PART-1: INTRODUCTION

Origin of the Report This report has been assigned to me during my internship period at HSBC by my organizational supervisor of HSBC, as a core requirement for the completion of my BBA program from North South University. My faculty advisor Mr. Bashir Hussain has also given me approval to do this particular report on the topic of Relationship of HSBCs Customers Involvement and their satisfaction level. Objectives The goal is to identify the main reasons of client dissatisfaction and find its relationship with a clients level of knowledge about the banks services. In order to accomplish my goal I have identified one important observation and that is the relationship between clients knowledge on the services provided by the bank and the actual services that are available by the bank for them. Disparity in such cases often result in the most common forms of client dissatisfaction Satisfaction of these services depends on many variables but most importantly on two factors: 1. The level of service provided to clients as promised by the bank. 2. And the level of services expected by the clients.

I have also tried to find out the following aspects: Finding out about the clients Clients level of involvement with the bank How updated clients are with banks services

Significance of the study This study will establish that there is a basis why expectations and goals need to be aligned and why the misalignment causes unsatisfactory results. The goal of HSBC is to satisfy its clients;

therefore the bank needs to communicate to its clients about the services available to them by HSBC. On the other hand the clients need to be aware of what the bank is communicating to them. If the clients choose to remain uninvolved with their bank then their level of expectation will be very difficult to match as there would be no basis on those expectations. Client dissatisfaction arises based on their expectations supported by their lack of staying updated with information as provided by the bank. Hence the study is important as it will prove that when it comes to client satisfaction the clients are also as responsible in staying aware and updated on the banking services as well as the bank is responsible to deliver services as promised. Hypothesis With reference to all the above, therefore the hypotheses of this report are The level of customers satisfaction about the services provided by HSBC is positively related to the level of customers exposure about the banks service packages. Customer expectation of service matches banks service promise. Customers are updated of the banks services Customer are highly updated Methodology In order to attain the objectives, collection of primary data was necessary apart from secondary data. The primary data is used to run tests and as such. Therefore the methodology included: Conducting a survey among 54 clients of the bank with more or less equal distribution between male and female. (appendix) Checking the data for noise Running tests based on the data generated. Give meaning to the results manifested by the test runs. Conclude on the hypothesis test.

Limitations of the study

The collection of data for this report has been difficult because it is hard to ensure the authenticity of the data. Even though the bank has provided numbers for the report, I have been informed that the data was distorted to a reasonable degree, due to security and confidentiality concerns of the bank which it deemed as inappropriate to disclose outside the bank. Hence, the validity of the information gathered is somewhat questionable.

Finding suitable sample which will represent all customers of HSBC.

The sample of customers used to make judgment about the population may be biased.

Satisfaction is a subjective issue and varies among individuals

Moreover, time for finishing this report has been another factor. Due to late working hours of the bank, most part of the report had to be completed after the intern period in the bank was concluded.

PART-2: HSBC GROUP

Background HSBC was born from one small idea a local bank serving local needs. In March 1865, HSBC opened its doors for business in Hong Kong and today it welcomes customers all over the world. The intervening years have formed the character of HSBC. Its experiences have created its core strengths of resilience, adaptability and capability for innovation. HSBC has weathered change in all forms revolutions, economic crises, new technologies and has adapted to survive. Growth has come organically and through strategic acquisitions, and these purchases have brought their own strengths and cultures to the Group. Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBCs international network comprises of over 10000 offices 83 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 held by nearly 200,000 shareholders in some 100 countries and territories. He shares are traded on the New York Stock Exchange in the form of American Depository Receipts. Through an international network linked by advanced technology, including a rapidly growing ecommerce capability, HSBC provides a comprehensive range of financial services like personal financial services, commercial banking, investment banking and markets, investment banking, private banking and other services.

The HSBC Group has an international pedigree, which is unique. Many of its principle companies opened for business over a century ago and they have a history, which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.
EVOLUTION OF HSBC GROUP

The Hong Kong and Shanghai Banking Corporation Limited was established in 1865 in Hong King and Shanghai to finance the growing trade between China and Europe. Thomas Sutherland,

a Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company helped to establish this bank in March 1865. Throughout the late nineteenth and the early twentieth centuries, the bank established a network of agencies and branches based mainly in China and South East Asia but also with representation in the Indian sub-continent, Japan, Europe and North America. The post-war political and economic changes in the world forced the bank to analyze its strategy for continued growth in the 1950s. The bank diversified both its business and its geographical spread through acquisitions and alliances. HSBC Holdings plc, the parent company of the HSBC Group, was established in 1991 with its share quoted on both the London and Hong Kong stock exchanges. The HSBC Group now comprises a unique range of banks and financial service providers around the globe. The following are some key milestones in the evolution of the group since 1955: Year 1955 1959 Event The Hong Kong and Shanghai Banking Corporation of California was founded The Hong Kong and Shanghai Banking Corporation acquires the British Bank of the Middle East (formerly the Imperial Bank of Persia, now called HSBC Bank Middle East) and The Mercantile Bank (originally the Chartered Mercantile Bank of India, London & China) 1960 Way foong Finance Limited, a Hong Kong hire purchase and personal finance subsidiary, is established 1965 The Hong Kong and Shanghai Banking Corporation acquires a majority shareholding in Hong Kong Bank Limited, now the second largest bank incorporated in Hong Kong. Midland Bank purchases a one-third share in the parent of London Merchant Bank Samuel Montagu & Co. Limited (soon to be

renamed HSBC Republic Bank (UK) Limited) 1971 The Cyprus Popular Bank Limited (now Laiki Bank) becomes an associated company of the Group. 1972 The Hong Kong and Shanghai Banking Corporatio forms merchant banking subsidiary, Wardley Limited (now called HSBC Investment Bank Asia Limited). Midland Bank acquires a shareholding in UBAF Bank Limited (now known as British Arab Commercial Bank Limited) 1974 1978 Samuel Montagu becomes a wholly owned subsidiary of Midland The Saudi British Bank is established under local control to take over The British Bank of the Middle Easts branches in Saudi Arabia 1980 The Hong Kong and Shanghai Banking Corporation acquires 51% of New York States Marine Midland Bank, N.A (now called HSBC Bank, USA), with a controlling interest in Concord Leasing. UK-based merchant bank Antony Gibbs becomes a wholly owned subsidiary. Midland acquires a controlling interest in leading German private bank Trinkaus & Burkhardti KgaA (now HSBC Trinkaus & Burkhardt KgaA) 1981 Hong Kong Bank of Canada (Now HSBC Bank Canada) is established in Vancouver. The Group acquires a controlling interest in Equator Holdings Limited

1982 1983

Egyptian British Bank S.A.E is formed, with the Group holdings a 40% interest Marine Midland Bank acquires Carrol McEntee & McGinley (now HSBC Securities (USA) Inc.), a New York based primary dealer in US government securities.

1985 1986

New Head office building opened at Hong Kong The Hong Kong and Shanghai Banking Corporation establishes Hong Kong Bank of Australia Limited (now HSBC Bank Australia Limited) and acquires James Capel & Co. Limited, a leading London-based international securities company.

1987

The Hong Kong and Shanghai Banking Corporation acquires the remaining shares of Marine Midland and a 14.9% equity interest in Midland Bank

1989

A strategic alliance in entered between The Hong Kong and Shanghai Banking Corporation and California-based Wells Fargo Bank. Midland Bank Launches First Direct the UKs first 24-hour telephone banking service

1991

HSBC Holdings is established; its shares are traded on the London and Hong Kong stock exchanges

1992

HSBC Holdings purchases the remaining equity in Midland Bank. HSBC Investment Bank plc is formed

1993

The HSBC Groups Head Office moves to London. Forward Trust Group

Limited (now HSBC Asset Finance(UK) Limited), a Midland subsidiary, acquires Swan National Leasing, establishing the UK third largest vehicle contract hire company. 1994 The Hong Kong and Shanghai Banking Corporation is the first foreign bank t incorporate locally in Malaysia, forming Hong Kong Bank Malaysia Berhad (now HSBC Bank Malaysia Berhad) 1995 Wells Fargo & Co. and HSBC Holdings establish Wells Fargo HSBC Trade Bank, N.A. in California to provide customers of both companies with trade finance and international banking services 1997 HSBC Holdings and Wachovia Corporation of the United States form a nonequity alliances to market corporate financial services worldwide. In Latin America, the Group establishes a new subsidiary in Brazil, Banco HSBC Bamerindus S.A and completes the acquisition of Roberts 01 S.A de Inversions in Argentina (now HSBC Argentina Holdings S.A) 1999 Shares in HSBC Holdings trading on a third stock exchange, Nre York. HSBC Holdings acquires Republic New York Corporation (now integrated with HSBC USA Inc) and its sister company Safra Republic Holdings S.A *now HSBC Republic Holdings (Luxembourg) S.A.) Midland Bank acquires a 70.03% interest in Mid-Med Bank p.l.c (Now called HSBC Bank Malta p.l.c.), Maltas largets commercial bank

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2000

HSBC and Merrill Lynch form a joint venture to launch the first international online banking and investment service company. HSBC reaches an agreement in principle to acquire 75% of the issued shares of Bangkok Metropolitan Bank, the eight largest banks in Thailand. HSBC acquires Credit Commercial de France (CCF), a major French banking group. Shares in HSBC Holdings are listed on a fourth stock exchanges, in Paris

2001

Agreement is reached for HSBC to acquire Barclays Banks branches and fund Management Company in Greece. New 44-floor Headquarter building at Londons Canary Wharf is due to be ready for occupation.

2002

Acquisitions include Group Financiero Bital, S.A de C.V,. one of Mexicos largest financial services groups; and a 10% interest in Ping An Insurance Company of China Limited, the second largest life insurance operations in China

2003

HSBC acquires Household International Inc, a leading US consumer finance company; and Lloyds TSBs Brazilian assets including Losango Promortora de Vendas Ltda, a major consumer credit institutions. Four French private banking subsidiaries combine to form HSBC Private Bank Finance. HSBC Insurance Brokers Limited forms a joint venture, Beijing HSBC Insurance Brokers Limited, in which it has a 24.9% stake. Hang Seng Bank acquires 15.98% of Industrial Bank Co Ltd, a mainland China commercial bank, and HSBC agrees to purchase 50% of Fujian Asia bank Limited (no Ping An Bank Limited)

2004

HSBC acquires The Bank of Bermuda Limited, a leading provider of fund

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administration, trust, custody, asset management and private banking services; and shares in HSBC Holdings are listed on a fifth stock exchange, in Bermuda. 2005 HSBC acquires 9.91% of Ping An Insurance (Group) Company of China, Ltd, subsequently increased to 16.8%. HSBC Finance Corporation acquires Metris Companies Inc. making HSBC the fifth largest issuer of Master Card and Visa cards in the US. 2006 HSBC acquires the Panama-based Group Banistmo S.A.; the leading banking group in Central America. 2007 In China, HSBC is one of the first foreign banks to incorporate locally under the name HSBC Bank (China) Company Limited, and HSBC Rural Bank opens for business in Hubei Province. In Vietnam, HSBC increases its stake in Techcombark to 14.4% and acquires 10% of Bao Viet, the countrys top insurer. In South Korea, HSBC agrees to acquire 51% of Korea Exchange Bank, subject to regulatory approval. In Taiwan, HSBC obtains agreement to acquire certain business and operations of The Chinese Bank Co. Ltd. HSBC remained one of the most strongly capitalized and liquid banks in the world in face of the global financial crisis. In December, HSBC announced a 750 million pound capital injection for its UK subsidiary from its own resources 2008 HSBC entered the Korean Insurance Market and it became the 1st foreign bank to hold a 20% interest in a domestic Vietnamese bank when it increased its stake in Techcombank. HSBC built on its considerable operations in Indonesia with

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the purchase of a major stake in Bank Ekonomi. HSBC opened new offices in Georgia and Kazakhstan and expanding the range of services provided in Poland, the Czech Republic and Austria 2009 Amid fluid market conditions, HSBC reported strong results, sending a positive message to the public and investors. HSBCs success was recognized with the title Global Bank of the Year in the Euromoney Awards for Excellence 2009. HSBC also won 14 regional awards along with Best Global Debt House and Best Global Transaction Banking House. With the worlds centre of gravity shifting from West to East, HSBC announced that Group Chief Executive Michael Geoghegan and some members of executive management will relocate to Hong Kong in 2010. The Group launched the world;s first Emerging Markets Index (EMI)

2010

HSBC launched a proposition titled HSBC Advance, a mid-segment personal financial services product. It also initiated a project to use the same banking software/system globally under a project titled ONE HSBC. The Bank also launched online account opening at Malaysia and has announced launching of Amanah Islamic Banking in Bangladesh

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Country Classification To ensure that the key resources (management time, capital, human resources and information technology) are correctly allocated and that the exchange of best practice is accelerated between entities, the group has classified the countries where it operates into 3 categories: the large, the major and the international.

These

classifications

are

function

of

sustainable,

Large:

United Kingdom, USA

attributable earnings, the number of retail clients, balance sheet and size of operation. A brief presentation of this classification is shown below:

and Hong Kong SAR/Mainland China.

Sustainable earnings greater than US$ 200 million

Major: Argentina, Canada,

Malaysia, India, Kingdom of Saudi Arabia, Singapore and United Arab Emirates. Sustainable earnings between US$ 100 200 million

International:
of the world.

The rest

Earnings below US$ 1: Figure 100 million

Map of HSBC's Country Classifications

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HSBC in Asia Pacific Since Bangladesh falls in the Asia Pacific region of the banks operations, it is worth mentioning some of HSBCs strategic visions in the Asia Pacific zone. One of the key reasons for HSBCs powerful presence in Asia Pacific is the fact that this zone contains some of the best emerging markets in the world today. These emerging markets have shown strong capabilities to withstand financial risks that have come to be associated with the more developed western world. As per HSBCs publication of Our Vision: Asia Pacific (November 2007), the emerging markets are growing faster than rich countries and in around 8 years time, the Non-G7 countries will be contributing 50% share of the global GDP. With highly increasing life expectancy in the region, as well as higher GDP growth, trade growth and household consumption compared to the rest of the world, Asia Pacific holds a very large market for HSBC to tap into in order to sustain its position as truly the worlds local bank. The table below outlines HSBCs areas of operation in Asia Pacific as of 2nd March 2009:
Country Australia Bangladesh Brunei Darussalam China Cook Islands Country Hong Kong SAR India Indonesia Japan Kazakhstan Korea, Republic of No. of Branches 34 10 12 136 1 No. of Branches 325 155 114 14 3 15 Country Macau SAR Malaysia Maldives New Zealand Philippines Country Singapore Sri Lanka Taiwan Thailand Vietnam No. of Branches 7 49 1 11 27 No. of Branches 27 15 43 1 4

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BUSINESS PRINCIPLES AND VALUES

Strategic Position of HSBC HSBCs strategy is to continue to invest primarily in the faster-growing, emerging markets and focus on business models that have international connectivity and scale advantage. Central to this strategy is the policy of maintaining HSBCs capital strength and strong liquidity. The strategy is to be executed by: Leveraging HSBCs brand and global networks to reach new customers and offer further services to existing customers Using common approaches through ONE HSBC to make it easier for customers to do business with HSBC and reduce the costs of serving them. Aligning objectives and incentives to motivate engage and reward employees in delivering the strategy. Objective HSBC promises on providing innovative products, supported by quality delivery of systems and excellence in customer services. As well as, it aims to train and motivate staffs and to exercise social responsibility. By combining regional strengths with its group network, HSBCs endeavor is to be one of the leading banks in its prime markets and achieve sustained earning growth, meanwhile, continuing to enhance shareholder value.
We aim to satisfy our customers with high quality service that reflects our global image as the premier international bank.

Mission Statement
To generate greater return than the average return of peer group financial institutions and increase shareholder value significantly

Vision Statement

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Values All of HSBCs activities are centered on few group values which are provided below: Long-term, ethical client service Confident and ambitious sense of excellence Capable of creativity and strong marketing High productivity through teamwork International character, conservative orientated

Other Key Business Values: The highest personal standards of integrity Commitment to truth and fair dealing Hand-on management at all levels Openly esteemed commitment to quality and competence A minimum of bureaucracy Fast decisions and implementation Putting the Groups interest ahead of the individuals The appropriate delegation of authority with accountability Fair and objective employer A merit approach to recruitment/selection/promotion A commitment to complying with the spirit and letter of all laws and regulations The promotion of good environmental practice and sustainable development and commitment to the welfare and development of each local community HSBC Brand & Corporate Identity: The Hexagon logo of HSBC derives from HSBCs traditionally flag, a white rectangle divided diagonally. Like many other Hong Kong company flags in the last century, the design of the flag was based on the cross of ST. Andrew, The Patron Saint of Scotland

HSBC brand & corporate identity represents what HSBC wants its brand to mean to its customer. It is derived from the groups:

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Corporate Character: HSBC is a prudent, cost conscious, ethically grounded, conservative, trustworthy international builder of long-term customer relationships.

Basic Drives: Higher productivity, Team Orientation, Creative Organization & Customer Orientation The essence of HSBC brand is integrity, trust and excellent customer service. It gives confidence to customers, value to investors & comfort to colleagues.

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PART-3: HSBC BANGLADESH

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HSBCS JOURNEY IN BANGLADESH: The HSBC Asia Pacific group represents HSBC in Bangladesh. HSBC opened its first branch in Dhaka in 17th December, 1996 to provide personal banking services, trade and corporate services, and custody services. The Bank was awarded ISO9002 accreditation for its personal and business banking services, which cover trade services, securities and safe custody, corporate banking, Hexagon and all personal banking. This ISO9002 designation is the first of its kind for a bank in Bangladesh. The Hong Kong and Shanghai Banking Corporation Bangladesh Ltd. primarily limited its operations to help garments industry and to commercial banking. Latter, it is extended to pharmaceuticals, jute and consumer products. Other services include cash management, treasury, securities, and custodial service. Realizing the huge potential and growth in personal banking industry in Bangladesh, HSBC extended its operation to the personal banking sector in Bangladesh and within a very short span of time it was able to build up a huge client base. Extending its operation further, HSBC opened a branch at Chittagong, three branch offices at Dhaka (Gulshan, Mothijheel and Dhanmondi) and an offshore banking unit on November 1998. HSBC also has its presence in the 5 EPZs of the country. These offices have been set up in order to strengthen the business relationship with the corporate customers. Identifying vast business opportunity a corporate branch was opened in Narayanganj in April 2010. Till date the bank has a network of 11 offices across Bangladesh. HSBC Bangladesh profile is furnished below:

Name of the Organization:

The Hong Kong Shanghai Banking Corporation Bangladesh LTD

Years of Establishment: Head Office:

1996 Anchor Tower, 1/1-B, Sonargaon Road, Dhaka 1205, Bangladesh

Nature of the organization:

Multinational company with subsidiary group In Bangladesh

Capital:

Asset: BDT 6935 million Deposit: BDT 5998 million

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Shareholders: Products:

HSBC group shareholders Savings & deposit services Loan products Corporate and Institutional services Trade services Hexagon

Number of offices: Number of employees: Technology:

12 1051 Offers full online banking from branch to branch and also from Dhaka to Chittagong

Service Coverage & Customers:

Serves individual and corporate customers within Dhaka, Chittagong & Sylhet. Serves corporate customers through business development offices in seven EPZs

MANAGEMENT OF HSBC BANGLADESH

EXECUTIVE COMMITTEE: HSBC Bangladesh in under the strict of supervision of HSBC Asia Pacific Group, Hong Kong. The Chief Executive Officer of HSBC Bangladesh manages the whole banking operation of HSBC in Bangladesh. Under the CEO there are heads of departments who manage specific banking functions e.g. Personal banking, corporate banking, etc. The structure of the executive committee is illustrated below:

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PFS(Personal Financial Services) CMB ( Corporate Banking) GPA ( Marketing) HTS (HSBC Technology and Services)

CEO

Risk CCD (Compliance & Control Dept) Finance

HRD ( Human Resources Dept)

Figure: HSBC Executive Committee

GM ( Global Market)

At present, Mr. Sanjay Prakash is the CEO; Mr. Mahbub-ur-Rahman is the chief of Corporate Banking; Mr. Shafquat Hossain is the chief of Personal Financial Services. The total top team manages the overall functioning of the bank with various other department heads, senior managers, relationship managers, etc. They equally contribute to HSBCs superior leadership, by carrying out their unique roles.

Each and every employee of HSBC takes pride of being an employee at HSBC and his/her pride comes from the freedom of direct communication with the top management. The management of HSBC is supportive in the sense that the top management deliberately supports the suggestions, values, ideas, innovation and hard work of the employees and officer. High amount of employee participation in encountered in the management process. There are also systems for awards,

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incentives, and status for innovative ideas and hard works. The management style can also be termed as Collegial as high amounts of team work and participation exists between the top and bottom parts of HSBC.

MANAGEMENT HIERARCHY: HSBC follows a 5-layer management philosophy in Bangladesh. These are Senior managers, Managers, Assistant Manager, Officer and Associate. The CEO is the top most authority of all the levels. Senior managers are the departmental heads who are responsible for the activities of their departments. They are the heads of the department and formulate strategies for that department e.g. Head of Personal Financial Services. Managers have the authority next to managers. The management hierarchy of HSBC is illustrated below:

Senior Manager Manager Assistant Manager Officers Associate

Figure: Management Hierarchy

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FUNCTIONAL DEPARTMENTS OF HSBC BANGLADESH: CORPORATE BANKING DIVISION: Corporate Banking is a core part of HSBCs business in Bangladesh. The bank has an extensive corporate customer base with credit facilities being offered to the top business houses of the country. The department has dedicated relationship teams for each corporate customer to ensure efficient and timely delivery of services.

CMB is the corporate credit disbursement section. Unit 1 and Unit 2 are the two teams responsible for actively portfolio and relationship management and corporate credit disbursement. These teams are responsible for cross selling trade products, payment & cash management products and treasury solutions to their customers. The strategy team works on devising the macro strategy of the corporate banking division and at the same time overlooks the operational risk aspects. The Business Banking team is in charge of acquiring and providing credit to SMEs.

Trade and Supply Chain (TSC) execute all transactions relating to internal trade and also engage in relationship management to some extent. The PCM team designs several products of cash management and payment according to customer needs. The team also sells these products to corporate depositors/development organizations. The Institutional Banking (IB) team works on active relationship management with other banking. This is crucial for taking exposure on other banks and ensuring timely payments

Following are the corporate credit and trade and supply chain products offered in Bangladesh: Corporate Credit Overdraft Local Purchase Term Loans Guarantee and Bonds Export Services o Pre-shipment Finance

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o Post-shipment Finance o Documentary Credit Advising Import Services o Documentary Credit o Documentary Collection o Import Finance o Shipping Guarantee

PERSONAL FINANCIAL SERVICE: This department basically deals with the management of products and services offered to the individual consumers. Chief of PFS manages and supervises the Personal Banking activities of the branch network of HSBC Bangladesh. The 12 branches of HSBC basically deal with the personal banking activities and provide various accounts services to individual customers.

BRANCH NETWORK: There are 12 branches of HSBC that deal with both corporate and personal banking. There functions are to provide various financial services to the consumers. These include customer services, sale of various PFS products, opening new accounts, providing cash, remittance and other teller services, etc. The branches are quite decentralized for better delivery of services to customer and have their own premise and facilities. MAJOR PRODUCTS PROVIDED BY PFS: SAVINGS ACCOUNT:

This is a depository account basically designed for small-scale savers. This is an interest bearing account.

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CURRENT ACCOUNT: This is also a depository account basically designed for various customers. This is a non interest bearing account. SHORT TERM DEPOSIT: These accounts are opened mostly by the organizations. Organizations normally maintain current accounts in the banks. They need to transact bulk amount regularly. Thats why current account fits with their requirements. As current accounts do not provide any interests and as the organizations cannot have savings account, they are deprived of earning any interest despite having huge deposit in their accounts. Short-term deposit accounts enable them to earn interest from their accounts. These kinds of accounts share some properties of both current and savings accounts. The account provides interests, which are like the savings accounts, and the holder can withdraw any amount any time from his account, which is a property of the current account. Individuals especially businessmen maintain such accounts. TERM DEPOSIT/ FIXED DEPOSIT DEPOSIT:

These deposits are made in the bank for a fixed period of time. This period of time should be specified in advance. The bank needs not maintain cash reserve against these deposits & therefore, it offers interest rates that are higher than the savings accounts. RESIDENT FOREIGN CURRENCY CURRENT ACCOUNTS: Bangladeshi nationals residing abroad open this account. Foreign nationals residing abroad or in Bangladesh, foreign firms registered abroad, Bangladeshis working in multinationals at Bangladesh and receiving salary in foreign country can also open such account. The account is non interest bearing and there are various kinds of restrictions for withdrawals and deposits. The account can be maintained in the Euro (EUR), Pound Sterling (GBP) and US Dollar (USD).

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NON-RESIDENT FOREIGN CURRENCY ACCOUNTS: These are time deposit interest bearing accounts. All non-resident Bangladeshi nationals can open them, persons having dual citizenship, shipping staffs, etc. They can be maintained in EUR, GBP & USD currencies. These accounts are strictly monitored by the central bank and restrictions exist for these accounts. RESIDENT FOREIGN CURRENCY DEPOSIT ACCOUNTS: Balances in these accounts are freely transferable abroad without any restriction from Bangladesh bank. Resident Bangladeshis returning from abroad can open this account within one month of his/her return. CONVERTIBLE TAKE ACCOUNT: Diplomatic missions, UN organizations, non-profit international companies, foreign contractors & consultants, expatriate, resident employees of UN missions can open these accounts. These accounts are maintained in Taka and non-interest bearing. PERSONAL BANKING LOAN PRODUCTS: The personal banking division of HSBC has designed various assets products to meet the needs of individual customers. These are various loans and consumer credit schemes that satisfy and fulfill some basic purchase purpose of the individual customers. These products are described in the following sections.

PERSONAL INSTALLMENT LOAN (PIL):

This loan is known as the any-purpose consumer loan of HSBC. This loan is currently the best product of HSBC Bangladesh and is given to HSBC customers. The customers can avail this loan for any of his personal needs such as traveling, purchase of household

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goods, computer purchase, etc. Invoices or quotations are not required for these loans, as the bank will disburse the credit amount directly to customers account. CAR LOAN:

Car loan is provided to HSBC customers to purchase personal cars. This loan is the second best product of HSBC that finances the cost of the car for its customers. HOME LOAN:

This is a secured loan product under Mortgage products which is given only for purchase of flats in Dhaka and Chittagong City Corporations HOME EQUITY LOAN:

This is another mortgage product of HSBC where loan is given against the value of a house keeping the house as mortgage with the bank.

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PERSONAL SECURED LOAN & CREDIT: Personal secured Loan/credit is a credit facility against time deposits or government savings certificates and bonds. PERSONAL BANKING PROPOSITIONS: HSBC Bangladesh offers special propositions for high net worth clients. There are mainly three propositions offered by HSBC. BANGLADESH INTERNATIONAL:

This is a unique proposition for Non-resident Bangladeshis. For the NRBs, there is a dedicated center at the head office with relationship managers and officers to serve the special customers. Under this proposition, NRBs can get preferential services such as opening of foreign currency accounts from abroad, purchase wage earner bonds and investment bonds; apply for IPOs in Dhaka and Chittagong stock exchanges from abroad through HSBC special services. BI proposition allows NRBs to open accounts and perform banking functions from abroad through e-mail communication with the dedicated officers of BI. NRBs can also easily send remittance to Bangladesh through HSBC BI services.

POWER VANTAGE (PVA)

HSBC Power Vantage is a proposition for customers with minimum deposit of BDT 1 million at HSBC Bangladesh or for customers with monthly salary of BDT 1 lac 50 thousand. Under this proposition, Power Vantage Account holders are served by dedicated Relation Officers at Power

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Vantage customer service desks at each branch and cash transactions are carried out in a dedicated cash counter for PVA. Power Vantage customers also enjoy preferential services such as 0.5% discount on interest rates on loans, personalized PVA marked check books, PVA ATM card with extended transaction limits, free foreign currency endorsement etc.

HSBC SELECT

HSBC Select is a unique banking proposition for high net worth customers. A customer with a minimum deposit balance of BDT 4 million or a monthly salary of 3 lac falls under this proposition. Under this proposition, HSBC Select Account holders are served in special Select Centers and not in regular HSBC branches. Each customer is assigned with his/her own relationship managers who manage the financial needs and portfolio of the customer. Each select centre is specially designed with decorated living room type reception, dedicated cash counters, etc.

HSBC Select customers also enjoy preferential services such as 1% discount on interest rates on loans, personalized Select marked check books, Select ATM card with extended transaction limits, free foreign currency endorsement for all family members, access to VIP lounge at Hajrat Shahjalal International Airport, Dhaka with complementary welcome drinks, invitation to special events organized for Select clients, etc. HUMAN RESOURCE DEPARTMENT: The Human resource Manager currently heads this department. The major functions of this department are Recruitment, Training and development, Personnel Services and Security. The HR department is very much concerned with the discipline that is set up by the HSBC group. HSBC group has got strict rules and regulations for each and every aspect of banking, even for non-banking purposes; i.e. the dress code. All these major personnel functions are integrated in

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the best possible way at HSBC, which results in its higher productivity. The Human Resource officer monitors the employee staffing and administration activities. The Training officer supervises training, development and rotation activities. FINANCE DEPARTMENT: This department keeps tracks of each and every transactions made within HSBC Bangladesh. It is headed by Manager of Financial Control Department (FCD) who ensures that all the transactions are made according to rules and regulations of HSBC group and also with local regulations guided by the Central Bank. Violation of such rules can bring serious consequences for the lawbreaker. The Treasury Department works under the Finance Department. Their main job is to take decisions regarding purchase and sale of foreign currency. The purpose of Treasurys operations is to utilize the funds effectively and arrange funds at a lowest possible rate of interest, through maintaining effective relationship with other banks and following the Government rules and foreign exchange regulations. Risk:
The Risk department of HSBC Bangladesh is accountable for reducing the banks overall risk exposure, consisting of credit risk and operational risk. This department has been broken down into two parts, Credit Risk Department (CRM) and Operational Risk Management and Internal Control (ORM & IC). CRM has been further divided into two parts which are Wholesale Credit Risk (WCR) and Retail Credit Risk (RCR). WCR and RCR are responsible for evaluating corporate and consumer credit applicants respectively to determine if they are in a good enough financial position to repay their debts to the bank. The Collections Control Unit is a part of WCR that is in charge of ensuring that all wholesale credit clients of the bank make their payments on a timely and regular basis. It is this Units task to take legal actions if necessary when such a client has gone delinquent or is not paying up for any reasons whatsoever. In RCR there is a similar unit named Collections Management Unit (CMU) that ensures collections from the banks consumer credit clients. Operational Risk Management and Internal Controls roles include implementing and maintaining an effective operational risk management framework in the Area that meets HSBC and local regulatory standards, supporting other business/function to assess

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operational risks and identifying improvement areas in operational controls and procedures, developing internal control checklists based on local requirements and conditions and ensuring that any breaches or material risks are recognized and senior management is made aware of it, leading to appropriate actions as required.

Treasury: The treasury of HSBC Bangladesh is one of the leading treasuries that offers foreign exchange requirements, provides market commentaries, economic forecasts and advisory to its major corporate clients. Although the finance department performs some minor treasury functions, there are front-office treasury operations as well, developed in line with changing market conditions to provide the best services to its customers. Treasury operations include money market operations such as buying and selling of government security instruments, foreign exchange services such as ready contracts, forward contracts, cross currency contracts, spot dealing, interest rate SWAP in inter-bank, and other services including information analysis, remittance, etc.

Institutional Banking: Institutional banking (IB) provides dedicated relationship management services to HSBCs clients in the different financial institutions. The banks focus is on fostering long-term relationship based on its international connections and extensive knowledge of Asia and Asian business. As the type of documents reviewed and product items for financial institutions differ from the other more conventional business clients, institutional banking has been made a separate department.

Operations: The Operations department is basically responsible for conducting most day-to-day operations of the bank. As can be seen from the diagram above, this department has been broken down into four parts. IT takes care of all the technological and computer-related support services for the banks employees. It ensures that the computer backbone of HSBC Bangladesh is as up to date as required to keep on performing the banks operations at a satisfactorily efficient level.

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Network Services Centre provides support to departments that deal directly with clients. Its services include remittance and clearing segment, global payments and cash management operations, IB operations, etc. Credit Operations manages all the documentation of credit applicants and processes them for the relevant departments of the bank. Administrations task is to ensure that all the functions of the departments are consistent to the policies set by upper management and that the overall operational support functions are being conducted in a proper manner. Change Delivery is responsible for updating and maintaining HUB which is the HSBC Universal Banking system, the international internet platform for conducting the banks operations. It is perhaps the most important task of Operations as HUB creates the backbone of HSBC.net, which is HSBCs proprietary internet network enabling customers and employees from all over the world to access the companys network.

Compliance: HSBC Group has a clear compliance policy and line management is responsible for implementing it. The compliance department ensures that all of the banks activities are in adherence to Bangladesh Bank regulations and also has to ascertain at the same time that HSBC Bangladesh follows all the policies and guidelines that are set by HSBC Group. Moreover, this department has the responsibility of fraud risk management and has to ensure prevention of money laundering. Also compliance department implements the Groups Business Continuity Plan to ensure that HSBC can survive if a disaster occurs and its exposure to financial loss is minimized in such an event.

SERVICE DEPARTMENTS OF HSBC:

This is an integral and vital part of the bank. The services department ensures smooth operation and functioning within and between all the departments of HSBC. It also provides continuous support to the core banking activities of HSBC. The Manager of Services heads this department who formulates and manages critical issues of the services function of HSBC. He/she is followed by a group of executives who are the heads of various subsidiary divisions that operate within the service department. The services department is considered as the backbone of all other departments. The various subsidiary divisions within this department are Administration, IT, Internal Control (IC), Network Services Center (NSC) and HUB.

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IT: This department gives the software and hardware supports to different departments of the bank. As HSBC is engaged in online banking, the role of IT is very crucial for the bank. This department is the most active department of HSBC where employees always stand by to solve any problems in the system. The managers and executives of IT division work continuously to develop the total IT system so that it can be operated with ease, accuracy and speed. INTERNAL CONTROL: HSBC has internal auditors who visit on regular basis and submit the report to the higher authority for audit purposes. This gives different departments the chance to know their mistakes and take necessary corrective actions. Again, the Bank annually administers a company wide audit program to evaluate the overall performance of the bank in Bangladesh. This department is responsible for managing external stakeholders such as regulators, banking associations and the Central Bank. HSBC UNIVERSAL BANKING (HUB): The HSBC banking system is called HUB. HSBC does the online banking and it is HUB, which sets up the parameter for that. This HUB is linked with the HSBC group via satellite and each and every transaction made by HSBC within Bangladesh is being recorded at the HSBC Asia-pacific headquarters at Hong Kong via HUB. Thus the HUB is the most powerful and important equipment of HSBC Bangladesh that monitors and tracks any fraud and faults made with HSBC Bangladesh.

NETWORK SERVICE CENTRE (NSC): This department can be described as the Power House of HSBC Bangladesh. NSC does the back office job for the bank. The main four jobs that are performed by NSC are Clearing, Scanning of signature cards, Issuing Checkbooks and Sending & receiving Remittances. NSC looks after the clearing process of HSBC and makes necessary contact with the Central Bank for maintaining account flows. All the customers signatures are scanned in this department and are entered into the system. NSC also issues checkbook for new and old accounts based on requisition from various branches. MARKETING DEPARTMENT: The marketing department of HSBC plays a vital role in fostering the continuous growth of HSBC in Bangladesh. A manager is assigned to this department who looks after the overall marketing operation of HSBC in Bangladesh. This department is basically concerned about marketing the companys products, services and building a strong corporate image.

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The marketing department is also involved in carrying out the activities of the company related to Corporate Social Responsibility (CSR) which HSBC terms as Corporate Sustainability. HSBCs CS activities include assistance and aid to educational institutions for the underprivileged and for the physically challenged such as School of Hope, events to promote Bangla Language such as HSBC Prothom Alo Bhasha Protijog, events and competitions for students such as HSBC Young Entrepreneurs Award, Climate initiatives such as Climate Champions and HSBC-The Daily Star Climate Awards, a forestation programs, rainwater harvesting programs, etc.

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PART-4: CUSTOMER SERVICES OF HSBC, BANGLADESH WITH THE ONLINE FACILITY

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Customer Services of HSBC, Bangladesh with the Online Facility In the service industry, the customer services department is a very important part of any organization. More importantly, in the banking business, this department can create a differential image of the bank. Because, this department not only keep and maintain the current customer base; but also attracting the attention of potential customers by providing value added services. In Bangladesh, The Hongkong and Shanghai Banking Corporation Limited has started their banking business back in 1996 by opening only one branch at Dhaka. With this start, HSBC brought two new things in the banking industry of Bangladesh and these are: Customer Services Department Online Banking Services

At present, HSBC is the second largest foreign commercial bank of Bangladesh. Both of these, Customer Services Department and Online Banking Services, are contributing very much significantly to make HSBC the second largest foreign commercial bank of Bangladesh in this very short period of time. Because, prior to that both customer services department and on-line banking services are completely ignored by the banks of Bangladesh. By providing both of these facilities, HSBC has introduced a totally new banking era for the banking industry of Bangladesh. At this moment, HSBC is one of the leading on-line banks of Bangladesh. The Customer Services Department is fully maximizing this on-line facility to provide value added and differential services to their customers. A customer can really banking with HSBC from anywhere and anytime. The various customer services activities performed by the Customer Services Department of HSBC Can be classified into two categories. These two categories are as: 1. Cash and Non-Cash Services 2. Other Customer Services

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Cash and Non-Cash Services HSBC assign a CSM as an in-charge of all the cash and non-cash activities of a branch. The CSM is supervising a team of CSO, known as Teller to perform the entire cash and non -cash activities efficiently and timely. This category can be subdivided into two different groups to discuss their activities more effectively: a. Cash Services b. Non-Cash Services

Cash Services From this section, the customers are getting the following services: i. ii. iii. Deposit Money Withdraw Money Electronic Fund Transfer

Deposit Money The customers can deposit any amount of money in any branch of HSBC, Bangladesh. In terms of currency, all the accounts of HSBC are divided into two categories: Local Currency Accounts Foreign Currency Accounts

So, the customers can deposit both the local and foreign currency according to their account status. As I discussed earlier, HSBC has developed a very unique kind of account number, so the customers can deposit their money in any of the branches of HSBC Bangladesh. Withdraw Money The customers can withdraw money from any of the branches of HSBC with the help of their local or foreign currency cheque, or counter cheque. Note that, the customers can deposit foreign currency in their foreign currency account, but at the time of withdraw; they get local currency, which is converted by using the TT Clean rate. And this rate is daily set by the treasury department of the bank. The foreign currency account holders can only get their original currency against the endorsement on their passport.

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Electronic Fund Transfer The electronic fund transfer is mainly done by the CSO of non-cash counter; however, the cash a/c pay cheque transfer is done by the CSO of cash counter. With the on-line facility, the CSO is transferring the fund between the HSBC accounts immediately. Most of the customers, mainly the account holders, are quite satisfy with the services provide by the CSOs of cash counters. In fact, we can say, almost 90% of the total customers are pleased with services. Rests other are not satisfied because of; not only of the performance of the CSOs, but also some other factors like shortage of sitting chair. Non-Cash Services The Non-Cash counters of the CSD are providing the following services to customers: Receiving other banks A/C Pay cheques for clearing or collection Electronic fund transfer between HSBC accounts Preparing local Cashier Order Sending instruction of local Telegraphic Transfer Receiving and sending MT_100 salary sheets for further processing Receiving foreign Demand Draft or Telegraphic Transfer request along with necessary documents Receiving necessary documents to process inward remittance Encashment of Foreign Currency and Travelers Cheque Endorsement of Foreign Currency and Travelers Cheque on the passport

Clearing and Collection The main duty of non-cash CSO is to receive other bank A/C Pay cheque, both from the personal and corporate customer, and send those cheques to clearing and collection department for further processing. HSBC, Motijheel Branch, is providing two types of clearing facilities to its customers. These are: a) Normal Clearing b) Same-Day Clearing

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Normal Clearing Under the normal Clearing, the bank takes only one working day to collect money for its customer. If a cheque is deposited on day D, the bank will take (D+1) day to clear that cheque from draw-on bank. The following figure will show the cheque clearing process of HSBC:
Clearing Department Receive Cheque from Branch

Cheque Deposit on HSBC Branch

Branch Sending Cheque

Clearing Information Send Information

I

Clearing Information

Central Computer System of HSBC, Bangladesh

F O R M A

Clearing Department Sending Cheques to Bangladesh Banks Clearing House

Send Information

Clearing House Contact with Payee for Clearing

Payee Bank
Payment Information

ClearingI House of Bangladesh Bank

O N

Same-Day Clearing Same-Day clearing process is a conditional service of HSBC and it is only available at its Motijheel Branch. The Cheque amount must be BDT 500,000.00 or above and also within the same-day clearing range of Bangladesh Bank. Rest other formalities are as same as normal cheque clearing.

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HSBC follows the collection procedure for cheques, which are outside the clearing zone. In this case, a representative of HSBC physically takes the cheques to the drawee bank for collection. This process take (D+14) to (D+21) for clearing a cheque. Electronic Fund Transfer The internal A/C Pay cheque i.e. A/C pay cheques of HSBC is transferred immediately by the CSO of non-cash counter. The fund is instantly debited and credited in the respected accounts through the centralized computer system. Both the individual and corporate customers are maximizing this facility to make payment between HSBC accounts. Cashier Order The cashier orders are a kind of A/C Pay cheque, which prepared by the bank itself, as an agent of its account holders. A customer can request for the cashier order from any branch of HSBC, Bangladesh; because it is controlled by the centralized computer system. Endorsement and Encashment of Foreign Currency and Travelers Cheque (AMEX) Most of the foreign currency dealings of a branch are handled by the CSO of the non-cash counter. The CSO can endorse or encash foreign currency without the help from the banks on line support. But for encashment of AMEXs Travelers Cheque the CSO should get the approval from its issuer through the on-line support of the bank. After getting approval the CSO can encash the Travelers Cheque. The following figure will show this procedure more clearly:

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HSBC, Bangladesh

HSBC, Motijheel Branch Receives AMEX Travelers Cheque for encashment

Sending TC Information Approval/ Disapproval

Central Computer System of HSBC, Bangladesh

Firewall

Sending TC Information

Approval/ Disapproval Approval/ Disapproval Sending TC Information

Internet
Sending TC Information

Approval/ Disapproval

The Computer Network of AMEX

Figure 4.2: Travelers Encashment of HSBC, Bangladesh

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Along with these discussed services, the CSO of the non-cash counter performed the above mentioned services through the centralized computer system of HSBC, Bangladesh. Almost 95% customers are happy with the services of non-cash section. About 5% of total customers are not satisfied not only with the performance of the CSO but also with some lengthy system like process local TT. Other Customer Services So far, I have discussed the services provide by the CSD back i.e. the cash and non-cash section. Now, I am going to discuss the services provided by the CSD front i.e. the customer services department for customer queries and value-added services. The CSM front is the line supervisor of this section, who is leading a team of dedicated Customer Services Officers (CSO). From this section, customers are getting the following Services: a. Helping Customers to open accounts with HSBC, Bangladesh. b. Delivery of HSBC ATM Cards and PINs. c. Delivery of Credit Cards. d. Processing different Government Securities (Bonds). e. Providing Bank Certificate. f. Receiving and processing Standing Instruction of customers. g. Maintaining up-to-date contact addresses of customers. h. Providing suitable solutions to different customer queries. i. Providing necessary information to existing and potential customers.

A/C Opening HSBC is very familiar foreign commercial bank of Bangladesh; in fact it is the second largest bank. HSBC occupied the fifth position in the ranking of all private commercial bank of Bangladesh. So, everyday a good number of people come to open an account with HSBC at each of its branches. The CSOs make most of those people as the customer of HSBC, Bangladesh by opening different accounts, offered by the bank.

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ATM HSBC is one of the beginners to introduce Automated Teller Machine in Bangladesh. Now, it has a strong and reliable ATM network through the country. HSBC provides a free ATM card with all of its savings and current accounts. From this section customers are getting their ATM Cards, PINS, and necessary guidelines for using ATMs effectively and efficiently. Credit Card At present, HSBC has a co-branded credit card services with the Prime Bank Limited. This section handles all the requests for credit cards and also provides necessary information for using the card. Phone Banking The Phone Banking facility of HSBC brings the bank just in dialing distance. It works 24-hours day, 7 days a week. The customer services department is processing all the requests for this service and also is providing Phone Banking PIN to customers. Standing Instruction Standing Instruction is one of the most useful and innovative services of HSBC, Bangladesh. By using the on-line facility of HSBC, a customer can stop payment of a certain cheque, make payment to prior selected parties, transfer money between his or her HSBC accounts etc. After getting the Standing Instruction (SI) from customers, the CSOs make changes according to that instruction in the central computer system of HSBC, Bangladesh and all the branches are getting that information immediately.

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The following figure will display this process more clearly:

Computer System of HSBC, Motijheel Branch Receive Standing Instruction from customers

Send Updated Information

Make change according to that instruction

Central Computer System of HSBC, Bangladesh

Send Updated Information

Send Updated Information

Send Updated Information

Computer System of HSBC Head Office, Bangladesh

Computer System of HSBC, Gulshan Branch

Computer System of HSBC, Dhanmondi Branch

Figure 4.3: Processing of Standing Instruction at HSBC, Bangladesh

In this section, customers are getting the above discussed services along with the earlier mentioned services in a truly on-line environment. It means, when a CSO makes any change according to the instruction of customer; that information immediately uploaded in the central computer system; which sends updated information instantly to all of its branches in Bangladesh. Almost 95% customers are pleased with the services of this section. An average of 5% daily visited customers is not satisfied with the services; mainly because of some miscellaneous problems; which will be mentioned in the problem section of this report.

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PART-5: ANALYSIS OF HSBC

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Financial Analysis of HSBC:

The stock price of HSBC as at 19 August, 2011 are as follows: Share Price: Share Price: As of 19 August, 2011 London GBP New York USD Paris EUR Hong Kong HKD 5.11 $41.76 5.84 HK$65.20

FINANCIAL RATIOS
Current Ratio Quick Ratio

2007
0.91 0.22

2008
0.94 0.33

2009
1.02 0.49

Inventory Turnover Fixed Asset Turnover Total Asset Turnover

0.05 0.54 0.11

0.06 0.65 0.12

0.07 0.94 0.11

Debt Ratio Times Interest Earned

0.88 7.81

0.88 8.08

0.86 25.55

Gross Profit Margin Operating Profit Margin

69.84% 55.39%

70.29% 54.96%

71.61% 55.27%

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Net Profit Margin Growth of Net Profit Margin

28.36%

25.93% -8.57%

32.32% 24.61%

Return on Total Assets (ROA) Return on Equity (ROE) Growth of ROA Growth of ROE

3.07% 25.30% -

3.00% 24.46% -2.21% -3.34%

3.63% 26.92% 21.17% 10.06%

Liquidity Analysis The main purpose of this ratio was to identify whether HSBC had enough current assets to meet the schedule current payment of its
1.20 1.00 0.80

liabilities

Liquidity & Asset Utilization

0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 Quick Ratio Inventory Turnover Fixed Asset Turnover Total Asset Turnover Current Ratio

with a margin of safety for possible losses assets, in current as

such

inventory shrinkage or collectable loans. A acceptable generally current

ratio is 2 to 1. In the year 2007 and 2008 we can see that HSBCs ability to meet sh ort term obligations was under per due to ratios showing below 1 (0.91 and 0.94 respectively)value. But if we consider the year 2009, the current ratio was 1.02. HSBC achieved such liquidity position due to its effort in increasing fixed deposits (long term liabilities). Although HSBC did not cut back on savings and current accounts, it simply provided better deals to depositors to fix their fund for longer period. However, liquidity position is still lagging behind the benchmark by slight degree which is reflected in its Quick Ratio, which is its ability to meet even shorter duration of obligations. An acid-test of 1:1 is considered satisfactory, yet in the year 2007 and 2008, HSBC

Times

0.60 0.40 0.20 0.00

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had less ability to meet its shorter-term obligations with its most liquid assets (0.22 and 0.33 respectively). In the year 2009, the quick ratio of HSBC was 0.49, which was higher than previous two years resulting from the above strategy undertaken by HSBC. Nevertheless, the position is still vulnerable to overwhelming withdrawals by the deposit holders living HSBC in the verge of liquidity crisis. Since, Current Ratio is significantly higher than quick ratio, HSBCs position is very complex by nature. Generally this sort of discrepancy between two liquidity ratio marks the downturn of an organization in tandem with the economy

Asset Turnover Analysis HSBC was fairly consistent in utilizing their assets and increasing the efficiency of their use. In the year 2009, HSBCs liquid assets were sold and replaced as a product for 0.07 t imes which was higher than both 2008 and 2007 inventory turnover percentage (0.06 and 0.05 respectively). HSBC reduced its holding cost and spent fewer funds on rent, utilities, insurance etc.. Given the nature of financial products HSBC provides the values are worth appreciation and any increase in value is definitely favorable.

In the year 2009, the fixed asset turnover ratio was 0.94 days that was higher than the year 2007 and 2008 (0.54 and 0.65). In 2009 HSBC generated more net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation than 2007 and 2008. Investment in fixed asset properties for other organizations was not being efficient for HSBC. HSBCs Total Asset Turnover ratio was same in the year 2007 and 2009. The ratio was 0.11 times. Which means HSBC was not efficiently using its assets in generating sales or revenue. Although it was a higher in 2008 at 0.12 times, however, it was not significant change in the performance of assets (loans) and it declined again in 2009.

The above values of all three asset utilization ratios explain further why the organization is suffering from short term liquidity crisis. Inefficient turnovers of loans are hampering the return bank can generate from using the client deposits before they withdrew their fund, or their deposit term reaches maturity.

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Financial Leverage Position HSBC thrives to achieve the best leverage ratio to fund its investments. Over the past years, their strategies to increase their asset base through various campaigns have enabled them to achieve a good balance between its long-term liability and assets.In the year 2007 and 2008 the debt ratio was same. The ratio was 0.88. That means HSBCs leverage along with the potential risks faces in terms of its debt-load was in control as the ratio was below 1. In 2009 HSBCs 0.86 % assets were provided via debt which is in per with the banks performance to meet its long-term obligations. However, the debt performance yet to reach its industry par as financial institutions relies mostly on deposits which are long term debt obligations.In the year 2007 the time interest ratio of HSBC was 7.81 and in 2008 the ratio was 8.08 which were very close to 2007 ratio. That means in 2007 and 2008 less earnings are available to HSBC to meet interest payments and that the business is more vulnerable to increases in interest rates. But in the year 2009 the time interest ratio was

Debt Ratio
30.00 25.00 20.00

increased dramatically at
0.90 0.89 0.88
Times Interest Earned

25.5% which indicates that HSBC was more defensive to increases in interest rates. They

Times

0.87 0.86 0.85 0.84

15.00 10.00 5.00 0.00

constantly revised their interest rate structures to

Debt Ratio

support both deposits and loans keeping provided periodically, the on rates deposits

0.83 0.82 2007 2008 2009

much shorter than what is provided against loans.

Financial Profitability Position of HSBC

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Profitability Position of HSBC Profitability of HSBC over its assets is in an opposite position than what its asset utilization projected. Usually if a business is liquid and efficient it should also be Profitable. However, although its liquidity and efficiency suffers, profitability does not get below average than the industry.

Profitability Ratio
69% 59% 49% 39% 29% 19% 9% -1% -11% Operating Profit Margin Gross Profit Margin Growth of Net Profit Margin

Net Profit Margin

2007

2008

2009

The graph above shows how the net profit margin is above 25% for HSBC. Although its growth became negative in the year 2008, however, tighter managerial control was able to pull its value back to a positive kick-off. In the year 2009, gross profit margin after accounting for all the expenses were 71.61% which is previous high from 70.29% in 2008 and 69.84% in 2007. Similar picture can be sighted for operating profit margin as well. Nevertheless, the impact of low liquidity and turnover had its turn downs by keeping the bank tied down to a minimum level of growth of only about 25% and at a constant level. Without the deficiencies, the margins could have soared even higher.

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The growth of ROA and ROE for the organization was moderate in 2008 when both of the growth figures became negative relative to the year 2007. HSBC managed to hold up and boost its ROA and ROE significantly in the following year 2009.

Return Analysis
30% 25% 20% 15% 10% 5% 0% -5% 2007 2008 2009 Growth of ROA Growth of ROE Return on Total Assets (ROA) Return on Equity (ROE)

Return on Asset (ROA) In the year 2007, HSBC generated 3.07% of profit relative to its total assets. The ratio declined at 3% in 2008. But in 2009 HSBCs management was efficient enough at using its assets to generate earnings (increasing turnover). The ratio was much higher than the previous two years at 3.63%.

Return on Equity (ROE): HSBC earned 25.30% profit with the money owners have invested. But in 2008 HSBC generated 24.46% profits from every unit of owners equity. In the year 2009, HSBC efficiently used the investment funds to generate earnings growth. The ratio was 26.92% which was higher than the last two years.

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BANKING INDUSTRY ANALYSIS:

Banking industry in Bangladesh is characterized as a highly competitive and regulated sector. Market is reaching near saturation, with adequate banks already in operation, and upcoming few more. Hence, the market competiveness is increasing by day. The competition is even more fueled by deregulation of certain policies by the central bank, which allowed financial institutions to pursue more aggressive market penetrating financial packages. The products offered by financial institutions, now are more suitable for sophisticated and modern needs of consumers and businesses. Bangladesh Bank Annual report depicts four categories of scheduled banks currently operating in the financial sector:
State-owned Commercial Banks (HSBCs), Development Finance Institutions (DFIs), Private Commercial Banks (PCBs) Foreign Commercial Banks (FCBs)

Market Dominance of Scheduled Banks

PCBs 63% FCBs 19%

Nevertheless, banking and financial sector continues to build up competition, with the ever increasing demand for fund. Loose regulation of Central Bank may be advisable, if the players of the industry can capitalize the booming banking sector is more DFIs on the opportunity. Moreover, 8% likely to attract even more foreign investments, supplementing the buildup of foreign currency reserve in the economy.
10% SCBs

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FIVE FORCES OF THE INDUSTRY: Micheal E. Porters well-known framework, known as the five forces model focuses forces that shape competition within an industry. The stronger the five forces, the more limited is the ability of established companies to raise market share and earn greater profits. The influence of the five forces in the banking industry has been discussed below: Porters 5 Forces in Banking Industry of Bangladesh

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Force 1: Threat of New Entrants

During the last 5 years, Bangladeshi Banking industry has undergone several changes in terms of its competitiveness. Several new PCB has commenced their business along with Foreign Banks, being attracted to the large and lucrative emerging economy of Bangladesh. Due to high rising income and more inclination towards consumption based spending, several banks have tried to capitalize over such consumer and business attitude. Private local banks such as Prime Bank, Eastern Bank, DBBL and Dhaka Bank, have outperformed many of the state-owned banks and are in par with the Foreign Banks. Among the foreign banks, Standard chartered, Bank-Alfalah, Citi NA and Commercial Bank of Cylon is thriving the market since their commencement. However, strong and long presence of HSBC in Bangladesh has allowed to the bank to create a dynamic customer preference and brand loyalty, which has prevented much of the market share being siphoned by the PCBs. Nevertheless, in order for HSBC to sustain its competitive advantage as First-Mover and high brand awareness, it needs to develop more innovative and aggressive financial products that could keep competition further off-site. Moreover, HSBC has tremendous local knowledge and old partners in business and its network (both in Bangladesh and especially in the global market) is excessively large for other banks to compare. Thus, it will be exceptionally difficult for any new competitor to pose any serious threat to HSBC Bangladesh.

Force 2: Threats of Substitutes

Upcoming competition is being severely intensified as both domestic and foreign banks are coming up with innovative product solutions to beat HSBC at its own game. BRAC bank is already considered a huge competitor of HSBC as they growing at a phenomenal rate. Other banks like EBL, DBBL are also offering competitive products. These banks are taking away some market share from HSBC. As the number of competition is growing the threat of substitutes is also increasing. Moreover, in an era defined by blurring differences between banking and non-banking financial institutions, HSBC will always need to be on the look-out for rivals emerging from a different

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horizon that might seem distant at the beginning. Microfinance institution is one example of a type of non-banking financial institution that has started eating up conventional banks share of credit in the overall industry. Although HSBC Bangladesh has not been affected by this as the bank focuses on larger corporate clients (and has less services outside the capital city), other nonbanking institutions might come up posing serious threat to the bank.

Force 3: Bargaining Power of Clients The extent of bargaining power is different for the individual customers of personal banking and corporate customers. Since, deposits made by individual consumer clients are insignificant, compared to the amount of single deposit made by a corporation, consumers tend to have lowzero bargaining power in terms of return negotiation. However, owing to the large balance of corporate deposits, Corpoartions tend to enjoy more privilege form the banks. They are more entitled to banks special rate while depositing and borrowing transaction takes place between the organizations. Besides, wide variety of services and products which are offered by HSBC is not likely to be offered by domestic banks and thus customers get little choice when it comes to special transaction on international par. Hence HSBC continues to enjoy superior bargaining power over its customers.

Force 4: Bargaining Power of Depositors Cliental and corporate depositors are considered to be the biggest supplier for a banking institution. Their provided deposits are the source of fund that the bank reinvest in different assets in form of Loans and Advances, Securities and Repos to earn profit and sustain the business. The customers coming to HSBC are able to afford the high charge rates applicable to them compared to the nationalized banks. So the bargaining powers of depositors are extremely high upon accumulation. Unless the bank can understand their needs, and offer them proper value-added services for which the customers are paying fees, the depositing customers can leave the bank, putting the bank in a financial insolvency.

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Force 5: Rivalry among Existing Banks

For the last 5 years, intensive competition is prevailing among the banks to increase their market share and drive out competition. HSBC became the giant with around 70% market share of the total foreign banks after successful acquisition of Grindlays and AMEX Bank, and thus HSBC still remains the main competition of HSBC in Bangladesh. Moreover, other foreign banks such as Citibank N.A. and Commercial Bank of Ceylon are rapidly expanding their credit portfolio and thus can be serious competition for HSBC. Existing local banks are also aggressively marketing their products and offering attractive lending and deposit rates, while at the same time opening up several valu-added services such as SMS, Internet and Phone-banking which can grab customers. Until recently The City Bank of Bangladesh has started offering American Express cards and products for exclusive customers. Such assertive activity can harm HSBCs position (especially since HSBC Bangladesh does not yet have its own credit card) in the future unless the bank reacts proactively to these competitors.

To sum-up the industry condition, financial sector is active more than ever and the competition is being strengthened every year. It will be wise for HSBC to start reacting and take action against its market position, if it intends to keep its title as one of the market leaders in the Financial Sector

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SWOT ANALYSIS OF HSBC BANGLADESH:

Core Strength

Corporate Identity Distinct Schedule Efficient Performance Empowered Work Force Equalization Management by Objective (MBO) Modern Equipment and Technology

Core Weakness

Narrow Operating Span Lack of Marketing activities Conservative Product Offering Lack of client confidence Lack of Manpower

Immidiate Opportunities
Large and growing market Experienced Managerial Know-How Strategic Acquisitions Rise of e-banking Increasing number of third party outsource

Solemn Threats
Strengthening Competition Policy reforms Changing preference of clients Default Culture

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Strength of HSBC

A. Strong Corporate Identity: HSBC is the leading provider of financial services worldwide and it is one of the top ten multinationals currently operating in the world. With its strong corporate image and identity, it can make better position in the mind of customers. This image has helped HSBC to grab the personal banking sector of Bangladesh very rapidly. B. Distinct Schedule: Everyone in HSBC from the appraiser to the top management has to work for the same schedule from a different aspect of the same goal, interfacing simultaneously at all level. This allowed efficient transfer of knowledge among the employees from top management C. Efficient Performance: HSBC provides hassle free customer service to its client base comparing to the other financial institutions of Bangladesh. Personalizes approach to the needs of customers is its motto. D. Empowered Work Force: The human resource of HSBC is extremely well thought and perfectly managed. The top management believed in empowerment, which makes HSBC a better place for the employees. The employees are not overpowered by authority, rather are able to grow as the organization matures. E. Equalization: At HSBC, workshops are conducted periodically. On the workshops, all people participate as equals, with new members free to openly challenge top managers. This allows for stronger idea generation and employee empowerment. F. Management by Objective (MBO): HSBC also has Management by Objectives (MBO) everywhere. Each person has multiple objectives. All the employees must have to get the approval of their bosses on what they are going to do. Later they review as to how well they have performed their job with their management as well as in the peer group. G. Modern Equipment and Technology: HSBC owns the best banking and information technology equipments in Bangladesh. Its ultra modern systems starting from terminal PCs to HUBs are based on the international HSBC group standards and are the latest. The Hexagon product is one of the best examples in this context.

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Subordinate Strengths 1. Strong Employee Boding and Belongingness: HSBC employees are one of the major assets of the company. The employees of HSBC have a strong sense of commitment towards organization and also feel proud and a sense of belonging towards HSBC. The strong culture of HSBC is the main reason behind this strength. 2. Young Enthusiastic Workforce: The selection and recruitment of HSBC emphasizes on having the skilled graduates and postgraduates who have little or no work experience. This type young and fresh workforce simulates the whole working environment of HSBC, who can be trained and mould to support HSBC strategy with their best performance i.e. HSBC believes in Right Person at the Right Place. 3. No Communication Barriers: Human Resource Division has tried hard to avoid communication barriers and structural bureaucracies. He little existence of authoritative barriers among the different level of management stimulates a feeling of importance as their work get priority over the position. 4. Spread out risks: HSBCs strong global presence helps it to spread risk and offers significant economies of scale. So since the bank is not dependant on its operations on any on economy, it means that if the need and situation arises, HSBC Bangladesh can take funds from other more profitable operational areas of HSBC to expand rapidly and market its products more aggressively to increase its hold in Bangladesh. Weakness of HSBC 1. Narrow Operating Span: HSBC has a very narrow operation span in Bangladesh. It has only 12 branches in Bangladesh situated in Dhaka, Chittagong and Sylhet. Various geographic segments are currently not availing the services of HSBC due to inconvenient branch location or absence of neighborhood branches. The bank does not plan on expanding in upcoming months. 2. Absence of Strong Marketing Activities: HSBC currently do not have any strong marketing activities through mass media e.g. Television, radio or internet. The only medium of transmission is through daily newspapers and bill boards. HSBC currently does not have any palns to expand their marketing activities except some consumer campaign they hold. In a vast

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competitive market where every competitor is aiming to expand, HSBC lack of marketing interest might prove losing costly market share 3. Conservative Product Offering: Another major weakness of HSBC Bangladesh is the small range of products that are offered by the bank. Even today, the bank does not have products such as debit card and international credit card. In todays market, this can prove costly to the bank as competition is becoming intense and other banks are aggressively introducing new products to capture a larger chunk of the market. 4. Lack of Client Confidence: It is a widespread belief among Bangladeshi local consumers that if they deposit their savings or lend from a foreign bank such as HSBC, there will be more hidden charges imposed by the bank relative to a local bank, and thus the customer will end up losing money. As long as this wrong belief persists, it will act as a hindrance to the prospects of HSBC Bangladesh. 5. Lack of human resource: One of the main weaknesses of HSBC Bangladesh is its lack of number of employees, particularly in the branches. In terms of the number of customers served per customer service manager, the situation is much worse for a foreign bank such as HSBC Bangladesh rather than a local bank. The reason as to why this problem persists is not the banks inability to hire more employees, but in reality it is the fact that HSBC does not have too many branches/offices and thus not much space to accommodate the required number of employees. Opportunities

1. Growing customer-base: Bangladesh has a very rapidly increasing upper-middle class and upper-class section of the community. HSBC can take advantage of the increasing consumerspending in Bangladesh, thereby earning more profits in the countrys operations. Besides growing consumer-spending, Bangladesh also maintains a very good investment climate which is resulting in new businesses setting up and expansion of existing businesses. HSBC Bangladesh also can target these organizations to grow their client-base. 2. More experienced and managerial know-how: The top management team of HSBC is expert in banking activities. The operating policies established by them are unique and unified. All the members of the team carry out their management roles exhaustively. They

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equally contributed to HSBCs superior leadership, by carrying out their unique roles. They worked well together, respecting each others abilities and arguing openly and without any rancor when they disagree. 3. Acquisitions: HSBC is one of the experts in acquiring various firms and organizations. In Bangladesh it can also diversify quickly by acquiring various local banks and increase its total operation in Bangladesh rapidly. 4. Prospects of e-banking: With Bangladesh Bank recently relaxing regulations on online banking transactions and allowing banks to provide enhanced e-banking services; this is a big opportunity for banks all over the country to rapidly capture a good chunk of this market. Perhaps with its strong internet backbone, HSBC is in a better position than most rivals to avail this opportunity. 5. More scope of outsourcing functions: Nowadays, several firms are opening up in Bangladesh and banks can outsource some of their tasks to these firms. For example, banks can now outsource tasks of their marketing functions to other firms that provide part-time contractual employees for the banks, thereby contributing to lowered operational costs of the banks. Call centre of banks is another common activity of banks which are now outsourced in Bangladesh. Threats to HSBC

1. Strengthening competition: The upcoming private local and multinational bank poses a serious threat to the existing banking networks of HSBC. It is expected that in the next few years more commercial banks will emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against and win the battle of banks. 2. Pricing and charges: Although it is a policy of HSBC Bangladesh to impose higher charges and pricing in order to maintain an image of prestige and brand, this policy might have to halted here as Bangladesh Bank tries to promote lower costs for the banking customers. Moreover, in an environment of intense competition, other multinational banks such as

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HSBC might also lower their charges and then HSBC will be in deeper pressure to start charging less to their customers. 3. Changing preference of individuals: Due to Bangladesh Bank regulations capping the interest rate on bank loans, banks such as HSBC have also reduced the interest they pay on different types of deposits in order to maintain a profitable spread. This has, in turn, induced many individuals to invest their savings elsewhere rather than keep it in banks, which might enable them to earn higher returns. The stock exchange is one very good example where people nowadays prefer to invest their savings instead of depositing in banks. 4. Default Culture: This is a major problem for HSBC that it is very new organization in Bangladesh, the problem of non-performing loans or default loans is very minimum or insignificant. However, as the bank becomes older this problem will arise enormously and the bank may find itself in a more threatening environment. Thus HSBC has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem. Although the percentage came down to 13.23% in 2007 from over 41% in 1999, still it is much higher than the internationally accepted tolerable range and, thus, is a threat to our banking sector.

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PART-6: PROJECT PART

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Literature Review: Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.( Farris et al, 2010 )

Customer Satisfaction is a pillar to the success of a business. This is easily forgotten in times that place acquiring new customers into the center of business and marketing strategies. A high customer satisfaction will bring loyal customers and therefore a huge potential: they buy more often, with a higher order value, and they are likely to bring new customers. The key factors influencing customers selection of a bank include the range of services, rates, fees and prices charged (Abratt and Russell, 1999). It is apparent that superior service, alone, is not sufficient to satisfy customers. Prices are essential, but not more important than service and relationship quality. Furthermore, service excellence, meeting client needs, and providing innovative products are key to success in the banking industry. Most private banks claim that creating and maintaining customer relationships are important to them and they are aware of the positive values that relationships provide. (Colgate et al., 1996).

Indeed, customer satisfaction has for many years been the key in determining why customers leave or stay with an organization. Organizations need to know how to keep their customers, even if they are satisfied. Reichheld (1996) suggests that satisfied customers may look for other banks because they believe they might receive better service elsewhere. Fornell (1992) showed that although customer satisfaction and quality appear to be important for all firms, satisfaction is more important for loyalty in industries such as banks, insurance, mail order, and automobiles.

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Ioanna (2002) further proposed that product differentiation is impossible in a competitive environment like the banking industry. Banks everywhere are delivering the same products. For example, there is usually only minimal variation in interest rates charged or the range of products and services available to customers. Bank prices are fixed and driven by the marketplace. Thus, bank management tends to differentiate their organization from competitors through service quality. Service quality is an influential element that impacts customers satisfaction level in the banking industry. In banking, quality includes differing types of convenience, reliability, services portfolio, and more importantly, the staff delivering the service.

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Banks must be able to provide up-close personal service for customers who come with high expectations. For customers who value convenience most, banks must offer the latest product such as electronic banking, touch-tone phone account access and internet banking. Clearly, customer value can be a strong driver of customer retention (Slater, 1997; Woodruff, 1997).

Todays consumers have more choices for their financial needs than ever before. Technology, globalization, increased competition and increased consumer mobility have dramatically changed the way people bank (Harwood, 2002). Many financial institutions are looking at branding techniques to differentiate themselves. Harwood (2002) argued that branding is critical in the banking industry where all firms offer about the same kinds of products. Accordingly, bankers must be able to build and manage their banks image in order to clearly define the differences between their bank and its competitors. Switching barriers have been used as marketing strategies to make it costly for customers to switch to another organization. Such barriers include search costs, transaction costs, learning costs, loyal customer discounts and emotional costs (Fornell, 1992). These barriers provide disincentives for the customer to leave the current organization. Curasi and Kennedy (2002) have shown that customer satisfaction does not predict the continuation of the relationship. High switching costs are an important factor binding the customer to the service organization. Even with relatively low levels of satisfaction, the customer continues to patronize the service provider because repurchasing is easier and more cost effective than searching for a new provider (Curasi and Kennedy, 2002). To compete successfully in todays competitive marketplace, banks must focus on understanding the needs, attitudes, satisfactions and behavioral patterns of the market (Kaynak and Kucukemiroglu, 1992). Consumers evaluate a number of criteria when choosing a bank. However, the prioritization and use of these criteria differs across countries, and thus cannot be generalized. For example, in a study of Canadian customers in Montreal, Laroche and Taylor (1988) found that convenience is the principal reason for bank selection, followed by parental influence with respect to the status of the bank. In contrast, Kaynak and Kucukemiroglu's (1992) study of the Hong Kong banking market discovered that customers choose their banks because of

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convenience, long association, recommendations of friends and relatives, and accessibility to credit.

Social and technological change has had a dramatic impact on banking. These developments, such as internationalization and unification of money markets and the application of new technologies in information and communications systems to banking, have forced banks to adopt strategic marketing practices. These have included offering extended services, diversification of products, entry into new markets, and emphasizing electronic banking (Mylonakis et al., 1998). This greater range of services and products, along with improvements in communications efficiency, could have a significant impact on customer satisfaction and consequent behavioral intentions. As changes in the broad financial fields emerge and business activities converge (i.e., the offering of insurance, financial planning, and share brokerage by a bank), it is imperative to differentiate banking products from other similar or complementary ones that are offered by bank affiliates or non-banks (Mylonakis et al., 1998).
The Bank Benchmarking study offers an insight into the performances of retail banks operating in the UAE with regards to response time and service quality that UAE retail banks deliver through all channels,

Ethos Consultancy, the region's leaders in customer service excellence, conducted 1,500 visits to the 29 banks covered and data collected measured 80 different criteria which mean 40,000 responses were analyzed. The result shows the following key drivers in customer satisfaction of banks.

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RESEARCH METHODOLOGY:
SURVEY DESIGN The Survey was systematically designed to capture a representative view of Employee Engagement Index. Standard questionnaire response approach was used to evaluate the overall approach of the officials. The questions were distributed across a wide variety of items. INSTRUMENT DEVELOPMENT (QUESTIONNAIRE): Questionnaires are the most frequently used data collection method in educational and evaluation research. Questionnaires help gather information on knowledge, attitudes, opinions, behaviors, facts, and other information. Development of a valid and reliable questionnaire involves several steps taking considerable time. (Malhotra, 2009) The following explanation describes the sequential steps involved in the development and testing of questionnaires used for data collection.

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STEP 1- BACKGROUND: In this initial step, the purpose, objective, research questions, and hypothesis of the proposed research are examined. Determining who the audience, their background, especially their educational/readability levels, access, and the process used to select the respondents (sample vs. population) are also part of this step. (Malhotra, 2009).The purpose of my questionnaire was basically to find out the opinions of HSBC employees about the relationship between employee engagement and organizational success. STEP 2- QUESTIONNAIRE CONCEPTUALIZATION After developing a thorough understanding of the research, the next step was to generate statements for the questionnaire. In this step, content (from literature/theoretical framework) were transformed into statements/questions. In addition, a link among the objectives of the study and their translation into content is established. (Malhotra, 2009) Major variables (independent and dependant) are identified and defined in this step.

STEP 3- FORMAT AND DATA ANALYSIS In Step 3, the focus was on writing statements, selection of appropriate scales of measurement, questionnaire layout, format, question ordering, and proposed data analysis. Scales are devices used to quantify a subject's response on a particular variable. Understanding the relationship between the level of measurement and the appropriateness of data analysis is important. For example, if regression or correlation is one mode of data analysis, the dependent variable must be measured on an interval/ratio scale (strongly disagree to strongly agree). (Lind, Marchal & Wathen, 2008)

STEP 4- ESTABLISHING VALIDITY As a result of Steps 1-3, a draft questionnaire is ready for establishing validity. Validity is the amount of systematic or built-in error in measurement. Validity is established using a panel of experts (in this case, my faculty member).Which type of validity (content, construct, criterion, and face) to use depends on the objectives of the study. (Malhotra, 2009)

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The following questions were addressed in Step 4: Is the questionnaire valid? In other words, is the questionnaire measuring what it intended to measure (relationship between employee engagement and organizational success) Does it represent the content? Is it appropriate for the sample/population? Does the instrument look like a questionnaire? Is the questionnaire comprehensive enough to collect all the information needed to address the purpose and goals of the study? Addressing these questions coupled with carrying out a readability test enhanced my questionnaire validity. Approval & feedback from my honorable faculty was also obtained. Now the questionnaire was ready for the survey.

STEP 5- ESTABLISHING RELIABILITY In this final step, reliability of the questionnaire was carried out. Reliability refers to random error in measurement. Reliability indicates the accuracy or precision of the measuring instrument. (Lind, Marchal & Wathen, 2008). After the survey was over, I wanted to see whether it offered a consistent reply from the respondents. The survey seek to answer the question, does the questionnaire consistently measure whatever it measures? Data collected from the survey was analyzed using SPSS (Statistical Package for Social Sciences) software. The reliability coefficient (alpha) can range from 0 to 1, with 0 representing an instrument with full of error and 1 representing total absence of error. A reliability coefficient (alpha) of .40 or higher is considered acceptable reliability. (Lind, Marchal & Wathen, 2008)

The process is illustrated below:

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Conduct Survey

Run Reliability Test

STEP - 5

Observe Result

Target Audience, Population Sample Purpose & Goals, Objectives.

Revision Readability Test

Field Test
STEP - 4

Panel of Experts Approval

Generate Statements

Knowledge Attitudes Opinions Behaviors

Questionnaire Format

Variables: Dependant & Independent

STEP - 1 STEP - 2

Appropriate Scale of Measurement

STEP - 3

FACTOR ANALYSIS: Factor analysis is a method of data reduction. It does this by seeking underlying unobservable (latent) variables that are reflected in the observed variables (manifest variables). There are many different methods that can be used to conduct a factor analysis (such as principal axis factor, maximum likelihood, generalized least squares, unweighted least squares), There are also many different types of rotations that can be done after the initial extraction of factors, including orthogonal rotations, such as varimax and equimax, which impose the restriction that the factors cannot be correlated, and oblique rotations, such as promax, which allow the factors to be correlated with one another. Given the number of factor analytic techniques and options, it is not surprising that different analysts could reach very different results analyzing the same data set.

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However, all analysts are looking for simple structure. Simple structure is pattern of results such that each variable loads highly onto one and only one factor. We do factor analysis when is less than 0.4, because then it is too insignificant. Factor analysis attempts to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables. Factor analysis is often used in data reduction to identify a small number of factors that explain most of the variance observed in a much larger number of manifest variables. Factor analysis can also be used to generate hypotheses regarding causal mechanisms or to screen variables for subsequent analysis (for example, to identify co linearity prior to performing a linear regression analysis). PRIMARY DATA: As mentioned earlier, a survey was conducted with a structured questionnaire. The research was based on the relationship between some independent variables and some dependent variables. The independent variables are: The dependent variable is: Customer Satisfaction Punctuality Sincerity Right solution Well information providing Prompt services Willingness to help Fair Fees structure Banking Environment Individual attention Products and services offered Availability of ATM Booth Feeling safe in transactions

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The questionnaire was divided into two (2) sections. First section was used for respondents different Q & A part and the second section was used for the independent variables. In each section, there were 4-5 relevant statements. In second section the participants had to tick in the boxes provided beside each question according to the extent of their agreement (scale provided at the beginning of the questionnaire).

Scale rating provided was: 1 =Strongly Agree 2 = Agree 3 = Neutral 4 = Disagree 5 = Strongly Disagree

SECONDARY DATA: While doing this research I took help of some secondary data. Most of the information was obtained through internet browsing. I also went through couple of books on customer satisfaction. HSBCs brochures, booklets and intranet were also of great help. SAMPLE SIZE: The sample size for this research was 54. TYPE OF RESPONDENTS: All the respondents were randomly selected for the survey and were both male and female. The participants of the conducted survey were selected from the different level of customers of the HSBC. Most of the people participated in the survey were between 25 to 30 years of age. There were employees from different organizations. Most of their educational background ranged from undergraduate to post graduate.

Hypothesis Building:

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Hypothesis: Any undecided explanation can be referred to as a hypothesis which we use in many managerial decisions. For example: qualified employees generate more revenue. This statement is still faltered because there is no proof of its validity. This is why we conduct hypothesis testing which shows the validity of the explanation. (Malhotra, 2009)

A hypothesis should have testability so that it can proceed to the stage of hypothesis testing. Hypotheses must also be able to explain the phenomena under any set of conditions; if a hypothesis can only explain a phenomenon in one set of conditions, it is generally considered unacceptable. (Malhotra, 2009)

Hypothesis Testing: This test tries to prove the validity of the given hypothesis. The test involves a series of experiments in many different conditions. If the hypothesis does not stand up to the tests in all conditions then a new one is formed and submitted to the same hypothesis testing. If the new hypothesis passes in all conditions then it can be considered as a reliable and valid theory. I have used statistical hypothesis testing for which I have collected large quantities of data through questionnaires and interview. Then I have conducted tests (mean, correlation, reliability, regression).

In a hypothesis test there are two hypotheses: null hypothesis and alternative hypothesis. Null hypothesis is the accepted decision and alternative hypothesis is the decision that one tries to prove.

Importance Of Hypothesis Testing:

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It enables managers to better understand quality data. Data collection is the foundation for employee evaluation but without correct data processing, it is difficult to make an objective conclusion. (Malhotra, 2009)

For instance, the success rate of different groups is 15% and 10%, respectively. In this case it would be an incomplete judgment saying that one group is better than the other because other variables like working conditions, job satisfaction are relevant to job performance. On this occasion, hypothesis testing is instrumental in explanation of this dilemma.

Test Statistic: It is the random variable X whose value is tested to arrive at a decision. The Central Limit Theorem states that for large sample sizes (n > 30) drawn randomly from a population, the distribution of the means of those samples will approximate normality, even when the data in the parent population are not distributed normally. A z statistic is usually used for large sample sizes (n > 30), but often large samples are not easy to obtain, in which case the t-distribution can be used. The population standard deviation s is estimated by the sample standard deviation, s. The t curves are bell shaped and distributed around t=0. The exact shape on a given t-curve depends on the degrees of freedom. In case of performing multiple comparisons by one way ANOVA, the Fstatistic is normally used. It is defined as the ratio of the mean square due to the variability between groups to the mean square due to the variability within groups. The critical value of F is read off from tables on the F-distribution knowing the Type-I error aand the degrees of freedom between & within the groups.

Rejection Region :

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It is the part of the sample space (critical region) where the null hypothesis H 0 is rejected. The size of this region is determined by the probability (a) of the sample point falling in the critical region when H0 is true. a is also known as the level of significance, the probability of the value of the random variable falling in the critical region. Also it should be noted that the term "Statistical significance" refers only to the rejection of a null hypothesis at some level a. It implies only that the observed difference between the sample statistic and the mean of the sampling distribution did not occur by chance alone. Decision: If the test statistic falls in the rejection/critical region, H0 is rejected, else H0 is accepted.

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Figure: Steps in hypothesis testing

My Hypothesis:
In my project I have shown the relationship between different factors and customer satisfaction. To prove my point, I have taken twelve independent variables. Then I have shown the effect that these variables have relation with the factors of customer satisfaction. So my hypothesis in this project is as follows: Hypothesis 1: The level of customers satisfaction about the services provided by HSBC is positively related to the level of customers exposure about the banks service packages. Hypothesis 2: HSBC Customers expectation of service matches banks service promise. Hypothesis 3: HSBCs Customers are updated of the banks services. Hypothesis 4: HSBCs Customer involvement with the bank is high.

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Demographic Analysis: As mentioned earlier, total number of respondents was 54. They can be classified in the following types:

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80

Reliability Test: The following questions are interrelated to each other. So any discrepancy in the reliability may end up with inaccurate results. So reliability test is necessary here 1. How do you find the overall service of HSBC? a. Very Satisfied b. Satisfied c. Neutral d. Dissatisfied e. Very Dissatisfied

2.

Customer Satisfaction in different dimensions (factors): What is your perception about HSBCs service in the following areas (1 being strongly agree, and 5 being strongly disagree).

Customer Satisfaction Factors Punctuality Sincerity Right Solution Well information providing Prompt services Willingness to help Fair Fees structure Banking Environment Individual attention Products and services offered 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2

Ranks 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5

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Availability of ATM booth Feeling safe in transactions Do the services provided by HSBC matches your expectation

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

The Alpha and Standardized Item Alpha were obtained as follows:

Reliability Statistics Cronbach's Alpha Based on Standardized Items N of Items .905 14

Cronbach's Alpha .688

Alpha Value = 0.688 As the Alpha Value is greater than 0.4, therefore we can say that the data is reliable and there is no need for Factor Analysis that would have required Data Reduction and further analysis. This shows that all the questions in that section were objective, accurate and positive. Comment: Systematic development of the questionnaire for data collection is important to reduce measurement errors. Well-crafted conceptualization of the content and transformation of the content into questions is inessential to minimize measurement error. Careful attention to detail

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and understanding of the process involved in developing a questionnaire are of immense value. Not following appropriate and systematic procedures in questionnaire development, testing, and evaluation may undermine the quality and utilization of data. (Malhotra, 2009). Since I tried to follow all the logical steps in making the questionnaire, it helped me to come out with responses which are truly representative.

Descriptive Statistics:
The table below shows the mean value and standard variations of all the variables used

Descriptive Statistics N Punctuality Sincerity Right solution Well information providing Prompt services Willingnes to help Fees structure Banking Environment Invidual attention Products and services offered Availability of ATM Booth Make you feel safe in your transactions Services provided by HSBC matches your expectation Valid N (listwise) 54 54 1.00 5.00 2.2407 1.09777 54 54 54 54 54 54 54 54 54 54 54 54 Minimum 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maximum 5.00 4.00 4.00 4.00 5.00 5.00 5.00 4.00 4.00 5.00 5.00 4.00 Mean 2.2593 2.1852 2.2407 2.3704 2.6852 2.2222 2.6852 2.0556 2.4630 2.2407 3.0926 2.0185 Std. Deviation .93537 .84840 .79941 .91726 1.02468 .94503 1.09586 .94003 .88409 .88882 .97649 .83532

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From the above statistics we can see that most of the customers are satisfied having positive answers in each of the questions. However, in case of availability of ATM booths, average answer is neutral. So, we will do further research to prove our hypothesis. Correlation

In Pearson correlation, we will find the correlation direction and magnitude among the relationship between independent variables Punctuality, Sincerity, Right solution, Well information providing, Prompt services, Willingness to help, Fair Fees structure, Banking Environment, Individual attention, Products and services offered, Availability of ATM Booth and Make you feel safe in your transactions with dependent variable How do you find the overall service of HSBC ?

How do you find the overall service of HSBC ? How do you find the overall service of HSBC ? Pearson Correlation Sig. (2-tailed) N Punctuality Pearson Correlation Sig. (2-tailed) N Sincerity Pearson Correlation Sig. (2-tailed) N Right solution Pearson Correlation Sig. (2-tailed) N Well information providing Pearson Correlation Sig. (2-tailed) 54 .763** .000 54 .571** .000 54 .301* .027 54 .575** .000 1

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N Prompt services Pearson Correlation Sig. (2-tailed) N Willingnes to help Pearson Correlation Sig. (2-tailed) N Fees structure Pearson Correlation Sig. (2-tailed) N Banking Environment Pearson Correlation Sig. (2-tailed) N Invidual attention Pearson Correlation Sig. (2-tailed) N Products and services offered Pearson Correlation Sig. (2-tailed) N Availability of ATM Booth Pearson Correlation Sig. (2-tailed) N Make you feel safe in your transactions Pearson Correlation Sig. (2-tailed) N Services provided by HSBC matches your expectation Pearson Correlation Sig. (2-tailed) N

54 .576
**

.000 54 .559
**

.000 54 .571
**

.000 54 .399** .003 54 .570** .000 54 .390** .004 54 .538** .000 54 .397** .003 54 .848** .000 54

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

From the above table it is seen that all the factors have positive correlation with the customers perspective of overall service. Punctuality and the service provided by HSBC have strong correlation with the dependant variable. However all other factors have moderate correlation with the customers perspective of overall services?

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Correlations How long have you been banking with HSBC How long have you been banking with HSBC Pearson Correlation Sig. (2-tailed) N How do you find the overall service of HSBC ? Pearson Correlation Sig. (2-tailed) N 54 -.044 .753 54 54 1 How do you find the overall service of HSBC ? -.044 .753 54 1

A negative correlation can be found between the banking years with HSBC and satisfaction. It means that customers tend to be dissatisfied as the banking relation period increases.

Regression
In the regression analysis, the quantitative effect and the relative weight of the variables Punctuality,

Sincerity, Right solution, Well information providing, Prompt services, Willingness to help, Fair Fees structure, Banking Environment, Individual attention, Products and services offered, Availability of ATM Booth and Make you feel safe in your transactions with dependent variable How do you find the overall service of HSBC?

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .860
a

.739

.662

.62021

a. Predictors: (Constant), Make you feel safe in your transactions, Fees structure, Right solution, Products and services offered, Well information providing, Prompt services, Sincerity, Availability of ATM Booth, Invidual attention, Punctuality, Willingnes to help, Banking Environment

ANOVAb Model Sum of Squares df Mean Square F Sig.

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Regression Residual Total

44.599 15.771 60.370

12 41 53

3.717 .385

9.662

.000

a. Predictors: (Constant), Make you feel safe in your transactions, Fees structure, Right solution, Products and services offered, Well information providing, Prompt services, Sincerity, Availability of ATM Booth, Invidual attention, Punctuality, Willingnes to help, Banking Environment b. Dependent Variable: How do you find the overall service of HSBC ?

Coefficients Model

Unstandardized Coefficients

Standardized Coefficients

Sig.

B 1 (Constant) Punctuality Sincerity Right solution Well information providing Prompt services Willingnes to help Fees structure Banking Environment Invidual attention Products and services offered Availability of ATM Booth Make you feel safe in your transactions a. Dependent Variable: How do you find the overall service of HSBC ? -.843 .504 .013 -.115 .215 .172 .087 .084 -.097 .075 .104 .181 .013

Std. Error .378 .135 .146 .128 .127 .110 .139 .108 .144 .141 .117 .116 .146

Beta -2.231 .442 .010 -.086 .185 .165 .077 .087 -.086 .062 .086 .165 .010 3.735 .087 -.901 1.700 1.558 .625 .783 -.679 .530 .886 1.555 .091 .031 .001 .931 .373 .097 .127 .535 .438 .501 .599 .381 .128 .928

All the above mentioned variables is responsible for the variation of the dependant variable HSBC customers perspective of overall services. Around sixty percent of the variation of customers perspective of overall services can arise due to the above twelve factors.

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Hypothesis Testing
Hypothesis 1: H0 : The level of customers satisfaction about the services provided by HSBC is not positively related to the level of customers exposure about the banks service packages. H1 : The level of customers satisfaction about the services provided by HSBC is positively related to the level of customers exposure about the banks service packages.

Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate 1 .330a .109 .091 1.01730

a. Predictors: (Constant), Do you read the instructions well ? b. Dependent Variable: How do you find the overall service of HSBC ?

ANOVAb Model 1 Regression Residual Total Sum of Squares 6.556 53.815 60.370 df 1 52 53 Mean Square 6.556 1.035 F 6.335 Sig. .015a

a. Predictors: (Constant), Do you read the instructions well ? b. Dependent Variable: How do you find the overall service of HSBC ?

Coefficientsa Model Unstandardized Coefficients Standardized Coefficients B 1 (Constant) Do you read the instructions well ? 1.547 .301 Std. Error .315 .119 .330 Beta 4.910 2.517 .000 .015 t Sig.

a. Dependent Variable: How do you find the overall service of HSBC ?

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P value for coefficient of A is 0.015. For any value of , if P-Value , we can reject the null hypothesis. So in this case we can reject the null hypotheses. The level of customers satisfaction about the services provided by HSBC is positively related to the level of customers exposure about the banks service packages. Hypothesis 2: H0 : Customers expectation of service dont matches banks service promise. H1 : Customers expectation of service matches banks service promise.

Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate 1 .848a .718 .713 .57183

a. Predictors: (Constant), Services provided by HSBC matches your expectation b. Dependent Variable: How do you find the overall service of HSBC ?

ANOVAb Model 1 Regression Residual Total Sum of Squares 43.367 17.003 60.370 df 1 52 53 Mean Square 43.367 .327 F 132.628 Sig. .000a

a. Predictors: (Constant), Services provided by HSBC matches your expectation b. Dependent Variable: How do you find the overall service of HSBC ?

Coefficientsa Model Unstandardized Coefficients Standardized Coefficients B Std. Error Beta t Sig.

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(Constant) Services provided by HSBC matches your expectation

.413 .824

.178 .072 .848

2.317 11.516

.024 .000

a. Dependent Variable: How do you find the overall service of HSBC ?

P value for coefficient of A is 0.000. For any value of , if P-Value , we can reject the null hypothesis. So in this case we can reject the null hypotheses. HSBC Customers expectation of service matches banks service promise. Hypothesis 3: H0 : HSBCs Customers are not updated of the banks services. H1 : Customers HSBCs Customers are updated of the banks services.

Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate 1 .081a .006 -.013 1.07398

a. Predictors: (Constant), What do you think about reading the reading the instructions provided by the bank ? b. Dependent Variable: How do you find the overall service of HSBC ?

ANOVAb Model 1 Regression Residual Total Sum of Squares .392 59.978 60.370 df 1 52 53 Mean Square .392 1.153 F .340 Sig. .562a

a. Predictors: (Constant), What do you think about reading the reading the instructions provided by the bank ? b. Dependent Variable: How do you find the overall service of HSBC ?

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Coefficients Model

Unstandardized Coefficients

Standardized Coefficients

Sig.

B 1 (Constant) What do you think about reading the reading the instructions provided by the bank ? a. Dependent Variable: How do you find the overall service of HSBC ? 2.077 .084

Std. Error .345 .144

Beta 6.023 .081 .583 .000 .562

P value for coefficient of A is 0.562. For any value of , if P-Value , we can reject the null hypothesis. So in this case we cannot reject the null hypotheses. HSBCs Customers are not updated of the banks services.

Hypothesis 4 H0 : HSBCs Customer involvement with the bank is not high. H1 : HSBCs Customer involvement with the bank is high.

Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate 1 .131a .017 -.002 1.06814

a. Predictors: (Constant), Are you interested in finding out new products offerings of HSBC ? b. Dependent Variable: How do you find the overall service of HSBC ?

ANOVAb Model Sum of Squares df Mean Square F Sig.

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Regression Residual Total

1.042 59.328 60.370

1 52 53

1.042 1.141

.913

.344

a. Predictors: (Constant), Are you interested in finding out new products offerings of HSBC ? b. Dependent Variable: How do you find the overall service of HSBC ?

Coefficients Model

Unstandardized Coefficients

Standardized Coefficients

Sig.

B 1 (Constant) Are you interested in finding out new products offerings of HSBC ? a. Dependent Variable: How do you find the overall service of HSBC ? 1.953 .137

Std. Error .352 .143

Beta 5.555 .131 .956 .000 .344

P value for coefficient of A is 0.562. For any value of , if P-Value , we can reject the null hypothesis. So in this case we cannot reject the null hypotheses. HSBCs Customer involvement with the bank is not high.

Other Analysis: Reason for maintaining A/C with other banks:

Do you have accounts with any other bank ? Frequency Valid .00 Yes No Total 2 35 17 54 Percent 3.7 64.8 31.5 100.0 Valid Percent 3.7 64.8 31.5 100.0 Cumulative Percent 3.7 68.5 100.0

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What is the main reason for maintaining account with different bank(s) ? Frequency Valid Better availability of branches and ATMs Better Service Better value Better other facilities Not Applicable Total Missing Total 9.00 5 9 12 17 53 1 54 9.3 16.7 22.2 31.5 98.1 1.9 100.0 9.4 17.0 22.6 32.1 100.0 28.3 45.3 67.9 100.0 10 Percent 18.5 Valid Percent 18.9 Cumulative Percent 18.9

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Almost 65 percent of the respondents have accounts in other banks and the main reasons behind this are availability of branches and ATMs, better value and, better other facilities. Internet Banking:

73 percent of the respondent finds the internet banking very useful.

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Interpersonal Communication:

The interpersonal communication between the banks representatives and customer is very limited, which is clearly noticeable in the accompanying chart. Crosstab Analysis:

Gender * How do you find the overall service of HSBC ? Crosstabulation Count How do you find the overall service of HSBC ? Very satidfied Gender Male Female Total 9 4 13 Satisfied 17 7 24 Nautral 4 5 9 Dissatisfied 4 2 6 Very dissatisfied 1 1 2 35 19 54 Total

From the sample it is seen that more percentage of male customers are satisfied with HSBC than that of female customers.

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What type of account do you maintain with HSBC ? * How do you find the overall service of HSBC ? Crosstabulation Count How do you find the overall service of HSBC ? Very satidfied Satisfied Nautral Dissatisfied Very dissatisfied What type of account do you maintain with HSBC ? Current Account Savings Account Term Salary Others Total 3 8 0 2 0 13 6 12 2 2 2 24 1 4 2 1 1 9 3 1 1 1 0 6 0 1 0 1 0 2 13 26 5 7 3 54 Total

The current and savings account holder are the major respondent in the survey and among them very small portion are dissatisfied with HSBCs service.

Recommendation: It will be nave of me to give suggestions to a multinational corporation like HSBC which is already the top financial institution of the world. But based on the survey result and my 3 months experience, I feel HSBC would even perform better if it does the following: Use Key Performance Index (KPI) or in short how many customers are served effectively in a stipulated time. Monitor employee activity regularly and take special care during rush hour. Motivate employees to serve customers at a time effective way Though it might resemble that HSBC is providing right solution in most cases, it is also a warning that the percentage of right solution is not up to the fullest. HSBC can take service evaluation to check whether their service were unto satisfactory level or not.

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 Though employees are presumed to have willingness to help all the time, the response graph says that there is a possibility that employees are not profession at their services all the time. So their line manager should sit and talk with them about this issue. Fair fees structure is a major issue of customer satisfaction. Fees structures are thereby updated considering market trends and other financial and economic factors. Customers are happy when they get fair fees structures. To them, the word fair includes local and global reputation of the bank, brand image, value chain etc. So these things should be considered while rescheduling the fees. Banking environment has been found good for HSBC, as expressed in the graph. Still there are some percentages of customers who dont like the environment. So HSBC should sit with their customers to solve the related banking environment problems.

Banking has become so user friendly that customer usually like to use ATM cards to withdraw cash than standing into the queue in the bank. From the customer responses it is visible that customers are not at all happy with the current number of ATM booths available for use. As it is an important factor of satisfaction, HSBC should look into it. From the graph it is visible that the customers opinion regarding safety in transaction is quite satisfactory. Still there are some percentages of customers who have negative comments regarding safety. So HSBC should look into it as safety has become a bigger issue nowadays. If any safety loopholes are found, HSBC should take proper action so no mishap can happen

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Conclusion The positive linkage that has been found between independent and dependent variables has proved that there are some specific factors that makes customer satisfied or dissatisfied. As customers are driving force of the banking industry, banks do a lot of marketing regarding the products and services they offer. And also they cater their customers with regularly updated offerings. HSBC is doing business for more than 15 years in Bangladesh, having a banking structure based on the localized culture, tradition by blending its brand value and norms. The survey I have done shows that customers are satisfied in most cases. However, in some cases they are dissatisfied. Though the report intends and to find the factors of customer satisfaction which it already did, further recommendations have been given so that the customer satisfaction increases rather than decreasing day by day.

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