Impact of Macro Environment on HSBC Bank's Strategies

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Impact of macro environment on a given organisation and its strategies..............................3
M1 Analyse macro environment to determine strategic management decisions.........................6
TASK 2............................................................................................................................................6
P2 Analysation of internal environment and capabilities of chosen organisation using
appropriate frameworks...............................................................................................................6
M2 Evaluate internal environment to assess strengths and weaknesses of an organisation's
internal capabilities, skill set and structures................................................................................7
TASK 3............................................................................................................................................9
P3 Application of Porter's Five Forces model for evaluating competitive forces of a given
market sector for an organisation................................................................................................9
M3 Appropriate strategies to improve competitive edge and market position based on various
outcomes....................................................................................................................................10
TASK 4..........................................................................................................................................10
P4 Application of various theories, models and concept with regards to organisational context
...................................................................................................................................................10
M4 Strategic management plan which has tangible and tactical strategic priorities as well as
objectives...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and journals........................................................................................................................13

INTRODUCTION
Business strategy is a vital concept considering various operational activities of the
business firm. A business organisation is a combination of various departments coordinating
together for achievement of pre decided goals and objectives of the workforce. Managers and
leaders of various business enterprises formulates various business strategies and plans in order
for effectively attain business goals and objectives, ensuring effective utilisation of valuable
resources of company. Presented report is based on operational working of HSBC Bank plc. It is
a multinational banking and financial sector, that delivers investment and finance facilities to its
customers. Respective company has a huge market presence in domestic as well as international
marketplace of about 7,500 offices around 80 countries as well as covering some territories of
Europe, Americans, Middle East, Africa and Asia-Pacific region. The business firm is
headquartered in Birmingham and was founded in 1836, which is 184 years ago and was
rebranded 6 years ago in 2015 as HSBC UK. The present report will analyse various strategies
formulated by management department of the business firm in order to deal with its external
environment and various tools, model and theories will be taken into consideration for evaluating
competitiveness of the business firm.
MAIN BODY
TASK 1
P1 Impact of macro environment on a given organisation and its strategies
Macro environment: It is a condition that exists in economy as a whole, rather than being
in a specific region or an area. Manager or leader with an objective of overall growth of the firm
keeping in mind effective utilisation of resources, considers both micro as well as macro
environment. In context to chosen organisation i.e. HSBC bank, as it is a financial institution,
operational working of workforce has to deal with high uncertainties in its external macro
environment.
In view point of James Emmett, who is also the CEO of the organisation, macro
environment is basically termed as the environment that directly impact on internal operational
working of a business firm. Various macro environment factors in relation with chosen business
organisation includes;
Economic factors

They are those factors, that affects operational working of the firm and also sometimes might
lead to change in decision making process of company as a whole. It includes;
 Interest rates
 Exchange rates
 Recession
 Taxes
 Demand/ Supply
 Inflation
Demographic factors
Almost every type of business organisations is affected with these types of factors. It
includes;
 Income groups of people living in that area
 Age composition
 Education level
Technological factors
These types of factors are an inclusion of availability of technical means, which is to be
used by production department of an organisation. By using updated and innovative
technologies, management department of concerned business firm is able to extract best efforts
being produced in an organisation. Some of technological factor includes;
 Automation
 3D technology
 Wireless charging
 Availability of Wi-Fi
Managers and leaders of selected business firm i.e. HSBC bank, considers these factors and
formulates various operational plans as well as strategies for countering the effect of such factors
in effective working of the business firm. Concerned department of the firm conducts PESTLE
analyses for analysing firm’s external environment. PESTLE analysis of HSBC bank are as
follows;
PESTLE analysis is a strategic tool, which helps management of the firm to analyse
macro environment of the firm and advances firm towards its effective working for achievement
of company’s desired goals and objectives.