Introduction 80wc

Main Body 1400wc

Conclusion 58wc
main body consists of
1) Background of the company 107wc
2)SWOT Analysis 324wc,
3)Pestle Analysis 480wc,
4)Ansoff matrix application 400wc,
5)Recommended market strategy 100wcH

HSBC - The World’s LOCAL Bank

Introduction
3rd March 1865, the day when HSBC opened its doors for the very first time in Hong Kong and
one month later in Shanghai, the bank which was formerly known as The Hong Kong and
Shanghai Banking Corporation Limited. It was the first bank that was operated according to the
Scottish Banking Principles. It's been more than 150 years and they are serving their customers
by giving them the topmost satisfaction and fulfilling their commitments with great excellence
and integrity.
Main Body
Background of the Company
Though being a local bank, its only target from the very beginning was to fulfill international
needs and presently they are serving around 42 million customers and are presented in 62
countries and territories across the globe. The first ATM in India was also given by HSBC only,
at the year of 1987, in Mumbai. After taking over Midland Bank it became one of the largest
local banks in the UK and a report of 2023 claims that it was ranked 20th among all the largest
companies according to its market value. Headquartered in London, they are rapidly growing in
an era of ever-evolving global financial scenario.
SWOT Analysis of HSBC
The two main strengths of HSBC are its versatile and highly experienced employees and its
excellent ROI. The versatility of the employees is shown in their diversified thoughts and ideas,
which has helped HSBC to make a strongly dedicated and committed workforce. Also, the
hybrid working model of HSBC has been helping it grow by taking care of the mental health and
comfort of its employees. Now coming to the remarkable return on capital expenditure; by
building new revenue options and implementing new projects successfully, HSBC is giving a
great return to its customers.
Though there are not too many weaknesses in HSBC, the two undeniable ones are facing
challenges and involving in controversies. When it comes to encountering challenges whenever
a newbie enters the market, HSBC lacks confidence and can't handle the situation as they don't
have an internal feedback mechanism and then they lose a small share of it. Several
controversies are there with the name of HSBC and these scandals and fraudulent activities are
enough to make skepticism about the trustworthiness of the company.
Many opportunities can be provided by HSBC. As they have already invested a lot of money in
the making of its website, which has increased its sales, HSBC can also use this opportunity to
understand its customers better and more effectively by using data analysis. They can also take
the opportunity from the new emerging trends that are being shown in the customers' behavior
lately and make remarkable growth in the market.
While there are many opportunities at HSBC, there are many threats too. As the world is
moving forward, new technologies are being introduced with every passing day. And this could
be a threat to HSBC soon. As local distributors are emerging every day, and the margins are
higher for local distributors, this can also possibly be a threat in the market. Policy revisions in
those countries where HSBC has its branches can threaten HSBC’s ROI.
Pestle Analysis
Political Analysis for HSBC depends upon various aspects that are enough to affect HSBC’s
operations, strategies, and reputation in the market. Let's discuss the key factors that are
closely involved with the political analysis of HSBC :
The analysis of the statutory changes and political environment is very much needed to
understand the necessities and probable consequences.
Policy amendments that are related to banking and taxation can have remarkable
consequences on HSBC. Monitoring those amendments could help HSBC secure its position in
the market.
Economic Analysis is a very important aspect of every sector. GDP growth, inflation,
unemployment, and interest rates all play a pivotal part in the overall financial activity of a
country and where HSBC operates themselves they should monitor these factors, as these
indicators can impact the business operations and economic performance.
Sociocultural Analysis depends on many things. Such as cultural multiformity, demographic
trends, customer attitudes, digital adaptation, and financial literacy. HSBC operates globally,
and that is why it's very common that there would be cultural divergence, by understanding
cultural needs, language preferences, and the way that culture communicate they can make
more customers satisfied. As demographic trends vary, HSBC should monitor those areas, and
how the people and the market of that demography demand. Consumer attitudes towards
spending and investing depend on their previous experiences and also on their existing social
values and lifestyle. Digital literacy and digital adaptation are also very crucial in that analysis.
Digital adaptation will grow the bank in that part of the country. The place which is very much
digitally progressed the bank there will grow too.
Technological Analysis involves different technological factors such as digital banking
platforms and mobile applications, fintech competitions, cybersecurity, artificial intelligence, data
analytics, cloud computing, and so on. As people are moving forward and becoming digitally
literate they are depending on online banking and mobile applications rather than going to the
bank in person and HSBC has already made a huge investment to give its customers a smooth
and secure banking experience. Securing the data of the consumers is a big priority for any
company, and that is why there is cybersecurity. And HSBC is following the same by securing
the transactional details of their consumers.
Environmental Analysis for HSBC covers green financing, risk assessment, transition to low
carbon economy, and many more. Hsbc can take up a opportunity by investing in renewable
projects or any other ecofriendly initiatives. Environmental analysis is important for loan purpose
for example an area is flood-prone, so giving loan for that consumers will be riskier.
Legal Analysis should also be monitored by HSBC bank because the banking regulations,
taxation regulations, customer data protection laws and regulations, and digital and cyber laws
vary for every country they are operating.
Ansoff matrix for HSBC

Ansoff matrix is a tool that is based on strategy. This tool is used to guide businesses for
growth. The Ansoff matrix consists of four strategic options: market penetration, market
development, product development and diversification.

Market penetration for HSBC is also dependent on various aspects, such as increased
production capacity, increased marketing investment, enhanced distribution, competitive pricing,
reduced optional costs, acquiring competitors, partnership and joint ventures, new product
benefits, and increased frequency of consumption.

Conclusion
To conclude, it can be said that, HSBC's success as a top global financial services provider has
come from its unwavering commitment towards its customers through philanthropy which
includes its efforts to encourage sustainable and ethical business practices that have helped the
bank to reach where it is today by building its strong reputation as an ethical organization.

Artificial Intelligence (AI) and Machine Learning (ML) utilize algorithmic evaluation of large
datasets and have the capability to enhance rule-based systems by integrating genetic
combinations. As mentioned by Chen et al., (2021), AI-driven applications can continuously
learn from new data, thus improving their ability to identify the emerging threats.
Developing security strategies that align with natural human attributes and prioritize human well-
being to solidify organizational capabilities by improving employee acceptance and compliance
rates and by reducing risks (Lăzăroiu et al., 2020).
Continuous investigation of reported events and evolving threat developments enables
organisation to adopt security measures proactively, thereby predetermining susceptibilities
early to defend against potential threats (Benzaïd and Taleb, 2020).
Organizations demonstrate robust dedication in addressing security challenges and maintaining
user safety. They develop reliable and impactful strategies by gathering insights from various
stakeholders and fulfilling all their needs (Humayun et al., 2020).
As mentioned by Pilatsios et al., (2020), man-made errors are fundamental reasons behind
security breaches in organisation, so education and training programs are important to enhance
infrastructure safety.
Moreover, as observed by Peng et al., (2021), organisations with highly skilled employees are
more adaptive in recognising security susceptibilities and reducing the chance of successful
cyber attacks.
By incorporating contextual source observation within behavioural frameworks, organisations
can enhance their understanding of user behaviour and system patterns (Yuan and Wu, 2021).