SWOT Analysis of HSBC Bank

SWOT Analysis of HSBC Bank Task 1 HSBC is known as one of the largest banking and financial services organization in the world. . It has established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. In 1991, HSBC holdings were incorporated in England, with its head office based in London. In 1999, the company established its international brand name, which ensured that the Groups corporate symbol became a familiar sight all across the world. HSBC differentiates its brand name from those of its competitors by describing the unique characteristics which distinguish HSBC, namely being, The worlds local bank. As at 31st December 2004, its total asset was valued at 660 billion. It has over 9,500 offices worldwide. It employs over 253, 000 people, across different countries and territories. Its shares are held by around 200,000 people in some 100 countries and territories. The companys shares are also traded on most of the worlds renowned stock exchanges, namely, London, Paris, New Yo rk, and Bermuda stock exchanges respectively. The HSBC group provides a comprehensive range of financial services namely: Personal Financial Services: It has over 100 million personal consumers worldwide (including Consumer Finance customers). It provides a full range of personal finance services, including current and savings accounts, mortgages, insurance, loans, credit cards, pensions, and investment services. It is one of the worlds top ten issuers of credit cards. Consumer Finance: The Companys Finance Corporations consumer finance business ensures point of sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people. In 2004, it completed the integration of its former household businesses. Commercial Banking: HSBC is a leading provider of financial services to small, medium-sized and middle market enterprises. The group has over two million such customers, including sole proprietors, partnerships, clubs, and associations, incorporated businesses and publicly quoted companies. In the UK, 209 Commercial Centre were launched to provide improved relationship management for higher value small-medium-sized enterprise customers, while in Hong Kong, Business Banking Centres, were expanded to provide a one-stop service. Corporate Investment Banking and Markets: Tailored financial services are provided to corporate and financial clients. Business lines include Global Markets, Corporate and Institutional Banking, Global Transaction Banking, and Global Investment Banking. Global Markets includes foreign exchange, fixed income, derivatives, equities, metals trade, and other trading businesses. Corporate and Institutional Banking covers relationship management and lending activities. Global Transaction Banking includes payment and cash management, trade services, supply chain, securities services, and wholesale banknotes businesses. Global Investment Banking involves investment banking advisory, and investment banking financing activities. Private Banking: HSBC is one of the worlds top private banking businesses, providing financial services to high net worth individual and families in 70 different locations. Task 2 While a business plan describes what your business is and intends to be, a marketing plan focuses onchange.A marketing plan is essential to every business because itdescribes how you plan to attract and retain customers. SWOT Analysis (S)trengths: HSBC group offers a comprehensive range of financial services in Bangladesh. Personal Financial Services:It has over 100 million personal consumers worldwide (including Consumer Finance customers). It provides a full range of personal finance services, including current and savings accounts, mortgages, insurance, loans, credit cards, pensions, and investment services. It is one of the worlds top ten issuers of credit cards. Commercial Banking: HSBC is a leading provider of financial services to small, medium-sized and middle market enterprises. The group has over two million such customers, including sole proprietors, partnerships, clubs, and associations, incorporated businesses and publicly quoted companies. In the UK, 209 Commercial Centre were launched to provide improved relationship management for higher value small-medium-sized enterprise customers, while in Hong Kong, Business Banking Centres, were expanded to provide a one-stop service. Corporate Investment Banking and Markets: Tailored financial services are provided to corporate and financial clients. Business lines include Global Markets, Corporate and Institutional Banking, Global Transaction Banking, and Global Investment Banking. Global Markets includes foreign exchange, fixed income, derivatives, equities, metals trade, and other trading businesses. Corporate and Institutional Banking covers relationship management and lending activities. Global Transaction Banking includes payment and cash management, trade services, supply chain, securities services, and wholesale banknotes businesses. Global Investment Banking involves investment banking advisory, and investment banking financing activities. Private Banking: HSBC is one of the worlds top private banking businesses, providing financial services to high net worth individual and families in 70 different locations. (W)eaknesses: HSBC in Bangladesh has been affected by the world-wide financial uncertainty and instability. Equally customers both private and business of all financial institutions now have serious concerns and doubts about the security of their own monies and investments. Trust in HSBC and its management is at an all time low and it needs to address this, in order to alleviate customer concerns, build trust again and re-establish banks own brands and market positions. (O)pportunities: HSBC could build renewed customer confidence and this will rebuild and retain their current customers trust. It will also gain customers from other banks and financial organizations who do not target and address these customer concerns. Objectives The aim of HSBC is to rebuild and retain customer trust and re-establish its brand and market position for the future. Marketing Strategy: Towards the end of 2003, HSBC launched Managing for Growth, a strategic plan that provides HSBC with a blueprint for growth and development during the next five years. The strategy is evolutionary, not revolutionary. It builds on HSBCs strengths and it addresses the areas where further improvement is considered both desirable and attainable. HSBC concentrates on growing earnings over the long term at a rate which will place it favourably when compared with its peer group. Also it focuses on investing in its delivery platforms, its technology, its people and its brand to support the future value of HSBC as reflected in its comparative stock market rating and total shareholder return (TSR). HSBC remains committed to benchmarking its performance by comparison with a peer group. Budget: HSBC has to ensure that it has sufficient finance available to rebuild and retain customer trust and re-establish its brand and market position for the future. Task 3 Based on the marketing plan, we can communicate to our target audience in Bangladesh the rebuilding and retaining of customer trust and re-establishment of the HSBC brand and its market position for the future in many ways. We can do advertisement in many ways. Those ways are as follows: Advertisement: We can include the advertisement on the newspaper as the advertisement is relatively long lasting. It is also cheaper that way. We can distribute leaflets to peoples homes through the post. Leaflets are long lasting and it can be distributed to specific customers. We can use the internet as a medium for advertising. We can have our own website, on which we can advertise and tell potential customers about us and our offer. Promotion: We can give discount to the customers. We can reduce the interest rates. We can distribute free samples either nationally or in a local area. In this way prospective customers may be interested. We can produce brochures and catalogues describing our business. This will give the impression of our quality organization. Direct Response Programs: We can introduce the option of credit card that is customers can do shopping by the use of their credit card. We can allow people their bills in our organization that is HSBC. Sponsorship: We can sponsor a cricket tournament like the World Cup in Bangladesh. We can sponsor the cultural events like Pohela Baishakh. We can sponsor the events like Book Fair. Task 4 HSBC is known as one of the largest banking and financial services organization in the world. . It has established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. In 1991, HSBC holdings were incorporated in England, with its head office based in London. In 1999, the company established its international brand name, which ensured that the Groups corporate symbol became a familiar sight all across the world. HSBC differentiates its brand name from those of its competitors by describing the unique characteristics which distinguish HSBC, namely being, The worlds local bank. As at 31st December 2004, its total asset was valued at ?660 billion. It has over 9,500 offices worldwide. It employs over 253, 000 people, across different countries and territories. Its shares are held by around 200,000 people in some 100 countries and territories. The companys shares are also traded on most of the worlds renowned stock exchanges, namely, London, Paris, New Y ork, and Bermuda stock exchanges respectively. The HSBC group provides a comprehensive range of financial services namely: Personal Financial Services: It has over 100 million personal consumers worldwide (including Consumer Finance customers). It provides a full range of personal finance services, including current and savings accounts, mortgages, insurance, loans, credit cards, pensions, and investment services. It is one of the worlds top ten issuers of credit cards. Consumer Finance: The Companys Finance Corporations consumer finance business ensures point of sale credit to consumers, and lends money and provides related services to meet the financial needs of everyday people. In 2004, it completed the integration of its former household businesses. Commercial Banking: HSBC is a leading provider of financial services to small, medium-sized and middle market enterprises. The group has over two million such customers, including sole proprietors, partnerships, clubs, and associations, incorporated businesses and publicly quoted companies. In the UK, 209 Commercial Centre were launched to provide improved relationship management for higher value small-medium-sized enterprise customers, while in Hong Kong, Business Banking Centres, were expanded to provide a one-stop service. Corporate Investment Banking and Markets: Tailored financial services are provided to corporate and financial clients. Business lines include Global Markets, Corporate and Institutional Banking, Global Transaction Banking, and Global Investment Banking. Global Markets includes foreign exchange, fixed income, derivatives, equities, metals trade, and other trading businesses. Corporate and Institutional Banking covers relationship management and lending activities. Global Transaction Banking includes payment and cash management, trade services, supply chain, securities services, and wholesale banknotes businesses. Global Investment Banking involves investment banking advisory, and investment banking financing activities. Private Banking: HSBC is one of the worlds top private banking businesses, providing financial services to high net worth individual and families in 70 different locations. While a business plan describes what your business is and intends to be, a marketing plan focuses onchange.A marketing plan is essential to every business because itdescribes how you plan to attract and retain customers. SWOT Analysis (S)trengths: HSBC group offers a comprehensive range of financial services in Bangladesh. Personal Financial Services: It has over 100 million personal consumers worldwide (including Consumer Finance customers). It provides a full range of personal finance services, including current and savings accounts, mortgages, insurance, loans, credit cards, pensions, and investment services. It is one of the worlds top ten issuers of credit cards. Commercial Banking: HSBC is a leading provider of financial services to small, medium-sized and middle market enterprises. The group has over two million such customers, including sole proprietors, partnerships, clubs, and associations, incorporated businesses and publicly quoted companies. In the UK, 209 Commercial Centre were launched to provide improved relationship management for higher value small-medium-sized enterprise customers, while in Hong Kong, Business Banking Centres, were expanded to provide a one-stop service. Corporate Investment Banking and Markets: Tailored financial services are provided to corporate and financial clients. Business lines include Global Markets, Corporate and Institutional Banking, Global Transaction Banking, and Global Investment Banking. Global Markets includes foreign exchange, fixed income, derivatives, equities, metals trade, and other trading businesses. Corporate and Institutional Banking covers relationship management and lending activities. Global Transaction Banking includes payment and cash management, trade services, supply chain, securities services, and wholesale banknotes businesses. Global Investment Banking involves investment banking advisory, and investment banking financing activities. Private Banking: HSBC is one of the worlds top private banking businesses, providing financial services to high net worth individual and families in 70 different locations. (W)eaknesses: HSBC in Bangladesh has been affected by the world-wide financial uncertainty and instability. Equally customers both private and business of all financial institutions now have serious concerns and doubts about the security of their own monies and investments. Trust in HSBC and its management is at an all time low and it needs to address this, in order to alleviate customer concerns, build trust again and re-establish banks own brands and market positions. (O)pportunities: HSBC could build renewed customer confidence and this will rebuild and retain their current customers trust. It will also gain customers from other banks and financial organizations who do not target and address these customer concerns. Objectives The aim of HSBC is to rebuild and retain customer trust and re-establish its brand and market position for the future. Marketing Strategy: Towards the end of 2003, HSBC launched Managing for Growth, a strategic plan that provides HSBC with a blueprint for growth and development during the next five years. The strategy is evolutionary, not revolutionary. It builds on HSBCs strengths and it addresses the areas where further improvement is considered both desirable and attainable. HSBC concentrates on growing earnings over the long term at a rate which will place it favourably when compared with its peer group. Also it focuses on investing in its delivery platforms, its technology, its people and its brand to support the future value of HSBC as reflected in its comparative stock market rating and total shareholder return (TSR). HSBC remains committed to benchmarking its performance by comparison with a peer group. Budget: HSBC has to ensure that it has sufficient finance available to rebuild and retain customer trust and re-establish its brand and market position for the future. Based on the marketing plan, we can communicate to our target audience in Bangladesh the rebuilding and retaining of customer trust and re-establishment of the HSBC brand and its market position for the future in many ways. We can do advertisement in many ways. Those ways are as follows: Promotion We can include the advertisement on the newspaper as the advertisement is relatively long lasting. It is also cheaper that way. We can distribute leaflets to peoples homes through the post. Leaflets are long lasting and it can be distributed to specific customers. We can use the internet as a medium for advertising. We can have our own website, on which we can advertise and tell potential customers about us and our offer. Advertisement: We can include the advertisement on the newspaper as the advertisement is relatively long lasting. It is also cheaper that way. We can distribute leaflets to peoples homes through the post. Leaflets are long lasting and it can be distributed to specific customers. We can use the internet as a medium for advertising. We can have our own website, on which we can advertise and tell potential customers about us and our offer. Promotion: We can give discount to the customers. We can reduce the interest rates. We can distribute free samples either nationally or in a local area. In this way prospective customers may be interested. We can produce brochures and catalogues describing our business. This will give the impression of our quality organization. Direct Response Programs: We can introduce the option of credit card that is customers can do shopping by the use of their credit card. We can allow people their bills in our organization that is HSBC. Sponsorship: We can sponsor a cricket tournament like the World Cup in Bangladesh. We can sponsor the cultural events like Pohela Baishakh. We can sponsor the events like Book Fair. References Website http//www.google.com/ Book: Marketing