Comprehensive Strategic Analysis and Planning for HSBC Bank

This report provides a comprehensive business strategy analysis of HSBC Bank, a British multinational investment bank. It begins by outlining HSBC's mission, vision, and objectives, followed by a detailed PESTLE analysis to assess the impact of political, economic, social, technological, environmental, and legal factors on the bank's operations. The report also employs a stakeholder matrix to identify key stakeholders and their influence. Furthermore, it evaluates HSBC's strategic capabilities using the resource-based view and McKinsey's 7S model to analyze the internal environment, focusing on strategy, structure, systems, shared values, skills, style, and staff. Porter’s Five Forces model is applied to evaluate the competitive forces of the market sector for the organization. The analysis concludes with a discussion of strategic planning techniques, including benchmarking and business analysis, to devise strategic planning for the organization. This report is designed to provide a thorough understanding of HSBC's strategic positioning and potential avenues for sustainable competitive advantage.

Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Apply different better frameworks to analyze the influence of the macro environment in
company strategy....................................................................................................................1
Task 2...............................................................................................................................................4
P2. Evaluate the capabilities and internal environment of the specific organization using
appropriate framework...........................................................................................................4
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.......................................................................................................8
Task 4...............................................................................................................................................9
P4. Illustrate to applying different range of theories and concept which devise to implies
strategic planning for given organisation...............................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy defines overall process, procedure, and certain pattern or tactics that
adapt and implement in context for enhancing the better scope of market and better competitive
advantage. It is defined as a master plan implemented by an individual so that a high competitive
position can be achieved within the marketplace (Hahn and Tampe., 2021). Moreover to this, this
is quite helpful for a company with better coordinate within active market situation. Furthermore,
there are several systematic and essential elements associated with better strategies for the
organization. Apart from it, there also are several strategies of the organisation which are related
to ensuring sustainability of the company as well. In this report, the organization selected HSBC
bank, a British multinational investment bank and financial services within holding company. It
is the second-largest bank in Europe. In this report, there are certain analytical frameworks to
acknowledge the macro environment is discussed.
MAIN BODY.
Task 1
Discussing the mission, vison and objective of HSBC along with its macro enviroment.
Mission, Vision, and Objectives of HSBC Bank
Mission: This statement of HSBC bank is stats that "bringing together people, ideas and
capital with nature progress and growth to helping create a better world. They have a focus to
clear out to connect with customer opportunities.
Vision: Their vision is to better leading international banking service of HSBC in Turkey
and other international regions.
Objectives: In the case of HSBC business, the company's objective is to provide better
banking service at the international level (Papagiannis and et. al, 2021). This will help in
becoming renowned with global brand which completes with rivals by efficient means.
Macro Environment:
It define about an organisation is related to the external factors that influence where
working or decision making of a company. Furthermore, these elements play an important role in
strategies that firms consider either task is willing to take. Hence, there are certain prominent
external environment factors, which are applied and analysed using Pestle Analysis:
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 Political Factor: These factors refer to the overall impact of politician factors such as
change in taxes or government policies which can impact the operations of an
organisation. In context to HSBC, the political factors have a huge impact on the
operations of HSBC including its business strategy. The company exposes itself to
various political factors as well as political system risks such as level of corruption, trade
regulations and tariffs related to finances. On the contrary these political factors also
enable the company in a positive manner as the political factor enables the organisation to
develop structured legal framework in order to conduct their business operations in a
optimal manner. This has a positive impact on the business strategy of the organisation
enabling them to be competitive in the market.
 Economic factor: These factors consist of economic elements such as inflation and
economic condition of a country and its influence on the business functions of an
organisation. In context to HSBC, the business strategy of the company is impacted with
the elements of this environmental factors as it functions in the financial market. The
organisation can face issues related to alternation inflation rates, foreign exchange rates
and economic cycle. Negative changes in these factors can cause hindrance in the
business operations of the company directly impacting its business strategy. Although he
organisation can utilize competition norms in order to gain competitive advantage as well
as economic factors such as inflation and industry's economic indicators along with bank
industry growth rate , consumer spending to better forecast the growth trajectory of their
organisation and negate negative aspect of external economic environment.
 Social Factor: This factor is concerned with the social environment and identifying the
dynamic as well as emerging social trends. In context to HSBC, the attitude of shared
belief play a major role in the business operations of the organisations and helps them to
establish a connection with their customers. It allows them to develop specific products
and services through effective understanding of their customers and design a suitable
message to market their mission and vision to the customers. This effective
understanding of the social environmental allows the organisation to develop suitable
business strategy which will enable them to not only gain advantage in the market but
also attain loyal customers as well. On the contrary if these external social environment is
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neglected the organisation can face a loss in customers base as well as have a negative
impact relative to its brand image.
 Technological Factor: These factors consist of the technological innovation and
development that can have affect on a market or industry. In context to HSBC, the
technological factors pay a crucial role in the business operations of the organisation.
These factors enable the business to develop new and innovative methods to introduce
their products and service in a much effective and efficient manner to their customers.
This allows them to gain larger market share and gain competitive in the market along
with higher level of customer satisfaction (Niessen and Bocken, 2021). Although in
order to attain technological innovation the company is required to focus on optimal
research and development. This can have a negative impact on the financial resource of
the organisation. Moreover, introduction of new technology is not always perceived
positively by the customers which can result in the failure of the new innovation leading
to negative impact on the overall business strategy of the company.
 Environment Factor: the environmental factors focus on the influences of a business on
its surrounding environment and its impact of ecological aspects. In context to HSBC, the
element of environment factors such as its carbon foot print and waste management pay a
huge role in establishing its brand image relative it its customers and other stake holders.
The positive aspect of environmental factors can enable the company to develop a
business strategy that is environmentally-friendly in the terms of their products and
service (Tazzara, 2021). This will allow the company fulfil its environmental obligation
and gain reputation in the market. On the contrary if the company does not focus on the
environment concerns relative to their business operation it can have a negative impact
on their business operations as well as their business strategy. Moreover, it would lead to
loss in customer base and market share.
Legal Factor: this factor pays emphasis to the legal aspect of a business relative to its
operations such as consumer law and employment legislation. In context to HSBC, the legal
factors of the external environment help the organisation to protect its intellectual property along
with patents. Moreover, the company is able to develop business strategies that take into
consideration employment law along with health and safety laws which assit them to keep their
employees safe and secure. Although these legal factors can also have a negative impact on the
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business operations of the organisation as well as on its business strategy it can encounter legal
issues relative to customers protection as well as anti-trust laws which can reduced the
performance as well as the growth of the organisation.
Different strategic planning techniques
 Benchmarking: This allows the better comparing of the metrics with a competitors or
more industry through company is operating. In perspective of this, HSBC bank will be
able to acknowledge about their market position by comparing their performance with
market leaders.
 Business analysis: By evaluating the business and its activities in an appropriate way,
HSBC will acknowledge their strengths or weaknesses on the basis of their performance
and market situation in competitive platform. So that, only right and strategic decisions
will be taken by HSBC bank to attain expected outcomes
Stakeholder Matrix: This matrix defines high and low power and interest factors between
staleholder of specific company perspective. In the following there is explanation of the
Stakeholder Matrix in the perspective of HSBC bank are
INTEREST LEVEL
POWER LEVEL
HIGH LOW
HIGH Employees, Shareholders Government
LOW Customers Suppliers
As mentioned above, there are two appropriate and effective variables necessary to be better
understood in the context of measuring the stakeholders. The first variable is related to certain
power and interest, which reflect the affected could stakeholder decisions.The main stakeholder
mentioned above below an analysis of some of prominent and their impact on an organization. Employees: These are the individuals most concerned within stakeholders of company
who contribute their efficiency for generating business for organisation. In the context of
HSBC bank, the employees have high power of interest in which employees would get
better satisfied within their personal objectives. Shareholder: In the perspective of shareholders, they also having high power and high
interest within the company. Because as they have invested their capital (Alegario and et.
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al., 2021). For instance, economic sudden downfall is unstable in UK through HSBC
bank interest rate also fluctuates on the basis of economic instability situations. In order
to deal with this, the company needs to assess the function effectively which they can
help such as complex and provide effective returns to individuals.
 Customers: They are the major key players for every business as they generate business.
Similarly for HSBC bank, their customer plays an important role to enhance better
business opportunities, with that they have high interest but with low power.
Evaluation:
As per above Macro environment using Pestle and Stakeholder Matrix is used to for
HSBC bank. In pestle framework is been used to evaluate opportunities and challenges where
Political and economical can be negative aspect as the rules and regulation and inflation generate
to enhance more complexity in competitive market place (Oguji and Owusu, 2021). Further
more, by using stakeholder analysis matrix is describe employees, shareholder are the most
important stakeholders for HSBC bank effectively
Task 2.
Discussing the strategic capabilities of the organisation along with utilizing various frameworks
to evaluate internal environment of the business.
Strategic capabilities and their key components:
Strategic capabilities is described as procedure in which different sort of strategies are
shaped up into company action perspective with high metrics attained. In this, strategic
capabilities have six main components: strategic purpose, key goals, action planning, tools for
analysis, values, and vision. These components benefits the company in using their implemented
strategy in an advantageous manner.
Resources based view strategy:
It is referred as a managerial framework which is used by business organisation to
determine those strategic resources which a company can exploit to gain sustainability and
competitive advantage. In context with this strategy, there are two kinds of resources that are
intangible and tangible resources.
McKinsey's 7S model
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According to this framework is a tools which is help to analysing with organisational
design with better identifying of several components. These are the components are needed to be
aligned in between and properly, only then a business is enhance such as HSBC bank will be
able to attain goals and objectives. Some of the components are mentioned below:
 Strategy: The primary strategy of the organisation of HSBC is to use product
differentiation relative it their competitors. The business strategy of the organisation is
focused upon providing various products and service to customers at in order to enhance
their experience and increase their satisfaction levels (Pizzi , Rosati and Venturelli.,
2021).
 Structure: the organisation has a well established and systemic heiracry within the
department which allows the management to have effective communication with all
members of the organisation. This allows the business have have enhanced productivity
and high employee performance levels.
 System: The business strategy of the organisation has a systematic structure that allows
the management to direct the employees the correct direct to fulfil their task and duties in
an effective and efficient manner. The optimal system allows the organisation to have
optimal productive in is business operations.
 Skills: the organisation has a highly skilled work force comprising of experienced as well
as cable individuals. These capable employees posses good analytical skills as well as
communication, time management skills. This allows the business to gain competitive
advantage in the market.
 Style: the company and its management are focused on utilizing democratic leadership
style as it allows them to build positive relations with employees improving their
motivation as well as promoting optimal communication channels.
 Staff: The organisation has highly skilled work force which allows the organisation to be
effective in its business operations and introduce productivity in is functions. This allows
the organisation to improve its business performance and attain growth.
Shared values: The company pays emphasisn on the value of providing its customers with
optimal products and service along with helping people to fulfil their hopes and realizing their
ambitions through economic growth (Szymkowiak, Gaczek and Kulawik., 2021).
VRIO Framework:
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Through VRIO analysis is defines about the value, rarity, imitability and organisation. It
is a strategical analytical tools which is assorted through companies for better identify with
available resources with internal capabilities . There are important VRIO factors are driven in
perspective of HSBC bank:
Basic Valuable Rare Imitable Organised
Human resource
Management
Yes Yes Yes Yes
Technology
resources
Yes Yes No No
Band Image Yes Yes No Yes
Market position Yes No No No
 Valuable: The organisation has a valuable human resource management which provide
them with highly-skilled employees along with technological resources. They have a
respected brand image in the market enabling them to have a strong market positioning
which gives them a competitive advantage.
 Rareness: The company has effective brand image which is rare in the market along
with skilled workforce as well as technological resources enabling them to have
competitive advantage in the market due to theses resources being rare (Kibler, Mandl
and Salmivaara., 2021).
 Imitable: The company has imitable resource of their human resource management
which can reduced their market competitiveness. Although the company has unique
technological resource along with strong market position due to their strong brand image.
Organisation: The organisation has a organized system relative to its human resouerce
management and its brand image. This allows the company to effectively gain competitive
advantage in the market when compared to their competition.
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P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.
It is defined as a framework that is used to identify and analyse important competitive
elements in the market. In addition to this, it also helps an organisation for better understanding
the potential threats and gaining perceptive on current competition and opportunities. It involves
five competitive forces which is mentioned below in context to HSBC:
Threat of new entrants: A profitable market attracts new potential rivals that impact on
the profitability of existing organisations. Unless, there are strong and lasting barriers to entry
such as patents, economies of scale, capital requirement, leading to profitability being declined to
a competitive rate (Van Couvering., 2021). In relation to HSBC, threat of new entrants is low due
to economies of scale as it is complex to attain within the banking sector. This help respective
organisation to gain growth and attain competitive advantage at marketplace.
Threat of substitute: The existence of close substitute products in the market, increase the
chances of customers switching to an alternative brand in response to alteration in price. With
reference to HSBC, the level of substitution is high due to the market being highly competitive
offering similar products and services to customers relative to the company. This can negatively
impact the business operation of the organisation is new innovative products and services are not
introduced in the market (Fernandes and Viana, 2021).
Competitive rivals: A critical aspect of this force focuses on the existence of the well-
established rivals being the main driving force by offering differentiated products and services,
resulting in decline in market attractiveness and reducing profitability. In relation to HSBC, this
threat is high due the other banking organisations offering similar products and service to
customers relative to the organisation. This offering of substitute products and service creates a
high level of competition for the organisation which is inevitable and can only be avoided with
effective business strategies.
Bargaining power of buyers: The understanding of how easy it is for the consumer to
drag the prices down based on number of buyers in the market, cost to the buyer of switching of
switching from one supplier to another. With reference to HSBC, it is analysed that this threat is
high as there is a high level of competition in the current market I the banking industry which
allows the customers to have a wider range of organisation to select from. In order to negate this
threat the organisation must introduce new offers and products and service to attract customers.
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Bargaining power of suppliers: The understanding of how easy it is for the supplier to
thrust up the prices based on uniqueness of their products and services, relative size and strength
of the supplier, and cost of switching from one supplier to the other. In context to HSBC, it is
analysed that bargaining power of suppliers is low for some of its product such as supplier of
bank capital. In addition to this, it is determined that there are various suppliers of credit card,
computer equipment’s which shows that this threat is low for the organisation.
Evaluation
Based on above porter five forces analysed for HSBC Bank where out of five threat of
substitute could be high rest are quite stable enough to deal in competitive market. The reason of
substitution of threat is high because there are many other banking services who are offered
similar kind of bank related facilities. Through this, HSBC need to enhance their service into
productive manner which can easily attract the customers towards their banking services within
more effectively manner.
Task 4.
P4. Illustrate to applying different range of theories and concept which devise to implies strategic
planning for given organisation.
There are different range of strategies and theories of making better strategic planning is
implement within the perspective of HSBC banking services:
Porter Generic Strategies:
According to this strategy of porter benefits them to effective identifying about the way
through competitive advantages get attain within the marketplace. Through in general there are
three kind of strategies which means differentiation, cost leadership, and focus. In perspective of
HSBC bank are mentioned below:
 Cost leadership: With the help of this better approach, price sensitive customers can be
easily targeted through business organisation. In this strategy of HSBC, they can offer
their product in less prices (Ferri, 2021). Also, company can also provide offer and
discounts to their loyal customer due to which it enhances more recommend offering of
banking services with their friends and family also. They help the company in increasing
of their sales due to which high profit would get easily earned.
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 Differentiation: In this strategy, a company offer a new range of innovative product and
services where the customer that they can be differentiate from other companies dealing
in similar sector. Within the strategy, HSBC bank which can offer innovative and new
product to their customer so that can be enhanced in systematic manner.
 Focus: This strategy which involves two aspect that means cost focus and differentiation
focus. In case of cost focus, HSBC would determines their those banking service and
product provide to customer in less price where high number of customer get attracted to
buy them. While, in differentiation company would be needful to offer modern product
so that people can buy without being price sensitive.
From the above strategy it is recommended that the management of HSBC should focus
upon cost leadership strategy as it will allow the organisation to attract a larger customer base in
an effective and efficient manner. In addition to this the organisation will be able to capture a
larger market share and improve the sustainability of the business. This will allow the
organisation to gain competitive advantage in the market resulting in growth as well as
profitability.
Application of Ansoff's matrix:
This model provides assistance in identification of opportunities to grow and expand by
developing new products and services or assistance to enter a new market. By displaying
alternative combinations for new market relative to products and services. In context to HSBC,
the model provides help to the company during development of a market strategy when
introducing new products or services within a untapped or already established market. Following
are the strategies for HSBC are given below:
Market penetration: This strategy states that companies should sell their existing products in
already established market as the company is aware of its current customer base and has
established channels to penetrate the market. In context to HSBC, they can penetrate the market
through its existing services by customizing them according to customers and promote lucrative
offers which will attract new customer base.
Product development: This strategy provides insight on development of a new products or
services for companies in their established market. In context to HSBC, they can provide
banking and finance services in the existing market at various rates to create a entirely new
product that appeals to a larger customer base.
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Market development: This strategy present companies with assistance to introduce existing
products and services in a entirely new market. It is implemented in order to capture untapped
market share by utilizing established products and services. In context to HSBC, they can enter a
market by venturing into new demographics with their well established products and services,
along with aggressive pricing to attract new customer base in the region.
Diversification: This strategy encourages companies to venture into untapped market with a new
line of products and services. Its provides insight in understanding the knowledge and skills
required to enter the new market and while developing new product and services. In context to
HSBC, they can attain diversification by entering a new market and understanding the customers
in the region to develop customer focused product and services making them unique compared to
their competition.
Recommendation
The company should focus on diversification to enter untapped market share as they have well
established products and services that can be uniquely marketed in a new market environment.
This will increase the profitability and market expansion of the organisation allowing them to
gain competitive advantage in the market and gain the ability to develop effective strategic to
optimize their business operations.
Strategic Planning for HSBC bank
Strategic planning determine to help the organisation to identify about the set of
activities, priories, focus, resources, operations etc. It ensures that the people of organisation
must contribute their efforts to better attain their company common goals. As HSBC is planning
to introduce their Online Banking application for that some strategic tools has been used in
following:
Vision: To provide more effective banking services internationally through innovative manner.
Mission: The only mission is HSBC wants to provide their banking service to more customers
wealth increased.
Objectives: The main aim of HSBC Bank to introduce their Online Banking Application is to
increase customer efficiency flexible and also enhance more convenient to produce better
banking work. Apart from this, they also try to implies this application to increase the wealth of
customers.
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Strategy: The strategy can be followed about HSBC bank is Product Development as they are
already with existing banking succeed in existing market. Through this they utilise their core
competencies. This would easy for them to target customers by getting friendly goods.
Tactics: It is a short term efforts which are made by the company to better accomplish their
objectives effectively. As the tactics which follows by the HSBC bank is deal with directly to the
customer instead through dealer ship, establishing own services and charging situation. As the
company is bringing new Online Application of banking services through effective manner.
Swot Analysis of HSBC:
Strength: The company has various strengths that help the organisation to gain competitive
advantage in the market. The organisation has a strong brand image in the market which allows
them to gain a larger market share relative to their competitors. Moreover, the organisation has
various operations such as commercial banking and investment banking. In addition to this the
organisation has a highly skilled work force that enables them to have high performance in its
operations.
Weakness: The primary weakness of the organisation is its ability to compete with the global
market competitors due to less emphasis on innovating its products and services along with being
weak in the retail banking sector relative to its current competitors.
Opportunity: The company has a potential opportunity to enter the market of Turkey in order to
expand its business operation and attain market share. Moreover, the organisation can focus on
expanding its portfolio of products and services in order to attract more customers and offer low
interest rates as a tool to gain new customers.
Threat: The company faces constant threat form the dynamic government rules and regulations
along with financial cries such as recession. It also has a threat of global competition which can
negatively impact is overall business operations.
Evaluation: It is concerned about with collecting the information and the follows up through
how well the plan is going on and what are hurdles that create affects their performances. Thus,
it develops the marketing team of HSBC will analyse current market trends on that basis they
would perform and work as per marketing plan required within effective manner.
CONCLUSION
From above report, it is concluded about adopting appropriate with better business strategies, it
is not possible for the business through organisation to accomplish desired success and
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outcomes. By using different managerial tools models like Pestle, McKinsey 7s model, VRIO
analysis etc. all these models helped to measured external and internal challenges and
opportunities for specific business perspective. Through Porter five forces is to mapped about
industry risk or challenges can faces in competitive market place and also provide appropriate
solution to gain more positive outcomes.
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