HSBC LAUNDERING SCANDAL

HSBC is one of the largest international emerging markets bank and financial services organizations, which has decided to launch concrete strategies to attain “The World’s Local Bank” in the financial industry. Accurately, the financial flows and economic development are the two long-term trends of HSBC’s strategy is aligned with trends that will shape the global economy. The network of businesses connecting the world and the wealth management and retail with local scale are the two parts of the strategy that based on theses long-term trends and their competitive position. Implementing HSBC’s strategy has across relies on three area. The first area is capital deployment that includes five filters which are evaluation criteria, namely international connectivity, , economic development, profitability, cost efficiency and liquidity. The second is cost efficiency that launches four programmes which are implement consistent business models, re-engineer operational recesses, streamline IT, and re-engineer global functions. The last area is growth, “Our global positioning is to be the world’s leading international bank”, said by HSBC’s group head of advertising and marketing Andrea Newman. Overall, the HSBC’s strategy focus on markets where wealth is being created and emphasis on retail banking and focus developed markets businesses on international connectivity.

Work Cited

“Our Strategy” HSBC Holdings plc, HSBC. April, 2013. Web. 3 April, 2013.

http://www.hsbc.com/about-hsbc/our-strategy

“HSBC: The World’s Local Bank No More” Rayana Pandey, Global. Marketing-interactive.com,Web. February 07, 2012. Web. 3 Apr 2013.

http://www.marketing-interactive.com/news/30818

According to their main website, it shows that HSBC is already having a competitive long-term strategy. Their strategy is aligned to two long-term trends, which are financial flows and economic development. In their word, “HSBC is one of the few truly international banks, and our advantages lie in our network of markets relevant for international financial flows, our access and exposure to high-growth markets and businesses, and our strong balance sheet generating a resilient stream of earnings”. Base on the long-term trends and competitive position, HSBC has two parts of strategy: network of businesses connecting the world and wealth management the retail with local scale, in order to capture the growing international financial flows and capture social mobility and wealth creation through their Wealth Management and Private Banking business. In addition, there are three areas which their strategy relies on, capital deployment, cost efficiency, and growth.

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• Environmental and Industry Analysis

What environmental factors influence the operations and competition in this industry? Consider the entire spectrum of political, legal, economic and other factors that shape the structure and nature of this industry. What determines success in this industry? In other words, what key success factors must firms satisfy to survive and compete well in this industry? Provide your logic, illustrate with examples or whatever ammunition you can find. Analyze the industry structure. What are the key segments? What stage of the life cycle of the product(s) is the industry in?Who are the major suppliers? Who are the major buyers? Are there any substitutes? Do the suppliers or buyers constitute a threat through forward or backward integration?How does your preceding industry structure affect competition? Who are the key competitors?What are their strengths and weaknesses? Where and how do they compete? What environmental, competitive, technological and other trends (opportunities and threats) are likely to affect this industry as a whole in the next decade and beyond?

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Hey Guys!

I did some research on HSBC and looked into their 2012 Annual Reports. Here is my take on the MNE profile including their strategies and background info. Post your research to this post so we can then condense and make into an official MNE Profile for our class website.  Also my references are at the bottom. 

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