Analyzing Global Business & Politics Challenges: HSBC Holdings PLC

This research project examines the complex relationship between global business and global politics, focusing on the challenges faced by HSBC Holdings plc. The study begins with an overview of global business and politics, defining key concepts and outlining the research aims, questions, objectives, and ethical considerations. A comprehensive literature review explores the concepts of global business and politics, their interrelationship, the influence of globalization on business functions, and the specific challenges faced by HSBC in its international operations. The research methodology is detailed, including the research philosophy, approach, type, data collection methods, sampling techniques, and ethical considerations. The report then presents the data analysis and interpretation, followed by conclusions and recommendations, including reflections on the research process. The project aims to provide insights into how HSBC can overcome challenges effectively in the global market. The project uses a case study approach, incorporating a table of contents, introduction, literature review, research methodology, data analysis and interpretation, and conclusion with recommendations, and references.

Research Project

Table of Contents
TITLE .............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
Overview of the study: ..........................................................................................................1
Research Aim.........................................................................................................................1
Research Questions ...............................................................................................................1
Research Objectives ..............................................................................................................2
Rational of the research: ........................................................................................................2
Ethical Consideration.............................................................................................................2
CHAPTER: 2 LITERATURE REVIEW.........................................................................................2
To identify the concept of global business and global politics..............................................2
To understand the relationship between global business and global politics.........................3
To determine the influence of globalisation on business functions of HSBC Holdings plc. 4
To Examine different challenges faced by HSBC Holdings plc when they globalised their
business at international level.................................................................................................4
Recommend different ways through which HSBC Holdings plc can easily overcome
challenges effectively.............................................................................................................5
CHAPTER:3 RESEARCH METHODOLOGY..............................................................................5
Research Methodology...........................................................................................................5
Research Philosophy .............................................................................................................6
Research Approach: ...............................................................................................................6
Research type: .......................................................................................................................7
Quantitative research: ...........................................................................................................7
Qualitative research: ..............................................................................................................7
Data Collection: .....................................................................................................................7
Sampling:................................................................................................................................8
Research ethics: .....................................................................................................................8
Research reliability and validity:............................................................................................8
Questionnaire..........................................................................................................................8
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................11

CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................20
Reflection.............................................................................................................................20
Recommendation..................................................................................................................21
Conclusion ...........................................................................................................................21
REFERENCES..............................................................................................................................23
.......................................................................................................................................................24

TITLE
“To analyze the interrelationship between global business and global politics and the
challenges that can create” . A case study on HSBC Holdings plc.
CHAPTER 1: INTRODUCTION
Overview of the study:
Global business is identified as economic or corporate activity that takes place in
different nations. When an organisation has distributors and factories in the different countries,
this is an instance of global business. In addition, it is a type of business that operates facilities
such as distribution and factories centres in various nations around the globe. This is different
from a global business, which sells and market products in all over the globe but has certain
facilities only its home country (Cetorelli and Goldberg, 2012) . Global politics, also known as
international politics, names both the discipline that examine the political as well as economical
patterns of the globe and the area that is being studied. For this report, HSBC Holdings plc is a
British multinational financial and banking services holding company. It was founded in 1866 by
Sir Thomas Sutherland in Canada Square, London, United Kingdom. Global business and global
politics has interrelationship which will help an organisation in development of its growth and
success. There are different challenges faced by company while globalise their business
operations and activities (Davies, 2016). These challenges or issues mainly related with different
laws and regulations, communication barriers, culture difference and so on. All these are major
issues which will negative impact on development and growth of company at international
marketplace. In order to maintain strong position in international market, company need to
follow all laws and regulations of government in proper manner. Thus, it prove, global business
has strong interrelationship with global politics.
Research Aim
Main aim of this research is “To analyse the interrelationship between global business
and global politics and the challenges that can create” . A case study on HSBC Holdings plc.
Research Questions
 What are the interrelationship between global business and global politics and the
challenges that can create?
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Research Objectives
 To identify the concept of global business and global politics.
 To understand the relationship between global business and global politics.
 To determine the influence of globalisation on business functions of HSBC Holdings plc.
 To Examine different challenges faced by HSBC Holdings plc when they globalised their
business at international level.
 Recommend different ways through which HSBC Holdings plc can easily overcome
challenges effectively.
Rational of the research:
Main reason behind selecting this topic is to analyse the interrelationship between global
business and global politics and the challenges that can create. HSBC Holdings plc is a chosen
multinational bank which will support the community by providing job chances to the them. This
topic will also help an investigator by enhancing its knowledge and capability about literature
review, data analysis and data interpretation (Costinot and Rodríguez-Clare, 2014). All these are
identify as a main skills which will help them to complete each activities or tasks of research in
systematic and effective manner. Globalisation is more essential and important process for
multinational organisation to attain long term goals and objectives within given time duration.
Ethical Consideration
Ethical considerations are one which helps in differentiating between what is right and
what is wrong. While selecting the sources of data it was kept in mind that the data is relevant
and is taken from the sources which can be trusted. Also all those who were part of this research
were ensured that the data collected from them will not be used for any other purpose which is
not known to them (Humphreys, 2017).
CHAPTER: 2 LITERATURE REVIEW
To identify the concept of global business and global politics
According to Docquier and Rapoport, (2012) Global business is also named as
globalisation. This is the important process which includes about doing business across the
domestic boundaries. The aspects which are included under this is about the interaction of and
integration of people, companies and government. To understand this concept also said that
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integration of local and national economies. The different kind of advantages which are
associated with the topic of globalisation includes advances in transportation, communication,
technology etc. Along with the positive aspect of globalisation there is the negative side of this
process which includes about the culture and language differences. It is not easy always to adapt
in accordance with the new conditions and this will results in creation of distress within the
corporate structure of the organisation. The overall impact is seen over the working of the
different departments of the organisations and their power about the timely completion of work
as they unable to complete the work on stipulated and targeted time which is decided earlier. For
example there are different organisations which operates their business operations in many
countries like M&S, Unilever, Tesco, HSBC etc. All these organisation operates their business
activities in many countries and adopt the norms and cultures according to the nations
requirement. HSBC is having their operations in Hong Kong, UK, China etc. This is the basic
reason that this organisation is termed as global organisation having operations in more than one
nation.
According to Hirst, Thompson and Bromley, (2015) Global politics is the concept which
arose because of the organisational operations in different nations. This is about how one
organisation belongs from one nation is needed to cope up and follow the regulations and laws of
the different countries in which they going to operate their business operations. Each and every
country is having different government and they made the laws and norms according to the the
situations present in nation. This is the duty of the management of the organisation that they
must follow the these regulations properly while conducting their business operations.
To understand the relationship between global business and global politics
According to Rai, (2013) there is a close connection between global business and politics
as they have many factors that are directly related to one another. Global business is the
commercial activity which is carried out at global level and global politics is world politics,
names both the discipline that studies the political and economic patterns of the world and the
field that is being studied. Every country has their own political structure and any organisation
who wish to operate at worldwide level need to take care of the present political conditions of
that particular place as no company can enter in the other country if the government do not
support the same. HSBC is a bank which is a part of a very important sector and government has
major interest in same. While planning the operations and policies of the bank it is important that
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all the political conditions that are made to follow by the banks are considered as if not than the
firm is accountable to the government. Government has major stake in maintaining the economic
conditions of the country and therefore every bank be it HSBC or any other take care that while
it formulates the landing and borrowing plans it does not gets highlighted in front of the
government and still manage to make good profit.
To determine the influence of globalisation on business functions of HSBC Holdings plc
According to Ritzer and Dean, (2015) globalisation is a huge concept and has a direct or
indirect impact on the functions of organisation. No company operating at global level can
operate with its own domestic working culture as during globalisation adjustment has to be done
according to the present external conditions of the other nation in which you are moving in. It
becomes necessary to adopt the work culture of that particular place as otherwise your company
is out of the corporate culture of that particular nation. Also when operations are started in the
new country the working at initial level is difficult as it takes time to understand the working
atmosphere, the market and everything. The competition level increases as the domestic
company is new to the country and people take time to trust the new brand. Stromquist and
Monkman, (2014) further adds that the business is highly influenced with the technology of the
new place as it again requires patience and training to become familiar with the changed
applications. At initial level much switching cost of technology has to be suffered which has
great risk as in case it did not turn out to be productive than company may go under huge loss.
The author also says that to get the employment is difficult if the economic conditions of that
particular place are not stable and are not favourable.
To Examine different challenges faced by HSBC Holdings plc when they globalised their
business at international level
HSBC is multinational bank and having their operations in many countries. It is not easy
for the management of the bank to conduct all the activities properly without facing any
challenges in the new country. The different nation where HSBC having their operation includes
Hong Kong, UK etc. The different type of challenges that can be faced by the management of
HSBC bank while they are going to globalise their business operations is understood from the
points which are defined below:
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 The biggest challenge faced by the bank while going to operate at different nation about
culture. It is hard for the employees to adjust in the new culture and provide their
optimum effort in completion of predetermined objectives of bank.
 Language is also one of the barrier that can be faced in the process internationalisation.
This will brings communication gaps and negatively impacts on the process of team
development (Varese, 2013).
 It is not easy to transfer all the employees to the new place for job. Recruitment of the
talented employees as per the job specification in new country is difficult task an this will
negative impacts the output of the bank.
 In the process of internationalisation the major issue is also about dynamic environment.
In that case situations are changed drastically in less period time and sometimes the
decision of expansion become the worst. This would be the reason due to which an
organisation or bank has face loss (Borjas, 2015).
 Political instability is also one of the reason that results into the creation of challenges for
an bank like HSBC to properly follow all the laws properly. As this instability in nature
results into the frequent changes in laws and regulations and this would be difficult for
the management of bank to adopt frequently.
Recommend different ways through which HSBC Holdings plc can easily overcome challenges
effectively
According to Webster, (2016) when an organisation plans to go at globalise level it is
important that it simultaneously also make arrangements for the problems that will come across
as most of them can be predicted well in advance. It is important that continuous training
programs are made for the working staff so that they can compete with the external business
environment. apart from this more of interactive sessions should be conducted as this will help in
understanding the culture of new place which is of great importance to develop the working
culture.
CHAPTER:3 RESEARCH METHODOLOGY
Research Methodology
This is the process which includes about the theoretical and systematic analysis of the
different methods which provides an opportunity to collect the different type of information
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regarding particular field of study. Research methodology includes the theoretical investigation
of body of law subordinate with the branch of knowledge.
Research Philosophy
It is the important technique which includes about the collection of information from the
different respondents to ascertain their views (Ducassy and Montandrau, 2015) All these views
are recorded in proper manner as these will be used in future to grab proper conclusion. The
respondents are select by the researcher to ascertain their views on the research topic to analyse
the perfect solution. This will provides an opportunity to grab the knowledge about the topic and
provide better recommendations. There are three different types of philosophies. These are
named as pragmatist, positivist and interpretivist (Lawrence and Almas, 2018). The one which
is used within this research while carrying out the whole process is named as pragmatist. The
main aspect behind the adoption of this research philosophy is that the topic is wide in nature.
This will includes about the ascertainment of the relationship between global business and
politics and the challenges which are associated with them. This is very time consuming in
nature and the adoption of this technique help to work effectively and grab the actual and
efficient knowledge.
Research Approach:
This is the important technique which provides an opportunity to grab the information
from the topic and provide appropriate recommendations (French, 2015). This will help in
getting deeper knowledge about the research topic and provide accurate and reliable conclusions.
These approaches are further divided into two parts. Thee approaches are named as deductive
and inductive. The approach which is used to carry on this research is named as inductive. The
main reason behind the adoption of this approach is that it provides authenticated views over the
research topic and also help in the process of concluding and considering quantitative data. The
main focus which provided as per this approach is upon the data collection. The method which is
sued to collect is named as questionnaire (Ho and Fung, 2016). This is the important method
which help to gather the reviews of respondents upon the topic and to analyse information to
brought proper results.
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Research type:
This will help to ascertain the number of approaches present to carry on the research
work. The two different types of researches which can be used to carry on the process of research
are named as Qualitative and Quantitative. Both these approaches are different from each other
and having their own different contribution in the process of research.
Quantitative research:
This method is used to collect the information in quantitative form in respect of the
research problem so, the proper and accurate results can be gathered in terms of statistics. This
will provides an opportunity to the researcher to present its opinion in quantify manner
(Galbreath, 2017). All these quantitative results are gathered by researcher from the large
number of population in the form of statistics. The different kind of methods which can be used
to conduct this research are named as Survey, mobile survey etc.
Qualitative research:
This is known as primary exploratory research which is used to collect or gaining the
information in respect of the opinion, motivation and reasons of respondents upon the research
topic. It is the form of the investigation which provides additional information in respect of the
problem which is used to in future period of time to develop ideas. Al these aspects and results
are further used to do quantitative research. The different type of methods which can be used in
this process are named as interview, group discussion etc. These methods are the use by the
researcher who want to conduct the research with the help of qualitative method (Bohas, 2015).
Data Collection:
There are mainly two types of data collection methods which is primary and secondary.
For accumulating primary information, questionnaire will be applied by investigator as it will
help them by providing reliable and valid data about the topic. On the other hand, for collecting
secondary information, books, magazines, journals etc. will be used by researcher to accumulate
in-depth information about the topic. Thus, both are consider useful sources of data collection
and help a researcher to collection appropriate and in-depth information which is related with the
topic.
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Sampling:
For selecting sample size from total population, there are two method which is
probabilistic and non-probabilistic. According to the topic, probabilistic sampling will be used by
researcher because it not require maximum cost, time and resources of a researcher. On the other
side, non-probabilistic method is not useful for this project because it take more time and
resources of an organisation. With the help of probabilistic sampling 50 respondents will be
taken into consideration (Jha and Varkkey, 2017). It is the important method which includes
about the selection of respondents from the large number of populations to ascertain their views
over the research topic. The two different method which can be used in this process is known as
random and non-random sampling. The method which is used for the selection of the
respondents in this research is known as random sampling. This is the process where respondents
are selected from the large number of population on random basis.
Research ethics:
This is the approach which includes the process of conducting the research in ethical
manner. There are large number of techniques are used in ethical manner to gather the
information which is more authenticate in nature. This will provides an opportunity to provide
better and adequate recommendation on the research topic. The importance of this concept is
ascertain in the nature that it help to protect the right, welfare and dignity of the research
participants. The major focus while conducting the research is upon brining of the confidentiality
of the information which is shared by the different respondents.
Research reliability and validity:
It is the most important aspect which governs about the aspect that research is needed to
be done with reliable and authenticated manner. The main reason behind the ascertainment of the
aspect is about getting accurate results which help in future to be more successful. Surety of the
reliableness and validity of the matter help in the attraction of the readers attention. Along with
appropriate information references and citations is also provided which shows the source from
where information is gathered by the researcher in the process of collection of authenticate
information (Zajda, 2015).
Questionnaire
1. Do you think that there is a connection between Global business and global politics?
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Ans 1
(A) Yes
(B) No
Q2. What is the main link between Global business and Global politics?
Ans 2
(A) Job creation
(B) Infrastructural development
(C) Attract investment
Q3. What are the key benefits of Globalising business?
Ans 3
(A) Market expansion
(B) Higher profitability
(C) More flexibility
(D) Less dependence on one country
Q4. According to you, which of the following is key disadvantage of globalisation?
Ans 4
(A) Issue related to cultural difference
(B) Security of company's data
(C) Less control to management
Q5. Do you think that Globalisation helped HSBC in expansion of their business?
Ans 5
(A) Yes
(B) No
Q6. Do you think that negative global politics can made unfavourable influence on Global
businesses?
Ans 6.
(A) Yes
1. Do you think that there is a connection between Global business and global politics?
Ans 1
(A) Yes
(B) No
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