HSBC: Analysis of Internal and External Factors for Business Growth

This report provides an analysis of HSBC's internal and external factors. It examines the impact of the economic environment, including the influence of the COVID-19 pandemic on the bank's performance, as well as the importance of adapting to changing social and technological trends. The report explores the impact of the bank's strategies, such as its focus on the Asian market, and the influence of regulations. It highlights the need for the bank to consider the impact of its actions on sustainability and the importance of sustainable operations. The report concludes by identifying the opportunities and threats that HSBC faces, emphasizing the significance of adapting to the changing business environment.

Introduction
Internal Environment is the factors that create a direct impact on the
Organisation’s performance and productivity. The Internal factor includes
areas such as financial resources, physical resource and human resources
which influences the growth of Company. These factors can be control by
the Firm no matter whether they are tangible or intangible.
HSBC and its Internal and External Factors
External Environment
Political Environment
As, HSBC have spread its presence in many countries they have to work
under the rules, laws and policies of different countries.
Economical Environment
When there is stability in economic factors such as Stock market and Foreign
exchange rates, the growth of the bank can be increased.
Social Environment
Social Factors includes changing social trends, climate change, change in
consumer taste and criminal money laundering, these issues can create an
impact on the performance of Bank.
Technological Environment
The Technological advancement can create an impact on the operation
activities of HSBC on daily basis; the bank must use latest technology that
makes them vulnerable
Legal Environment
HSBC is governed by rules and regulation which they have to follow to run
the business smoothly and successfully.
Environmental Environment
The Bank is focusing on providing sustainable operations and initiatives so
that their customers may feel comfortable and attract towards the bank.
How the company impact its
context External Environment
The Bank is targeting commercial banking and wealth management
to double their growth and focusing on Asian markets such as
China, Hong Kong and Singapore. Due to the impact of COVID
19, bank face huge loss and get drop in profit. The Banks in UK
generates their revenues from Asian Market. Even in the pandemic
also the bank have solid financial performance. As, economic
backdrop is uncertain by focusing on Asian Market can act as a
primary engine of the global economy. The bank is shifting their
strategy towards the Asia which helps in increasing its profits. The
Coronavirus pandemic has created a huge impact on customers and
staff member as bank has closed their various business operation
due to facing loss.
Internal Factors
Strength
HSBC is a reputed brand having strong image in Market with good
financial position. The Bank is present in various business groups such as
investment banking, private banking, commercial banking and financial
services.
Weakness
The Bank is associated with various small business sectors that creates a
more risk for them and lead to profit shortfalls
Opportunity
The opportunity which HSBC can grab is expanding their services in its
existing market. The Bank must expand internationally and strive to
continue to be World’s Local bank.
Threat
HSBC may face various threats it could be of credit issues, unethical
behaviour and financial loss among the banks.
References
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the magnitude and determinants of green bond supply and its
heterogeneity across markets. Journal of Sustainable Finance &
Investment. 9(2). pp.138-161.