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Business Strategy - HSBC Assignment

Include this front sheet with the final submission and any resubmission. It contains the assignment code, unit title and number, QFC level and credit value, module tutor information, distribution date, learner's statement of authenticity, and acknowledgement of sources used.

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Added on  2021-02-20

Business Strategy - HSBC Assignment

Include this front sheet with the final submission and any resubmission. It contains the assignment code, unit title and number, QFC level and credit value, module tutor information, distribution date, learner's statement of authenticity, and acknowledgement of sources used.

   Added on 2021-02-20

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Business Strategy - HSBC Assignment_1
Table of ContentsINTRODUCTION...............................................................................................................3MAIN BODY.......................................................................................................................3LO1....................................................................................................................................3P1 Analysing the impact of macro environment on the organization and its strategies.........................................................................................................................................3LO2....................................................................................................................................6P2 Analysing the internal environment of organization using appropriate frameworks.6LO3....................................................................................................................................8P3 Porter's five forces....................................................................................................8LO4..................................................................................................................................10P4 Strategic management plan for the organization....................................................10CONCLUSION.................................................................................................................12REFERENCES................................................................................................................13
Business Strategy - HSBC Assignment_2
INTRODUCTIONBusiness strategy is concerned with combination of several decisions taken in order toachieve the organizational goals and objectives effectively and efficiently. Businessstrategy acts as a road map for every organization and also helps the company inachieving competitive advantage. It is imperative for every organization to have aplanned business strategy or else it will lag behind. The Hong Kong and ShanghaiBusiness Corporation (HSBC) is a British multinational investment bank that deals infinancial services, investment banking, loans, wealth management and other suchactivities. HSBC bank was ranked as the 7th largest bank in the world by its size andoperations and has 3900 offices located in more than 67 countries. As of 2018, HSBCbank employs more than 235,000 individuals worldwide. The current study will highlightthe importance of business strategy in making HSBC a successful organization and alsothe use of various tools like PESTLE analysis, SWOT analysis, Porter's five forces andVRIO model that help a business in making strategic decisions.MAIN BODY.LO1P1 Analysing the impact of macro environment on the organization and its strategies.Business environment is and addition of both external and internal factors thataffect the working of an organization. The micro factors include customers, competitors,suppliers and employees whereas the macro factors include political, economic, social,technological, legal and environmental factors. The macro factors cannot be controlledby the organization and can affect its working in both positive and negative manner thusits is imperative for multinational companies like HSBC bank to analyse the impact ofmacro factors and take precautionary measures in order to avoid any uncertainty in thenear future (Albrecht, Holland and Peters, 2016).PESTLE analysis of HSBC bank and its business strategiesPolitical factors: Political factors are basically concerned with the tax rates,subsidy and government policy that affect the working of a company. HSBCgroup operates in more than 67 countries therefore it has been exposed tovarious political risks and instability. In order to minimize the adverse effect ofvarious political factors the company keeps a close check on certain political
Business Strategy - HSBC Assignment_3
aspects like growth rate of banking sector in a country, pricing regulations andthe rate of stability in the financial service sector. Although, according toElMassah, (2015)the BREXIT had a negative impact on the smooth working ofthe bank as the company announced that relocating 1000 employees fromLondon to Paris would require legal charges which can cost the bank around$300 million. United Kingdom's exit from European Union will also hamper thesmooth working of the company as they need to modify their business strategiesand change it according to the future scenario. Economic factors: The economic factors include inflation rate, investment level,foreign exchange rate and also the economic cycle that determine the aggregatedemand and aggregate investment in an economy. With the increasing inflationin the United Kingdom, the HSBC bank has to face backlash because theinflation affected the currency value and thus led to instability. Also, changes inexchange rate further affect the smooth functioning of banks as it affects thecurrency value, spending habits and inflation rates. As a result, the HSBC has tochange its business strategy and it further adopted the strategy of capitalefficiency in order to grow as a banking company in a sustainable manner.Social factors: The socio cultural factors include the beliefs, culture, values andattitude of the public in the country. The major social factors that affect the HSBCgroup are the demographic of the population as it helps in customersegmentation and also help the bank in identifying their target customers. Also, itis imperative for HSBC to know about the income level of the people because ifthe majority of the people in society belong to the lower middle class family thenthe bank would not be able to sell its premium services to them and would haveto mould its financial services and strategies. The Das, (2016) argues that, thesocial factors can have a negative impact on the overall operations of HSBCbank because each country has a different culture which makes it very difficult forthe company to change its operations according to that thus without appropriatebusiness strategy it would become very difficult for company keep informationabout social cultural factors.
Business Strategy - HSBC Assignment_4

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