HSBC's Business Expansion in China: A Strategic Plan

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MANAGING A SUCCESSFUL
BUSINESS PROJECT
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Table of Contents
INTRODUCTION.........................................................................................................................................3
L01.................................................................................................................................................................4
P2...............................................................................................................................................................6
P3 AND M1.............................................................................................................................................13
LO2..........................................................................................................................................................15
P4.............................................................................................................................................................15
M2............................................................................................................................................................19
L03...............................................................................................................................................................20
P5 AND M3.............................................................................................................................................20
P6 AND M3.............................................................................................................................................28
P7 AND M4.............................................................................................................................................29
CONCLUSION............................................................................................................................................31
REFERENCES............................................................................................................................................32
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INTRODUCTION
Globalization can be defined as the phenomena which offer the exchange of goods and services
across the globe and the national and regional boundaries do not act as an obstacle in performing
any commercial activity. Globalization offers enormous opportunities to grow the business in
monetarily as well as increase the global presence in order to expand the business in other
countries also. It offers a variety of benefits to an organization as; easy availability of labor and
capital, and easy access to the cutting edge technologies. Globalization is further supported by
international forums like; WTO, IMF, and WB (Eriksen, 2018).
This research report is prepared to devise a strategic plan for expanding business operations of a
chosen multinational organization in a host country. This report will be based on various facts
and findings. It will assess qualitatively as well as quantitatively the business plan devised by an
organization. It will evaluate the business plan based on time, cost, objectives of a business, etc.
and it will also evaluate the impact of the project on the host country socially, economically and
on the environment. The project will be conducted in modules and each module will be analyzed
by the expert committee constituted by an organization and at the end, the final project after keen
observation will be assessed for its suitability and sustainability to the organization, presented to
all stakeholders for further improvement if required
COMPANY BACKGROUND
HSBC is a UK based corporate, commercial, individual banking service provider. It is one of the
leading banking and financial service providers. It has a strong global presence and
diversification. HSBC gives importance to use the knowledge of local people and augment that
knowledge in its business model and that is the reason why it is known as people's bank. HSBC
is one of the leading organizations by its revenue and operations. It provides business support to
individuals and corporates by efficient financial services and wealth management (HSBC logo,
2019).
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L01
PROJECT
The project can be defined as the set of short-term business operations that are carried out by an
individual or group with cooperation to achieve a particular goal. For instance, a project is
undertaken for crafting some products or services in a profitable manner.
PROJECT MANAGEMENT
Project management can be explained as the systematic and consolidated efforts by an individual
or collaboration of a team in order solve the existing problem, add some value to an existing
product or create novel product or service to cater particular objective. It is a very crucial phase
of the product development life-cycle.
PROJECT CHARACTERISTICS:
Project characteristics can be defined as the features and attributes of business; it consists of
judicious management of the available resources in order to attain the set goal. The budget
allocated and time frame set has to manage efficiently for the successful completion of
commenced project Eriksen, 2018).
AIMS AND OBJECTIVES OF PROJECT
The aim of this research is to identify and analyze the impact of business expansion in a host
country, here, is China. It will comprise of: assessing the impact of the project on the society of
China, its contribution in controlling inflation and creating jobs. And it will also include the
environmental impact assessment (Research methodology, 2019).
Objectives of the research project are as follows:
 To evaluate the business functions of HSBC in different countries and specifically in
China.
 To figure out the possible positive and negative bearing of the undertaking on the host
country China.
 To recognize the effect of business procedures on social, environmental and economic
dynamics of China.
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Hence, with the fulfillment of the above-stated objectives will help the organization to perform
its business functions in host country China efficiently. It will also help in the creation of job
opportunities in China.
POSITIVE AND NEGATIVE IMPACT OF BUSINESS OPERATIONS OF HSBC ON
CHINA
The positive impact of HSBC on China will be; the creation of numerous job opportunities and
helping in inflation control. With the help of its commercial banking services, it will contribute
positively to various sectors of the economy. Especially to the manufacturing sector; and it is the
largest sector of the economy resulted in the creation of jobs and growth in the other sectors of
the economy also. HSBC's innovative investments for China help it to achieve globalization 4.0
in China, and in controlling the market volatility (HSBC logo, 2019).
The possible negative impact of HSBC's functioning on China is: it may give rise to trade
conflicts among the global leaders. Its network and cyber services of HSBC have been intruded
by the hackers previously and may also be attacked in the coming future as this put the private
and valuable data of the Chinese population at risk (Fernando et al.,2018).
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P2
Project management can be explained as the systematic and consolidated efforts by an individual
or collaboration of a team in order solve the existing problem, add some value to an existing
product or create novel product or service to cater particular objective. And project manager is
given a responsibility to plan, advance and implement the project on an accepted timeframe
Eriksen, 2018).
PROJECT TITLE-“Analysis of the influence of business activities of HSBC on the business
situation of China”
Deliverables: this project will deliver the desired outcomes and pertinent facts and figures to
attain the set aims and objectives. This report will deliver effective scrutiny of the impact on the
economic, social and environmental structure in China (Research methodology, 2019).
PROJECT SCOPE
 The research assignment undertaken is investigative and neutral in nature.
 Different project managers will lead the research plan and deliver the possible effects on
the project on the social and economic situation of China.
 Data and statistics collected in this research are of two categories; the primary data and
secondary data. And the bifurcation conducted as per some proven method of it
(Fernando et al., 2018).
 Primary research produces the data of quantitative nature; collected with the help of
questionnaires, surveys, and interviews.
 The secondary research produces the data of qualitative nature gather by examining
various works of literature and resources.
 The outcomes of both these research analysis will help in delivering the desired outcomes
for the organization and the host country (Peck et al., 2018).
INCLUDED SCOPE: this research project has taken into consideration the environmental,
social and environmental effects of an undertaking on the environment of host country China.
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EXCLUDED SCOPE this project has excluded the impact of political and technological factors
on the Chinese economy as well as it has not gathered the information about the possible impact
on the investments from the foreign countries (Peck et al., 2018).
OBJECTIVES
The objectives of the research undertaken are; finding the objective of the project based on the
data available. The economic objective of this undertaking is to create job opportunities for the
Chinese workforce by 2021 along with contributing to the growth of the manufacturing sector.
And the social objective is to offer an inclusive work environment for the local population as
well as trying to bridge the gaps in payment and offering an equitable opportunity for growth.
The environmental objective of HSBC's this particular project is to reduce environmental
damage and carbon footprint. And also take some compensatory measures for the damage done
(HSBC logo, 2019).
ORGANIZATIONAL STRUCTURE: The organizational structure chosen to prepare a
systematic plan for the undertaking is; matrix structure. In which the details of the project are
arranged in the form of a table/matrix.
ACTIVITIES AND COST INVOLVED
ACTIVITIES COST INVOLVED
Project apparatus £150
Research and development £200
Project management and implementation £100
Technical expertise £200
miscellaneous £500
Total project cost £1350
COST AND RESOURCE REQUIRED
RESOURCE SPECIFICATION BUDGET COST
Experienced leadership Leaders to deal with
immediate and long-term
£ 1800
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challenges.
Management team Department managers and
project managers to manage
business operations.
£ 1300
Human resource To manage the employees and
finances etc.
£ 1200
Information technologies The installation of computers
and other supporting devices.
£ 1400
Network devices Installation of LAN and other
network devices and a
centralized data server.
£ 1000
Other resources Supporting staff, stationery,
and other management cost.
£ 1000
TASKS AND
ACTIVITIES
ACTION IN USE RESOURCE
REQUIRED
ESSENTIAL COST
ACTIVITY 1 Creation of project
mechanism
Project lead and plan
manager and other
employees.
£ 1000
ACTIVITY 2 Setting goals and
purposes
Project lead and plan
manager and other
team members
£2200
ACTIVITY 3 Choosing an
appropriate method
for data collection
Project lead and plan
management team
members
£1400
ACTIVITY 4 Dividing the project
into various modules
Project lead and plan
manager
£1300
ACTIVITY 5 Crafting the
questionnaire for
primary data and
Computer and
network devices
£ 2000
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observation for
secondary data
ACTIVITY 6 Evaluation of data
collected by an
effective technique
Project lead and
project management
team members
£2300
ACTIVITY 7 Deriving the
conclusion from the
examination of the
report.
Measurement
apparatus and data
base management
system
£2500
PROJECT BOUNDARIES: this particular research undertaken will be limited to the socio-
cultural and economic and environmental impact of a given project on the functioning of the
Chinese environment and will affect the society and other aspects of it. This project is not
explaining any impact of technological and political advancement in the host country (Kapucu et
al., 2018).
JUSTIFICATION: This analysis is helpful in understanding the influence of various factors on
the project development as well as the impact of project preparation and execution on the host
country. This analysis will be helpful in providing critical information to the HSBC regarding
project development and the strategy to be used for its successful implementation (Fernando et
al., 2018).
PROJECT RESTRAINTS: the restraints that project faces primarily are time and cost and
other than these two taking the authority’s permission to undertake the research and gathering the
data and useful information are also the challenging task.
RESOURCES: the resources required for the successful planning and execution of the project is
the experienced leadership, skillful employees and other devices for financial transaction and
network devices. For instance, for performing the financial transaction HSBC needs a strong
centralized data server and secured internet connection (University of Cumbria, 2015).
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PROJECT COST AND BUDGET
ITEMS ESTIMATED COST ACTUAL COST
Network devices 100 70
Labor cost 300 230
Respondent tokens 200 190
Administrative charges 250 210
Sustenance costs 50 30
Database replicas 20 10
Total cost incurred £920 £740
The objective of this project is to examine the impact of external and internal factors on the
operations of the business. And also assess the possible impact of business operations of HSBC
on the Chinese situation. This project also tries to scrutinize the potential impact on China in the
long-term with the help of a rational and realistic approach of analysis and implementation. The
negative impact can also be reduced substantially by using the appropriate method. The
provisioned amount and time should also be used effectively in order to complete the project on
stipulated time (Kapucu et al., 2018).
SUCCESS CRITERIA: The success of any project depends on various factors. And the
effective and timely formation of procedures and methods and intelligent task division and
constant integration of changes in case of failure in some aspects can lead to successful
accomplishment. Timely realization and completion under the estimated cost are also very
important to meet the expectation of all Stakeholders (University of Cumbria, 2015).
TIME: The plan undertaken is to be executed and implemented in the stipulated time in order to
avoid further expenses and other negative impacts on the functioning of HSBC’s project
development division’s reputation.
COST: The plan undertaken is to be executed and implemented in the stipulated cost and in
order to avoid further expenses the management of financial resources has to be performed
efficiently (Valencia et al.,2018).
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QUALITY: the quality of the project reflects the effectiveness of the business operations of any
organization. And in order to keep that reputation, HSBC must ensure meeting all relevant
international standards (Peck et al., 2018).
QUALITY CONTROL: The quality of a project can be controlled by taking preventive
measures. And in case of low and poor quality in some areas, the quality can also be improved
by a continuous appraisal of the project according to the need of host country China (Valencia et
al., 2018).
COST CONTROL: The effective cost-structure prepared with the help of an effective algorithm
or tool can keep the cost under control. And continuous appraisal of cost after the completion of
any module will help in finding the areas where cost can be cut or increased (Kapucu et al.,
2018).
RISK ANALYSIS: it is also a very important part of any project development cycle. The risk
has to be analyzed in detail with the aim to devise a potential method to mitigate it. HSBC being
a banking and financial service provider has run the risk of financial data theft and cybersecurity.
So the project report must include the methods to conquer those (Sekarwinahyu et al., 2018).
COMMUNICATION MATRIX
What To whom How When
Agenda notifications Employees and
designers
e-mail Monthly
Project plan and
progress report
executive Meeting Weekly
Appraisal report supervisor meeting weekly
Outcomes and
suggestions
stakeholders letter Completion of the
project
This plan of communication has to be discussed effectively in a very transparent manner with all
stakeholders. And immediate and temporary changes should be discussed openly with the project
management team.
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The uncertain risk involved in the project has to be communicated properly with the experts and
supervisors and long-term challenges can be dealt with efficiently by taking advice from senior
leadership (Sekarwinahyu et al., 2018).
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