VIETNAM NATIONAL UNIVERSITY, HA NOI
SCHOOL OF BUSINESS

NGUYEN XUAN HAI BUILDING BUSINESS STRATEGY FOR BANK
FOR INVESTMENT AND DEVELOPMENT OF VIET NAM
SECURITIES JOINT STOCK COMPANY IN PERIOD OF 2012-2015 Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMNISTRATION THESIS

Supervisor: Dr. Tran Doan Kim Ha Noi, 2012ii

ABSTRACT
BUILDING BUSINESS STRATEGY FOR BANK
FOR INVESTMENT AND DEVELOPMENT OF VIET NAM
SECURITIES JOINT STOCK COMPANY IN PERIOD OF 2012-2015

pressure as present. If applicable, the company can control risks, solid steps and
mark position in Vietnam Securities market.
In the condition of the difficulties of the economy, the securities industry has faced
up to huge challenges. Developing strengths, eliminating weaknesses, promoting
the absolute advantage and competitive advantage will help the businesses in the
field of securities find the way to survive and develop in the current period. Which
direction should be selected? what strategy should be chosen? The limitation of
resources and the current period is extremely difficult for securities companies.
Thanks to discussions with experts in the field of securities as well as colleagues,
leaders in the BSC and the knowledge achieved from the course, the author has
contributed a little to find out strategy and direction for the BSC in the future. With
all the general information about the stock market, the author would like to bring to
the reader an overview of the stock market in Vietnam, point out the strengths and
the weaknesses of the BSC as a basis for selection of strategic development in the
future. All the solutions are orientedly given, accompanied with the instability of
the stock market; the author hope to contribute a lot of useful ideas for development
of the BSC in the future.
vi

TABLE OF CONTENT
ACKNOWLEDGMENTS i


2.1.2 Business lines 20
2.1.3 Organizational structure 22
2.1.4 Line of vision, mission 22
2.1.5 Philosophy, viewpoint of business 24
2.2 Outside market analysis of BSC 26
2.2.1 Macro market analysis 26
2.2.2 Analysis of securities business sector environment 37
2.2.3 Judgment of opportunity and challenge 45
2.3 Analysis of internal environment 48
2.3.1 Business activity 48
2.3.2 Business support activity 60
2.3.3 Identifying strength, weakness and building the evaluation matrix of
internal environment factor (IFE matrix) of BSC: 68
2.4 SWOT matrix of BSC 70
CHAPTER 3 74
3.1. Orientation for business strategy of BSC in period of 2012 - 2015 74
3.1.1. Strategic targets of BSC 74
3.1.2. Building partial strategies 78
3.2. Selecting business strategy for BSC in period of 2012 - 2015 83
3.3. Solutions for implementing business strategy of BSC 84
3.3.1. Solutions on human resource 84
3.3.2. Solutions on Marketing 88
3.3.3. Solutions on capital 89
CONCLUSION 90
REFERENCES 91
xi

LIST OF SYMBOLS AND ABBREVIATIONS
1
BCG
Boston Consulting Group
2
FPTS
FPT Securities Joint Stock Company
3
HNX
Hanoi Securities Trading Department
4
HSC
Ho Chi Minh City Securities Joint Stock Company
5
HSX/HOSE
Ho Chi Minh City Securities Trading Department
6
QSPM

activities. BIDV Securities Joint Stock Company (BSC) is one of the first securities
companies adjusting their development strategy to be able to have improvement in
securities market.
With open tendency of economy, BSC has to face up with more and more rivals not
only domestic ones but also foreign one with strong finance capacity. The increase
of rivals reduces market share of BSC. Although BSC has many competitive
advantages namely strong finance capacity and trademark and over the past years,
BSC always improves to increase prestige and product quality provided customers;
BSC must have development strategy in the future against fiercely competitive
pressure as present. If applicable, the company can control risks, solid steps and
mark position in Vietnam Securities market.
Coming from above problems, I realized the particularly important role of building
strategy for existence and development of a securities company. Therefore, I
decided to select topic in line with the theme “Building business strategy for
BIDV Securities Joint Stock Company in period of 2012-2015".
II. Researching objectives 2

 To systematize basic knowledge and theory of strategic management and
strategy building.
 To initially approach to actual operations of securities company in particular and
Vietnam securities market in general.
 To apply gained knowledge building strategy for BIDV Securities Joint Stock
Company.
III. Researching scope
Researching scope: Trading activities of BIDV Securities Joint Stock Company,
Vietnam securities market and some factors in currency market.
IV. Researching methods

 According to Ansoff H.I (1965): “We can consider strategy as “joint
connection” among activities of enterprise and market consuming products,
it contains four parts: market scope – product, growth rate (changes
conducted by enterprise to match to market scope – definite products),
competitive advantages and resonance”
2
.
 According to school of Harvard Business University (1965): “Strategy is
system of goals, targets stated under the form of sectors/business activities
that the company wants to, entry, size, position that the company wants to
achieve and basic policies as well as plans to implement predetermined
targets”
3
.
 According to William Glueck (1980): “Business strategy is a united,
comprehensive and cooperative one designed to ensure the enforcement of
basic targets in enterprise” or “Strategy is a united and general one drafted
to gain achievements”
4
. (
1
) (4)
: FredR.David, 2000: “Concept on strategic management”.
(
2
) (3)
: Blocher and associates, 2002: “Strategic Analysis and Strategic Cost Management”

.
It can say that, business strategy is means helping enterprises reach long term
goals. Business strategy is not to outline specific actions; it is compressive
program, the most effective mobilization solutions for resources with the aim at
conducting predetermined goals.
Business strategy in an enterprise can be defined in following general way:
“Business strategy is an art of designing and organizing means to reach long
term goals of enterprise; it has connection to changes of business environment (
5
)
: Strategy Management - Strategy Management Curriculum

(
6
)
: FredR.David, 2000: “Concept on strategic management” 5

and competition”.

1.1.2 Typical features of business strategy
From viewpoints about strategy mentioned above, strategy still has the most typical
features in any period of time. It reflects the nature of business strategy in enterprise
with the most basic ones such as:
 Business strategy defines basic goals and business orientation of enterprise in

accordance with displacement of market. It also creates solid foundation for
research and deployment, development investment, human resource training,
market expansion and product development.
1.2 Process of building business strategy of enterprise
1.2.1 Define Vision, Mission, Target, Policy and Core thinking
1.2.1.1. Vision
Strategic vision demonstrates the highest and the most general desires and
wishes that organization wants to achieve. We also consider vision as routine of
enterprise in which it shows the destination in the future and the way enterprise
will follow to reach that destination. Or in other words, strategic vision is to
draw a picture of destination together with reasons and means to do.
Defining and stating vision have particularly important role since it gathers
expectations of all members in enterprise and encourages them making efforts to
gain goals, career and noble ideas.
1.2.1.2. Mission
Mission or function is a statement having long term value in objective and
distinguishes this company to others. Such statements are also called as business
philosophy, business principles and belief of the company.
The mission states the existence reason of enterprise. According to Drucker, the
business mission statement gives answer to the question “What is our business
operation?” “What would we do and how would we do to reach the vision
statement?”
1.2.1.3. Target
We can understand target as established achievements which enterprise finds out
all ways to gain while pursuing their mission. The right definition of targets has 7

remarkably important role to the success of organization since targets map out


(
7
)
: FredR.David, 2000: “Concept on strategic management” 8

Recognizing and assessing opportunities and threats from external environment
led enterprise define their mission and functions correctly and obviously.
Furthermore, enterprise can build strategies and reach long term target as well as
policies to reach annual targets.
External environment contains:
 Macro-environment or known as general environment;
 Sector environment or known as micro-environment or competitive
environment.
1.2.2.1. Analyzing macro-environment
Macro-environment is the environment covering activities and having direct or
indirect influences to all activities of enterprise.
The main objective of analyzing macro-environment is to acknowledge changes
of anticipated tendencies from factors of external environment. With the
concentration on future, analyzing external environment allows enterprise to
recognize and assess: Opportunities (O) of environment that enterprise can make
use of and Threats (T) facing up enterprise. From that, enterprise builds clear
business functions, defines feasible long term target and designs strategy
matching to business goals.
We can use PEST model to analyze macro-environment. The model includes:
 Political
 Economics

Figure 1.2: Michael E. Porter’s five force model

1.2.3 Analyzing internal environment
Internal environment of an enterprise includes its internal factors and system. To
survive and develop, every enterprise has to implement management operation
for finance, human resource, trading and production, research and development
as well as marketing. Additionally, they must have information system,
management system, and functional departments in each sector. Each of them
has strengths, weaknesses and defining these factors will help enterprise to build
and select suitable business strategy.
Analyzing internal environment is to define strengths (S) as well as weaknesses
(W) of enterprise.
 Strength (S) is the things that business is doing well or feature to help
businesses improve their competitiveness. Strengths can exist in the
following formats:
- An important skill or experience - the secret to manufacture with low
cost, technological secret, producing without defective products,
experience in providing good customer service, product innovation skill, 11

commercial skills for product in large scale and unique advertising
promotions;
- Advantages in material facilities as rich capital, large distribution system;
- Strong human resource;
- Advantage in organization and management;
- The valuable physical property - modern buildings, attractive location,
natural resources stocks;
- Keep interest position in market: lower cost and better products;

 Focus strategy: this strategy has the two specific forms as cost focus or
differentiation focus.
1.2.5 Distinguishing three strategic types:
1.2.5.1. Cost leadership strategy:
Cost leadership strategy (the lowest cost strategy) was popularly applied in the
1970s of the 20
th
century in the developed capital countries and now still applied
by many enterprises of developing countries. The lowest cost strategy with its
nature is how to reach total lowest costs (production, management) in the
branch, on the basis of implementing policies: focus on investment in material
facilities, equipments, mass production to utilize large scale goodwill, follow the
purpose of cost reduction from experiences, cost control and close expenditure,
reduce costs for research and development, marketing fields,, advertising
services …
The objectives pursued by the company for this strategy are to create products,
services with the lowest costs to overcome competitors to exist and develop.
Companies choosing the lowest cost strategy have low differentiation levels of
products, low market segment, have strength of focusing on production
administration and material supply section. With low product prices, the
company has capacities to consume block volume of products, create conditions
to strength production, to lower more product prices.
 Strength
- Thanks to low costs, the company may sell products with lower price
than competitors but still maintain estimated profit level. In the case 13

competitors sell products at the same price, then the company with the


- Capacities of easy imitation by competitors for production methods of the
company or learning experiences of investment in more advance
production methods to have lower costs of as same as the company.
- Due to low cost objective, the company doesn’t invest appropriately in
R&D, marketing operations, thus, necessary changes in products or
marketing are not seen, changes in customers’ taste are not satisfied and
gradually the company loss its competitive advantages.
1.2.5.2. Differentiation strategy:
Nature of the Product Differentiation Strategy is to create thing recognized by
the whole industry as “unique". Differentiation may be expressed in many
forms: product design, quality, mark, trade name, manufacturing technology,
customer service …
Objectives of the Product Differentiation Strategy is to obtain competitive
advantages through creating products considered as unique for customers,
satisfactory with customers’ demands by way impossible to implement by
competitors. Just this capacity permits the company to price “dominant” to
product, increase revenue and reach profit rate over average. This “dominant”
price is always higher than product price of the company pursuing the low cost
strategy and accepted by customers because they believe that products have high
quality. As a result, products are priced on the basis of market, at acceptable
level by the market.
 Advantages
- Help the company to cope with competitive forces firmly and gain profit
over average level.
- The most value assets created by the Differentiation strategy is loyalty
with brand of customers (brand loyalty). This factor helps the company to
confront with competition, company protection from many sides.
Powerful supplier or powerful buyer is not important issue because in the


nature … As well as the Product Differentiation Strategy, the centralization
strategy may implement under many ways: centralization on the basis of the 16

lowest cost or on product differentiation or both of them, namely the company
implements the low cost strategy or differentiation only in market segment
chosen to reach competitive advantage.
 Advantages
- Competitive advantage of companies pursuing centralization strategy
originated from their competitive capacities - unique, special product or
service supply capacities which are unable to implement. This also permit
the company have advantages in relation with customers because the
company is sole person to supply products, services; customers are
unable to find at other competitors.
 Challenges
- Due to small scale, thus in relation with supplier, the company has no
advantage, has no initiation in material price.
- Also due to small scale production, thus the company applies the
centralization strategy, not utilizes effect of large scale and experience
curve and always has high production costs.
1.3 Tools used to analyze strategies
1.3.1 SWOT matrix
SWOT analysis model is the useful tool for catching up with and making
decision in every case with respect to any business. SWOT is the abbreviation of
four letters Strengths, Weaknesses, Opportunities and Threats. In a visual way,
SWOt is theory frame and basing on that, we can consider strategies, define
position as well as direction of an organization, a company. Furthermore, we can
analyze business proposes or any ideas relating to interest of enterprise. In fact,