals" According to Fred R David [4], "Business strategy is the means to achieve longterm goals” By William J.Glueck, "Business strategy is a plan with united, comprehensive and cooperative features which is designed to ensure that the basic goals of the business will be achieved” From the mentioned above definitions, we can generally define business strategy as the following: "Business strategy is a general long-term plan or a general action program in order to exploit the resources to achieve the objectives of the company, ensuring conformity with the change of environment" With the birth of the concept of business strategy, the concept of strategic management in business has also been introduced By Fred R David: "Strategic management can be defined as an art and science for establishment, implementation and evaluation of decisions related to many functions allows an organization to achieve its objectives" By John Pearce II and Richard B Robinson: "Strategic management is a system of decisions and actions to form and perform plans to achieve the objectives of the company Therefore, strategic management, like any other management process, consists of planning, organizing the implementation and supervise the implementation Object of management here is the impact of the environment (the uncertainties, and opportunities) and the way businesses respond to the impact of the environment (by the efforts of all units of the business) In other words, strategic management includes synthezising of planning activities, organization for implementation and check, adjustment business strategies to ensure that company always seizes the opportunities and limits or avoids the threats, the risk in the way to achieve its goals Development of strategic vision and mission Correction if necessary Establishment of objectives Correction if necessary Building of the strategies to achieve the objectives Implement ation and direction of the sellected strategies Improvement/ change If necessary Improvement/ change If necessary Evaluation implementation monitoring, correction adjustment Recover 1,2,3,4 If necessary Figure 1.1: Strategic management Strategic management is the process of studying the present and future environment, defining the objectives of the organization; decision making, performing and supervising the implementation of the decisions to achieve those objectives in current or future environment to enhance competitive capabilities and position of the enterprise Strategic management consists of tasks with close relationship and mutual impact as shown in figure 1.1 [6] - Creation of a strategic vision: Description of the future image of the company, showing clearly the goal a company wants to achieve - Formulation of the goals: Conversion of the strategic vision into the specific results of performance which the company must achieve - Building a strategy to achieve the desired goals - Implementation and direction the selected strategies effectively and efficiently - Evaluattion the implementation and adjustment of the strategic vision, long-term objectives, strategies, experiences and opportunities 1.1.2 The benefits and the role of strategic management Strategic management helps companies to seize and take advantage of business opportunities and simultaneously to take measures to overcome the risks and threats, to contribute to enhance the efficiency of using resources, to increase competitive capabilities of enterprises for ensuring sustainable development Strategic management creates the solid bases for setting out the policies and decisions on production and business activities in accordance to the fluctuation of the market On the competition aspects, the core capabilities which make the difference and create certain advantages should be used Such capabilities consist of the knowledge, skills, technologies and special resources for an organization to differentiate itself from the competitors and create competitive advantages Strategic management process helps companies to see clearly their purpose and direction Awareness of desired results and future goals will help leaders and employees to realize what to to achieve success Environmental conditions that organizations face are fast-changing and can create surprises Management strategies help managers to see the environment in the future, so they can control it better and utilize the opportunities and avoid or reduce the risks Strategic management helps managers to use effectively the available resources of the company and allocate them rationally It helps companies to make decisions in accordance to environmental conditions In addition, strategic management engages managers at all levels in the organization and creates resonance to achieve common goals of the company 1.2 STRATEGIC MANAGEMENT IN BANKING 1.2.1 The Concepts of Bank and Retail Banking 1.2.1.1 The concept of bank: According to the functions (services and roles) the bank performs in the economy, the bank is considered as a financial intermediate organization that accepts deposits, gives credits and performs business acivities with currencies and banking services The most common activities are accepting deposits, using that money to give credit, providing payment services The main characteristics of banking activity: • The bank mobilizes the idle capital of organizations and population, using that money for lending (so using not-own money to give credit) to other organization or people, thus creating both subjective and objective risk This is a sensitive area, relating directly to all sectors and all aspects of social economic life • Financial asset: highly profitable but it is influenced by factors as interest rate, inflation so banks face many risks • Providing other services to the economy: The large scale of a bank can create good relationship between the bank and its customers • Risk for banks is the relationship between banks and customers • Bank’s goods are money Compared to conventional goods, money value is fluctuating quickly by influence of inflation, exchange rates, interest rate Money is considered as special good which a state uses to manage the macroeconomics Money could influece development or degradation the economy of a country, therefore it is controlled strictly by the government 1.2.1.2 The concept of retail banking service: According to WTO, retail banking is a typical type of banking service Retail bank is a place where individual customers can come to carry out such activities as making deposit, loan, payment, checking accounts and card services For commercial banks, retail banking services play an important role to enhance competitive capability and expand market share, to bring stable revenues and contribute to create the quality of the banking busisness In addition, it creates opportunities to diversify non-banking products and services, cross-selling opportunities for individuals and small businesses According to economic experts of Asian Techonology Institute, retail banking are services providing products -services to individuals, households, small and medium businesses through a network of branches Customers can also have direct access to banking products and services through telecommunication and information technology Thus, in general, the retail banking is services providing financial products and services to customers who are individuals, households, small and medium enterprises 1.2.1.3 Characteristics of retail banking services: Object customers of the retail banking services are extremely large but the value of each transaction is not high Retail banking products are both debit assets and curent assets (saving assets, current accounts, bill payment, debit and credit cards, consumer loans, ) The development of retail banking services depends on the information technology level of the economics in general and the bank in particular In addition, one of the success factors of the retail banking service is distribution channels 1.2.1.4 The role of retail banking services: - For the economy: The retail banking services directly change a cash economy into a non-cash economy, raising the efficiency of state management, reducing social cost in payment and exchange in cash In addition, through retail banking services, the process of currency flow is strengthening and more effective, the capital potentials are utilized and exploited better to promote business, production and consumption, improving the lives of people Banking services are connected closely to the social life Therefore, enhancing of the capital flow and stability of the financial system they contribute to ensure the effectiveness of the state’s macro- management of the economy - For bank: RB diversifies products and provides a stable source of revenue for banks, create a foundation for sustainable development for commercial banks The retail banking operations contribute to create stable capital and income for the banks, scatter the risk and are less affected by economic cycles In addition, the retail banking operations contribute importantly to expanding market, improve competitive capability and operation stability of the bank - For customers: RB provides a variety of products, convenience, safety, saves costs and time for customers 1.2.2 The role of strategic management in banking To be able to exist and develop, a bank must have right business orientation Strategic management helps banks to get right business orientation in the short, medium and long terms Strategic management helps banks to adapt to the changing business environment, highly risky and sensitive field of business Strategic management also helps the bank to improve management ability, development in the business environment in order to take the opportunities and cope with challenges, to exploit and use resources in a bank rationally and efficiently Resources of the bank consist of human resources, organization and facilities, techniques In the banking activities, building and implementation a strategy are extremly important Management of the bank directly impacts the bank performance and even the value of that bank in the market In the macro level, banking management affects risk-taking capacity of banks and is a measure for the adaptable ability of banks to pressure of the economy In the global trend and international integration, requirement of strategic management will be more intensified for the domestic banks It is not only for resistance of competition but also for the stable interaction of the inter-bank market A bank with weaknesses in management will not only cause losses to the bank, but also creates certain risks with chain character for other banks, affecting the economy and impacting on effectiveness of the state’s macro-regulatory policies So the strategic management in banking is very important, especially the stage of objectives definition, selection of the most appropriate plan, ensure both compliance to the macro monetary policy and profitability, lowering the risk level There are strong relationship between a bank’s strategic management and its performance [9, 18 , 21, 24, 27], as top bank performers usually has best strategies, developed for years [25] 10 3.1.2 SWOT matrix SWOT matrix can be another useful instrument for building strategies (table 3.1) Various strategies at different levels could be proposed Table 3.1: SWOT matrix for BIDV in retail business Internal factors External factors Opportunities: RB market in the stage of growing, huge potential for development Economic growth High rate of income growth and consumption Quick development of ITT Trend to use more RB services Improved legal system Favorable demographic factors for RB Political stability Some privilege given by government Strength: Bank brand name Large scale: second biggest Strong business partnership Stable financial capability Large branch network Initial modern organization Good basic IT infrastructure Large card acceptance network Large number customer 10 Good leadership determination for RB Weakness: Lack of good staff for RB Strategies for RB: still in building process Some technology problems Products/services not diversified enough, quality is not stable Weak international card service Marketing problems Problems in HRM Habit of focusing on wholesale business Weak customer relationship management for RB 10 Weak risk management Strategies (using the strength to take the opportunities): - Strategy for market development and expansion, using advantage of good brand name, large scale and large branch network - Strategies of retain the current customers and using them as an advertizing channel for acquisition of new ones - Strategy of development some products and services for different branches according to Strategies (using opportunities to overcome weakness): - Strategies of using development of ITT as leverage for improvement management, development of modern RB products and services - Strategies in HRM: recruiting new young staff and training - Strategies in marketing: segmentation of market and group customers and development products and services accordingly - strategy of creating business 55 International integration in banking: more markets 10 Increasing need for modern banking service due to globalization regional demographic factors Threats: Consumer habit incash Informal finance system World crisis still affecting Government regulation rigid Threat of not catching up high-tech development High tech crime Competition from other banks, including foreign ones Low efficiency Some potential markets for RB are highly speculative in Vietnam 10 Increasing demand on better services and products Strategies (using the strength to avoid the threats): - Strategies of large scale marketing for services without cash - Strategy for risk management - Competitive strategies using large scale advantage: mixed approach: minimizing cost, differentiation and specialization - Strategies of investment and development of ITT alliance to develop international service Strategies (minimizing the weakness and avoiding the threats): - Functional strategies: Improvement of management, - Improvement of technical infrastructure, HRM, marketing activities 3.2 PROPOSING STRATEGIES 3.2.1 General strategy (at corporate level) Based on the analyses above, BIDV could choose to develop retail banking in Vietnamese market and should allocate adequate resource for its management and development Development of RB business at BIDV is in tune with the vision and mission of BIDV As mentioned before, BIDV vision is to become a leading finance-bank corporation with multi-sector business, including retail banking RB would play an important role not only as a profitable SBU, but also in processs of building BIDV image and brand name as a universal Finane–Bank Corporation which is able to meet the demand of all kinds of customer 56 Development of RB would not decrease the traditional value of BIDV as a one of the biggest wholesale bank BIDV will continue and develop its activities of giving credits to big companies and state projects Better mobilization of individual capital from population, one of main RB activities, will also create more capital for BIDV so it could perform better wholesale banking Further more, BIDV could cooperate with big corporations and companies, which it has already had wholesale business relationship with, to acquisite their staff as potential customers for the RB busisness such as savings, salary payment, bill payment service, home-related credit… Therefore, formulating and implementing appropriate strategies, BIDV could developed both wholesale business and RB in the same time Because the retail banking industry is in the growing stage, strategies for development should be built BIDV could use developments strategies like market expansion, products development; strategic partnership with other banks or corporations for development of cross-selling products; acquisition of other banks after privatization could be considered Objectives in retail banking field: • Market positioning: - BIDV will become a leading commercial bank in Vietnam's retail banking sector, equal to the level of the regional banks, with largest retail branch network in the country, providing comprehensive diversified products and services with best quality satisfying the target customer segments - The market share and scale of retail banking: among top in Vietnam • Performance - The retail basic customers to accounts for 5% of the population (about 4.8 million customers) in 2012 and accounts for 8% of Vietnam's population (about 7,3 million customers) in 2015 - Performance efficiency: To increase the proportion of net income from retail operations of the bank's total income, reaching 15% in 2012 and 19% in 2015 57 - Growth capital mobilization from population average 32% per year from 2010-2012, 31% from 2013-2015 Deposit balance of population reached about 180.680 billion at the end of 2012 and 408.700 billion at the end of 2015 - Growth of outstanding retail credit debt average 35% per year from 20102012, 34% from 2013-2015 Outstanding retail credit debt reached about 36.500 billion at the end of 2012 and 124.300 billion at the end of 2015 - Growth of number of the cards issued an average of 39% per year from 2010 to 2012, 25% from 2013 to 2015, reaching about 5,6 million cards issued in late 2012 and 11 million cards in 2015 - Growth of customer base 20% per year, with target 4,8 million customers by the end of 2012 and 7,3 million customers by the end of 2015 - Bad credit debt lower than the average of the whole sector and under 2.5% - The proportion of population capital mobilization/ Total Capital mobilization reached 39% at the end of 2012 and 45% at the end of 2015; - The proportion of outstanding retail credit debt / total outstanding credit debt reached 14% at the end of 2012 and 18% at the end of 2015; - Growth of income from retail operations average 55% per year from 2010 to 2012 and 36% per year in 2013-2015; - The proportion of income from retail operations / Total income business 15% at the end of 2012 and 19% at the end of 2015; 3.2.2 Competitive strategies (at business unit) Based on strength points of brand name value, large scale, financial capabilities, large branch network, retail banking business - SBU of BIDV could use integrated approach to develop competitive strategies at business unit: cost leadership (lowest or best price according to quality), differentiation and focus (segmentation) For common products as savings accounts, BIDV should offer the best price accordingly to quality (possibly among the banks with highest interest rate for 58 savings) The cost effectiveness in retail banking could be results from the large scale of BID, good operational management and be supported by better fuctional strategies Because of large branch nework, BIDV should develop further the service of salary and bill payments, money transfer, card service… at possibly lowest fee Attrative low interest of some credit products should also be developed At the same time, BIDV should continue to consolidate and develop further its strong position in the market of valuable papers as a compettitive differentiated product Differentiation strategies should be applied for other potential products as well, for example some credit for small family business or SME Focusing strategies or segmentation of the market should be of consideration according to customer, geographic location… and should be supported by functional strategies, especially in marketing BIDV should build and develop a list of diversified products, with a flexible price policy and costs to meet the needs of different customers but in each specific period In competition with other domestic banks in the field of RB, BIDV should use its advantages as mentioned above, namely: prestigious and stable brand name, larger scale with widespread all over the country branch network, better financial capability, developed already relationship with many organization and big corporations…Larger scale would make BIDV more cost effective Better financial capability would give BIDV stability and help BIDV to invest more in ITT so ITT could be a lever to improve the bank performance and move BIDV ahead of the competitors Partnership with many big corporations and organizations could help BIDV to gain more customers for RB as mentioned before, compared to other domestic banks… Competition with foreign banks in Vietnam will be difficult because of their advanced technology and management, better service, financial strength Fortunately, the foreign banks in Vietnam are still with smaller branch network compared to BIDV and their RB customer basis is still limited, mainly high income 59 people in big cities The language and culture barriers are also disadvantadges for them They not have such multiple relationship and partnership as BIDV does Furthermore, they may not have such flexible policy in giving credit for regular customers as Vietnamese banks…BIDV shoud use its advantages in those fields to compete with the foreign banks In the same time, implementation of good fuctional strategies to improve HRM, marketing, operational management, services…should be of utmost importance 3.2.3 Strategies at functional level 3.2.3.1 In operational management: - Strong and deep renovation, creating consensus, unity in the system of development orientation, the direction of management RB - Defining the structure, the limit specified in the business management to ensure achievement of the development goals and safety in performance - Construction and standardization institutions, statutes, regulations and business management activities in RB close to international practices and toward target customer - Promoting the R&D activities and exploiting information for management and administration - Perfecting the organizational model of management and RB operations: consolidating the directing role of the Head Office and setting the branches to be professional selling organzation with independent specialized customer relationship management units, transaction office and supporting units 3.2.3.2 In human resource management: Building and developing human resource for the professional retail work with high quality (recognition about vision, professional qualifications, working and comunication style), stability, to ensure the effectiveness of retailing bank activities, maximizing the value of human resources and maintain the competitive advantage 60  Some measures to develop human resources in the retail sector: - Systemic training, using suitable staff (right person, right job), rotation of cadres to find appropriate working position in accordance with professional capabilities; stimulating the spirit of creativity of the staff - Attractive policy on recruitment, training, motivation to retain and develop qualitfied staff - For recruitment: Regular recruitment from outside to ensure a smooth operating process - For education, training: Identification of educational subjects and building of training contents + At the Head office: educating RB business knowlesdge and skills to design and develope services/products, in management and implementation of products/services through a network of branches and other sales channels In addition, management of customer relationship in RB should be trained, + At the branches: Regularly training staff on RB products and services, processes, customer relationship management Periodically BIDV should oganize the training in selling skills at each levels: staff relations and customer CRM and FA personal financial consultant, staff to welcome customers CSR, personnel services, customer teller service, including: communication skills with customers, introduce, sell retail products, develop and maintain relationships with customers 3.2.3.3 In technological development: BIDV must determine technology as a key factor, basic element of the retail banking activities, the basis for developing of new modern products according to general trend of the market, increasing competitiveness and supporting management - Improvement, upgrading and enlargement of the current ATM systemt 61 - Investment focussing on new technologies to develop new products / services, new distribution channels (ATM, POS, IB / MB) on the modern banking technological basis toward standardized products / services according to international practices, automatization of processes to improve performance - Investment in development of software programs for new product (for electronic chip card technology and contactless cards, for Internet banking, mobile banking, new card services…) and for customer relationship management, for surveillance of business activities… - Development of activities support and strengthen of the security of information technology 3.2.3.4 In marketing: a Target customers and target market: - Segmentation of market according to different criteria to build suitable policies for products, price, distribution and promotion to enlarge the target customer basis and maximize customer value Customers of BIDV are classified in groups according a pyramide model (Figure 3.2) Figure 3.2: Customer segmentation for BIDV 62 Determining the period 2010 - 2012 as the period for BIDV to dominate the market, expand market share, customers could be segmented in three groups: + Group (Group customers VIP): deposit balance of more than 500 million or more loan balance billion USD + Group (The middle class customers): deposit balance from 100 millions to 500 millions or loan balances from 300 millions to under billion VND + Group (The universal customer): the remaining - The target customers for RB of BIDV will be: + Residential customers: citizens with stable income, working in state enterprises, big firms, foreign companies); group of young customers 18-45 years of age (white collar workers, students); group customer with high income (businessmen, managers, people in high ranking post) + Family with small business and SME in the field of investment, trade, production, manufacturing, export-import - The target market accordin g to geographic location: + With priority for development: big cities like Hanoi, Ho Chi Minh, Da Nang, Hai Phong + With potential development: Quang Ninh, Bac Ninh, Hai Duong, Vinh Phuc, Hung Yen… - For each product / service, depending on specific characteristics, combined with customer segmentation by factors like region, occupation, age, education level a specific policy of distribution, price should be tailored to satisfy the customer - Building point score systems for classification of customer and information database (supported by IT technology) about customers - Planning and implementation of policies customer BIDV branches: in Appendix 63 b Promoting research and development of products/services of RB: - Building a list of sufficient, diversified products/services, with multi-utilities, standards and quality, high technology content and attractive features compared to other products/services on the market to create the difference in competition - Selection of some strategic cutting-edge products, able to bring high financial efficiency, safe to focus on development: deposits, cards, e-banking, consumer credit, housing credit, credit for family busisness - Designing services and products on the principle of processes and procedures simple, friendly, accessible and flexible to meet the needs of customers - Building the product-package to be provide each target customer segment, crossselling study, selling products of retail banking together with products - Planning and implementing the retail banking products, period 20010 - 2012: in Appendix c Developing and improving network efficiency and distribution channels: ● Traditional Network of distribution channels:  Building traditional distribution channels, including retail branches, sales outlets, savings funds, setting up center for personal financial services (personal financial center – sales oulets for RB only) to become a modern financial center, customer-friendly, a place where customers can simultaneously satisfy their diverse financial needs (one-stop shopping)  Development the retail banking networks, in both quantity and quality by 2012: with 122 branches and 364 sales outlets, by 2015: with 126 branches and 389 sales outlets  Implementation of Centers for personal financial services in Hanoi and Ho Chi Minh City 64  Designing standard serving space for retail customers at BIDV branches and transaction offices, savings funds, centers for personal financial service ● Developing electronic distribution channels (E-banking):  Development of electronic distribution channels through the advertizing, marketing activities to customers and taking opportunities to cooperate with other organizations to increase combined, cross- selling products and banking services  Development of points accepting payment by cards (ATM, POS) by investment with focus, and improving the connection between the systems of card payment, bank net, smart link  Building the electronic payment gateway (alliance with partners) to develop e-banking  Development of model Autobank - (self-service banking) in large cities, densely populated urban area with setting up series of ATMs, deposit machines, passbook update, Internet… ● Promotion and other marketing activities in retail banking:  Buiding up a professional marketing organization from Head Office to Branches The marketing department at the Head Office with full capabilities to perform all activities as market research, trade promotion (such as offering gift promotion, lotery organizing, programs thank customers etc.), the advertizing and PR activities (including internal BIDV PR activities for strengthening broadcast) Marketing activities in the branches are perfomed by its RB Customer relationship management unit  Development a comprehensive PR program, and effectively organized to promote the brand value in RB in the early stages This activity will help the public, customers understand more about the advantages of BIDV, create a friendly image uniformly, a look at BIDV as an effective brand, and create 65 business advantages for retail banking To make this really work effectively, there must be consistency in message, target public and target customers, between the PR and marketing programs 3.2.3.5 Enhancing risk management capacity: - Ensuring the separattiong between business functions (customer relations) and functions of risk management in the branches; Strengthening of forecasting; Strengthening the internal inspection and audit; Enhancing the privacy and data security, system for continuously data storage and backup… - Regularly check the compliance staff and branches with the procedures, process, regulations 3.2.3.6 Building the financial policy: - Research, development and implementation of programs for calculation and allocation of costs - income related to retail operations, details for each activity, products, each business units, each customer / group customer from which to have specific solutions for increasing operational efficiency as well as a basis to develop and implement finance – motivated mechanisms - Development policies of salaries, bonuses to encourage the sale of products / services retail banking based on: • Research and building reasonable mechanisms for income distribution to stimulate retail operations Application of coefficient of income from retail operations, taking into account local and regional factors • Research and development of award mechanisms to stimulate retail operations on the basis of: • Achievement of the target structure: outstanding retail credit / total outstanding credit debt, raising capital from population / total capital mobilization, retail service revenue / total service revenue 66 • Achievement of target sales scale: outstanding credit debt growth, growth capital mobilization from population, revenue from card service / total service revenue • Achievement of efficiency indicators (labour productivity per capita) - Research and development of mechanism for assessment of the planned retail activities • Giving plan in accordance with criteria of scale, structure; • Building reasonable scale for assessment of the planned retail activities: - Developing of mechanisms to support the retail cost limit of branches developing good retail operations; - Building and gradually implementing of stimulating mechanisms for selling of products / services for the staff 3.3 CONCLUSION In the dynamic process of economic development along with integration and globalization, there are many opportunities as well as threats and challenges for every business Competition is more and more intensifying Strategic management must be of utmost importance for a company to sustain its competitive advantages and possibly to develop further Recognizing the key role of strategic management, BIDV must develop a suitable strategy for its purpose of developing retail banking business A good vision, comprehensive external and internal analysis, discovering the core capabilities, could help BIDV to buid successful strategies at all levels and to achieve its purpose 67 REFERENCES Vietnamese: Data from Vietcycle, Market research company TNS Vietnam Data warehouse system SIBS Dong Thi Thanh Phuong, Nguyen Dinh Hoa, Tran Thi Y Nhi 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