Assignment For Strategic Management - Explore Strategy For ACB Bank Vietnam

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MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
STRATEGIC MANAGEMENT – BMST5103
Determine the Strategies for ACB
Student Name: NGUYEN MANH HA
ID No: 15030
MBAOUM0313 - Class K08A
nguyen.mh.star@gmail.com July 2014

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QUESTIONS
Investigate a firm in Vietnamese business setting through questionnaire
survey, interviews, or observations, or the triangulation of these methods in
order to:
1) Find out and assess its mission statement, vision statement, and core
values (5%)
2) Build an EFE Matrix and a CPM Matrix for this firm (10%)
3) Build IFE Matrix (5%)
4) Develop a SWOT Matrix (20%)
5) Develop a QSPM Matrix (15%)
6) Determine its strategies, possibly based Michael Porter’s Five Generic
Strategies (10%)
7) Design a Balance scorecard for this firm (15%)
The Author would choose the ACB (Asia Commercial Joint Stock Bank) for his
further study and building the strategic matrices for ACB strategy. The literature
review will be embedded with each matrix analysis.

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TABLE OF CONTENTS
I. INTRODUCTION............................................................................................................... ..4
II. EFE MATRIX FOR ACB BANK……………………………………………………….....7
III. CPM MATRIX FOR ACB ..………………………………………..…9
IV. IFE MATRIX FOR ACB ................................................................................................... .13
V. SWOT MATRIX FOR ACB BANK ……………………………………..........14
VI. DEVELOP QSPM MATRIX FOR ACB BANK………………………………………....16
VII. DETERMINE ITS STRATEGIES, BASED MICHAEL PORTER’S FIVE
GENERIC STRATEGIES FOR ACB BANK………………………………………… ....19
VIII. DESIGN A BALANCED SCORECARD FOR ACB BANK…………………………… 21
IX. CONCLUSION & REFERENCES…………………………………………………….24, 25

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I. INTRODUCTION:
Asia Commercial Joint-Stock Bank (ACB) was established under the Business License
No. 0032/NH-GP dated 24 April 1993 by the State Bank of Vietnam and Establishment Permit
No. 533/GP-UB dated 13 May 1993 by the People’s Committee of Ho Chi Minh City. ACB
started operations on 04 June 1993.
Year 2005: Standard Chartered Bank (SCB) signed an agreement with ACB on a comprehensive
technical assistance, and became ACB’s strategic shareholder. ACB carried out the second phase
of IT modernization program, including (i) server upgrading, (ii) replacement of current
bankcard transaction processing software by a new one compatible with the core banking
platform and (iii) ATM installation.
Year 2007: ACB strongly expanded the branch network, with 31 new branches and sub-
branches and set up ACB Leasing Company. Besides that, ACB strengthened it cooperation with
various partners such as Open Solution (OSI) – Thien Nam for upgrading the core banking
solution, Microsoft Group on applying IT to operations and management, and Standard
Chartered Bank on issuing bonds. Finally, ACB succeeded in the issuance of 10 million shares
worth VND 100 billion par value with proceeds of over VND 1,800 billion
Year 2008: As of 8 October, ACB chartered capital was increased to VND 4,651,615 billion.
Moreover, the total nationwide branches and sub-branches have reached a number of 178.
Year 2010: In 2010, ACB made forecasts more often on business conditions for appropriate
decision-making. Also, flexible solutions were made for strict compliance with state regulating
policy as well as ensuring safe and effective operations. Prominently, the Board of Directors in
Quarter III had a profound discussion on new operating strategies. ACB’s Strategic Directions
for the period from 2011 to 2015 and Vision to 2020 was promulgated in January. Moreover,
ACB implemented a customer relationship management system, built a standard Data Backup
Center in Dong Nai Province, and developed non-traditional distribution channels by
transforming the Electronic Banking Department and Telesales Sub-department into sales units.
Year 2011: In January 2011, the Strategic Directions for the Period 2011-2015 and Vision to
2020 was issued. One focus is the transformation of the bank’s corporate governance practice in
the direction of compliance with Vietnamese rules and regulations and application of
international best practices. This program has the following major contents: (1) Clear definition

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and separation of the roles and responsibilities and decision making authorities of the board,
board committees and the management; (2) Strengthening the directing role of the Board of
Directors; (3) Enhancement of the role and strengthening the power of the Supervisory Board,
improvement of the capacity of the Internal Auditing Department, and development of an
appropriate risk management framework. At year-end, ACB established an enterprise module
data center in HCMC with a total investment value of nearly 2 million USD. This is one of the
first data centers of their kind built in accordance with international standards in Vietnam. In
addition, ACB Gold Manufacturing Center was the first business in the sector both certified by
QMS Australia for its quality management system meeting the standards of ISO 9001:2008 and
recognized by Accreditation of Vietnam for meeting standards of ISO/IEC 17025:2005 in testing
and calibrating capacity (determining gold content). This was the first step for ACB Gold
Manufacturing Center to build a gold refining plant and gold age assessing lab attaining
international standards in the future. In the year, ACB inaugurated 45 additional branches and
sub-branches.
1.1. ACB ownership structure
Shareholder Name Ratio
Standard Chartered APR Limited 9.04%
Connaught Investors Limited 7.49%
Dragon Financial Holdings Limited 7.02%
Standard Chartered Bank (Hong Kong)
Limited
6.42%
Dang Ngoc Lan 4.23%
Nguyen Duc Kien 3.47%
Tran Huy Hung 3.16%
Others 59.16%
1.2. COMPANY’S VISION
Asia Commercial JS Bank constantly drives itself to be a leading commercial bank inVietnam,
characterized by its pro-active operations, diversified product portfolio, widespread and
diversified distribution network, modernized technology, safety and profitable performance,
sustainable growth, and professional, ethical employees
1.3. COMPANY MISSION
9.04%
7.49%
7.02%
6.42%
4.23%
3.47%
3.16%
59.16%
Ratio
Standard Chartered
APR Limited
Connaught Investors
Limited
Dragon Financial
Holdings Limited
Standard Chartered
Bank (Hong Kong)
Limited
Dang Ngoc Lan

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Asia Commercial JS Bank priorly to create sustainable investment value for owners,
shareholders, partners and customers based on the professionalism of investors.
1.4. COMPANY OBJECTIVES
ACB want to become one of top 3 finance and banking groups of Vietnam in assets, business
performance and market capitalization.
ACB has always developed right strategy and suitable steps toward its goals of achieving robust,
sustainable and efficient growth for the bank. The priority was given to the following core areas:
First: Develop retail banking as core business to provide banking services and facilities to serve
the mass consumer and SME market.
Second: Invest for Product Innovation and Modern Banking Technology
Third: Invest in People
Forth: Establish international standards in banking governance and management
Fifth: enhance international cooperation with International FI and banks
ABC Core Values
Under the pressure of competition and rising deposit interest rate, ACB has applied flexible
measures to ensure capital growth and higher income from credit activities. The ACB continued
to enjoy the highest level of profitability among commercial joint stock Banks. Following are
some core values of ACB.
 Place customer interest and satisfaction at first priority
 Value addition to the stakeholders through attaining excellence in banking operation
 Maintain high ethical standard and transparency in dealings
 Committed to protect the environment and ensuring higher degree of motivation and
dignified working environment for human capital and respect optimal work-life balance
1.5. ACB BUSINESS SCOPE
The main business activities of ACB and subsidiaries (the Bank and subsidiaries referred
to as the Group) is to mobilize short, medium and long-term capital in the form of time deposits,
demand deposits and certificates of deposits; receive investment funds; receive capital from

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domestic and overseas financial institutions; grant short, medium, and long-term loans; discount
commercial paper, bonds and valuable documents; invest in securities and companies; provide
settlement services to customers; deal in foreign exchange and gold; provide international
settlement services, factoring, to act as an agent and provide consultancy services for securities
investment; provide securities deposit services, corporate finance consultancy services,
underwriting services, asset management services, leasing and other banking services
II. EFE MATRIX FOR ACB BANK
External Factor Evaluation (EFE) matrix method is a strategic management tool often used
for assessment of current business conditions. The EFE matrix is a good tool to visualize and
prioritize the opportunities and threats that a business is facing. Accordance to Fred F. David, an
EFE matrix helps strategists and managers generate and evaluate the External factors assessed in
the EFE matrix that are subject to the will of social, economic, political, legal and other external
forces.
Here are five steps to do EFE Matrix advised by Fred F. David
1. Lists key external factors including both opportunities and threats that affect the firm and its
industry.
2. Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very important).
The sum of all weight assigned to the factors must equal 1.0.
3. Assign a rating between 1 and 4 to each key external factor to indicate how effectively the
firm’s current strategies respond to the factor, where 4 = the response is superior, 3 = the
respond is above average, 2 = the respond is average and 1 = the respond is poor.
4. Multiply each factor’s weight by its rating to determine a weighted score.
5. Sum the weighted scored for each variable to determine the total weighted score for the
organization.
Following the above steps, the author builds the EFE for the ACB (Asia commercial Bank) as
stated in the table 1.
Table 1: EFE matrix or External Factor Evaluation for ACB

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Key External Factors Weight Rating
Weighted
Score
Opportunities
1
The growth of Import & Export activities create the
opportunities for exchange currency & gold
8% 2 0.16
2
The huge Vietnamese oversea tend toward sending
money to Viet Nam for their investment & for their
relatives in Vietnam, ACB could take advantage to act
as agent for foreign exchange services (Western union)
12% 3 0.36
3
The Information Technology develop, ACB could take
advantage to open more networking nationwide and
developing the online services.
10% 4 0.4
4
ACBs would take advantage of the challenge of stock
market to attract the potential customers
5% 2 0.1
5
The development of security sectors are higher, ACB
could open its insurance company
7% 2 0.14
6
ACB could develop by corporate with other
commercial Banks
5% 1 0.05
7
Transaction though visa card increase 60.6% (cited
Lorijon Bacchi director of Visa) proving that
Vietnamese people tend to use Visa card for their
payment, ACB could develop & exploit this potential
segment.
9% 4 0.36
Threats
8
Government encourages the oversea Banks to invest in
Vietnam lead to the more tough competitions between
the Banks (eg. 100% HSBC or ANZ with strong
financial capability, diversification in products &
services)
6% 3 0.18
9
Foreign Banks with strong financial capability willing
to buy out the share of ACB, this lead to the risk of
merge and acquisition, and taking over & control the
Bank.
8% 4 0.32
10
Due to the economic crisis and public unrest
(contributed by the invasion of China in the sea) lead
to reducing the rate of capital mobilization
3% 1 0.03
11
The competitors tend to lure the best staff of ACB,
leading to the jump of good employees.
4% 2 0.08
12
Bank competitors have rush in interest rate incentive
so several customers tend to change Bank system.
5% 3 0.15
13
Real estate & Stock market are unstable condition
affect to ACB investment decisions.
4% 3 0.12
14
The development of modern information technology
and development of media & media crisis contribute to
reduce the value and prestige of ACB in community,
7% 2 0.14

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customer’s faith upon the ACB reducing (eg. rumor
that leaders of ACB arrested cause of huge
withdrawing from customers)
15
Economic unstable, ACB will face liquidity risk when
the inflation tend to increase, and cost of capital also
increase by tightening monetary policy of state Bank.
5% 3 0.15
16 Unforeseen risks (natural disaster, fire, safety…) 2% 1 0.02
Total 100% 2.76
Based on the analysis, the total weighted score of 2.76 indicates that the business has slightly
more than average ability to respond to external factors. Looking back to the factor list and
assigned weight for each factor, we can see the most important factor to being successful in this
business is ―Vietnamese oversea tend toward sending money to Viet Nam for their investment &
for their relatives in Vietnam, ACB could take advantage to act as agent for foreign exchange
services (Western union)‖ as indicated by 12% (0.12) weight, the highest score. Also, the total
weight 2.76 proving that the ACB are doing pretty well, taking the advantage of external
opportunities and avoiding the threats facing the Bank. There is absolutely room for more
improvement, though, because the highest total weight score would be 4.0. ACB would needs
exploiting Western union opportunity and ―Foreign Banks with strong financial capability
willing to buy out the share of ACB, this lead to the risk of merge and acquisition, and taking
over & control the Bank‖ threat.
III. CPM MATRIX FOR ACB BANK
According to Fred F.David stated, The Competitive Profile Matrix (CPM) identifies a firm’s
major competitors and its particular strengths and weaknesses in relation to a sample firm’s
strategic position. The weights and total weighted scores of CPM Matrix and an EFE have the
same meaning. However, critical success factors in a CPM include both internal and external
issues, so the rating refers to strength and weaknesses compared the firm and its rivals, where 4
= major strength, 3 =minor strength, 2 = minor weakness and 1 = major weakness. In a CPM,
the ratings and total weighted scores for rival firms can be compared to the sample firm. This
comparative analysis provides important internal strategic information. To build the CPM Matrix
for ACB, the author would like to summarize the synthesized information from Annual Reports
and Company Data of the companies in period 2011-2013. The direct competitors of ACB

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currently are both State-owned Banks, State Commercial Banks and Commercial bank such as
VPBank, Techcombank, SeABank, SacomBank, EximBAnk, OceanBank, MB, VIB Bank.
Table 2: Chartered Capital of Some Commercial Banks To 2013
Name of Banks ACB VPBank Techcom. SeABank SacomBank VIBBank
Charter Capital
(Billion VND)
9,376 6,347 8,878 5,466 12,425 4,250
Table 3: Main criterion of ACB and its Three Random Competitors in 2013
Criterion to 2013
(Billion VND)
ACB VPBank TechcomBank SacomBank
1 Total Assets 166,599 121,264 158,897 161,377
2 Total Outstanding Loan 107,190 52,456 70,275 110,297
Total Debt(must be paid) 154,236 113,537 144,976 144,313
3 Total Fund mobilization 150,988 59,500 119,978 143,800
4 Charter Captial 9,376 6,347 8,878 12,425
5 Total profit before taxation
(Pre-tax profit)
1,035 1,354 878 2,960
6 Employees (person) 8,791 6,796 7,290 11,662
7 Annual average revenue of
employees (Million VND)
169 180 - 192
8 Branches and sub-branches
(Units)
346 197 315 414
9 Presence at 64 Provinces,
Cities (Units)
47 33 - -
10 ROA (%) 0,6 0,91 1,75 1,18
11 ROE (%) 8,2 14 25,2 11,52
12 Bad Debt Ratio (%) 3 2,81 3,65 1,45
13 Outstanding Loan/ Fund
mobilization (%)
70 88 58,6 76
14 Outstanding loan/Total 64 43 44 68

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Assets (%)
15 Fund mobilization/ Total
Assets (%)
90 49 75.5 89
16 Total Dept/ Total Asset (%) 92 94 91 89,4
ROE & ROA of Some Commercial Banks
(Source: STB,BVSC, 2012)
Table 4: The Fund Mobilization situation of Commercial Banks period 2011-2013
Fund Mobilization
(Billion VND)
ACB VPBank TechcomBank SacomBank
2011y 185,637 71,059 136,781 111,513
2012y 125,233 60,000 111,462 107,746
2013y 150,988 59,500 119,978 143,800
Based on the information analysis on main activities of Banks such as ACB, VPBank,
Techcombank, SacomBank, the Author builds the CPM matrix for ACB specified as following:
Table 5 : Competitive Profile Matrix – CPM for ACB

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ACB VPBank Techcombank SacomBank
Sussess critical
Factor
Weight Rating Weighted
Score
Rating Weighted
Score
Rating Weighted
Score
Rating Weighted
Score
1. Total Assets 8% 4 0.32 3 0.21 3 0.21 4 0.32
2. Outstanding Loan 7% 3 0.21 2 0.14 2 0.14 3 0.21
3. Charter Capital 9% 3 0.27 3 0.27 3 0.27 4 0.36
4. Total Fund Mob. 8% 4 0.32 2 0.16 3 0.24 4 0.32
5. Bad Debt (NPL) 8% 2 0.16 3 0.24 1 0.08 4 0.32
6. ROE % 8% 3 0.24 4 0.32 4 0.32 3 0.24
7. Quality of
Services
15% 3 0.45 2 0.30 3 0.45 2 0.30
8. Brand Reputation 15% 2 0.30 2 0.30 3 0.45 3 0.45
9. Human Resource 7% 3 0.21 1 0.07 4 0.28 2 0.14
10. Networking &
Branches
15% 3 0.45 1 0.15 3 0.45 4 0.60
Total weighted
Score
100% 2.93 2.16 2.89 3.26
According to the above analysis of CPM matrix we can see the main competitive issues of ACB
with other Banks as illustrated as following:
The SacomBank is the most competitive bank with the total score is 3.26 point. SacomBank has
the strengths and competitive capability in almost successful critical factors
ACB is the Bank has competitive capability right after Bank Saco bank with total score is 2.93
point, the successful critical factors that the ACB has strengths in controlling & evaluating
ROE% and mobilization the Fund Capital, and minor strength in quality services and its
networking and branches.
Techcombank has total weighted score 2.89 points, ranks third after ACB with its major
strengths in human resources and return on equity of Techcombank rather high compare to others
Banks, others minor strengths of Techcombank are, Networking & branches, Quality of services,
Brand reputation.
VPBank ranks fourth and having lowest weighted score in comparative Banks, VPBank has
small networking and branches & human resource, quality services is average. VPBank find

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difficulty in mobilization fund capital for its financial operations & orientation for development
in the short-term strategies.
IV. IFE MATRIX OR INTERNAL FACTOR EVALUATION FOR ACB BANK
An IFE Matrix or Internal Factor Evaluation ―summarizes and evaluates the major strengths and
weaknesses in the functional areas of a business‖ (Fred R. David, 2013). A thorough
understanding of the factors included is more important than the actual numbers. The strategy-
formulation tool is similar to EFE Matrix. The thing to be noted is that when assign a 1 to 4
rating to each factor has different meaning, 1 = a major weakness, 2 = a minor weakness, 3 = a
minor strength and 4 = a major strength. The strengths must receive a 3 or 4 rating and
weaknesses must receive a 1 or 2 rating. Based on the Annual Report of ACB period 2011 - 2013
and synthesized information from many related primary data sources of company, the author
builds the IFE Matrix for the firm as the following table:
Table 6: IFE Matrix for ACB
Internal Factor Evaluation
Strengths Weight Rating
Weighted
Score
1 Total Asset of ACB 7% 4 0.28
2 Charter Capital 7% 3 0.21
3 Networking & Branches 8% 3 0.24
4 Human resource strategy 8% 4 0.32
5 Fund Mobilization capability 10% 4 0.40
6 Quality of Services 11% 3 0.33
7 Diversification products & services 9% 3 0.27
Weakness
1 Return on Asset 7% 2 0.14
2 Organization Model 4% 1 0.04
3 Organization culture 6% 1 0.06
4 Renovate technology 8% 2 0.16
5 Bad debt ratio 5% 1 0.05
6 Brand reputation 6% 1 0.06
7 Total debt 4% 2 0.08
Total Weighted Score 100% 2.64
According to the above analysis of IFEmatrix we can see the some issues of ACB with other
Banks as illustrated as following:

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ACB has strong capital resource, ACB has its strong strategy partnership, shareholders such as
Standard Chartered APR Limited (Banks), Connaught Investors Limited (Investor), Dragon
Financial Holdings Limited (Investor), Standard Chartered Bank (Hong Kong) Limited (Bank),
and each these shareholder hold a greater 5% of share.
ACB possesses a strong human resource, ACB’s staff of highly qualified with over 90% possess
university degree and post graduate supported by IFC (an international financial company) for
professional training and this one of the reason ACB successes in mobilizing the fund capital.
ACB is one of the leading Banks in Vietnam with offices located in 64 provinces of Vietnam
(over 133 branches), diversification in products & services
ACB is member of SWIFT (Social for worldwide interbank Financial Telecommunication);
guarantee to serve the customers 24/7(twenty four hours and from Monday to Sunday)
ACB should improve the technology, and improving the bad debt as this ratio is low compare to
other banks.
In general, ACB is still in the safety zone as analysis by the IFE matrix, the total weighted score
2.63 above the average point 2.5 indicate that ACB has a strong internal position.
V. SWOT Matrix for ACB BANK
SWOT matrix or Strengths-Weaknesses-Opportunities—Threats Matrix is an important
matching tool that helps manager develop four types of strategies: SO strategy, ST Strategy &
WO strategy, WT strategy. Matching the key internal and external factors is required good
judgment, knowledge and critical thinking.
Based on the analysis of IFE matrix and EFE matrix, all the key internal factors and the external
factors will be used to build SWOT matrix and the matching strategies for the internal & external
factors for ACB.

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SWOT Matrix For ACB
Strengths
1. Total Asset of ACB
2. Charter Capital
3. Networking & Branches
4. Human resource strategy
5. Fund Mobilization capability
6. Quality of Services
7. Diversification products &
services
Weaknesses
1. Return on Asset
2. Organization Model
3. Organization culture
4. Renovate technology
5. Bad debt ratio
6. Brand reputation
7. Total debt
Opportunities
1. The growth of Import & Export
activities create the opportunities
for exchange currency & gold
2. The huge Vietnamese oversea tend
toward sending money to Viet
Nam for their investment & for
their relatives in Vietnam, ACB
could take advantage to act as
agent for foreign exchange
services (Western union)
3. The Information Technology
develop, ACB could take
advantage to open more
networking nationwide and
developing the online services.
4. ACBs would take advantage of
the challenge of stock market to
attract the potential customers
5. The development of security
sectors are higher, ACB could
open its insurance company
6. ACB could develop by corporate
with other commercial Banks
7. Transaction though visa card
increase 60.6% (cited Lorijon
Bacchi director of Visa) proving
that Vietnamese people tend to use
Visa card for their payment, ACB
could develop & exploit this
potential segment.
SO Strategies:
1. Matching (S1,S2,S7,O1,O6) ACB
with its strong finance resource
would takes its opportunity open
one more exchange currency &
gold platform
2. Matching (S3,S4,O5,O6) ACB
could open a insurance company
expand the foreign exchange
services
improving and expand the Visa
card, MasterCard to the middle
class and high class people.
WO Strategies:
1. Matching (W1,W5,W7,O1,O5)
ACB increase the activities in
exchange currency & gold, open
insurance company to improve
bad debt ratio and the return.
2. Matching
(W2,W3,W4,W6,O3,O6) ACB
could cooperate with other
Bank system to improve the
company image, and improving
the technology to enhance its
product & services online
transactions
Threats
1.Government encourages the
oversea Banks to invest in
Vietnam lead to the more tough
competitions between the Banks
ST Strategies:
1. Matching (S1,S2,S5,T1,T2,T4),
ACB could take advantage its
strength in financial resource,
capability in mobilization the fund
WT Strategies:
1. Matching
(W2,W3,W4,W5,T3,T5,T7),
ACB should rebuild
organization structure, refresh

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(ex. 100% HSBC or ANZ with
strong financial capability,
diversification in products &
services)
2.Foreign Banks with strong
financial capability willing to buy
out the share of ACB, this lead to
the risk of merge and acquisition,
and taking over & control the
Bank.
3.Due to the economic crisis and
public unrest (contributed by the
invasion of China in the sea) lead
to reducing the rate of capital
mobilization
4.The competitors tend to lure the
best staff of ACB, leading to the
jump of good employees.
5.Bank competitors have rush in
interest rate incentive so several
customers tend to change Bank
system.
6.Real estate & Stock market are
unstable condition affect to ACB
investment decisions
7.The development of modern
information technology and
development of media & media
crisis contribute to reduce the
value and prestige of ACB in
community, customer’s faith upon
the ACB reducing (ex. rumor that
leaders of ACB arrested cause of
huge withdrawing from customers)
8.Economic unstable, ACB will face
liquidity risk when the inflation
tend to increase, and cost of capital
also increase by tightening
monetary policy of state Bank.
9.Unforeseen risks (natural disaster,
fire, safety…)
capital to improve its abilities,
training employees, corporate
with other commercial Banks to
reduce the risk of M&A and
compete with 100% foreign
Banks.
2. Matching (S3,S4,S5,S6,T3,T6,T8)
ACB has talent in mobilize the
fund capital, and its networking &
branches is quite good, ACB
could enhance the quality of
product & service to access more
the potential customers in
consumers or looking for new
segmentation such as agriculture
segmentation increasing its
competitiveness.
3. Matching (S3,
S4,S6,S7,T5,T7,T8), ACB
research & develop and diversify
the new products and services to
serve the potential customers.
the company image, cutting the
in-efficiency operations,
focusing on mobilization fund
capital supporting the
investment capital and enhance
the liquidity.
VI. DEVELOP QSPM MATRIX FOR ACB BANK

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The QSPM matrix or Quantitative Strategic Planning Matrix is analytical technique designed to
determine the relative attractiveness of feasible alternative actions. QSPM matrix allows
strategists to evaluate alternative strategies objectively, based on previously identified external
and internal critical success factors. The components of QSPM consist of: Strategic Alternative,
Key Factors, Weights, Attractiveness Scores (AS), Total Attractiveness Scores (TAS) and the
Sum Total Attractiveness Scores. The range for AS is 1 = not attractive, 2 = somewhat
attractive, 3 = reasonable attractive and 4 = highly attractive. The way to do QSPM Matrix
somehow is similar to build EFE and IEF Matrix. From the EFE, IEF and SWOT Matrix stated
above, the author suggests two alternatives strategies for ACB.
- Developing & Renovating Conventional Market Strategy
- Taking a M&A Chance Strategy
Table 7: QSPM Matrix for ACB
QSPM MATRIX
Developing
&
Renovating
Conventional
Market
Taking a
M&A chance
Strengths Weight AS TAS AS TAS
1. Total Asset of ACB 7% 2 0.14 2 0.14
2. Charter Capital 7% 4 0.28 1 0.07
3. Networking & Branches 8% 3 0.21 2 0.16
4. Human resource strategy 8% 3 0.24 3 0.24
5. Fund Mobilization capability 10% 4 0.40 1 0.10
6. Quality of Services 11% 3 0.33 1 0.11
7. Diversification products & services 9% 4 0.36 1 0.09
Weaknesses
8. Return on Asset 7% 2 0.14 1 0.07
9. Organization Model 4% 1 0.04 3 0.03
10. Organization culture
6%
3 0.18 2 0.12

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11. Renovate technology
8%
4 0.24 2 0.16
12. Bad debt ratio
5%
1 0.05 3 0.15
13. Brand reputation
6%
4 0.24 4 0.24
14. Total debt
4%
2 0.08 2 0.08
SubTotal 100% 2.93 1.76
Opportunities
15. The growth of Import & Export activities create the
opportunities for exchange currency & gold
8% 3 0.24 1 0.08
16. The huge Vietnamese oversea tend toward sending
money to Viet Nam for their investment & for their
relatives in Vietnam, ACB could take advantage to
act as agent for foreign exchange services (Western
union)
12% 3 0.36 2 0.24
17. The Information Technology develop, ACB could
take advantage to open more networking nationwide
and developing the online services
10% 3 0.30 2 0.20
18. ACBs would take advantage of the challenge of
stock market to attract the potential customers
5% 2 0.10 3 0.30
19. The development of security sectors are higher, ACB
could open its insurance company
7% 2 0.14 2 0.14
20. ACB could develop by corporate with other
commercial Banks
5% 3 0.15 1 0.05
21. Transaction though visa card increase 60.6% (cited
Lorijon Bacchi director of Visa) proving that
Vietnamese people tend to use Visa card for their
payment, ACB could develop & exploit this potential
segment.
9% 3 0.27 2 0.18
Threats
22. Government encourages the oversea Banks to invest
in Vietnam lead to the more tough competitions
between the Banks (ex. 100% HSBC or ANZ with
strong financial capability, diversification in products
& services)
6% 4 0.24 2 0.12
23. Foreign Banks with strong financial capability
willing to buy out the share of ACB, this lead to the
risk of merge and acquisition, and taking over &
control the Bank.
8% 1 0.08 4 0.32
24. Due to the economic crisis and public unrest
(contributed by the invasion of China in the sea) lead
to reducing the rate of capital mobilization
3% 2 0.06 2 0.06
25. The competitors tend to lure the best staff of ACB,
leading to the jump of good employees
4% 3 0.12 1 0.04

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26. Bank competitors have rush in interest rate incentive
so several customers tend to change Bank system
5% 3 0.15 1 0.05
27. Real estate & Stock market are unstable condition
affect to ACB investment decisions
4% 3 0.12 1 0.05
28. The development of modern information technology
and development of media & media crisis contribute
to reduce the value and prestige of ACB in
community, customer’s faith upon the ACB reducing
(ex. rumor that leaders of ACB arrested cause of
huge withdrawing from customers)
7% 3 0.21 1 0.07
29. Economic unstable, ACB will face liquidity risk
when the inflation tend to increase, and cost of
capital also increase by tightening monetary policy of
state Bank
5% 2 0.10 1 0.05
30. Unforeseen risks (natural disaster, fire, safety…) 2% - -
Subtotal 100% 2.64 2.05
Sum Total Attractiveness Score 5.57 3.81
Based on the doing calculation the QSPM matrix, The Author conclude that ACB should pursue
the Developing & Renovating Conventional Market Strategy is the best option, with more
market penetration. This is given by the Sum Total Attractiveness Score figure the Developing &
Renovating Conventional Market Strategy 5.57 points higher than Taking a M&A Chance
Strategy as small score 3.81 points.
VII. DETERMINE ITS STRATEGIES, POSSIBLY BASED MICHAEL PORTER’S FIVE
GENERIC STRATEGIES FOR ACB BANK
Porter's generic strategies framework constitutes a major contribution to the development of the
strategic management literature. Generic strategies were first presented in two books by
Professor Michael Porter of the Harvard Business School (Porter, 1980, 1985). Porter (1980,
1985) suggested that some of the most basic choices faced by companies are essentially the
scope of the markets that the company would serve and how the company would compete in the
selected markets

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Michael Porter’s Five Generic Strategies, Michael Porter has argued that a firm’s strengths
ultimately fall into one of two headings: Cost advantage and differentiation. By applying these
strengths in either a broad or narrow scope, there generic strategies result is that Cost
relationship, differentiation & focus. These strategies are applied at all business unit level.
Following table is illustrates Porter’s generic strategies:
Type 1: Cost Leadership – Low cost; Type 2: Cost Leadership – Best Value; Type 3:
Differentiation; Type 4: Focus – Low Cost; Type 5: Focus – Best Value.
Table 9: Main Aspects Michael Porter’s Five Generic Strategies
Cost
Leadership
Differentiation Focus
Large
market
Type 1
Type 2
Type 3 -
Small
Market
- Type 3 Type 4
Type 5
Followings are some information analysis of the Bank industry market based on the Porter’s 5
(five) force Model. These will help the ACB choose the most attractive strategy.
Competitive
Rivalry in
Bank
Industry
Bargaining
power of
Customers
Theat of
Substitute
Products
Threat of
new
Entrants
Bargaining
power of
Supplies

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- Threat of new Entrants in banking industry is low because of the government regulations
& capital requirement strictly, other factors also affecting the threat of new entry barriers
such as Government Licensing, Skills management, high initial investment, entry of foreign
Banks.
- Bargaining power of suppliers is high, it concerning to the customer deposits, mortgage
loans & securities or loans from other financial institutions. Other factors affecting to
bargaining power such as providers of funds, interest rates, valuations.
- Bargaining power of customer or buyers are high, it come from the individual customer,
customer loyalty & the technology. Other factors effecting such as long term finance, Bank
competitors, retail lending, margin & volumes.
- Competitive rivalry is high, the banking industry is considered high & intense competitive,
high risk of M&A, factors affecting such as too many players of same size & similar
strategies, less product differentiation, price competition, low market growth rates, barriers
for exit are high.
- Availability of substitutes is medium, largest threats of substitution are usually come from
the non-financial competitors, investors. Products such as insurances, mutual funds, fixed
income securities as offered by non- banking companies, factors affecting threats of
substitutes such as close customer relationships, switching cost, conservative customers.
As the overview & analysis of QSPM and aspects Porter’s Five forces model, the Author
suggests ACB should deploy the Focus Strategy Type 4: Focus – Low Cost; Type 5: Focus –
Best Value.
ACB continue to focus on Developing & Renovating Conventional Market Strategy, ACB
concentrate on a particular of a group customers or niche group (consumers, manufactures,
enterprises), ACB Bank should design a specific product line segments to serve a well-define
market for example foreign exchange platform, mobile money, online payment platform or
services similar to money gram, western union.

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VIII. DESIGN A BALANCED SCORECARD FOR ACB BANK
The Balanced Scorecard developed in 1993 by Harvard Business School professors Robert
Kaplan and David Norton, and refined continually through today, the Balanced Scorecard is a
strategy evaluation and control technique. An effective Balanced Scorecard contains carefully
chosen combination of strategic and financial objectives tailored to the company’s business as a
tool to manage and evaluate strategy. The Balanced Scorecard approach to strategy evaluation
aims to balance long-term with short-term concerns, to balance financial with nonfinancial
concerns, and to balance internal with external concern - Fred F. David.
Table 11: Main aspects of the Balanced Scorecard
Based on the general information and extracted data from annual financial report 2013 of ACB
Bank, with the analysis of the EFE matrix, IFE matrix, SWOT matrix, and QSPM matrix, the
Author would like to design the Balanced Scorecard for ACB bank as showed in table 12.
Table 12: BALANCED SCORECARD FOR ACB
Area of Objectives Measure or Target Time Expectation Primary Responsible
Customers: Lower Advertised
interest rate

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1. Competitive product
offers
Number of product
offerings per year/ Sales
volume
Expect to increase
2% -5% period
2015-2017
2. Competitive pricing Cost of doing business /
competitive price
comparisons
Expect to reduction
3% period 2015 -
2017
3. High quality service Number of complaints /
customer satisfaction
rating
Decrease the
numbers of
complaints 5% year
2015
Managers/employees: Adjust interest rate as
needed
1. Competitive
compensation
Annual market review Increase 5% year
2015-1016
2. Participation in
organization
Bonus pay per person
performance
Increase 4% yearly
3. Improve job skills Training completed Increase 10%
yearly
4. Quality evaluation of
performance
Comparison to best
standards
Evaluate yearly
5. Increase upward career
movement
Number of internal
promotions
Increase 3%
Community /Social
Responsibility:
1. Provide community
support activities
Extent of employee
participation
Implementing in
2015
2. Act as a good
corporate citizen
Extent employees vote /
extent employees
support outside
activities
Implementing in
2014 afterward
Financial /
shareholders:
Lower interest rate
and leading to increase
lending

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1. Achieve asset growth
ratio
Asset growth rate Expect 10% yearly
2013y 166,559
Billion VND,
expect 2014
183,215Bilion
VND
2. Achieve ROE% Net interest margin /
non-interest expense
ROE % 2013y
0.6%, expecting
2014y increase
90% is 1,14%
respectively
3. Achieve ROA% Net interest margin /
non-interest expense
ROA% 2013y
reaching 8.2%,
expecting 2014y
increase 90% is
16% respectively.
4. Achieve efficiency
ratio
Overhead expenses Increase 5%
5. Loan loss ratio Number of problem
loans
Reduction 10%
IX. CONCLUSION:
Based on the deploying of EFE matrix, IFE matrix, SWOT matrix, and QSPM matrix, and
designing the Balanced Scorecard for ACB, the Author suggest the best strategy would be
focusing on the conventional market. There are some orientations for ACB such as customer
orientation, sustainable financial growth, efficiency and effectively, business ethics. ACB
business strategy for period 2014-2017y, firstly, ACB continuing concentrate on the middle &
high income clients segmentation, with strategy is attracting the new clients and retaining the old
customers. ACB provides the financial services to enterprises with target selected customers are
average & small enterprises. ACB provides the selling & insurance services for clients demand
for gold purchase.

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Reference:
http://www.acb.com.vn/en/
http://www.acb.com.vn/tintuc/00001C2E/
http://www.cophieu68.vn/profilesymbol.php?id=acb
http://luanvan.net.vn/luan-van/de-tai-phan-tich-chien-luoc-doi-voi-ngan-hang-acb-16769/
http://www.wrd.gov.vn/modules/cms/ng%C3%A2n%20h%C3%A0ng%20acb/ng%C3%A2n%2
0h%C3%A0ng%20acb-Co-hoi-trong-thach-thuc.html
http://www.doko.vn/luan-van/co-hoi-va-thach-thuc-doi-voi-cac-ngan-hang-thuong-mai-viet-
nam-trong-xu-the-hoi-nhap-quoc-te-34428
http://www.baomoi.com/Ty-le-su-dung-the-Visa-cua-Viet-Nam-tang-manh/126/6856238.epi
http://kinhdoanh.vnexpress.net/tin-tuc/ebank/ngan-hang/acb-duoc-nang-trien-vong-tin-nhiem-
sau-vu-bau-kien-3011408.html
http://www.vpb.com.vn/bai-viet/ket-qua-tai-chinh-va-hoat-dong-kinh-doanh/bao-cao-tai-chinh
http://gafin.vn/2014042103142986p0c36/DHDCD-VPBank-Chi-niem-yet-sau-khi-ban-cho-doi-
tac-chien-luoc-.htm
http://www.sacombank.com.vn/nhadautu/Pages/Bao-cao-tai-chinh.aspx
http://www.sacombank.com.vn/tintuc/Pages/Sacombank-to-chuc-Dai-hoi-dong-co-dong-thuong-
nien-2014.aspx
https://www.techcombank.com.vn/Desktop.aspx/Nha_dau_tu/TB-danh-cho-co-
dong/Bao_cao_tai_chinh_quy_IV-2013/
http://www.vinacorp.vn/stock/otc-tcb/ngan-hang-tmcp-ky-thuong-viet-nam-techcombank
http://www.coursework4you.co.uk/essays-and-dissertations/porter-generic-strategies.php

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