Contemporary Developments in Business and Management Report

Contemporary Developments
in Business and Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 External influences of organisations and their impact.....................................................1
TASK 2............................................................................................................................................6
2.1 Relevance and influence of CSR on the company...........................................................6
2.2 Evaluating effectiveness of organization’s response towards CSR activities..................9
2.3 Demonstrating some areas for improvement..................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment plays an eminent role in growth and development of a commercial
entity. In other words, it can affect working activities and operation in positive as well as
negative manner. Business environment is an intermixture of internal and external factors, in
internal factors are - customers, employees, management, organisational cultural, supply,
demand, laws and regulations. Beside this, external factors are also comprises with political,
economic, social and technological forces that has potential effect on the growth and success of
business entity (Hammer, 2015). The present report is based upon HSBC bank; it was created to
provide finance trade among Asia and West. It is one of the largest bank which renders financial
services and currently operates in 30 countries. HSBC bank has employed 331458 employees
and all are expected to serve customers in well being manner. The report will describe about the
impact of political and environmental factors upon financial growth of company. The main
objective of the assignment is to determine the role of corporate social responsibilities within
business environment.
TASK 1
1.1 External influences of organisations and their impact
Due to globalization, several business entities are moved to international market. In
addition, globalization refers to interdependence and growth of transactions in between nations.
Along with this, globalisation is helpful for managers as they as easily interact with more people
at global environment in order to increasing sales and make higher profits. But sometimes
globalization put a negative as well as positive impact on business functions (Smit and et. al.,
2011). HSBC bank always tries to get strategic alliance so as to gain high competitive advantage
from target market. On the other hand, globalization leads HSBC bank so that the firm can
compete with other international financial institutes. . Therefore, it can be said that external
environment has put a major effect on the expansion of business operations. For instance-
alteration in political and economic factors in other countries will bear on working activities of
HSBC bank, UK. If the government of different nations might reduce tax and interest rates. In
2002, there was faced the situation of fallen in its profits due to changes in business

environment, i.e. customer’s preferences (The Marketing Environment, 2017). The economic
downturns that had led to reduce the need to investments and bank loans because customers were
not able to pay high taxes. Further, political instability also has put a negative impact on working
activities of HSBC bank. Modification in external environment will also influence growth and
productivity of domestic as well as foreign businesses (Srivastava, Franklin and Martinette,
2013). So that, it is essential for managers to analyse these factors in effective and efficient
manner; that will be help them to take better decisions for company's progress. Hence, there are
two factors which have affected growth and success of business organisations which are defined
as below: -
(Source: The Marketing Environment, 2017)
Illustration 1: External factors