Understanding the Business Environment - HSBC Bank Case Study

UNDERSTANDING THE
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ONE .....................................................................................................................................3
Introduction, legal structure with defining the operations and purpose of HSBC.......................3
Explaining the market structure in which the organization operates and its affects the
behaviour of the organization in looking to achieve competitive advantage...............................4
TASK TWO.....................................................................................................................................5
Defining the stakeholder, shareholders and stakeholder analysis................................................5
Applying the stakeholder analysis for identifying the companies stakeholder with evaluating
their needs and influences............................................................................................................6
TASK THREE ................................................................................................................................8
Using PESTLE analysis for identifying the macro factors impacting the HSBC bank...............8
Explaining the importance of Porter’s Five analysing the porter five forces of the HSBC
company and its influences on the competitive environment....................................................10
TASK FOUR.................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Understanding the business environment is mainly defining about the companies internal
and external forces impacting its operation as for achieving the business objectives.
Understanding the environment of business mainly helps in achieving and determining the forces
impacting the business operations in achieving the ultimate objectives. HSBC the banking
company providing various financial services. The company is mainly using various Commerical
banking systems and innovative campaigns for reaching to the large number of consumers. This
report provide detail about the HSBC bank, with identifying the market and legal structure. Also,
analysing the affects of market structure on the behaviour of organization in achieving the
competitive advantage. Further, defining the stakeholder analysis of the company for identifying
the stakeholder group of individual with evaluating needs and influence. Further, analysing
pestle analysis and explaining importance of porter five forces. Lastly, with using the KPI
defining the current growth and providing recommendations for improvements.
MAIN BODY
TASK ONE
Introduction, legal structure with defining the operations and purpose of HSBC
HSBC is the banking operational, recognized as the worlds largest banking and providing
financial services to large level of individuals. The banking services are mainly organized with

the three different grouping mainly under the commercial bankings, personal banking services,
and global banking systems. It is mainly providing the Commerical and retail banking service.
The legal structure of the HSBC is the public limited company, providing the financial and
different range of banking services. Which is mainly incorporated under the laws of the country
which is mainly incorporated to the whales and England (HSBC HOLDINGS, 2022). The HSBC
is mainly operating and providing various services as of financial and banking services to large
number of individuals. Various service of the company including the managing the cash
solutions, opening of various business accounts and providing various range of borrowing the
cash with established as global liquidity and trade services. The min purpose of the company is
for serving and bringing all the individual together, as for nurturing and growing the process and
mainly helping and supporting for creating the better world. The company is making efforts for
by taking smart risks and improving various leaning areas.
Explaining the market structure in which the organization operates and its affects the behaviour
of the organization in looking to achieve competitive advantage
Market structure is mainly defined about the structure in which the company is operating
as by providing various services. The banking structure is also defined about the system which
aims for providing the financial services as it is mainly established for operating as the payment
systems, providing loan, taking deposits and helping for better investment. The company is
mainly operating in the UK market (Alfaihani, Badunenko and Jaffry, 2021). The banking
sectors of the company is mainly dominated as established the large banks which are few in
number. As the large banks are small in numbers in the UK as for providing various financial
and banking services to the users.
The market structure of the banks mainly impacts its behaviour for operating in the
market as it helps in determining about the competition level. As the company is mainly
operating with the few larger banks in the market and serving with providing large number of
financial services to the consumers. As the market stricture affects the behaviour of banking by,
as operating and competing with few number if banks which are positioned at large level in the
country. For this if one large bank is lending and providing loans to large number at low rate the
company must also operates and establishes the low rates for competing and sustaining its
position. Furthermore, the market structure impacts the company in establishing the corporate
social responsibilities this helps in achieving better competitive advantage. Also, operating in the