Hsbc Case Study Answers 1l3v22

Question 1 Evaluate the global reorganization and expansion of post financial crisis period HSBC has clearly come out of the financial break down through various strategies moves. Company is clearly utilize its organizational structure, brand value and creating strategy alliances expansion to eliminate the financial risk faced by the company and other competitors in the same industry. According to the case company eliminate the financial risk by increase the profit by expansion of its profit in thriving developing countries financial market rather than tackling the problem with in the narrow scope within its national boundary. This strategic stance prevents the company from crisis in the particular industry. Initially concerning the alliance created by the firm enables to provide product standardization according to the countries customer segment. Direct response to the customers need and local customs enable them to stand and earn profit in the particular local environment. More over alliance ease the policy problems by lobbying. Acquisition of local firms also ease them directly enter into the market with less financial burden so company could easily utilize required local knowledge and stay more focused to the products and services needed by the local customers. Secondly this organization already having strong brand value where it is already existed and the brand also based on one bank for global customers so the image of the brand also reflect the globalization and one bank network for global citizens. This strong brand strength also a key enabler for easy market entry in developing markets .And a key driver for local customer acquisition and profit of the firm. Thirdly restructuring the firm via prudent policies and trimming out loss making retail and corporate banking units during the period enable the firm to avoid further financial risk associated with the market. But this action also used to mitigate the risk of financial losses. Even

though this firm has country specific strategies, central net working and monitoring systems with information technology enable them to hold the control as one bank. Finally entering developing market even in post financial is also a positive move to firm Rather than stuck in risk zone and getting prolonged losses. This expansion is a solid to step stone to avoid losses and capturing new markets.

Question 2 Compare and contrast the HSBC operation with its main competitors HSBC views it operations in long term view point and sustainability in market expansion throughout the globe. In order to achieve that company develop various strengths such as tailoring localized product , building strong brand identity and net working and monitoring banking activities through centralized control and policy making. Comparing with other competitors company also tend to reduce the cost with the usage of technology and learning the local business intelligence are the key competitive advantages for the business. Systematic usage of brand image with systematic learning of local knowledge differentiates the according to the particular countries customers need in order to win the market share and defend the market position. Comparing with other major competitors this firm has competitive edge on their position. These positioning also became crucial with maintaining alliance in developing countries. More over if we look in to the cost cutting techniques company use simplified on line banking systems. These systems will remarkably the profitability by cutting retail banking cost rather spend on over head expenses such as labor and rent of physical structures. Further cutting the cost in loss making market is also a effective risk avoidance strategy. Other competitors did not use this technique effectively.

Comparing with other key competitors company effectively maintain its business model suited for the changes occurring in the macro environment. This flexibility and adoptability are the key strength for the firm to overcome the financial risk and achieve profit targets. Finally this company responds to rapid globalization rather than other banks. Expanding networks are used as to reach and serve the rapidly moving global citizens with the strength of technology with localized products. Developing countries business need more funding and banking need to develop the economy and business industries. Question -3 What did you learn when applying the concept? Accord to the case study there are certain concepts and theories are fit well with this particular firm’s global expansion. Firstly company focuses more on environmental factor analysis. Because micro and macro environment. Company utilizes its micro environment strengths such as brand value, localization in product development and net working strategies to overcome the economical break down in local market. Company mitigate it financial paring burden and losses from using its core strengths such as brand value and technological advancement. Further company also utilize change management theories as well because in order survive it is vital to hold flexible organizational structures and policies. For instance cut down Cost Company also tend lean toward adopting information technology and pushing to customers as well in order to cut cost. More over company tend to give more emphasize on developing products with local cultures and customs in mind. It is a key point to overcome market entry barrier and a critical success factor. Secondly based on Yip’s concept on Globalization Company clearly handle the hard economic situation appropriately. Because firm focus on cost, competition, and government also with the consideration of environmental factors. which are directly affecting the position of the firm. More over Based on porters 5 forces, company overcome the threat to the new entrants by maintaining strategic alliances trough this they made acquire new assets in foreign market easily

and strong brand identity ease the firm to establish. Competitive forces also high in this scenario but because of it brand image and connected networks throughout the globes HSBC overcome this quite well. Finally company also developing new competitive advantages to overcome obstacles in future and present. To that firm targeting new strategic locations and new market segments with effective organizational structure and policies with the arm of information technology.

Reference Helen Deresky, 2014, Pearson Australia, Sydney, NSW, 2086. Hsbc Annual report 2012. Available from: <www.hsbc.com/~/media/HSBCcom/.../annual.../hsbc2012ara0.ashx>.(4 march 2013).