Introduction

In todays world the competition is getting intense in all the fields especially
in the world of business. If all the organizations have to run in the
competition and to achieve the success every organization has to follow the
approach of strategic management. Different approaches have been guiding
the industries to get the most out of the opportunities and to face the
challenges which are quite common in the environment of business. The
strategic management approach of any organization is mainly to help sustain
and maintain the strengths of the organization and to help in achieving the
goals and objectives of the organization. The main aim of this assignment is
conducting an analysis strategically taking example of an organization.
Different tools of the market like porter’s Five Forces Analysis and PESTLE
will be used here. Also used HSBC competitors by using of SWOT analysis.

Overview of HSBC Bank

HSBC is well known to everyone as one of the largest banking services and
financial industries in the environment. The headquarters of HSBC is located
in London and has got networks at international level where there are more
than 10,000 offices. These are located in more than 82 states in Asia,
Europe, America, Middle East countries and Africa. HSBC Company has got
approximately 200,000 shareholders in more than 100 countries. The
network is connected by the use of technology and internet by which the
company is able to provide a good range and also been able to reach
financial services which also includes banking services in investment,
commercial, financial services which could be personal and other services.
HSBC believes in a philosophy which gives importance to principles and
values.

Strategies used by HSBC

For HSBC to achieve success and to gain the advantages in the competition,
it has been using various strategies. It has used one of the strategies called
as ‘Managing for Growth’. This has helped for the company to develop more
and has also helped to strengthen the organization. As the company has set
up its main objective as to lead the banking and financial services, the
organization used the strategy which tries to help and maintain the top
position in the market.

HSBC was using the strategic HRM which gives comprehensive and intense
values for the employees. If the employees are motivated and productive,
they help for the organization to reach its goal. Also the company has
implemented the relationship management between customers and the
employer in order to make relations with the customers everywhere in the
world. The main aim of CRM is to ensure that organization is all the time
attached to demands and needs of the customers. By using the internet and
information technology, HSBC managed to reach the customers all over the
world and also given them satisfactory and quality services.

HSBC used strategic management in order to make sure that the business
will help them to gain profits at local level and at international level. The
company is well aware that possessing a good name in the industry will
always help it to become more pleasing by the customers.

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They also believed in implementing a responsibility at corporate level which

helps to recognise the accountability to the customers. The organization
makes sure that the principles of conduct are always aspiring the employees.

The HSBC business strategy focuses on the following customer groups. They
are

 Private Banking
 Personal Financial Services
 Commercial Banking Services
 Corporate Sertvices
 Investment Banking
 Markets

To make sure about the demands of the clients and customers, HSBC also
used other strategy for each of the customer group. The HSBC had a
perception that with effective management, the external and internal reports
of the customer group, the customers will be more satisfied. The other
strategy used by HSBC is called as Branding. This is considered as one of the
important strategies used by HSBC. Because of this, the organization
managed to reach all the customers across the world and also managed to
lead the position in the business market.

Competitor’s Analysis (SWOT Analysis)

Strengths
The rivals of HSBC were able to meet the needs and demands of the
customers across the world. By using the internet and information
technology, the HSBC competitors may use all the resources for
development of new service and products which the customers would like.
Apart from that the combining of the large companies were considered as
one of the HSBC’s strengths. Their strength also lies in possessing image of a
brand organization and leadership in the market.

Weaknesses
Lack of resources is considered as a weakness in the rival company of the
HSBC. Because of this the organization will not be able to maintain the
advantage in the competition. Also the HSBC rival companies lack the ability
in order to reach number of customers due to the barrier of distance. Lack of
good and effective management is also one of the weakness of the HSBC
competitors. They may also have some weakness in view of poor marketing
approach and the image as brand organization. Some of the small companies
may have a weakness to gain loyalty of the customers.

Opportunities
 The HSBC rival companies may have the following opportunities.
 Favourable and productive conditions in the market.
 Altering the regulations in the market regarding competition.
 To build up good relationships between the client and the customer.
 To use the advanced technological support.

Threats
 HSBC rival companies have also been affected by some of the threats
in the market. Some of them are as follows:
 Not so favourable conditions in the market which could set as an
obstacle for the position of the company and to gain the advantages.
 When there are new entrants and new businesses which could give
more competition for the organization.
 When the business runs slow compared to others.
 Because of the revision of the regulations of the government and
policies and the changes in the technology.

There is no doubt that the environment of the market is very much

complicated. The organizations have to consider a number of factors which
are mainly dependant on the new settings and trends in the market. Most of
the industries tend to use distinctive and a unique strategy to be able to
cope up with the competition. A number of ways have been adopted by the
companies on how the management will be able to build up a strategy. This
has to be constantly analysed and evaluated and has to be updated in
relation with the changes happening in the market.

HSBC is well known to be using a number of strategies in order to provide

customers needs and demands. Critical analysis of the market has proven
that this company has grown more than its competitors just because of using
the strategies in order to be connected with the customers. If any company
chooses the unique and correct strategy, there is a high chance of the
organization to achieve success and reach the organizational goals and also
to stand as a leader in the market.

Task 2
Vision, Mission, Objectives and Measures
Managing for Growth
HSBC maintains a strategy to grow which is used in various ways. An
important part of HSBC to grow is acquisition.

To focus on enhancement of HSBC revenue culture of generation.

To develop the brand further

To maintain cost strategically

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To maintain a good risk stance in the market

To invest more in the people

Following the strategy of HSBC, the customers tend to remain at the centre
using this special strategy, at five customer groups worldwide. Also HSBC
maintained to position itself as world’s leading bank in order to approach
every country mixing up the knowledge with the local and international.
The proposition of the customers will be calculated using a spectrum of
intense management relations and other services. Taking HSBC as a whole it
will take concentration on activities on the areas where the growth and mass
are found out.

The strategy of HSBC is mainly focused upon the customer groups which
comprises of of the following services.

Personal Financial Services which also includes Premier for HSBC.

Consumer Finance

Commercial banking which includes both medium and small enterprises and
also includes Middle Market enterprises.

Investment and Corporate Banking

Private Group Banking

The management covers most of the country, Europe, America, Asia and also
the Middle East countries.

Enhancing Products
HSBC has enhanced some of the products those are important to certain
group of customers. Of those some are managed and coordinated with
special interest. Especially cards are enhanced by exploitation of the
experience and the platforms which the Household provided. The cash
management considers the international and scale including the Funds
administration, Insurance Management of Assets and also benefits for
Retirement.

These sorts of enhancements will often help the group to make sure that the
company will have the required capability to be able to satisfy the customers
especially in certain cases where the products are often for sale at
international level and to make use of the expertise of the product.

Using Different Marketing Tools to do Analysis.

As it has been already mentioned the HSBC organization is analysed by use
of certain tools of Marketing. The Analysis used for this is PESTLE Analysis
and the Porter’s Five Forces Model.

PESTLE Analysis
Political Aspects
There are certain rules, policies and regulations that have been formulated
which serves the purpose of protecting the organization. These policies and
procedures are designed by the respective governments where they are
been operated. HSBC managed to adhere with the policies which were
formulated by each of the governments to ensure that the organization can
operate the activities of the business effectively and successfully. In addition
to that the organization also designs its own strategies over the other
government limitations and restrictions.

Economic Aspect
As well known to everyone as the largest and leading company in regards to
finance and banking, HSBC achieved success and stability in the economic
status. Even though HSBC faces dangers from various parts across the globe,
the management makes sure that they will be able to overcome those
problems and always tries to maintain the good economical conditions.

Social Aspect
The situation in the society effects the HSBC organization where they are
operated. Inspite of this the company tries very hard to ensure that all the
societies are given same opprtunities in order to take advantage of the given
resources from the company. The organization adheres with the society
which they belong to have good relation and reputation.

Technological Aspect
The company has been making use of the advanced technology. It clearly
depicts how the company has been operating since last few years by taking
advantage of the Information Technology. With this the company has been
able to reach the customers across the globe. This has helped to be aware of
the latest things in the market. It has also helped in improving the operations
and the productions.

Legal Aspects
The policies, procedures, regulations and the rules formulated to protect the
company by different governments at local and international level always
allow the organizations to be more careful in view of their business activities.
In order to avoid such problems the HSBC makes sure that all the actions are
to be legally proceeded and are maintained at high standard level.
 Environmental Aspects
The Environmental protection is an important aspect which is considered by
most of the businesses. If this is not given importance there is a chance of
problems arising in the society. To avoid such problems HSBC has developed
a strategy to protect itself and to adhere with this need. The company also
tries to participate in many campaigns which are meant to be for protection
of the environment. It also sponsors some of the organizations which have
this sort of interest in environmental protection.

Porters Five Forces Analysis

This analysis mainly explains the aspects of the external environment of the
organization. Quite often these factors are able to affect various
organizations in regards to competition. These are considered as the forces
which drive the competition, as they ensure that the business is generated
with the correlation of five different factors. These factors are as follws.

Rivalry/competition among the industries

Buying the power of the customers

Power of the supplier

Threats that could occur by new entrants

Introduction of substitute product or services in the market

With a clear understanding of above factors, the company manages to build

up the strategies to achieve success.

Force 1: The Intensity of Rivalry

HSBC is said to have many rivals in the financial and banking sector. The
amount of the rivalry has enabled HSBC to use different strategies which are
very effective and helpful to maintain the lead position within the market.
When its rivalries tend to improve their capabilities, HSBC managed to
develop a strategic plan to ensure that they should be considered as the first
choice by the customers in the banking industry.

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Force 2: The Threat of Entry

HSBC has the possibility of facing number of threats because of achieving
many profits in the market. Having the threat from new entry enterprises can
break an organization like HSBC. In regard to this, HSBC has managed in
establishment of certain barriers to make sure they lead the market. The
HSBC also makes use of the brand image to ensure the stability of its
customers’ loyalty.

Force 3: The Threat of Substitutes

In the market there is always introduction of new services and products by
the competitors. The substitute products could give a threat to the profits of
HSBC and makes the organization to work even harder to maintain its top
position. The HSBC strategy has focussed on 4 segments which have helped
to meet the demands and needs of all the customers which decreased the
influence of any other substitute products.

Force 4: Buyer Power

The buyer power is considered as one of the most important forces which
could affect the value’s occupation which has been established by the
organization. The size and the concentration of the customer are the
important determinants of the force. HSBC managed to satisfy its customers
effectively which has also helped the company to gain the loyalty and
satisfaction of the customers. The HSBC strategy helped the organization to
lead the world in the banking sector.

Force 5: Supplier Power

The buyer power is reflected by the supplier power. When the force is
analysed in view of this, the focus is mainly on the size and suppliers’
concentration which could also be related to the customers. The
differentiation degree is also given focus about the materials which are
supplied by the organization. The company can be able to charge the market
which they target according to the price difference for all the buyers. It is
implified that the supplier power describes the audience.
VISION:
The vision of the HSBC Company is to stand as the greatest and special
group in the banking sector which has been driven by the commitment to the
values and core philosophies.

‘Enabling Excellence through Partnership’

The strategic objectives are achieved with the partnership from the
associates and customers.

MISSION:
HSBC always provides a comprehensive range of services in financial sector,
private finances services corporate banking, commercial, investment and
private banking, and also other activities by the maintenance of network at
local and international level, with the help of advanced technology and the
rapid growth of e-commerce.

The company aims to provide quality service in a timely fashion and cost
efficient way being in line with the standards of the company.

Strategic intent and mission/vision

Purposes of the firm
The intent of HSBC strategy is to be the customers’ first choice in the
financial and the banking needs. The products and the services have been
designed to give convenience to its customers.

What goals to be achieved?

Providing quality services in the banking and financial services to the market
which they target whilst giving value to the employees of the company, its
management and the shareholders is the main aim of HSBC. The company
also aims to reach all the customers across the globe by the online activities
and the websites.

Any formal mission/vision statement?

The mission statement of the company is being the greatest and specialized
group in the banking sector which is run by a commitment by giving values
and adhering to its philosophies. The company aims to lead the market and
deliver a great service based upon the outstanding services, sales and
solutions. In addition to that the company aims to achieve long term,
superior and returns which are ethically based for the shareholders of the
company, and to build a performance team which is motivated and which
performs well. Also aims to create an environment which could be rewarding,
challenging and convenient for the employees.

Task 3
Strategy implementation
a. How does the firm implement the chosen
strategies?
An intensive planning helps the firm to implement a strategy which they
chose. This is done with the help from management and the leaders. In
addition to that the efficient and effective leadership in the organization
gives a responsibility to the team and the management networks as the total
capacity of the performance in terms of activities and development is based
upon it.

How effective?
On the basis of the analysis, it is understood that implementing the HSBC
business approach has been quite effective because of the advantage in the
competition and its position in the market. Making use of the planning helps
to monitor the implementation strategically.

Evaluation of action plans/tactics (key actions)

The evaluation of the plans of HSBC has helped the company to lead the
market. By taking this information, the organization should be able to
continue to find an innovative program and relate effectively with the other
companies in the market. The company also tends to maintain good
relationships with the customers and the shareholders. This is done
effectively and efficiently by the company for the operations to be done
continuously. The company conceptualizes and implements approach
strategically so that it will be able to set certain trends in the industry of
finance and banking. Apart from development of the strategies, the company
also focuses on building the customer and employee relationships.
Customers are given high priority as they are the main reason for any
business to be alive in the market.
The HSBC strategic contains of eight imperatives.
Brand: The hexagon symbol of the HSBC is one among the leading brands for
the experience of the customer and the social responsibility at the corporate
level.

Personal Financial services: the growth in the markets and with the help of
different channels at appropriate timing to make HSBC the strongest
company and to play across the globe in personal financial services.

Consumer Finance: to extend the reach of the business to already existing

customers with a wide range of products and penetrate into new markets.

Commercial Banking: to make the most out of the company’s international

base for the customers with effective management of the relationship and
more improved offerings in all the market in all the groups.

Corporate Markets and Investment Banking: to increase the growth with the
enhancement of the markets and capabilities focused on the service of the
client in certain sectors where the company has critical strength and
relevance.

Private Banking: to serve the highest value of the group and the personal
clients of the company across the world.

People: HSBC tends to attract the people, motivate them and develop them
helping the company to achieve success. and

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TSR: To fulfil the TSR target by achievement of strong performances

regarding earnings of the growth of the share.

The HSBC has developed to be the leader among the banking sector. It is the
largest bank in the Hong Kong and in China it is the largest and first foreign
bank. It gives importance to the value of the shareholders and also believes
in the talent of the employees working for the company. The company wish
to stay on the top facing the competition, maintains a good brand image,
well established customer loyalty well controlled of the costs of the
operations and the ongoing adjustment of the business to cater for the needs
of the customer. By this success it was quite useful in evaluating the
development of the strategy of the company. This is mainly to examine the
strategies of the HSBC to be aware of the mission, vision and in turn to be
able to apply for the developmental strategies for other organizations.

Global Development Strategy of HSBC

By end of year 2003, the company has launched the program called
‘Managing for Growth’ which was a strategic plan to provide the organization
with a blue print for the growth. This helps to build up company’s strength
and it addresses about the areas where the need for more improvement is
required and which could be achieved.

The core values of the company is integral for the strategy in order to
communicate with the customers, employees, shareholders and to
compromise on the long term, client relationships, increased productivity
with a good team work, ambitious, to be international in its outlook and the
character. Also there have been several elements in the achievement of the
development of the objectives which includes the speeding up of the growth
of the revenue, development of the brand, improving the productivity and
maintainance of the risk management.

Development of the employees’ skills is given so much importance by the

company to make sure that all the employees can understand how they can
contribute for the achievement of the objectives set.

Strategic Marketing Perspective

A number of concepts are important taking into concern about the strategic
marketing. These are important as they are the ones to determine the
strategies of the company. These include the determining of the needs of the
customers, focusing on the development of the product and the exchange
happening between the consumers and the producers in the market. These
concepts have become the basis of HSBC and helped to develop the
strategies and to maintain the reputation across the world.

The very first strategy is to make the customers to be at the heart of the
company’s strategy. They have got specific approaches for all the groups of
the customers which are located in North and South America, Europe, Asia
and Middle East countries. The second thing is to maintain the position as
the local bank in the world which helps the company to approach all the
countries and by mixing up the knowledge across the country. This is
considered as a good approach as all the places are different from each
other with different beliefs and cultures. The last approach is for the
company to concentrate certain activities on the places where the critical
mass and growth are located. Some of those activities are outsourcing
strategy globally. The company managed to establish in all the call centers in
order to provide the services in relation to the sales and checking the
accounts. The main aim of HSBC in outsourcing is to focus upon the needs of
the customers. The call centers take the responsibility to answer any queries
from the customers.

As a response to the development of the product, the company has

continued in enhancing certain products which were very important for the
customer group offering of the company and some of the products to be
managed at a global level. Some of these products include like HSBC cards,
Management of the cash, insurance, Management of the Assets, Funds and
Custody Administration and benefits for the Retirement. Also the
improvement of the HSBC products makes sure that the company will have
the best ability and will be able offer a great service to its customers.

The development and the improvement of the product is very important as it

serves as a good source to gain profits and to keep up with the trust of the
consumers. The company will be able to attract even more customers whilst
maintaining the old ones as well.

With the improvement and development of the products, the company will
be able to deliver the growth by enhancement of the culture which involves
four aspects. These include the strengthening of the use of marketing as a
key tool of management, which rewards the performance of the revenue, by
focusing the investment on the businesses and localities where there is high
potential for growth which can be achieved continuously when these aspects
are implemented in an effective and efficient manner in the market.

The brand image of the company has been affecting the relationship
between the consumers and the producers in the market. Everyone knew
that maintaining brand image brings success to the organization and HSBC
was equally strong to get that image. It managed to accommodate the
variety at the product at local an international level. This also helps in
establishment of a reputation, which is quite essential for the company to be
familiar and for the market to react favourably with the company. The brand
image helps to hold associations which are strong, favorable and unique. It
also helps in tying up with stronger companies and gain reputation globally.