STRATEGIC MANAGEMENT OF HSBC BANK

Executive Summery
With the world knowing identity, Hong Kong and Shanghai Banking Corporation (HSBC)
started its operation in Bangladesh in 1996. With such a brand image, outstanding marketing
activities and modern product and service area, they also built a place in Bangladeshi market
as well. So here I have tried to focus upon the gist expansion strategy of HSBC in
Bangladesh, highlighting in Dhaka city. This is aimed to have an overview of how they are
operating and expanding their business in Bangladesh presently. Starting from the company
overview, I have put light on giving a brief about HSBC as a global bank and HSBC in
Bangladesh. Further, I have moved on to explore the Macro Economic forces of HSBC. As I
have found from the speech of HSBC persons, their Macro Economic factors. I have showed
the five forces analysis and six segment analysis of the business. Moreover, it is also very
important to have a clear and specific idea about the selected organizations current situation.
So I have also done a SWOT analysis of HSBC. And based on that, I have suggested some
strategies that they can adopt, in the SWOT matrix. The study also reflects a competitor
analysis with the main foreign competitor banks in Bangladesh. This is to understand HSBCs
position in the market as well as their strategies to face the competitive situation. Finally I
have gone through my own assessment regarding their operation. I have also given some
recommendation in that assessment that may improve the operation of HSBC in Bangladesh
in future.

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPTER 1
INTRODUCTION

HSBC Holdings place is a British multinational banking and financial services company
headquartered in London, United Kingdom. It is the world's second largest bank. It was
founded in London in 1991 by the Hongkong and Shanghai Banking Corporation to act as a
new group holding company.[ The origins of the bank lie in Hong Kong and Shanghai, where
branches were first opened in 1865. The HSBC name is derived from the initials of the
Hongkong and Shanghai Banking Corporation.[6] As such, the company refers to both the
United Kingdom and Hong Kong as its "home markets".
HSBC has around 6,600 offices in 80 countries and territories across Africa, Asia, Europe,
North America and South America, and around 60 million customers. As of 2012, it was the
world's largest bank in terms of assets and sixth-largest public company, according to a
composite measure by Forbes magazine.
HSBC is organised within four business groups: Commercial Banking; Global Banking and
Markets (investment banking); Retail Banking and Wealth Management; and Global Private
Banking.
HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock
Exchange and is a constituent of the Hang Seng Index and the FTSE 100 Index. As of 6 July
2012 it had a market capitalisation of 102.7 billion, the second-largest company listed on the
London Stock Exchange, after Royal Dutch Shell.[12] It has secondary listings on the New
York Stock Exchange, Euronext Paris and the Bermuda Stock Exchange.
In February 2015 the International Consortium of Investigative Journalists released
information about the business conduct of HSBC under the title Swiss Leaks. The ICIJ alleges
that the bank profited from doing business with tax evaders and other clients.
[13]
BBC reported that HSBC had put pressure on media not to report about the controversy,
with British Newspaper The Guardian claiming HSBC advertising had been put "on pause"
after The Guardian's coverage of the matter.[14] Peter Oborne, chief political commentator
at Daily Telegraph resigned from the paper; in an open letter he claimed the Daily Telegraph
suppressed negative stories and dropped investigations into HSBC because of the bank's
advertising

STRATEGIC MANAGEMENT OF HSBC BANK

Overview of HSBC Bank

HSBC is known as one of the largest financial and banking services industries in the global
environment. The company is headquartered in London and has an international networks
which composes of over 10, 000 offices in more than 82 states and territories within AsiaPacific Region, Europe, United States of America, Africa and Middle East. HSBC Holdings
Plc are regarded to have around 200,000 shareholders in over 100 nations as noted in listings
in countries like New York, Bermuda, Paris and Hong Kong. Because of the global network
connects by the implementation of advances technology like the internet and information
communication technology, the company has been able to provide an intensive range and
reach of financial services which includes commercial banking, investment banking and
market personal financial services, and other banking and financial products and services.
The business philosophy of HSBC gives important to values and principles in all aspects of
everyday living.

STRATEGIC MANAGEMENT OF HSBC BANK

Background History
Businesses are continuously evolving to respond in every customers needs. To be specific,
the Hong Kong Shanghai Banking Corporation (HSBC), one of the best financial institution
developed different marketing strategies to maintain competitiveness. Actually, HSBC
Holdings, a British financial holding company with origins in Hong Kong and Shanghai,
where offices were opened in 1865 under a special charter which allowed Hong Kong rather
than London as a headquarter location (Johnson 2000). Yao (1998) related that the bank
remained an eastern force until the 1950s, when overexposure to the crown colony and its
textile industry pointed to a need for geographical diversification. HSBC was established to
finance the growing trade between China and Europe, and is one of the largest banking and
financial services organizations in the world. Its international network comprises over 9,500
offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the
Middle East, and Africa (Who is HSBC? 2010).
HSBC was in intense competition all over Asia with Chase Manhattan which showed interest
in a small bank in India and Malaysia. HSBC pre-empted by purchasing the bank in 1959
(Huat 2000). In the same year another defensive acquisition became necessary, when an
investor group tried to buy the British Bank of the Middle East, strip its assets and sell the
branches to HSBC, which did the bulk of its Middle East business through the bank (Ji 2003).
A few years later a banking crisis erupted in Hong Kong. HSBC was not seriously affected
but Hang Seng Bank, the colony's second largest, was about to flounder in a run. Chase
offered help but Hang Seng preferred HSBC, because of its local roots, and sold it a majority
stake in 1965 (Jones 2001). These three deals illuminate the difference between corporate
strategy and the realities of the marketplace (King 1991).
Faure & Pui-Tak (2004) stated that HSBC occupies a unique position in the Hong Kong
banking sphere. Besides being responsible for the bulk of note-issue, HSBC has some other
attributes, which are now associated with a central bank in where it acts as a banker to the
government, although not exclusively. With this consideration, this paper will be discussing
the strategic practices of HSBC.

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPTER2
STRATEGY APPROACH AND OBJECTIVE
Participation
The right partner in delivering depth of expertise to drive market presence creating centres
of excellence.
Competitive Positioning
The right partner in providing competitive advantage through cost leadership, process
discipline, scalability & extraordinary talent.
Management Discipline
The right partner in delivering best in class, compliant and risk controlled operating
capability, continuously improves the way they work and balancing the pursuit of growth
with firm control of cost and risk making scope the right partner to HSBCs groups and its
stakeholder.
This 3 approach is critical not just in driving the success but also sustaining the business in
this rapid changing environment.

Mission/Brand Promises
Corporate Character: The HSBC corporate character defines the values and principles
inherent in all our everyday dealings.
Mission Statement:
We aspire to be one of the world's great specialist banking groups, driven by commitment to
our core philosophies and values.(Source: www.hsbc.com)
Base on Strategic Management course, a strategic intent is the clarity of the future, to give
purpose and focus from the vision and mission statement. From the brand promises it
indicates on what we want to deliver and communicate to the groups and stakeholder. Its
been transcend in the groups people brand thru its 5 core value, which is much valuable in
how the groups and the stakeholder perceived and expected.

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPER3
METHODOLOGY
Research Design:
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.
Research in a common parlance is a search for knowledge. Research is an art of scientific and
systematic investigation. Thus research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data,
making deductions and reaching conclusions. Research methodology is the arrangement of
condition for collection and analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure. Research Methodology is the conceptual
structure within which research is conducted. It constitutes the blueprint for the collection
measurement and analysis of the data.
Types of research used:
Descriptive Research:
In the study descriptive research design has been used. As descriptive research design is the
description of state of affairs, as it exists at present. In this type of research the researcher has
no control over the variables; he can only report what has happened or what is happening
Descriptive research designs are those design which are concerned with describing the
characteristics of particular individual or of the group. In descriptive and diagnostic study the
researcher must be able to define clearly what he wants to measure and must find adequate
method for measuring it.
Sources of Data:
The sources of collection and analysis to be used are those data (a) that have already been
assembled and recorded; and (b) that still requires assembling and recording. The former
kind of data is called Primary Data while the later kind of data is called Secondary
Data.

STRATEGIC MANAGEMENT OF HSBC BANK

TYPES OF DATA

PRIMARY DATA

I.

SECONDRY DATA

Primary Data:

Primary data is the information which is received by the researcher from the actual field of
research. The data in the given study are obtained by means of questionnaires. In some fields
primary data are collected through interview and observation methods. The observation
method, for collecting primary data, may be both participant and nonparticipant. Such data
are known as primary data. The primary source information is collected through Internet,
Direct observation, Questionnaires, Schedule and Interviews methods.

II.

Secondary Data:
Secondary data are the information which is obtained directly. The researcher does not obtain
them himself or directly. Such data are generally collected form published and unpublished
material. Secondary data gathered from informations collected from the individuals and
institutions through personal diaries, letters and survey documents etc. There are various
sources through which secondary data is collected such as Biographies, Diaries, Public
Records, Published Data, Journals and Magazines and Newspapers.
This research project totally focuses on the Secondary Data. The secondary data for the
given study is collected through the Reference Book mentioned along with various
websites including the official website of thefinancial services in India.
In this study data have been taken from various secondary sources like:

Internet
Books
Magazines
7

STRATEGIC MANAGEMENT OF HSBC BANK

Newspapers
Journals

CHAPTER4
STRATEGIES USED BY HSBC

In order to compete successfully and reach competitive advantage, HSBC has been able to
use different strategies. One of the strategies used by HSBC is the managing for Growth
strategy. Such strategy enables the company to grow and develop even more. The strategy has
been able to build the strengths of the company and adheres with the areas which are in need
of further enhancement. Since the main objective of the company is to be the leader in
financial services sectors, the company uses strategy that strives to protect and sustain a
leading position among their target market.

HSBC has also been able to use a strategic human resource management which provides
intensive and comprehensive values among their employees. For the company, an
organisation that has employees who are productive and highly motivated will help them
reach their organisational goal. In addition, the company also applies customer relationship
management approach so as to maintain good relation among their target all over the world.
The objective of using CRM is to make sure that the company is always adhering to the needs
and demands of the customers. Through the use of the information technology, specifically
the internet, the company has been able to reach different customers from al over the globe
and provide them quality and satisfactory products and services.

The company also uses strategic management to ensure that all their business practice will
enable them to have a competitive advantage in both local and international market. HSBC is
aware that having good reputation in the marketplace helps the company in becoming more
appealing in their target market. With this, part of their strategy is to implement a corporate
social responsibility which will is recognises its accountabilities within the society, The
company sees to it that they are always aspired with the highest principles of conducts.

The strategy of HSBC gives emphasis on four customer groups. These include, Private
Banking, Personal Financial Services, Commercial Banking, and Corporate, Investment
Banking and Markets. In order to make sure that the specific needs and demands of these
8

STRATEGIC MANAGEMENT OF HSBC BANK

customers and clients, the company also uses different strategy for each customer groups. The
management of HSBC perceived that by effectively managing its internal and external reports
for each customer segments, customer satisfaction will be achieved. Branding is also
considered as one of the most important strategy utilised by HSBC. With its brand reaching
customers all over the globe, the company has been able to maintain it competitive and
leadership position in the global business environment.

HSBCS PEST ANALYSIS

Political Aspects:
HSBC Banking has been protected by the regulations and policies formulated by different
government in the countries where they are operating. The company has been able to adhere
to the policies given by each government to make sure that the company will be able to
conduct business operations successfully and effectively. Furthermore, the company also
formulates their own protection strategies against any governmental restrictions and
limitations.
Economic Aspect
Being the world's largest and competitive industry in terms of banking and finance, HSBC, is
said to have a stable and successful economic stability. In spite of many dangers that they
encounter in different parts of the world, the management of HSBC sees to it that they would
be able to surpass such struggles and strives to have a better economic condition.
Social Aspect
HSBC is being affected by the situation of the society in which they are operating. Along
with this, HSBC tries harder to make sure that each society is given equal chances to take
advantage of the resources given by the organization. The company adheres to having good
reputation and relations in the society that they belong.
Technological Aspect
The emergence of information technology and internet affects how HSBC has been operating
in the past years. The company adopts different IT/IS systems and used internet to reach their
customer all over the world and to know the latest trends in the global business. Aside from
these, the company also uses facilities which helps them improved their productions and
operations.

STRATEGIC MANAGEMENT OF HSBC BANK

INDUSTRY COMPETITORS.
In the banking industry in which HSBC belongs, regulatory and technological
transformations are the major catalysts, making entrenched competitive structures obsolete
and mandating the development of new products, new processes, new strategies, and new
public policies toward the business under examination (Bond & Green, 2003). Financial
centres, in dynamic competition with each other, have undergone further regulatory change in
their efforts to capture a greater share of international trade in financial services, even as
common efforts at the regional and global level have tried to support safety and soundness
and a reasonably level competitive playing field. Banks and securities firms have had to
devise and implement new strategies--sometimes leading events or (perhaps more often)
responding to them--and the financial services industry has seen a wave of mergers,
acquisitions, and strategic alliances in virtually all parts of the world. There are numerous
major banking players in the industry, included in the list is HSBC, who strive for market
leadership in all their business aspects. As such, the level of industry competition is very stiff
and very aggressive.

Potential Entrants
Natural barriers to entry in the banking industry contain the need for capital investment,
human resources, and technology and the significance of economies of scale. It also
comprises the function of contracting costs avoided by a close relationship between the
vendor and its client, which in turn is related to the avoidance of opportunistic behavior by
either party (Bond & Green, 2003). The competitive structure of the industry therefore
depends on the degree of potential competition. This represents an application of the
contestable markets concept, which suggests that the existence of potential entrants causes
existing players to act as if those entrants were already active in the market. Consequently,
pricing margins, product quality, and the degree of innovation in this industry exhibits
characteristics of intense competition even though the degree of market concentration is in
fact quite high.

Buyers:
Banks have a extensive history--a history loaded in product mixture, international range, and,
above all, incessant transformations and revision. These competitive changes have forced
alterations, and in general have improved the level and competence of services banks offer to
clientele, thereby escalating transactional degree (Bond & Green, 2003). Coupled with these,
the customers have become informed and savvy users of financial services that banks offer.
10

STRATEGIC MANAGEMENT OF HSBC BANK

They have required that service providers meet their very specific individual needs, therefore
showing that clients to this industry have shaped what it is right now. This means, on an
overall note, that buyers have a high influence on the workings of the global banking
industry, as they have the ability to affect it.

Suppliers:
The suppliers to this industry are mostly the providers of technology that banking firms use
in the manner of their businesses (Bond & Green, 2003). There is an massive variety of new
hard and soft technologies at work within the banking industry (Bond & Green, 2003).
Hard technologies consist of advances in telecommunications, computers, analytics, software
tools, and video communications, which are enabling participants to have better information
at lower cost; to integrate this information with thinking, communication, and analysis; and,
finally, to use the resulting knowledge along with other technologies to distribute services to
clients more efficiently, effectively, and economically. Soft technologies, or financial
innovation - things like, say, the use of derivative instruments such as interest rate and
currency swaps - often use these hard technologies to rethink the delivery of services. Out of
these hard and soft technologies have come the securitization and globalization movements
so often talked about in the press. From the above enumeration, it could be said that suppliers
significantly affect the banking industry through their tools of trade.

Substitutes:
There is a high level of substitutes for the banking industry, evidenced by the numerous
numbers of major players in the market (Bond & Green, 2003). The cost to transfer to another
banking firm is also relatively low, so the substitution rate is pretty high.

11

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPTER5

THE KEY SUCCESS FACTORS FOR THE CHANGE TO STRATEGY

Internal Condition
The most important will be the human factor as it is the heart thats drive the company. Having the
right culture and people to create conducive environment, and be lead by strong visionary leaders and
champion management that capable to manage its people and process.

External Condition
The external condition will be on the PEST analysis that been done. With strong and stable external
environment will contribute for the need to change strategic option. Furthermore, the full support
from our Group and re-alignment with our other Hub is important without it its impossible to achieve
the vision and mission.

Feasibility of Criteria to Evaluate Options

a) Financial
From the Financial aspect all strategic option will involving financial investment that in term
will bring cost benefit and growth. Especially in its market development by acquisition
potential bank BPO that is more desirable and can bring in capital and value to HSBC.
b) Organizational
In order to cope with the change the organization structure also need to realign and change.
Especially in its organic growth, where having the right type of people and culture is the key
to success. It structure management is important to execute the strategic option.
c) Market
External market trend is more into technology with faster and reliable system. With high
speed connectivity the market had been more competing and broaden it market widely.
d) Risk
12

STRATEGIC MANAGEMENT OF HSBC BANK

Each strategic option has very own risk but with stern control and better risk management can
mitigate any potential risk and minimize the impact.
e) Potential Barriers to Be Overcome
Change management will be the potential barrier since HSBC is still in it comfort zone. By
doing an organisational development and learning it can identify the risk and overcome the
barrier of change.
f) Recommendations
HSBC is passionate with customer importance and makes every effort to be an "all-weather
umbrella" to its clients, by considering diverse strategies for varying situations. It had to
branch out in order to equate revenue and expenditure, reduce risk and stay profitable, with
an equal importance in its ability to anticipate change. The investment banking business of
HSBC has begun a strategy of major expansion and growth with one clear objective, which is
to establish themselves as one of the worlds top three investment banks, and these strategies
are based around a philosophy of organic growth and a transition towards becoming a clientoriented investment bank.
With this detail, the business must go on to find innovative software programs and
relate effectively to other companies that produce these software programs to become
updated with the latest improvement in the World Wide Web. The business must
economically and efficiently generate a good connection with their clientele and
shareholders, to incessantly operate. HSBC must constantly conceptualize and execute good
projects to be able to set trends in the banking industry. Apart from developing business
strategies, the business have to focus on building employee and customer associations, in
harmony to strategic management concepts, for it is necessary to establish and focus on the
needs of the clientele, as clientele are the motive for being alive in the business.

13

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPTER 6
Assessment of the Usefulness of Strategic Management Models
According to Andrews, (1980) in his book entitled The Concept of Corporate Strategy,
Corporate strategy is the pattern of decisions in a company that determines and reveals its
objectives, purposes, or goals, produces the principal policies and plans for achieving those
goals, and defines the range of business the company is to pursue, the kind of economic and
human organization it is or intends to be, and the nature of economic and non-economic
contribution it intends to make to its shareholders, employees, customers, and communities.
With this, the models help in identifying the complex web of thought, ideas, goals, and
expectations that provides general guidance for specific actions in pursuit of a particular ends.
Strategy also is at once the course chart and the journey imagine, and the voyage that has
purpose, and an end to be kept in view. Actually, Bowman (1994) quote on Strategic
Management:
Strategic management is the process of making and implementing strategic decisions. (It) is
about the process of strategic change
With respect to the usefulness of the strategic models, it enables this paper consider the
process that involves planning and operationalizing the strategy of an organization. The
involvement of teams in the strategic management process greatly facilitates its successful
implementation. Moreover, the nature of strategic management for an organization is to be
successful, and it is very important to chalk out a sound strategic system. Strategic
management helps in the formulation of effective organizational goals. The effective
formulation and implementation of strategic management techniques can lead an organization
to the path of success.
From the discussion of the strategic practices of HSBC which are outlined by different
strategic models such as PEST and Porters Five Forces Model, it is evidently to say that
technology can actually contribute in an industry or it is possibly the cause of burden. The
strategic practice of HSBC shows effectiveness but still it has drawbacks to consider. The
strategic practices of HSBC g shows can provide value to customers. This can be done by
offering a service or product line that is attractive to potential customers. However, in the
14

STRATEGIC MANAGEMENT OF HSBC BANK

case of HSBC, it is not advisable to rely so much in technology when giving services to the
customers in order to maintain a good banking experience.
In the end, businesses engaged so much in technology has its share of good and bad impacts,
socially, economically and even environmentally. In addition, it has to be noted that banking
is not one industry but many. Hence, the achievement of sustainable special intention
business or its continual development for the collective benefits of the world, may therefore
depend on a change in strategy and planning of the industry in order to identify common
ground more easily, and to exploit further returns without sacrificing the one that lays the
golden egg, in manner of speaking. All said, future research may have to focus on
participatory planning involving business, governments, host communities and campaigners
with a greater view to common ground.

Competitive advantage of HSBC

Briefly, competitive advantage is a position a business occupies against its competitors.
HSBC follows some strategies for creating a competitive advantage. Likewise

Differentiation and sustaining the brand image:

HSBC has already created a brand image in the customers mind and that makes them
different among others. It is a renowned bank not only in Bangladesh, but also throughout the
world. So customers have a trust on this name and they feel secure to bank with HSBC.
Retaining this brand position is one of the key policies of HSBC to differentiate themselves
among others.

Quality leadership:
Quality advantage occurs with HSBC when it delivers the same services as its competitors
but at a better quality. It has an approach that focuses on providing the same quality service to
all of their customers. So even they have specific number of branches compare to the main
competitors, but they believe to ensure the quality services over there; rather than going with
lots of branches.

15

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPTER7
Macro Environment:
The major external and uncontrollable factors that influence an organization's decision
making, and affect its performance and strategies. These factors include the Global;
economic; demographics; legal/ political, and socio cultural; technological changes; and
natural forces. This also includes the major internal and controllable factors that influence
organizations decision making. These factors include the Industry environment &
Competitors environments. Specific examples of macro environment influences include
competitors, changes in interest rates, and changes in cultural tastes, disastrous weather, or
government regulations.
There are two types of Macro Environment.:

External Environment

Internal Environment.
External environment:
A companys external environment includes:

a) All relevant factors & influences

b) Outside the companys boundaries;
By relevant, means important enough to have a bearing on the decisions the company
ultimately makes about its direction, objectives, strategy, & business model. There are some
important segments which is called as six segment analysis of External Environment. They
are as follows:
a) Global Segment:
1. Political events
16

STRATEGIC MANAGEMENT OF HSBC BANK

2. Global markets
3. Overseas financial markets
b) Demographic:
1. Age of population
2. Ethnic mix
3. Geographic dispersion
c) Economic:
1. Inflation rates
2. Interest rates
3. Currency exchange rates
4. Disposable income & personal savings rates.
c) Political/ Legal forces:
1. Taxation law
2. Deregulations
3. Trade practices
4. Employment
5. Government policy
e) Technological:
1. Workforce diversity
2. Time poor professionals
3. High disposable incomes

17

STRATEGIC MANAGEMENT OF HSBC BANK

CHAPTER8
SWOT Analysis
Competitors Analysis (SWOT Analysis)
Strengths
The strengths of HSBC rival companies include the ability to provide the needs and demands
of different customers all over the world. Through the use of information technology,
competitors of HSBC may outgrow the company by using all its resources to develop new
products and services that will be appealing for the customers. Moreover, the alliances of
larger organization may also be considered as one of the strengths of HSBCs competitors.
The competitors of HSBC may also have strength in terms of having powerful brand image
as well as strong market leadership.
Weaknesses
18

STRATEGIC MANAGEMENT OF HSBC BANK

One of the weaknesses of the rival companies of HSBC is its lack of resources to sustain their
competitive advantage. In addition, rival companies of HSBC may also lack the ability to
reach different customers because of distance barrier. Poor management systems may also be
considered as one of the weaknesses of competitors of HSBC. The rival companies of HSBC
may also have weaknesses in terms of having weak marketing approaches and brand image.
Some rival companies, like those small enterprises may have weaknesses in gaining customer
loyalty.

Opportunities
The opportunities of the rival companies of HSBC may include the following.

Major productive and favourable market conditions.

Alteration in line with regulatory or competitive market environment

Changes and advancement of technological aspects and enhances buyer/supplier relationship

Threats

Major adverse and unfavourable conditions in an industrys market settings representing

obstacles to the companys desire competition position and advantage.

The threats of new entrants or new industries which will compete effectively in the market.

The slow growth of the market in which the industry belongs

Rapid technological changes and the existence of new revised policies and government
regulations.

Recommendation

HSBC is already a brand name which is recognized all over the country. Yet I have come up
with my own assessment and some recommendation for HSBC, on the areas that I have
covered so far. Like- HSBC has very few numbers of branches in Bangladesh.

19

STRATEGIC MANAGEMENT OF HSBC BANK

They should expand their branches more in Dhaka as well as in the whole country. This will
not only increase their business area but also give chance to serve more customers.

They are more concerned with the global and corporate customer group.

In addition to that, they can also give some special service and facilities to other customer
groups as well.

HSBC has always stepped ahead in terms of bringing new technological advantage in
products and services.

They also put focus on providing and ensuring quality service to all of their customers.

Even though Bangladesh Bank has many rules and regulation for the banks operating in
Bangladesh, but then also competitors are increasing day by day in this sector.

So considering this factor they should have proper strategic plans, both short term and long
term, so that they can face any type of challenge and their business can have smooth running.

20

STRATEGIC MANAGEMENT OF HSBC BANK

Conclusion
The marketing environment is without a doubt very complicated system. Companies need to
be more considerate of many factors that will have to be integrated based on the trends in the
market place. In general, a unique and distinctive strategy is highly adopted by most
industries in order to have a competitive advantage in the business environment. There are
many ways on how management can construct a certain strategy. This however, needs to be
constantly evaluated and updated based on the constant changing market trends.

Being the leader of the banking and finance industries, HSBC is said to use different
strategies that will meet market needs and demands. Analysis shows that HSBC has outgrown
its competitors because of the strategies that they used which adhere to the current situation
of the market environment. All in all, it is said that if the company has been able to choose
the most appropriate strategy, there is a greater possibility of becoming a world leader in any
industry,

21