Strategic Management Report: HSBC Bank's Strategies and Analysis

This report provides a comprehensive analysis of HSBC's strategic management, focusing on its market position, strategic objectives, and competitive advantages. It begins with an introduction to strategic management and then provides an overview of HSBC, including its strengths, weaknesses, and market share. The report delves into HSBC's strategic plan, outlining its mission, vision, and strategic objectives, particularly regarding the improvement of online services. It discusses the application of the Ansoff matrix and Porter's generic model to develop and evaluate HSBC's strategies. The report also includes an action plan with budget allocation and discusses the importance of controlling and monitoring. Finally, it reflects on the learning experiences gained from studying strategic management and its practical applications in a business context. The report concludes by summarizing the key findings and emphasizing the importance of strategic planning for organizational success.

Strategic Management

Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Part A (2)..........................................................................................................................................4
Part C...............................................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Over the years, there are many researchers, economists and other individuals have
defined strategic management in different ways but, in simple words it can be defined as
consistent and strategic planning of business operations so that the company's priorities and
objectives can be accomplished effectively by addressing evolving business conditions (Teece,
2019). Strategic plan allows a company to devise plans such that it is possible to achieve a
strategic advantage that will ultimately improve its profitability.
Including this, report will be considering one of the famous British multinational
investment bank named as HSBC (6th largest bank as of 2020 in all over the world), which
delivers different banking and financial services to potential customers (clients and account
holders) among different nations. In this article, formulation of the strategic plan, the business's
results, its strategic abilities, position in the market and so on. Along with this, report will then
be addressed just so the business can achieve a competitive edge. Lastly, a reflection is also
going to be given in relation with online learning activities that would help in self development
of an individual while performing different jobs and tasks throughout the career.
Part A
The organisation which has been taken into consideration in this report is a multinational
investment bank named as HSBC (British Bank), where it provides budgetary administrations
and considered to be the sixth biggest bank delivering its services to clients in all over the world
with around 3,900 workplaces in 65 nations. Including this, if it is talked about the different
strengths of this investment bank of Britain then in order to sustain within the international
market, it will be necessary for them to make a few alterations in them and develop much
stronger brand image. Additionally, HSBC already have skilled workforce that aid in getting
developments within the items and administrations of organization with the goal that client’s
differing needs can be successfully satisfied. HSBC additionally gives assorted portfolio and is
available in various business sectors which diminish the danger of budgetary issue (Altukhova
and Semko, 2018).
So as to deliberately develop in market it is significant that HSBC focus around its
weaknesses and turn them into company’s strength which can help in expanding its intensity like
catching developing business sectors so its piece of the overall industry can increment,

broadening its arrangement of item so changing requests of clients can be viably satisfied and so
forth. The organization can effectively look into giving strong web banking administrations so
consumer loyalty can be expanded alongside improving client experience. It can likewise build
the arrangement of its items so a scope of requests of various clients can be successfully met
which can help in expanding its client base in market.
Based on the information given, HSBC has market share of approximately 7.5% within
United Kingdom’s financial market. It is additionally the biggest bank in UK with complete
resources of US$2.715 trillion out of 2020. With the assistance of improving its web based
financial administrations the organization can additionally expand its intensity in market
alongside improving the capacity of organization in meeting various prerequisites of its clients. It
will likewise help the organization in expanding the client base of organization with the goal that
its loaning capacity can increment (Bergh and et. al., 2017). Away with this, it has been found
that value chain is connected with all the exercises which are performed by a business so wanted
items and administrations can be given to their clients. It is significant that HSBC recognizes all
the means in its worth chain which can help it in distinguishing the regions where upgrades can
be made so it can increase a competitive edge within financial market and give unique and
economic financial administrations to their client. This can help in improving the flexibly chain
the board of organization so high client experience can be made. So as to successfully give
wanted items or administrations to its clients, HSBC can improve its internet banking
administrations so quick administrations can be made accessible to its clients during the time
every minute of every day days which will improve client encounter and can also be helpful for
HSBC in getting to bank a leading position within the market.
Part A (2)
Strategic plan is developed to improve HSBC’s online services in order to become the
leader within international financial and banking sector. This particular strategic plan is
discussed underneath:
Mission: To give financial administrations for clients at best which can help in conveying
the message to clients in all over the world that company values them?
Vision: To turn into world's extraordinary expert financial market by focusing on their
experiences and ways of thinking with the goal that their objectives can be accomplished.
Strategic Objectives:

 To improve the online administrations of HSBC so that loyalty of potential clients can be
expanded by 20% within 2 financial years.
 To improve the client base of organization by 13% in next 1.5 years.
Strategies that can be used:
1) Ansoff matrix:
So as to proficiently develop in the market, HSBC can effectively take into consideration
of Ansoff matrix, which will help in taking right decisions in correct time. In present context,
Ansoff Martix’s strategies are presented underneath: Market penetration: It is the least hazardous development procedure which can help
HSBC in expanding its piece of the overall industry and its development in market. By
giving credits at low rates, HSBC can reach to an enormous number of clients in the
market (Simandan, 2019). Market development: This would deliver the assistance to the organization in picking up
economies of scale by coming to in different business sectors alongside expanding the
globalization of organization so a worldwide brand picture can be made in market. HSBC
can go into developing business sectors in order to expand its market arrive at which can
help it in expanding its gainfulness. Product development: HSBC can utilize this procedure by improving its items like
creation improvement in web based financial administrations with the goal that separated
administrations can be given to their clients which can help in improving consumer
loyalty.
 Differentiation: HSBC can utilize this system by growing in developing business sector
and offering a differing arrangement of administrations alongside internet banking
administrations.
HSBC can take into consideration of product development strategy while expanding business
through improving its web based financial administrations so its clients can be fulfilled through
productive administrations which can help additionally help in expanding client base of this
investment bank, which is dealing in international market (Peppard and Ward, 2016).
2) Porter' generic model: Cost leadership: In this technique the organization creates its items or administrations at
most minimal cost which helps it in offering the financial administrations at least cost in

market with the goal that clients can be pulled in n an effective way. This procedure can
be utilized by HSBC through making offers in relation with creditability at the most
minimal loan fee which can help it in drawing in more number of clients in contrast with
its rivals so high gainfulness can be accomplished by organization. Cost focus: It is another crucial procedure where organization attempts to increase a cost
advantage in a chose specialty market so it can turn into a cost chief in that specific
market. This methodology enables an organization in getting serious in a specific market
with the goal that high benefits to can be picked up in the international financial. Differentiation leadership: In this methodology an organization focus on the
requirements of huge market so an upper hand can be accomplished in market by offering
exceptionally separated items or administrations to the clients. With the assistance of this
procedure the changing needs and needs of clients can be satisfied by offering them with
inventive items or administrations so organization can turn out to be exceptionally strong
enough in financial sector (Barca, 2017).
 Differentiation focus: Considering this type of technique, an organization attempts to
consider its focus over different necessities of clients with the goal that it can turn out to
be profoundly successful in addressing the requirements of the objective market
fragment. This methodology offer chance to organization to offer exceptionally separated
items when contrasted with their rivals within the international financial market.
In present context, after looking at all the strategies and after a deep analysis, it can be
said that HSBC can take into consideration of differentiation leadership strategy including
improving its web based financial administrations with the goal that the necessities and needs of
clients can be met in a compelling way (Denning, 2017). Away with this, it can also be said that
this would improve the different ways through which HSBC’s clients lead their financial
exercises subsequently making the cycle simple and quick so high experience can be given to
potential account holders (clients).
Action Plan:
Budget allocation: A well maintained budget may help a company like HSBC in
improving the adequacy of wanted outcomes that are to be accomplished. So as to execute the
strategy of improving web based financial administrations in HSBC following budgeted plan can
be productively utilized by organization:

Particulars Amount (£)
Human resources 2000
Marketing 10,000
Technological advancements (Use of
Internet)
2,00,500
Routers and other IT materials 40,500
Controlling and monitoring: This is also considered to be another important area of a
strategic plan, which plays a significant role because controlling along with monitoring may be
helpful for HSBC to make alterations whenever the situations takes place which may lead
company to face difficulties in pulling out favourable outcomes (Drnevich Mahoney and
Schendel, 2020). In present context, utilization of KPI apparatuses or benchmarking may help
HSBC to attain the desired goals through effectively upgrading the overall plan from time to
time.
Part C
When I started getting knowledge about the module, I have built up an understanding
related with compelling usage of strategic management plan within a company. Including this, I
have also gained the knowledge about different determinations are made by an organization to
accomplish its ideal objectives. I have additionally evolved information with respect to how
business condition is to be investigated so its position within market can be improved. I have
also gathered the knowledge that it is essential to recognize the different range of strengths of an
organization in market so that these can be utilized in procuring the open doors accessible for
extension in market so its benefit can be expanded (Konovalova and et. al., 2018). Further, I
additionally built up a comprehension with respect to utilization of different methods along with
the tools considering various strategies that could help organizations in developing themselves
within the market and also may become able to discover growing areas in the market.
This would help them in boosting both productivity and profitability in much effective
and efficient manner. Away with this, when I will finish with this module, I can say that I might
become able to consider different strategies along with theories and apply my insight while
working in a business firm in future. This would help me in making recommendations and
suggestions to the company about different key approaches to organization with the goal that it

can develop and grow in market. On the other hand, this module has helped me in getting
profoundly fit for applying speculations and systems essentially with the goal that organizations
can apply them and addition an upper hand in market (Bondarenko and et. al., 2017).
Conclusion
Considering the information, which has been presented above it is summarised that when
an organisation looks forward to improve its presence within the market (profit maximisation)
strategic management plan can be helpful to take right decisions in correct time. Therefore, for
an organisation which is looking forward to grow it is needed to look among significant
strengths, improvement zones and position as then only an effective strategic plan can be
developed which would be helpful for association to grow effectively within the market.

References
Books and Journals
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers, 53(1), pp.1-43.
Altukhova, L.A. and Semko, I.A., 2018. Strategic management of competitive agribusiness
organizations model. Международный журнал перспективных исследований, 8(2).
Bergh, D.D., Sharp, B.M., Aguinis, H. and Li, M., 2017. Is there a credibility crisis in strategic
management research? Evidence on the reproducibility of study findings. Strategic
Organization, 15(3), pp.423-436.
Simandan, D., 2019. Iterative lagged asymmetric responses in strategic management and long-
range planning. Time & Society, 28(4), pp.1363-1381.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Barca, M., 2017. Economic foundations of strategic management. Routledge.
Denning, S., 2017. The next frontier for Agile: strategic management. Strategy & Leadership.
Drnevich, P.L., Mahoney, J.T. and Schendel, D., 2020. Has strategic management research lost
its way. Strategic Management Review, 1(1), pp.1119-1127.
Konovalova, E.E., Yudina, E.V., Bushueva, I.V., Uhina, T.V. and Lebedev, K.A.E., 2018.
Forming approaches to strategic management and development of tourism and
hospitality industry in the regions. Journal of Environmental Management &
Tourism, 9(2 (26)), pp.241-247.
Bondarenko, T.G., Isaeva, E.A., Orekhov, S.A. and Soltakhanov, A.U., 2017. Optimization of
the company strategic management system in the context of economic instability.