Principle of Management
September 20, 2012
HSBC's origins and early history help to explain its values today. HSBC began in Hong Kong in 1865. Originally known as The Hong Kong and Shanghai Banking Corporation Limited, the bank developed from the early needs of traders along the China coast. According to HSBC, the founding principles of the bank derived from local ownership and management; from the start, the bank was in business to help strengthen business communities and aid local investment. HSBC went on to develop a strong presence not only in Asia, but also in Europe and America. Today, HSBC is headquartered in London, England. The company's four key businesses are Global Banking and Markets, Private Banking, Commercial Banking, and Personal Finance Services (Reference for Business, 2012). Despite careful planning, some HSBC divisions were not able to overcome severe economic pressure or other adverse conditions to achieve the intended results throughout their planned five year period. .
1. What are the arguments for and against HSBC managers making public their short-term and intermediate-term objectives, unit or division by division? The first step in the planning process is stating organizational objectives. Before any kind of planning can start, stating and outlining the organization’s objectives would have to be undertaken. The fundamental and most important purpose of planning is to help the organization reach its goals, so by stating organizational objectives managers will be continually reminded of the things that they have set out to do. Making these statements public, show the organization’s commitments to their goals. With the public’s eyes on the organization it could be, in some way, more motivated to fulfill their goals and live up to its objectives.
HSBC is an organization that operates across many countries and different cultures, most of which have different business...