About HSBC

Company Chairma
HSBC Holdings PLC Douglas Flint
name n
Turnover $48 billion Website http://www.hsbc.com
Employees 235,175 Headqua HSBC Tower, London
Growth rter
Text
rate

About Main products or services

British multinational banking and financial services Retail banking
holding company headquartered in London Corporate banking
Worlds seventh largest bank by total assets with Investment banking
total assets of $2.374 trillion Mortgage loans
Continues to see both UK and Hong Kong as its Wealth management
home markets Finance and insurance
Financial situation
Revenue: $48 billion Additional comments
Operating Income: $7 billion
Profit: $2.5 billion Around 6000 offices in 71 countries and wide base of
Total equity: $175.38 billion 60 million customers
One simple idea: a local bank serving international
needs
Timeline 2
1865 Hong Kong and Shanghai Banking Corporation Ltd. opened in Hong Kong, first locally
owned and managed bank

1875 Had its presence in seven countries across Asia, Europe and North America

1999 The Midland Bank was replaced creating a clear and consistent identity

2000 Launch of online banking which offered customers opportunity to check account
balances, make payments

2004 Bought the retail financial services arm of the Marks and Spencer Group

2011 Security device HSBC Secure Key given to all online customers which gave unique
password in each log in

2016 As new market flourish, continues to be at helm of growth, connecting customers to

opportunities
 SWOT ANALYSIS
Weak retail banking as compared
Strong brand name and good
to its competitors

S W
financial position
GB&M facing greater financial
Present in four business groups
uncertainty and tougher
namely commercial, investment,
STRENGTH WEAKNESS regulation
financial and retail
ES ES Despite new management more
Diverse customer base reduces risk
cases of regulation breaches
Use technology in key markets Changing govt. regulations and
through contactless and mobile financial crisis like recessions
payments

O T
Stiff competition from global
Benefit from Chinas financial leaders
liberalization and development of Series of pending litigations and
RMB OPPOTUNITIE THREATS investigations
Lower interest rates will boost S
Uncertainty arising out of
market share
European crisis and Brexit

3
Porters Five Forces Analysis

Potential entrants Bargaining power of customers

Many threats from market players like Tesco, HSBC managed their customers
Sainsburys
More countries joining WTO and advent of
allowing company to gain customer
loyalty

internet
High profits offered by the industry
RIVALRY
Options available to customers have
AMONGincreased due to opening up of new
COMPETITO banks
RS
Threat of substitutes Many rivals in Bargaining power of suppliers
Significant size and
Competitors provide new products and banking and
services financial sectors concentrations of suppliers
but HSBC has Uses the strategy of charging
HSBC had to work hard to sustain its position
Focuses its strategy focuses on the four
strategic plans markets with different prices
different according
customers section
to the differences of price of each buyer
McKinseys 7S Analysis
Structure

Strategy
Global
finance
Insight, Systems
accuracy,
efficiency
and control
SHARED
VALUES
Connecting
customers
enabling
businesses

Skills Style

Staff
Talent
manageme
nt &
employee
mobility
McKinseys 7S Analysis
Shared
Connecting customers to opportunities and enabling businesses to thrive
value Real credit belongs to customers employees, shareholders and community

Global finance, global commerce to become worlds leading international trade and business bank
Insight, accuracy, efficiency and control to challenge the business with critical thinking and innovative insight to improve
Strategy
way to do business

Human resources leads to implement people strategy in line with business objective
Facilitates talent management, succession planning and employee mobility
Staff
Support employee performance management reward, learning and development, resourcing and engagement

Leadership coordination among the global and regional heads and as organized within the four business groups
Style Inclusive leadership program to have more women leaders across various heads

Partnership with clients to achieve consistent, long term performance

Structur connect emerging and mature markets, covering key areas

e

Healthy work culture, employee engagement

systems Process improvement led by open communication system

Requires different skill set across different divisions and mapped to the requirement to the industry and skills required in a
region
skills Commercial awareness, customer service skills, innovative and creative thinking along with technology usage and
awareness
Ansoff Matrix
Market Penetration
HSBC can be said to have
implemented this strategy during
Existing Market Product the sub-prime crisis
Market Development
Developme
Markets
Penetratio Economies such as those in Asia

n nt have considerable current account

market, HSBC can expand into
these markets to gain a stronghold.
Product development
HSBC can use this strategy to
Market
New

Diversificati develop a new prepaid card. It will

Developme on
lead to change in the spending
psychology of customers and
nt encourage people to spend more.
Diversification
May not be suitable option for
Existing New HSBC as the economic activity is
already deteriorating
Products
PEST Analysis
Government is responsible for Work Life Balance
protecting the public Interest Trends in Consumer
Political Stability affects business Behaviour
Leisure
decision Lifestyle
Regulations of Business Activities

P S
E T
Politics Social

Economy Technology

Technological arrange is
Competitor Activity
speeding up
Competition for
Technology develops new
Resource savings
products
Unemployment
Improved Communication
Numbers