Introduction

HSBC is a global financial services company headquartered in Canary Wharf, London, United Kingdom. As of 2010, it is the world's sixthlargest banking and financial services group and the world's eighthlargest company according to a composite measure by Forbes magazine. It has around 8,000 offices in 91 countries and territories across Africa, Asia, Europe, North America and South America and around 100 million customers. As of 30 June 2010 it had total assets of $2.418 trillion, of which roughly half were in Europe, a quarter in the Americas and a quarter in Asia. HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company and to enable the acquisition of UK-based Midland Bank. The origins of the bank lie in Hong Kong and Shanghai, where branches were first opened in 1865.Today HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China, where it is now the largest international bank, has returned it to that part of its roots. Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It has secondary listings on the Hong Kong Stock Exchange (where it is a constituent of the Hang Seng Index), New York Stock Exchange, Euronext Paris and Bermuda Stock Exchange. As of August 2010, it was the largest company listed on the London Stock Exchange, with a market capitalisation of £115.8 billion.

The following diagram shows how a SWOT analysis fits into an environmental scan: SWOT Analysis Framework Environmental Scan / Internal Analysis /\ Strengths Weaknesses | SWOT Matrix \ External Analysis /\ Opportunities Threats Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. As such. it is instrumental in strategy formulation and selection. Examples of such strengths include: • • patents strong brand names .What is swot analysis? The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates.

Take the case in which a firm has a large amount of manufacturing capacity. a weakness may be the flip side of a strength. it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment. Some examples of such opportunities include: . While this capacity may be considered a strength that competitors do not share. Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. For example. each of the following may be considered weaknesses: • • • • • • lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels In some cases.• • • • good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks Weaknesses The absence of certain strengths may be viewed as a weakness.

• • • • an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers Threats Changes in the external environmental also may present threats to the firm. for the cosmopolitan client. Some examples of such threats include: • • • • shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers Swot analysis of HSBC Strengths-*International Finance. it is well-qualified to advise other companies on aspects of international business. HSBC often . With offices around the world. Since HSBC is a multinational company itself.

because it gains new clients and new global opportunities with each passing day. HSBC benefits for being both an old Chinese company and trusted by the Chinese people. with profits of £11. *Record profits. HSBC is primarily listed on the London and Hong Kong stock exchanges.5bn ($20. Since China is the place to be nowadays for businesses and banks. too. Last year. which saves the company much grief in complying with new American Sarbanes-Oxley laws.cannot be beaten in this area. HSBC knows how to succeed in M&A and organic and effective growth-. this is quite a boon to HSBC. HSBC is the "Hong Kong Shanghai Banking Corporation" and it has 140 years of experience in China. it does. Many companies have chosen to list on foreign exchanges other than America because of the expensive new regulations. In a world that is increasingly going China's way. . The best news for HSBC is that as other companies grow in China.it was mostly an Asian bank until it took over a UK bank in 1992 and now has become the world's second-largest bank by profit. *China. HSBC experienced the most profits ever for a UK high street bank. *Listed in London.97bn) for the whole year. HSBC has the largest network of any foreign bank in China and deeply understands the Chinese market and customer.

In 1998. As is usually the case. but not as well in revenues. the re-branding was an overdue move that should have occurred before 1998. carried the HSBC logo. *Record profits ending. While it is certainly a global company. HSBC came late to the game on deciding to perform an integrated marketing strategy and capitalize on its global brand. It announced that each year. HSBC announced in December 2006 that it was doing just as well as last year. it set them up under different names-. but the previous lack of branding and the name changes may have hurt HSBC in brand recognition. Because it had set up so many different banks in different countries at different times over a hundred year period. HSBC Banco Roberts. they were all branded together. its bad debt rises. Customers may have thought that HSBC was taking over their local bank and not realized that HSBC had already been serving them for decades. Not even all of these banks. record profits can only last so long. British Bank of the Middle East. prior to 1998.Weaknesses- *Branding.Hong Kong Bank of Canada. . In any case. Other banks' shares fell as well on the news.

This is where it is growing the most. and therefore growing consumer spenders. HSBC is the largest international bank in the Middle East. Brazilians and Indians are beginning to emerge as growing consumers. However. Some denizens of these countries previously did not even own a bank account.Opportunities-*The Middle East. In addition to the growing Chinese middle class. In places like Argentina and Turkey. and the company has taken advantage of Iraq's new democracy by creating a presence in the country. HSBC experienced pre-tax profits of 50% last year. Threats-*Downturn in American spending. but companies like HSBC are poised to move in and take advantage of the growing middle class in these areas. *Emerging economies. HSBC has run its regional business locally and been rewarded for its efforts with numerous awards and honors for the Middle East market. By investing in these countries. . HSBC is a trusted name there. HSBC can offset problems it may have as spending in the US and UK declines. Other banks are running scared of this region.

64bn (£6bn) for the first six months of the year. striking workers stood outside. taking over HSBC is a cracker's dream. *Employees striking. even one virus could cripple HSBC. at the same time reassuring them that online . Last year. HSBC pretax profits rose 5% to $10. HSBC has to remain on the front lines of security and protect its customers.As interest rates rise and the housing boom ends. Strikes such as this. HSBC Group's CEO announced that HSBC received tens of thousands of email viruses a day and must spend great amounts of money to prevent these from causing systemwide damage. At its annual meeting. As most banking is done on computers. With a trillion dollars in managed assets. British employees held a strike involving 1. *Identity theft. *Email viruses.500 workers at HSBC branches in London. On their worst day in 2004. Americans are predicted to rely less on consumer credit and more on their saving skills to get by.000 attacks. are bad for image reasons and HSBC needs to take action to ensure that its workers are happy just as its customers are. and HSBC will certainly be affected. especially in union-conscious Europe. the bank received 100. Last year. handing out bags of nuts and saying that they are paid "peanuts" while HSBC experiences record profits. largely on the rise in consumer finance for growing consumer spending. The drop in American spending will be bad for the global economy as a whole. In 2005.

HSBC was accused. Conclusion / My view Any company must seek to understand the nature of its competitive environment if it is to be successful in achieving its objectives and in establishing appropriate strategies.quickmba. and particularly appreciates which one is the most important. Consequently. the need to monitor and stay aware is continuous. despite its claimed airtight security. If a company fully understands the nature of the market forces.html http://www. The situation is fluid. it will be in a stronger position to defend itself against any threats and to influence the forces with its strategy.com/strategy/swot/ . and the nature and relative power of the forces will change. Reference http://en. of having left its online customers open to a security glitch for two years without fixing. In August 2006. They should take care of their weakness and threats and use important steps to get far away from it.org/wiki/HSBC http://answers.banking is safe.com/answers/threadview/id/7826 67.google.wikipedia. Researchers at Cambridge University claimed that any HSBC account could be broken into within nine attempts. HSBC should use only its brand name everywhere in the world from which it is popular.

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