HSBC Strategic Analysis: Environmental Factors and Implementation Plan

This report provides a comprehensive analysis of HSBC's business strategy, utilizing frameworks such as SWOT, PESTLE, and VRIO to assess the internal and external environments. The analysis identifies HSBC's strengths, weaknesses, opportunities, and threats, alongside an evaluation of its value chain and competitive forces. The report further outlines strategic implementation actions aimed at enhancing the organization's competitive advantage and achieving sustainable growth, focusing on leveraging internal capabilities and stakeholder value. The study also addresses the impact of macroeconomic factors, including political and economic challenges, on HSBC's operations and strategic planning.

Business Strategy

Executive summary
The report is based over making analysis possible with strategic requirements of business
which makes growth and success possible within an organization. Business is based over all
work that is necessary to develop key strategies which is focused upon internal and external
market. Thus the selected organization in the report is based over making focus upon strength,
weakness, opportunities and threats through effective framework like VRIO and SWOT analysis.
Then strategic management plan has been developed for growing within market. These resources
are finalized by generating stakeholders value and internal capabilities.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Macro and Micro Environmental Analysis..................................................................................1
Internal Environmental analysis..................................................................................................4
Value Chain model..........................................................................................................................6
Strategic implementation actions ..............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
This report aims to analyse the challenges faced by the organisation in order to create a
strategic plan of the company. As being a strategic manager of HSBC, it is important to form
business strategy. Business strategy is an important process which is followed by every
organisation. it is vital to make strategies in order to cope with the uncertainties and challenges
within the environment as there is large and complex market in which business operates that
require utmost attention about customer demand, trends, society growth and sustainable
development (Aaker, and Moorman, 2017). The selected organization is HSBC bank that has
been founded within the year 1865 and has its headquarters in England, UK. This is banking
sector organization know for providing services all over the world. The report is going to talk
about business capabilities of HSBC by applying useful tools like SWOT, PESTLE, Porter,
VRIO analysis. Apart from this, there will be effective strategic plan through which, the decision
making will be easy to utilise resource and implement the plan successfully for growth and
success of company.
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MAIN BODY
Macro and Micro Environmental Analysis
Pestle analysis
It is a macro surroundings evaluation which incorporates outside elements that has effect
on business enterprise functioning. This evaluation allows HSBC to make techniques for the
ones regions which require right attention. All those critical elements are defined below:
 Political: As in line with this aspect, the United Kingdom is encouraged with the aid of
using political interferences like taxes, tariffs, change responsibilities and terrorism. The
U.K has plenty political balance because of which HSBC enjoys freedom for change.
Apart from this, the HSBC faces bad effect because of Ukraine War because of which the
corporation faces heavy taxation, decline of assets and excessive cost. Many political
interferences have come because of Ukraine struggle fare within the UK to make certain
incredible practices.
 Environmental: This aspect implements the priority closer to the society and
surroundings of the corporation (Alam, and Dornberger, 2019). The UK is going through
many environmental crises regrading sustainable improvement which creates pollutants
and reasons diseases. The HSBC has to place extra consciousness on sustainable
improvement with the aid of using making sure reusing, recycling and heading off
wastage. The corporation have already got those operations into attention which lessen
carbon emissions.
 Social: The commercial enterprise is absolutely worried approximately pleasing patron
wishes. It consists of culture, values and trends. The UK is seemed as plenty populated
U.K wherein humans have awesome demands. Therefore, the HSBC is imparting all of
the patron items inside nominal charges with the aid of using enduring individual’s
demands. The fashion of natural product could be an possibility for the HSBC to draw
customers.
 Technological: This aspect entails using era and permit updates within the corporation.
UK is thought to be a broaden U.K which gives diverse possibilities for digitalisation,
synthetic intelligence and robotics. The HSBC has bad effect of this aspect because of
now no longer carrying out plenty technological centres within the corporation. They
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want to offer E-banking with the aid of using launching their very own app and use of AI
to sell patron services. The corporation should entice massive patron through global
marketplace with this technological upgradation.
 Legal: This aspect emphasizes at the prison legal guidelines and acts of the corporation.
The UK has diverse legal guidelines concerning equality, fitness and protection and
employment legal guidelines to sell honest remedy within the commercial enterprise
surroundings (Ansoff, Kipley, and Ansoff, 2018). HSBC observe a majority of these
prison components which creates tremendous effect within the marketplace and personnel
eager to take take part in companies’ workplace. HSBC wishes to make all of the
techniques with the aid of using analysing prison interference to keep good will within
the eyes of law.
 Economical: As in line with this aspect, economic system consists of cash flow, forex
prices and call for and deliver to perform powerful improvement of the U.K. But the
corporation going through declines because of Covid-19 pandemic . This has made
upward push in inflation and those have been now no longer left with plenty shopping
power (D’Cruz, 2018). Therefore, the HSBC wishes to take powerful degree to make
certain call for and deliver within the current time of Ukraine struggle fare which has
additionally decrease down the import and exports of the products together with oil, fuel
on-line and energy which end up noticeably charged or declines. Due to which, the
HSBC going through excessive production and transportation cost.
Porter five forces
This evaluation is all approximately regarding concerning the enterprise surroundings and
its competitiveness. The enterprise may want to formulate techniques via way of means of
figuring out elements which creates opposition and chance for the organisation. In relation to
HSBC, all of the marketplace forces are defined below:
 Threat of latest access: This marketplace pressure allows that the retail enterprise of UK
has smooth get entry to to access and go out from the marketplace. It is all approximately
whilst agency input into marketplace with new and revolutionary merchandise for
customers (Das, 2017). The enterprise has excessive chance however the HSBC has low
chance of this aspect because of having emblem call into marketplace. So that, no new
supplier will beat the agency. This method that the agency have properly picture that the
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brand new gamers would require properly funding and client engagement to attain at the
equal role as HSBC. This method that, new gamers will now no longer have drastic effect
at the HSBC till and until they'll give you new revolutionary thoughts and properly
capital.
 Bargaining strength of customers: This marketplace pressure suggests that, the retail
enterprise is threatening with excessive bargaining strength of customers. It is because.
The enterprise is full of many sources and range of dealers gift for promoting equal
merchandise. It is the state of affairs wherein no client is prepared to pay a excessive
charge for the goods extraordinarily to be had within the marketplace. The HSBC has
mild chance of this aspect as their merchandise are fine centred with low charge strategy.
So, the customers might now no longer without problems good buy with the HSBC
merchandise.
 Bargaining strength of providers: It is all approximately the dealer’s affect at the
enterprise and organisation. The retail enterprise has massive availability of providers
because of which the dealer has much less strength to good buy with the companies
(G'iyosov, 2019). HSBC has high-quality family members with providers as they assign
agreements and contracts. The dealer might now no longer go through their courting with
a reputed shape like HSBC.
 Threat of alternative merchandise: This method that the bogus of the goods and the
offerings can without problems be to be had within the marketplace. In relation to the
marketplace of the UK, there are such a lot of competition gift within the marketplace.
They promote comparable merchandise within the retail enterprise that have alternative.
The HSBC has excessive chance of this aspect as there are big availability and variety of
merchandise furnished via way of means of different supermarkets.
 Competitive rivalry: It emphasize at the enterprise opposition which incorporates that
the agency must be aware of aggressive rivalry. Therefore, it suggests that, the retail
enterprise is going through excessive chance of opposition because of ease in access and
go out and comparable types of merchandise. HSBC has its foremost competition that are
HSBC, ICICI bank and Scotist bank.
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Internal Environmental analysis.
Swot analysis
Strength Weakness
 The HSBC has biggest bank all over
the world. It creates reputed function a
number of the marketplace phase of
the business enterprise which has
generate appropriate worker base
(Gardiner, 2017). The HSBC goals the
proper phase of clients which make
sure their profitability.
 The HSBC has appropriate
marketplace cost because of having
excellent patron marketplace which
make a contribution in GDP.
 The susceptible regions of HSBC is
that the enterprise going through
decline through the usage of sources
with the effect of Ukraine war.
 The enterprise do now no longer
contain in normal marketing and
marketing and advertising and
marketing activities. This continues
their merchandise in active within the
eyes of customers.
Opportunity Threat
 HSBC has tremendous possibility to
spend money on era like AI and
robotics. The enterprise has desirable
economic function which may be
utilised for digitalisation.
 The enterprise can produce massive
quantity of natural product within the
modern aggressive market.
 The organization is having high threat
of Covid-19 and Ukraine war has been
suffering with annual turnover.
 Further, threat of competition has been
impacting over organizational
performance which impacts
organizations performance. The main
competitor's of HSBC are HSBC and
ICICI bank.
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VRIO analysis
This is based upon determining with internal position within an organization. They
present tangible aspects like machinery, stock, finance, human resources and intangible forms
like goodwill, competitive spirit of a company. VRIO stands for valuable, rare, inimitable, and
organisation.
Valuable: In this organization is able to define and capability which makes entrepreneur
offer customers through establishing value. HSBC is having higher values in terms of its
resources that is finance, goodwill, market distribution networks (Haider, and Tehseen, 2022).
The organization makes establishment of brand that makes high quality of products focused
within market.
Rarity: Resources of a company become rare when it is not widely accessible to other
competitors. Rarity of valuable resources create companies position in competitive market.
HSBC have rarity in valuable resources like finance and employees. This possessed by only few
companies that stands in market. especially its financial resources, company have a strong
finance structure.
Imitable: If a company has valuable resource and rarity but it is easy for competitors to
copy them then it decreases companies’ sale for that product. Valuable resources of HSBC are
easy to imitate which require huge funds. Company resources give moderate competitive
advantage.
Organisation: This refer to internal analysis of threats and opportunities of business
organisation. Valuable resources of HSBC are well organised give a competitive advantage to
the company (Haldorai, Ramu, and Murugan, 2018). This shows that HSBC management is not
well organised. It includes organisation management, lines of communication and creation of
departments. Therefore, the HSBC needs to focus on this factor which enables great environment
of the workplace.
Resources Valuable Rare Inimitable Organized
Goodwill    
Technology   
Customer Base  
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Employees 
Value Chain model
Value chain model refers to the business model which helps the organisations in
transforming the idea of producing products or service into the real model. This helps the
companies in getting competitive advantages (Makadok, Burton, and Barney, 2018). The most
important components of value chain model in context to company HSBC is as follows -
Primary activities
The primary activities are further classified into five main components which are stated below:
Inbound logistics – Since HSBC has been covering most of market shares that makes lot of
suppliers provide over bargaining power within an organization over least possible prices
to suppliers.
Operations – Operations is based upon making efforts that has helped in transformation of
raw materials within finished goods. HSBC has collected data base if customers that
makes them showcase advertisement to them.
Outbound Logistics – The organization HSBC is retail industry that is included within
supplying of goods within its customers. Also, they act like mediator which makes
delivery of goods possible for end users.
Marketing and sales – In order to make customers attraction possible over products makes
sales within market increased.
Services – The services that has been offered by HSBC is based over instalment of services
and post sales requires to be maintained.
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Secondary activities
 Procurement- The key activities of HSBC bank related to procurement focuses on
purchasing self different types of raw material from specified suppliers.
 Technology based factors- Technology based development is majorly important for the
business organisation in order to perform quick and accurate operations.
 Human resource management- The key employees of business entity are managed by
human resource management in order to perform their welfare (Oehlhorn, Maier,
Laumer, and Weitzel, 2020). This will increase output of employees as well as increase
their competitive strength.
 Infrastructure- The infrastructure is considered as key point which improves the
business structure of whole company.
SMART objectives
The formulation and selection of SMART objectives is necessary for a company in order
to manage important tasks and functions. The key role of a business entity is to focus on
development of these objectives and various strategies should be implemented in order to
achieve favourable outcomes. The SMART objectives of HSBC company are mentioned below:
 Specific- The specific objectives of company should be achieved in a well defined
manner. It is major role of a business to focus on development of specific objectives, in
case of HSBC the key objective of company is to increase sales turnover by 15%.
 Measurable- It is ethical responsibility of marketing management to develop measurable
goals and objectives which are essential for effective purposes (Meyer, Neck, and Meeks,
2017). The measurable goals of HSBC includes analysis of past performance with present
performance.
 Attainable- The attainable objective of HSBC are related to implementation of tools
related to information and technology for gaining effective edge.
 Reliable- The reliable goals and objectives are essential to be formulated by a company
that should be flexible in nature.
 Time bounded- The goals set by HSBC are time bounded that they are to be achieved
within 1 year.
Strategic goals
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Company is also working for formulating key strategic goals in order to perform crucial
development. There are major companies which also focus on development of effective approach
in order to deal with future consequences and challenges. The main strategic goal of HSBC is to
become topmost banking leader in the whole world.
Porter's generic strategy:
The application of Porter's generic strategy makes a company more effective and
developed in nature. In order to implement Porter's generic strategy in a precise and systematic
manner to achieve overall goals and objectives of company (Ogola, Marjery, and Bagire, 2019).
The major elements of Porter's generic strategy in context of HSBC bank are mentioned below:
 Cost Leadership- The cost leadership is one of the major strategies which could be
adopted by a business entity to maintain effectiveness. It is one of the key roles of a
company to develop focused approach in implementation of this approach to achieve key
goals and objectives. The cost of major products and services should be increased with
the help and support of key operations that are related to company development.
 Differentiation- The development of differentiation based strategy is compulsory for the
organisation which can impact on its functioning. The differentiation based approach is
helpful in bringing unique selling preposition at the marketplace. The key role of a
business is to support development of performance of a business on the basis of various
parameters that are affected by market forces. Main task of a business is to perform
operations according to contemporary business environment. It is key role of a business
to analyse key competition. The research and development department of HSBC bank
should develop key possibilities related to market research in order to develop focused
practices. The main role of a business organisation is to analyse all the major external and
internal factors related to business environment.
 Focus- This is one of the important role of a business to focus on key perspectives related
to business for effective growth. The focus of a business organisation should be on all
operations related to business and they should perform key tasks and objectives on the
basis of time period which is set yo achieve goals. Focusing on the main departments of a
business like human resource, marketing and financial management will increase chances
of company to gain competitive. Focusing on key operations that are related to business
growth will increased profitability and revenue. Main task of a business is to define its
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strategies according to future possibilities which are determined in order to analyse
growth based opportunities which are effective for business long term expansion. HSBC
is mainly focusing on development based factors that are maximising its banking
operations. The focus on management of key operations with increased responsibility
over key functions that are helpful in development of business (Pradhan, Sarwar, and
Hosseinian-Far, 2022). The key focus on major aspects of a business are responsible for
focused growth. In the recent times, all major companies are focusing on development of
goals and opportunities that are effective for systematic development. Majority of
companies including HSBC are taking strategic actions which are important for
organisational approach.
Ansoff matrix
It is a selection and decision making method for attracting big range of clients into the
global marketplace. This is a major type of strategy which allows to examine the marketplace
and to develop effective techniques and plans for the enterprise increase and broaden new
strategies to maximise the income at the marketplace
 Market penetration – In Market penetration there is a expansion of present products and
current marketplace. To do marketplace penetration, the corporation can use effective
strategies and techniques like promoting key products or innovating new thoughts to
generate greater sales for the organization. HSBC bank is already performing business
responsibilities and its marketplace cost and popularity are on optimum level. The bank is
recognized for making best and precise services at the marketplace. HSBC makes use of
its social media platform successfully to get in contact with large number of customers
(Rugman, and Douglas, 2018). The organization is likewise partnering with other
business entities to development market base with increased efficiency.
 Product Development – In product improvement the organisation makes use of their
growth methods in current markets with focus on new product. The HSBC bank takes
into account development of key products and services in accordance to market growth
based strategies. By adopting this approach a company gets constantly one step in
advance in comparison to its competitors. The organization is getting ready to explore
the marketplace with their new innovation based approach and strategy.
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 Market Development– In marketplace improvement method the corporation enters in
new marketplace with their current products. Development of market in foreign countries
is comparatively hard for the company. The organization method is maximum a hit and
that is why they're capable of rule the marketplace. The key role of a business
organisation is to set strategy related to market development of marketing
professionals.
 Diversification– In diversification method the business firm enters into new markets
with their new products. This method could involve major amount of risk and may be of
worth for the corporation (Talukdar, 2021). Diversification is of great risk and in order to
eliminate the risk, it is important for company to analyse competitive approach in order to
dominate the marketplace. To perform majority of operations in a more advanced manner
it is crucial for business to adopt this strategy.
Analysis- The HSBC Bank should Ansoff matrix in a specified manner will increase the chances
of business success in a set period of time. Main focus of an organisation is to formulate strategic
development based practices to increase product development at the marketplace. The existing
products at the marketplace help in increasing coverage of business by development of key
strategies. The most appropriate stage of Ansoff matrix which should be adopted by HSBC
company to develop competitive approach.
Controlling and Monitoring methods:
The monitoring and controlling methods are most appropriate for the business
organisation to develop effectiveness in key products and services. Controlling should be done
by a business on its operations with monitoring to enhance key operations and their strengths.
The main controlling methods which can be followed by a business entity like HSBC bank are
mentioned below:
 KPI- The key performance indicators are major approaches that should be used in order
to increase potential (Tjemkes, Vos, and Burgers, 2017). The performance of diversified
marketplace is essential to be determined by business entity to increase focused
development. The profitability of company should be increased by 15%, is one of the key
targets of company to enhance focused approach. Maintaining effective responsibility by
top level and higher authorities of a business. The HSBC bank is focusing on Key
performance indicators that are helpful in increasing key approach which are related to
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overall development. Business organisations should approach key staff members for
acknowledgement of key performance indicators.
 Benchmarking- The benchmarking of key positions of company are supporting key
functions which are based on business development. Benchmarking approach should be
utilised by majority of companies to achieve key benefits related to focused development.
In the recent times all major companies should focus on development of key chances
which are helpful in long term growth. Key task of a business is to enhance chances of
growth and development by creating key perspectives related to focused development. In
order to dominate the competition, it is necessary for the companies to prefer major
approaches that are helpful in systematic development.
 Balanced Scorecard- The balanced scorecard based approach is majorly helpful in
analysing the performance of employees. According to performance of employees, it is
essential for the company to provide them with key incentives. Main task of a company is
to focus on short and long term goals which enables it to perform further operations in a
specified manner (Witcher, 2019). The business organisation including HSBC adopts this
tool to maintain effective performance of majority of employees. The balanced score card
is also supportive in providing assistance to the company in terms of performance and
systematic development.
Strategic implementation actions
The implementation of strategy in a well defined manner is appropriate for the
organisation in order to develop more focused approach. Companies at the marketplace generally
implement their strategies with the help of the following elements and departments-
 Human resource requirements- Human resource requirements of a business are helpful
in increasing chances of well defined growth. The majority of business organisations
focus on hiring professional and experts to develop further and systematic operations.
Key growth based objectives related to employees are also achieved with the help of HR
department.
 Organisational structure- The organisational structure is considered as one of the major
criterion for a business. It is important for the company to adopt effective business
structure in order to implement best practices (Zapata, 2020). Organisational structure
related to functions of company is should be set as per the suitable way.
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 Implementation of strategy- In order to implement the strategy, it is crucial for the
business to take help of major departments. The implementation of strategy can be done
by higher level bodies of company to achieve key advantage.
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CONCLUSION
From the above analysis it can be concluded that development of effective strategies is
important for the business. This report concludes that strategic and planning frameworks helps a
business to develop systematic goals and policies. This project concludes that in order to gain
effectiveness in majority of business operations to develop major functioning according to
contemporary business environment. This project concludes that in order to develop more
focused approach, the implementation of Porter's generic strategy is most crucial. This analysis
concludes that to enhance chances of success, it is necessary for analysing key perspectives
related to organisation and employees. The project also concludes that companies must also
adopt key frameworks which are set by management and implement them with major
supervision and control.
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