Strategic management

Topics: Bank, Strategic management, Management Pages: 10 (3279 words) Published: August 19, 2014

Strategic Management


Table of Contents
Introduction:2
Overview of HSBC:2
1. Internal and external analysis of HSBC and reasons for the success:3 1.1.Internal analysis3
1.1.1. Strengths of HSBC3
1.1.2. Weaknesses of HSBC4
1.2. External analysis:4
1.2.1. Opportunities of HSBC4
1.2.2. Threats of HSBC5
1.2.3. PEST analysis5
1.3. Reasons behind the success of HSBC:7
2. Models and frameworks of strategic management and ways of sustaining performance:7 2.1. Michael Porter’s five forces framework:7
2.2. SWOT analysis of HSBC in brief:9
2.3. Ways of sustaining strategic performance:10
Recommendation:12
Conclusion:12
References:13

Introduction:
Strategic management is the combination of some tools and activities in an organization which provides total direction towards achieving the goals (David, 2001). The success of an organization depends on how well it develops and implements its strategy. This assignment will provide an overall view about how an organization formulates strategy and how it handles its internal and external factors regarding strategy. Therefore the strategic performance of HSBC is analysed critically to show the practical view of strategic management. Overview of HSBC:

HSBC is a British organization which provides financial and banking services worldwide. The Headquarter of HSBC is in London and it was established in 1991. It is mostly famous for global banking as well as retail banking. The main purpose of the company is to support the people who want to convert their hopes and dreams into reality (HSBC, 2013). HSBC generally focuses on creating shareholders’ value. At present HSBC holds a leading position in the competitive global banking business. According to annual report 2012, Generally HSBC group conducts its activities by dividing four sections- UK Retail Banking: Retail banking in UK includes two types of businesses. The first one is retail banking and wealth management by which personal customers are provided some services by using their distribution channel. The other one is commercial banking through which commercial organizations are served. Continental Europe Retail Banking: Continental Europe refers to some countries like France, Turkey and Germany where HSBC provides similar services as it do in UK. Global Banking and Market: HSBC enhances its association with the global commercial banking to fulfil the needs of international clients. Global Private Banking: HSBC focuses more on investing its money in developed market where growth rate is so fast. It maintains collaboration with global businesses to create entrepreneur client internationally.

In UK HSBC bank have 1178 branches which are huge in number in a particular country. HSBC retail banking offers three types of products to the target customers. These products are as follows- •They provide asset driven services such as deposit and account services. •They offer liability driven services such as credit and lending. Both services can be secured as well as unsecured. •Other services provided by HSBC are asset management, financial advisory and so on. 1. Internal and external analysis of HSBC and reasons for the success: The management needs to analyse its environment within and outside of the organization to develop their activities to accomplish the objectives. HSBC has to consider some internal and external factors while it develops its strategic plans. It needs to identify its strengths and weaknesses as well as opportunities and threats to sustain in the competitive market. The management is always careful in research and development because they deal globally. The analysis of direct or indirect factors of the company regularly helps them to make continuous improvement that is directly related with the market share. 1.1.Internal analysis

Internal analysis of a company generally is done based on the strong side and weak point of a company because these...

References: • Balogun, J. and Hailey, V. H., (2004), Exploring Strategic Change, 2nd ed., Harlow: Prentice-Hall.
• Beer, M., (2001), How to develop an organization capable of sustained high performance: Embrace the drive for results-capability development paradox, Organizational Dynamics, 29, pp. 597–619.
• Brown, A., (1998), Organization Culture, Strategic Change and the Management Process, Prentice Hall, p 25.
• David, F. R., (2001), Strategic Management: Concepts and Cases, 8th ed., Prentice Hall, Inc.: Upper Saddle River, NJ.
• Drejer, A., (2002), Strategic Management and Core Competencies: Theory and Application, Westport, CT: Quorum Books.
• French, W. L., Bell, C. H. and Zawacki, R. A., (2000), Organization Development and Transformation: Managing Effective Change, 5th ed., McGraw-Hill, New York.
• GeekyFry, (2012), PEST Analysis Framework, [online] Available at: http://geekyfry.com/management/marketing/pest-analysis-framework/ [Accessed: 15 Dec 2013].
• HSBC, (2013), HSBC Holdings plc - Our purpose. [online] Available at: http://www.hsbc.com/about-hsbc/our-purpose [Accessed: 15 Dec 2013].
• Johnson, G., Scholes, K. and Whittington, R., (2006), Exploring Corporate Strategy, 7th ed., Prentice Hall, UK.
• Knod, E. and Schonberger, R., (2001), Operations Management: meeting Customers’ Demands, 7th ed., Mcgraw-Hill Irwin, Boston.
• Neumann, E. and Sumser, R., (2002), Marketing Communications: A Vital Element of Achieving Change, The Public manager, 31(4).
• Porter, M., (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press, New York.
• Schein, E., (1997), Organizational Culture and Leadership, 2nd ed., Jossey-Bass, p 6.
• Willden, D., (2013), Michael Porter Five Forces Model, [online] Available at: http://www.strategy-keys.com/michael-porter-five-forces-model.html [Accessed: 14 Dec 2013].
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