Vision, Mission, and Values of HSBC Bank - Case Study Example

Table of Contents Business organisations: Their aims, stakeholders, and responsibilities. 3 1Vision, Mission and Values of HSBC bank 3 1.2The extent to which HSBC has achieved its objectives 3 1.3Responsibilities the bank has and how it fulfils them 4 2Businesses and the National Environment 4 2.1Systems that control resource allocation in the UK economy 4 2.2Impact of fiscal and monetary policy on businesses in the UK 5 2.3Impact of competition policy and regulatory mechanisms 6 3Organisational Behaviour in the Market Environment 7 3.1How market structures determine pricing and output decisions of businesses 7 3.2 How market forces shape organisational responses 7 3.3How HSBC behaves when affected by business environment 8 4International environment 9 4.1Significance of international trade to two UK businesses 9 4.2 Main global factors currently affecting UK businesses 10 4.3 How EU policies impact on UK business organisations 10 References 12 1. Business organisations: Their aims, stakeholders, and responsibilities. 1.1 Vision, Mission and Values of HSBC bank HSBC’s vision is to be Turkey’s leading, powerful, profitable and admirable bank through exemplary service to millions of customers all over the world. In its endeavour to achieve this vision, the bank values its customers and as such provides quality service. It is enshrined in HSBC’s mission and vision to lead in new search for markets coupled with technological innovation that is expected to yield increased customer confidence in the long-term. The bank’s mission is to achieve ethical values that meet customer’s financial desires in a quick, convenient manner and to continue developing technological infrastructures that will offer unique service packages to all bank clients. In its mission, the bank endeavours to build strong markets in various parts of the world. In addition, HSBC aspires to build a strong customer relation that is keen in upholding excellent service delivery, sales and solutions. It is worth noting that the bank desires to achieve morally based long tern proceeds for all stakeholders. To achieve these objectives, the bank is keen in developing strong team players that will work to produce excellent results. A rewarding and challenging business environment is vital for any business to grow and as such the bank continues to develop a decent working environment for its workers. HSBC aspires to specialize in various banking groups by upholding a commitment to interior philosophies and banking values. 1.2 The extent to which HSBC has achieved its objectives HSBC bank is one of the leading banking institutions in Turkey in customer service. This lead is attributed to an excellent working environment for its employees and other stake holders. The working environment is conducive and friendly promoting excellence in customer service. In addition, the bank has over years created strong team players keen at creating service packages that will attract wider markets. The bank has invested greatly in technological innovations that have seen customer service taking place online. Indeed the bank has achieved its objectives despite few challenges that are common to other financial institutions. 1.3 Responsibilities the bank has and how it fulfils them HSBC’s core responsibility is to provide financial services to its customers. It is for this purpose that the bank has continued to build a strong customer service that is keen at keeping the promise of high level service delivery and financial solutions amid the dynamic corporate environment. In its corporate social responsibility, the bank invests in the education of needy students at all levels of study. The bank also invests in other sectors of the economy such as environmental conservation, health care and agriculture. 2 Businesses and the National Environment 2.1 Systems that control resource allocation in the UK economy Resources are scarce in nature. Therefore, it is far much paramount to device a good and effective mechanism to allocate these resources. It is for this reason that the United Kingdom has developed a strong resource allocation mechanism that is geared towards a fair allocation of resources to boost optimum advancement of their economy. The mechanism developed should always direct allocation systems on how, what and who the resources are to be allocated. Different countries use different mechanisms since the chosen mode depends on the existing systems. For instance, in a command based economy, planning matters are dictated by the government of the day. In a free market financial system cost determination mechanism is controlled by end user spending. However, in a mixed economy both state planning and price mechanisms dictate planning and resource allocation. Whichever the selected system, the key aspect is effective allocation that will steer quick economic growth. The United Kingdom uses mixed economy mechanism to allocate resources. This is because the system brings together buyers and sellers in trade owing to thriving product, factor and capital markets. 2.2 Impact of fiscal and monetary policy on businesses in the UK Fiscal and monetary policies are often drafted by governments with intent of either taking control of the macroeconomic variables or dictating the level of economic activity through taxation. In the United Kingdom, the government follows a set of strict objectives which includes among others; low inflation rate of utmost 2 %, a powerful economic growth by ensuring zero inflation rate, increase employment and limit deficits on financial accounts. It is important to note that, in the United Kingdom, formulation of the fiscal and monetary policies lie in the jurisdiction of the Bank of England. In this regard, the bank independently sets interest rates whereas the government sets the inflation rate which should not be more than 2%. The interest amount depends on the projected inflation. Increased interest rates indicate a drop in demand which is a sign of a slugging economic growth. In the event that the UK government senses a slugging economic growth, a reduction of interest rates is called for to reduce inflation rates and amplify economic growth. It is important to note that fiscal policies do not play a role in practise though it is theoretically applied in preventing recessions and inflations. Governments perform various functions in setting monetary and fiscal policies in many countries this is not different with the UK. They do so by setting taxation limits, drafting legislations. Any change in fiscal and monetary policies can have an effect in business. Businesses often undergo repeated cycles of recession, recovery and expansion. The length of their existence is dictated by fiscal policies. During expansion, everything is okay as this indicates a positive economic growth characterized by increased employment and increased consumer spending. However, during recession often characterized by shutting down of businesses and reduced sales. This condition often calls for action intended at reshaping the economy and to grow into a new cycle. Fiscal policies cause a change in taxation rates and spending. This results into increased taxations, limited disposable income and a consequent drop in investment in important sectors of the economy such as in jobs and infrastructure. Sometimes, the fiscal policy may limit the size of stimulus spending causing a drop in availability of short term jobs. Fiscal policies often tilt short term rates which consequently has an impact on the long term rates. A good monetary policy is one that seeks to lower interest rates for businesses. It should also support increased disposable income for customers. These conditions contribute to increased business activities and huge profit margins. For instance, a decrease in mortgage rates spurs increased house buying business. In addition, any change interest rates can impact on stock prices leading to either a low or high consumer spending. 2.3 Impact of competition policy and regulatory mechanisms The core aim of a competition policy is to advance competition and make market function in a fair manner. It is vital to note that any government regulations need not restrict market competitions through unfair price fixation or other forms of regulatory abuses. This is because such anticompetitive regulatory mechanisms scare investors. HSBC bank faces stiff competition from other financial service providers. However, tax regulations authorities have over years promoted fair completion among all financial institutions through promotion of fair market completion policies. 3 Organisational Behaviour in the Market Environment 3.1 How market structures determine pricing and output decisions of businesses Market structures are vital determinants in pricing and output decisions in businesses. Different markets exist in different economies. Similarly different pricing and output decisions exist in different markets. The two, pricing an output decisions, normally operate interdependently except in situations of ideal competitive markets where prices in a single organisation may play insignificant role in affecting that of the entire market. In such a situation, the company may not have an option in determining the price as they will be forced to accept the price offered and decide on the quantity they will be willing to supply. Unlike in a monopolistic market where prices are dictated by the suppliers of commodities, this type of market operates on marginal cost. However, in an oligopolistic market, pricing decisions are determined through strategic interaction among organisations. 3.2 How market forces shape organisational responses Market forces are determinant factors that control how supply and demand play in the market set up. It is vital for organizations to respond swiftly to these factors in order to save their economical base against downfall. The type of response adopted will go a long way into determining profitability and reputation of the organisation. Most successful companies such as HSBC normally carry out thorough market research and analysis with intent of preparing services that are in tandem with customers’ demands. This ensures that whatever the customers demand is availed at the right time, quantity and quality. Therefore customers are kept happy and contented with the services offered. In addition, the company will be able to stock what is just sufficient to cater for customer demands based on the judgement and indicated margins and hence maximize profits. It is quite important to understand and have proper interpretation of the market forces to avoid an instance of over supplying or under supplying. In these two instances, the company’s profits as well as reputation will be put at stake as under or over supplying tarnishes customer confidence. 3.3 How HSBC behaves when affected by business environment Business operations and flow are often affected by external forces. Since these factors can’t be internally controlled, changes in management, production and marketing need to be put under control. HSBC reacts differently to different factors. Some of these factors include; Political –HSBC reacts swiftly to tax policies and government regulations. The bank does so through compliance and adjustments of market forces. Environmental – HSBC participates in environmental programs in particular risk assessment which help the bank solve short term problems. Economic-The bank’s position in the event of recession, increased market size and inflation is based on organisational future planning while operating in the present. Legal –this is a vital aspect in management of businesses. HSBC is always cautious about labour laws. Compliance to the set regulations is what the company does. Social –HSBC responds to social factors by redefining workers’ job descriptions and consumer preference on demand. Technological – the bank invests largely in technological changes. This is done after a careful study of emerging technologies to ensure the best is chosen out of the available choices. 4 International environment 4.1 Significance of international trade to two UK businesses Various nations export or import for a number of reasons. First, they do so in order to expand their economic territories. Some export so as to help ailing sectors of their economy. Secondly, some nations take international trade in order to aid them with income and for local consumption. International trade is vital for the UK economy because of the following reasons. Widening of markets and horizons- businesses in the UK trade with other nations in order to maximize their potential economic growth. trading with international countries increases the number of customers as well as the volume of sales To achieve lower production costs-it is important that businesses in the UK trade with their counterparts in other nations as they may get access to lower production costs in countries they trade with. For instance a certain company may decide to produce a certain product in a foreign country whose production cost is less. Get access to raw materials from other nations who have plenty of a specific commodity. 4.2 Main global factors currently affecting UK businesses There are several factors affecting businesses in the United Kingdom. These factors include; a change in social structures which in turn affect tastes and preferences among the populations. A slight change in age and gender has a consequential impact on the market situation and customer behaviour. Government policies affect businesses in the United Kingdom. For instance, changes in tax policies and regulations which will negatively impact on profit margins. Moreover, technological advancements in transport and communications have had a positive impact in the UK businesses through speeded delivery of goods and services. Other factors include labour and capital migration and environmental degradation. 4.3 How EU policies impact on UK business organisations European Union policies advocate for adherence to tax regulations. They do this through a number of ways. First, the European Union control businesses in the UK through taxation and control of expenditure. It does so by laws regulations and directives. Secondly, European Union ventures in encouragement of investors through business support initiatives and subsidies made on taxes. In addition, the EU provides advice to organisations in matters related to investments. The controls and directives are important to HSBC because through proper implementation by the member states inflation and other business inhibitors are checked. References FERNANDO, A. C. (2011). Business environment, New Delhi, Pearson SALEEM, S. (2006), Business environment, New Delhi, Pearson Education SALEEM, S. (2010), Business environment, New Delhi, Pearson WHITTINGTON, R. (2013). Wiley CPA Exam Review Focus Notes, Business environment and concepts 2013, Hoboken, N.J., Wiley http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=531688 Read More