HSBC's Corporate and Business Objectives: Strategic Marketing Report

This report provides a comprehensive analysis of HSBC's strategic marketing planning, focusing on its corporate and business objectives. It begins with an introduction to strategic marketing planning, defining its role in setting company goals and objectives. The report then delves into corporate and...Read More

STRATEGIC MARKETING
PLANNING

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Corporate strategy...................................................................................................................................4
Business strategy.....................................................................................................................................4
History of HSBC Company.....................................................................................................................4
Defining HSBC’s corporate and business objectives and providing critical evaluation...........................5
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

INTRODUCTION
Strategic marketing planning are related to setting the goals and objective of the company by
analyzing the internal and external factors planning, and tracking the progress of the business.
The chosen firm of the report is HSBC Company that is situated in London that serves various
financial services that are related to retail, investments, private, corporate banking etc. The report
will include that definition of business and corporate strategy. Further it will also include the
history of HSBC Company. Case study will provide HSBC’s objectives along with evaluation on
the basis of Ansoff model.
MAIN BODY
Corporate strategy
It is the process that is used by the company to define it long term vision that is made by them to
motivate the employees to implement proper actions that are related to the customer satisfaction
and by creating the corporate value (David, David and David, 2017). This strategy also requires
the continuous process that result in engaging their customers to keep the trust on the company
by increasing its equity. For example- STP is a corporate strategy that focuses on segmenting,
targeting and positioning. It is a model which serves communication channel to company for
delivering useful message to its customer. This is mainly utilized for getting connected with
desire customers through which firm can generate profits and attain other organizational
objectives. HSBC can use this process in three steps such as segmenting market, targeting type
of best customers and positioning firm’s offering to clients.
Business strategy
These are the strategy which is related to describing the long term business planning. Mainly this
strategy is used by the companies to achieve the objectives that are set out by the organizations
(Lida, 2020.). The marketing strategies are of three types that are differentiation, cost leadership
and focus. For instance – Blue Ocean strategy is most suitable example for the company. It
allows firm to pursuit uniqueness and less expense in finding new market for product, making
competition indefectible, capturing fresh demand. This concentrates on aligning all elements of
organization in getting differentiated product. The biggest believe of this plan is to go beyond
market and industry boundaries to find better opportunities.
History of HSBC Company
It is the multinational financial and investment holding company which has its headquarters in
London UK. The company is also the largest bank of Europe (McCamley and Gilmore, 2018).

The full form of HSBC is the hongkong and Shanghai baking corporation that have around 3900
offices in 65 countries across the world.
It has total asset of US $2.715 trillion in august 2020. The offices of the company are suited in
Europe, south & North America, Asia and Africa. The position of the company is sixth largest
public company with the corporate measures by the Forbes magazine. The fonder of HSBC is Sir
Thomas Sutherland on 3rd march 186. In 1886 company was finally recognized as HSBC by the
legislative council of the Hong Kong (Stone and et.al., 2020). Around 51% of shares are picked
up by HSBC which was of marine midland bank later in 1987 it took hid gull ownership and was
renamed in 1929 made by following amendments of its governing ordinance. The company have
started expanding its business at continental Europe and in 2000 it took the place of large French
bank for £6.6 billion with the acquit ion of credit commercial defrance. In the year 2001 the
company has brought its two banks that are named as insolvent and demirbank Turkish bank. In
the year 2002 bank have expanded their business in United States under John bond who was the
chairman of the company and spend around £9billion to gain the position by making household
finance corporation who was the subprime lender and credit card issuer of United Kingdom
(History of HSBC, 2021). In 2021 HBSC has made an announcement that they will close around
82 branches across the world which will result I cutting 340 jobs. The company is also looking
for expanding their business at Middle East by keeping their full focus on Asian operations.
Company is also planning to sell out its remaining American branches till February 2021.
Defining HSBC’s corporate and business objectives and providing critical evaluation
There are various objectives of the company that it want to achieve in effective and efficient
manner. The following are smart objectives of HSBC company:
 Increasing revenue of company by 20% at the end of year and capturing 40% more leads
from in times of festivals

 Conquering 8% of market share through marketing promotions and partnership with
distributors within 2 years
 Improving customer relationship management by 32% with help of networking,
surveying, through providing training to employees for understand needs before
beginning the new year.
 Establishing training and development plans for personal growth of employees so that it
can minimize at least 10% workforce turnover in 6 months.
In the context of these objectives Ansoff model will be suitable for HSBC. With help of this
model company can obtain its business and corporate objectives in effectual pattern. It is a tool
that provides assistance to firm to analyze the best strategy for growth. In this metric there are
four strategies which aid company to evaluate risk associated with each approach. These are
follows that HSBC can use:
Market penetration:
It is basically used by firm to increase market share. In this approach company sets lower
prices for products so that customers can be attracted and retained for longer duration. it is
usually adopted by those business that have initially joined the industry and wants to achieve its
set objectives (Loredana, 2017). It is calculated by amount of sales volume compared to targeted
customers’ market . with respect to this, it is broken down into factors that must be associated
with positive market conditions. HSBC can utilize market penetration strategy to gain space in
market. It will allow company to attract those customers who are willing to buy products to
achieve competitive advantages. There are some drawbacks also that HSBC can face such as
poor company image, saturated market, lowering industry prices, etc.
Product Development:
This is one of the part of Ansoff strategy which focuses on developing new product to
serve existing clients market . For this purpose company spends on research an development so
that changing taste and preferences of customers are known to firm (Kiss and Barr, 2017). Many
organization wants to make their product range wide so they adopt development approach. It is
useful for companies which have objectives of longer sustainability in industry. With help of it
can attain higher profitability, customer satisfaction, good reputation, decreased employees
turnover , etc. HSBC can get assistance by this approach as its targeted customers are those who
appreciate innovations and creativity (Hosseini, Soltani and Mehdizadeh, 2018). For internal
management as well it is effective. Risk that company may face includes completion, extra cost,
etc.
Market Development

Entering new market by offering existing products is the plan of this approach. It is
widely used by large multinational companies that try to attain success in international market
after winning domestic industry (What is market development strategy, 2020). This method is
also considered as growth strategy because it identifies and develops new place of selling current
products. HSBC can utilize this type of plan to get into new parts of markets to increase revenue
of organization. The different challenges for opting this strategy will e capital requirement,
enhancing marketing efforts, building new locations, etc.
Diversification
It refers to making unlike elements that are completely different for company. It aims at
return maximization by capitalizing resources in different areas of business (Trang, 2018). This
is mostly adopted by organization that wants to minimize risk by investing in separate
components. With help of this, enterprise can attain its long term financial objectives by
reducing possibilities of loss (Wilson, Perepelkin and Zhang, 2020). HSBC may take this
strategy in practice as it is complex in structure and its desire objectives can be reached through
this approach. The company may face issues like declination of quality, mismanagement, etc.
It can be analyzed that effective approach for company would be diversification and
product development of Ansoff model. It will help company to achieve its all objectives in
beneficial manner.
CONCLUSION
From the above report it can be concluded that corporate strategies define long term over all
goals and business strategy describes a particular unit’s plan of action, objectives, etc.
HSBC is multinational financial company that has various objectives. In addition to this, the
present report has also used Ansoff Model which includes four approaches such as market
penetration and product development, diversification, market growth. HSBC can use
diversification and product development approach to meet its organizational objectives.

REFERENCES
Books and journals
David, M. E., David, F. R. and David, F. R., 2017. The quantitative strategic planning matrix: a
new marketing tool. Journal of strategic Marketing. 25(4). pp.342-352.
Lida, M. P., 2020. A Strategic Marketing Intelligence Platform. Operations Management
Research-ISSN: 1936-9735. 12(4). pp.12-30.
McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: a
conceptual model and empirical findings from two emerging heritage regions. Journal of
Strategic Marketing. 26(2). pp.156-173.
Stone, M., and et.al., 2020. Artificial intelligence (AI) in strategic marketing decision-making: a
research agenda. The Bottom Line.
Loredana, E. M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Palazzo, M. and Ferri, M. A., 2020. Business Areas That Can Benefit of Dual Marketing
Practices: Presentation of Case Studies. In Beyond Multi-channel Marketing. Emerald Publishing
Limited.
Hosseini, A. S., Soltani, S. and Mehdizadeh, M., 2018. Competitive advantage and its impact on
new product development strategy (Case study: Toos Nirro technical firm). Journal of Open
Innovation: Technology, Market, and Complexity. 4(2). p.17.
Kiss, A. N. and Barr, P. S., 2017. New product development strategy implementation duration
and new venture performance: A contingency-based perspective. Journal of Management. 43(4).
pp.1185-1210.
Trang, N. T. X., 2018. Conglomerate Diversification Strategy: good or bad?–Evidence from
Vietnam. Marketing & Menedzsment. 52(3-4). pp.101-112.
Wilson, G. A., Perepelkin, J. and Zhang, D. D., 2020. The roles of diversification and
specialization strategies in the entrepreneurial orientation and performance relationship. Journal
of Small Business & Entrepreneurship. 32(5). pp.457-476.
Online
History of HSBC. 2021. Online] Available through: < https://www.hsbc.com/who-we-are/our-
history/history-timeline >

What is market development strategy? 2020. [Online] Available through: <
https://www.lightercapital.com/blog/what-is-market-development-strategy-definition-examples/>