Globalisation of financial services: a case study
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Added on 2021-02-20
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TITLE 3 CHAPTER 1: INTRODUCTION3 CHAPTER 2: LITERATURE REVIEW 6 CHAPTER 3: RESEARCH METHODOLOGY10 CHAPTER 4: DATA ANALYSIS 13 CHAPTER 5:Reflection of HSBC&RecommendationforAlternativeResearch Methodology. The firms are trades in capital market services such as banking and insurance services, equity, bonds, forex market to increase the global presence in vast market by reaching its valued customer. It has been identified going global is consider to be the major crucial requirement for a company that support
Globalisation of financial services: a case study
Added on 2021-02-20
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Table of ContentsTITLE..............................................................................................................................................3CHAPTER 1: INTRODUCTION ...................................................................................................3CHAPTER 2: LITERATURE REVIEW.........................................................................................6CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10CHAPTER 4: DATA ANALYSIS................................................................................................13CHAPTER 5: Reflection & Recommendation for Alternative Research Methodology...............26CONCLUSION..............................................................................................................................28REFERENCES..............................................................................................................................292
TITLE“To examine the outcome of globalisation of financial services”. A case study related to HSBC.CHAPTER 1: INTRODUCTION Overview of researchGlobalisation derives that an act of becoming worldwide or liberalisation of trading inlarger market. Globalisation of financial services means where financial institution comestogether or partnered with another organisation for provides the services to its customer(Amadeo, 2019). The firms are trades in capital market services such as banking and insuranceservices, equity, bonds, forex market to increase the global presence in vast market by reachingits valued customer. It may faces some technological issues, disorder in communication,transportation cost in delivering the services to its customers. Service industry can be enhancethe trading ability of its financial services in capital market by using this massive platform.Universal trading can be possible in respect to merger and acquisition of firms or diversificationof financial services in capital market. Financial Institution required to understand the customerneeds and their expectation and provides them best business services. The important factor tofinancial institution to operate a business successfully in global market is providing value ofmoney to its customer by using the tech-based services. Financial universe services includesadvanced data processing, loosing the limitation on cross- border cash flow in order to growrapidly by accessing its direct customer.Background of researchHSBC is British multinational banking and financial service providing firm ininternational market. It is one of the largest bank in Europe in term of total assets with US$2.558trillion as well as 7th largest bank in the world. Its headquarter is in London, united kingdom andits total revenue is 5380 Cr. USD with having 235217 total number of employees It has largestbanking and financial institution Channel in market. HSBC has around 38 million customer with3900 branch offices in 67 countries. It is the sixth largest public company as well. It has beenidentified going global is consider to be the major crucial requirement for a company thatsupport to provide services to large number of people and increasing profit. Thus respective bankhave a major concern in context globalisation, which makes them more focused on expandingtheir valuable services at national level that further support in increasing profit margin.Management use to analyse the current market requirement, things offered by other competitors,3
actual willingness of international customer so that they are able to produces and providevaluable services to satisfy the needs and requirement of customer. Rational of the ResearchThe research work is mainly associated with total influence of globalising of usefulfinancial and other banking services in order to satisfy the emerging financial needs of customer(Bounphrey, 2016). Investigation rational is related with vital circumstance that are majorgrounds to reduce any kind of lacking within literature and also beneficial to create strategies andsolution to particular problem arising in conducting research work. It is noticed that the mainpurpose of doing any type of research on any topic is to create the knowledge related torespective topic, improve the skills and ability that support in better attainment of goals andobjective. As HSBC is planning to improve and expand their services across boundaries that willprovide customer more option to acquire the best product and service that will satisfy there needin pleasant manner. Rational assist investigator to modify the penetrating in context to IFRS andits importance to the absolute conception for accounting and emerging business world.Research AimIn the respective research work, the main objective is to describe the main aim and goalsof research to specific topic (Bruce and Ahmed, 2016). It is essential that actual aim must beaccurate, authentic and appropriate so that it help in determining the best possible conclusion. Inthis research topic, the aim is “To examine the outcome of globalisation on financial services”. Acase study related to HSBC.ObjectiveIt is observed that the main objective of research work must be clear, faithful, suitableand relevant to topic which support to make authentic solution. Some of the related objective tothe topic “The Globalisation of financial services” are as follows: 11To ascertain the significance of Globalisation for companies. 11To determine the effect of globalisation on financial services so that business can expand.11To determine assorted structure, which support HSBC, can globalise entire services indifferent part of world. 11To elaborate the usefulness of globalisation in relation to banking industry mainly toHSBC. 11To measure drawback of globalisation in banking industry particularly to HSBC. 4
Research QuestionIt is significance for an investigator to make sure that research question must be short,clearly stated, related to topic so that answer can be made as per the requirement (Fox andHundley, 2011). In research study all the specific question are related with actuals aims andobjective. The important question are discussed below: What are significance of Globalisation?How Globalisation affects financial services?What are assorted manner, which help to HSBC to globalise financial services?What are respective benefit of globalisation to HSBC?How globalisation can bring challenges in the context of banking industry?5
CHAPTER 2: LITERATURE REVIEWThe process related with critical assessment and effective evaluation of crucial data withthe support of reliable sources that benefit to determine any kind of lacking in knowledge andresources is known as literature review (Stevenson, 2014). It help to assess the proper knowledgewhich further aid in increasing the best suitable output for the research topic. The Literaturereview also assist to create a in depth understanding about the specific topic through properarticles, published magazines, scholar paper etc. This section in consider to be most crucial partof research and it is related with developing the best possible ideas and thoughts that will givebrief understanding of respective study. A literature review is also explained as published data ina particular subject area, and former data in a specified susceptible area within a specified timeduration. In this section data has been gathered through secondary sources like books, journals,articles, scholar papers, newspapers. Ascertain the significance of Globalisation for companies.In the opinion of Hui Boon Tan, it was determined that interrelation of large number ofbusinesses or entities across nation that helps to evaluate the economies, culture and politics sothat valuable services can be provided to desired customer base. In business scenario, the qualityof business entity to move outside the home country and develop services for large number ofcustomer in order to increase overall profit (Robertson, 2012). Nowadays business firms arecontinuously expanding business after analysing marketing situations, current trends, otherfacilities that are available by other companies so that they can effectively manage theiroperation in most profitable manner. Globalisation have effective function in processing thebusiness activities of respective firm that have a indirect and direct impact business performanceof company. There are number of crucial importance of globalisation to HSBC that are discussedbelow: Gain competitive advantages: In the present world of business there are number of companiesoperating within the same industry and have the main motive to provide useful services tocustomer and make huge profit (Bennett, James and Klinkers, 2017). Globalisation is beneficialconcept which makes easy for the business to reach more and more customer and deliver theuseful services and goods in specific time period. 6
Greater Awareness: It also have an essential role that is to createawareness among rules andregulation that have been helpful to increase the understanding of doing business at global level.This is also beneficial for the company to enhance its brand image in the mind set of people. Determine the effect of globalisation on financial services so that company can expandbusiness.According to the viewpoint of Lassou and Soobaroyen, 2017, the procedure ofglobalisation have a major impact on the business performance, as it focuses to expand thebusiness activities to large number of audience so that profit margin can be increased in future.While globalising the business at international level there is need to follow certain rules andregulation that will guide to manage and run business activities in profitable manner (Robertsonand et. al., 2014). In the present time it is becoming the primary survival for number of financialinstitute and other banking companies so that they can attain the desired goal and objectiverelated with expanding financial services and delivering the same to diverse customer. Thereforeit essential for companies to consider few main components that helpful for HSBC to survive forlong that are as follows: Better understand the needs and expectation of customer. Delivering the valuable services to customer so that there needs can be fulfilled in bettermanner. There are number of reforms that relates to effect of globalisation to the banking industrysuch as it support to provide extensive strength to the capital base of bank with the help ofsubordinated debt, recapitalization, it support to introduce prudential bonds that are useful toprovide strength Find out the ways which support HSBC, to globalise entire services in different part of world.In the words of Yong Geng, Sarkis Joseph and Bleischwitz Raimund, 2019, the marketfor almost everything is huge, but it's not large enough for many entrepreneurs. For thesegrowth-minded business owners, the rest of the world is their portion (Stearns, 2018).Attempting international growth by going global as an importer-exporter offers opportunityaplenty. Further the researcher explained some supportive ways which can helps the HSBC togrow its business in entire world. At the very first stage, an organization should try to understandthe terms, norms and conditions of the new approached market or economy. For this purpose therespective firm have to be familiar with economic trends, learn the laws and regulations of7
specific countries and conduct proper research and development on cultural environment. Thenext step towards being globalized is to evaluate the offerings the firm is providing. Afterchecking the compatibility of its products and services, selected firm have to develop its salesand marketing strategies accordingly for product positioning. All these planning and strategiesare total waste if demand and supply factor will not be adequate. For creating demand, selectedcompany have to create its potential customer base who will consume its offerings and also haveto find out suppliers and agents who may help in production and rendering services, hencemaking connections is also crucial. After completing all these mentioned processes, it is requiredto repeat this cycle to introduce new products and services. The selected company will getdisappear from the market if it does not continue its efforts therefore it is necessary to stay incourse for the establishment.Benefit of globalisation to HSBCAs per the opinion of Peter N. Stearns, it has the potential to make this world a betterplace to live in and solve some of the deep-seated problems like unemployment and poverty.Further the author said that globalization has so many benefits that it may improve the socialwellness as well as economical standard of the entire world. Globalization represents free tradewhich helps the HSBC in achieving global economic growth, creating new jobs, making thecompany more competitive and lowering prices for consumers. Competition between countries issupposed to drive prices down and foreign countries are agreed to let the organization run itsbusiness in local economy (Potrafke, 2015). It also provides poor countries, through infusions offoreign capital and technology, with the chance to develop economically and by spreadingprosperity, creates the conditions in which democracy and respect for human rights may flourish.The respective firm is now may attain the benefits of new advanced technologies, foreigninvestment and skilled personnels within it. Globalization has also provided new consumermarket place to the selected establishment to release its new innovative product and services.With the help of globalization vital information can be shared between individuals andcorporations at a very fast. It has also expedited in increasing the ease of transporting people andgoods which helps the client company in getting the information about market trends andopportunities quickly and HSBC is capable to increase its business effectiveness by catchingthose opportunities.8
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