To what extent does HSBC manage its merger banks overseas successfully?
This paper looks at international management which plays a critical factor in international enterprises in the business field. The aim of this study is to show a case of an international group, HSBC, and to what extent it runs its merger banks overseas successfully while other global bank groups are struggling in the recession. This paper uses secondary research only. The findings show that HSBC manages its merger banks overseas with various actions which lead it to be one of the biggest bank groups in the world. It can therefore be seen that HSBC employs successful strategies and remains in a positive growth even in a recession. This is important because it shows a good case among business models.
Some companies are established in a localized environment in order to satisfy local markets, whereas some companies are created in a globalized environment in order to satisfy global markets (Menorca, Fernandez-Ortiz and Emerterio, 2012). For these companies who are created in a globalized environment, they manage using a variety of internationalization strategies and modes of growth. For decades, international operations have become increasingly important in most global companies. Good management overseas lead to provide good products and services. Good management also contribute to cost control. One of the most significant current discussions in international enterprises is how to efficiently manage their worldwide branches in order to provide their best services for customers. Their factories need critical considerations about production and delivery their best products for customers as well.
International management is a complex subject. There are different cultures, people and languages involved. Much research defines a variety of international management modes. However, is there any golden mode for international management? HSBC is one of the biggest global bank groups in the world. It seemingly runs its business very well. So, HSBC is highly likely to be a good case to study. Examining a case study could serve to illustrate theories and practices, which may be useful. HSBC is not only expanding its own branches overseas but also merging other worldwide bank groups in order to extend its global operations (Economist, 2011). Is merger a worthy management strategy? Is it an easy achievement? The aim of this paper is to examine HSBC, to what extent manage its merger banks overseas successfully.
This paper has been divided into four parts. Firstly, this paper examines some research related to international management. This section has been divided into two subsections. First subsection is management strategies including two examples, diversification and strategic flexibility. The second subsection is management operations including two clever examples and operation flexibility. Secondly, the case study is discussed and the finding is presented. This section has been divided into five subsections, efficient integration, some examples of expansion, sustainable growth and summary. Finally, conclusion is offered.
2. Literature review
This review will consist of two main parts. First, three perceptions of management strategies are discussed. Second, some practical operations of management are described. Finally, a summary is given and it is explained why the following research is needed.
2.2 Management strategies
2.2.1 Formulation and implementation
A strategy is when a company’s manager uses a set of actions to compete with their rivals. Hill and Jones (2008, p.3) observe good ‘strategic leadership’ is selection of ‘strategy formulation’ and effective implementation. This leads a company to a superior performance relative to its competitors. Paraphrasing the well-known saying that ‘success is 10% inspiration and 90% perspiration’, in the strategic management arena Hill and Jones (ibid,...
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