ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 27 June 2020 DateReceived1stsubmission

Re-submission Date 3 July 2020 DateReceived2ndsubmission

Student’s Name Nguyen Ngo Nhu Thao Student ID GBD191179

Class GBD0804B Assessor’s name Alelie C. Zaragoza

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of
plagiarism. I understand that making a false declaration is a form of malpractice.

Student’s signature Thao

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 Assignment Brief 2
Higher National Certificate/Diploma in Business

Student Name/ID Number: Nguyen Ngo Nhu Thao

Unit Number and Title: Unit 1: Business and Business Environment (485)

Academic Year: 2020

Unit Assessor: Alelie C. Zaragoza

Assignment Title: ASSIGNMENT 2- Internal and External analysis of a Business

Issue Date:

Submission Date: 3 July 2020

Internal Verifier Name:

Date:

Submission Format:
Format:

 This assignment is an Individual report and specifically.

 You must use font Calibri size 12, set number of the pages and use multiple line spacing at 1.5. Margins must
be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm.
 You should use in text references and a list of all cited sources at the end of the essay by applying Harvard
referencing style.
 The recommended word limit is 2000-2500 words (+/-10%), excluding the tables, graphs, diagrams,
appendixes and references. You will not be penalized for exceeding the total word limit.
 The cover page of the report has to be the Assignment front sheet 2 (to be attached with this assignment
brief).

Submission

 Students are strictly mandated to submit the assignment in due date (slot 38) and in a way requested by the
Tutor.
 The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
 Remember to convert the word file into PDF file before the submission on CMS.

Note:

 The individual Assignment must be your own work, and not copied by or from another student.
 If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you must
reference your sources, using the Harvard style.
 Make sure that you understand and follow the guidelines to avoid plagiarism. Failure to comply this
requirement will result in a failed assignment.

Unit Learning Outcomes:

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the
macro environment has on business operations.
LO4 Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors.

Assignment Brief and Guidance:

Assignment scenario.

You are working as an analyst in JP Morgan, a famous investment bank which aims to find out dynamic
companies around the world to make investment in. After submitting a written profile of a chosen
company, your supervisor believes this firm has an opportunity to be a profitable investment. The next
task is for you to write an analysis of the chosen company’s internal and external environment.

This time, you need to do the following:

1. The same company in Assignment 1.

2. The country or a specific province in the country, where the chosen company provides its products or
services, to make a research for the effect of the external environment factors.

This will be performed a report to the Director and should include the following structures.

Structure of the Report :

1. Introduction: this section should give a brief explanation of the purposes and structure of the report.
2. Identify the positive and negative impacts the macro environment has upon the chosen company. Student
need to explain the competitive environment (Five forces model) and 6 factors (PESTLE) of macro
environment. For each factor, you have to present the general impact of each in the business or the chosen
company.

3. Conduct internal analysis of the chosen company by analyzing the following factors: (i) Core value or Mission
or Vision; (ii) Organizational structure; (iii) Human resources; (iv) Brand name or brand equity; (v) Financial
strength/ factors; (vi) Fix/physical assets; (vii) Market resources; (viii) Technology base or Research and
Development. Based on the previous analysis, identify the strengths and weaknesses of the company.

4. Explain how strengths and weaknesses interrelate with external macro factors. First, you have to search for
at least 1 real business decision-making of the chosen company (strategies/ action plans/ investment
decisions/ developing decisions). Next, you have to prove how the previous mentioned decision is affected
by (i) strengths or weaknesses of the chosen company and taken into consideration of (ii) factors of the
macro environment (PESTLE) and (iii) competitive forces of the competitive environment, which make an
effect on the chosen company. SWOT or TOWS must be applied to come up with meaningful analysis of the
internal and external business environment. Find an example to highlight how different companies have
different business decisions when they are affected by similar external factors.
5. Partnerships and other business ventures made by your chosen company.

6. Conclusion: summarize all the key points from the report.

7. Recommendation: Why do you think this business will be a good investment for J.P Morgan? Support your
answer.

8. Prepare a presentation. Note minimal use of words/sentences.

 Profile of the company

 Results of the internal assessment
 Results of the external assessment
 Why do you think this company is a good investment opportunity for J.P Morgan?
Learning Outcomes and Assessment Criteria (Assignment 1):

Learning Outcome Pass Merit Distinction

LO3 Use contemporary P4 Identify the positive M3 Apply appropriately LO3 & 4 D2 Critically evaluate
examples to demonstrate and negative impacts the the PESTLE model to the impacts that both macro
both the positive and macro environment has support a detailed analysis and micro factors have upon
negative influence/impact upon business operations, of the macro environment business objectives and
the macro environment supported by specific within an organization. decision-making
has on business examples.
operations.

LO4 Determine the P5 Conduct internal and M4 Apply appropriately

internal strengths and external analysis of SWOT/TOWS analysis and
weaknesses of specific specific organisations in justify how they influence
businesses and explain order to identify strengths decision-making.
their interrelationship and weaknesses.
with external macro P6 Explain how strengths
factors. and weaknesses
interrelate with external
macro factors.
Student’s Name: NGUYEN NGO NHU THAO
Assessor’s Name: Alelie C. Zaragoza
Submission date :27 June 2020
Word count: 7244
A. INTRODUCTION:.............................................................................................. 1
B.METHODOLOGY:................................................................................................ 2
C.FINDINGS and DISCUSSION:...............................................................................2
I.External analysis:.......................................................................................................................................... 2
1.Macro environment:....................................................................................................................................2
2.Porter’s Five Forces Analysis of Vietcombank..................................................................................3
2.1 Rivalry in the industry:..................................................................................................................4
2.2 Threat of new entrants:................................................................................................................7
2.3 Threats of substitutes goods:....................................................................................................... 9
2.4Power of suppliers........................................................................................................................9
2.5 Power of customers:.....................................................................................................................9
3.PESTLE :..............................................................................................................................................10
3.1 Political:...................................................................................................................................... 10
3.2 Economic:................................................................................................................................... 11
3.3 Social:..........................................................................................................................................11
3.4 Technological:............................................................................................................................. 12
3.5 Environmental:........................................................................................................................... 12
3.6.Legal:...........................................................................................................................................12
4.Positive and negative impact the macro environment:.................................................................... 12
4.1 Positive:.......................................................................................................................................12
4.2 Negative:.....................................................................................................................................13
II.Internal analysis:....................................................................................................................................14
1.Micro environment:...........................................................................................................................14
2.Internal analysis:................................................................................................................................15
2.1 Core value of vision:................................................................................................................... 15
2.2 Organizational structure:............................................................................................................16
 2.3Human resources...............................................................................................................17
2.4 Brand assets:...............................................................................................................................18
2.5 Financial strength / factors:........................................................................................................18
2.6 Fix/physical assets:..................................................................................................................... 19
2.7 Market resources:......................................................................................................................20
2.8 Technology base :....................................................................................................................... 21
III. Interrelation of strengths, weaknesses and external macro factors:................................................. 23
1.Swot analysis:.................................................................................................................................... 23
2. Partnerships:.....................................................................................................................................25

D.CONCLUSION AND RECOMMENDATION.........................................................26

I.Conclusion:.............................................................................................................................................26
II.Recommendation:................................................................................................................................. 26
INTRODUCTION:
This is the second report of the researcher on the typic of Business and Business
Environment.We will analyze the internal and external factors affecting businesses. Some
models are used to analyze macro environments such as 5 forces and PESTLE. From that
point out, the strengths and weaknesses that the company is facing and how a company
decision will be affected by those factors.Finally, draw conclusions based on the abstracts
made above.
The company selected as Vietcombank.This is one of the leading commercial bank in
Vietnam. With a long history of operation, the company always opens many branches
around the world so that everyone can easily use the service here with more than 500
branches and professional staff. Vietcombank has made great progress and affirmed its
brand year by year with a series of prestigious awards such as Forbes Vietnam's Best Listed
Company 2013-2017, siamoney's best bank brand in Vietnam in 2017 and so on.

Figure 1: Logo Vietcombank

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B.METHODOLOGY:

To collect data about Vietcombank, the researcher used the internet to get the background
of the company.The researcher is also using some of the services Vietcombank so some
data were based on personal experience.

C.FINDINGS and DISCUSSION:

I.External analysis:

1.Macro environment:
A macro environment is the condition that
exists in the economy as a whole,rather
than in a particular sector or region.In
general,the macro environment includes
trends in the gross domestic product
(GDP),inflation,employment,spending, and
monetary and fiscal policy.

Figure 2: Macro Environment

+Demographic environment :means that
aspecting that science studies about population such as population size,age,population
density,sex, occupation, and other statistical spending.
+Economic environment: means that combining many factors together has a profound
impact and in different directons on the business activities of each business.Economic

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factors include:GDP,unenployment,exchange rate,state budget revenues and expenditures
and so on.
+Political&legal environment: is the basis for production and business activities of enterprises,
especially for enterprises operating in the export sector because they operate on the
international market with strong advantages in Competition is a comparative advantage
between countries. Political stability, clear laws will create favorable conditions for businesses
to participate in competition and compete effectively.
+Social&cultural evironment: is an environment includes factors related to behaviors,social
trends of each group of people and each ethnic group,habits,customs and so on.These
factors have a profound influence on the business and administration activities of an
enterprise.
+Technological environment: is an environment includes factors affecting new market
opportunities,product creation and new technologies.These factors that has a strong
influence on the business.Technological factors are often manifested such as new
materials,application software and so on.
2. Porter’s Five Forces Analysis of Vietcombank:
When companies join or start a new industry,they must use Porter's five forces and
Vietcombank is no exception. Porter's five forces are a model that identifies industry
strengths and weaknesses. This model refers to the 5 forces that affect companies such as
threat of new entrants, bargaining power of buyers,
bargaining power of suppliers, threat of substitutes and
degree of rivalry. The strength of these forces will determine
the level of competition, the attractiveness of the
organization and will help us understand the current
competitive position of the organization and the position

Figure 3: Porter’s five forces that the organization wants to achieve in the future.

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2.1 Rivalry in the industry:
This is a measure of the extent of competition among existing firms. Intense rivalry can limit
profits and lead to competitive moves including price cutting,I ncreased advertising
expenditures, or spending on service or product improvements and innovation.

Nowadays,the level of competitive in the banks is high,not only commercial banks but also
in other fields such as finance,insurance,credit and so on.With the goal of affirming the
brand,holding the position no 1 in the market,bringing profits to the company,gaining
customers,expanding the supply of banking products and services.
Vietcombank is not a comprehensive bank in all fields. The network of branches and
transaction offices is just more than a few private joint-stock banks and is far behind BIDV,
Vietinbank and Agribank. However, Vietcombank possesses many strong points. It is a very
reputable ,valuable brand in Vietnam's banking industry and has a professional staff. The
seniority of its employees is also much bigger than that of other banks. This allows Vietcombank
to have a good staff and at the same time very close to the organization. From the bank's brand,
historical and inherent advantages. Many state-owned corporations and corporations have
been using Vietcombank's products and services for about 15-20 years. The large number of
customers and the advantage of being a foreign currency payment gateway between Vietnam
and the world are the basis for customers to deposit lots of demand deposits in both VND and
foreign currencies here. The success of Vietcombank has made many other banks want to
follow this path.Vietcombank has a great opportunity to compete with other banks such as
BIDV and Vietinbank.

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Figure 4: Vietcombank, Vietinbank, BIDV
These are evidences showing the level of competition of three banks Vietcombank,
Vietinbank, BIDV

Firstly,about total assets, market share of loans : BIDV is currently the bank with the largest
total assets, reaching over VND 1.26 million billion by the end of September 2018. Followed
by VietinBank with 1.17 million billion dong, up 7.2% compared to the beginning of the year.
While total assets continued to increase in BIDV and VietinBank, Vietcombank suddenly
slipped to 1 million billion mark from the middle of the year, by the end of September it
dropped to 995 trillion, down 3.9% compared to the beginning of year.

Figure 5: Total assets,bank loans and customer deposits of BIDV,Vietinbank and Vietcombank

Secondly, the charter capital of 3 bank:

BIDV is also the largest bank to attract deposits with more than VND 953 trillion, and is also
the place with the highest deposit growth among the three banks in the first nine months of
2018, at 10.9%. While VietinBank and Vietcombank respectively grew by 9.7% and 9.2%.
Regarding charter capital: VietinBank is currently leading with more than 37. 200 billion, not
much more than Vietcombank (35. 977 billion) and BIDV (34. 187 billion).

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 Figure 6: Charter capital of Vietinbank,Vietcombank,BIDV

Thirdly, human resources and size of 3 bank:

VietinBank is currently the largest joint stock commercial bank with more than 1,100
branches and transaction offices. BIDV also closely followed with more than 190 branches
and more than 850 transaction offices. While Vietcombank's network of transaction points
is much smaller with only 106 branches and more than 390 transaction offices.

Figure 7: Branches and transaction offices of Vietinbank,BIDV and Vietcombank

Finally,capitalization and profit before tax of 3 bank:

In terms of profit and capitalization: Despite having a smaller network, lower equity capital,
Vietcombank is having the highest profit and increasingly outstripping the other two banks.
In the first 9 months of 2018, Vietcombank had a pre-tax profit of 11.683 billion VND; while

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VietinBank and BIDV are only 7.2 billion VND and 7.96 billion VND, respectively, even lower
than Techcombank, a private bank that has been growing rapidly in recent years.
Vietcombank's share price currently stands at around 57,000 VND/ share while CTG of
VietinBank is 24,000 VND, and BID's BID is 33,500 VND / share. In the market,
Vietcombank's market capitalization is currently reaching over 205.8 trillion VND, while
BIDV is 115 trillion VND and VietinBank is nearly 90 trillion VND

Figure 8: Profits and capital of Vietcombank,Vietinbank and BIDV

The evidence shows that Vietcombank is growing, setting goals and strategic vision by 2020
to become the No. 1 bank in Vietnam and one of the 300 largest financial and banking
groups globally. But besides that, Vietcombank is facing fierce competition with big banks
such as : BIDV and Vietinbank.
2.2 Threat of new entrants:
Barriers to entry are any barriers that prevent or inhibit the entry of firms into the industry.
Barriers to exit are those prevent exit from the industry, mostly it relates to the cost of
leaving the industry.
After the government suspended licensing for establishing a new bank in August 2008, the
entry barrier of domestic banks was increased.

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After joining the WTO, foreign enterprises in the banking sector were opened for a 7-year
roadmap, leading to the emergence of 100% foreign-owned banks such as HSBC bank,
Shinhan bank, Standard Chartered bank, ANZ bank, UOB bank, Woori bank, Public bank,
Climb bank, Hong Leong bank.

Figure 9: Foreign banks have 100% capital in Vietnam

Foreign banks have more competitive advantages than domestic banks in terms of
exceptional capital, business models and risk management.
The segment that this group targets is usually import-export enterprises, FDI enterprises,
leading companies and retail segment of retail customers. In fact, in recent years, these
banks have promoted the development of credit card and asset management products,
with the goal of a group of wealthy and high-income customers. Their strategy is not to be
too price competitive, but to focus on improving the quality of services and services, and
always improving and developing new products to enhance customer experience and utility.
Since then, Vietcombank has not only competed with local banks but also with banks with
100% foreign capital.

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However, the expanding range of foreign banks present in Vietnam is not much, which
limits the access of customers in other provinces. Besides, the threat of newcomers ranges
from low to moderate so Vietcombank needs to equip the infrastructure, products, services,
technology, etc in a large and professional way.
2.3 Threats of substitutes goods:
This threat largely depends upon the nature of the good being traded in the market and the
extent of product differentiation.

To VCB , the threat is companies securities, insurance, precious metals like gold and silver
and internet service development companies like Viettel pay.
2.4 Power of suppliers:
The power of suppliers over the firm is likely to be extremely important in certain markets,
depending upon the nature of the product being supplied (whether it is highly specialized or
not)
Vietcombank has mobilized capital from customers, shareholders, businesses, import-
export companies, other banks, etc. Therefore, Vietcombank also suffered many direct
impacts from suppliers.

2.5 Power of customers:

Base on Porter's frame, buyers are the most powerful in the following cases. Firstly, when
buyers make large purchases, buyers can use their purchasing power as a bargaining lever
to reduce prices. Second, the supply industry depends on the buyer because a large
percentage of the total orders are theirs. Third, buyers can switch between supply
companies at a low cost.

Customers are both the source and the borrower. First, the customer is the supplier. The
customer requires a bank with high negotiating power because he thinks that the bank's
resources depend on the capital of the bank. If the bank fails to meet that demand, it will
invest in another bank because banks are now highly competitive and their products are

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less differentiated. goods are usually not under pressure from these customers but there is
a risk that businesses that suffer from losses resulting in bankruptcy will not be able to
repay loans.

3.PESTLE :

This is a model used by many businesses.

Pestle stands for Political, Economic, Social,
Technological, Legal and Environmental. It is
used to analyze and observe the factors of a
macro environment that affect corporate
performance. Through 6 factors in the model,
all factors outside the business are objective
and through which the enterprise uses as a
strategic tool to help us know the growth and
recession of the market and understand the
business position, opportunities of the
company and make the company more
developed in the future.
Figure 10: Pestle

3.1 Political:
Government laws and regulations are analyzed in terms of impact on the development of
businesses. Political factors can bring convenience, conditions and opportunities or vice
versa. constraining the development of the business.
It includes government policies on bank law, taxes, political stability, corruption, foreign
trade policy, labor law, trade restrictions

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3.2 Economic:
Economic factors play an important role in the development of Vietcombank, both
opportunities and challenges. Vietcombank that responds promptly to changes in the
economy will succeed.
Including Economic growth ,Economic instability, Exchange rates , Interest rates , Inflation
rates , Disposable income , Unemployment rates.
Positive: helping the economy grow, increasing the demand for loans, financial services of
the bank bring high profits for shareholders and businesses, the possibility of bad debt may
decrease, the demand for loans increases. In all sectors of the economy, there is a need to
expand production and business activities.Therefore, the demand for loans increases,
making Vietcombank easy to expand its credit activities, creating more job opportunities.
for everyone, reduce unemployment and increase income.
Negative: when the economic environment is unstable, it is a disadvantage for
Vietcombank's operations such as: reduced loan demand; the risk of overdue debt,
increasing bad debt reduces Vietcombank's performance, increases inflation rate.
For example, from the fourth quarter of 2019 (total assets: 1 223 981 046 VND) to the first
quarter of 2020 (total assets: 1 144 270 262 VND) has decreased, we can see that the
economy of Vietnam has been affected by the recent Covid-19 epidemic. That has affected
the epidemic with the banking industry is the largest since this is the economy in general, so
all negative impacts on people and businesses will directly affect the banking industry. As a
result, the company's total assets in the first quarter of 2020 decreased.
3.3 Social:
Social factors have direct impact on the market. Find out the aspects related to culture and
society, use wisely to benefit businesses.
Including population growth rate , age distribution , career attitudes , safety emphasis,
health conscious-ness, lifestyle attitudes , cultural barriers.

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3.4 Technological:
The era of 4.0 technology is developing in Vietnam, therefore, Vietcombank is also actively
developing its products, services and commerce to meet and enhance the customer
experience.
Including technology incentives,level of innovation,automation,R&D activity,technological
change and technological awareness.
3.5 Environmental:
The environment is a factor affecting Vietcombank's economic activities, it depends on the
weather,climate,environmental policies, climate change and pressures from NGO’s.
3.6.Legal:
The legal factors that affect every business in the world and Vietcombank are no exception.
It includes discrimination laws, antitrust laws , employment laws , consumer protection
laws, copyright and patent laws , health and safety laws.
4.Positive and negative impact the macro environment:
4.1 Positive:
Through 5 forces, we can see Vietcombank is still one of the leading banks in Vietnam.
Therefore, the company will have many potentials as well as opportunities to access
advanced technology, promote more strongly in the future so that the company will
increasingly innovate in a positive direction. In today's banking system, not only domestic
banks but also banks with 100% foreign capital, high competitiveness so Vietcombank
constantly strives to improve quality products and services and ensure to meet customer
needs and satisfaction, have a smart strategy, specific and clear goals, when politics is
stable along with high stock prices will attract more shareholders and bring high profits for
the company.
Thanks to PESTLE, the company can analyze and keep up with macro impacts on the
company. Currently, Vietnam's politics and law are stable, so businesses expand and
develop branches in the country as well as internationally to meet and create opportunities

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to reach many customers. Vietnam's economy is in the process of development, human
demand is also increasing, thus bringing high revenue to the company. The speed of
development of information technology has helped meet and enhance the customer
experience. The environment does not affect banks much, thus creating opportunities for
Vietcombank to grow.
4.2 Negative:
In the 5 forces model, we can see a large number of competitors in the same field so the
company faces an impact on revenue. Besides, there are many new banks participating in
this market, leading to Vietcombank losing a large number of customers, reducing revenue.
In addition, they tend to invest in business projects instead of depositing money in banks to
save. When the purchasing power of buyers decreases, the company will create attractive
incentives to attract customers or be affected by Vietcombank's revenue and profit.
Within PESTLE model, Vietnam has a stable political situation, but that does not mean that
the future still exists, businesses need to manage carefully and have a contingency plan for
potential risks. Good trade growth is also an advantage for development rivals, increasing
competitiveness in this area. Grasping the psychology of customers, other banks always
create attractive incentives to attract customers, causing Vietcombank to face reduced
sales, or this year Vietnam was affected by the Covid 19 epidemic causing economic
difficulties in fields especially in the banking sector, the number of customers using banking
services drops significantly, leading to a decline in sales and the increase in total debt, so
the economy is not always stable. Moreover, the bank always observes the market and sets
goals suitable to each situation for the company to grow day by day.

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II.Internal analysis:

1.Micro environment:

Micro environment is an environment that includes

factors that exist closely with the business and affect
the ability to serve customers of that business.
The micro environment consists of 5 factors such
as:resellers, supplier, customers, competitors , and
publics.

Figure 11: Micro Environment

+Resellers: if the product the organisation produces is taken to market by 3rd party
resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing
success is impacted by those 3rd party resellers. For example, if a retail seller is a reputable
name then this reputation can be leveraged in the marketing of the product.
+Suppliers:Actions of a supplier can influence the business strategy, as they provide the
materials for production. For instance, if their services will not reasonable and timely that
will affect the production time and the sales due to delayed process of production.
+Customers:The customers are the central part of any business as they tend to attract and
retain most of the customers to generate revenue. Therefore, organizations must adopt a
marketing strategy that attracts the potential customers and retains the existing customers
by taking into consideration the wants and needs of customers and by providing the after
sales services and value-added services
+Competitors:The competitors of an organization can have a direct impact on business
strategies. The organization must know how to do a competitive analysis of competitors
and have a competitive advantage. An organization must understand, what value added
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services their competitor is providing or the unique selling point of their competitors. How
they can differentiate from their competitors. What benefits a company can offer to the
customers which competitors does not offer.
+Publics: Your organisation has a duty to satisfy the public. Any actions of your company
must be considered from the angle of the general public and how they are affected. The
public has the power to help you reach your goals; just as they can also prevent you from
achieving them.

2.Internal analysis:
2.1 Core value of vision:
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is making a great
effort in comprehensive and powerful innovation in the current development and
integration period. However, to do that, the company always has strategies and goals to
develop. Vietcombank has a vision: they always take advantage of opportunities to promote
existing things, expand on a large scale, continue to innovate so that the company can
become more and more perfect, keeping up 6 with the regional and world standards. ,
striving to become one of the 100 largest banks in Asia. In addition, the company wants to
become one of the 300 largest financial and banking groups in the world, one of the 1000
largest listed companies globally, which has contributed greatly to the development of
Vietnam.

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2.2 Organizational structure:

Figure 12: Functional structure of Vietcombank

Vietcombank is a company with a functional structure because each department has

different tasks and functions and is divided clearly and separately.
Functional structure brings many benefits to the company Vietcombank such as: easy
operation when there is a specific leadership organization, which makes it easy for the
company to manage and communicate with all the company's activities and projects. The
company can simplify mechanisms to control multiple items, and a large number of
employees will help the company make decisions as quickly and accurately as possible and
clearly identify the company. Besides, there are clear goals and tasks that will attract

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professionals with expertise that the company aims to manage, in addition to having a
complete system, so training and learning employees will be easy and don't waste time. In
addition, work efficiency and personnel quality are increasingly high.
2.3 Human resources:

Figure 13: Number of employees some banks through each

In order for Vietcombank to lead Vietnam and make achievements today, we cannot fail to
mention that it is the human element. Vietcombank has a stable human resource, they
always focus on the quality of employees instead of quantity. When banks such asBIDV,
Vietinbank, VP bank are always looking for new human resources, Vietcombank develops
high quality human resources. They always motivate employees to promote their creativity
and in-depth training to search for talented people, contributing to create more effective
work. Over the years, the number of employees is increasing because Vietcombank opens
many new branches around the globe. Vietnam in 2018 had 17.215 employees, in 2019 had
19.203 employees.

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2.4 Brand assets:
Over 56 years of development and growth, the Vietcombank brand has made important
contributions to the stability and development of the country's economy, while creating
significant effects on the regional and global financial community. From a specialized bank
serving foreign economy, Vietcombank today has become a versatile bank, operating in
multiple fields, providing customers with a full range of leading financial services in the field
of commerce international such as capital mobilization, credit, project financing, etc as well
as modern banking services. With a long history of operation and a team of competent and
sensitive employees in a modern. Vietcombank has always been the first choice of
corporations, large enterprises.Always oriented to international standards in operation,
Vietcombank has been continuously voted as the best bank in Vietnam by prestigious
organizations in the world. Vietcombank is also the first and only bank in Vietnam to be in
the Top 500 of the World's Leading Banks according to the voting results published by The
Banker Magazine.With the intellect and dedication, generations of Vietcombank's staff and
employees have been and will always make efforts to build.Vietcombank into a more
sustainable development, with the goal that by 2020,Vietcombank will become the No.1
bank in Viet Nam.
2.5 Financial strength / factors:
In 2018, Vietcombank recorded a pre-tax profit of VND18.016 billion, up 63.5% compared
to 2017, the highest growth in many years. Along with that, the bad debt ratio is below 1%.
With this impressive achievement, Vietcombank is also recognized by many prestigious
organizations in the world as the bank with the best asset quality, the bank with the highest
profitability among the banks in the Vietnamese market.
In the first 6 months of 2019, Vietcombank's profit before tax reached 11. 045 billion VND,
up 43.1% over the same period in 2018; Consolidated profit reached ~ 11. VND 280 billion,
an increase of 40.7% over the same period, making ~ 55% of the plan in 2019. Vietcombank
continues to have the largest market capitalization of listed banks and has risen to be the

18
bank with equity. Largest banking system. Brand and reputation Vietcombank continue to
be affirmed by the reviews of customers, markets and reputable organizations in the world.

Figure 14: Top 10 reputable Vietnamese commercial banks in 2019 voted by Vietnam Report

2.6Fix/physical assets:

Figure 15: Balance sheet of joint stock commercial bank for foreign trade of Vietnam(Vietcombank)

Base on Vietcombank Balance sheet, we can see Vietcombank's activity growing in Q2 /

2019 to Q3 / 2019, the company's total assets increased. It can be seen that the total assets
19
of Q2 / 2019 is 1 122 970 494 VND, Q3 / 2019 is 1 157 490 007 VND, although growing
slowly, the number of profits for the company is also very large. From Q4 / 2019 (total
assets: 1 223 981 046 VND) to 2020 (total assets: 1 144 270,262 VND) is reduced, but not
significantly, we can see that Vietnam has been affected by the Covid-19 epidemic recently.
That has affected the epidemic with the banking industry is the largest because this is a
general economic sector, so any negative impact on people and businesses will directly
affect the banking industry. As a result, the company's total assets in the first quarter of
2020 decreased.
2.7 Market resources:
Vietcombank provides products and services to customers including: money transfer and
receipt service, consumer loans, card services (domestic debit cards, international debit
cards, international credit cards.)
After more than half a century of operating in the market, Vietcombank is one of the
leading banks in Vietnam. Therefore, the company always opens many branches around the
world so that people can easily use the service here with more than 500 branches/
transaction offices/ representative offices / affiliates at home and abroad, including
Headquartered in Hanoi, 101 branches and 395 13 transaction offices nationwide, 05
subsidiaries including: Vietcombank Financial Leasing Company, Vietcombank Asset
Management and Debt Management Company, Finance Company Vietnam (Vinafico) in
Hong Kong, VCB 198 Joint Venture Company, Vietcombank Securities Investment Fund
Management Company and 04 joint venture companies and associates. In addition,
Vietcombank has developed over 43,000 merchants nationwide and an Autobank system
with more than 2. 407 ATMs. Banking activities are also supported by a network of more
than 1. 726 correspondent banks in 158 countries and territories around the world. With a
long working history and professional staff, Vietcombank is a leading choice of corporations,
businesses and individual customers. Talking to target customers, Vietcombank always
focuses on customers and wants to become the number 1 bank for customer satisfaction so

20
the company always brings the best, most modern and alwaysoriented services. to the
community.

2.8 Technology base :

In order not to be lagged behind other competitors, the company has constantly developed
production technology and promoted internal innovation, applied technology to improve
and change products, thus taking the lead in the development trend. development of global
banks, Joint Stock Commercial Bank for Foreign Trade of Vietnam always endeavors to
research and innovate in order to provide customers with electronic banking products and
services up to international quality standards. According to the State Bank Report, there are
over 80 Fintech companies in Vietnam, which focus mainly on payment. Thus, each Fintech
company will offer a payment application and users are required to choose a payment
method each time they use a service. One problem is that it is necessary to have an
ecosystem of full convergence of payment features based on modern technology, which is
safe and convenient for users. From that demand, Vietcombank has built a variety of
electronic banking services: VCB-iB @ nking, VCB-Mobile B @ nking, VCBPAY, VCB-SMS B @
nking and outstanding financial features such as: money transfer, online payment, bill
payment, phone recharge, automatic debit, train ticket booking, bus ticket, payment via QR
code and so on.With Vietcombank's electronic banking services, customers will experience
an international bank, effectively solve daily financial problems such as shopping,
21
entertainment, spending management, etc. Vietcombank always focuses on building
electronic banking applications based on modern technology, multi-layer security to ensure
absolute safety for customers when making transactions. Diverse and secure electronic
banking services with: OTP authentication code; fingerprint login technology to
authenticate transactions when making purchases online; QR code scanning allows
customers to pay easily, transfer without remembering the account number; Chatbot
technology (virtual assistant) automatically finds information and answers customers
quickly. With the absolute security technology of Vietcombank, customers can use the
service without worrying about hackers or information theft.
In late 2018 and early 2019, Vietcombank was the pioneer bank to launch contactless card
products (contactless card payment technology) in Vietnam. Up to now, we have launched
three contactless high-end credit cards with three different international card organizations.
THE STRENGTHS AND WEAKNESSES OF THE COMPANY
The strength: With a long history of operation, Vietcombank has affirmed its brand in the
commercial banking system in Vietnam. In addition, Vietcombank always focuses on the
quality of employees instead of the number and development of very high human
resources. This is the bank with the most active development and being profitable.
Vietcombank catches up with market trends, goals and interests for customers, focusing on
research, surveying customer needs from which to offer appropriate and specific retail
products for each sub-group. customer. They believe that with the increasingly competitive
financial market, understanding customer experience will be a measure of customer-bank
cohesion. Therefore, in all products and services of Vietcombank, they always focus on
customers and always look at the customer journey at the bank to meet the needs and
improve the customer experience. products at Vietcombank. Besides, facilities and service
quality are guaranteed. Vietcombank is a bank with a functional structure, helping the
company run and manage the departments, limiting business risks. Therefore, Vietcombank
always grows and brings high revenue.

22
The weakness: In addition to the strengths mentioned above, in a few small branches in
rural areas, products and services are limited. Vietcombank has few facilities and few
incentives for customers.

III. Interrelation of strengths, weaknesses and external macro factors:

1.Swot analysis:

S ( Strengths ) W (Weakness)
 - Strong brand  -The restructuring

 -Big property process lasts

 -The strong
 -Staff training is
management team
limited
 - Potential
 - Weak links with
wholesale banks
other banks
 -Have a wide
 -The organizational
network, large
model is heavily
market share
administrative
 -High-quality staff
 -Mixed
 -Is the foreign
asynchronous
currency center of
products
the bank

23
 O (Opportunities ) SO WO
 - International  - S1S2S3O2:  -W1W3W4O1O2:
integration Diversification Associate and
 -The economy is strategy into other cooperate with
developing at a areas domestic and
rapid rate of  -S1S2S5O2: foreign banks
urbanization  +Product  -W1W6O2:
diversification Diversify products
strategy and improve the
 +Differentiate by quality of products
the product quality and services
 -S1S2S3S7O1O2:
Integration: Extend
messaging and
links with foreign
banks
T (Threats) ST WT
 - International  -S1S2S3S4T1T2T3:  - W1W7T2T6:
Integration Differentiate by Diversification into
 -Competition from product quality: other areas
banks with similar improve service  -W3W4T2T3:
strategies. quality Cooperating with
 - The pressure to  -S1S2S3S4T2T3: other
improve Cooperative organizations and
technology Alliance -S1S2S5T5: banks
 -The legal system is Diversify activities

24
 incomplete
 -Alternative
products
 -Brain drain
Table 1: Swot analysis

2. Partnerships:
Vietcombank and FWD signed an exclusive agreement of 15 years of distribution of
insurance via banks in Vietnam. Under this agreement, Vietcombank will distribute FWD's
life insurance products. As part of the transaction, FWD also agreed to acquire
Vietcombank –Cardif("VCLI"). Both Vietcombank and FWD's partners are influenced by
external factors such as politics, law, economy, culture and society. However, both
companies also make different decisions when influenced by external factors. For example,
during the Covid-19 pandemic, the prime minister suspended all activities, gathering over
20 people, Vietcombank was forced to close all branches of the country. That led to a drop
in profits in the first quarter of 2020. However, FWD Vietnam has officially introduced the
new product "FWD Corona Insurance and hospital assistance". The product is designed to
increase customer protection during the COVID-19 epidemic season. Although during the
period of social isolation, customers participating in the product "FWD Corona Insurance
and hospital assistance" will receive an immediate 20 million VND in case of positive
diagnosis for Corona virus and paid to VND 300 million of deaths from Corona virus
infection. In addition, FWD also waives the 30 day waiting period for Corona virus-related
benefits. According to the General Statistics Office, the insurance business activity in the
first quarter of 2020 in Vietnam reached a high level with an estimated increase of 16%
compared to the same period last year. In which, life insurance premium increased by 21%,
non-life insurance increased by 8%. Life insurance companies have provided more flexible
product packages from time to time, increasing support packages to attract customers with
appropriate insurance policies, including FWQ Insurance Group.
25
D.CONCLUSION AND RECOMMENDATION:

I.Conclusion:

Through the above article, we have a better overview of Vietcombank about the strategic
vision of the assigned tasks as well as the positive and negative impacts of the macro
environment affecting the company by using use two models of 5 forces and PESTLE.
Achievements that businesses have brought, vision, mission, organizational structure of the
company, human resource management, brands, finance, fixed assets, market resources or
technology application. It is the foundation that helps us analyze the strengths and
weaknesses of the selected business, from which we consider whether this is a company
with growth potential, worth investing in and can beat. The competitors are not. When an
enterprise decides to invest, they must analyze and determine based on macro factors to
make that decision.

II.Recommendation:

It is no coincidence that Vietcombank outperforms most of the other banks in the industry.
Based on the analysis of external, internal environment and the cited statistics tables, it can
be seen that Vietcombank has the leading position of stock prices in stock exchange trading,
bringing high profits. best for investors, there are always strategies and goals that suit each
situation in the market. With serious research and investment process, Vietcombank is
showing many advantages in applying advanced technology in automatic processing of
banking operations, developing electronic banking products and services. On the basis of
high technology, we bring products and quality services to meet the needs of customers,
expand branches to reach more customers and bring the brand image abroad.
Vietcombank always strives, so over the years, Vietcombank has built a solid foundation,
stable development, creating momentum for a new breakthrough in the context of
integration and having tremendous achievements such as Forbes Vietnam's Best Listed

26
Company 2013-2017, Asiamoney's best bank brand in Vietnam in 2017 and so on.
Therefore, Vietcombank is worth investing in, having potential for development and
bringing high profits.

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