Understanding the Business Environment of HSBC and Western Union

UNDERSTANDING THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1........................................................................................................................................3
TASK 2........................................................................................................................................4
TASK 3........................................................................................................................................6
PESTLE analysis of HSBC Holding Plc.....................................................................................6
Porter five forces..........................................................................................................................7
TASK 4........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The report of understanding the business environment will comprehensively illustrate the
business organization's environment. Here overview of the organization and the legal structure
will be mentioned. Report will also analyse the stakeholders of the company using stakeholders
analysis. Further, pestle analysis and porters 5 forces model will be explained for the HSBC
bank. At last the business analysis with reference to the short term and long term performance of
the organization will be depicted and recommendation for the improvement will be given. The
organization taken in the report for developing better understanding are HSBC and western
union (Aifuwa, Embele and Saidu, 2018).
MAIN BODY
TASK 1
Overview of the organization:
Western union is an American multinational company providing financial services. It has
been breaking the geographical barriers of money transfer by being actively engaged in receipt
and transfer of money. It was founded in 1851 and initially it was known for the telegraph
services until 1871 as in 1871 western union introduced the electronic money transferring
services which helped western union gained the prominence. Currently the company renders
global payment services. It has the operational presence in more than 200 countries and deals in
more than 130 currencies for the payment and transfer of money (Al Nuaimi and Nobanee,
2019). It has more than one billion bank accounts that have been transacted with and company is
constantly gaining.
Western union is a public limited company listed on the new york stock exchange. The
company operates via agents. The services are available to individuals, partnerships and business
entities. Purpose of the organization is to ease the cross boarder transfer of the money globally.
Company is constantly trying to know the customer needs regarding transfer and receipt of the
money and is trying to ease the process. The objective of the western union is to have quick, easy
and reliable movement of money. As, the free movement will make the economy prosper. The
goal and objective lies in the continues flow of cross currency to meet the business and consumer
needs. The market structure of the western union is globally spread which states that it has
different market shapes in different countries (Badillo-Urquiola, and et.al., 2018).

This is the reason behind playing on competitive edge in each market, as western union is
a big player which has unmatched global network and strong global brand, significant resources,
talents onboard for the unbeatable services. Company believes in having strong relationship with
the agents in each such market in over 16000 working corridors in 500000 locations. It has rolled
out the ATMs, digital portal and loyalty card over 19 million. It has established the strategic
growth areas such as business solutions by having international B2B payments (business to
business), facilitating ventures like digital money transfer, data ventures etc. to know the
customers better (Ersek, Davison and Rajgopal, 2018). Yet the challenges which the company is
facing are the barriers of operations in the countries.
Many countries in Asia have established the rule for limitation of the western union
operation. Like an individual can not send money in foreign countries, money can be only
received. Therefore, this kind of regulations limits the working structure of the company and the
organization can not work full fledge in such countries. Other challenges faced by the company
which hinders the goal achievement in the organization associated with the market structures
such as the trade barriers and relationship countries have with other countries often create
restrictions for operating freely as the currency plays a major role in the western union as it deals
with around 130 currencies globally. Such aspects often affect the organization's Working
behaviour.
TASK 2
Stakeholder: a stake holder is a party or person who has interest in the organization and these
stakeholders has the capability to either affects the operation of the company or they might get
affected from the operations of the organization (Joo, Nishikawa and Dandapani, 2019). Few
examples of stakeholders are government, shareholders, suppliers, buyers, competitors etc.
Shareholder: a shareholder is a company, person, institute that owns or has shares in the
organization's stock. A shareholder can be holding even a share as small as one still they can be
called the shareholders. Shareholders are called as the real owners of the company.
Stakeholders analysis: Stakeholders analysis helps identify the stakeholders of the company
and their powers, interest and influence on the company. It is a process of grouping the people
according to the level of participation and determining whom to involve and communicate
though the various processes in the organization. In western union company there are various
stakeholders as company works at global level (Muserra, Papa, and Grimaldi, 2020). Company