Hsbc Essay

Introduction

The report focuses on the strategic analysis and recommended action of the chosen organization. HSBC is one of the world’s leading international banking and finance sector organization which was founded in 1865 and serves 52 million customers across the globe. The organisation has several business units and each unit carries its own strategic plans in order to succeed and to gain competitive advantage as a whole.

It is said that the organisation’s role and purpose is to enable businesses to thrive and economies to prosper, helping people to fulfil their hopes and dreams and realize their ambition. (About HSBC)

This report will take enable the reader to understand the internal analysis of the organisation and the external environment

Also the basic customer needs that are served by a market define an industry’s boundary; therefore it is critical for managers to identify the demand side which interns will prevent them being flat-footed amidst the rise of competitors.

In order to analyse the external environment it is important that the managers do an assessment on evaluating the competitive positions.

Competitive positioner is an important aspect under micro environment as described by Kourdi(2009,p.13) that it understands the power of the external environment and focuses exclusively on achieving competitive advantage. On this basis, the role of strategy implementation is to identify where and with whom the organisation is competing and to align resources to gain competitive advantage.

Porter’s Five forces that is introduced by Micheal Porter explains five forces that is essential to analyse the level of competition that a organisation will face among those who serve a similar range of product and services to clients. Given below is the diagram that is introduced by Porter. This report will focus on the detail study of the five forces in relation to the Retail banking and wealth management

However the chances of the competitors trying to introduce similar automated channels are low due to the highly secured and customer friendly systems used by HSBC. Further, its range of corporate banking products such as import – export, money markets, treasury, foreign exchange services along with personal financial services are difficult to be substituted due to the international expertise in creating such products, the level of trust customers have placed in HSBC for its years of service in the industry and mostly for the excellent customer service offered by the staff. Also, HSBC is a globally recognized bank and so are its products. Customers prefer to bank with HSBC for the brand name it has created in the market and for the convenience of international transactions and cross border account opening facility offered to customers while staying in the home