- Strategy For Sustainability
- Executive Summary
- External Analysis of HSBC Bank
- Identify how HSBC bank should develop a strategy for sustainability and analyze the challenges
- Identify how HSBC bank should implement a strategy for sustainability and analyze the challenges
Strategy For Sustainability
External Analysis of HSBC Bank
This tool is utilized to understand the macroeconomic factors of the organization which can be helpful in measuring the external opportunities and threats (Longoni, 2014). Its components are the following (Figure 1.2):
Generally, it is considered that the banking services of HSBC are highly covered by the policies and regulations formulated by the different types of government in different countries where they are operating (Almeida, 2015). The organization has the ability to follow all the rules and regulations and accomplish its different business operations under the boundaries fixed by the government. Furthermore, the organization also formulates its own defense strategies besides any governmental limitations and restrictions (Dooly, 2015).
Being one of the leading and competitive business organizations, HSBC bank should have a successful and strong economic strength. The organization is operating in an efficient manner despite the presence of different problems (Wolmarans, 2014). The management of the organization enables it to deal efficiently with its economic factors. This will enable the organization to maintain a healthy economic condition as well as develop a shield against unemployment.
The working of HSBC is highly influenced due to the circumstances of the society in which it is operating (Clune, 2014). Side by side, the management of the organization also ensures that each society gave similar options to take the benefits from the offered resources and facilities provided by the HSBC Bank.
The important thing regarding information technology is to improve internet technology influence the working conditions of HSBC Bank. The organization utilizes internet technology to identify its global customers and also help them in providing the enough knowledge about the recent banking trends which can provide lots of benefits to them (Liedtke, 2013).
It is considered that the organization has large rivals in the financial and banking sectors. Thus, the degree of competition forces the organization to develop efficient strategies to maintain its leadership position in its existing market (Barnett, 2015). In addition, because of the abilities of the high level competitive organization, HSBC formulated different strategic plans to make sure that they are able to maintain its competitive position in its existing market by being the number one choice of customers.
HSBC is also aware of the fact that their competitor organization will offer new services and products in the near future (Gilinsky, 2015). Availability of these substitute products enforces the organization to work hard to maintain its position.
There is a large potential for profits in the finance and banking industry. Due to this, HSBC needs to face more market entry threats (Giannetti 2013). All these threats play an efficient role in making or breaking the organization. In this regard, the organization is able to create some entry barriers to maintaining its competitive position in the market.
It is considered that the power of suppliers represents the power of buyers. This force of external analysis is mainly focusing on significant concentration and size of suppliers which is also related to the different competitors (Egilmiz, 2012). The supplier power force also concentrates on differentiation level in the materials being supplied by different suppliers.
Buyer power is considered the most important factor of the microeconomic environment. It influences the occupation of value formulated by the organization at its marketplace. The main determinants of this force are customer concentration and size of operations. The organization has the capability to manage its customers efficiently which permits the organization to gain customer satisfaction and loyalty.
Apart of Porter five forces model and PESTEL analysis we will also studied the different tools such as competitor analysis, market analysis in the Appendices section of the document.
Internal analysis of HSBC Bank is done to understand the strengths and weaknesses of the organization. To analyze the internal environment of the HSBC Bank SWOT analysis of HSBC can understand by following the figure: 4 mentioned in the appendices section of the paper.
Identification of Performance Gaps
Yes, there is a performance gap between the current outcomes and expected outcomes of the HSBC Bank. The performance gap is known as the difference between the actual performance and future performance of the organization (Egilmez, 2012). There is a huge performance gap between the strategic actions of the organization and its achievement such as the organization want to deliver growth above GDP from the international network, but it is unable to do so. It is because the Average PCM deposits are enhanced by 8%. The performance gap of the HSBC Bank can understand from figure: 6 mentioned in the appendices section of the paper.
Identify how HSBC bank should develop a strategy for sustainability and analyse the challenges
Understanding the context of sustainability: If the organization wants to understand the sustainability context of environmental, social and economic terms the team of the organization should come together with external specialized consultancy management (Wolmarans, 2014). The management of the organization can understand the sustainability context by focusing on its past activities of CSR, agenda of government policy, and different globally recognized guidelines. This stage is the core function because of the efficiency of the next stages based on the outcome of this stage. Consolidating and Reviewing initial research and discussions: It is the responsibility of the organization to conduct initial discussions to mapping the sustainability context (Bai, 2014). It should review and consolidate all its discussions and research outcomes under the supervisory of external specialized consultancy management.
Engage with stakeholders: Stakeholders influence the position of the HSBC Bank in an efficient manner (Ortega, 2014). Generally, the organization is engaged with different influential groups. The developed strategies of the organization should be sustainable as per expectations of the different stakeholders (Al-Kandi, 2013). Enforcing measure and objectives: Once the HSBC Bank has identified available issues, engagement method for every stakeholder have been determined, large level efforts should perform to reduce the available risk in adopting different opportunities related to identified issues. Goals and commitment should determine by the organization to utilize the available resources and opportunities efficiently. Establish processes and systems: Once the organization has developed the objectives, detailed processes and specific systems are required to implement every initiative (Wonglimpiyarat, 2014). For this purpose, the organization needs to develop policies, design and processes. These processes help the organization in attaining its predetermined objective in an efficient manner.Evaluate progress, communicate different actions and fulfil expectations: At last, for developing sustainable strategy, it is necessary for the management of the organization to enforce a system that evaluates the performance of the strategy towards every goal of the organization.
Sustainable strategy planning is considered the one important area of the organization. Nature and type of developing strategy influence the working of HSBC organization in high context (Warth, 2014). The below mentioned are some challenges that are faced by the organization during the formulation of sustainable strategy:
The main important challenge faced by the organization while developing strategy is the engagement of stakeholders in an appropriate manner (Ortega, 2014). The word ‘sustainable strategic planning' can arise fear in the mind of a strategic planning team of the organization. It is necessary for the organization to primarily focus on those activities which generate high success for the business. Engagement of stakeholder is a primary requirement of the organization which should do by organization efficiently.
One of the important, challenging aspects of sustainable strategy development is people. The management of the organization needs to collaborate with the different cultural peoples efficiently (Rothaermel, 2015). Achieving consensus can be critical for the organization. But this can do efficiently by adopting mind mapping and brainstorming processes.
Identify how HSBC bank should implement a strategy for sustainability and analyze the challenges
Institutionalization of strategy: Effective implementation of the strategy requires that the strategy formulator team should act like as defender or promoter. In the absence of the institutionalization of strategy, it does not provide the desired outcome (Doski, 2013). Thus, it is the responsibility of strategists of the organization to represent the strategy in front of employees in such a way that appeals to them and brings their support in performing its activities.
Establishment of suitable business climate: Formulation of relevant organizational climate is necessary for the implementation of a sustainable business strategy (Igli?ski, 2016). The organization which implementing their strategies with more conductive and participative climate are more effective than others. So, the top manager of the organization should shape the climate of HSBC bank by formulating different standards.
Development of suitable operating plan: Operating plans are considered the action plans and decisions that take place in different parts of the organization (Alagoa, 2015). If the organization developed operating plans to represent the desired strategic results, then the organization needs to focus on different factors that are important for implementation of selected business strategy.
Periodic measurement of strategy: The organization should conduct periodic review of strategy and should make sure that the strategy is implemented in the desired direction (Leung, 2014). This can measure the success and achievement of the organization after implementing the required strategy.
The following challenges are faced by the organization in the implementation of sustainable business strategy:
Large time is required by the organization to implement the selected business strategy successfully. Furthermore, the organization requires huge people to implement the strategy successfully. Inadequate or poor sharing of information (Jinlan, 2015) will influence the organization in high context. Inability of manage cultural change bring and restriction from employees for adopting required technology.
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