Hsbc Company Analysis Marketing Essay
The HSBC corporate character defines the values and principles inherent in all our everyday dealings. The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe. HSBC markets itself as the world's local bank.
Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
HSBC provides a comprehensive range of financial services to around 100 million customers through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Global Banking and Markets; and Private Banking.
There are many environmental factors that affect a business’s strategies. These factors can be divided into internal and external factors. The internal factors focus on everything within the business while external factors deal with all the aspects that lie outside a business’s control. These lie mainly in the following categories, social, economic, technological, political, cultural etc.
The three greatest external factors to HSBC are:
Regulation as a result of the financial crisis
Emerging markets as investment opportunities
Changes in personal finance trends
The factor that would be the most beneficial for the company’s strategies is the emerging markets as an investment opportunity. HSBC Global Banking and Markets provides tailored financial solutions to major government, corporate and institutional clients worldwide.
HSBC’s strategic direction reflects its position as ‘The world’s local bank’, combining the largest global emerging markets banking business and a uniquely cosmopolitan customer base with an extensive international network and substantial financial strength.
The Group's strategy is aligned with the key trends that are shaping the global economy. In particular, HSBC recognizes that, over the long term:
developing markets are growing faster than the mature economies;
world trade is expanding at a greater rate than gross domestic product
Life expectancy is lengthening virtually everywhere.
The means of executing the strategy and making greater use of the linkages within the Group are clear:
the HSBC brand and global networks will be leveraged to reach new customers and offer further services to existing clients;
efficiency will be enhanced by taking full advantage of local, regional and global economies of scale, in particular by adopting a common systems architecture wherever possible;
Objectives and incentives will be aligned to motivate and reward staff for being fully engaged in delivering the strategy.
HSBC profits per unit asset in emerging markets are significantly higher than in the developed markets of Europe and the US. The western economies are also hindered by needing to reduce high debt levels. This means that low interest rates will be needed to sell debt, thus compressing margins. Future growth is expected to come mainly from emerging markets, not the west. Emerging markets also have lower wage costs and a workforce which is increasing in skill level due to a focus on education.