Global Business Environment

Global Business Environment

Contents
Global Business Environment..........................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT analysis.......................................................................................................................3
Examine the ways in which these key drivers can impact upon firms functional areas........4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment can be defined as an environment among the different
independent countries which are affected by various external factors within the home country as
well as other countries (Rendtorff, 2017). The external environment has both positive and
negative impact on the organisation in terms of their utilisation of resources and capabilities
optimally. To manage the impact various external factors strategic decisions must be taken by
the organisation which enables them to carry out their operations without much influence. For
this it is important for the organisations to analyse the external environment on consistent basis
along with analysis of internal capabilities and resources. In this report, HSBC holdings are taken
into consideration which is a UK based multinational investment bank. The report includes
internal analysis of the organisation and the impact of key drivers on the functions of the firm
which were identified in the previous work.
MAIN BODY
SWOT analysis
With the help of SWOT analysis an organisation can analyse various internal strategic factors
such as strength and weaknesses combined with the opportunities and threats. The main purpose
of undertaking the SWOT analysis is to identify the capabilities of the organisation to exploit the
external opportunities by countering the threats with the help of strengths of the organisation and
minimising the impact of weaknesses (Kouatli, 2016). SWOT analysis of HSBC holding is given
below:
Strengths:
 High level of customer satisfaction: The focus of the company is on managing the
relations with the customer with the help of separate customer relationship management
department. This enables them to satisfy the customers and establish brand equity for the
potential customers.
 Better performance in new market: The Company has expertise in strategies to enter
into new market efficiently which enables them to easily expand their business (Hamilton
and Webster, 2018).
 Strong free cash flow: The availability of cash with the company enables them to
finance their new projects easily and to plan their expansion with adequate resources.