Organizational Strategies and their Impact on HR Function of HSBC
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This paper discusses the impact of organizational strategies, namely franchising and mergers and acquisitions, on the HR function of HSBC. It also explores the developmental strategies of mobile banking payments in China and private client strategy in Asia.
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Human resource management
Introduction
HSBC is considered as the British multinational banking and financial services holding
company. It can be analyzed that company is one of the largest bank on the 7th position on the
global platform. Headquarter of the company is in London, United Kingdom and the founder of
the company “Thomas Sutherland”. So, in this paper the discussion will be made on the
organizational strategies considered by the company and affected the HR function of HSBC. It is
important for the company to consider proper strategies so that it can be easy to accomplish goals
and objectives on the global platform. The organizational strategies considered by the company
are franchising and Merger and Acquisition. Also the developmental strategies will be explained
in the last phase and through these strategies it can be easy for the company to maintain its
competitive advantage.
Franchising
It can be seen that franchising is a concept that can help the company to expand its market share
in the competitive market. Franchising is a considered as the method in which the owner of the
business focuses on the distribution with the help of the dealers who can also be called as the
franchisees. It is considered as one of the marketing concept that is considered by the
organization so that it can be easy to earn more profits and also it helps in maintaining the image
in the competitive market (Lee et al., 2015). HSBC also considered this strategy in which it has
been seen that through this it can be easy to achieve growth in the competitive market and also it
helped in maintaining the overall activities of the company. With the help of the concept related
to franchising, it can be seen that company attained the large market share and also growth. Also,
through franchising it can be seen that the affect is on the HR function of the company (Alon,
2014).
It can be stated that through franchising, the workload of the HR enhanced. It is not simple for
the HR to manager to focus the entire activities in the competitive market. But it is the
responsibility of the HR of the company to maintain the overall records of the transactions which
are made or also to maintain the records of the employees who are working in the company.
Through franchising it can be seen that the impact is seen on the enhancement in the workload. It
can be seen that when HSBC started working with British franchise association then it enhanced
1
Introduction
HSBC is considered as the British multinational banking and financial services holding
company. It can be analyzed that company is one of the largest bank on the 7th position on the
global platform. Headquarter of the company is in London, United Kingdom and the founder of
the company “Thomas Sutherland”. So, in this paper the discussion will be made on the
organizational strategies considered by the company and affected the HR function of HSBC. It is
important for the company to consider proper strategies so that it can be easy to accomplish goals
and objectives on the global platform. The organizational strategies considered by the company
are franchising and Merger and Acquisition. Also the developmental strategies will be explained
in the last phase and through these strategies it can be easy for the company to maintain its
competitive advantage.
Franchising
It can be seen that franchising is a concept that can help the company to expand its market share
in the competitive market. Franchising is a considered as the method in which the owner of the
business focuses on the distribution with the help of the dealers who can also be called as the
franchisees. It is considered as one of the marketing concept that is considered by the
organization so that it can be easy to earn more profits and also it helps in maintaining the image
in the competitive market (Lee et al., 2015). HSBC also considered this strategy in which it has
been seen that through this it can be easy to achieve growth in the competitive market and also it
helped in maintaining the overall activities of the company. With the help of the concept related
to franchising, it can be seen that company attained the large market share and also growth. Also,
through franchising it can be seen that the affect is on the HR function of the company (Alon,
2014).
It can be stated that through franchising, the workload of the HR enhanced. It is not simple for
the HR to manager to focus the entire activities in the competitive market. But it is the
responsibility of the HR of the company to maintain the overall records of the transactions which
are made or also to maintain the records of the employees who are working in the company.
Through franchising it can be seen that the impact is seen on the enhancement in the workload. It
can be seen that when HSBC started working with British franchise association then it enhanced
1
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Human resource management
the workload as now the HR as to maintain the overall activities of the franchise or have to
control the entire activities in the competitive market. The franchising is done by the company
and it is the responsibility of the HR to focus on managing the entire activities which will help in
accomplishing the overall goals and objectives in the competitive market (Fan, Kühn and
Lafontaine, 2017).
Mergers and Acquisition
The next organizational strategy which is considered by HSBC is related to mergers and
acquisitions in which it can be seen that the activities are managed by the HR of the company.
The overall merger and acquisition business of the company is managed form London and the
HSBC has on the ground merger and acquisition bankers in Argentina, Australia, Brazil and
China. It can be investigated that through this the activities of the company are managed by the
product specialist which include bankers and with a specific experience. With this organizational
strategy which is considered by the company the impact can be seen on the HR. It can be seen
that through this strategy the company focused on expanding the market share and also achieve
success in the competitive market (Ahmed, Manwani and Ahmed, 2018).
With this organizational strategy considered by the company the impact can be seen on the HR.
It can be seen that with the strategy related to merger and acquisition, it is the responsibility of
the HR to give training to the employees. The training is given by the HR of the company which
has helped the business to achieve success in the competitive market. Also, now the HR of the
company has to train the large number of the employees in the workplace. It has also boosted the
overall operations of the company and results in positive outcome (Bailey, 2014).
Also with merger and acquisition it can be seen that there is the requirement of large number of
the employees in the workplace. So, it is the duty of the HR to focus on the overall process of
recruitment. the overall steps is considered by the HR of the organization so due to this strategy
the HR has to focus on the employees who are dedicated towards work and also who can easily
complete their activities in the international market or in the domestic market. With the help of
this strategy the workload has also been distributed as people can give interview in the different
branches of the company. So, this strategy is considered as the best strategy that boosted the
overall activities of the company and also helped the business to maintain its image in the
2
the workload as now the HR as to maintain the overall activities of the franchise or have to
control the entire activities in the competitive market. The franchising is done by the company
and it is the responsibility of the HR to focus on managing the entire activities which will help in
accomplishing the overall goals and objectives in the competitive market (Fan, Kühn and
Lafontaine, 2017).
Mergers and Acquisition
The next organizational strategy which is considered by HSBC is related to mergers and
acquisitions in which it can be seen that the activities are managed by the HR of the company.
The overall merger and acquisition business of the company is managed form London and the
HSBC has on the ground merger and acquisition bankers in Argentina, Australia, Brazil and
China. It can be investigated that through this the activities of the company are managed by the
product specialist which include bankers and with a specific experience. With this organizational
strategy which is considered by the company the impact can be seen on the HR. It can be seen
that through this strategy the company focused on expanding the market share and also achieve
success in the competitive market (Ahmed, Manwani and Ahmed, 2018).
With this organizational strategy considered by the company the impact can be seen on the HR.
It can be seen that with the strategy related to merger and acquisition, it is the responsibility of
the HR to give training to the employees. The training is given by the HR of the company which
has helped the business to achieve success in the competitive market. Also, now the HR of the
company has to train the large number of the employees in the workplace. It has also boosted the
overall operations of the company and results in positive outcome (Bailey, 2014).
Also with merger and acquisition it can be seen that there is the requirement of large number of
the employees in the workplace. So, it is the duty of the HR to focus on the overall process of
recruitment. the overall steps is considered by the HR of the organization so due to this strategy
the HR has to focus on the employees who are dedicated towards work and also who can easily
complete their activities in the international market or in the domestic market. With the help of
this strategy the workload has also been distributed as people can give interview in the different
branches of the company. So, this strategy is considered as the best strategy that boosted the
overall activities of the company and also helped the business to maintain its image in the
2
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Human resource management
market. It can be seen that the basic function of the HR is to manage the overall compensation
which is given to the employees. So, when the company considered the strategy of merger and
acquisition it can be seen that the number of the employees also enhances, so it has given impact
on the overall managerial position of the company. Now HR has to control, manage and oversee
all the activities which are taking place in the workplace (Madanoglu and Castrogiovanni, 2018).
So, it can be stated that the overall responsibility of the HR has been enhanced when the
organizational strategy related to merger and acquisition and franchising is taken into
consideration. It is important for the HR to manage these activities so that it can be easy to attain
the overall goals and objectives in the competitive market. Also, this has helped in
accomplishing the overall goals and objectives in the high level of competition prevailing in the
market (Trudeau and McLarney, 2017).
International development strategies of HSBC
Mobile banking payments in china
International development strategy considered by HSBC is related with mobile banking
payments. It can be seen that HSBC is one of the foreign bank in china and the company
launched a mobile banking payments service for the Chinese students who are studying overseas.
It helps the parents to pay for their children and the transactions can be made easily by saving
time. This strategy is considered by the company in the Chinese market and it has enhanced the
market share of the company on the international platform. It has also maintained the overall
competitive advantage of the company on the international platform. It can be seen that through
this strategy the company is able to maintain its entire demand in the market (Dahlberg, Guo and
Ondrus, 2015).
The students are using the mobile application introduced by the company and through this it can
be simple for the company to enhance the overall demand of the services offered by the company
in the competitive market. This is one of the developmental strategies which is considered by the
company so that it can be simple for the people to use the services offered to the customers. It
has also made the life of the individual convenient and easy and boosted the overall growth in
the market. This has developed the overall activities of the company and helped the company to
3
market. It can be seen that the basic function of the HR is to manage the overall compensation
which is given to the employees. So, when the company considered the strategy of merger and
acquisition it can be seen that the number of the employees also enhances, so it has given impact
on the overall managerial position of the company. Now HR has to control, manage and oversee
all the activities which are taking place in the workplace (Madanoglu and Castrogiovanni, 2018).
So, it can be stated that the overall responsibility of the HR has been enhanced when the
organizational strategy related to merger and acquisition and franchising is taken into
consideration. It is important for the HR to manage these activities so that it can be easy to attain
the overall goals and objectives in the competitive market. Also, this has helped in
accomplishing the overall goals and objectives in the high level of competition prevailing in the
market (Trudeau and McLarney, 2017).
International development strategies of HSBC
Mobile banking payments in china
International development strategy considered by HSBC is related with mobile banking
payments. It can be seen that HSBC is one of the foreign bank in china and the company
launched a mobile banking payments service for the Chinese students who are studying overseas.
It helps the parents to pay for their children and the transactions can be made easily by saving
time. This strategy is considered by the company in the Chinese market and it has enhanced the
market share of the company on the international platform. It has also maintained the overall
competitive advantage of the company on the international platform. It can be seen that through
this strategy the company is able to maintain its entire demand in the market (Dahlberg, Guo and
Ondrus, 2015).
The students are using the mobile application introduced by the company and through this it can
be simple for the company to enhance the overall demand of the services offered by the company
in the competitive market. This is one of the developmental strategies which is considered by the
company so that it can be simple for the people to use the services offered to the customers. It
has also made the life of the individual convenient and easy and boosted the overall growth in
the market. This has developed the overall activities of the company and helped the company to
3
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Human resource management
maintain its positive image in the high level of competitive market. So, it can be stated that this is
the best strategy considered by the company (To and Lai, 2014).
Developmental strategy in Singapore
It can be seen that HSBC focused in building the private client strategy in Asia in which the
focus is given on expanding the insurance and wealth management divisions. It can be seen that
it has helped the company to maintain the competitive advantage and also boosted the overall
working pattern of the employees. Through this strategy it can be simple to enhance the overall
satisfaction level of the employees in the market. It has also helped to achieve success in the high
competitive market (Kacker et al., 2016).
Conclusion
So, by analyzing the paper it can be concluded that HSBC focused on the strategy related to
franchising and merger and acquisition. Due to these strategies the work load of the HR in the
company enhances like on the recruitment and training function in the workplace. It can be seen
that through this strategy it can be easy for the company to achieve growth in the competitive
market and it has also boosted the overall profits of the company. It can be seen that the two
developmental strategy considered by the company are related to mobile payment strategy in
china and private client strategy in Asia. Through these strategies it can be simple for the
company to enhance the overall satisfaction and also it has given impact on the overall practices
of the HR.
4
maintain its positive image in the high level of competitive market. So, it can be stated that this is
the best strategy considered by the company (To and Lai, 2014).
Developmental strategy in Singapore
It can be seen that HSBC focused in building the private client strategy in Asia in which the
focus is given on expanding the insurance and wealth management divisions. It can be seen that
it has helped the company to maintain the competitive advantage and also boosted the overall
working pattern of the employees. Through this strategy it can be simple to enhance the overall
satisfaction level of the employees in the market. It has also helped to achieve success in the high
competitive market (Kacker et al., 2016).
Conclusion
So, by analyzing the paper it can be concluded that HSBC focused on the strategy related to
franchising and merger and acquisition. Due to these strategies the work load of the HR in the
company enhances like on the recruitment and training function in the workplace. It can be seen
that through this strategy it can be easy for the company to achieve growth in the competitive
market and it has also boosted the overall profits of the company. It can be seen that the two
developmental strategy considered by the company are related to mobile payment strategy in
china and private client strategy in Asia. Through these strategies it can be simple for the
company to enhance the overall satisfaction and also it has given impact on the overall practices
of the HR.
4
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Human resource management
References
Ahmed, F., Manwani, A. and Ahmed, S., 2018. Merger & acquisition strategy for growth,
improved performance and survival in the financial sector. Jurnal Perspektif Pembiayaan Dan
Pembangunan Daerah, 5(4), pp.196-214.
Alon, I., 2014. The internationalization of US franchising systems. Routledge.
Bailey, M.P., 2014. Mergers and acquisitions. Chemical Engineering, 121(8), pp.71-72.
Dahlberg, T., Guo, J. and Ondrus, J., 2015. A critical review of mobile payment
research. Electronic Commerce Research and Applications, 14(5), pp.265-284.
Fan, Y., Kühn, K.U. and Lafontaine, F., 2017. Financial constraints and moral hazard: The case
of franchising. Journal of Political Economy, 125(6), pp.2082-2125.
Kacker, M., Dant, R.P., Emerson, J. and Coughlan, A.T., 2016. How firm strategies impact size
of partner‐based retail networks: Evidence from franchising. Journal of Small Business
Management, 54(2), pp.506-531.
Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business
performance: Evidence from franchising industry. International Journal of Hospitality
Management, 44(6), pp.28-37.
Madanoglu, M. and Castrogiovanni, G.J., 2018. Franchising proportion and network
failure. Small Business Economics, 50(4), pp.697-715.
To, W.M. and Lai, L.S., 2014. Mobile banking and payment in China. IT Professional, 16(3),
pp.22-27.
Trudeau, C. and McLarney, C., 2017. How Can Banks Enhance International Connectivity with
Business Customers?: A Study of HSBC. IUP Journal of Business Strategy, 14(2),pp.45.
5
References
Ahmed, F., Manwani, A. and Ahmed, S., 2018. Merger & acquisition strategy for growth,
improved performance and survival in the financial sector. Jurnal Perspektif Pembiayaan Dan
Pembangunan Daerah, 5(4), pp.196-214.
Alon, I., 2014. The internationalization of US franchising systems. Routledge.
Bailey, M.P., 2014. Mergers and acquisitions. Chemical Engineering, 121(8), pp.71-72.
Dahlberg, T., Guo, J. and Ondrus, J., 2015. A critical review of mobile payment
research. Electronic Commerce Research and Applications, 14(5), pp.265-284.
Fan, Y., Kühn, K.U. and Lafontaine, F., 2017. Financial constraints and moral hazard: The case
of franchising. Journal of Political Economy, 125(6), pp.2082-2125.
Kacker, M., Dant, R.P., Emerson, J. and Coughlan, A.T., 2016. How firm strategies impact size
of partner‐based retail networks: Evidence from franchising. Journal of Small Business
Management, 54(2), pp.506-531.
Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business
performance: Evidence from franchising industry. International Journal of Hospitality
Management, 44(6), pp.28-37.
Madanoglu, M. and Castrogiovanni, G.J., 2018. Franchising proportion and network
failure. Small Business Economics, 50(4), pp.697-715.
To, W.M. and Lai, L.S., 2014. Mobile banking and payment in China. IT Professional, 16(3),
pp.22-27.
Trudeau, C. and McLarney, C., 2017. How Can Banks Enhance International Connectivity with
Business Customers?: A Study of HSBC. IUP Journal of Business Strategy, 14(2),pp.45.
5
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Human resource management
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