Strategic Evaluation of HSBC Holding Plc

Strategic Management
Strategic Evaluation

Table of Contents
INTRODUCTION...........................................................................................................................1
Critically evaluation of the value of purpose, mission, vision and objective of HSBC Holding Plc
in determining the strategic direction..............................................................................................1
Competitive advantage of HSBC Holding Plc using VRIO framework..........................................2
PESTLE framework for analysing External environment for HSBC Holding Plc..........................4
Porter’s five force model for HSBC Holding Plc............................................................................6
Review of the HSBC Holding’s strategy.........................................................................................8
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
Changes in the business environment have made it imperative for the business firms to opt for
continuous evaluation of the strategies or plans made by the company that would assist them in
achieving their long term and short term goals. Strategic management is defined as the process of
identification and description of the strategies adopted by the managers, through ongoing
planning, monitoring, analysis and assessment of the needs and wants of the company to meet its
objectives, to have a competitive edge over others and enhance their overall performance
(Lusiani and Langley, 2019). Therefore, it is a process of setting objectives, analysing internal
and external environment of business in order to make the best use of strength, and exploit the
opportunities in the favour of a company. Through making intense strategies companies be
prepared for the predictable and unforeseen situations. HSBC holding Plc was founded in the
year, March, 1865 with the idea of serving to the international needs being a local bank. The
below mentioned report cover the evaluation of strategies made by HSBC with the help of
PESTLE, Porter’s five forces etc.
Critically evaluation of the value of purpose, mission, vision and objective of
HSBC Holding Plc in determining the strategic direction.
Strategic planning is an integral part of any business as it helps in setting priorities, effective
utilization of resources, and make sure that business activities are in sync with the already set
goals and objectives. These strategies act as a road map for the company to follow during the
entire course of business operation so that company reaches its potential to achieve its objectives
while enhancing its competitiveness and performance level. In order to have an intense and
effective strategic planning there are numerous elements which act as a basis for the formation
and implementation (Davis and Bendickson, 2021).
Vision: A vision statement of any company describes the future status of the company if
company achieve its short term goals, i.e. mission of the business. It is best defined as the long
term goals of a company emphasising over goals and ambition of business. Vision statement of
the HSBC bank is to create a better world for their investors, people, customers, communities as
a whole and planet that everyone share. Realistic, credible and enchanting vision statement of a
company keep the employees committed, energetic and motivated in an organisation culture,
creating a meaning in worker’s life.
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Mission: Unlike Vision, Mission statement laid emphasis over short term goals and objective of
a company with its present status in a business environment. Mission statement is significant to
each business as it describes the nature of business, products and services offered and customer,
therefore making it different from other competitors through defining their primary objectives.
HSBC, with their mission statement clearly defines what the company does (local bank serving
international needs), how it does (through finance trade between Europe and Asia) and who is
does for (for households, business institutions etc.), basically customers (Pirali and et. al., 2019).
Purpose: Purpose of any business highlight the key reason for which business has been created
and existed. The prime purpose of the HSBC Bank is to opening up a world of opportunities with
the appropriate use of expertise, capabilities and perspectives. Purpose oriented business like
HSBC work towards creating a positive impact over society or other stakeholders who are
involves in business such as employees, customers etc. apart from profit making. They aspire to
have a positive impact over society through their ethical, equitable and sustainable business
operations.
Objectives: Objectives of a business helps to find out the clearly set targets to be achieved during
the execution of business activities. Objectives helps the business firm to be relevant and
competitive in a market environment. Survival, profit maximisation, expanding customer base,
growth, expansion in other market are the reasons which make the company alive and is essential
for the survival of a business.
Mission, vision, objective and purpose of HSBC act as foundation stone for the company and a
guidance throughout the entire life of a business. These statements reminds and helps the
business to conduct their activities in a right and purposeful manner (Stone and et. al., 2020). As
per these statements manager guide the workforce so that business objective is achieved and
generate value for the stakeholders. It helps in allocating the resources in an effective way, guide
in decision making and comparison of actual performance with the set targets.
Competitive advantage of HSBC Holding Plc using VRIO framework
VRIO is an acronym for Valuable, rare, Imitable and organized, which help the business
firm in analysing and identifying what resources or expertise, products or partnership make the
company successful and stand out from the crowd. Through the help of VRIO framework HSBC
identifies what is their strength and what aspects or qualities can be or presently acting as key
factors to success of a business and determining their long term competitive advantage.
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