Hsbc- Strategy Analysis

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  • Topic: HSBC, The Hongkong and Shanghai Banking Corporation, Bank
  • Pages : 10 (3273 words )
  • Download(s) : 403
  • Published : December 27, 2011
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2010
MASTERS ENTRY PROGRAMME
MODULE-THE BUSINESS ENVIRONMENT-MEP2
CHANGING BUSINESS ENVIRONMENT OF MULTI NATIONAL COMPANIES

TABLE OF CONTENTS

1.Introduction………………………………………….3 2.Executive Summary…………………………………3 3.Business environment……………………………….4 4.Macro Economic Scenario………………………….5
5.A Brief History………………………………………6 6.The Company Environment………………………..6
7.PEST Analysis……………………………………….6 7.1.Political Factors………………………………….7 7.2.Economic factors………………………………...7 7.3.Social factors……………………………………..8 7.4.Technological Factors…………………………..11 8.Challenges ahead…………………………………...12 9.Suggestions………………………………………….13 10.Conclusion…………………………………….14

11.References…………………………………….15

Introduction:
This study is an attempt to make a bird’s view of the global strategies of HSBC over last five years and analyze them in the view of the current global financial scenario. This study lays a special emphasis on the emerging trends and opportunities in the emerging economies and tries to analyze the region specific strategies to serve these markets effectively and thus expanding the overall market base of the company. I.Executive summary

HSBC holdings, one of the world’s oldest financial service conglomerates has been in the lime light in the recent past, especially among the researchers of economics, owing to its consistency of performance in times of global financial meltdown. Its consistency in performance owes a lot to the strong fundamentals it has maintained over more than one and a half century and the quickness in adapting to the changing global financial environment. The group had of course been part of the subprime band wagon of the Western markets, and suffered owing to this in terms of accumulated loss of asset and loans; but its investment in technology and sustainable practice across the globe paid off the time of turbulence. Now the group is all poised to expand itself into the deeps of larger markets and its recent acquisition of the Indian operations of RBC (Economic Times, Mumbai Edition, May 12, 2010) stands testimonial to this. This study tries to make a quick introspection into the strategic responses of the company to the Political, Economic, Social and Technological factors which affected the group in the recent past. II.Literature Review

The literature which was referred as part of this study has revealed the basis details of the company. Along with this, concepts of business environment and analysis of strategy were also referred.

1.Business environment:
Business environment is a set of political, economic, social and technological (PEST) forces that are largely outside the control and influence of a business, and that can potentially have both a positive and a negative impact on the business. Types of business Environments:

The types of business environments can be Internal or External. The external environment can further be classified into Task and Micro/general environment. Internal Environment contains Owner of Business/Share holders, Managing Director, Non Managers/Employees, Customers, Infrastructure of Business Organization & culture of the organization. The External environment consists of Competitors, Consumers, Producers of substitute products/services and prospective entrants in the Business. Macro/General Environment is further divided as Political &Legal, Economical, Social & Cultural, Technological, Natural/Ecological, Demographic, Global environmental factors. 2.PEST Analysis:

PEST analysis is a scan of the external macro-environment in which a firm operates. This is expressed in terms of the following factors: •Political
Economic
Social
Technological
The acronym PEST is used to describe a framework for the analysis of these macro environmental factors. 3. SWOT Analysis.
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified...
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