Strategic Operational Management

1Strategic operational management
Running Head: STRATEGIC OPERATIONAL MANAGEMENT
Strategic operational management
Name:
Course:

2Strategic operational management
Q1-a
Business strategies formulation and implementation are of high importance because they
can put the organization on the competitive map (Blahová & Knápková, 2011). The HSBC
Holdings is the world's second largest bank, its origins belong to Hong Kong and Shanghai. The
bank refers to both Hong Kong and the United Kingdom to be the home markets. It operates in
80 countries within four business groups, including commercial, global, retail banking and
wealth management; and global private banking scale. The bank has developed a long-term
strategy that focuses on the development of its international network and to invest in wealth and
retail businesses on the local scale (HSBC Holdings plc, 2017).
1- Analyses of current general external environmental factors that could impact HSBC by using
PESTLE analysis
The PESTLE analysis could be used to scan the bank external environment. It is a useful
tool that assesses the political, economic, social, technological, legal and environmental aspects
where the organization operates (Downey, 2007).
 Political: The bank operates according to the governmental policies issued in every country.
It formulates its protection strategies to avoid restrictions or limitations.
 Economic: HSBC enjoys stable and successful economic stability across different world
markets.
 Social: HSBC provides equal opportunities for each society to access the bank resources. It
maintains a good reputation in every society they operate within.
 Technological: The bank adopts information technology developments and depends on
information systems to manage its affiliates and customers across the globe.
 Legal: HSBC is protected by governmental regulations and policies across different
countries. It adapts its policies according to the governmental policies to ensure profitability
and survival.
 Environmental: The Financial Stability Board of the bank has established climate-related
financial disclosures that ensures transparency, reduces exposure to thermal coal and
manages the transition process for high-carbon sectors.
2- Monitoring and evaluating the performance of the implemented strategy.
The feasibility of the evaluation criteria considers the two main strategies adopted by the
bank according to HSBC Holdings plc (2017), as follows:

3Strategic operational management
 Development of international network: The bank succeeded in serving enterprises across
markets and facilitate capital flows and international trade. Also, it could optimize its global
network by being able to reduce its footprint in 67 countries at end of 2017 compared to 73 at
end of 2014.
 Investment in wealth and retail businesses with local scale: The bank could benefit from the
global social mobility and wealth creation in its retail banking and wealth management
markets. The group succeeded in reducing risk-weighted assets by $290bn and a further
reduction from management actions of $71bn in 2017.
Q1-b
BMW was founded in Germany to operate in the automotive industry. Currently, it
produces vehicles of BMW brand and it acquired Mini and Rolls-Royce (BMW Group, 2017).
1- BMW Facilities management
BMW operates in 14 countries, it has 30 assembly and manufacturing plants (BMW
Group, 2017). The engine plants are located in Munich, Austria and the UK, they are responsible
for supplying diesel and petrol engines. Engine plants in China were created to fulfill the local
production facilities. Dingolfing and Landshut in Germany are the main locations of electric
drivetrain systems used in the electrified vehicles (BMW Group, 2017).
2- BMW human resource management & job design
Workforce is the main reason for BMW success; employees can innovate and develop
new ideas due to their high-quality skills. They are selected to fulfill certain roles that match
their capabilities and they cooperate in harmony to fulfill the job requirements. Training and
development are offered across the company to ensure employees gain the latest knowledge
(BMW Group, 2017).