Analyzing HSBC's Business Environment: A Comprehensive PESTLE Report

This report presents a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of HSBC Bank, a UK-based multinational bank. The analysis examines how various external factors influence HSBC's operations across different countries. Political factors, including government policies and trade restrictions, are discussed in the context of HSBC's global presence. Economic factors, such as economic growth and exchange rates, and their impact on HSBC's profitability are also analyzed. The report further explores social trends, technological advancements, legal frameworks, and environmental considerations relevant to HSBC's business strategies. Positive and negative impacts of each factor are highlighted, providing a comprehensive overview of the external environment affecting HSBC's performance and strategic decisions. The conclusion emphasizes the importance of PESTLE analysis for identifying factors influencing business and market growth.

Global Business Environment

Table of Contents
Introduction .....................................................................................................................................3
MAIN BODY...................................................................................................................................3
Pestle analysis in relation of HSBC bank with various factor has been done as follow............3
Conclusion.......................................................................................................................................5
References .......................................................................................................................................5

INTRODUCTION
PESTLE analysis is a process by which analysing the external factors that affect to an
organisation. Pestle analysis is important for understand the external factor those are externally
affects the business environment. This analysis helps to improve their business strategies in order
to enhance the productivity. It enhance the profitability of an organisation. Pestle analysis is done
in the context of HSBC. HSBC is a UK based company. HSBC is a british multinational bank.
HSBC bank was 6th largest bank in world.
MAIN BODY
Pestle analysis in relation of HSBC bank with various factor has been done as follow
Political Factor
political factor determine the policies of government. That influence the economy of an
organisation and industry. In this policy taxes bureaucracy, government policies, trade restriction
are included. These factors are greatly influence the business. Hsbc bank is operates in China
USA Europe with different laws, regulation and policies. The government policies affects their
financial system. HSBC bank work with these government laws and effectively operate their
business.(Nandonde, 2019).
 Positive – hsbc bank operates in many countries with different laws and policies. In some
countries that is helpful in working effectively.
 Negative – every country have a different rule or laws that are bound to be followed by
all if they are not follow this they can face the problems.
Economic Factor
in this factor various elements are included like economic growth, unemployment rate,
exchange rate, income of consumer etc. economic factor directly affect the profit of
company and market relation. The hsbc banks growth is depend on the stability of
economic factors and foreign exchange rate. The performance is increase due to the
global and commercial banking rules.(Nandonde, 2019) .
 Positive – it will help in increasing the profit or revenue for bank capital.
 Negative – if economic growth is not sustainable then the bank will collapse and decrease
the share value of bank.
Social Factor

in this factor they makes the strategies on the basis of social factors. This factor is
include the social trend, purchasing power of customer, culture etc. HSBC bank follow
the social trends. Because at present time the people are more investing in mutual funds.
 Positive – the hsbc follow the social factor like population, purchasing power of
consumer for expand their business.
 Negative – the social frauds are increases that decrease the trust of customer.
Technological Factor
These factors are important in dealing with customers. It helps in protect the website or
application from cyber attacks. It is a global bank that is using latest technology.
 Positive – when technological factors are strong there is less chances of fraud or hacking.
 Negative – the technological factors are not strong there more chances of cyber attacks.
Legal Factor
There is many factors in legal factor like trademark labour law license permit etc. hsbc
also follows these laws and factors . (Irawanto, 2017).
 Positive – hsbc follow the legal factor these are create trust in customer.
 Negative – when it is not follow by company it causing mislead to customer for
walk out from them.
Environmental Factor
in this factor the environment related element are included like ecological system,
climate change or whether. Hsbc follows these factor and reduce the carbon
consumption and make waste product management. (Gupta, et. al. 2019).
 Positive – it effects positively because of these factor they reduce the carbon
consumption.
 Negative - when the company not follow this the expenses are increases.
CONCLUSION
Pestle analysis is necessary for an organisation to identify the factors which affects the
business. Pestle analysis is essential for economic growth or market growth by external factor.

REFRENCES
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence.38(4). pp.54-61.
Локтионова, О.С. et. al. 2018. NECESSITY OF PESTLE ANALYSIS WHEN ENTERING
THE INTERNATIONAL MARKET. In СТАНОВЛЕНИЕ И РАЗВИТИЕ НОВОЙ
ПАРАДИГМЫ ИННОВАЦИОННОЙ НАУКИ В УСЛОВИЯХ СОВРЕМЕННОГО
ОБЩЕСТВА.(pp. 100-103).
Irawanto, D.W., 2017, May. Indonesia Human Resource Management Practices: Cultural
Dimension and PESTLE Analysis. In ,Conference Proceedings International
Conference on Social Science and Management ICSSAM.(pp. 574-590).
Gupta, A., et. al. 2019. British Airways-A SWOT and PESTLE Analysis-The impact of Europe
2020 policy. NOLEGEIN-Journal of Corporate & Business Laws. pp.1-11.