Category: Business 7th July 2017
The value of the HSBC brand, along with the overall company performance, speaks about a descent leadership practice, as well as a withstanding approach to the decision making process. The company deals specifically with international markets and performs effectively in the global competitive environment, one of which is based in the United Kingdom’s market.
The mission of the company in the United Kingdom is to address the objective power in order to achieve this success with truthfulness, transparency, and loyal customer support. The HSBC Holdings is the global company and one of the most powerful banking and financial institutions in the world. The headquarters are based in Edinburgh, the United Kingdom. The Holdings employ over 300,000 people throughout its locations.
The Company deals specifically with the “Global Markets, US Retail & Commercial Banking, Regional Markets, Commercial Banking & Europe & Middle East Retail, Asia Retail, Commercial Banking, Group Manufacturing and RBS Insurance”. The total assets of the company are over $3,000 billion. Hence, the company positions itself as the top choice bank of financial services (HSBC 2013).
HSBC Holdings provide a whole range of financial services to individuals, businesses, and institutions all over the world. HSBC Companies serve the customers’ needs through four Global Business Groups: “Global Private Banking, Retail Banking and Wealth Management, Global Banking and Markets, Commercial Banking” (The World’s Local Bank 2010).
The HSBC companies can afford such interactions by means of a successful global strategy covered with the Holding company itself, Intermediate holding company and operating company with 10,000 offices in 83 countries, including Latin and North America, Europe, Middle East, and Asia-Pacific (The World’s Local Bank 2010).
By one of the definitions, marketing is the means of interactions with people through a variety of communication techniques that add more value to the people in terms of particular goods and / or services. In other words, marketing is the way to promote the products to customers on both local and global markets.
The idea is to offer the customers the products and / or services in a way to help them purchase the item of value. For many businesses in Europe, and the United Kingdom in particular, all the aspects of marketing are considered a vital component for the proper growth of the business by means of attracting new customers, as well as continuing selling the goods and / or services to the existing ones all over the world.
The other definition of marketing aims at applying the concept of marketing in relation to the social interactions with clients. In order to achieve the desired objectives towards the position of the HSBC Holdings in the competitive market, it is important to address the leadership decision making process in all levels of interactions with the customers worldwide. It is also beneficial to evaluate the business processes and cover the essential elements of the business strategy.
In the sphere of marketing leadership, it is always beneficial to prove the stated business positions, which is what HSBC does on the world market. According to the recent updates of the HSBC Holdings NYSE data, the company positions itself as a true leader on the global market. Graph 5 illustrates the performance to address the roles of leadership and decision making process on the competitive marketplace (HSBC Holdings 2013).
The power of marketing concepts lies within the relationships and interactions with the customers on a regular basis. The idea is to help them become better with the goods and / or services of the company every day. Such a goal applies for the HSBC Companies and the industry as a whole.
After a thorough analysis of the key aspects of the company’s perspectives, it is possible to draw a conclusion that they have taken a rather different view towards the so-called “Marketing Mix” (Hughes and Beatty 2005), e.g.:
Please, see the graphical representation of the data above:
Michael Porter’s generic strategies allow HSBC companies to envision the ways of interactions with its customers by means of evaluating the cost and diversifying the goods and/or services that they offer on the market and in the whole industry.
On the one hand, HSBC Holdings can use the fluctuation of cost and set it commensurate to the company’s leadership or orientation on the marketplace. On the other hand, the diversification of the goods and/or services of HSBC companies depend on the goods’ application in the contemporary environment. Graph 7 below illustrates the vision of Porter’s generic strategies addressed by HSBC (Porter 1985).
It is necessary to be fair to oneself and competition in order to demonstrate the highest levels of integrity and thus put the HSBC Group’s interests ahead of the individual ones. For example, the Banking Corporation always treats customers, employees, and suppliers fairly and objectively. Another option is to broaden the diversification of the product line or to “personate with the supply channels while developing partnerships with dealers throughout the product lines” (The World’s Local Bank 2010).
The environment emphasis is on being respectful in terms of the corporation’s position in the cultural environment. It is essential to be committed to the well-being and advancement of the local group of people, complying with the letter and the spirit of all applicable laws in various countries with the HSBC offices, as such an approach creates value for the HSBC Holdings for ethical long-term client relationships.
The recent changes in the global economic environment provide HSBC with the world of opportunities on the competitive market that address exclusivity, commercial power, cultural inter-connection, along with the unique social and political atmosphere that helps HSBC to grow sovereignly in the emerging markets.
The key principle of leadership is to go global, which is possible only with the help of growing infrastructure of HSBC’s global product lines, such as HSBC Direct, HSBC Net, HSBC Advance, and HSBC Premier (HSBC 2013).
In order to become one of the world’s leaders among the International Banks, HSBC Holdings is aligned to long-term trends. Hong Kong and Shanghai Corporation recruits resident officers and international officers and exposes management trainees at an early stage in their career to cross-cultural differences, as depicted in Table 1 (Ghoshal 2005):
Number of Employees in Group Training Programs with Sustainability Themes, 2010:
|Senior On-Boarding Programme||64|
|Group Graduate Development Programme||336|
|Next Generation Development Programme||209|
|Senior Risk Management Programme||58|
|Risk Management Programme||198|
|Building a Sustainable Business||48|
The major aspects of concern are to anticipate and meet the diverse customers’ needs around the world by combining global interests across the market and segments with the local knowledge and expertise. The progressive approach also helps the HSBC Holdings to continue their improvements in terms of quality, effectiveness, and efficiency throughout the team work.
The next trait of cultural implications is to be responsive, which means to act quickly in order to ensure the needs and requirements of the customers. In fact, it is vitally crucial to address the constantly changing expectations of the target clients all over the world. In all, the management practice is applied at all levels, including the operation of minimum bureaucracy, giving guidance with wisdom and delegating with confidence (HSBC Holdings 2013).
The true nature of HSBC perfection is hidden in its “ability to meet the fundamentals of organisational changes including public interactions with banking spheres”. Any further potential could be obtained through “execution of the referent power, perceptions of character and performance, inspiration for the effective leadership behaviour, workforce productivity, and corporate culture” (Management paradise 2011).
The nature of the United Kingdom’s economy has a specific approach to the overall economic system of the country, which directs particular influence to the operations of businesses and organisations in the UK. One of such examples is the HSBC Corporation that is striving for the best strategy of the company, but has adapted to the business environment of the United Kingdom.
Global branding has its pluses and minuses, which will be discussed below. In parallel to global branding, local marketing should exist to add flexibility to the global brand, depending on the cultural and other differences of the region. The HSBC is a brand name, so all the financial marketing resources are concentrated on that brand and are not distributed among bountiful trademarks, which are sometimes called sub-brands.
In order to evaluate the performance of the HSBC Holdings, it is necessary to address Porter’s theory and Five Forces model. According to Porter’s theory and Five Forces model, the HSBC companies gain a competitive advantage as they use Porter’s Five Forces Model, which aids to overlook all the perspectives for their business strategy, as well as analyse the aspects addressed by the Five Forces model.
The major competitive advantage illustrates the wide range of financial services that are promoted in the world of banking operations. In turns, the global economy offers more opportunities to enter the Eastern markets and boost sales for their clients.
According to the Corporate Social Responsibility Report (2006), the key to success of the HSBC Companies is hidden in their worldwide strategies that address the so-called “global pillars”. The principles of these pillars address customers, brands, corporate culture, worldwide allocation, business development, technological breakthrough, and constant control over its activities on the competitive marketplace (Archie 1979).
Therefore the marketing concepts and business orientation in the United Kingdom address the types of organisations in many different aspects. All the types of organisations have the purpose to provide the target market with the high level of particular goods and / or services. However, such a process of dealing with customers usually addresses the target audience in terms of economic and social norms and requirements for the material response. Hence, there are controllable and uncontrollable factors that influence the success of the marketing process of any company.
The approach of the UK government towards competition projects the development of different mechanisms that will help to control the activities of the business owners in regards to the legal issues. As for the economic factors, they also have an impact on the UK companies.
From the position of business organisation, HSBC Holdings control the process and address it through the pricing policies, selling procedures, technical appliances, investment potential, marketing prospects, supply and demand, competition, and philosophy of business processes throughout the market cap.
The value of the HSBC brand, along with the overall company performance, speaks about a descent leadership practice and a withstanding approach to the decision making process. The company deals specifically with international markets and performs effectively in the global competitive environment.
Such a success is possible due to the profound marketing strategy that goes in line with the requirements of the most sophisticated customers. The global networking of the HSBC companies is presented in the brand lines such as Commercial Banking, Global Banking and Markets, and finally, the Wealth Management businesses (HSBC Holdings 2013).
The overall business strategy is focused on the promotion of global brands, marketing mix, proper approach to management and “leadership practice, customer-oriented information technologies and global perspectives for the customer’s needs” all over the world (HSBC Commercial 2013).
The core of HSBC is in its leadership that emphasizes teamwork, passion, responsibility, simple solutions, public transparency, and adaptability to the contemporary environment. Such a strategic leadership approach aims at gratefulness of the HSBC Holdings all over the world.
The business strategy, business analysis, and corporate responsibility address the key advantages of HBSC companies in the competitive market. The major outcomes could be estimated in terms of the goal of becoming the world’s local bank, the top bank in relation to the market cap, second bank in the world from the position of sales, and fourth top bank with regards to the assets. HSBC operates internationally and, therefore, could afford to offer its business products and services globally (Jensen 2002).
The paradigm of constantly growing knowledge and experience is the key to success of HSBC all over the world. This is the considerable advantage that helps the holdings to perform on the top levels of business services in the competitive market. The leadership decision making is based on the power of people and the ability to manage them professionally.
International business and financial opportunities of the HSBC Companies include unrestricted information flow, affordable tax system, open trade prospects, as well as free money conversation, fair government regulations, superior labour force and organisation, and finally, industry potential from the position of CEPA (Closer Economic Partnership Arrangement). Commercial partnerships play one of the major roles in business development. For this reason, HSBC offers a wide range of “banking and financial services” in order to serve the needs of customers worldwide at its best (HSBC Commercial 2013).
It is also important to know that the HSBC Companies get the vast majority of profit through franchising companies, including the income percentage. Thus, the position of the major company is the most beneficial for the global market for the reason of local monopoly through the brand recognition and advertising.
This core business strategy is addressed towards its brand, which is working to support the wide range of “personal finance services, consumer finance, commercial banking services, corporate investment banking and various markets, and private banking sector”. The marketing strategy that was engaged by the HSBC Holdings absorbed the various means of advertising with the emphasis on the recognized brand of “the world’s local bank” (The World’s Local Bank 2010).
The marketing separation of the goods and / or services, along with all the global products of the company, is consumer oriented in diverse places in the world. Furthermore, the HSBC Companies used a distinctive leadership decision making approach that helped to build customer loyalty. Such an approach to strategic management deals specifically with the core target markets in the world (HSBC Commercial 2013).
Besides, the proper utilization of digital technologies through the Internet made it possible for the HSBC Holdings to obtain clients globally. However, every company could have problems in terms of financial and economic risk factors and HSBC Holdings managed to achieve sustainability to address and position them on the global marketplace. Though, it should pay attention to the details of the asset management and international debts in order to prevent the possible cases of financial instability. In addition, it applied various business models to boost the HSBC market trends by means of generating more profit (HSBC 2013).
In the direction of the end of 2003, HSBC Holdings started the ‘Managing for Growth’ project, aiming to plan all the strategy implications for the proper marketing and management planning and issue the HSBC Companies with the “constant development for the following decade” (HSBC Holdings plc. 2013).
The business and corporate strategy of the Company could be acknowledged as powerful in terms of progress. The overall strengths of the HSBC Companies are hidden in its fields of expertise. Thus, any potential enhancement is well-thought-out in terms of necessities and achievements.
The prime emphasis is put on delivering the best services, striving to be “the world’s local bank” by means of international advantages, sustainable working environment and global growth perspectives. The idea is to develop the structure of the HSBC Holdings constantly with the emphasis on “wisdom, delegation and confidence” in managing operations. Such an approach reveals the leadership decision making towards the contemporary business environment in the global competitive marketplace (Corporate Social Responsibility Report 2006).
To conclude, the development of the HSBC leadership decision making performs on the mere leading level in the competitive market. The reason behind such a growth is its strategic implication of strong points along with the focus on the global customer needs. All the product lines of HSBC address the whole range of consumer services in terms of financial, banking, private and commercial, and investment solutions.