Strategies of HSBC bank | Report

Added on - 16 Sep 2019

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0Strategy forSustainablity
Table of ContentsExecutive Summary.........................................................................................................................1Introduction......................................................................................................................................2Main Analysis..................................................................................................................................23.1 Question 1.............................................................................................................................2External Analysis of HSBC Bank............................................................................................2Internal Analysis of HSBC Bank.............................................................................................4Identification of Performance Gaps.........................................................................................43.2 Question 2..............................................................................................................................43.3 Question 3..............................................................................................................................5Conclusion.......................................................................................................................................6References........................................................................................................................................7Appendices......................................................................................................................................71
Executive SummaryHSBC Bank is known as the largest American bank which provides different facilities andservices to its existing customers. The organization operates in different business segments. Itprovides its customers with all facilities of commercial banks and an insurance organization.This report mainly focuses on the feasibility of strategies of HSBC bank. Internal and externalanalysis of the organization is performed to understand the different internal and external factorswhich influence the success of the organization in high context. Analysis of internal or externalbusiness factors of HSBC Bank helpful in developing and implementing the successfulstrategies. In addition, different steps are described with which HSBC can develop thesustainable strategies and also identify some challenges which the organization faced during theimplementation and development of a sustainable business strategy. Development andimplementation of business strategy efficiently bring various success opportunities to theorganization which it can use to gain confidence and loyalty of the people toward its productsand services.2
IntroductionHSBC Holdings plc. considered as a British-based multinational financial services and bankingorganization whose headquarter is situated in London, United Kingdom. In this report, we willstudy about the HSBC strategies and its internal and external environment. On the basis of thestudy, we develop a sustainability strategy which can grow the organization further and alsosuggest ways implement the strategies. Internal and external environment analysis provides asignificant glimpse about the core competencies, opportunities, and external factors of theorganization (Cutter, 2015). It is known as the fourth largest bank in the world as per its numberof assets. The total assets of the HSBC holding are $2.65 trillion. It was established by theShanghai and Hong Kong Banking Corporation in 1991. It is mainly established to providesustained and long-term financial services to a large number of customers. It named on the basisof its co-founders. The organization was incorporated during 1866. Both the United Kingdomand Hong Kong considered the home market of the organization. It is working more than 70countries with more than 6,000 offices in different branches such as Asia, Europe, SouthAmerica, and Africa. The organization served approximate 70 million customers globally. Tostudy the external factors of the organization we utilize PESTEL analysis in this document. It isbecause, PESTEL is considered an efficient tool it gives us significant understanding about theall external environment factors such as political, environmental, social, technological,economical and legal. All these factors have a significant influence on the working of HSBCbank. Porter five forces model is only a tool which gives understanding only about the potentialstrategies of the competitors not the other factors. But, competitors also have a significant role sowe also used porter five forces model to understand the competitive environment of the HSBCBank. The service quality of the organization makes it important in the eyes of customers3
(Wilson, 2012). It is known for the quality of its service. It has a market capitalization ofapproximate $200 billion and 2, 00,000 stakeholders in different countries. The strategy directionof the organization represents its market position.Main AnalysisIn this section, we will study about the internal and external environment of the organization andon the basis of outcome we measure the sustainability of its existing strategies and challengesfaced by the organization in developing and implementing its sustainability strategies(Binswanger, 2016). In order to identify the market value and global position of the HSBC Bank,we focused in external or internal analysis. To measure the internal and external environment ofthe organization we utilize different tools such as porter model and PESTEL analysis formeasuring the external environment and SWOT analysis or core competency, or product andservice analysis for internal environment (Chang, 2016).3.1 Question 1External Analysis of HSBC BankPESTEL AnalysisThis tool is utilized to understand the macroeconomic factors of the organization which can behelpful in measuring the external opportunities and threats (Longoni, 2014). Its components arefollowing (Figure 1.2):Generally, it is considered that banking services of HSBC are highly covered by the policies andregulations formulated by the different types of government in different countries where they are4
operating (Almeida, 2015). The organization has the ability to follow all the rules and regulationsand accomplish its different business operations under the boundaries fixed by the government.Furthermore, the organization also formulates its own defense strategies besides anygovernmental limitations and restrictions (Dooly, 2015).Being one of the leading and competitive business organizations, HSBC bank should have asuccessful and strong economic strength. The organization is operating in an efficient mannerdespite presence of different problems (Wolmarans, 2014). The management of the organizationenables it to deal efficiently with its economic factors. This will enable the organization tomaintain a healthy economic condition as well as develop a shield against unemployment.Working of HSBC is highly influenced due to the circumstances of the society in which it isoperating (Clune, 2014). Side by side, the management of the organization also ensure that eachsociety gave the similar options to take the benefits from the offered resources and facilitiesprovided by the HSBC Bank.The important thing regarding information technology is to improve the internet technologyinfluence the working conditions of HSBC Bank. The organization utilizes internet technology toidentify its global customers and also help them in providing the enough knowledge about therecent banking trends which can provide lots of benefits to them (Liedtke, 2013).Porter’s Five Forces AnalysisIt is considered that the organization has large rivals in the financial and banking sectors. Thus,the degree of competition forces the organization to develop efficient strategies to maintain itsleadership position in its existing market (Barnett, 2015). In addition, because of the abilities ofthe high level competitive organization, HSBC formulated different strategic plans to make sure5
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