Contemporary Developments in Business and Management at HSBC Bank

This report provides an in-depth analysis of contemporary developments in business and management, focusing on HSBC Bank. The report explores the influence of external factors, such as legal, political, social, technological, economic, and environmental factors (PESTLE analysis), on the bank's operations. It examines the relevance of Corporate Social Responsibility (CSR) and ethics within HSBC, analyzing their impact on decision-making processes and policies. The report also assesses the effectiveness of the organization's responses to various challenges and suggests areas for improvement, including transparency, fair trade practices, and employee relations. Overall, the report offers a comprehensive overview of HSBC's business strategies and their alignment with contemporary business practices, highlighting key aspects of the bank's ethical considerations and operational effectiveness within the financial sector.

CONTEMPORARY DEVELOPMENTS IN
BUSINESS AND MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
(1) External factor influence on business organisation ..............................................................1
TASK 2............................................................................................................................................4
(1) Relevance of CSR and Ethics of HSBC Bank and its influences on decision making and
policies........................................................................................................................................4
(2) Effectiveness of the organisation's response.........................................................................7
(3) Suggested areas for improvements .......................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.........................................................................................................................................................1

EXECUTIVE SUMMARY
The following assignment includes the different terms which are beneficial for making
expansion of business entity. Development in business and management is very important part of
its growth and success. This report is based on HSBC Bank which is a insurance & financial
organisation in all over the world. They give different facilities to their customers in an essential
way as per their requirements. This study consists about the external analysis of industry and
other factors which are effects on decision making process.
INTRODUCTION
Contemporary development defines as a growth and success of the business organisation
which take better place in all over the world. It is very important and essential for promoting and
encouraging an enterprise in order to achieve higher profit and revenue. In order to promote their
services, business entity use advanced technology which assist them in attaining long term and
desire objectives and goals in an effective manner (Anderson and McGreal, 2012).
Contemporary development is construct with the support of two aspect in which contemporary
define as the recent time and the economic growth.
This report is based on financial and insurance industry which includes HSBC Bank. This
company deals in different kinds of financial aspects and services to their customers. There are
different number of factors and sources which are highly influence the business operations
externally which shown in this project. This report also shown advanced technology which is
used by the organisation for producing effective services or facilities to their clients in regards to
attain their satisfaction. Related to this, contemporary mainly made by few words such as present
time and growth. So it is important for the current growth and success of company at competitive
marketplace.
TASK 1
(1) External factor influence on business organisation
HSBC Bank is the largest financial and banking services enterprise in all over the world.
It is international network bank which comprises approx 7500 institution in over 80 territories
and countries in Americas, Europe, Middle Africa and East, Asia-Pacific Region. It was founded
in 1865 by Jonathan Symonds at London and United Kingdom (Bergek and et. al., 2013). In the
company, there are 85000 employees are working with each other with the motive of achieving
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higher growth and success of them effectively. They provides different products and financial
services to their customers in an effective and efficient manner (Economic Factors, 2016). It is a
multinational and popular bank which give various facilities and take better judgement against
the world influences. So it is very essential to analysis company capacity in order to formulate
entire strategies and schemes in accurate way.
Legal and political Influence:
These factors are part of the PESTLE Analysis which is very essential for the business
entity to follow legislation and regulation of government (Bjorklund, 2013). Legal and political
aspects are helps the company in order to do their all activities and operations in effective way.
With the use of this factor, organisation can expand their business function at different level. So
that entire rules and laws are connected with the pricing strategy of product, accessibility of
marketplace, price of manufacturing process. It will also consider cost of labour and raw
material which is important for the company to set their best price as per the government rules.
In this activity, company manager also plays vital role which include financial aspects such as
banking and labour laws. Apart from this, tools of marketing also related with this which
includes protection of clients, advertising and development of advanced technology.
Environment of HSBC Bank is largely impacts the country in which business execute their
activities and operational effectively. UK has their open market, so in this power and control of
the government is low as comparison to other country. In order to attract large number of the
clients company set their financial services and product price as per the government legislation.
So those factors are important for the company and its customers because that increase
performance level and give better advantages to them in systematic manner. Political stability in
UK that more effective in order to expand business function in an effective way. With the assist
of these factor, industry can easily acquire better development as well as compete their
challengers at marketplace (Boccardi and et. al., 2014). HSBC bank is one of the main example
because they criticise to enhance their interest rate. There are different types which are influence
of the business organisation are determine under this:
Types Influence on organisations
Businesses against the international product It is decrease the sales volume of bank
Criminal and violence activities It will arising misunderstanding of the activity
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of production.
New strategies linked with the advantage of
labour
Security and operating cost were maximised
Wars Destruction in the property
Inflation rate Higher operating cost
Maximised in taxation It is minimum after profit and revenue tax
Social Cultural impacts: In this. Company face different issues related to criminal and change
money which laundering several problems that bank is dealing with in current year. In 2012.
government of US held HSBC responsible for deplorable money that accounting to $2.6 billion
as well as asked the business in order to contribute their considerable resources and time to
control large number of potentials issues in crime transaction (Christensen and et. al., 2011).
Mentioned bank is also gearing related to helping a move to a minimum carbon economy. Due to
this, better output in this is giving climate financing which covers equity investment, insurance,
debt and environmental markets. This factor highly effects on the business services and products
because in this living standard of the person will maximised that is impact on operational and
function of company in direct way. This factor help the organisation in order to expand their
business operations and activities in international and national level.
Technological: As a term of minimum carbon technology which takes hold in order to assist a
low economy, HSBC is a multinational bank that invest in clean tech and climate research in
beginning day. With the use of advanced technology company easily achieve long term growth
and success. But this factor have negative effects on institution because, different persons do not
known about innovative technology so that they can do their work in easily. It is identify as an
essential term for the business entity in regards to modify their technology regarding to market
condition (Collins and et. al., 2014). So HSBC, research and development division have to raise
their modern technology as well as introduce innovative innovation for the target place.
Economical: With the use of this factor, company describe their bank interest in term capital
management. One of the main objectives of this section is to measure the future demand and
supply of the real capital such as various raw material which is needed for manufacturing. For
the certification, financial sector needs large number of papers, due to this, they can reduce
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trees , so they can acquire proper papers. This factor has negative impacts on the business
situation such as less rainfall rate as well as bringing threat to HSBC bank. In this they also
includes climate variation and global impacts on company supply chain process which acquire
hampers their aggravates and longevity water deficiency through period of time.
Environmental: This factors refers that natural and unforeseen calamities. HSBC bank
recognises the actual trends in governments demanding and climate change, in this enterprise
decrease their carbon economy and food prints (Duffield, 2010). This factor is not controllable
from the business organisation as well as not capable to fight or reduce financial problems in an
effective manner.
TASK 2
(1) Relevance of CSR and Ethics of HSBC Bank and its influences on decision making and
policies
HSBC Bank is a multinational and popular industry in financial sector which provides
different kinds of services and products to their clients in effective manner. It was established in
year 1865 by Jonatham Symonds at London and United Kingdom. Min motive of business entity
is to give better facilities as well as fulfil clients basic requirements. In this they decides interest
and lone rate is less high which is beneficial part of the customers. In the company there are
large number of the employees are work with each other and motive of there is to achieve long
term goals and objectives of the company. It operates their business functions and operations in
more than 7500 offices and its available in 80 countries, all these are controlled by 85000
workers.
Ethics is also very important and essential part of the because its plays significant role in
growth and development of any financial and insurance sector (Faille, 2011). But sometime, it
will maximise the cost and expanses of the banking industry, that's why business operations
division mainly tries in regards to ignored ethical part. There are certain aspects by which HSBC
can activity ethical part which are determined under this:
Transparency: In modern word, there are large number of the financial and banking
sector but they are not provide transparency to their clients. So it is not good because it will
loosing customer's faith in an effective and unsystematic manner. Buyers are capable to select
any services in different time which reduce the inconsistency rate in revenue and sales. Due to
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gap between that providing of sales and services, whether to purchase as well not and maximise
the changes of buyers mind modify. But sometime transparency is reduced the sales of the
company so it will hinder the customers in order to buy services. Who are interested to analysis
authentic and relevant facility, so in this they make negative image with bank industry and will
also valuable by recommending the similar to their families and friends.
Fair trade practices: It define as a contract between banks and its customers, in this who
are interested and required bank services and products, company mainly highlights those
customers and give their effective facility to them. It will support them in order to maximise their
repo rate with customers in an effective and systematic manner (Fischer, 2010). For example:
manager of the bank try to trade loan to clients who does not needs, just to maximise the sales
which can impacts the repo between both parties. It is very important part of the business entity
because with the help of this bank can maintain long term relation with their clients effectively.
Relation with workers: Employees are main part of the baking and insurance and other
industry. Without their support company can not increase their sales and not achieve desire goals
and objectives in give time period. So bank try to maintain better and long term relation with
their clients which is way of business success and development. Satisfaction of the clients which
is highly depends on employees behaviours and their attitudes. HSBC requires to be ethical and
loyal with their workforce by providing different facilities on time to time such as salary, fair
remuneration, rewards, incentives and other beneficial facility. In this they are responsible for the
issues of customers about necessary information of loan rate and other aspects.
In the market place, HSBC bank reputation is very good as comparison to other company.
They got appreciation by prizing it papular bank by planning ethical and effective role in annual
reports. But there are some problems which is happened in countries are determined under this:
Complains about Credit card: It is a main issues which is face by different clients in Oriental
countries. Main reason for applied by government in order to made rules and regulations. In this
category HSBC is upper ranked organisation which produce different financial services to their
clients in an appropriate manner (Freund, 2016). Related to this, all clients are failed their faith
or trust in banking industry, here workers are plays as vital role in order to take effective
judgement in correct conditions. But HSBC bank and their clients are aware regarding better
utilise of credit cards as well as how to operates this cards in online way.
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Stock market scandals: 1991 and 1992 is identify as financial scandal year in which
international banks were crust for transacting unreal deals in order to cover all losses. HSBC
violated its all information and guidelines by insurance and financial stock market which tries to
maximise unaccounted transaction through fictitious deals.
Outsourcing and Acquisition threat: In UK, HSBC use rationalization due to outsourcing because
it provide a defence to shut down branches as well as scale close others. They closed their
different offices in all around the world, which decrease carer opportunities so output of this is
less job due to outsources of marketing and sales job.
Apart from this, ethics are one of important part of the business development and success
which support them in order to attain long term growth in an effective amener. With the use of
this aspects business entity increase their market share and attract large number of the clients
towards financial services and products (Green and Bandyopadhyay, 2013). It will reduce overall
unethical cost in systematic way as well as maximise business profits in essential manner. It will
made own ethic code which assist in making effective and quick judgement by following all
those aspects.
CSR(Corporate social responsibility) applications:
It is define as a role and responsibility of company towards the environment and
community in which they operates their business functions and activities internationally. It is
very important and essential part of the company success because in this, an organisation can
aware about the citizen requirements and their needs towards necessary information and data.
Main role of this elements is to fulfil basic requirements of their clients and give better
satisfaction for them. It identify for the environment, society, buyers and employees who are
functioning and working with an enterprise. In this motive of those persons is to achieve desire
and long term objectives of the bank in limited time period. Main polices of CSR is to attract
million number of clients and give satisfaction without injury the community values. There are
several application as well as uses of CSR which are determine under this:
Social Banks: They are plays essential role which supports SME's in order to operates
their business functions and activities by presenting loan to them (Hansen and Lyytinen, 2010). It
can support HSBC by maximising relation with these companies, so in this they develop more
opportunities for mentioned organisation by initiating their workers account in it.
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Rural Banks: HEBC bank open their different branches and offices in rural place, as
these person should acquire possibility to use various services of bank in systematic manner. So
it is support the financial and insurance industry in order to maximise customers number. In this
reputation of organisation is also maximised by providing loan on vehicles, house and
agriculture and other places. In this, company can charge person to become own depended on
together as well as capable to complete their basic requirements like shelter and other.
Opening schools: CSR activities is very important for the children who are not capable to
acquire better education, they open education institution for them (Karim, 2010). This phase can
assist the HSBC bank in order to saving a good reputation and tax with government as well as
public also. It is better solutions of any issue, due to this, who can not get better learning, CSR
highly help them by opining schools.
Donations: It is one of the main and important part that complete the corporate
responsibility and role by giving capital which will assist it in maintaining sound relation and
saving tax with legal authorities. Motivated employees do their all work in time to time and feel
proud to follow ethical plan essential. Due to this, they are capable to completing corporate
social responsibilities in an effective and efficient manner. They donate donation to local society
so in this they make their own life is very easy and maximise their livelihood effectively.
Opening community centres: In order to bring compatibility in the community which
have to connect persons as well as develop a sense of duty towards the enterprise. In this
organisation will launching several programs because it supports to promote person into different
activities. Apart from this, company give better training and development to person, so they can
attend this section and maximise their basic skills and knowledge ion particular subject (Lantolf
and et. al., 2015). So output of this aspects is easily analysis a better opportunities of job for
itself.
(2) Effectiveness of the organisation's response
The key aspect of business of HSBC is to generate shared value. It is essential to develop
the communities where the bank performs its business activities in order to increase their market.
Shared values can be created by investing into host nations. They bringing out its goods and
services in order to meet the needs of society. They take essential steps in order to bring social
development ancrease the eeconomic condition of domestic country. Resources are properly
utilized so that environment does not harm. The firm needs to ensure their engagement in CSR
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for the development of society. It adds value for the individual who are part of bank whether
directly or indirectly.
Through CSR, business develop policies and create a culture to serve the society.
Standard Chartered bank have some policies to expand their market and continue its success by
following all international norms and legal requirements. Different environmental related
policies are adopted by the firm (Lawless and Findlay, 2015). The organisation gain various
advantages after adopting CSR activities. Its effectiveness can be determined through SWOT
analysis.
Strengths:
 CSR activities increase their brand awareness and the are getting success.
 They spend its its lots of amount on research and development department in order to
bring innovation and attain new heights.
 They provide better services to the customers than their competitors.
 Its strong image is create in the market. By offering services in 80 countries, Bank have strong global presence.
Weaknesses:
 HSBC getting complaints in context of customer service. Its reduced growth due to economic crisis, 2007.
Opportunities:
 Provide services through which customer can access to internet banking by the use of
smart phone.
 Because of application of appropriate CSR strategies, they can invest in those small
countries whose economy is strong. The bank has scope to bring new and innovative services in the existing market so that
customers are more attracted towards their organisation (Osiyevskyy and Dewald, 2015).
Threats:
 Because of labour shortage, HSBC experiencing high process and human resource cost.
 The bank is facing fierce competition from its competitors in the existing market.
By applying the strategies of generating shared value, HSBC try to remove the
weaknesses and threats they have in the business they adopted. The firm bring new opportunities
for research and development department so that they are capable to develop new and innovative
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products which administer benefits to those customers who needs loan to established new
business. For making banking easy, new smart phone application is introduced by bank so that
customers can take benefits of banking in effective way. It saves the time of users and they are
able to make transactions in very less time. All these activities are directly relates to the
development of society and improves living standard of people. Standard Chartered bank also
conducts training sessions and awareness programmes to educate people and spread awareness
about various schemes and its benefits so that customers are able to take advantages of those
schemes.
(3) Suggested areas for improvements
As the financial and insurance company, HSBC bank, there are few aspects in which
improvements and development is highly necessary or essential. It enables the enterprise in order
to acquire in potential place with their better effective and quality employment. For insurance
and financial business organisation, key area of this company is fixed so in which they function
and work hard as well as satisfy with the business services (Schaltegger and et. al., 2012). There
are different fields which are consider in this such as customer relationship management,
preference, support services and technology. CSR is one of the main and essential activity which
assist in enhancing the business performance effectively. By investing capital and sources in
international places, corporate social responsibility supports them in decreasing the poverty value
within the organisation which assist in improving the living standard. With the use of CSR
activities, HSBC effectively complete their selling actions and its motive. With the support of
this, business can easily increase their personal connection with the clients as well as acquire
trueness towards the business organisation. These are important area which are taken into
business so that they enhance their facility on applying these terms are as follows:
Technology: It is define as essential part because in this, they are does not going to enhance their
facility which leads in discontent on their clients. For this organisation, to use better and
advanced technology in order to complete all work in minimum time period. It is very important
and significant part of the HSBC in order to attract large number of the clients in less time period
(Taylor, 2010). In the company they apply, ATM, Credit and Debit card Machine and other
aspects. All these are reduce customer and bank time as well as cost also.
Customer support service: It is also better area of business development and success because in
this company provide necessary informations to their clients about innovative software, loan and
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