Understanding the Business Environment

Understanding the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Task one..................................................................................................................................3
Task two.................................................................................................................................5
Task three...............................................................................................................................7
Task four...............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Business environment represents the aggregate of all internal and external elements that
impact the function of a company and how it operates, either directly or indirectly. The
combination of these elements determines the environment and condition of the company or
business organisation. The aggregate of all personnel, organisations, and other elements over
which a commercial firm has no control but on which the firm is nevertheless dependent since
they impact the overall performance and effectiveness of the firm. HSBC is taken as base
company. HSBC Holdings plc is a global investment bank and financial services holding
corporation based in the United Kingdom. It was establishes by Sir Thomas Sutherland in 1865
and it is the UK’s largest bank with total assets of $2.984 trillion (Nabi, 2018).
Task one
HSBC is among the major banking and financial services organisations in the world.
Through their worldwide businesses, Wealth and Personal Banking, Commercial Banking, and
Global Banking & Markets, they serve over 40 million consumers. Their network spans 64
nations and regions in Europe, Asia, the Middle East, and Africa, as well as North and South
America. The legal structure of HSBC is public limited company and this means that it is a
voluntary organisation of people that is incorporated and so has a separate legal identity, as well
as restricted liability for its members. Public limited corporations are listed on the stock
exchange and their shares are publicly traded such as HSBC is listed on Hong Kong Stock
Exchange and London Stock Exchange. Its establishment, operation, and termination are all
rigorously controlled by rules, laws, and regulations (Lobo, Samaranayake and Subramanian,
2019). The corporation obtains its capital through the sale of its shares and individuals who
purchase the shares are referred to as members. The sum collected is referred to as the share
capital. HSBC’s shares are openly listed and exchanged on a stock exchange market.
Shareholders of a public limited corporation are solely liable up to the amount they paid for the
stocks they possess. They are readily transferable between its members and stock market traders.
They are heavily regulated and are legally required to disclose their comprehensive financial
accounts yearly. This guarantees that they show their genuine financial status to their owners and

potential investors, allowing them to evaluate the genuine value of their shares.
Purpose of HSBC
Why we exist is explained by the fact that people open up a universe of potential (Ali and
Shabir, 2017). They are here to help their clients by using their unique knowledge, skills,
breadth, and viewpoints. They helps in connect together the people, ideas, and money that
encourage advancement and growth, assisting in the creation of a better future for their clients,
employees, shareholders, communities, and the earth we all share.
The tagline and business emphasis of HSBC show its goals. HSBC which brands itself as
The World's Local Bank continues to emphasise local investment as a driver of economic
growth. HSBC is in the business of making money. From its beginnings in rural Asia to its
current status as a worldwide organisation, HSBC has maintained a primary focus on
foundational concepts. By keeping to its beliefs and achieving its goals, HSBC has been able to
preserve both revenue and honesty and integrity. The mission of HSBC is to offers a wide
spectrum of financial services across an international network interconnected by advanced
technologies, including an increasingly increasing e-commerce capability: personal financial
services; commercial banking; corporate, investment banking, and markets; private banking; and
other operations. The vision is to strive to be one of the world's great specialized banking
companies, motivated by their dedication to their key principles and values. They respect
diversity seeking out various points of view. They are more effective when we work together
with cross-border collaboration.
Market structure describes how various sectors are classed and differentiated depending on
the extent and form of rivalry for products and services. It is based on the qualities that impact
the conduct and outcomes of businesses operating in a certain industry. Market structures can be
recognized by critically evaluating a variety of elements displayed by various participants. It is
usual to separate these markets based on variables such as the buyer structure of the sector,
customer turnover, the level of product diversification, and many more (Cosenz and Bivona,
2021). In context to HSBC, they are under the category of oligopoly market structure in the
United Kingdom. An oligopoly market is characterised by a limited number of significant
corporations that sell differentiated or similar items. Because there are some companies in the
industry, their competing strategies are interlinked. In an oligopolistic market, a few businesses