Luận văn Thạc sĩ Quản trị kinh doanh: Solutions to improve the competitiveness of bank for investment and development of Vietnam - So giao dich 1 branch

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In addition to the introduction, conclusion, references, appendixes; the content of the dissertation is divided into three chapters: Theory of competitiveness of commercial banks; current situation of competitive capacity at BIDV So giao dich 1 banch; solutions to improve competitiveness of BIDV So giao dich 1 banch.

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Nội dung Text: Luận văn Thạc sĩ Quản trị kinh doanh: Solutions to improve the competitiveness of bank for investment and development of Vietnam - So giao dich 1 branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- TRẦN THANH BÌNH SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - SO GIAO DICH 1 BRANCH GIẢI PHÁP NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH 1 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020
ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- TRẦN THANH BÌNH SOLUTIONS TO IMPROVE THE COMPETITIVENESS OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - SO GIAO DICH 1 BRANCH GIẢI PHÁP NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM - CHI NHÁNH SỞ GIAO DỊCH 1 Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. HOÀNG ANH TUẤN HÀ NỘI - 2020
DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration. Date………………………….. i
TABLE OF CONTENTS DECLARATION ........................................................................................................ i PREFACE ...................................................................................................................1 INTRODUCTION.......................................................................................................3 CHAPTER 1: THEORY OF COMPETITIVENESS OF COMMERCIAL BANKS .5 1.1. The concept of competitiveness........................................................................5 1.2. Factors affecting competitiveness: ...................................................................6 1.2.1. Macro environment ....................................................................................7 1.2.2. Industry Environment (Michael Porter’s Five forces model) ....................9 1.2.3. Enterprise (bank) ......................................................................................12 1.3. Competitive evaluation criteria.......................................................................16 1.3.1. Criteria for evaluating the competitiveness of enterprises in general ......17 1.3.2. Criteria for avaluating the competitiveness of banks in particular ..........18 1.4. Lessons from improving the competitiveness of banks in the world .............24 1.4.1. Lessons from the world financial crisis in 2007 – 2008 ..........................24 1.4.2. Lessons from developing and improving the competitiveness of world banks in the current period .................................................................................26 CHAPTER 2: CURRENT SITUATION OF COMPETITIVE CAPACITY AT BIDV SO GIAO DICH 1 BANCH ...........................................................................29 2.1 Overview of BIDV So giao dich 1 Branch ......................................................29 2.1.1 The process of formation and development ..............................................29 2.1.2 Orgnization Structure ................................................................................30 2.1.3 Business results in recent years of So giao dich 1 Branch ........................31 2.2 Assessment of competitiveness of BIDV So giao dich 1 Branch ...................36 2.2.1 Assessment of external factors affecting the competitiveness of BIDV So giao dich 1 Branch ..............................................................................................36 2.2.2 Assessment of competitiveness of BIDV So giao dich 1 Branch .............42 CHAPTER 3: SOLUTIONS TO IMPROVE COMPETITIVENESS OF BIDV SO GIAO DICH 1 BRANCH .........................................................................................61 ii
3.1 Trends and forecasts for the banking market in the coming years ..................61 3.2 Orientation and strategic vision of BIDV ........................................................66 3.2.1 Orientation and strategic vision of the entire BIDV system .....................66 3.2.2 Objectives and orientation of So giao dich 1 Branch ................................67 3.3 Solutions: .........................................................................................................68 3.3.1 Overall solutions to improve competitiveness ..........................................68 3.3.2 Main solutions: ..........................................................................................72 3.4 Recommendations to the State Bank of Vietnam and Head Office of BIDV .84 3.4.1 Recommendations to the State Bank of Vietnam......................................84 3.4.2 Recommendations to the Head Office of BIDV .......................................85 CONCLUSION .........................................................................................................87 REFERENCE LIST ..................................................................................................88 APPENDIX 1. QUESTIONNAIRE IN ENGLISH ..................................................89 iii
PREFACE In a market economy, competition is an indispensable rule to survive and develop. The trend of international integration and globalization is taking place strongly and deeply, along with the continuous development of science and technology with the industrial revolution 4.0 affecting all political and economic fields social life ... Besides providing opportunities for developing economies like Vietnam to integrate into the world economy, thereby speeding up economic growth and technological innovation, Globalization also presents many great challenges, especially the risk of further economic lag due to limited competitiveness. In recent years, Vietnam's banking industry has been developing rapidly, gradually moving deeper into the process of international integration. Vietnam's participation in the World Trade Organization (WTO), the signing of free trade agreements, especially the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP), opens up many opportunities and brings many risks and challenges. The competition between banks becomes extremely fierce, not only competition among local banks but also between domestic banks and foreign banks with strong financial potential, technology, management level. In the past, a series of famous banks, but with weak operations and unprofitable businesses, were forced to merge or restructure: In 2012: Hanoi Building Joint Stock Commercial Bank (Habubank) lost VND 1,715 billion and was merged into Saigon - Hanoi Bank (SHB). In 2013: Dai A Bank has a small capital scale, low business efficiency, and merged with HDBank to increase its scale and operational capacity. In 2015: Mekong Delta Housing Development Commercial Joint Stock Bank (MHB) saw a loss of VND 476 billion, incurring a bad debt of up to thousands of billion VND, so it was merged into the Bank for Investment and Development of Vietnam ( BIDV); Southern Bank with a bad debt ratio of 55.31% was also forced to merge into Sacombank. 1
Therefore, improving competitiveness is an urgent requirement for banks to exist, stand firm and develop, and affirm their position in the region and the world. Improving competitiveness is a vital factor not only for small-sized commercial banks but also for large state-owned commercial banks such as BIDV, Vietcombank, Vietinbank ... in the context of international integration. with the appearance of a series of foreign banks with financial capacity, high management level, modern technology, and experience ... At Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), So giao dich 1 Branch is the leading branch, leading the whole BIDV system. Therefore, improving the competitiveness of BIDV So giao dich 1 Branch in the context of the current market is extremely urgent, is the basis for pioneering, is a model for BIDV branches to apply, thereby improving improve the overall competitiveness of the whole BIDV system. 2
INTRODUCTION 1. The necessary of the thesis: In a market economy, competition is an indispensable rule for survival and development. The trend of international integration and globalization is taking place strongly and extensively, it is necessary for Vietnamese banks to meet the capacity to stand firm and compete with foreign banks. In recent years, the Vietnamese banking industry has developed rapidly, step by step moved deeper into the international integration process. Vietnam's participation in the World Trade Organization WTO, signing free trade agreements, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP opens up many opportunities and brings many risks and challenges. The competition among banks has become extremely fierce, not only competition among domestic banks but also competition between domestic banks and foreign banks with strong financial potential. technology, management qualifications. Over the past time, a series of well-known banks with poor performance and loss-making business have been forced to merge and restructure. Therefore, enhancing competitiveness is an urgent requirement for banks to survive, stand firm and develop, and assert their position in the region and internationally. Improving competitiveness is vital not only for small-scale commercial banks but also for large state-dominated commercial banks such as BIDV, Vietcombank, Vietinbank ... in the context of international integration. with the emergence of a series of foreign banks with financial capacity, high management skills, modern technology, extensive experience ... Bank for Investment and Development of Vietnam (BIDV) – So giao dich 1 Branch is a key branch, leading the whole BIDV system. Therefore, improving the competitiveness of BIDV So giao dich 1 Branch in the context of the current market is extremely urgent, is the basis for pioneering, is a model for BIDV branches to apply, thereby improving the overall competitiveness of the whole BIDV system. 2. Overview of research situation There are many articles and studies on the competitiveness of the banking industry, commercial banks in general. However, these articles only research and offer general solutions. The introduction of solutions to improve competitiveness for each specific bank is different, depending on external factors as well as internal factors and characteristics of each bank. 3
This topic will assess the actual competitiveness of BIDV So giao dich 1 Branch, thereby offering specific, feasible solutions to be applied in practice at BIDV So giao dich 1 Branch. 3. Research objectives: Collecting, evaluating and proposing solutions to improve the competitiveness of BIDV So giao dich 1 Branch. 4. Research subjects - Experience in improving the competitiveness of domestic and foreign banks. - Assess the competitiveness of BIDV So giao dich 1 Branch in a comprehensive and profound manner on all operational aspects - Analysis of factors affecting the competitiveness of BIDV So giao dich 1 Branch 5. Scope of research: Research on competitiveness, offer solutions to improve competitiveness at BIDV Exchange 1 in the period from now until 2025. 6. Research method: Methods of statistical analysis Methods of general analysis 7. Structure of thesis In addition to the introduction, conclusion, references, appendixes; the content of the dissertation is divided into three chapters: - Chapter 1: THEORY OF COMPETITIVENESS OF COMMERCIAL BANKS - Chapter 2: CURRENT SITUATION OF COMPETITIVE CAPACITY AT BIDV SO GIAO DICH 1 BANCH - Chapter 3: SOLUTIONS TO IMPROVE COMPETITIVENESS OF BIDV SO GIAO DICH 1 BRANCH 4
CHAPTER 1: THEORY OF COMPETITIVENESS OF COMMERCIAL BANKS 1.1. The concept of competitiveness Economic competition is a competition between economic actors in order to have advantages in production and consumption and through which maximum benefits can be obtained. In the market economy, competition can take place between actors within the industry, and can also take place between actors of different industries. (According to Marxist-Leninist Political Economy - Associate Professor Dr. Ngo Tuan Nghia Chairman of the Compilation Council in 2019) Terms of competition: Competition: According to economist Michael Porter, competition (economy) is gaining market share. The essence of competition is to seek profit, which is higher than the average profit that the business has. The result of the competition process is the equilibrium of profits in the industry in the direction of deep improvement leading to lower price consequences. From a commercial perspective, competition is a battle between businesses and businesses to gain customer acceptance and loyalty. Competitive advantage: Competitive advantage is the possession of specific values that can be used to seize opportunities and make profitable business. When it comes to competitive advantage, it refers to the advantages that a business (micro level), a country (macro level) have and can have, compared to their competitors. There is also the term sustainable competitive advantage, which means that the business must continually provide the market with a special value that no competitor can provide. (According to Competitive Advantage - Michael Porter) According to Baumol, Panzar and Willig (1982), a firm's competition is assumed to include not only all its current competitors but also potential competitors ready to enter the industry one day. Future. Therefore, an enterprise that 5
has a competitive advantage or maintains a competitive advantage is that it is implementing a strategy without any existing or potential competitors at the same time. (According to The Literature On The Conformity of the Concept of Entry Barriers in Competition Strategy Theory - Barney, McWilliams, & Turk, 1989). Competitiveness: Competitiveness of an enterprise is an expression of the strength and advantages of the enterprise compared to competitors in the best satisfaction of customer requirements to earn higher and higher profits. by exploiting, using force and advantages inside and outside to create products and services that attract consumers to survive and develop, gain higher profits and improve their position compared to with competitors in the market. Competitiveness of the business is created from the power of the business and is the internal element of each business. Competitiveness is not only calculated by the criteria of technology, finance, human resources, corporate governance organization ... but the competitiveness of enterprises is associated with the advantages of the products that the business offers. market. The competitiveness of enterprises is tied to the market share it holds. Competitiveness can also be understood as the ability to survive in a business and achieve some desired results in terms of profit, price, income or quality of products as well as its ability to declare. exploit existing market opportunities and create new markets. 1.2. Factors affecting competitiveness: A business in its operation process is influenced by its surroundings and its impact. Therefore, the competitiveness of enterprises depends not only on the enterprise itself but also on objective factors from the environment around the business. Factors affecting competitiveness of enterprises are divided into 3 basic groups: macro environment, industry environment (according to Michael Porter), enterprises. 6
1.2.1. Macro environment Macro environment is the operating business environment, including factors affecting the existence and development of enterprises: economy, politics and law, socio-culture, nature, technology. ...  Economic factors: This is a factor that has a great influence and is the most important factor in the business environment of any business including banks. Economic factors include the growth of the economy, interest rates, exchange rates, inflation rates. A growing economy will create momentum for businesses to grow, increasing population demand leading to an increase in the rate of investment capital accumulation in the economy, a high level of investment attraction, and competition. The picture is getting more and more fierce. The large market is a good opportunity for businesses to take advantage of opportunities, rise to dominate the market, and also a challenge for businesses with no clear goals, no reasonable strategies. On the contrary, when the economy is in a recession, unstable, the psychology of people is panic, the purchasing power of people declines, businesses have to reduce output, must find ways to keep customers, win customers, sales, Profit will also decrease, while the competition in the market will become more fierce. Factors such as interest rates, inflation rates, exchange rates ... also affect the financial capacity of the business.  Political and legal factors Politics and law are the foundation for economic development as well as the legal basis for businesses to do business in any market. Politics and law have a great impact on the development of any business, especially import-export businesses. Political stability and legal system will create a favorable environment for enterprises' long-term business activities, which is a basis for ensuring favorable and equal conditions for enterprises to participate in competition. 7
Without political stability, there will be no stable, long-term and healthy economy. The law regulates directly the operation of every business in the economy. Enterprises always need a stable economy, a strict and clear legal environment, protecting the interests of businesses, individuals and organizations in the economy.  Social factors Social factors include lifestyle, customs, consumer attitudes, educational level, religion and aesthetics. These factors determine the behavior of customers, consumers, their views on products and services, thereby directly affecting the results of production and business activities of the business. To survive and compete in the market, businesses must follow the same social factors. Understanding and assessing social factors is the basis for enterprises to conduct market segmentation, thereby offering business strategies and solutions to provide products and services that meet the needs. of the market, improving its competitiveness.  Natural factors The natural geographic conditions of each region will create favorable or difficult conditions for enterprises to compete with favorable geographical locations in the industrial center or the nearest source of high-quality raw materials and manpower. near important roads ... will create opportunities for businesses, reduce costs.  Technology factors: Science and technology have a strong impact on the competitiveness of enterprises through deciding the price and quality of products and services. Today, along with the 4.0 technology revolution, science and technology are considered as one of the most important factors, determining the survival of enterprises as well as the competitiveness and dominate market share. Science and technology development affects the nature of competition. Previously, competition was mainly on selling prices. Now, in addition to selling prices, the quality of products and services is focused by businesses. The same type of products and services, 8
customers are willing to pay a higher amount for products and services that bring more utilities, added value, and higher technology content. On the other hand, science and technology help businesses process information quickly, accurately and efficiently. In this day and age, any business that wants to succeed needs to have a system of collecting, processing, storing and transmitting information accurately, adequately, quickly, effectively on the market and for competitors. 1.2.2. Industry Environment (Michael Porter’s Five forces model) Industry environment includes enterprises in the same industry engaging in production and business activities. The industry environment is also understood as the competitive environment of enterprises, according to Michael Porter including the basic elements: Competitors, buyers (customers), suppliers, potential competitors, substitutes. (Competition Strategy Book - Michael Porter )  Competitors: In a business environment where many businesses offer a range of products and services that will lead to the inevitable competition, businesses come up with strategies to attract customers and increase market share. Enterprises need to know their competitors so that they can have an effective competition strategy. The nature and intensity of competition among enterprises in the industry depend on the following industry characteristics: - The number of competitors, the number of large companies: The number of large companies increases competition, because there are more firms while the total number of customers and resources remain constant. The competition will be stronger if these firms have the same market share, leading to competition for market dominance. - Growth rate of the industry: When the market grows slowly, businesses must compete more aggressively to capture market share. In a high growth market, businesses are still able to increase their revenue, possibly only due to the expansion of the market. 9
- Fixed costs: High fixed costs usually exist in a economies of scale, which means that costs decrease as production scale increases. When the total cost is only insignificantly larger than the fixed costs, businesses must produce close to the total capacity to achieve the lowest cost per unit of product. Thus, businesses will have to sell a huge number of products on the market, and thus must compete for market share, leading to increased competition intensity. - High cost of storage or perishable product characteristics. This feature makes manufacturers want to sell goods as quickly as possible. If at the same time other manufacturers want to sell their products, the competition for customers will become fierce. - Low cost of goods conversion. When a customer easily switches from one product to another, the level of competition will be higher because manufacturers have to try to retain customers. - Level of product differentiation: Low level of product differentiation will lead to a high level of competition. On the contrary, if the products of different enterprises have markedly different goods characteristics, the competition will be reduced. - The ability to change strategy: The ability to change strategy is high when a business is losing its market position, or has the potential to gain more profits. This situation also increases the competitiveness of the industry. - High "exit" barriers. This feature makes businesses incur a high cost, if they want to give up on producing products. So businesses are forced to compete to survive. This barrier makes a business forced to stay in the industry, even when the business is not very favorable. A common barrier is the specificity of fixed assets. When factories and equipment are highly specialized, it is difficult to sell those assets to other industries.  Buyers (customers) Customers are the ones who decide the consumption of products and services of enterprises. Pressure from customers mainly comes in two forms: asking for 10
discounts or asking for better service quality. This makes businesses compete with each other, leading to the loss of industry profits. The pressure from customers comes from the following conditions: when the number of buyers is small, when the buyer purchases a large number of products and concentrates, when the buyer accounts for a large proportion of the seller's output, the products are not differentiated and are basic products, customers threaten to integrate backward, industry products are not important to the product quality of buyers, customers are well informed.  Provider: (For the bank the provider will be the input: customers deposit money ...) Supplier may dominate business operations due to dominance or monopoly power of some suppliers. Suppliers can assert their power by threatening to raise or lower the quality of products and services provided. These changes will affect production costs, product quality, profits, thereby affecting the competitiveness of enterprises. Pressure from suppliers will increase if: only a small number of suppliers; When replacement products are not available; When a supplier's product is an important input to the customer's operation; When a supplier's product is different and appreciated by the buyer's competitors; When the buyer incurs a high cost due to changing suppliers ...  Potential competitors: Potential competitors are those who will either be new to the industry in which the business is operating or in the manufacturing of alternative products and services. When new businesses come in, competition will be fierce. Old businesses will then have the advantage of products, capital, fixed costs, network of distribution channels ... will react fiercely to new businesses. However, new businesses often have more advantages in technology, product quality, methodical marketing strategies, applying many measures to gain market share ... will be a great pressure for existing businesses, create a higher competitive advantage. 11
Therefore, old businesses will have to have effective and timely competition solutions in order not to lose market share.  Alternative products Replacement products and services are similar products and services that customers can choose to replace the products and services that businesses are providing. Substitute products will reduce the profits of the industry because the highest price is controlled. Without paying attention to substitutes, businesses will not catch up with the increasingly diverse and abundant changes of the market. 1.2.3. Enterprise (bank) The competitiveness of enterprises in addition to the external factors as mentioned above depends greatly on the business itself. The competitiveness of enterprises is the combination of available and mobilizable enterprise resources including human resources, financial resources, physical resources, organizational management and experience. , trademark…  Human resource: Human resource is a very important factor, bringing creativity in the organization. Manpower level is reflected in the management level of leaders at all levels, the professional qualifications of staff members, the level of cultural ideology of members in the enterprise. This is a factor creating diverse products and services, high gray matter content, bringing many utilities, high quality services ... thereby increasing the prestige and reputation of products, services, businesses. will create a firm position in the market and achieve sustainable development. An enterprise with strong human resources in terms of professional skills, technical awareness, labor enthusiasm will be able to become a leading enterprise, although other factors are not favorable. In a service business such as a commercial bank, the human element plays an important role in demonstrating the quality of the service. The staff of the bank is the person who directly gives customers the feeling of the bank and its products and services, while creating customers' trust in the bank. These are important 12
requirements for the bank staff, thereby helping the bank capture market share as well as increase business efficiency to improve its competitiveness.  Financial Resource Financial resources is the most important factor determining competitiveness as well as a leading indicator assessing the size and capacity of enterprises. Any activities of the business: production, business, project investment, procurement of assets, equipment, distribution, advertising of products and services ... are also calculated and based on the financial situation. of the business. Enterprises with strong financial situation will be able to invest in modern technology and machines, provide quality products and services to the market, lower production costs, and promote advertising and production activities. products, thereby increasing competitiveness, increasing profits for businesses. On the other hand, businesses with good financial resources will easily attract investors to contribute capital, increase the ability to raise capital from the stock market, from shareholders and capital-contributing members of the enterprise, and spend gain the trust of our customers. Enterprises with weak financial capacity may be annexed, merged with other enterprises or withdrawn from the market, went bankrupt ... For banks, financial resources clearly show the vital role to the operation of banks. The nature of the bank plays an intermediary role in the economy, mobilizing capital to carry out lending operations, so the capital is directly related to the competitiveness of the bank. The bank's capital sources include its own capital and mobilized capital. A bank with high competitiveness is a bank with abundant capital, able to mobilize capital from many sources with the lowest cost. When the capital is abundant, the bank can actively use the source for lending, investment activities, etc., bringing great profits, while ensuring liquidity at all times.  Facilities The system of modern facilities and advanced technology suitable to the scale of business activities of the enterprise will contribute to improving production and business capacity, labor productivity, raising the quality of products and services, reducing product costs leads to a corresponding price reduction in the market, 13
thereby helping to increase competitiveness for businesses. Today, technology has become a secret weapon in the competition of businesses. Physical resources include: - System of factories, headquarters, machinery and equipment ... - Distribution network: branches, shops, vehicles, agents ... - Technological and technical system - Supply: affects cost - Geographical location: impact on production and transport costs ... For the operation of banks, the network of branches, representative offices, transaction offices will help the bank expand its operation to many areas. The large number of bank branches not only helps the bank reach more customers, attract more capital for the bank, but also makes it more convenient for customers to use banking services such as money transfer, receipt. payments… In the banking sector, technology is increasingly playing a role as one of the banks' most important competitive advantage resources. The role of technology in banking activities is shown: Banking technology includes not only professional technologies such as electronic payment systems, retail banking systems, ATMs, etc. but also management information systems and systems. risk report ... within the bank. Especially in the context that the information technology industry in general and banking technology in particular develop rapidly today, the ability to upgrade and innovate technology is also an important indicator reflecting the technological capacity of a Bank. The application of technology is one of the factors that makes the difference between banks, creating the power to increase the competitiveness of commercial banks. Today, commercial banks are developing high technology applications, and using translation products of technological nature as a measure of competition, especially in the field of payment. and other electronic products and services.  Management Capacity: 14
Each business must have a separate organizational structure, appropriate to the characteristics of business activities. The organizational structure should be set up in a flexible manner, adapting to changes in business environment and other fluctuations. In any business, the role of leader and manager is very important, deciding the success or failure of the business because they hold all the resources of the organization, outline the strategic and main directions, policies, work plans, policies, and decisions that affect the entire business. Enterprises with a reasonable organizational structure, good management skills will operate efficiently, save many costs, lower costs of products and services, increase profits and improve competitiveness. For banks - a field with lots of risks and when risks occur, it will have serious consequences, the management, control and management capacity of leaders plays a very important and clear role in ensuring the efficiency and safety in banking activities. Leadership vision is a key factor for the bank to have a sound business strategy in the long term.  Experience Experience will help businesses accurately predict market demand in each period, so that businesses will be proactive in production and business activities, avoiding inventory status, capital stagnation. However, the experience needs to be applied flexibly depending on the specific conditions and circumstances of the market and enterprises, which are suitable and practical and feasible.  Brand and reputation: Brand and reputation are considered an important intangible resource that creates the competitive power of every business. Brands have the ability to greatly influence the consumption of products and the provision of services by businesses. Formed primarily from activities, products, services and communications with stakeholders, reputation is a result of market capacity that has been valued by 15