Strategic Management: HSBC Case Study

This report examines the strategic management practices of HSBC, a leading bank. It discusses the industry structure, market position, innovation, CSR, and governance of HSBC. The report highlights how strategic management is used by HSBC to achieve its goals.

Strategic management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is regarded as the use of the capital of a company to accomplish its
specific goals. It entails setting priorities, examining the business landscape, reviewing the
internal structure, reviewing approaches and maintaining management carries out plans around
the enterprise (Ward, 2012). It also uses common awareness to formulate strategic plans and
direct employee actions to ensure that the whole company goes forward. For these purposes,
good strategic strategy needs an inside as well as an outside view. To better gain the insight of
strategic management HSBC have been selected which is a leading bank across world.
In this report, brief history of company, industry and market position and size is discussed.
In addition Innovation and Strategic Innovation, CSR, governance and ethics are also elaborated
in the context of HSBC with its competitor.
MAIN BODY
Industry structure
HSBC works across a range of legal bodies and affiliates around the globe. The key
of HSBC Holdings plc is a publicly traded company founded in England. HSBC based in the
London, is reflected in the stock markets in London, Hong Kong, Bermuda and New York, Paris.
The organisations that comprise the HSBC Community offer a wide spectrum of financial
facilities. HSBC seems to have a matrixes organizational system and is structured mainly in line
with its regional market and service functions. This is undergirded by their legal company
system, which is comprised of a multinational network comprising locally organized affiliate
entities with country and national supervision. This is a condensed representation of this. All of
these divisions have a board members and organization that represents their operations and their
sophistication. To improve transparency and knowledge flows, they have 7 main divisions that
take accountable for managing core businesses in their area (Vogel and Güttel, 2013).
Consequently, a variety of holding firms have been named as mediation bodies throughout the
Community. To satisfy certain local criteria, these businesses offer administrative money, but
only HSBC company limited addresses liability to foreign creditors. Respectively HSBC
Western Europe Holdings Inc and HSBC Holdings Asia Ltd are issuing financial debt to
something like the borrower HSBC Holdings plc.
Market Position

The company division of HSBC Bank is split widely into Corporate Banking, Asset
Management, retail banking, International Banking including Global Finance & Markets. It is
corporate banking, Corporate Banking but mostly vertical sector asset management is indeed a
feature in the BCG network. Because of the involvement of a significant number of major and
MNC banks, including NBFCs, HSBC is failing in this field, HSBC's corporate banking and
regional banking & retail sector division is the legitimate question. By 2020, it was just the 6th
largest financial institute in the country and Europe's largest, with assets worth 2,715 trillion.
HSBC bank has over 4700 branches all over the world that support the business build consumer
contact points. Throughout this era of sophisticated cyber security, the business like HSBC is
stopping consumers from creating a new account and doing so by rendering their websites and
financial transfers readily available via online banking to their clients such that a consumer can
use services also at their positions instead of visiting the bank for almost the same (Schilling and
Shankar, 2019).
Country markets and size
HSBC has approximately 3,900 branches in 65 participating countries along all North America,
Africa, Oceania, Germany, Asia and South America, as well as approximately 38 million
consumers. As of 2014, it was really the 6th largest public business across the globe, as per a
comprehensive index published by Forbes. HSBC purchased Demir bank, a bankrupt Turkish
financial institution, in July 2001. In July 2002 Andersen stated that HSBC USA, Inc. will buy a
component of Andersen's regulatory company from a new company, Wealth and Tax advisory
services USA Inc. The proposed HSBC Personal digital marketing Division will represent the
interests of wealthy individuals seeking asset and tax advice. HSBC revealed in anticipation for
the Brexit that it would pay as many as $300 million through litigation and resettlement costs as
it wants to leave 1,000 team mates across London to Paris. The institution had $4 million net
expenses in the quarter of 2017 towards "costs connected also with Britain's EU departure"
HSBC intends to transfer about one-fifth of all its London-based financial advisers towards its
Paris facilities to ensure the continuous starting point to something like the common currency for
the European Union (Hitt, Ireland and Hoskisson, 2012). Although its offices will stay in
London, the relocation of workers is projected to avert a reduction of $1 billion in sales after
Brexit.
Innovation and Strategic Innovation

Data processing and computer analysis advances had a huge effect on the success
banking industry. SII in HSBC seeks to build on the progress achieved in all these areas with a
special emphasis on consultancy services, accelerating revenue, risk management, analytical
software and development resources. Increased convergence of apps and software and
forthcoming legislation are transforming the environment, making the open banking and
consumer infrastructure a critical role. Innovation within HSBC is especially involved in multi-
bank networks, emerging finance houses, built-in infrastructure and distribution network digital
technology. The position is member of the Digital Relationship Growth & Investment
department at HSBC Retail wealth management (Rothaermel, 2016). Most significantly, bank
job is to help create digital services that are drastically more contextual, personalized and
meaningful and that build on the strengths of HSBC as an online organisation. This position will
help the team find potential markets, build business ideas, evaluate viability and generate
prototypes in several areas needed. Create and develop strategies that define emerging business
trends, and collaborate with top leadership throughout regions and departments to target plans
and activities.
CSR
Through being a party to the agreement to the UN Environment Plan Declaration by
investment banks on Climate and Sustainable Growth, HSBC also classically defined its
contribution to sustainability as soon as 1992. The HSBC development foundation became later
founded in the UK and, from 2001 onwards, the group periodically reported their success in CSR
activities via annual CSR reports. In the 2003 study published by HSBC about Corporate Social
Responsibility (CSR), was described as meeting the interests of consumers, stakeholders, staff
and other customer n conducting company professionally and sensibly for long-term
performance (Hill, 2017). All programs under the CSR should:
 Represent main topics related to technology and environmental protection
 Have simple priorities and tangible effect
 Allow a sustainable return for the society
 Be able to show the dedication HSBC has for the society
 Enable employee participation by volunteering wherever necessary or necessary
It is important to prevent possible conflicts of interest that might occur whenever an EXCO
representative or CSR Member or CSR Role has a vested interest in a non-profit agency

involved. This impropriety must be eliminated through a statement of benefit to the Executive
board by the person concerned. In which HSBC managers join a non-profit board to strengthen
management and oversight of their operations, they must be excluded from any vote to finance
the group. Customer offers to even provide fund funding for non-profits will be rejected.
Similarly, civic contributions must not be made to boost overall any relations with clients. The
CSR Committee is able to collect analysis of social but mostly ecological impacts of the
implemented services and initiatives. Requirements for 'production' and 'effects' of all new
initiatives and initiatives should be tracked. The CSR committee must guarantee that perhaps the
non-profit organizations track and comment on their mission results and influences. Projects can
be tracked through: semi-annual progress updates, financial statements alongside fund utilization
reports (as accepted by the EXCO format) as well as program / project outreach programs. The
Executive board must guarantee that operations are recorded as necessary under the rules of the
Legislation at the close of the financial period (Hill, Jones and Schilling, 2014). Today HSBC's
sustainability strategy focuses on 3 primary areas environmental sustainable development
investments, employment opportunities and financial efficiency. They have started making
concrete steps forward in both of those fields. Bank has carried out a number of promises to lead
to a low-carbon economic transformation. Furthermore, HSBC has promised long-term funding
to help individuals access employment and preparation so that they can gain the expertise will
need to excel in today career. NGOs and other primary players are promoting ethical business
within multinational distribution networks across the relationships with consumers. Even HSBC
acknowledges the obligation to adhere to the Sustainable Development Goals (SDGs) of the
international community. The SDGs are an internationally negotiated mechanism to help keep
the world safe, end hunger and promote stability and development and are made up of 17
objective and 169 targets to be accomplished by 2030. The research on those three growth goals,
our funding and finances, as well as the manner we conduct business will keep playing our factor
in accomplishing the SDGs.
Governance and ethics
HSBC is looking at options to acquire financial institutions in Indonesia, the Thailand
and Vietnam through the line with the idea towards transactions across Asia. Malaysia is of
specific importance as HSBC was also the first banking to be founded there currently; however it
is not the leading force. Acquisitions will be unnecessary in Malaysia and Indonesia because

HSBC is still very involved in those countries. The HSBC is against all strongly placed in Asia's
second largest economy countries: India and china (Eden and Ackermann, 2013). China was
always a primary concern and HSBC was first to join once new industry has been finally opened
to outsiders. Reverence for professional confidentiality means responsibilities both to clients as
well as to the financial institution. Employees shall not reveal any details about consumers or
their activities, economic or financial details or details about personnel of the corporation to
other workers or private entities apart from in the situations provided for by legislation and in the
usual performance of its duties or when the HSBC community association allows for the
exchange of knowledge within the scope of the formal authorization staff have a right of
confidentiality someone who does not wish to know classified details regarding their
responsibilities, even workers of corporations. They will take reasonable steps to protect the
security of records and documentation in regards to any unauthorized party, whether were inside
organization or outside it. Confidential business papers, regardless of medium (hard copy,
computerized, etc.), are not to be stored at the home of any employee. Company will not be able
to enter disabled access zones unless otherwise expressly necessary by their roles and direct
approval from their immediate supervisor and/or enforcement manager is necessary to do so. If
any activity or details raises concerns of corruption, workers must notify every line manager as
well as the appropriate enforcement officer promptly. Staff members must be especially careful
with regard to transactions conducted by clients or mediators which are suspicious, in especially
with regard to the sum involving, the size, complexity or geographic location of certain
transactions, the economic and accounting arrangements associated, the economic rationale for
such exchanges including, throughout the event that a business their accordance with their Bank
principle.
Employees are not allowed to report to the consumer involved or to any unauthorized
individual details or concerns regarding / over alleged laundering. Offences of this provision are
illegal pursuant to common law (Dess, 2013). Employees shall not engage in any kind of
misconduct whatever and thus are not allowed to give, pledge or award any financial gain or
other kind of advantages in the main company, intentionally or unintentionally, especially to
members of a governmental or service industry agency, to democratic figures or members, or to
staff or representatives including its corporate companies who may be leaving the company.

CONCLUSION
In end of report, it is concluded that Strategic management applies to internal and external
marketing activities and also monitoring, which means that the organization achieves the targets
laid out during the strategic management strategy. Thus support the HSBC community, in
particular, to gain or maintain the value of any deal. Any workers behaving in good standing
notifying acts that may represent wrongdoing they know in the performance of its duties do not
face punitive discipline unless they are the victim of such wrongdoing or an informant thereof.

REFERENCES
Books and Journals
Dess, G., 2013. Strategic management: Text and cases. McGraw-Hill Education.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: Theory & cases: An
integrated approach. Cengage Learning.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Hitt, M. A., Ireland, R. D. and Hoskisson, R. E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Rothaermel, F. T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Schilling, M. A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Vogel, R. and Güttel, W. H., 2013. The dynamic capability view in strategic management: A
bibliometric review. International Journal of Management Reviews. 15(4). pp.426-446.
Ward, K., 2012. Strategic management accounting. Routledge.