Business Strategy Analysis of HSBC: Mission, Vision, and Objectives

This report offers a comprehensive analysis of HSBC's business strategy, encompassing its mission, vision, objectives, and core competencies. It delves into the factors crucial for strategic planning, including engagement, communication, and innovation. The report examines HSBC's strategic positioning through organizational and environmental audits, utilizing SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. Stakeholder analysis is explored to understand its significance in formulating new strategies. The report further evaluates the appropriateness of alternative strategies, justifying the selected approach, and addresses the roles and responsibilities of personnel involved in strategy implementation. Finally, it assesses the application of SMART targets in achieving strategic goals within HSBC, providing valuable insights into the company's strategic management and future development.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION....................................................................................................................... 1
TASK 1....................................................................................................................................... 1
P 1.1 HSBC's mission, vision, objectives, goals and core competencies from the strategic
planning.................................................................................................................................. 1
P 1.2. The factors to be considered while formulating strategic planning................................2
P 1.3 The effectiveness of techniques while strategic development plan..................................3
TASK 2....................................................................................................................................... 3
P 2.1 The strategic positioning of HSBC group by carrying out an organisation audit.............3
P 2.2 Environmental audit of the HSBC group........................................................................4
P 2.3 The significance of stakeholder analysis while formulating new strategy.......................5
P 2.4 New strategy for HSBC business.................................................................................... 6
TASK 3....................................................................................................................................... 7
P 3.1 The appropriateness of alternative strategies..................................................................7
P 3.2 Justification of selection of strategy................................................................................ 7
TASK 4....................................................................................................................................... 8
P 4.1 The role and responsibilities of personnel who are charged with strategy
implementation........................................................................................................................ 8
P 4.2 Requirement of resources for implementing strategy......................................................8
P 4.3 Evaluation of SMART target for achievement of strategy..............................................9

·INTRODUCTION
Business strategy is an effective plan of action for every organisation in order to
accomplish their goals and objectives of organisation considering the several elements of the
firm. In this study we would cover how mission, vision, objectives, goals and core competencies
inform the strategic planning and analysis of the factors that have to be considered when
formulation strategic plan in HSBC group. In the middle level of this investigation, we would
discuss about to the strategic positioning of the business and an environmental audit of this firm.
Furthermore, we would have analysis of the appropriateness of alternative strategies relating to
market entry and so on. Also, assess the role and responsibilities of persons who are charged
with strategy implementation. Ultimately, we cover the contribution of SMART targets to the
achievement of strategy implementation in HSBC corporation.
·TASK 1·P 1.1 HSBC's mission, vision, objectives, goals and core competencies from the strategic
planning·Mission: HSBC through the international platform communicate all the customer at all over
world with the latest technology and with involving highly growing e-commerce services, HSBC
wants to provide across-the-board financial services and personal banking and financial services,
commercial and corporate banking, investment and private banking and so on(Scholes, 2015).
Their main mission is accomplished their all predetermined goals and objective within the
corporation in effective manner. So the company has set up mission statements in order to
gaining desired success in financial sector of the firm.·Vision: Vision of HSBC to show the future expectations of firm. Our major vision is provided
world greatest banking group of product and strategy. We believe on our commitment and value,
which are all about customer satisfaction.·Goals: HSBC firm provide services to their 38 million customers all around the world through
its global business environment. Our main goals are provided appropriate financial services at
global level, pursuing growth for the business, communicating customers to the opportunities,
managing economy at equivalent valance of the business, and satisfy customer's needs and hops
very effectively(Teece, 2010).
·Objectives: There are several objectives of HSBC financial institution, which are as following:
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1Being a leading financial institution at the global level with providing the best banking and
financial services.
2Effective wealth management and economic growth of the business.
3Use innovation in the operation management and other exercises of HSBC group to raise
customer satisfaction within the firm.
·Core competencies: HSBC group provide better and effective financial services from their
competitors in the market to make their unique image in customer mind(Montgomery, ed.,
2011). This firm are well managed in furnishing corporate and NRI banking services across the
world and highly dedicated towards the goals and objectives of the firm in terms of increase
their market share within the business. There are some interrelation among their vision, mission,
goals, objectives and core competencies of the HSBC group.
·P 1.2. The factors to be considered while formulating strategic planning
Strategic planning is very vital part for the HSBC group in terms of accomplish their
desired goals and objectives within the firm. There are some factors which must consider
appropriately within the business in order to formulate a relevant strategic planning(Campbell
and Stonehouse, 2011). These factors are as following:·Engagement: Strategic planning is a formulating process not an event. The key factors of this
approach is make engagements with their every employees with superiors management in terms
of making strategic planning and staff engagement generate a climate within the HSBC business
to formulate an appropriate engagement strategic planning in terms of achieve the firm's targets
and goals efficiently.·Communication: A strategic planning could be successful when they are well communicated
with their all impotent phases within the HSBC firm. It starts with the level in which their huge
staff and workers are communicated with various levels of business in terms of furnishing better
suggestion to appropriate changes and modification in the business(Gilad, 2011).
Communication is necessary factor of HSBC firm that provides their management well
administration with their workers in order to formulate their strategy regarding well planing of
their financial services.
·Innovation: In this approach, innovation is considered as a most important factor while
formulating strategic planning because there are also a huge need of innovation for succession of
HSBC group's strategic planning. The company provides individual together in this major
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initiatives and spend some investment on them for of strategic planning succession within the
business. Innovation is a most reason for every changing areas in the business nowadays. In the
HSBC group also need to change in their business innovation techniques in order to provide
their effective financial services to their clients.
·P 1.3 The effectiveness of techniques while strategic development plan
Each strategic plan depend on their business situation that would assist to develop
appropriate strategy within the HSBC group(Reich and Benbasat, 2013). With the help of this
develop strategic plan business can stand at a competitive level in the current market. Effective
techniques while developing plan are as below:
·BCG matrix: This approach helps the HSBC business to determine their business level in the
market. There are four elements of these techniques which are used to analysis of business
growth and their strategic succession within the firm. Business strategic plan are formulated with
the help of considering current circumstances of the business and growth rate of the firm. BCG
matrix assists business in terms of ascertain its growth rate with associated firm shares(Liedtka,
2010). It determines the relative market shares portfolio in the firm in terms of accomplishing
higher corporate market shares and result in higher cash return in the HSBC enterprise. Higher
market growth rate means higher earning in the business but many of times it consumers many
of their cash, and that amount are used as an investment in future growth. BCG matrix are easy
to perform in the business in context of development of strategic business plan in HSBC
company. Business could be classified in four departments as cash cow, dogs, stars and question
mark. It helps the HSBC group in computing of their relative market share in terms of analysis
of their growth in the industry and also help in development of their strategic development plain
within the business.
·TASK 2
·P 2.1 The strategic positioning of HSBC group by carrying out an organisation audit
SWOT analysis of the HSBC group which incorporates strength, weakness, opportunities
and threats of the business efficiently.·Strength: Strength of HSBC corporation is its dedicated employee, using updated innovation in
the business, provide quality of financial services to their customers, the best personal and
corporate banking service provide in the segment, their financial expertise skills in the
operational level etc(Ghezzi, 2013). It helps the organisation to achieve their top level
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performance and efficient power to their employee and administration of the firm. HSBC firm is
operating various branches at across the world and providing services to 38 million customers
across the world in terms of accomplishing their goals and objectives efficiently.
·Weakness: There are not several weaknesses of this firm which make improvement in their
better strategic position in the market. Major weaknesses, there are poor management process
and old strategy with customer dealing, HSBC group are not using innovative technology
and they have poor communication in terms of financial service providing across the
world etc. these are being barriers in front of strategic positioning of the firm.
·Opportunity: the HSBC corporation is serving their financial services at worldwide level so
that there are great and numbers of opportunities are presented for the business in terms of
accomplish their desired vision and mission of the corporation(Rossi, 2010). With the help of
new branches set up at various region in the world and using innovative technologies in
branches, HSBC firm can reach to the best service provider and generate more wealth for the
business.
·Threats: There are major threats of the HSBC business is rapidly increasing their competitors
in the financial sector and provide best services at effective rate of interest and using innovative
technology in the firm. Threats are being cause of the HSBC organisation to be updated with
competition and get the best strategic positioning in the market.
·P 2.2 Environmental audit of the HSBC group
Environmental audit of the HSBC group provides an idea from which the firm can
operate their business efficiently and effectively by using PESTLE analysis:·Political: Political factor affect the business in terms of accomplishing their goals and
objectives within HSBC firm(Mitra, and Bhardwaj, 2010). This corporation must need to try to
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improve their relation at their various region's political affairs and updated on their rules and
major decision at various stage in the different countries in terms of increase their profitability
and market share for high level.·Economic: There are various elements which ascertain the economic value of the HSBC
business which have sort terms and long term effect on the business. Economic growth involves
different interest rate, economic growth of the several country, foreign exchange rate and
inflation rate of different countries may affect the business at various stage. These changes can
affect the demand of the customer from their financial needs and desires.·Social: Social factor involves different culture in different countries, there are several
languages, life styles and demographic elements may affect the price and demand of the product
and services of the HSBC firm and the company need to provide their services according to their
preferences way to make it more effective.·Technological: There are several technologies are using in the HSBC group to furnish effective
services to their customers across the world(Hahn, Figge, Pinkse and Preuss, 2010). Technology
must be updated in each business nowadays, because with the help of innovative technology
they would be able to generate more market share at various level. This business also need to
update their some technology in terms of increasing their sales at global level.·Legal: Legal approach may affect the business at two level which are internal and external.
There are many rules and legislative provision at various countries in the world. The HSBC
group may affect several legal rules and regulation of different-different countries.
·Environmental: Environmental factor may affect the business such as framing, tourism,
climate, agriculture and geographical factors determined by surrounding business at various
stage. Business environmental analysis involves climate, weather, global changes and
geographical changes in the several countries.
·P 2.3 The significance of stakeholder analysis while formulating new strategy
Stakeholder analysis is a vital part of the business, it recognise the effectiveness of the
most important people who make great impact on the business as well as take great initiatives
while making major decision of the business(Zott, Amit and Massa, 2011). For HSBC group
need to identify the strength and weakness of their stakeholder within the business in terms of
gain their more advantage by providing more effective financial and banking services across the
world. These stakeholders are shareholder, employees, workers, management, customer and
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government etc. while starting up a new project implementation in the firm and changing in
existing areas of the business firm need to develop their strategy to take analysis of their
stakeholder effectively to know about to their attitude, issues, potentials and interest of
stakeholders at various stages(Burlton, TBuckley and Ghauri, eds., 2015). By using the analysis
of all these factors of stakeholders the HSBC group management would be able to the key
people of the firm who are making great impact on the every changing environment of the
business and give them opportunities towards their role and responsibilities within the
corporation. For the help of these exercises, organisation need to operate their implement the
approach of stakeholder analysis in terms of know their perception towards the business and also
know about their work effectiveness within the firm and well frame a new business strategy in
order to relevant sustain the market of the UK. Stakeholders of the business is essential factor for
the business in case of making major impact on strategic changes and new strategy formation of
the company. Stakeholders of the company influences the business functionality in order to
appropriate changes in business approaches to gaining sufficient development.
l壱P 2.4 New strategy for HSBC business
Every new strategy of each business increase development in the firm and helps to meet
its goal and objectives in the organisations. HSBC group could implement of new market entry
strategy in their existing business to enhance their productivity and profitability of their
upgraded baking and financial services within the business(Pehrsson, 2010). In context of
gaining the competitive advantage and solve their financial burden in the business, HSBC group
could use this following new market entrance strategy:·Joint venture: This is an effective strategy for developing each business in new areas across the
world. With the help of this factor HSBC group could enhance their outcomes at their higher
stage of business. According to this approach, HSBC group could analysis of the current market
survey and recognise the all corporations which are operating in the banking and financial and
understand their strategy to set up their joint-venture at various stage in several countries(Grant,
R. M., 2016). This type of business methodology needs to low investment in set up new joint
venture, infrastructure development and hire talented and skill staff from their local population
in terms of increasing their efficiency in that working environment in which they want to enter
in the market. And formulate an agreement to other financial institution of the various countries
in which they want to implement their new joint venture. These activities would be beneficial for
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the firm because it conducts low risk, both corporations share their resources according to
situation in the business and make contribution in the firm according to their joint-venture
contact. This would help the organisation to enhance their profitability. HSBC business will be
responsible for making joint venture for gaining desired values of the firm. So it can be said that,
HSBC will be able to gain appropriate proportion of profitability according to their share in the
business.
·SMART desired objectives of new strategy are as following:
1To raise the customer financial services 7% by the end of 2018 year.
2To enhance the profitability of the firm 8% by march 2018.
3To raise field of sales 15% by December 2018.
·TASK 3·P 3.1 The appropriateness of alternative strategies·Market entry: Enter into new market segment is totally a different strategy which could be used
by HSBC group in terms of expand their business in new market. The business can enter into the
new market by their existing new product and services which are associated with banking and
financial services(Torrent-Sellens, 2015). It is base on the several external elements which are
government taxation, level of competition, geographical factors and customers preference does
matter into the new market. HSBC group could use of this alternative strategy to enhance their
existing business at various fields.
·Substantive growth: Substantive growth assist the organisation in terms of create their well
positioning in the market. It is basically classified the business in two categories which are
vertical and horizontal. Horizontal approach ascertain about to the merger of two existing
business and create a new company. And in the vertical approach describes about to develop
their own distribution and supplies channels in terms of increasing their business in various
areas. HSBC group could use of these alternative strategy to enhance their business in new
existing market instead of providing their banking and financial services.
·P 3.2 Justification of selection of strategy
There are several alternative strategy which are presented for HSBC group in terms of
expanding their business in same fields and new areas as well(Amit and Zott, 2012). For
enhancing their quality and quantity, there are most appropriate strategy is new market entry in
various country across the world. In order to implementing this strategy there are no need to
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large changes in the organisational function and policies, because it could possible with the help
of know about to the all new market analysis and its beneficial for the firm. With the help of
new market entry HSBC group would be able to expand their business from banking and
financial services. So it could be said that HSBC group would accept this strategy and apply on
their own business. Moreover, it requires the low investment to enter into new market and
development of their new infrastructure. As well as, the firm can retain their experienced
employees in terms of support their business to enhance capacity of production of their new
market business by sharing their risk and cost with their new business partners which helps to
succession of strategy more effectively. HSBC group use this strategy in terms of enhance their
business in order to expanding their business into new market.
·TASK 4·P 4.1 The role and responsibilities of personnel who are charged with strategy implementation·Research and development manager: In terms of implementing new strategy in the business
research and development manager would gather and communicate the appropriate information
about to the new market entry strategy and change in the major areas of HSBC business in order
to succession of this strategy(Moon, 2010). Research and development manager would take an
analysis of this project development and expansion and figure out the best way to implement this
strategy.
·Finance manager: In context of implementing new market entry strategy, the role of finance
manager is estimation of additional cost in the new market entry for initial two and three month
and analysis of various financial sector of the business with the help of several financial tools
and techniques using in the strategy to cost reduction in the business and also examine the return
on the investment the efforts of partnership.·P 4.2 Requirement of resources for implementing strategy·Technology: Technology play a vital role in terms of enter into a new business. For HSBC
group need to use latest and innovative technology in terms of entering into new market to make
their image more positive in front of their new targeted customers.
·Human resource department: HRM department play a very crucial role in terms of effective
manager each new market enter business(Weber, 2011). HSBC group requires hire a skilled
human resource professional in terms of efficient manage their all stage of new market entry
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strategy and provide some existing new training and development program to enhance efficiency
of production and profitability of the new business.
·P 4.3 Evaluation of SMART target for achievement of strategy
This is very essential for HSBC group to implementation of strategy according to the
SMART objective of the new market entry strategy. These objectives would assist the business
in terms of centering on the task and goals of the strategy and follow the standard as well. The
main strength of desired target is develop the stage of business to boost up the production and
sales in several areas of the firm. This type of methodology is needed for HSBC group to sustain
their position in the UK market and major modification in the current time. New market entry
conduct so many difficulties in the business so that HSBC group need to prepare their plan to
face all the barriers which comes in the business at their initial level. The SMART goals define
that, HSBC group can adopt some elements of the business needed to be covered such as. Goals
of HSBC business must be in form of, specific, meaning able, attainable, realistic and time
elements, in respect to achieving it in respective form.
CONCLUSION
From the above analysis, we have concluded that business strategy of HSBC group play a
vital role for growth and development in the market. This reports have covered areas which are
vision, mission, goals and core competencies of HSBC group. This investment has conducted
about to the strategic position of this business and carried out an environment audit as well.
Moreover, this report have covered its market entry strategy and strategy implementation into
the new market entry. Ultimately, we have evaluated the contribution of SMART targets to the
achievement of strategy implementation in HSBC business.
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