HSBC

HSBC



HSBC

Company Overview

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 (HSBC, 2009).

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.

External Environment

The external audit of HSBC shows that its external environment is exceedingly hostile. Both global and domestic outlook is at its lowest and slow recovery is expected. A survey and interview of Chief Finance Officers of the FTSE 100 by Deloitte revealed that market sentiment would take time to recover from the aftershock of the global recession (Euronews, 2009).

The political and legal landscape is likely to be volatile with new political parties taking the seat government. It is likely that the change in ruling parties would bring new reforms to change the old structure of the financial system. It is to be noted that changes in regulations in the United States may also heavily affect operations in the United Kingdom as globalisation and offshore banking is taken into account.

Social and environmental factors point out that China and India would be the biggest market for financial services in the coming decade. Aging population and a longer lifespan in the advanced economies would likely mean a prolonged relationship between banks and their customers. As higher level education becomes increasingly relevant in the coming years, it is likely that future customers emerge as more demanding and having a better knowledge of banking activities. Recent environmental campaigns also mean that companies must be seen to be environmental friendly before being deemed socially responsible (Aman, 2009).

Technological achievements in the 21st century would bring many changes to the structure and system of banking. Globalization would bring foreign banks into domestic doorsteps while better telecommunications would increase the price transparency in the industry. Barriers to entry to the banking industry are also collapsing as the traditional branch network becomes ...