Analysis of HSBC Holdings: Legal Structure, Market Structure, Stakeholder Analysis, and Macro Environmental Factors

Report

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of organisation, legal structure, market structure and how the marketing structure
affects the behaviour of organisation.....................................................................................1
TASK 2............................................................................................................................................3
Define term stakeholder, shareholder and stakeholder analysis.............................................3
TASK 3............................................................................................................................................5
a) Explain macro environmental factors along with its importance.......................................5
b) Explain Porter’s Five Forces model along with its importance.........................................8
TASK 4............................................................................................................................................9
Evaluation of development of business and recommendation...............................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term "business" refers to the activities that are involved in the process of carrying out
any professional occupation or engaging in any trade. It primarily contributes to earning money
by performing tasks such as manufacturing or trading goods and services. Business entails a
variety of activities in the business environment that have an impact on the business's
functioning, working, or decision making. The business environment is influenced by two
factors: internal and external. Internal business environment factors include workforce, mission,
resources, and many others, whereas external factors include political, economic, social,
technological, economic, and so on (Akgül and Tunca, 2019). It has been determined that
business organisations have no control over external factors. The chosen business organisation
for this report is HSBC Holdings which is a British multinational universal bank and financial
services holding company. Its headquarter is located in London, England, United Kingdom. This
report cover the legal status of business organisation, concept of shareholders and stakeholders
along with the importance of macro environmental factors and Porte’s Five forces. In addition to
this, it also deals with the development of business by maintaining financial and non financial
resources.
TASK 1
Introduction of organisation, legal structure, market structure and how the marketing structure
affects the behaviour of organisation.
HSBC holding PLC is a multinational British universal bank which is operating business
operations by providing financial services. It is found as the largest bank in the Europe as it has
the highest value of total assets i.e. US $2.953 trillion. The respective business organisation is a
multinational organisation which means that they are performing business operations in several
countries which include Africa, Oceania, North America, Europe, South America, Asia and
many other countries. This organisation has a develop and affective relationship with more than
40 million customers. Majorly this organisation is divided in three groups of business which
include commercial banking, global banking and markets along with the wealth and personal
banking (Chun, 2019). Under the commercial, the respective bank is providing financial services
to small medium and middle market enterprises. Global banking and markets are working as the
arms of HSBC Bank as they are providing the services related to the investment and financial
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products to the corporate and institutional clients. The global banking and markets involve
several services and products which include corporate banking, capital markets, cash
management, investment banking and many more. Wealth and personal banking of HSBC
Holding plc aids the consumers for taking care of their day today finances along with the
managing and protecting the growth of their wealth.
There are several legal structures of a business organisation which include public company,
voluntary, private company, charity and many more. These structures have been developed on
the basis of characteristics and operations of business organisations. HSBC Holding plc is a
private limited company which is privately held for small businesses. Under this business
organisation the liability of all the members of bank is limited to the value of their shares. The
share of this business organisation cannot be traded publicly. There are several features of
private limited company as well which include limited liability, perpetual succession and many
more.
The major aim of HSBC is branding itself as The World's Local Bank. Throw adopting the
core business principles, the HSBC operating its functions for the purpose of accomplishing the
objectives. Along with this they are also stresses that commitment with their employees by
helping them to create long term customer relationships.
HSBC holding PLC is performing its business operations in all over the world through the
several number of legal entities and branches. It is necessary for them to use affective market
structure in order to reach at the customers in an effective and efficient manner. The management
of HSBC is using the matrixed management structure (Tsai, 2017). It is defined as the
organisational structure under which some individuals and employees report to more than one
supervisor or leader. It is necessary for the organisation because it helps them in managing all the
tasks in an effective and efficient manner. It is found as insential for the HSBC holdings PLC to
follow the respective organisation structure because of its several advantages which include
collaboration among several departments, combine of projects and functional management
structure, permission of interdependent communication, development of new skill sets in
employees and many more. Majorly it perform the function of bringing all the similar skilled
employees and team members in the same department and allow the organisation for capitalising
on the resources.
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