Comprehensive Strategy and Change Management Report: HSBC & Barclays

This report provides a detailed analysis of the strategic and change management approaches employed by two major multinational investment banks, HSBC and Barclays. It begins with an introduction to strategy analysis, followed by an overview of the two banks, including their history, core businesses, and organizational structures. The main body of the report delves into the application of various strategic models, such as Porter's Five Forces and the McKinsey 7-S model, to understand the competitive landscape and internal operations of HSBC and Barclays. Furthermore, the report examines change management theories, including Kotter's Change Management Model and Mintzberg’s Emergent approach to strategic change, to explain how these banks adapt to evolving market conditions and technological advancements. The report concludes with a discussion of strategic change and the risks involved in the banking sector. The analysis highlights how both banks leverage digital strategies, address customer needs, and navigate challenges to maintain their market positions. The report uses the selected models to examine how these two banks use them to achieve their goals, and how they adapt to the changing business environment.

The Theory behind
the Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategy analysis is mainly the conduct and the method through which various process
and aspects are being created in order to formulate various strategies that are important for all the
organisation. As for the growth of the company their should be maintain proper formulation and
approaches in the business(Barbosa, Romero and Cunha, 2019). Strategy is mainly the
identification of all the approaches and the decisions taken to frame out the work in a contextual
manner and with that to satisfy the organisational vision by re-framing the conducts being
necessary. This report will cover all the strategy and change management approaches of the
contemporary organisation and also the various models that helps to identify the strategies and
implementation with the role of key performance indicator in the company. The organisation
chosen for this report are HSBC Bank and Barclays which are Multinational investment banks
helps to maintain the funds and the investment of the organisation with various strategies.
MAIN BODY
HSBC is a well known British Multinational investment bank which was established on 3
March 1865, its Headquarter is in London UK. It was founded by Sir thomas Sutherland and
Mark tucker and Noel Quinn are the group chairman and the group chief executive. This bank
use to serve worldwide and provides the financial services organisation as it covers around 40
million customers. And has been designed in various business groups like commercial banking,
various investment banking and also the Global and the retail banking.
Barclays is a British investment bank which has a multinational incorporation and also
known as the financial services company, this has been headquartered in London, England and
was founded in 17 November 1690. Nigel Higgins and Jes Staley are the group chairman and
the group chief executive respectively. The Barclays has also organised various core businesses
that are the personal banking, health management, investment management and also the
corporate banking(Hao 2017). .
Strategy and change management, comprise of the method or the process through which
the organisation can maintain the changes in the company in a planned and the structured method
in order to achieve the goals. The managers tends to use various models so as to attain change in

the company and the varies changes ate being framed by the method and the new advancement
that is being required by the company in order to gain the growth and trust in the market. The
changes can be made in all the internal and the external process through which implementation
can be maintained.
In order to analyse all the approaches and the areas through which such works can be
framed there can be applied various theoretical approach that helps out in maintaining the
advancement in the company(Protalinskiy and et. al., 2018). As in all the industrial approach of
HSBC and Barclays the Porter's five forces can be applied as it follows the Competitive Rivalry
by analysing that HSBC and Barclays are rivals and they have to maintain various strategies in
order to frame out the work which emerge out with various goals and approaches, so they tend to
make the innovation in there facilities that are being provided to the customers. They have High
rivalry in the market. Supplier Power as this use to be one of the most important factor by
analysing all the areas in the company supplier plays and important role and tends to frame out
all the areas like various innovation and the digital enhancement helps out the company to grow
in various methods and make there supplier power high for both the banks in the market. Buyer
power this is mainly that what customers required and by keeping the requirements of the
customer at variably high for Barclays as it covers larger market and for HSBC it is moderate to
match there needs and try to frame all the facilities that pertains out and maintain there growth in
the various areas like contactless payments, digital strategies etc. Threat of substitution with the
emerging technology and changes there has been framed that a lot of changes are there by being
adapted so the substitute of any of the bank intermediaries is competitively high for both
Barclays and HSBC (Porter Five forces, 2020) Threat of new entry as there are various banks
emerged out in the recent time and they are trying to give various services so the threat is merely
high for both the HSBC and Barclays.
As both the HSBC and Barclays tries to maintain the competitive analysis for all the
strategy formation and maintaining the steps which helps them out to increase there market in
various companies. The porters five forces provides benefits like it helps to scan the macro
environment factors and also to develop the structure through which strategies can be developed
and scanned to be framed.
The HSBC being the global multinational bank use to attain numerous of customers daily
and for that in order to maintain the image and the focus of the market they implemented change

in there working and various processes such as earlier they were using the Traditional marketing
strategy and the outcome of which was that this was the general problem that they were not
being able to connect with various employees and the customers. So they had started an
emergent digital approach which helped them out to maintain all the digital changes in there
banking sectors. In a recent time Wunderman Thompson has launched a “We are not an Island”
digital campaign in order to maintain there work with the rapidly changing world.
Whereas, Barclays was earlier facing the issues regarding the encryption as this is one of
the leading bank and has attained number of customers data. While at the timer of COVID they
had made various transfers and the contactless ideas through which there banks serves there
customer without any problem. With that Barclays helped out to maintain the balance sheets of
any type of transaction of there clients. And has approached to make the positive impact on
economics and society(Ocvirk and Berg, 2018).
For the growth and the development of the organisation and to improve there
performance in various parts the McKinsey 7-S model is being used, it covers seven important
elements in context of HSBC and Barclays they are as follows:
Strategy it is the method through which the organisation tends to make a plan to be beat
there competitors for instance HSBC use the STP Strategy in order to make there services stand
differently and with that Barclays use the Distribution strategy which helps the customers to
access there bank details.
Structure It is the method through which the company can there by organize there teams
and there varies structures like HSBC frames out the Group structure and whereas Barclays
frame out all the two divisions structure with there execution services and also the international
areas(Bespoke, 2021).
System it is the method through which all the daily activities are being maintained like
for HSBC covers the trade finance transactions for controlling all the financial crimes and
Barclays covers the 4 core business elements as it is divided in personal, corporate, investment
and wealth banking.
Shared values implies the values and the ethic of the organisation that is being used
while working such as HSBC has the core value of doing the right thing with open different
ideas and also cultures by forming the conducts and Barclays value more to maintain the
environment and manage all the sustainable changes.

Style it is mainly the leadership style that is being adopted by the organisation in order to
gain the growth as both HSBC and Barclays adopts the Democratic leadership style which
implies that all the decision making process depends on the higher authorities.
Staff the employees working in the company as in instance for HSBC and Barclays there
has been carried a potential and the skilled staff which are highly trained to carry all the financial
aspects.
Skills this means the skills that area in the employees while working, as been seen that
the HSBC and the Barclays tries to maintain the specific and the growth by making there market
digital so they develop the skilled efficiency in there digital marketing and online transaction and
investments.
Kotter's Change management theory helps out to frame the necessary changes that can be
implied when the organisation tends to maintain the certain change in the company like the
increase urgency where the company and there employees need the necessary changes in the
organisation, guiding coalition through this step when the company implies to ask all the
necessary changes and the regions in which they can work and pertains out the important area by
calling all the team members to discuss about the need of change. Development of vision and
strategies when the change is being made then company focus on the vision that will be seen for
that change and implication. Then the other step will be taken as communicate for buy in which
says that all the organisation will make and utter various areas through which the obstacles will
there by be removed in the company and will be made as by the managers and they serve out to
communicate all employees about that change. Empower action the implementation and the
work will be practised as in order to make that work in proper manner. Accomplish short term
wins as in all the areas and management the further growth will there by be intended and the
goals will be achieved in the varies case the organisation tends to make the rewards and the goals
to the company achievable(Baylis, Booth Garnett, and Williams 2021). Build on the change
through this step all the changes that has been framed by vision and strategy by managers will be
implemented in the organisation. Make change stick this is the final step ion which all the
changes though made will be framed out in the company and make that adaptably.
HSBC in order to frame there strategic change in any new digital market has to follow
these steps and implement it. Barclays on the other hand in order to maintain the encryption and

the new technology for there bank accounts and fast technology use this step to maintain and
frame it out.
Strategic change is the step or the movement taken by the company in order to achieve the
certain goals and also to increase the competitive advantages for the organisation. This is mainly
being done in order to implement the present skills and work and through which all the methods
and the areas that helps out to analyse the working can be pertained in it. The strategy change is
adapted when the organisation implies the need of the technical and the customer approach for
the growth and advancement in the company.
Mintzberg’s model of Emergent approach to strategic change implies that all the changes
that has been taken place in order to maintain the growth and the set of actions through there
various behaviour and the consistent requirement of time will be implied in it. There has been
analysed that all the changes which are made in the organisation that also without certain any
proper planning can be made in it. This strategy covers out the set of actions, behaviour and time
without any implied learning methods(Sandberg, and Alvesson, 2021). The risk that is being
seen in all the banking sector is merely the implications and the basic areas and reasons through
which working can be adapted in order to maintain the emergent approaches HSBC tries to make
there employees being clear about the needs and the actions that re to be implemented whereas,
Barclays in order of being the democratic leadership implies the national and the international
approaches by making the digital platform more clear for the customers and also by adding on all
the encryption of the company.
As observed Lewin Change Management Model is an important aspect on all the
changes that an organisation can there by pertains out, it covers three important approaches they
are like the first stage is Unfreeze In this method the organisation is being prepared for adapting
the new change that is required for the organisation(Silin, Dvoryadkina and Antipin, 2018).
There has been framed that all the organisation should maintain and try to prepare all there
employees about the change which is being required in the company and all the approaches
which can be made so as to maintain the change. The second stage is Change This use to frame
the change that is being made for the organisation is being applied, there has been observed that
all the approaches and the ideas through which the working of the company can be increased will
be adapted in this as any change cannot be made just in a day so by the first stage of making the
amendments of certain Change and then applying it to various areas is being framed.

(RapidBI,2021)
The third step is Refreeze as when the new changes are being adapted and certain methods and
the adaptability have been made then the organisation tends to refreeze there new adaptability.
This stage helps to develop the confidence in the employees and with that to ensure all the
necessary areas like to maintain the organisational structure and to provide proper training and
support to the employees helps to maintain the growth of the company. This step helps the
employees and the organisation to internalize and institutionalize all the adaptability and the
changes needed in the company(Busch and Shrivastava, 2017). As HSBC is being carrying all
the important change in the Human resources areas and through which they try to make there
employees being working with the additional force and strategy that helps to help out all the
outgrown methods, whereas Barclays implies the innovation and advancement to maintain all the
online transactions and methods through which the growth can be pertains as so to frame the
necessary areas and make it adaptive for all the people being working under. So they try to make
various changes through all the Lewins model by maintaining the applicability of work.
In all the companies and the business organisation it is important that the succession of
business can be framed and maintained as for the growth of the organisation the most important
indicator that is being used in KPI which means Key Performance Indicator this method is being
used in order to analyse all the successful strategies that are used for the business as to maintain
the growth and the expansion of that organisation (Bandarian, 2018). There has an analysis in all
the areas through which various growth of the company can be measured as in accordance with
the advancement and the cultural areas. The KPI helps to give out the method through which
company gain the advancement and there has been stabilised a level on which the company tends
to work. there has been specialised that all such methods and the usage can there be figured out
by the various strategies.(Roe, 2019). HSBC and Barclays they are the most important banks
which helps out the companies to expand there growth by maintaining all the plans in succession
and in relation to KPI the organisation tends to check all the Average daily Footfall and also the
Client Retention Rate in order to get a complete knowledge about the banks growth as there has
been analysed that the banks try to maintain the growth by the company and there nature in all
the records by keeping the record of the employees being working in the company and with that
also the clients retention that in what manner the clients are being served and also being
addressed.

As there are various benefits of the KPI in the strategic change management there has
been analysed that through KPI all the increase percentage of changes are being implemented in
it with the various customers requirements, it helps to increase the success rate of the company
and with that it variably helps out to meet the clients quantifiable outcomes based on the
measures through which there goals and objectives can there by be measured(Warren 2017).
As there are various drawbacks that has been covered in KPI like it is at times hard to
quantify in all there measure of the key performance is quiet tough. With that the KPI is also a
bit expensive process and also the poor metrics of success in relation to the employee
engagement use to take place.
As in accord to HSBC they tried to maintained the various targets as there average target
foe every year use to be 40% and they had gained that in 2019. but as in 2020 due to COVID
there utter a huge loss to HSBC and there average target falls out at 35% although all the share
as due to there average daily footfall reached out at there target rates of 40% which is the actual
target of the company as they reached out to there benchmark(Silin and et. al., 2018).
For Barclays they has strong digital and cashless market with that all the facilities of
clients retention is being covered in it, there implies that the target they had set out earlier was
60% and in 2019-2020 they had attained the average same retention target as they have strong
connectivity and network in digital; market.
CONCLUSION
From this above report it is concluded that, strategy analysis helps out to maintain all the
formulation of the new advancement in the organisation through various models like Mckinskey
model of approach and kotters change management. It helps to develop the new innovation and
the technologies with the change in the market trends. Change management helps to make the
development as the Lewins model imparts the three steps through which a change can be applied.
Further more it is also analysed that HSBC and Barclays applies various factors for the risk

management and also in maintaining the risk that can affect the organisation, with that the
company try to check there succession through Key performance indicators.

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