Business strategy - Assignment PDF

BUSINESS STRATEGY

CONTENTS
INTRODUCTION...............................................................................................................3
LO1....................................................................................................................................5
P1 ANALYSIS OF IMPACT AND INFLUENCE ON MACRO ENVIRONMENT OF
HSBC AND ITS STRATEGIES......................................................................................5
M1 ANALYSIS OF MACRO ENVIRONMENT TO DETERMINE STRATEGIC
MANAGEMENT DECISIONS......................................................................................10
LO2..................................................................................................................................13
P2 ANALYSIS OF INTERNAL ENVIRONMENT AND CAPABILITIES OF HSBC
USING SUITABLE FRAMEWORK..............................................................................13
M2 EVALUATION OF INTERNAL ENVIRONMENT TO ASSESS STRENGTH AND
WEAKNESS OF ORGANIZATION INTERNAL CAPABILITIES AND SKILL SET......17
LO3..................................................................................................................................20
P3 APPLICATION OF PORTER’S FIVE FORCES MODEL AND EVALUATION OF
COMPETITIVE FORCES FOR HSBC.........................................................................20
M3 DEVELOPMENT OF APPROPRIATE STRATEGIES TO IMPROVE
COMPETITIVE EDGE AND MARKET POSITION......................................................23
LO4..................................................................................................................................25
P4 APPLICATION OF THEORIES, CONCEPTS AND MODELS AND DEVELOP
STRATEGIC PLANNING FOR HSBC.........................................................................25
M4 DEVELOPMENT OF A STRATEGIC MANAGEMENT PLAN THAT HAS
TANGIBLE AND TACTICAL STRATEGIC PRIORITIES AND OBJECTIVES............27
CONCLUSION.................................................................................................................30
REFERENCES................................................................................................................31

TABLE OF FIGURES
Figure 1 PESTEL ANALYSIS OF HSBC...........................................................................7
Figure 2 BCG MATRIX OF HSBC...................................................................................10
Figure 3 McKinsey 7s FRAMEWORK.............................................................................13
Figure 4 VRIO FRAMEWORK OF HSBC........................................................................16
Figure 5 PORTER FIVE FORCES MODEL....................................................................20
Figure 6 PORTER GENERIC MODEL............................................................................25

INTRODUCTION
Business strategy refers to the plan of action and set of decisions that an organization
implement in the industry to achieve the desired business objectives as well as a
competitive edge in the global market (Ghemawat, 2016). Business strategies are also
responsible to acquire the direction, planning and the objectives in a long-term goal of
the organization. As an assistant corporate strategy manager at HSBC Holdings plc.
This report is prepared for providing the vision, mission, and objectives of the HSBC
bank. Development of a strategic plan to achieve business objectives. Analysis of
impact and influence of the macro-environment on the organization. Evaluation of
internal environment and capabilities using the various framework. Evaluation and
application of porter’s five forces model in the banking sector.
HSBC
HSBC Holdings Plc. is a multinational banking and financial services providing
organization in the UK and headquartered at Canary Wharf, London. It is ranked as the
6th largest bank in the world and 1st in Europe as of 2020 (HSBC, 2020). HSBC has a
presence in over 65 countries with around 3900 branches worldwide. HSBC has a
customer base of more over than 38 million customers and 233,000 employee base
working full time for the organization. The organization generates revenue of US$ 56.1
billion with a net profit of US$ 8.71 billion as per reports of the financial year 2019. It has
an asset valuation of US$ 2.715 trillion as per records of the financial year 2019.
HSBC majorly deals in the following segments they are commercial banking, investment
banking, retail banking and personal banking.

LO1
P1 ANALYSIS OF IMPACT AND INFLUENCE ON MACRO ENVIRONMENT OF HSBC
AND ITS STRATEGIES
VISION OF HSBC
HSBC majorly focus on the growth that is connecting with new customers, allowing the
business to bloom and eventually assist humanity to fulfill their desires (HSBC, 2020).
MISSION OF HSBC
The mission is to the leader in the banking industry.
To deliver excellent customer experience related to sales, services as well as
business solutions
To establish a fun and challenging environment
To motivate employees and enhance productivity.
OBJECTIVES OF HSBC
To become the leading banking and financial services providing organization in
the world
To enhance the profitability of the organization.
To maintain the major focus on the application of the basic principle within the
organization.
To establish and maintain a sustainable competitive edge in the global market