The influences of stakeholders Essay
The influences of stakeholders
In the primitive world, the bank began from the simple work is keep something for the people whose possession to avoid losing it. On the contrary, the customer must pay money for that service. When this works take the benefits for all of people (keeper and sender). Gradually, the human send the various things such as money, gold… Nowadays, Vietnam is still developing country and the government is always support, improve, develop economy system. Therefore, the government needs the bank which can help them reduce the inflation, the variable economy…so, Vietcombank is the first bank selected for pilot privatization. This bank came into operation on 02/06/2008 after successfully implementing the privatization plan through IPO conducted on 26/12/2007. At the present, Vietcombank has affirmed its position as the leading bank providing a wide range as well as modern banking activities such as forex trading, derivatives, card business, ebanking…
1a.identify the mission, values, and objectives of organization and the influences of stakeholders for its organization Throughout the development and change of any organizations, their mission, values and objectives are the foundation for the organizations’ unique culture. In Vietcombank, they set and passed down their mission, values and objectives to generations’ people at Vietcombank. “Vietcombank mission is “Always for customers’ successes”. The bank has relentlessly endeavored to improved service and product quality and diversity its product ranges to better serve customers’ needs. With substantial investment in technology, the bank has built up a modern technology platform, capable of supporting the development and providing technology- intensive products, giving it the first mover’s advantage in many business areas.
To name just a few, Vietcombank has been the only domestic bank with an online network in 2004, covering 30% of country annual import- export settlements turnover and 45% market share of the credit and market. Vietcombank also plays as the market maker in the monetary market, the clearing center for domestic financial institution including foreign banks’ branches in Vietnam, and the lead manager for project syndication. Apart from traditional banking services, Vietcombank can now provide customers with a much wider spectrum of financial service ranging from commercial and investment banking, insurance, leasing to consulting service” (http://www.vietcombank.com.vn/en/ABA.pdf) | Explanation| The influences of stakeholder.
Mission:“Always for customers’ success”| They not only want to get profit, but also they want to bring the best choice, the right choice for the customer with the maximum value.| * Knowledge and Skill of the employee will influence on performance * The support and contribute of shareholder in expand the trade market * The satisfaction of customers based on the service, the attitude/ manner, the volume of the prestige| Value 1.The first bank applied ATM modern technology is banking2.protection strong finance from the government3. Choice of top corporate/ wide ranges of customer connected stakeholders| They are pioneer in technology in banking of Vietnam. On the other hand, they are use technology in working process such as: save data, calculate, manager…by high tech facilities.Vietcombank is the famous and prestige bank have a large market shareGovernment protection strong finance the customer can strong belief in the quality and responsibility of the bank from that advantages, Vietcombank has bring the good quality, efficient and safety to the customers.
With the employees, Vietcombank has made a good condition working for them: high salary, bonus, promotion, the best policy about social welfare…On the other hand, the stakeholder of vietcombank receives the large profit from the trade with the belief about stability of finance, treasury, fund mobilization, credit…| * The experience and skill of the employee influent the final result. * The supplier distribute the high tech facilities in work such as computer, camera, ATM box…the quality and the cost of product also was influenced performance of the bank * The contributions and communication abilities of the employee. (Customer care, persuade the customer…)
ObjectBecoming the one of the largest market share is the interbank foreign market.| Vietcombank is a prime choice for top local and foreign corporation enterprises as well as more than 4 million individual customers (2009)| * The employees of Vietcombank must do work: professional, sociable, considerate…because the Vietcombank’s object can success or failure based on their work way. * The supplier contributes the best product to service for work. Because the machine, equipment must good working. It must avoid the waste money and time * The customer’s trust also influent the final result of their object| 1b.the extent organization achieves the objectives of three stakeholders
Stakeholders have all businesses, whether in the public or private sectors, whether they are profit or not-for-profit organization. All organization influence and are influenced by different stakeholders. At here, there are four outstanding stakeholders in Vietcombank * The first stakeholder is government. “Vietcombank is the first state-owned bank selected for pilot privatization by the Government.” The government has support Vietcombank about everything to keep the stable financial market and develop in the internal market/ external market. Besides that, Vietcombank has achieved many awards by international and domestic organization. It’s the proud of Vietnam government. * The second stakeholder is shareholder. They are people who have effect to share of the bank on the market. They invest into the Vietcombank because they expect from its bank where can bring prime interest, a steady flow of income – dividends, and business continually.
On the other hand, shareholders also await capital growth and the growth of investment fund into the bank as well as leader brand of the bank Vietcombank does not make shareholder be disappointed with the result in 2010: “ Vietcombank successfully raised its chartered capital to 17,588 billion dong with an increase of 9.28% in the first time and 33% in the second time, which meets the requirement on capital adequacy as expected by investors and shareholders to facilitate technology infrastructure investment, equity investment in subsidiaries, joint ventures, affiliates and the growth of credit and treasury activities.” <http://vietcombank.com.vn/Investors/AnnualReports.aspx> * The next stakeholder is customers. They are people who require/request/evaluate about the market share, the position of the Vietcombank on the market. Depends on the request of the customer and the crisis of the market customers are a large influence for the bank, when the bank have more customer use the service of the bank.
Its get more profit for the Vietcombank. Depends on the customer’s needs, Vietcombank create many good method and choice for various customers by condition, time, and needs… such as: (SMS banking, internet banking) The women can pay the electric bills, phone card, shopping quickly and safety. 1c.the responsibilities of the selected organization and strategies employed to meet objectives of stakeholders Vietcombank are part of human society and they have many aims to pursue. But they are governed by their conduct towards others. That is responsibility of organization for society. The social responsibility of an organization is defined as the obligation towards the people and environment where the organization operates. Specifically, the social responsibility of Vietcombank includes ethics and business, management responsibility, public relations and corporate image, and environmental responsibility.
* Ethics and Business:
Ethics is about the codes of moral principles that people follow with respect to what is right or wrong. Ethics principles are not necessarily enforced by law, although the law can incorporate moral judgments (EDEXCEL HNC & HND BUSINESS, 2004) * For society: Vietcombank’s service bring to that have many benefit for the society such as: they create stable financial situation for Vietnam market, monetary market stabilization and the state budget… on the other hand, Vietcombank’s image has appeared in areas affected by floods and natural disasters, on “green days”, in poor areas, in charity programs which has an effect and has increasingly become closer to public
* For consumer: Vietcombank has affirmed its position leading as the leading wholesale bank. Besides that, they create many better services for the consumer such as e-banking, money transfer, SMS banking, Internet-banking, Visa Debit, etc. The application of technology into products in the best way of Vietcombank want to make satisfy for customer’s needs quickly and effectively. * For Business: they required employees must be honest and loyal in working. Every employees and from senior management on down are required to be trained on the Company’s Worldwide Business Conduct Manual * Management responsibility:
Management responsibility of organization is liable not only to organization’s owners, but also has responsibilities to others stakeholders. * For employees: Vietcombank has created a good condition working for the employees. The employees were trained including: the specific skill, communication skill… besides that, the employees will have a dynamic environment, high- technology. “Vietcombank’s BOM always pay much attention to human resource management.
Understanding that human resource plays an important role in Vietcombank’s success” With clear and specific responsibility to employees, Vietcombank has attracted many employees on whole country consist of: the employees of the bank is more 11.000 people, 21 thousands of shareholder… * For customer: with the mission is “Always for customers’ success”. Vietcombank has provided many service quality and safety. The bank gives the belief to the strict customers. From that customer’ needs, Vietcombank invested 2 new branches and 40 transactions offices. Now, the bank has 357 transactions offices and branches on whole the country.
* For community: Vietcombank take part in many social welfare activities and charity programs including: 21 billion (VND) for “Truong Son Gratitude”, 21, 6 billion (VND) for “Charity activities”, and support for Vietnamese Children, Vietnamese Mothers… * Environment Responsibility: * Public relation and Corporation:
Vietcombank has attended in the “Lighten the dreams for Vietnamese children” program. In addition, Vietcombank has spent lot of billion for many charity program with the closely connect everyone from the employees to the public such as the employees in the bank is enthusiastic humanitarian blood donation, build house of gratitude, help the people from natural calamity… Vietcombank is always build image about company not only have good quality products but also have wholehearted activities for society and environment of Vietnam. 2a. the economy of Vietnam
Base on the development of economy, Vietnam had changed from a poor country into a developing country in several years. We can see the economy situation of Vietnam is mixed economy. Because the business of Vietnam combines element of both private enterprise, where individuals have the freedom set up to their own business. (EDEXCEL HNC & HND BUSINESS, 2004) Public ownership & control of key center industries: although VCB have successfully launched its initial Public Offering via Ho Chi Minh stock exchange, VCB is nearly under government’s control (because the Government is the largest shareholders of VCB) In the end 2009, Vietnam is ranged list of average incomes nation.
The income of Vietnamese people is about $1000 per year. It relies on “Doi Moi” – Party’s renewal policy has a positive impact on the developing of Vietnam economy from 1980 to now. Each country do operate to develop and grow fast, so they need be take advantage much resource to reach what they need. Although, Vietnam is developing country but Vietnam has now integrated into the world trade organization. So, there are creating many opportunities for foreign companies which invest into Vietnam market. Therefore, use of efficient resource allocation is very important to a country, because national resources are limited. There are three elements resource in economy, include human, social policy and nature.
* Human resource:
Vietcombank has recruited the young generation who people really dynamic, enthusiastic, and creative to do work effectively and professional. But they are enough the experience to decide something become right way or perfect. It’s a limitation of the human resource on Vietcombank. * Finance resource:
Agriculture is major economy in Vietnam but it was not high because most Vietnamese work and labor tools were obsolescence and primitive. Therefore, Foreign and domestic private sectors are among the economic in Vietnam. The government attracts investment from foreign, domestic private firms, cooperatives and household business to expand and develop. In specific case of study, they receive investment and help of some organization in foreign such as ADB (Asia Development bank), ODA (Official Development Assistance). * Natural resource:
Agriculture has much contribution for Vietnamese life with various fruit trees, vegetables and rice. On the other hand, Land, oil, coal, wood, water and other mineral were abundant but they had not exploited right way, right time, and right strategy. Depends on those resources, the government has applied the new policy for Vietnam economy to improve old something and find out, develop the new things such as: find out the talents in many areas (industry, economy, culture, foreign trade…), use the natural resource with the maximum value… in specific case, the government make many chances for bank market such as invest into other areas such as Vietcombank has invested insurance fund, investment fund, real property…
Even Vietcombank develop from Vietnam to foreign country with their object is become one of the largest market share in the interbank market such as: Vietcombank Leasing Company (VCB Lea Co), VCB money Inc, Vietcombank securities company (VCBS), Vietnam Finance Company in Hong Kong (Vinafico – VFC). Besides that, there are many Vietcombank’s related companies consist of Shinhan Vina Bank (SVB)50%, Vietcombank Cardiff Life Insurance Company (VCLI) 45%, Vietcombank Bonday Limited ( VCB Bonday)16% 2b. the welfare policy in Vietnam
Social welfare policy of Vietnam includes many regulation and rule about: * Social policy for workers: the company has to do following * Insurance: include healthy and medical insurance, social insurance, unemployment insurance (2% per salary of a month)… * Specific provisions for women workers: especial priorities for pregnant women such as no sack pregnant woman with any reason apart from company stops operation, when women workers is on maternity leave they have four month at home. If their children are below one year, women workers can reduce 1 hour working… * Salary: no below minimum salary depending on each sector, retirement pension, working hours… * Other regulations in employment contract: the number of public holiday, protect the worker, their benefits… Environment policy: provide for workers safety and hygiene at workplace to protect and guarantee life of workers * Social security policy for community: the company has a good policy for helping and contributing such as: retiring pension, social fund, children fund… Impact of welfare policy in Vietcombank:
* Internal of Vietcombank: the employees will fulfill right and responsibilities to achieve the mission of the bank’s value. It’s make motivation and contributes more much innovation for the result of the work and operation of the bank. It helps the bank can operation effectively and successful. * External of Vietcombank: toward the wider community, Vietcombank has applied this policy effectively by contribution 69,6 billion (VND) for charity programs and social activities. With social policy, it helps the Vietnamese’ life better, which make the people’ trust in the government. In specific case of Vietcombank, It also built a good image with the world in general and Vietnamese in particular. The influence of social policy:
Vietcombank can raise the image of the bank. Besides that the bank also affirms a position on the market.
To encourage the employees at work (better, efficient, and quickly)
Vietcombank can recruit and manage the employee with the equal or the policy of the bank (holiday policy, retiring pension…)
The customer trust can rise and they will to become a loyalty customer.
Vietcombank will pay more money for those activities they use more money from fund of the bank. Other work, they must reduce the total profit at the final year. 2c.the impact of macro-economic policy measures and influence of the global economy on Vietcombank Marco-economic policy: consists of two main policies that is fiscal and monetary policy Fiscal and Monetary policy:
Fiscal policy means “the adjustment of public expenditure and taxation so as to affect aggregate demand” (Business Environment book, p.153), it comprises taxation and other sources of income, government spending, borrowing whenever spending exceeds income, and repaying debt when income exceeds expenditure. Monetary policy is actions to influence the size and the rate of growth of the money supply as a tool of helping to promote high employment, economic growth, stable price, and a sustainable pattern of international transactions.
Monetary policy involves interest rates, exchange rates, control of the money supply, and control over bank lending and credit Now, the economy of Vietnam is tightening fiscal monetary and development slowly. It’s lead to the inflation strongly in Vietnam economy. It makes the Vietnamese’s life meet many trouble and limitation. So, the government has changed a suitable fiscal and monetary policy to promote the develop economy. * Inflation control, CPI control
* Reduce public investment such as building bridges, the school, or urban project…
* The government make a countersign is “Saving”
* Reduce intent to personal tax
* Decrease import and increase export
* Global economy
The global economy has given enterprises the opportunity to develop global partnerships and alliances, which are essential to their successes. From joining WTO, Vietnam is gradually becoming globalization that creates more opportunity for the developing country as Vietnam to develop and grow. In particular, for Vietcombank is corporate and invest business in many countries such as: Hong Kong, Singapore… so global economy will impact on Vietcombank. Because economic downturn in the world in general and Vietnam in particular. With global economy crisis increased the prices of materials, gas, oil and gold prices. It fluctuated dramatically. There are two areas which there were influenced consist of: 1. Influence on Vietcombank. Because the bank is a forex bank. The fluctuation of economy wills influent to the rate of dollar, euro, Japanese yen… Foreign exchange change domestic market Lead to the inflation of economy in all areas, economic downturn. Vietcombank must raise the interest rate to reduce the volume of people come to the bank borrow money. On the other hand, the bank will increase interest rate of foreign exchange to raise the foreign exchange source. 2. The next is Stakeholder:
* Corporate: For the developing country as Vietnam, exchange rate is almost important for domestic and foreign investors, and Vietnamese people. For example, if a domestic company has to import equipment or machines from foreign, so they have to pay by exchange rate in this country. It can be exchange difference compared with Vietnam monetary. In particular, USD exchange rate in Vietnam will state bank assess price to foreign currency circulation in country. Yearly, from in the end January to April, state bank will raise price of foreign currency to reduce getting hot of black currency market, but from August to October, state bank will go price down because annual at that time, a large foreign currency will be forwarded to Vietnam through their relations * Citizenship: there is a part of bring the profit for the Vietcombank. But the economy of Vietnam is fluctuation dramatically. The customers feel not safety, belief. Therefore, Vietcombank is always create new thing and method to improve this situation.
Although Vietcombank has some difficult in front of the changing of the world economy, but they has used the experience, skills to solve the problem. Finally, Vietcombank always show their success promise in the future with an objective to take the largest market share in Vietnam in the interbank forex market.
Vietcombank (2010) Finance Statement [online] (01/06/2011) <http://www.vietcombank.com.vn/en/ABA.pdf>
Vietcombank (2010) investor [online] (28/05/2011) <http://vietcombank.com.vn/Investors/AnnualReports.aspx>
(EDEXCEL HNC & HND BUSINESS, 2004) Business Environment, course book. 1st. page 144. London: BPP Professional Education
EDEXCEL HNC &HND BUSINESS (2004) Business Environment 1st Ed, Chapter 5:
resource issues and economic systems p.153, BPP Professional Education, London
(EDEXCEL HNC & HND BUSINESS, 2004) Business Environment, chapter 2: ethical business p. 62, BPP Professional Education, London
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 13 January 2017
We will write a custom essay sample on The influences of stakeholders
for only $16.38 $12.9/page