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 ANALYSIS
Strength
Strong capability in CB, PFS and
certain parts of CIBM
Large market share in Hong Kong
Economies of scale through
various financial services
Historic strength in traditional
banking
Opportunities
More room to grow in in Europe
outside the UK
Key opportunities lies in Asia
specifically china and middle east
Opportunities in Latin America
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Weakness
•Less presence in private banking
•Problem in maintaining vast
network and product categories
Threat
Service providers hijacking
payment system/e system
Fast pace of consolidation among
peers, using acquisition to enter
new regions and business
group 8 7
 BCG MATRIX

At present HSBC is cashcow and will remain cashcow in future

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 ANSOFF MODEL

HSBC is entering in new market with new product so it is diversification

And in future it will be same

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 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 network
Technology driven business and banking.
Localized based international business.
Opportunities of HSBC:
More room to grow in in Europe outside the UK
Key opportunities lies in Asia specifically china and middle east
Opportunities in Latin America
Threats of HSBC
Service providers hijacking payment system/e system
Fast 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 offering
Providing full range of products.
 THANK
02/06/09
YOU
group 8 23