Impact of Macro Environment on Strategic Plan of HSBC: An Analysis

Strategic Management
Plan
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Analyse the impact and effect of macro environment on an organization’s strategic plan by
applying appropriate frameworks...........................................................................................3
M1 Thorough analysis of macro environment in order to determine and facilitate strategic
management decisions............................................................................................................5
Task 2...............................................................................................................................................6
P2 By using appropriate theories or frameworks, analyse the internal environment and internal
capabilities of a given company.............................................................................................6
M2 Evaluation of internal environment of an organization to assess its strengths and
weaknesses and its internal capabilities.................................................................................8
Task 3...............................................................................................................................................9
P3 Application of Porter’s Five Forces model to evaluate the competitive forces of a given
market sector for an organisation...........................................................................................9
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes.........................................................................................................................11
Task 4.............................................................................................................................................11
P4 Interpret and devise strategic planning for a given organisation by applying various
theories and models..............................................................................................................11
M4 Construct a proper strategic management plan that include tangible and tactical strategic
priorities and objectives........................................................................................................13
D1 Evaluate and analyse information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions........14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15
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INTRODUCTION
Strategic Management Planning can be defined as the process by which management
analyses the current performance of the organization and creates new business strategies and
organisational goals by monitoring, assessing, analysing the overall organizational environment
(Pollard and Hotho, 2006). In order to achieve the goals and objectives, it is essential for
business to pay attention towards the business planning and strategies, and ensuring proper
implementation. HSBC is a British origin multinational company established in the year 1991,
headquartered in London. It is one of the largest bank of the world with branches in 64 countries.
This report on HSBC will help in analysing the strategic plan of the company by covering topics
like impact of macro environment on organization and its business strategies, its internal
environment, evaluation of competitive environment using models such as Porter Five Forces
Model, evaluation of company’s resources and capabilities, and various other theories and
concepts. Additionally, this reports will also suggest various ways by which company can
monitor its chosen strategies to ensure success.
MAIN BODY
Task 1
P1 Analyse the impact and effect of macro environment on an organization’s strategic plan by
applying appropriate frameworks.
The external economic factors like inflation and deflation, political stability, employment,
interest rates etc. are considered as macro environment for a business (Chhatoi and Sahoo, 2019).
These macro environment factors reflect the economic behaviour of a country and play a crucial
part in HSBC’s business strategies, as the company is operating in finance and security industry.
Therefore, it is essential for company to understand the influence of these factors while
designing its business strategies and plans. For this purpose, PESTLE and SWOT analysis of
HSBC is being used.
PESTLE Analysis of HSBC –
It is a tool that helps an organization to identify and analyse the key external factors that are
affecting the operational strategies and the performance of organization (Alanzi, 2018). The
elements of PESTLE analysis and their impact on HSBC is discussed below:
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Figure 1 PESTLE Analysis
 Political Factors: The policies and regulations by local government plays a major role in
functioning of HSBC. The exit of Britain from EU (Brexit), has seriously impacted the
business plan and strategies of company. The company operates in multiple countries, so
it is a challenge for a company to adhere the policies formed by the local government for
Regional Banking industry. Other factors like political instability, taxes and tariffs,
government collaboration etc. also affects the company’s planning and management.
 Economic Factors: It includes factors like – taxation rate, inflation and deflation, skill
level of workforce, exchange rate, consumer purchasing power, etc. HSBC’s performance
is closely correlated with the economic situation of a country, variation in exchange rate
is also affecting the investment plans of the company not only for the short term but also
for long term.
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