GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM STRATEGY BANKING FOR DEVELOPING RETAIL SERVICE IN SOUTH EAST ASIA COMMERCIAL JOINT STOCK BANK IN PERIOD OF 2012-2016 Group Number: 01 - Vu Van Khiem - Le Ngoc Diep - Bui Thi Quynh Nga - Nguyen Viet Hung - Do Thi Ngoc Van Class: X0310 HANOI: 2012 @ SeAB ank Kết nối giá trị sống CONFIRMATION OF SOUTHEAST ASIA COMMERCIAL BANK (SEABANK) We, Soutiest Asia Commercial Bank confirm that we agree the research group including the members mentioned below to be allowed to use the public data, documents as well as contact with the operation fact to study about the business strategy about Retail Banking of SeAbank, serving the research purpose of the group to complete the MBA course: 1, Do Thi Ngoc Van Nguyen Viet Hung 3, Le Thi Ngoc Diep 4, Bui Thi Quynh Nga Vu Van Khiem Hanoi, November 29" 2011 Cal Cetlre 1000 5595 59 etna www.seabamk.om.vn Hội sở: 25 Trần Hưng Đạo, Hoàn Kiếm, Hà Nội, Việt Nam Tel: (+84 4) 3944 6688 Fax: (+84 4) 3944 8689 ACKNOWLEDGEMENT On behalf of the group, we would like to send gratitude to dedicated support of lecturers in Center for Educational Technology and Career Development ETC, Post University Department — Hanoi National University; Griggs University — The Us We also Commercial expressed Joint Stock our thanks Bank, to Manager General Director in Planning of South — Investment East Asia department, Financial — Accounting department providing data for completion of this capstone project Although the group tried our best to well this capstone project, due to limited knowledge, this capstone project has limitations Thus, the group wishes to receive significant contribution of lecturers, colleagues and friends for the most effect COMMITMENT Group 01 Class X0310 commit this is our own research project Data given in this capstone project is honest and has been not published in any scientific projects Hanoi, date month year 2012 Group leader TABLE OF CONTENTS A CN AI LG L1: TC II TT Ð xenssetioEcs001060013180010006006i930S61635GG0QI3)3816-lÔlkggmnisidtgnigiirgEA01/6/4020-S0806 151,01 ĐỊT? CN TIÊN TỔ naeeseseasurdiiobisiouogtiat4326030552000000ág06000il00/100/40004081810140861Glassasg il LIST OF SYMBOLS L0 LỊ £ HP AND ABBREVIATIONS sccscseccexcsuns Seca 02G V l2) TL HH EuaaeaeaanbdeiatiliennnasnisaersioidaiototbiSGONGGS.G.0D4GVGAGHSAG0GE0048 VI KẾT HE Có 16I1 bo: L U, HÀ xasngneoe ging T000002000NG 8003000100030381000130000165S090/68:0009i61801msguiaqgioutlioittgst2000/00G000051 CHAPTER 1: OVERVIEW ABOUT STRATEGIC RETAIL BUSINESS IN COMMERCIAL MANAGEMENT AND BANK sacimcienscortemenenamamncmnannuns 1,1 Theories about building atid managing SIE BY ssccanscncurrnmamccrnamnennnans 1.1.1 Concept about strategy and strategic managemenIt . -««-«- 1,1,5 Une role ð£buHiing statEe1? THỂ GHIEDTÍN seeeeeiatduadeiddielieesnedanossrsssgea 1y 1+1 CHÍẨY cangevgiotsketd tiGiDL000400111kngndiunngugptuoptzS900BNIB/010/0040.6000888g00i610508/000n68i5808034 014 Lạ chổ HT KẾ cu nggg hit Gabi0NEikoSBA899000 00/65 1lamngi2iage i0sggiSg504409008510005905G0 400401830800 1u2: RIEPð§ GI YESGBTGHIIHIE SE HE ˆ ca nggỹÿaagggn nh lz2,L Añi8lvzTu tiilEtiil GHVITO HO A1046:41/26 hx840080000/8042800G02030/200366.06 Zz cnccnccncommanmmnanuniniimanmnensncenseness Z Lực L1 AIHCEG E770 0H16 eeeeeeeddesinnruaenagiioniiortgotklpi8ik4G80100000031040680900000104 [tied ok DOLCE (0fÏY TÍNH ngaaadaabdiidiikdidosonbrarionguioastOtSGGGESIGIRGBHGDIGI-GL.20000066 12 THHSEH] GHVINGHHCHE ngeeuuntdooasoiiptliettiodlgioleisst84G00004 5488004i68aseinugkguuicd-HI20660 11 [,3 Tools used to atialyze aid GEICO SIRRIERY ncnecicicncmnmemnnmneamn nemananuuiaain 13 1.3.1 KHEEfTiäI P 8€GðT E.vHiinlofi Matrix UP cccnmmnmnwnreommemnmmmanmnans 13 1.3.2 Extemal Factor Evaluation Matrix (BFE) ssisssaiinuxennvovenvennnsnconcapvnceawi 14 BoP LT Ti VÌEa BF As ETB nang nndeenasoooyontorirdSttstisgtob4btf0KGE40006 AA HOPE icant 15 Š Ga adaaBtdueaseseesrnsgraagtotiihtooptoggSfBIG0/400038/S40L010001083840000080868H0ilaa 16 [4 Retail BUSINESS OPSrations 11 COMMERCIAL DANK cccnscccessnnnverrccnmenmsenenusanies 17 1.4.1 Concept about retail business in commercial bank .52 i? li F.EETTFGS DĨ TEIHDR DifiHiE SENVI0E ccceeraneemiimmmnmmmmnn CHAPTER 2: ANALYZING OPERATIONAL ET RAL; EEG ENACT BI VL ENVIRONMENT OF SEA BANK crc rennet renner tata il 18 acco 21 2.1 General Iinformation about SeabankK - - - cv TT 11k khen ray 21 2.1 Mistery about Toundahon anid CEveOaient sissies dinsxaicomncmnemnnormnaicarenoniame 21 iskoo DI MII HE 2nd OTERO Dodod IRCA] DATS SPE YE I ccm iene 21 SEFVICRS BHG HEGOHBGaeseaedaddtanioisaBiGA0nlg01ã030g0.00010di0lgi 23 I cererasnccnnnca sects smamese easement cata comes magne 24 2.2 Analyzing operational environment Of SCA BANK sss sicwisuevineminsannnnrsnmenniesnonennvnvsn Zo zin PORPGUIAL CUTOUT BIASES cseesoeseseedoiodsoGlbksoigtisslzsgiGsaod006100302.380se oo Jods ll, MGRED êfiwWlf(ffểf@fHE [PS| TH 6Ì ceeveseeededdidiatstỞbiddgieMdskrde wee 20 2.2.1.2 Micro environment analysis (Michael Porter’s five forces model) 28 Dud) | XI6ï Hai Factor Evnludlidii: WAAR sisi nanacornsnsnecromncnveomnnniencenaisanviens 35 Dabok, THLĐETTNI ERiVifGfiiifieff 001W Bế sueweedaeadaardiibissiikledkeliecidERdiAslaibheaeskossaossagg 37 Dodie.) Vee GORI GIUED GD ueeeoddedeseecdsertiudtgieooptbiioioidibtttiiiigiodtfG su Sa: Ð1UNTTHIT FESHEDUE tungggua nỹgicdtl8t00611l0nnsxaniosdeckbossiekoiggi091380101466104046080000000006/6 45 cl Dae P RA TẾ song ein a TRL Nie TRS 46 II EITE 8G fEpuliioii GỀ ĐH cu deaanddeodiatdiidisiaGidilitdsilikiod6bdBilösssssssuex 49 2.22.5 internal Factor Evaluation Matrix LFEB eeeeerdrdridiedddoiaiiadrigusỎ 50 2.2.3 SWOTT analysis for retail banking operation in SeABank 52 Khi ft SE KTD CHẾ -vøngogsuiigssi-RSARGSkGu4008/0018/030G00Gi24/0000060004300/138ng00G030g462ùnbaaroegrnuoe 52 Pigs WEARSOD sesesnsinneadtdpoisingyiilcthflieslieSGSI31031000/80100090040100010600003403081i50200)-0/0GguẤ6 56 cu n? ST ỢTTTHTT TẾ ngu and tt ng tiiesnnnnnuangttdoarnksltostsolg NARADA Ee i) a a7 59 garde SWOL MAIN OT SOA BSI cuaenaanadeoiaaddooibnciiltdetiidkdgt lASGSNGSGiesoeaosaa 61 CHAPTER 3: IMPLEMENTING SELETING BUSINESS STRATEGIES STRATEGY AND IN TERM SCR VICE OF SEABANK IN PEKIQD OF 2012-2016 SOLUTIONS’ OF RETAIL FOR BANKING Tho n 69 3.1 The long term development orientation of SeA Bank c 69 3.2 Selecting business strategy in term of retail banking service 71 Ss GWOT tg ire DASE BIYHICEV SGÌEHfisaeeesidabidkeddioiinsektiiodondBioiEgikiboiuifgi Dota ĐỀ: TH Y DỀ TD0EEE RfDATOtV SE ID DDTTeasuaaadidedtididiiiooesukonstsoioiotaigroueesssgseitgkgiei 72 iil 3.3 S0INHONS TGf TfiBlbtieniiib: SH GD TÊN eeeeeeastieiidOdilelGGG400001000-0000006004304033đil00 76 3.3.1 Complete organization structure for retail banking serVIC€ 3.3.2 Promote researching, diversifying and developing retail banking service 77 3.3.3 Diversify distribution channel and enhance efficiency 79 3.3.4 Strengthen communication and marketing for retail banking service 81 St KGhilwtiapi T0f tifilotifetfHib SN ĂGET cueseseaseniiossduosgsesgsiott6U304380016280881640800406 81 kiêu Do bụ bà LÍ bói TY sugggngssdgigG8S8H4001/GUEGI0/46(3015380EMugRiGhictiiqiangiisgssgitstioSIEUSnSg05246.6)40400002/01/00008/ 008186 85 REFERENCES ANNEX IV LIST OF SYMBOLS No ‘Symbol - | ADB |ATM BYE | !GDP =5 | AND ABBREVIATIONS Meaning Asia Development Bank | Automated teller machine External factor evaluation matrix - 'Gross domestieprodutL |JIFE Internal factor evaluation matrix | NHBL Retail banking ss— |NHIM Commercial bank § MIC Ministry of Information and Communications |POS Point of sale 10 | PPP Purchasing power parity II | SeABank South East Asia Commercial Joint Stock Bank 12 | WB World Bank I3 | WTO World Trade Organization LIST OF FIGURE AND TABLE List of figure ge SE YG de=enaaedaninniisisodnsaogttgSkoEGSI0I104/000IV3AG0H0101Pu0080808G010141G283040083IB Figure 1.2) Michael Porter’s five Tones W006 ecencscmiswenmeneaeanmnsutniieonamnnnnaeoncnnuns 10 Figure 2.1: Oreanization Strocture Of SCA DANK siccscesssnencenanomemnmnnnsneniuaanarmmcarenes 22 Figure 2.2: Retail banking products of SeABank s CUS a ea Rh Figure 2.3: Growth rate of customers in périod of 2008-20 TÚ in 23 iiiiiiiiieee 30 Figure 2.4: Growth tate dG[ cústofiers tị 200D TÚ eaveeasaoiaedrdioisgdaroskondasosa 38 [Figure 2.5: Growth rate of active cards in period of2008-2010 .- 39 Figure 2.6; Credit srowth raie Tí ĐEPIGU B1 2008-50 1U uiiiaiiieiiiaiisioiidsoso 40 Figure 2,7: Charter capital of commercial Banks EH 2Ó TỦ ceceeeseeasaseeidelaiadde, 54 Figure 2.8: Open coefficienct of Vietnam GCOnOiMy (Yo) weesaisssisisncnnnsscecesrsnccesarverencneys 58 List of table ‘Tablel lt Ts Comipined SAU ceeaeeesesessadsdorediobdisegbolgfsciitltötos9eoEB4048040300300080040E06 15 De Le BW ARE saaaeaeeidotiaiidoipuioagiatdbliSG0GiA88430661384180000xssgqu090500160380/6080200M80y 17 Table 2.1; Esternal Factor valuation Matis BPE srcccnnosnnmmansmmewenemmmimenas 36 TBĐIE 5:2? TERGTHOR 6ifilif0N SG Ủ TneeaeaaaeiseiidioikiiidirikioirgloibiodtgbMGi301660303ã6n 47 THBÌe 2.3: Ff(0iioial 0DftiiHoni TH 2009-20LŨ cuuauataatiiáidb0i6802Lseissanadoksssioiosagidougrg 48 1HĐDIE 2.5Ã: IHfGFHNHI PWETóF 100 ZOOS WOT MTR TROIS 35 LE er Table 3.2 Đi 21 k1 Roadmap sagag val Wall Mane ncconmsnumammnmunnnianemiaumaannamnicenien 5] Of SEAR Ha for icin ung implementing mEAtmmmnn 62 eeseeensndedrseeninoroSiseeteeqsoensadgose 73 in_ period ccm aca a eam 82 VI retail banking service INTRODUCTION 1.1 Context and necessity of the subject 1.2 Context of subject Recently, together with industrialization and modernization, the process of urbanization in Vietnam has strong development According to estimation, growth rate of urbanization in Vietnam is about 30% Furthermore, Vietnam is the nation having stable growth rate of GDP faced up with difficulties economic development resulted at 6-8% year since the world economy from financial crisis Accompany is social development Vietnam becomes by the one of countries the most development of information technology and internet in the world From the above reasons, services and it creates favorable conditions products Nevertheless, with for development the existence of of retail banking more than 100 commercial banks as present, in order to have sustainable development and mark position in market, banks must have right and sustainable development strategies on the basis of analyzing internal factors, influences of external environment to retail banking service business 1.2 The necessity of subject 1.2.1 Reality South East Asia Commercial Joint Stock Bank is one of the largest commercial banks in Vietnam at present After more than years of foundation and development, the bank continuously expands their operations with annual growth rate up to 18% The significant contribution to growth of SeABank over the past year is development of retail banking service In accordance with development of economy, scientific technology; retail banking services become attractive business model for Vietnamese banks In order to maintain this market share, banks also face up with many difficulties and threats resulted from integration process service 1.2.2 Reasons to select topic From analysis mentioned business to development above, we can see the role of retail banking of SeABank in particular and Vietnamese commercial banks in general Having awareness of that importance, there have been some researches and conclusions about this operation such as: Topic: “Developing retail banking service in Vietnam, reality and solutions”, Associate Professor — Doctor Nguyen Dac Hung — Banking Academy This topic provided the general view about operations for developing retail banking service at commercial banks as well as introduced solutions to improve above Operations with banks in general Topic: “Retail banking services in Vietnam in integration process”, Doctor Nguyen Van Tien — Vice Dean of Banking Faculty, Banking Academy The topic pointed out risks for retail banking products, the opportunities for banks in integration process Topics had meaningful conclusions about retail banking operations in general In order to apply them into building strategy for a specific bank in this area, the topic “Strategy for developing retail banking service in South East Asia Commercial Joint Stock Bank in period of 2012-2016” was selected with the aims at proposing right strategies for SeABank to expand market share in retail banking area as well as control threats from this business model Objectives of capstone project From analyzing operations of SeABank applied theories of strategic management from 1994 up to now, the subject into business activities in general and retail banking in particular Furthermore, the subject also drives to following three specific objectives: + To manage human resource and capital effectively + To promote quality of retail banking service + To expand market share in retail banking operation In which, human resource and capital management is considered as key tO factor about service quality and market share expansion in area of retail banking ... retail banking operations in general In order to apply them into building strategy for a specific bank in this area, the topic ? ?Strategy for developing retail banking service in South East Asia Commercial. .. environment of retail banking service area in SeABank Chapter 3: Selecting strategies and solutions for implementing retail banking service business strategy of SeABank in period of 2012-2016 CHAPTER... basis of analyzing internal factors, influences of external environment to retail banking service business 1.2 The necessity of subject 1.2.1 Reality South East Asia Commercial Joint Stock Bank