HSBC Analysis Report - Essay Example

The analyses would assist in identifying the unique capabilities of the bank. The performance of the various analyses would also facilitate to get an understanding on the needs and ways to enhance the competitive edge of the bank. Therefore, the analyses would not only assist in understanding and recognizing the capabilities and weak areas of the organization but would also assist in structuring strategies or plans so as to augment the capabilities and improve on the weak areas. The analyses would be conducted with the application of various management tools like SWOT analysis which would assist in identifying the internal capabilities and weaknesses of the bank.

Five-force analysis would assist in identifying the competitive advantage of the organization and would also facilitate to design plans to further enhance the competitive advantage of the bank. And, a PEST Analysis would assist to comprehend the business environment in which the organization is presently operating and to recognize the potential prospects as well the potential risks and work on them accordingly. Table of Contents Table of Contents 3 About the Organization 4 External Analysis 6 PEST Analysis 6 Internal Analysis 8 SWOT Analysis 8 Five Forces Analysis 10 Addressing the Four Generic Blocks of Competitive Advantage 14 Distinctive Competencies 14 Differentiation Strategy 15 Strategic Alliances 15 Major Problems That Needs to be Addressed 15 Recommendations 16 References 17 Bibliography 19 About the Organization HSBC claims to be the local bank of the entire world.

The bank has its head office in London and is considered to be the biggest organization in the field of offering services related to banking and finance globally. The bank’s worldwide network includes offices above 9500 in numbers in and around 76 countries as well as territories in Asia-Pacific area, Middle East, Europe, Africa and also America. Similar to the other banks, HSBC also operates with a profit motive. Attaining its purposes and goals by sticking on to its principles has facilitated the organization to keep up profitability along with soaring ethical standards (HSBC, 2011).

The bank focuses more on local investments and depends on it for economic development. The bank’s chief four businesses are Private Banking, Personal Services related to Finance, Global Banking and Commercial Banking. The individual sectors associated with the mentioned businesses facilitate the bank to tie together the international economic tendencies of providing services to both the present and budding markets (HSBC, 2011). The bank is formally known by the name of HSBC Holdings plc in the UAE.

HSBC Holdings plc is said to be the biggest banking organization in the entire world and is said to hold the sixth position globally for being among the leading companies (HSBC, 2011). HSBC commenced operating in the UAE since the year 1959. It was in this year that it obtained The British Bank of the Middle East which was established in the year 1889 in London. This was the bank that guided the way towards banking services in that particular region and was learnt to be the sole bank that was dedicated to provide service in that particular area for decades (HSBC, 2011).

Apart from the acquisition, the bank also formed new local alliances. In the year 1978, the business of the bank was handed over to another fresh bank in Saudi Arabia. The new bank was known as the Saudi British