Enterprise Management and PESTLE Analysis: HSBC's Strategic Overview

This report provides a comprehensive analysis of HSBC, focusing on enterprise management and the application of the PESTLE model. It begins with an overview of HSBC's current position, including financial performance and strategic investments. The report then delves into the PESTLE model, explaining its relevance in assessing the macro-environmental factors that influence the organization. Political, economic, social, technological, environmental, and legal factors are discussed in detail, with specific examples of how they impact HSBC. The analysis highlights how HSBC navigates governmental policies, economic conditions, social preferences, technological advancements, environmental concerns, and legal regulations. The report concludes by summarizing the key findings and emphasizing the importance of the PESTLE model in understanding HSBC's strategic environment. This report is available on Desklib, a platform offering past papers and solved assignments for students.

ENTERPRISE MANAGEMENT
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of current position of HSBC.......................................................................................3
Discuss about the PESTLE model and how it is relevant to the business environment..............4
Application of model to industry of HSBC firm.........................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Enterprise management is based on the process that allow for business to manage day by day
processes. It is primarily designed for organizations that suitable for business while
implementing costs and less complex IT infrastructure often found in the enterprises. EM covers
all type of necessary businesses in one package, transfer the information from one section to
another. It able to check stock, which assists in management and planning to keep track various
organizational activities. In this report, it will discuss about the PESTLE model that useful for
analysing the key factors which may influence organization from outside. It offers the business
insight into external factors which directly impacts on the organization. Furthermore, it will
analyse about the current position of organization.
MAIN BODY
Overview of current position of HSBC.
HSBC is based on the British multination investment bank which provide various type of
financial services. it is the 7th largest bank in world and trace its origin to a hong in Hong Kong.
A Bank’s internal financial control with reference to standalone financial statement is a type of
method or process, which provide designed in terms of assurance. In most of cases, HSBC
should include those procedures and policies that pertain to maintain large records where it
reflects on the transactions and disposition of assets in the organization (Naheem, 2018). As per
report, it has found that HSBC adopted the new requirement related financial instruments in
January 2018 with exception of provision relating the presentation of financial loss and profit.
Currently, HSBC revenue was increased 5% approximately $53.8 billion, which reflected the
revenue growth of business.
As per report, it has been increased the revenue that included favour effects on the
foreign currency translation. Nowadays, The adjusted operating expenses of $33.0billion and
$1.8 bn or 6% higher. In this way, HSBC has made strategic plan for investment in new
capabilities and functionalities of global markets. It has continued to invest in HSBC securities
joint venture in other nations. So as increased the investment in terms of productivity events or
programmes, while performance pay increased by $0.2 billion and volume related growth
increased by $0.3billion. Apart from that HSBC is target to achieve the return on tangible equity
more than 12% in 2020. Therefore, it can estimate the profit attributable to shareholders where
they will try to do less changes in their goodwill. HSBC concern about the long-term profit rate
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in context of insurance business. A targeted reported of 11% in 2020 which are equivalent to
original reported based on the equity. HSBC has made a plan in respect of year at the current
level for future enhancement and development (Romozyan, 2016). From growing the business. it
must be depending on the overall business profitability and further meet the expectation level of
organization in timely. In order to achieve the financial target in 2020, it will require to achieve
their primary aim and deliver the growth in revenue generation. It has been addressed that it
become increases 1-2% annual growth.
As per given economic environment, it will seek to perform action to manage all type of
investments and operating expenses. By calculating the financial performance, it has been
adjusted that profit before tax $7.2billion and 10% higher. In this way, it also reflecting the more
growth revenue in global world. Afterwards, it can be identified that current position of HSBC in
global marketplace. it also creates value by providing the better financial services to customer. In
order to achieve the significant goals and objectives (Tahri, 2018). It helps for building long
lasting relationship with potential client because they always maintain trust to protect sensitive
information or data related financial services. Currently, the organization has been operating the
high standards of conduct, while achieving the long-term success in marketplace.
The primary aim of HSBC is to connect with people in terms of opportunities. It
considered the responsibility to secure and protect the information of customer while
communities and integrity to increase financial performance. HSBC has used the different tool
and platform to monitor the non-financial risk. It is continued to apply the approaches for
managing operational risks effectively and efficiently.
Discuss about the PESTLE model and how it is relevant to the business environment.
A Pestle analysis is based on the framework and tool that used by marketers to monitor and
analyse Macro-environmental factors, which may directly impact on the organisation. On the
other hand, it is a type of tool that mainly used to determine macro forces. It mainly involves
political, economic, social, environmental, legal and technological. Sometimes, it depends on
HSBC, it will be reduced the PEST and also add ethical. It is useful for HSBC to identify
weakness and threat of enterprise in global marketplace.
Political Factors:
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HSBC has been sheltered by policies and regulation that made by government in the
nations where organization operate. The organization has been able to remain agreed on the
government policies which help for accomplishing the business operation successfully and
effectively. HSBC company always try to formulate defence strategies beside any type of
governmental limitations and restrictions (Barik and Kumar, 2018). In this way, Political factor
plays important role in banking and financial services. Traditionally, the financial institutions
have held immense power through government regulation. However, it is being leading
repositories of public savings.
Economic Factor:
It is being one of leading and completive enterprises in actual condition of banking and
finance of HSBC. In this way, they can secure and successfully maintained the economic
strength. In despite, there are lot of danger that they meet in different part of entire world. The
HSBC management make what they required to ale to go beyond such struggle and have a better
economic condition. In this way, it will create a shield against the unemployment.
Social Factor:
HSBC is affected by different circumstances within society in which they are mainly
used. The organization always tries to make sure that community will give same chances and
also take benefits of resources given by company. HSBC adhere to having a good reputation and
effective relationship with society (Sanjeepan, 2016). In this way, it is also belonging to secure
everything and it will be under control and maintain. The social factor is especially important for
HSBC when targeting the potential client towards financial services.
Technological Factor:
The advanced technology plays important role within HSBC firm because it helps for
competitive advantage and benefits. It provides the better quality of services at reasonable price.
In context of bank, internet is an essential source because it provides an efficient and practical
services. Modern technology has rapidly changed overall business activities of HSBC. The
organization search for various system and used internet to directly interact with client all over
the world. A large part of tasks which carried out by HSBC through Information technology. It
has undertaken centre step and from client accounts to insurance, loans and other several
services. On the other hand, there are different issues arisen because of technologically
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innovative and development. Security and Privacy is major concerns that have grown bigger with
expanding use of advanced technology.
Environmental Factor:
The environment friendliness has become important for HSBC because it always try to
investing in the energy management. In order to maintain and control the entire environment
footprint. HSBC have taken important steps towards paper less transactions. It also introduced
the lithium-based batteries that always used the solar energy for purpose of functioning. In this
way, it automatically minimizes energy consumption (Sanjeepan, 2017). HSBC also published
the yearly environmental reports and highlighting the achievement in past years.
Legal Factor:
In HSBC, it has increased the governmental rules and regulation from European, it has a
larger employer and affected by labour laws. The legal risks are immense because of regulation
and which are higher in the banking sector. HSBC is heavily regulated area where compliance
mainly focused on the spending. HSBC has required the higher capital needs and new antimony
laundering requirements where company deals with the legal rules or regulations. Sometimes, it
is very time consuming and expensive.
Application of model to industry of HSBC firm.
HSBC is a multinational bank and because of that all the factors affect this firm and their
application on the firm is as follows-
Political Factor
Political ideologies and values of political leaders who are in power are very affective for
the firms specially when they are multinational and operate in other countries. Political
ideologies sees that their country should have maximum benefit from the operation of
multinational firms in their country (Frue, 2017). Many times while operating in other countries
HSBC have to face strong rules and regulations of that country. Many times such rules and
regulations are very difficult to follow but in order to work smoothly in other country and do not
face any problem which may disturb its working HSBC have to follow those rules. Many times
political instability also affects its working and in such times HSBC also have to accept changes
which come because of changes in government parties in power.
Economical Factor
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HSBC is a bank and that is why this factor affects its operations most significantly. Economic
factor refers to economic condition of the countries in which HSBC is operating. This includes
various things which includes GDP, Tax rates and saving and investment tendency of the people
of that country. In the investment tendency of particular country in which HSBC is operating in
such case this is a positive factor. Decisions of HSBC are affected by this factor mainly when it
comes to expanding and opening new physical locations for the bank.
Social Factor
This refers to values and preferences of the people where HSBC is operating. Success of
the HSBC is mainly dependent on the acceptance of the people who are living in the country.
Many times people of a country do not trust firms which are not from their nation. This
specifically applies where money is associated. This requires that HSBC put extra efforts to win
trust of the people and make them believe about the value that HSBC gives them. The factor of
tendency of people about their investment and saving relates to this factor as well.
Technological Factor
This is most important factor which affects the success of the business n present
environment and HSBC is no exception. It is a bank and banks presently through technology
have make it too easy for people to access and use the services of banking without any trouble
and banks which are advance in the same are being liked by people more (Perera, 2017). To
ensure its success HSBC needs to ensure that it is also advance in technological factor and
provides easy to use services to customer and along with that makes best use of the technology
so that it can provide its services in innovative form.
Environmental Factor
Though being a banking firm HSBC do not get much affected by this factor but though
HSBC needs to ensure that any activity of the firm do not harm the environment and its
sustainability because it has become prime concern of many national and international
organisation and of all the global citizen as well.
Legal Factor
This is another significant factor which affect and interupt operation of the HSBC. It gas
to follow many legal rules and regulation which includes rules and regulations of international
organisation and national organisation (Naheem, 2016). Legal rules and regulations of the
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country in which HSBC is working are most important to follow to ensure smooth working of
the firm.
CONCLUSION
From above discussion, it concluded that Enterprise management is based on the process
that allow for business to manage day by day processes. It can be designed for organization that
suitable for business while implementing costs and less complex IT infrastructure often found in
the enterprises. Enterprise Management has covered different type of necessary businesses in one
package, transfer the information from one section to another. it has summarised about the
PESTLE model that mainly used by organization to identify the different factors which may
influence organization from outside. It can be analysed about the current position of business in
global marketplace. It offers the business insight into external factors which directly impacts on
the organization.
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REFERENCES
Book and Journals
Barik, B. and Kumar, S., 2018. Macro Environment of Indian Life Insurance Business: A
PESTLE Analysis. Bimaquest, 18(3).
Frue, K., 2017. Pestle analysis for the banking industry.
Naheem, M.A., 2016. Risk of money laundering in the US: HSBC case study. Journal of Money
Laundering Control.
Naheem, M.A., 2018. Illicit financial flows: HSBC case study. Journal of Money Laundering
Control.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Romozyan, A., 2016. Islamic finance: current position and its future on the traditional finance
market.
Sanjeepan, N., 2016. Strategic planning and analysis for commercial banking: An analysis based
a commercial bank operating in Srilanka. Journal of Asian Business Strategy.6(9).
p.195.
Sanjeepan, N., 2017. Strategic Analysis and Strategic Planning for Commercial Banking (An
Analysis based a Commercial Bank operating in Sri Lanka).
Tahri, A., 2018. Consumer based brand equity in retail banking industry: a cross analysis of a
domestic and global bank operating in the UK (HSBC vs Barclays) (Doctoral
dissertation, Anglia Ruskin University).
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