Other organization will also be analysed to compare all the features above including the importance of stakeholder with pvcombank

The structure of Pvcombank:...10 3.2 The interrelationship in Pvcombank’s structure:...11 CONCLUSION...13 REFERENCES...14 TIEU LUAN MOI download : skknchat@gmail.com... As a result, it i

TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

INTRODUCTION 2

MAJOR FIDING 3

Task 1: 3

1.1 The legal status and sector of Pvcombank: 3

1.2 The vision, mission, core values, goals, and objectives of Pvcombank: 4

1.3 Balanced Scorecard of Pvcombank: 5

Task 2: 6

2.1 Differencesbetween Pvcombank and Vietcombank: 6

2.2 The importance of stakeholders: 8

Task 3: 10

3.1 The structure of Pvcombank: 10

3.2 The interrelationship in Pvcombank’s structure: 11

CONCLUSION 13

REFERENCES 14

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EXECUTIVE SUMMARY

The report was about Pvcombank because it is a public company, therefore the amount of information that was published is very flexible to work with

Moreover, Pvcombank is getting more and more developed so by comparing Pvcombank with Vietcombank can help us have a clear picture of the potential of both bank

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study will focus on the size, legal status and sector in PVcomBank The next part is to describe vision, mission, core values, goals and objectives of PvcomBank and the

Balance Score Card model will be used as a tool to analyse the overall activities of PvcomBank Other organization will also be analysed to compare all the features above including the importance of stakeholder with Pvcombank Finally, the study will explain the structure and the function of Pvcombank

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MAJOR FIDING Task 1:

1.1 The legal status and sector of Pvcombank:

a Legal status:

According to textbook The Business Enviroment (BE,2006,p.200), An organization

is classified by the size of that organization, sector and legal status The “legal status” term is divided into 3 categories: Sole Trader, Partnership and Company/Organization

Sole Trader is a type of business which owned by one person and have no formal legal structure

Partnership is a business with more than one owner co-operate with the purpose of earning profits and they have to make a commitment that the company’s profits must be divided fairly

Company or Organization is managed by a board of directors that is elected

by the stockholders and different people are distincted into different role in order to keep to company well-functioned There are two kinds of company: Public limited company and Private limited company

As a result, it is obvious that Pvcombank is a public limited company because

they have shareholders relationship from in and outside of Vietnam

Shareholder Relations

Morgan Stanley; 6.66%

Vietnam Oil and Gas Group; 52.00%

Other organization; 41.34%

b Economic level of activity:

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Pvcombank belongs to Tertiary sector because Pvcombank provides a wide range

of banking services and product

1.2 The vision, mission, core values, goals, and objectives of Pvcombank:

a Vision:

The vision statement gives organization an aspirational description of what the organization plan to achieve and accomplish in the near future The vision of Pvcombank

is to become one of the top seven joint stock bank that has the most asset in Viet Nam in 2020

b Mission

The mission statement of Pvcombank is to become a bank which have a

professional team that capable of providing high quality products and services for the customers and continue to develop relationships with shareholders

c Core values:

Each company or organization, they have their own core values as the foundation

to accomplish the vision and mission of that company In Pvcombank, they have 4 main core values:

Customer is the central: Although creating profits and competing with competitors are important, they still have to consider the customers’ satisfactions and earn their beliefs

Human is the most valuable resource

Honesty is the first priority:

Efficiency is always valued:

d Goals and objectives:

Goals are set to keep track to the management of the company to its objectives Therefore, Pvcombank sets two main goals of their own: Become closer and closer to the customers to follow their statement “Gapless banking” and become the top unit in

financial and banking services

objectives have matched its goals

SMART

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Based the Smart evaluation of Pvcombank’s objectives, It shows that these objectives

above are not Smart Because of the lack of information about Moreover, It does not

relate enough to two objectives

1.3 Balanced Scorecard of Pvcombank:

According to Robert S Kaplan and David Norton (1990), “Balanced

Scorecard is a set of performance metrics derived from an organization's strategy,

expressed through a hierarchical point-to-point and individual rating system

Moreover, it also shows the balance of an enterprise in long-term BSC comprises

of various perspective which are innovation, customer, financial and learning and

growth.”

The table below describes the balanced scorecard of PVcomBank

- Total revenue: 5500 billions The growth of total assets

-Before tax profit: 65 billions VND

customers and developing the -Improve the customer’s

customers: Individual customers, SMEs customers, big firm customers

Result

- Total revenue: 6749 billions VND -Charter capital: 9000 billions VND -Before tax profit: 65.4 billions VND

N/A

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-Restructure the total assets and deal with debt

-Optimizing the working process

-Open the network -Promote and improve relationship with both domestic and foreign banks -Bring experience

to customers -Focus on supporting general strategy of the bank

Improve

Internal process the quality of service,

-Ensure the stabilization of the system, growth rate of the bank

-Bring more value to customers and long-term commitment to the bank

Help the customers approach information and find optimal service and product

-Reduce the processing time -Service, products of PVcomBank reached international level -Smart visa, mobile banking, internet banking

Establish new ATM network in Vietnam

-International standard:

ISO

27001, ITIL, PCI DSS -Solved 50000 calls from the center Open network service to 60 countries around the world

Transaction rate increase 260%, 3 times compare with 2015

-The Prime Minister approved the decision

of reconstructing the management

structure -Pvcombank received an award of effective marketing and communication campaign, creative website (ABF magazine from Singapore) Innovative retail bank

(International Finance Magazine Maintain the present on Vietnam Airlines’ flight

-Develop the quality of the staff

Task 2:

2.1 Differences between Pvcombank and Vietcombank:

-Compared to

2015, The number

of customer in

2016 increased by 10%

PVcomBank

seven joint stock bank that

has the most asset in Viet

Nam in 2020

Vietcombank

- Top 1 bank about retail and top 2 bank about wholesale in Vietnam

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to the customers to follow their statement “Gapless banking”

Become the top unit in financial and banking services in Viet Nam

- Top 300 banking service worldwide

-ROE increase from 13-15%

-The minimum ROA is 1%

-The total asset increase approximately 11%

-Profit before tax raise about 8%

-Total revenue in 2016 increased up to more than

100000 billions VND compared with 2015

Sustainability:

-In order to improve the security, PVcomBank spent more than 4 billions VND:

2 billions VND for education , 230 millions VND for health care, 550 millions VND for other

Sustainability:

-Vietcombank always support the poor people in remote areas, ethnic minorities areas 234.2 billions VND were funded

to support poor people

-Green Life programs had

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charity activities In Can Thơ province, fund 1 billions VND for supporting the poor, provide 1000 scholarships for students

PVcomBank also created NEU alumni portal and give scholarship to scholarship fund of Vietnam State Bank

been lauched in primary schools to raise the people awareness about inviroment -Moreover, policies about labor are also concerned, Vietcombank focuses on developing human resource and consider it as a key factor

to achieve success

2.2 The importance of stakeholders:

As definition in the textbook The Business Enviroment (BE,2006), stakeholder is a person, group or organization who can affect or be affected by company Stakeholders are divided into 3

types: internal stakeholders including the owner and the employees who work inside the company, external stakeholders for example government, consumers and all the outside factor

that affect the company, and

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connected stakeholders But this study will talk about three most important

stakeholders of Pvcombank:

Customers:

Customers can be considered as an external stakeholder There is no doubt that customers are one of the primary factor that have a direct influence on the company Pvcombank cannot exist if they do not have customers Moreover, Pvcombank is a public service company, therefore the customer service is very important If Pvcombank do not have good service, they will lose a large number of customers In order to have more customers, Pvcombank has many promotions such as compensation packages based on employees’ performance or the benefits come from holiday break and after hour activities Employees:

Employees are categorized in internal stakeholders They are not the investor but they have a direct impact on the job to create profit for Pvcombank As a result,

employees are one of the most important stakeholders of Pvcombank To push up the productivity of work, Pvcombank need to encouraged and set movivation for the

employees in many ways such as salary, skills development, insurance and welfare According to Pvcombank annual report in 2016, they said that: “Human is the most valuable resource.” PVcombank really respects their employees

Shareholders:

Shareholders have a place in external stakeholders categories Shareholders

assume essential parts in the organization since they have certain effect on the business in both immediate and backhanded ways In the restructure project of Pvcombank when the election of Board of Directors of Pvcombank was occured, shareholders can take part in and make decision of the inheritor in charge of public company An Investor Relation has created to make certain the consistency of the relations as well as to receive

commendation from shareholders

Conflicts are still unavoidable eventhough Pvcombank had put so much effort to please and satisfy the stakeholder In 2016, there was a problem that caught the

shareholders’ attention is that they still did not receive the bonus, the dividend from the bank To explain the problem, the head of Pvcombank

In Pvcombank, different policies are made up to meet the stakeholders’ interest

and expectation First, for the shareholder, in order to raise the shareholders’ trust and

make them keep on investing money into Pvcombank, they have to try to accomplish all

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of their objectives and goals Second, for the employees, Pvcombank shows their

consideration by offering some compensation pakages based on the performance of each

employee.Apart from that, they also create some benefits from holiday break or extra hour

activities to encourage their employee Thidly, for the customer’s demand, Pvcombank hold some special events annually to attract new potential customers and also to keep their current customers Moreover, they always try to keep up with the technology by using Lean 6 sigma to boost the working process and avoid unfortunate mistake, the aim is to provide the best quality service and the most convenience enviroment for the customers Finally, due to the fact that Pvcombank is a public joint stock bank, all of their

information and annual report are public in order to earn the customers’ beliefs and create

a good public image

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Task 3:

3.1 The structure of Pvcombank:

Pvcombank’s Organization chart

According to the organization chart of Pvcombank, it is obvious that they follows the functional structure and they divide into differerent hierarchy At the top of the chart

is the general shareholder who is the direct owner of Pvcombank The general

shareholders give order to the BOD (board of director), these order are affected by the

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internal audit then go to the supervision board The Board of Director is also influenced

by 6 following committees: HR committees, Alco committees, Credit committees, Risk management committees, Risk solutions committees, Debt committees Pvcombank has business centre, branches and transaction office, therefore they divide them into smaller functional departments: Debt, risk management, legals, finance and accounting,

information technology, Administrator office, human resource, operation, card

center,investment, treasury, large coroperate clients, SMEs clients and retail clients

Employees of each department focus on the specialty of the function of that department When they have come up with a plan, a strategy, it go back to Chief Executive Officer and turn the money flow into Credit Council

3.2 The interrelationship in Pvcombank’s structure:

Pvcombank want to create an efficient enviroment and best quality services for the customer Therefore, they divive the structure into different department and have two functions they can focus on: internal and external As a result, not only they can easily flow the money into both side of the company but also they are capable of controlling the resource that they wish to invest

Pvcombank focus on three department of the external business: Treasury, Investment, Operation The treasury department is where the money comes and goes

in order to control their produce and look after the currency status As a result, the Operation department operates the whole systems to control all the trading process releat to input, output, transactions that relates to the department The operation directly have influences on other departments, it means that all the decisions must come through Operation department After the decision approval, the investment department will review and reconstruct all the investment that meets Pvcombank expectation, look for the income opportunities by doing market research

For the internal business, all the departments are related to each other The Human Resource Department is in charge of the entire workforce such as wages, bonus, insurance, training for the benefits of employees in all departments The information technology department focus on updating the newest technology

trends and apply in different departments Finance and Accounting evaluate and control the trading activities while the Debt and the Risk Management predict and calculate the posibilities that might affect the organization Board of Direct is the

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