History And Analysis Of Hsbc Bank Finance Essay

Published: November 26, 2015 Words: 2623

Check the environment, internal and external, is an important part of the strategic planning process. And the environmental factors can be classified into corporate strengths and the normal (S) or weaknesses (W) can be classified as those with business opportunities (O) or threats (T) external. See the SWOT analysis and strategic analysis and environmental.

SWOT analysis of the information, and provides useful resources and capabilities to match company's competitive environment they operate. Thus, it is instrumental in strategy development and selection. The following chart, SWOT analysis, shows how to comply with environmental research:

SWOT Analysis Framework

Environmental Scan

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Internal Analysis

External Analysis

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Strengths Weaknesses

Opportunities Threats

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SWOT Matrix

Strength

Mino Tsuyoshi company has resources and capabilities can be used as the basis for the development of its competitive advantage. The following examples of these strengths:

• Patent

• Strong brand name

• Good reputation among customers

• Cost of ownership benefits expertise

• exclusive access to high quality natural resources

• Enable access to distribution networks,

Weakness

As a point of weakness can be considered to have no particular power. For example, one can consider each of the following weaknesses:

• Lack of patent protection

Brand name? Weak

Bad reputation among customers. •

High cost structure. •

• Lack of good access to natural resources

• Lack of access to key distribution channels

In some cases, may force the other side of weakness. Please have this problem in large manufacturing companies. This feature can be seen as not sharing the intensity of competition, large-scale investment in production capacity, even if weaknesses can be considered to prevent the company from responding quickly to changing strategic environment may.

Opportunities

External environment analysis of specific new opportunities for growth and profits. Contains several examples of these opportunities:

Unmet needs • Customer

Advent of new technology. •

• Relaxation of regulations

• to, remove barriers to international trade

Threat

Changing external environment has also might present a threat to the company. Contains several examples of such threats:

• Shift in consumer preferences away the company's products

The emergence of substitutes.

• New regulations

•, growth of trade barriers

SWOT table

The company cannot always get favourable opportunity. Instead, their strong point, you might have a better chance to develop a competitive advantage by identifying the country where opportunities for companies and makeshift. In some cases, the company will pursue opportunities to disguise themselves in order to prepare your order, you can overcome the weaknesses.

Consider developing a strategy to take a SWOT profile, you can build a matrix of these factors. Show map below SWOT matrix (also known as matrix withdrawal):

SWOT / TOWS Matrix

Strengths

Weaknesses

Opportunities

S-O strategies

W-O strategies

Threats

S-T strategies

W-T strategies

SO's strategy is to pursue opportunities to suit all of its strength.

Opportunity to overcome the weaknesses of university education strategy

Strategies, in order to reduce vulnerability to external threats companies identify how to use power.

Weakness: weight strategic plan is to prevent weakness in the defense company that makes them vulnerable to external threats.

HSBC

HSBC in London, a global financial services company based in the UK. Beginning in 2010, it is up to eight, and financial services companies in the world's six largest banks, according to multiple criteria by Forbes magazine. This is the 87 countries in Africa, Asia, Europe, North America and controls approximately 100 million customers in 8,000 offices throughout the region and South America. 2418000000000 dollars in total assets as of June 30, 2010 with nearly half the quarter was in Europe, America, Asia Quarterly.

In 1991, the Hongkong and Shanghai Banking Corporation Limited established in London at HSBC Holdings plc, the holding company to serve as the new group to enable the acquisition of Midland Bank of Britain-based company. Assets of banks in Hong Kong, Shanghai, he was open to the first branch in 1865. Today, HSBC Group Head Office of the Executive's current president, he is now the largest international bank in mainland China, the latest developments in Hong Kong remains the largest bank in the back part of the root.

The list is essential for the London Stock Exchange, which, FTSE 100 Index constituents. This is Hong Kong (if they consist of Hang Seng Index), the New York Stock Exchange, Euronext, the stock market appears secondary Bermuda stock exchanges. As of August 2010, £ was the largest company listed on the London Stock Exchange market value of 115.8 billion.

History

"Hong Kong and Shanghai Bank," original shortcut) of HSBC: Tomasusazarando, Scotland (1834-1922), Hong Kong (March 1865), the former British colony of Shanghai (one month later) was established. The inaugural HSBC Holdings plc, was founded in 1990 and rebuilt as a residence for the ownership of the impending transfer of sovereignty to China and Hong Kong prelude to buy it from the British Midland Bank HSBC Bank, Ohng The company is the parent company. HSBC, HSBC Midland Bank Holding Group, gave a mass market to purchase was completed in 1992 in England. As part of the conditions to win to buy Midland Bank, HSBC Holdings, in 1993, in London, it was necessary to move the headquarters of the world from Hong Kong.

March 1997 Bamerindus Bank SA de Roberts in May 1997 and 10 billion dollar purchase of Inversiones Argentina, Brazil, Gets U.S. $ major acquisitions began in South America and 600 meters.

In May 1999, HSBC has $ 10.3bn, embarked on large-scale acquisitions in the United States, New York Ripaburikkunashonarubankuobu.

Access to credit, business in France, £ 6.6bn of French banks, in April 2000, took the expansion of the European continent.

In July 2001, HSBC's Demirbank, bought a Turkish bank bad. Then, in August, the 2002 HSBC Grupo Financiero Bital, SA de CV in the acquisition of Mexico's third-largest retail bank with 1.1 billion dollars.

8 In the courtyard of the new headquarters of HSBC Holdings Canada, was officially opened in April 2003 in London.

Then, in September 2003 for $ 7.8 m bank HSBC has bought a sign of Poland SA Kredyt Polski.

In June 2004, HSBC is the Bank of Communications in Shanghai, China to expand 19.9 percent in Canada.

HSBC UK, in December 2004 £ 763 Marks & m got a spare sensor

Metorisuiraku 2005 acquisition of National Assembly, U.S. credit card is $ 1.6 billion in August, Dar Es Salaam Investment Bank of Iraq is the source of 70.1 percent in October.

In April 2006, HSBC has $ 155 m in the number of banks bought Aruzenchinnatsuionarederu of 90 branches.

December 2007 HSBC, the bank acquired the Chinese in Taiwan.

In May 2008, the Indian retail brokerage HSBC acquired for investment and financial services secretary.

SWOT analysis of HSBC

Strengths

The bank is well capitalised and this has enabled it to perform relatively well against other banks in recent economic events.

The level of capitalisation means that, going forward, the bank is unlikely to need to borrow from the UK government: this will enable it to retain more autonomy.

The bank has a strong presence in emerging markets, putting it in a good position to take advantage of future growth in those economies.

The bank's global presence in Europe, Asia and South America helps to spread risk and offers significant economies of scale.

Despite rebranding relatively recently (1999), the HSBC brand has become well-established and is considered particularly valuable within the industry.

Weaknesses

HSBC associates itself strongly with investment in the small business sector, but the current economic situation has led to increased risks, potentially compromising the activity levels in this area of the operation.

The bank was involved with sub-prime markets in the US and has had to write off large figures lent to high-risk borrowers.

Despite falls in the UK interest rate, HSBC has increased its mortgage rates. This may be perceived negatively by borrowers and potential borrowers, adds pressure to an already depressed housing market and could ultimately lead to more defaulting as borrowers struggle with higher repayments.

A redundancy programme announced recently may affect morale among staff, leading to decreased production and loyalty.

HSBC's branding emphasises its global presence, and this may be seen negatively by some customers in its implication of homogenisation and lack of personalisation.

Opportunities

HSBC's high level of capitalisation places it in a strong position to acquire assets

Banks finding trading conditions particularly difficult at present may be available at low cost

HSBC also has adequate capital to purchase stronger banks such as Bank Ekonomi in Indonesia, in which it has purchased a stake to continue its Asian expansion despite challenging economic times.

HSBC's generally strong position presents the opportunity to outperform competitors during the economic downturn and to build a reputation for being one of the safer banks for depositors, helping to increase resources for lending.

Negative press coverage of competitors such as HBOS may encourage customers to choose HSBC instead.

Threats

Trust in banks has decreased due to financial losses suffered by investors, who may be more inclined to invest elsewhere.

Financial losses affecting banks and investors on a global scale have resulted in less credit being available to customers. In the UK this is coupled with increases in living costs resulting in less money being saved.

The falling property market has created a rise in numbers of homeowners with negative equity. If a property is worth less than was borrowed to finance its purchase, there is little likelihood that the bank will recoup all its losses if owners default.

Claims have been made that HSBC has understated losses resulting from US sub-prime markets, and this could undermine confidence in the bank.

Literature

Article 1:

HSBC moves private bank boss Chris Meares to Asia

The head of HSBC's private banking business has become the latest of the bank's senior managers to move from London to Hong Kong.

By Harry Wilson

Published: 6:00AM BST 22 Oct 2010

Chris Meares, chief executive of global private banking at HSBC, will move out to Hong Kong as part of a reshuffle of the division's management, though the business's will remain headquartered in London.

Mr Meares move to Hong Kong follows that of HSBC chief executive Michael Geoghegan at the start of the year.

Since then several senior HSBC managers have moved out to Hong Kong, while Stuart Gulliver, who will takeover as chief executive from Mr Geoghegan in January will also move from London to Hong Kong.

Mr Gulliver, who currently runs HSBC's global investment banking business as well as its European operations, has spent much of his career in Asia.

Speaking recently, he refused to confirm whether HSBC's headquarters would remain in London, with speculation growing that the bank could return to its historic home.

In September, Mr Gulliver said he was "genuinely concerned" that the Government-appointed Independent Banking Commission could recommend the separation of retail and investment banking businesses.

Hong Kong is keen to promote itself as an alternative to London and the senior officials from the city have been visiting the UK to promote the advantages of moving business there.

Standard Chartered, which has large Asian operations, is also seen as another bank that could move its headquarters out of London and its chief executive, Peter Sands, has made clear his concerns over the increasing amount of regulation in Europe and the UK.

HSBC's decision to move of its private banking head to Asia in large part reflects the opportunities the bank sees in capturing a larger slice of Asia's growing wealth.

In a statement yesterday, HSBC said Mr Meares, along with the other management changes in its private bank was part of a strategy to "take advantage of the entrepreneurial wealth creation taking place in emerging markets".

Analysis of materials

This article is regarding transfer of chief executive of global private banking,Mr Chris Meares, who is being replaced by Michael Geoghegan at the start of this year.

Since the transfer of Mr Meares several more managers of HSBC have moved out of Hong Kong. Mr Stuart Gulliver who is taking over Mr Geoghegan is also moving out of Hong Kong

Mr Gulliver, currently running HSBC Investment Banking and European Operation, has spent much time in Asia.

He recently, while talking to media, refused to confirm that if the business is moving its headquarters to its native home that is Hong Kong.

In September Mr. Gulliver expressed genuine concern over Independent Banking Commission appointed by government to recommend separate banking for Retail banking and Investment Banking.

Hong Kong section of HSBC is much interested in promotion itself as an alternate to London. Official of Hong Kong are visiting UK to convey advantages of moving to Hong Kong.

Standard Chartered, having large Asian operation is also seeking to move its headquarters out of London and their chief executive too.

HSBC's idea of moving its private banking head to Asia reflects the opportunities that the bank is seeing to capture Asia's growing wealth.

Conclusion

Positive points: -

• It helps to increase profits of the company.

Asia helps to acquire wealth •.

• Provide opportunities for job

Help the company further improve •.

Efficient and effective work of the department •.

Negative points: -

Very risk

Can lead to losses

Can also lead to demoralisation of other managers.

Article 2:

HSBC, Deutsche Bank Complete 1st Yuan-Denominated IRS In HK

OCTOBER 22, 2010, 6:01 A.M. ET

HONG KONG (Dow Jones)--HSBC Holdings PLC (HBC) and Deutsche Bank AG (DB) completed the first yuan-denominated interest rate swap deal in Hong Kong, the U.K. lender said Friday, in another sign of growing activity in the offshore yuan market.

The IRS deal, which was completed Thursday, will be delivered in two years and is based on the three-month Shanghai Interbank Offered Rate of 3.37%, HSBC said.

HSBC declined to disclose the size of the deal, though a local broker said the deal was valued around CNY5 million.

The new deal came amid China's efforts to boost yuan circulation in Hong Kong and to internationalize the currency.

The market for yuan-denominated instruments outside mainland China has begun taking off as China experiments with loosening its controls on the currency, which isn't freely convertible.

Yuan IRS products in Hong Kong had earlier been denominated in the U.S. dollar and were non-deliverable.

Analysis

HSBC completion rate of one yuan-denominated interest rate swap agreements, Deutsche Bank is another sign of the original enzyme activity and overseas market (IRS) .

This transaction was completed in two years according to Thursday Interbank offered rate of 3.37 percent in Shanghai, will be delivered in three months.

He said that in order to clarify the magnitude of the local broker HSBC contract is rejected transactions are estimated to CNY5 millions.

The agreement came after China's efforts to promote the circulation of RMB in Hong Kong in international currency ants.

Currency is not freely convertible financial instruments denominated in Chinese yuan in China from taking off, are beginning to experience that facilitate control over.

Already yuan and U.S. dollar denominated non-delivery of Hong Kong products IRS

Conclusion

Positive points: -

• The increased activity at the source of the foreign market.

• Promotion of legal instruments denominated in yuan out of China.

• China eases its controls on the yuan currency.

• internationalization of the currency.

• Promotion of IRS products.

Negative points: -

Delivering in two years.

Big market of US to compete with,which can result in losses

BIBLOGRAPHY

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8079081/HSBC-moves-private-bank-boss-Chris-Meares-to-Asia.html

http://online.wsj.com/article/BT-CO-20101022-704524.html

http://en.wikipedia.org/wiki/HSBC

http://www.microfinancefocus.com/news/tag/hsbc