Analyzing Business Strategy of HSBC Holdings Plc

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Applying the appropriate frameworks and analysing the impact and influence of the macro
environment on a given organisation and its strategies..........................................................3
P2 Analysing the internal environment and capabilities of a given organisation with the use of
appropriate frameworks..........................................................................................................5
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.......................................................................................................8
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation........................................................................................................10
CONCLUSION..............................................................................................................................12
References:.....................................................................................................................................13

INTRODUCTION
The strategies are developed in an organisation which results in the success and growth
of the business. It plays an important role in the management of a business organisation, as it
emphasize on the factors which helps to develop the strategies for a business organisation. The
human resource management of a firm develops the rough working plan in order to attain the
goals of the firm, is defined as a Business Strategy. HSBC holdings plc is a chosen organisation
for this report. The HSBC is a British multinational financial holding company and universal
bank. The head-quarter's of this company is situated in London, England UK. This written report
considers the theory of macro environment, internal environment with the capabilities of firm.
Additionally, it also incudes the porters five forces along with its concept, model and theory in
context with strategic planning(Trzaska, Sulich, Organa and et. al, 2021).
MAIN BODY
P1 Applying the appropriate frameworks and analysing the impact and influence of the
macro environment on a given organisation and its strategies.
PESTLE Analysis
A PESTLE analysis is an a tool which is used in the management of an organisation to
evaluate the factors of macro environment which promotes the strategies. This analysis
determines the political, economical, social, technological, legal and environmental factors. This
factors are discussed below:
 Political Factors: This factor determines the tax regimes, policies and regulations which
are formed by the government and other authorities. In regards with HSBC, the
company performs their work in diversify location which includes Australia, Europe and
many more. An unsure decisions made by the government of several countries, in order
to develop the challenges towards the management of a particular region. The system of
a governance has focus on the influences of free trade and entrepreneurship which has a
benefit of economic freedom.
 Economic Factors: The economical factor determines the inflation, interest rates,
business cycles and many more. In regards with HSBC holdings, the revenue growth of
the company goes in negative way due to the rise in inflation rate. An organisation also

have the possibilities of higher opportunities in case the economic growth of a country is
enhanced and it helps to achieve the long term goals.
 Social Factors: This factor involves the certain components such as values and norms,
with the social characteristics of a consumers. The HSBC company has the chance to
take the higher opportunities due to the disposable earnings of a consumers and as a
result it aid in the enhancement of the lifestyle(Bocken, Morales and Lehner, 2020).
 Technological Factors: This factor is related with the modification or adoption of new
technologies. It has consequences on the business organisation due to the alteration in
technology. The HSBC plc prioritise the regions or countries which have an advance
technology as this will assists in the reduction of cost along with delivering the
innovation and also adding the valuers in an organisation. It is necessary for an
organisation top emphasis on the development of new product and also with the
attributes which the customers wants and liked.
SWOT Analysis
 Strength: The strength of a company depicts the positive point of a company which
influence the image of company. The HSBC holdings plc has a strong financial position
which operates in the 64 countries and has a well known brand globally. This company
serves more than 40 million customers with the help of 275000 people globally. HSBC is
a UK based, biggest lender of mortgages and a financial businesses. The HSBC
company's another strength is their corporate social responsibility. This company is
diversify into various sectors like private banking, financial services and commercial
banking.
 Weakness: The weaknesses depicts the negative impact of a company. The negative
consequences for HSBC company is reduction in the share prices and fluctuations in
income due to which this affects the confidence of long term investors. The HSBC is
facing issues in the ineffective way of product promotion through social media
advertising. While comparing with the rivals the firm has weak retail banking. Due to this
the clients are not satisfied with the customer services therefore the ratings of customer
satisfaction not high.
 Opportunities: The company grabs the opportunities in order to grow the firm. So the
HSBC company got a chance to expand the company into several countries such as china,