Thursday, February 13, 2020

Strategic Management Essay Example | Topics and Well Written Essays - 3000 words - 2

Strategic Management - Essay Example Based on the industrial analysis, it presents which the position in the industrial life cycle in which it belongs. Focusing on the opportunities and threats emerging from the industry analysis and the present position in the industrial life cycle where it belongs, the project makes an analysis of the future outlook of the company. It presents the future strategies that the company should resort to. Secondly, it makes a competitive analysis of the industry also. This is done using the Porters’ Forces Model which emphasizes on the factors like the suppliers and the buyers bargaining powers, the threat of new entrants, the entry of substitute products and services in the industry and the existing competition between the rival firms. About the Company HSBC is considered one of the largest financial and banking services providers in the world. The company’s international network is comprised of 7500 offices across 87 nations in Europe, Asia Pacific, America, Middle East and Africa. The company serves more than 100 million customers through its wide range of financial services. Among its major services are Commercial Banking, Personal Financial Services, Global Banking and markets and finally, Private Banking. It is listed in the stock exchanges of London, Paris, New York, Hong Kong, and Bermuda. The company holdings are shared among 220,000 numbers of shareholders across the world located in 124 nations and their territories (HSBC-a, 2011). The company has a unique international pedigree. A number of HSBC’s companies had started operations years ago and they have all attained extreme success and prosperity. The company is named after the founding member, Hong Kong and Shanghai Corporation Limited which was set up in the year 1965 for financing the upcoming trade between Europe and China (HSBC-a, 2011). Industry Analysis The global financial industry including banks suffered a major setback after the advent of the financial crisis that engulfed t he entire financial markets. After a period of continuous slowdown the banking industry is expected to witness positive growth rates following improvements in the overall macroeconomic outlook of the world. This was mainly possible because of the strong support provided by the governments to bailout the financial institutions who were on the brink of a severe crisis. A study by the Boston Consulting group pegs the total value of market capitalisation of the global banking industry at 6.4 trillion US dollars which is more than double of the figures of the previous years. The total shareholder returns offered by the banking industry was at its highest since the onset of global recession in 2003 and as valued at 47.1 percent (The Boston Consulting Group, 2010, p.1-2). Figure 1: World Economic Outlook Projections (Source: Reserve Bank of India, 2011, p.17) The figure above indicates a strong positive outlook for the forthcoming years. The interesting part of this is that along with the developing economies the positive trend can also be traced to the developed economies who bore the maximum brunt of the economic recession (Reserve Bank of India, 2011, p.15-20). The analysis of the markets reveals a situation of

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