...International Dimensions of Business HSBCs ascent into China. Word Count excluding references and table of contents: 3354 Business Management Contents Aims 3 1. Introduction 3 1.1 HSBC and China 3 1.2 Foreign Activity 4 1.3 HSBC in China 5 2. Chinese Business Environment 5 2.1 PEST Analysis 6 Political- Communism and World Trade Organisation Membership 6 Economical - High levels of FDI and a strong economy 8 Social- Education and Ageing Population 10 Technological- Accessibility 11 2.2 Analysis of the Chinese banking industry 11 2.3- Porter’s Five Force analysis 12 2.4 Culture Analysis 15 3. Mode of Entry 18 3.1 Reasons for mode of entry. 18 3.2 International Theory 18 4 - Conclusion 20 References 20 Aims This report will look at banking giant HSBCs entry into mainland China. The aim is to 1. Provide a brief outline of HSBCs entry into china, including background information on HSBC and China and take a look at the nature and location of HSBCs foreign activity. 2 Identify and analyse the main characteristics of the business environment in China that are likely to have influenced HSBCs decision to operate there. 3 Evaluate the factors that HSBC took into account when choosing its mode of international entry into China. 1. Introduction Globalisation has interconnected the world and is seen by some as an evolutionary process, although it does have its critics. Expansion into foreign markets is as a must for big businesses if they want to...
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...three years, HSBC Holding plc’s profit before tax was 18,680, 22565, and 20649 million dollars respectively. Asia’s profit before tax was 14,625, 15853, and 18030 million dollars respectively. This proportion of Asia’s profit was as high as 78.3%,70.3%, and 87.3%. Therefore, i can believe that HSBC bank’s major profit from Asia. [1] Table 1 shows the profit before tax of geographical regions [pic][2] Why we has goal in Asia? According to the above table, we can see that Asia had the extremely high profit before tax compared to other parts of world. Also, Asia is the region which has the largest number of developing countries in the world. Such as China, India, Indonesia, and Malaysia. Especially, with China’s economic reform deeply, there has more investment opportunities will emerge. Why we hasn’t goal in Middle East and North Africa? We also can found Middle East and North Africa had a continued momentum of increased. But, we still made a decision we hasn’t goal in Middle East and North Africa. There has two reasons, the first reason is there has low level of economic. The second reason is local political instability increases investment risk. Strategic Options and choices In order help HSBC Holding plc to meet the goals and objectives, three strategies, expansion in China, restore customer confidence, product and service development in the next five years. Below are the details of these three strategies: Expansion in China In China, real GDP growth...
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...------------------------------------------------- Charoen Pokphand Group buys share of Ping An from HSBC Holdings Plc Critical Strategic Analysis Prepared for: Mr. Sheikh Morshed Jahan Associate Professor Course Instructor: Business Strategy (W501) Prepared by: Tabassum Jahan RH 59 Batch 18 Bachelor of Business Administration Institute of Business Administration (IBA) University of Dhaka September 24, 2013 What Happened * December 5, 2012 | : HSBC announced that HSBC Insurance Holdings and the Hong Kong and Shanghai Banking Corporation Limited, two indirect wholly-owned subsidiaries of HSBC Holdings plc, would sell their entire shareholdings in Ping An Insurance Co. , China’s biggest private insurer, to the Thailand-based Charoen Pokphand Group (CP Group) at 59 HK dollars per share. | * February 1, 2013 | : Wholly owned subsidiaries of the Charoen Pokphand Group Company Limited received regulatory approval from the China Insurance Regulatory Commission (“CIRC”) to purchase the Ping An Insurance’s shares. The 4 buyers are indirect wholly-owned subsidiaries of CP Group - All Gain Trading Ltd, Bloom Fortune Group Ltd, Business Fortune Holdings Ltd and Easy Boom Developments Ltd. | The whole 15.6% stake was sold for $9.38 billion. HSBC group has already made a $1.9 billion paper profit on the deal as a result of Ping An’s shares being a fifth higher than the HK$59.00 ($7.61) that it agreed to pay. Concerned parties About HSBC HSBC Holdings plc was founded in London in 1991 as a British multinational...
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...OVERVIEW About HSBC BANK Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities. History 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. After the British established Hong Kong as a colony in the aftermath of the First Opium War, local merchants felt the need for a bank to finance the growing trade between China and Europe (with...
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...An analysis of the choice between separated and mixed operation model for ICBC( London) Abstract: Since the fifth wave of Merge and Acquisition in the 1990s, the global banking industries have developed towards the direction of large-scale, international and omnipotent banks. The mixed operation of the commercial banks had already been the leading trend in the 21st century. With China’s entrance into WTO at the end of last century, the Chinese financial institutions, especially the Chinese bank industries, are destined to participate in the global economy and to face the keen competition from the "financial conglomerate" of the western developed countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned commercial banks should make an important decision on whether or not fully introduce the mixed operation for operating in UK. This study analyzes the difference of the operation model of HSBC and ICBC are operating in the UK at present, and examines the advantages and disadvantages of both separated and mixed operation for ICBC (London). Furthermore, it proposes the realistic choice of operation model for ICBC (London) under the existing Chinese financial system and the market condition of UK. This paper argues that the separated operation model of ICBC and investment banks in the short term will not change...
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...History of Bank Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Florence, Venice and Sialkot Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe.[9] One of the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397.[10] The earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.[11] Origin of the word The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths.[12] Definition of bank A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses. Listed Bank operates in Bangladesh Central bank • Bangladesh Bank In 1972 the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank with retrospective effect from 16 December 1971. State-owned...
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...An Analysis of the Culture of an Organization Student’s Name University Contents 1.0 Background to the Organization...........................................................................................3 2.0 Theoretical Framework.........................................................................................................4 3.0 Discussion of Central Topic..................................................................................................6 4.0 Conclusions..........................................................................................................................13 References..................................................................................................................................15 An Analysis of the Culture of an Organization 1.0 Background to the Organization Every organization has a personality that is unique, that individual character in the society is its culture (Barker, 2010). My company of choice for analysis is The Hongkong and Shanghai Banking Corporation (HSBC). I have used this bank to discuss the central topic in my report.As I have found it to have a strong corporate culture that has continued to improve its efficiency, value, performance and ratings over the years. HSBBC is a privately based organization; it was incorporated in 1865 with a primary objective of increasing trade and commerce between Europe and China. The headquarters of HSBC are located in London...
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...1. Situation Audit HSBC it’s a British Multinational bank and financial services. It’s the second larger bank in the world, with offices in 85 countries and 89 million clients. Was founded in Hong Kong and Shanghai in 1865. In 1991 started in London the new HSBC Group Holding. In 2005 HSBC held leadership in Hong Kong Market of credit cards. Credit card is very important for customer acquisition strategies. Credit cards were marketed to HSBC customers through direct mail and the retail branch network. HSBC used demographic information about customers' income and life stage to segment the market. They had 2 different types of customers: * Transactors: were customers who used the card as a convenience or to build reward points, but they would pay their balance at the end of each month. * Revolvers: were customers who used a high percentage of their credit limit and carried a balance from month to month. HSBC organizes its customer-facing activities within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Personal Financial Services (retail banking and consumer finance); and Global Private Banking. Credit card market is growing rapidly in Hong Kong for two main reasons: * Growth of e-commerce * The loyalty and rewards programs. 2. SWOT STRENGHTS * HSBC is one of the largest banking groups in the world, with 9,800 offices in 77 countries across four of the five continents (America, Asia, Europe and...
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...1: Introduction to HSBC Group 1.0 HSBC Mission Statement: “We aim to satisfy our customers with high quality service that reflects our global image as the premier international bank” Objectives of HSBC: HSBC’s objectives are to provide innovative products supported by quality delivery of systems and excellence customer services, to train and motivate staffs and to exercise social responsibility. By combining regional strengths with group network HSBC’s aim is to be the one of the leading banks in its principle markets. HSBC’s goal is to achieve sustained earnings growth and to continue to enhance shareholders value. 1.1 An Overview of HSBC Group The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe. Thomas Sutherland, a Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company helped to establish this bank in March 1865. Throughout the late nineteenth and the early twentieth centuries, the bank established a network of agencies and branches based mainly in China and South East Asia but also with representation in the Indian sub-continent, Japan, Europe and North America. The post-war political and economic changes in the world forced the bank to analyze its strategy for continued growth in the 1950s. The bank diversified both its business and its geographical...
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...INTRODUCTION Company History: The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries. In Japan, where a branch was established in 1866, the bank acted as adviser to the government on banking and currency. In 1888, it was the first bank to be established in Thailand, where it printed the country’s first banknotes. From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880s, the bank was acting as banker to the Hong Kong government and also participated...
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...Strategies of Two Banking Giants Many of us share a fairly basic view of banks. They are places to store money, make basic investments like term deposits, sign up for a credit card or get a loan. Behind this mundane view, however, is a highly regulated system that ties our day-to-day banking back into the wider financial system. Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions like with the banking business. Information Technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets. Internet has significantly influenced delivery channels of the banks. Internet has emerged as an important medium for delivery of banking products and services. As the impact of IT has grown in organizations, IT strategy is finally getting the attention it deserves in business. Nevertheless, most organizations are still in the very early stages of learning how to develop an effective IT strategy and synchronize it...
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...{draw:g} {draw:frame} INTRODUCTION G3 Consultants Inc. has been faced with the assignment of determining the feasibility for HSBC Holdings to invest more money into their Argentine subsidiary. Argentina is currently in the midst of a recession that has lastednearly 4 years. After considerable help from the IMF in an attempt to control impending foreign debt, a mix of Argentina’s political and monetary policies has resulted in the instability of the Argentine economy and the suspension of payments leading to an uncontrollable build up of national debt. The questionable sustainability of the Argentinean government has led to a freeze in the cash flow of foreign investors in the country, consequently placing HSBC as one of the main investors to decide whether or not to permanently cut its losses and fully pull out of Argentina or believe in Argentina’s historical economic climate and continue to invest in the hopes of an outstanding upside to the current crisis. G3 Consultants Inc.’s objective is to evaluate and analyze the crisis and provide HSBC Holdings with a recommended course of action. KEY ISSUES Fiscal Policy Convertibility Plan Structural Reform Throughout the 1990s, G3 Consultants Inc. identifies Argentina as a relatively closed economy based on several factors and with little control to implement the necessary structural reforms. Firstly, the country was fairly closed-off to tradeand while it did remove some barriers...
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...Sheridan, This is the report you request for analyzing and presenting the performance, activity, office policies, strategy, operation and importance of the group. It contains information about HSBC group, its organizational structure and also commercial awareness details. In the first sections I have included a brief history and an overview of HSBC today. In the following chapters I have talked in details about its structure and police offices. The last section brings information about its revenue, net profit and future plans. It has been pleasure and challenge working on this report. Please feel free to contact me in case of clarification or queries on this report. Kind Regards, HSBC I. History HSBC has a rich history, which starts back in 1865. It was established in Hong Kong and, two months later, in Shanghai by Thomas Sutherland and it started from a basic idea: to support trade between Asia and Europe. By 1900 it was extended in Europe and North America, Japan, Thailand, India, Philippines, Singapore, Sri Lanka, Malaysia and Vietnam. During Second World War, the group had to close branches and to move for a while its head office from Hong Kong to London. After the war, it played a key role in reconstructing the Hong Kong economy. In 1992 it acquired Midland Bank and became the biggest financial services organization in the world. HSBC continued to grow all this time and made lots of acquisitions and established a network of branches around the world....
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...resources and capabilities must be needed: EXTERNAL ENVIRONMENT ANALYSIS: - Industry: Financial services Industry value chain: The banking business is customer driven and therefore the banking value chain starts from the market side. The value process starts with advertising a newly developed product or service to the market. Secondly, the product/service is sold to customers, e.g. the credit contract will be signed by the customer. In a third step the product will be provided to the customer, e.g. the credit amount is paid to the account of the customer. Finally the corresponding transactions, like payments, clearing & settlement transactions etc. will be processed. The distribution part of the banking value chain consists of marketing and sales activities. Marketing includes promotion and advertising activities, branding the firm name/products/services and sales support. Sales consists of multichannel management (sales force, internet, call centers, branches), acquisition of customers and offering/pricing. The distribution part of the banking valuechain consists of marketing and sales activities. The value activities from products include the product development process as well as the provision of the product itself, e.g. the payment of the credit amount to the client. All products of a bank can be subsumed under the terms funding, investment and services. The financial intermediation business is reflected in the “funding” and “investment” parts of the product...
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...CASE I - MARKETING SPOTLIGHT- NIKE 1. Nike one the top listed shoe company in the current world begun their business in 1962. The company focused on high-quality running shoes designed especially for the athletes. The key factor for Nike was that they have been able to create strong brand preferences among the customers. Nike created their brand image into consumers mind by using celebrity. The company’s commitments to designing innovative footwear for serious athletes help it build a cult following among American consumers. They run their marketing by using top athletes in their advertisement all over America and found that it put a huge influence to the consumer mind. Nike found that product and brand choices of consumers are hugely influenced by the preferences and behavior of their beloved celebrities. So the company signed an upcoming popular runner named Steve Prefontaine for their advertisement in 1973 and Prefontaine’s irreverent attitude matched Nike’s spirit. At the end the thought of using professional athletes in their advertising campaign proved both efficient and effective. Another important reason for Nike’s success was that they read the consumers mind perfectly. Nike does not sell “Nike air max” shoes, it sold a way of life, which is key to its success. This flag is the incentive for the people, and the philosophy behind the energy and determination, is that everyone concerned, whether you are not athletes. Nike uses a motivational type of language to inspire...
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