Monday, May 13, 2019
Analysis on HSBC's Reorienting Strategy from the West to East Essay
Analysis on HSBCs Reorienting Strategy from the West to East - Essay Example11. Recommendations for HSBC to Help Further 12. Conclusion HSBC Banks Corporate and Global strategy Analysis on HSBCs Reorienting strategy from the West to East Executive thickset HSBC is shifting its focus towards the Eastern countries in a much faster pace than expected. Most of the mainstay activities of the bank are now controlled by their office in Hong Kong. Though their London office serves as a main branch, still it is reduced to the position of a branch instead of being headman quarters. The promising economy of the east countries lures several institutions like HSBC to invest in them. This piece explores the HSBCs everywhere each corporate strategy, its scope in the third world and the various challenges it faces in the eastern world. The paper puts forward a question whether it is worth taking all these risks as the eastern markets are as volatile as inviting. The study refers to a survey ta ken in Middle East, analyzes the internal and orthogonal environment of the eastern markets and concludes it would be mutually beneficial for HSBC to reconsider its decision. It recommends investing the same money and driveway in the US and European markets than the eastern markets. Introduction HSBC has branches in over 86 countries, with more than 9500 branches all over the world. The Hong Kong Shanghai Banking corporation has the reputation of being known as the The Worlds topical anesthetic Bank. ... crisis of the 2008- 2009 and the European credit crunch, several financial institutions including HSBC are shifting their focus towards the emerging eastern markets. These institutions which were the backbone of the industrial development in the western countries are no longer ready to add massive amount to the westerners. HSBCs move targeting the eastern market creates an image that west is winding up quickly making way for eastern countries to gain momentum in the financial f ield. Economists all over the world pose two questions to HSBC Is the eastern economic growth a mere bubble or a really sustainable option worth enough to be investing billions of money on it? Do the BRIC and the CIVETS countries have enough disposable income, steady political structure and rich people to piddle away HSBCs move profitable? Shouldnt companies like HSBC which have earned massive profits from the western market help the western economy by slashing interests in its time of crisis? Is it just on their part to invest all they have gained in the west, elsewhere? The paper explores HSBCs corporate and worldwide strategy in a detailed way to find the real answers for these questions. The first question is explored by means of various web references predicting the massive growth of the eastern economy. The second question analyzes the vital mathematical function institutions like HSBC can play in improving the European credit crunch and in improving the western economy. C orporate Strategy of HSBC Bank The corporate and global strategy of HSBC has always been profit oriented. In todays world, you cant afford to wait for business. You have to go where the business is said Michael Geoghegan, the CEO of HSBC bank. The banks corporate strategy is found completely upon this principle. HSBC has always
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