Well known organization
Introduction
HSBC is well known Organization in banking sector. It is a largest banking and financial organization in the world. HSBC is an international company which has around 8500 offices in 86 countries and territories. It is an international bank, which is spread all over the world. It has a lot of branch in the London.
HSBC has recently full grown through a further achievement. The HSBC banking group has become the biggest bank in the UK. Approximately half of all people in the UK now bank with HSBC banking group. The group has the largest branch network of any UK bank. The achievement also means that the new group has a broader range of expertise with multiple varieties under its banner. It is a more multicultural business, with stronger market attendance in areas such as mortgages, insurance, finance and investment.
HSBC is using variety of advance technologies to make an international network, including a rapidly growing e-commerce capability; HSBC provides a comprehensive commercial range of financial services corporate service, personal services, private banking and other activities. They offer many other services including Braille, large print statement and sign language interpretations.
HSBC working since 145 years, they are providing Internet banking, disabled customer account, mortgage, house loan etc. It is totally financial company but the company is providing insurance service as well.
History of HSBC
HSBC was established in 1865, as a small concept and idea; a local bank to serving local needs. It was based in Hongkong?s territory when it was born but at the current period of time HSBC welcomes customers from all over the world. It has centuries of banking experiences in china. Their experience has created its core strengths of resilience, flexibility and capability for improvement. A peek at its history explains why it believes in capital strength, strict cost control and in building long-term relationships with customers. HSBC has weathered change in all forms ? insurgency, economic crises, new technologies ? and has adapted to survive .Growth has come organically and through strategic achievement, and these purchases have brought their own strengths and cultures to the Group. The resulting corporate character of HSBC enables it to meet the challenges of the financial world of today and tomorrow .This brief history introduces the major events, decisions and personalities that have made HSBC what it is today.
Even though it was at the centre of the sub prime hurricane, the wider group has weathered the economic crisis better than other global banks. According to Bromberg HSBC is one of world?s strongest banks by some measures. When HM treasury required all UK banks to increase their capital in October 2007, the group transferred ?750 million to London within hours, and announced that it had just lent ?4 billion to other UK banks. In March 2009, it announced that it had made US$9.3 billion of profit in 2008 and announced a ?12.5 billion (US$17.7 billion) rights issue to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights issues implications for institutional investors caused volatility in the HongKong stock market on 9 march 2009 share of HSBC price fell 24.14%, with 12 million shares sold in the last few seconds of trading.
SWOT Analysis
Strengths
HSBC, as a successful international financial company, provides advices and suggestion to other companies regarding international business. It has branches all over the world has got client from different environment and cultural but never beaten n this area.. HSBC knows how to follow structural and effective growth. It was mostly an Asian bank until it took over a UK bank in 1992 and now has become the world’s second-largest bank by profit. HSBC has different idea and concept about how to get more return from investments.
HSBC provides qualitative services in an easier ways than other banking and financial sectors. If you open your account with HSBC you will receive every thing within few working days e,g; debit card and cheque book etc.
HSBC is primarily listed on the London and HongKong stock exchanges, which saves the company much sorrow in to agree with new American Sarbanes-Oxley laws. To talk about current economic recession, it was at the higher position than recession while many banks and financial companies collapsed.
Weaknesses
While it is definitely a global company, HSBC came late to the game on deciding to perform an included marketing strategy and profit from on its international brand. Because it had set up so many different banks in different countries at different times over a hundred year period, it set them up under different names HongKong Bank of Canada, British Bank of the Middle East, HSBC Banco Roberts.
Not even all of these Banks, prior to 1998, carried the HSBC logo. In 1998, they were all branded together, but the previous lack of branding and the name changes may have hurt HSBC in brand recognition. Customers may have thought that HSBC was taking over their local bank and not realized that HSBC had already been serving them for decades. In any case, the re-branding was an overdue move that should have occurred before 1998.
The main weaknesses i found by research in this case study that its bad debts is increasing every year, which can be loophole for its better progress and success. As is frequently the case, proof profits can only last so long.
Opportunities
Other banks are running frightened of this region. However, HSBC has run its regional business locally and been rewarded for its attempt with abundant awards and tribute for the Middle East market. HSBC is a reliable name there, and the company has engaged advantage of Iraq’s new democracy by creating an attendance in the country. HSBC is the biggest international bank in the Middle East.
In totalling to the growing Chinese middle class, Brazilians and Indians are opening to appear as growing consumers, and therefore growing consumer spenders. Some denizens of these countries previously did not even own a bank account, but companies like HSBC are prepared to move in and take advantage of the growing middle class in these areas. In places like Argentina and Turkey, HSBC experienced pre-tax profits of 50% last year. This is where it is growing the most. By investing in these countries, HSBC can counterbalance problems it may have as spending in the US and UK declines.
Threats
As interest rates grow and the housing explosion ends, Americans are fore cast to rely less on consumer credit and more on their saving expertise to get by. The plunge in American spending will be bad for the global economy as a whole, and HSBC will positively be pretentious. In 2005, HSBC pre-tax profits rose 5% to $10.64bn (?6bn) for the first six months of the year, largely on grow in consumer finance for growing consumer spending. At that moment they increase the interest rates that are why company faces lot of problem.
Last year, British employees held a strike involving 1,500 workers at HSBC branches in London. At its annual meeting, striking workers stand outside, handing out bags of nuts and saying that they are paid ?Peanuts? while HSBC experiences record profits. Strikes such as this, above all in union-conscious Europe, are bad for image reasons and HSBC needs to take action to ensure that its workers are happy just as its customers are.
With a trillion dollars in managed assets, taking over HSBC is a cracker’s dream. HSBC has to remain on the front lines of safety and look after its customers, at the same time supportive them that online banking is safe. In August 2006, HSBC was accused, although it?s claimed airtight security; of having left its online customers open to a safety anomaly for two years without fixing. Researchers at Cambridge University claimed that any HSBC account could be broken into within nine attempts.
Last year, HSBC Company?s Chief Executive Officer published our HSBC Company got thousand of email viruses. At that moment HSBC Company spent lot of money to stop these from causing systemized damage. As most banking is done on computers, even one virus could cripple HSBC.
PESTEL Analysis
Political
HSBC is operating across different geopolitical landscape. It has its presence on every continent of the world with countries having varying political ideology.
Economical
Recently, HSBC had survived without any government aid, -the worst financial crisis since the great depression in 1929.
Social
HSBC operates in a highly diversified cultural environment due to its global banking presence. It highlights in its advertisement about the ?THE USE OF LOCAL KNOWLEDGE? and ?THE WORLDS LOCAL BANK? as a way to connect to all its Target Market.
Technological
HSBC had intensified its campaign to encourage its customers to use the online banking facilities. It has also made its branches have cash counting and pay bills kiosk or machines which greatly improve its operational efficiency.
Environmental
As a major global bank, HSBC is also at the epicentre of the carbon footprint reduction commitment because of it global and large scale operation.
Legal
The move by G8 spearheaded by the UK and United States Government to put a limit on the Banker?s bonus will cause significant negative effects on its ability to attract and retain highly skilled and talented workforce especially on its investment banking group.
Marketing strategy of HSBC
- Brand: Make HSBC and its hexagon symbol one of the world’s leading brands for customer experience and corporate social responsibility.
- Personal Financial Services: Drive growth in key markets and through appropriate channels to make HSBC the strongest global player in personal financial services.
- Consumer Finance: Expand to arrive of this business to existing customers through a wider product range and to get into new markets.
- Commercial Banking: Make the most of HSBC international customer base through effective relationship management and improved product offerings in all the Group’s markets.
- Corporate, Investment Banking and Markets: To hasten to progress or incidence of growth by enhancing capital markets and advisory capabilities straight focused on client service in defined sectors where HSBC has critical relevance and strength.
- Private Banking: Serve the Group’s highest value personal clients around the world.
- People: Attract, develop and motivate HSBC people, rewarding success and rejecting poorness.
- TSR: fulfil HSBC TSR target by achieving strong aggressive performances in earnings per share growth and efficiency. HSBC target at anyhow they want to increase our per share growth.
Conclusion:
HSBC has 140 years experience of china. It has 8500 offices in 86 Countries and Territories. HSBC, as a major bank, provides a wide range of services to support new businesses from initial idea to running the business. When it was born it has a small idea to serving local needs. Nowadays it welcome to all over the world customers. It has been using a huge technology to connect international market. It has a good strategy to make sufficient money. It provides the faster services than other financial organizations. HSBC know how to succeed in M&A organic and effective growth.
It is definitely global company; it has a so many competitors. In my view HSBC?s market segmentation and market penetration is good part of the organization. I recommended HSBC what they are doing; keep continuing but customers needs and desires are dynamic. HSBC has to try to fulfil the customer?s needs. BARCLAYS, NATEWEST, HALIFAX are main competitor of HSBC. They are also serving the same kind of service and using same kind of marketing strategies. If HSBC does not attention about these competitors it should bear huge loss in future. HSBC has won the customers faith so I recommended keeping it up. Watch the global market competitors and try to provider better service than other organization.