Report: HSBC's SWOT Analysis and Global Business Environment Factors

This report provides a comprehensive analysis of HSBC, a UK-based multinational bank, within the global business environment. It begins with an introduction to the global business environment, defining its key external factors. The main body of the report includes a detailed SWOT analysis of HSBC, evaluating its strengths, weaknesses, opportunities, and threats. It further examines the impact of key drivers, specifically focusing on marketing and finance, and how they are influenced by the external and internal factors identified in the SWOT analysis. The report concludes by summarizing the key findings and implications of the analysis, emphasizing the importance of understanding the global environment for strategic decision-making. The report also references relevant sources to support its claims and analysis.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluating the SWOT analysis of company................................................................................1
Impact of key divers on functional areas.....................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global Business environment refers to environment in different countries with external
factors that influence by global forces that include market, economic, technological force and
legal forces etc (Barac and et.al., 2016). In this report, HSBC company is chosen which is UK
based British multinational bank that is one of world's largest banking and financial service
organisation. In this report SWOT analysis of company and identification of key forces from
external and internal environment. Apart from that it is examine the ways in which two key
drivers that affect the functional areas such as Marketing and finance is studied.
MAIN BODY
Evaluating the SWOT analysis of company
SWOT analysis is concern with knowing the company's strength, weakness, opportunity
and threats that helps organisation develop awareness of all key factors in formulating decision
for company (Brenner, 2018). HSBC is operating in majority in European countries where there
business operation is affected by many ways. So it is to examine the SWOT analysis of HSBC
company to determine the key forces that influence the business in following way-
Strength Weakness
 Bank is recognised in world and
operates in 66 countries. It deals with
global banking and market, global
private banking.
 It is leading bank by market
capitalisation and enjoy top position in
market and maintaining good
reputation among all banking
institution.
 Due to association with small business
sector the risk was become higher of
profit shortfall.
 As company is involved in sub prime
market in US will make it more
damaged because financial scandal
(Tallman, Luo and Buckley, 2018). IT
shows economical instability in some
countries that lead to impact their
growth progress.
Opportunity Threat
 It is has strong opportunity to gain
market share and that help it to acquire
 There are some threat related to
financial losses, credit issues and fear
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assets to strengthen the bank. As it
follow legal factors that build trust in
costumer.
 It is at growing position that will reduce
the impact of financial issues and it
provide the reliability and safe place to
invest (Chasdi, 2017). Through
increasing the profit maximisation and
due to its technological factor is strong
that will avoid the chances of fraud or
hacking.
of losses might lead to reduce the
interest of costumer.
 Due to ongoing probes and scandals
may reduce the confidence in company
and global credit crunches leads to
challenges in costumer base.
 Rapid changes in laws and regulation
ion other countries will adversely
impact the business and highly affected
by economical and legal factors. Due to
changes in different policies and
exchange rate in country will directly
impact their survival process.
In this analysis of company it is determined that there are some external factors that
impact the functioning of their operations such as Economical factors and legal factors are two
major factor for company. In Economical factors, interest rate, demand and supply of money
affect the HSBC growth and greatly influence by in their changes. In legal factors, all legislative
practices like laws, rules and regulation within the country impact the internal process of
company as they has to make changes in their policies according to them.
Impact of key divers on functional areas
In the determining the operations impact they need to analysis the some factors that
impact their working environment in organisation (Damarwulan and Farida, 2018). Some key
functional areas such as Marketing and Finance of HSBC is evaluated in following way-
 Marketing- Marketing is key way to promote the brand and spread the awareness about
company and influence the costumer to buy the goods and services. In HSBC company,
this play necessary role to present itself in market through using extensive marketing
strategies and tactics (Shageeva and et.al., 2017). In order to determine its key sources
that pulls the company further due to its brand recognition in market and well reputed
name in market. This helps the organisation to grow and increase its brand awareness and
trust among costumer from across the world. It will facilitates them in expansion and
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develop its proper functioning and reduces the problem in order to achieve their goals. In
marketing, it helps the company to know more about costumer from different countries in
which they are operating and maintaining the relations with them to enhance their growth
in country.
 Finance- It concern with providing the proper supply of money in company as due to this
an organisation is able to function and perform various activities (Kokodey, Gnezdova
and Lomachenko, 2018). There some factors in external factor that impact the profit of
HSBC, it is important to determined the ways through which it influence the profitability
situation such as due increase in instability in various countries like US and other nation
will highly impact negatively on company (RAO, 2020). Due to irregularity and some
scandal and scam it directly influence as they are dealing with money supply and finances
in country. It is essential for company to consider some factors that impact the finance
decision such as framing its interest rate, exchange rate and policies before implementing
into the organisation.
CONCLUSION
From the above report it is concluded that Global business environment refers to external
factors that influence major decision of company. These global forces include global
competition, global labour market, legal and political forces that highly affect the societal
environment of company. In this report it has been discussed about SWOT analysis of
organisation and the way in which key factors from external and internal environment is clearly
identified. Apart from that it is evaluated the two functional areas like Marketing and finance
were being influenced by the key forces of SWOT analysis has been studied in this report.
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REFERENCES
Books and Journal
Barac, K. and et.al., 2016. The capability and competency requirements of auditors in today's
complex global business environment.
Brenner, B., 2018. Transformative sustainable business models in the light of the digital
imperative—A global business economics perspective. Sustainability. 10(12). p.4428.
Chasdi, R. J., 2017. Corporate Security Crossroads: Responding To Terrorism, Cyberthreats,
and Other Hazards in the Global Business Environment. ABC-CLIO.
Damarwulan, L. M. and Farida, N., 2018. The Role of Quality of Entrepreneurial Networking
and Responsiveness to Global Business Environment in improving the Marketing
Performance of Indonesian Exporting SMEs. Quality-Access to Success. 19(165).
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.
RAO, S. P., 2020. International business environment. HIMALAYA.
Shageeva, F. T. and et.al., 2017, September. Training the achievement-oriented engineers for the
global business environment. In International Conference on Interactive Collaborative
Learning (pp. 343-348). Springer, Cham.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.
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