Pest Analysis - Hsbc Holding Plc
A PEST Analysis Report of HSBC
Introduction
HSBC holding plc is a global banking and financial services company headquartered in London, United Kingdom. The business of HSBC includes personal financial services (retail banking), commercial banking, global banking and markets (investment banking), and private banking. HSBC holding was founded in 1991 by the Hongkong and Shanghai Banking Corporation. The bank’s first branches were original opened in Hong Kong and Shanghai in 1865.
HSBC lists on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. In 2010, the total revenue of HSBC is 98.918 billion US dollars, with more than 13 billion US dollars profit. (HSBC, 2011) According to the Forbes magazine (2011), HSBC is the second largest banking and financial services company in the world, and its international network comprises around 7,500 offices in 87 countries and territories. (HSBC, 2011)
This report will analyse several environmental forces that may influence HSBC and its business by the method of PEST analysis (Political-legal, Economic, Socio-cultural, and Technological analysis). It is significant for all companies to identify the external environment in which they are operating business in order to help the company to make decisions and to manage long term survival strategies which will also help the company not to fail when the external environment change.
Political-legal Environment
HSBC is a multinational company and it operates in many nation states. Therefore, decisions made by those political entities may have significant impacts on the prospect for HSBC achieving the objectives it has set itself. (Griffiths & Wall, 2008) Moreover, since different countries have their own political and legal system, the political environment that HSBC confronts in different countries may vary. And as a multinational company, HSBC also have to face some Global or regional political environment. Generally, there are two broad ranges of
Introduction
HSBC holding plc is a global banking and financial services company headquartered in London, United Kingdom. The business of HSBC includes personal financial services (retail banking), commercial banking, global banking and markets (investment banking), and private banking. HSBC holding was founded in 1991 by the Hongkong and Shanghai Banking Corporation. The bank’s first branches were original opened in Hong Kong and Shanghai in 1865.
HSBC lists on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. In 2010, the total revenue of HSBC is 98.918 billion US dollars, with more than 13 billion US dollars profit. (HSBC, 2011) According to the Forbes magazine (2011), HSBC is the second largest banking and financial services company in the world, and its international network comprises around 7,500 offices in 87 countries and territories. (HSBC, 2011)
This report will analyse several environmental forces that may influence HSBC and its business by the method of PEST analysis (Political-legal, Economic, Socio-cultural, and Technological analysis). It is significant for all companies to identify the external environment in which they are operating business in order to help the company to make decisions and to manage long term survival strategies which will also help the company not to fail when the external environment change.
Political-legal Environment
HSBC is a multinational company and it operates in many nation states. Therefore, decisions made by those political entities may have significant impacts on the prospect for HSBC achieving the objectives it has set itself. (Griffiths & Wall, 2008) Moreover, since different countries have their own political and legal system, the political environment that HSBC confronts in different countries may vary. And as a multinational company, HSBC also have to face some Global or regional political environment. Generally, there are two broad ranges of