Transcript
HSBC CASE
BY GROUP 8
introduction• Founding institution the Hong kong and Shanghai
banking corporation limited • Established in 1865 by Thomas Sutherland• Headquartered in London, 7000 offices in 81
countries, 170,000 employee worldwide, customer base of 32 million
• Ranked 27 by market capitalization in 2001 in financial times global 500
• Won many awards for most admired co, best co and best global bank by various magazines and media publications
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SALIENT FEATURE
• Improvised economies of scale• Better use of resources throughout the group• Maintains the value of local decision making and
local accountability• Matrix organizational structure• Consists of 5 division• Offering services like personal finance, commercial
banking, corporate investment banking and markets and private banking
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OBJECTIVES
• To become the world’s leading financial service organization while balancing earnings from more stable, mature economies and those in more volatile emerging markets
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KEY ISSUES
• Currently HSBC is struggling in the area of private banking
• HSBC continue to focus on becoming customer driven increasing its network and providing product innovation
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KEY PROBLEM AREA
• Problem in managing such a vast network and product offerings
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SWOT ANALYSISStrengthStrong capability in CB, PFS and certain parts of CIBMLarge market share in Hong Kong Economies of scale through various financial servicesHistoric strength in traditional banking
Weakness•Less presence in private banking•Problem in maintaining vast network and product categories
OpportunitiesMore room to grow in in Europe outside the UKKey opportunities lies in Asia specifically china and middle eastOpportunities in Latin America
ThreatService providers hijacking payment system/e systemFast pace of consolidation among peers, using acquisition to enter new regions and business
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BCG MATRIX
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At present HSBC is cashcow and will remain cashcow in future
ANSOFF MODEL
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HSBC is entering in new market with new product so it is diversification And in future it will be same
DREK MODEL
• Niche and unrealized potential in current• In future it will be leader
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POTTER’S MODEL
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THE FIVE FORCES
• The threat of entry of new competitors • The threat of substitute like easy imitable
financial product• The bargaining power of buyers with presence
of numbers of banks• The degree of rivalry between existing
competitors
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CORE-COMPETENCY
• Economies of scale across all financial servies product lines
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COMPETETIVE ADVANTAGE
• Ability to implement a single technology platform across the business
• A pool of capital maintained at group levels to meet unforeseen events around the world
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USP
• Large network with a wide range of financial product offerings
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DIFFERENTIATION
• Product innovation
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CURRENT SCENARIO
• Development of global wealth management• Growing its commercial business• Integration of corporate and investment
banking for large costomers
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PROPOSED SCENARIO
• Product innovation • Growth in market share• Increased global presence • Increase in network and product offerings
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SUGGESTION
• Focus should be on using its strength and revenue generated through high market share products to that of low market share products
• Proper maintenance of wide product range and network
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1. USING THE MODELS ILLUSTRATED IN THE CHAPTER, ANLYSE THE EXTERNAL(MACRO) ENVIRONMENTAL OF HSBC and identify the emerging opportunities and threats that will affect the future investment of HSBC in the UK financial market.
Ans: Macro environment:Growing trade between Europe & China.International trade networkTechnology driven business and banking.Localized based international business.Opportunities of HSBC:More room to grow in in Europe outside the UKKey opportunities lies in Asia specifically china and middle eastOpportunities in Latin AmericaThreats of HSBCService providers hijacking payment system/e systemFast pace of consolidation among peers, using acquisition to enter new regions and business
2.Critically evaluate the current business portfolio of HSBC and advise the company on ways to expand its financial service offerings to serve other market segments.
Current business portfolio: Strong capeability in commercial banking PFs
and certain part of CIFM.Struggles in private banking.Slowing down of growth in HONKONG.Key opportunities in Asia.
Ways to serve in other market segments
New products on country basis to satisfy customer need.
Global brand with local identity.E- business offeringProviding full range of products.
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THANK YOU
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