Detailed PESTLE Analysis Report: HSBC Bank's External Environment

This report provides a PESTLE analysis of HSBC, a multinational bank and financial service organization. The introduction provides a brief overview of HSBC's origin and global presence. The main body of the report delves into the external environment, emphasizing the PESTLE model. Each factor – political, economic, social, technological, environmental, and legal – is examined in detail, identifying opportunities and threats for HSBC. The political environment discusses regulations and policies, the economic analysis covers investment and market conditions, and the social analysis considers work-life balance. The technological section highlights internet and expansion opportunities. Environmental factors focus on sustainability and carbon emissions, while legal factors address rules and regulations. The conclusion summarizes the key findings, emphasizing the importance of adapting to industry trends and market perspectives using the PESTLE model. References include books and journals that support the analysis.

PESTLE Analysis

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
External environment.............................................................................................................3
PESTLE analysis....................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
External environment states outside the control and management of a company and it
undertake physical, social, legal and environment conditions of a country. Moreover, this report
is based on HSBC plc it is a British multi-national bank and financial service organisation and it
is one of the 6th largest bank among all over the world. HSBC origin states from Hong
established in British Hong Kong and currently it has around 3,900 offices in the 65 countries.
This reports highlights on PESTLE model for performing work successfully in the upcoming
future by analysing key driver of change (Aghazadeh, 2016).
MAIN BODY
External environment
The term external environment is collected of all outside factor that impact as well as
influence on operations and functions of organisation. HSBC management and business act to
manage and generate their operations according to PESTLE model. It leads organisation to
formulate strategy that aids for accomplishing opportunity with reducing the number of threats.
PESTLE factor in context of HSBC is discussed as below:
PESTLE analysis
 Political environment- HSBC banking is sheltered as per the regulations, policies and
strategy that are formulated by government. In present scenario, organisation performs work
with policies to accomplish results as per business operations.
Opportunity- Political stability offer opportunity to perform all work according to decided
locations for protecting public interest in organisation. HSBC helps in improving business
area by performing work with improving goodwill in business.
Threat- Rules and regulations formulated by government are too complex so it is difficult
for management to manage work as per company.
 Economic analysis- It is one of the world’s leading and completive organisation in terms of
managing finance and banking (Gireeshkumar and et. al., 2020). HSBC establish them as a
secure and successful organisation to meet with many all parts of world.
Opportunity- Investment and savings are an important part which leads to perform work as
per company resources to gain better position in market.

Threat- It is essential for management to perform and complete all work as per policy but
market conditions are uncertain.
 Social analysis- HSBC is impacted by situation and circumstances which is related with
society. It is also used by management to analyse resources as per society perspective to
secure better position in market.
Opportunity- Work life balance is an important perspective that aids to perform all
operations in society according to society rules and regulations (Hamilton and Webster,
2018).
Threat- Dynamic buying behaviour patter is the major threat related with society aspect to
understand changes in society.
 Technological factor- The current situations related with information technology. Internet is
major perspective for HSBC and it aids to perform all work according to global market
conditions.
Opportunity- International expansion is an effective opportunity and it lead by organisation
through use of technology.
Threat- High cost of technology is a complex factor and it impact on business that leads in
increase threat for organisation.
 Environmental factor- HSBC goals is to minimise the carbon emission from workplace by
improving work methods of employees and technology.
Opportunity- Sustainability engagement work as an effective technique and it leads
organisation to obtain better position in market (Mahmood, 2018).
Threat- Programmes and eco-efficiency create challenges to manage all task according to
environment conditions.
 Legal factor- Each and every business governed by rules and regulations so HSBC
organisation is linked with rules of company.
Opportunity- Payment protection due to strict rules and regulations leads management to
complete all task at different geographical areas.
Threat- Intellectual property laws are not effective for management and this leads to face
different challenges among business.

CONCLUSION
In the last, with analyse of above report it is concluded by management that change is a
complex factor for organisation and it generates challenges for organisation and it impacts on
business activities and action. With use of PESTLE model opportunity and threats related with
organisation are included to manage work according to industry perspective and market trends.

REFERENCES
Books and Journals
Aghazadeh, H., 2016. Sphere of Marketology: Spectrum, Scope, Nature, Stakeholders, Features,
and Functions. In Principles of Marketology, Volume 1 (pp. 93-135). Palgrave
Macmillan, New York.
Gireeshkumar, T.R and et. al., 2020. Montmorillonite and phosphorus enrichment in sediments
as the causative factor for mud bank formation along the southwest coast of
India. Regional Studies in Marine Science, p.101517.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Mahmood, A.M., 2018. Assessing the Influence of External Environment Factors on Higher
Education Sector through Means-end Theory of Decision Making: The Case of
Bahrain (Doctoral dissertation, Brunel University London).