Analysis of HSBC's Business Practices

This document provides an analysis of HSBC's business practices, covering internal and external factors, economic factors, environmental factors, and more. It includes a SWOT analysis and a PESTLE analysis to evaluate the positive and negative aspects of HSBC's business performance.

Business practices are covered with internal and external factors
which includes employees, products and services, legal influence and
etc. The report is going to conduct an analysis of HSBC environment
in order to evaluate its positive and negative aspect towards business
performance (Shatilo, 2019).
Internal Environment:
Swot Analysis:
Strengths: The bank has come to 6 position into the world around
other banking sectors. Which makes it strong into marketplace. Bank
has sound capital and good financial stability which impact positively
on competitions.
Weaknesses: HSBC performs with small scale business due to which,
they left with low profit margins. The bank has fail to take corrective
measures through layoff and created negative impact on its
stakeholders and investors.
Opportunity: Good financial position of the Bank leads to make
investments into long terms assets for future expansion. HSBC has
high opportunity to acquire market share due to its global reach.
Through which more investors would attract towards banking
services (Chouliaras, 2018).
Legal factors: This component is the vital one as it emphasis on
rights to equality, discriminations and compensation. Which is
positively performed by HSBC.
Economic factors: HSBC has the great potential to fluctuate
among economy demand and supply by providing low rates
credits (Di Ceglie, 2018).
Environmental Factors: HSBC is positively influenced by
environment wellbeing as it promotes environmental campaigns to
its employees to get sound economy and countries development.
CONCLUSION
It has well concluded from the above assessment that an
organisation has to be familiar with every factor towards their
wellbeing and profitability. As these factors are significant to
develop strategies, overcome uncertainties and adopt market
changes. SWOT and PESTLE analysis are the best tools to get an
actual report on company’s environment
REFERENCES
Shatilo, O., 2019. The Impact of External and Internal Factors on
Strategic Management of Innovation Processes at Company Level.
Ekonomika (Economics), 98(2), pp.85-96.
Chouliaras, I., 2018. The importance of ideology and external
factors in Greek foreign policy: the case of Ioannis Metaxas
(1936-1941).
Threats: HSBC could be threatened by fluctuation in monetary
policies which effects on interest rates (Rudyanto, 2019). Legal
regulations are being the reason for their low profitability.
HSBC has influenced by monetary and regulatory policies that
does create impact on its largest position through minimum
profit margins. So that the banks need to get familiar with all
the internal resources which are not working effectively and
make its efficient use towards banking services.
External Environment:
PESTLE analysis of HSBC:
With the help of pestle analysis, company get to know about
their macro environment which has affected to every
organisation in terms of six main components. These are
mentioned below:
Political factors: These elements include taxation and tariffs
policy which has creating positive impact on HSBC. The bank
has sound capital structure which leads to fulfil all the tariffs
and military invasions.
Social factors: it reflects behaviour of society in which the
organisation is working. As considers their own culture and
beliefs HSBC provide their services by keeping in mind the
view of demographical factors
Technological factors: technological disbursement is creating
heavy influence on business at a high pace. HSBC is affected
by competition into technological advancement through its
competitors as it need to be attentive regarding new offering,
money flow, and into other banking services.
Business Practice
INTRODUCTION