HSBC Holdings: Operations, Objectives, Market Structure, and Competitive Strategy

BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK ONE......................................................................................................................................1
HSBC Holdings plc......................................................................................................................1
Operations of HSBC....................................................................................................................1
Main objectives of HSBC ...........................................................................................................2
Market structure of HSBC...........................................................................................................2
Competitive strategy....................................................................................................................3
TASK TWO.....................................................................................................................................3
Stakeholder..................................................................................................................................3
Shareholder..................................................................................................................................4
Stakeholder analysis of HSBC.....................................................................................................4
TASK THREE.................................................................................................................................5
a) PESTLE framework of HSBC.................................................................................................5
b) Porter's five force analysis of HSBC.......................................................................................6
TASK FOUR...................................................................................................................................7
Key performance indicators.........................................................................................................7
Recommendations........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business involves the buying and selling of goods and services for the motive of
earning profits and wealth maximization of the shareholders. The current project shall be
undertaking the study on the HSBC Holding plc, which is an investment banking and financial
services company. The report shall be identifying the operations that are undertaken by the
company and the major objectives behind performing the business activities. Apart from this the
report shall also be highlighting the market structure under which the organization preforms its
duties and the behaviour of the organization in respect of achieving the competitive advantage.
Further the report shall be reflecting the conceptual understanding of shareholders, stakeholders
and stakeholder analyses. The stakeholder analysis shall be studied in respect of stakeholder
groups of HSBC to know the need and influences of them. The business environment of HSBC
shall be identified by conducting PESTLE and Porters five force analysis to ascertain the
competencies in the market. The PESTLE analysis shall be depicting the forces from the external
environment that are impacting the business operations within the company. Whereas the portals
five force is used to determine the internal environment and its factors contributing to the success
of the organization. Lastly the report shall be covering the key performance indicators as
specified in the annual report and the current developmental structure of the company.
TASK ONE
HSBC Holdings plc
Hong Kong and Shanghai Banking Corporation Limited is a British multinational
investment bank and financial services company. It is one of the largest banks in Europe which
was established in 1865 in Hong Kong. It has established a large global network covering almost
about 65 countries of the world and creating of about 38 million customers. The company has
been organized with four group Commercial banking, Global banking and markets, Retail
banking Wealth management and Global private banking. The legal structure under which the
particular organization operates is the public limited company who are free to offer their shares
to public at large in order to raise funds for the commercial purposes. For this purpose the
company has to be listed on the stock exchanges and stays highly regulated under the same.
Operations of HSBC
The vast array of the business operations that the company provides to its customer are
established around to provide the banking and financial services globally. It can be ascertained
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that the digital services that are provided are due to the advanced technological processes that the
company use combined with the innovation strategy used in their business model. They are
striving to transform the lives to make it better and sustainable. They have a strong
infrastructure, innovative solutions, strategic transformation programmes and other professional
services across wide global network which is easily accessible by the customers. It provides
potential opportunities to develop the careers of its potential customers. As mentioned above the
arena of its services are spread across four diversified regions Commercial banking, wealth and
personal banking, global banking, digital business services and the global functions are met by
the highly qualified employee base of the company.
Main objectives of HSBC
The HSBC Group is operating with the significant objectives and purpose in the market
of being the preferred financial partner for its existing as well as the potential client base.
Through capitalizing upon its various strengths, focusing on their strategic planning, backing
their value system the company aims to operate as the leading financial services provider around
the globe. Some most prominent objectives of the business are related to delivering the high
quality services and providing an outstanding customer experience by the easily accessible
services (Lo and Kwan, 2017). Apart from that it believes in the goal of extending long term
returns to the shareholders and a target of providing the maximum portion of the investments in
the form of returns to the shareholders of the company. The ethical practices and the corporate
governance affairs has been delivering value to the business and has been successful in
maximization of the profitability of the business.
Market structure of HSBC
The company HSBC Holdings plc is operating in the varied business segments providing
the investment and the financial solution to the clients in the domestic as well as the international
markets. It operates in the varied type of market structure throughout the world and so has to face
the challenges associated with the competitive pressures and is surviving by applying the
innovative business model to transform the lives of the people.
HSBC Holdings plc which is established in UK and headquartered in London is within
the banking industry following the oligopolistic market structure. In this market there are some
highly dominant players who have capitalized over the market share of the company and there
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