Contents

Task 1.............................................................................................................................................. 3

Executive Summary......................................................................................................................... 3

Task 2.............................................................................................................................................. 3

2.1.................................................................................................................................................... 3

Brief about the company.............................................................................................................. 3

Mission statement of HSBC..........................................................................................................4

Vision statement of HSBC............................................................................................................ 4

2.2.................................................................................................................................................... 4

Political factors................................................................................................................................. 4

Corruption level............................................................................................................................ 4

Freedom of press......................................................................................................................... 4

Crime rate.................................................................................................................................... 5

Inflation rate................................................................................................................................. 5

Interest rate.................................................................................................................................. 6

Unemployment rate...................................................................................................................... 7

Social & cultural factor.................................................................................................................. 8

Country Literacy level................................................................................................................... 8

Technological factors................................................................................................................... 8

Internet and broadband subscribers 1995 – 2007........................................................................9

Information and communication technology expenditure..............................................................9

2.3.................................................................................................................................................... 9

Porter’s 05 Forces examination for HSBC bank...............................................................................9

SWOT Analysis for HSBC.............................................................................................................. 11

2.4.................................................................................................................................................. 12

Applying the HSBC bank services to the BCG matrix.................................................................12

Indicating the HSBC services in PLC.........................................................................................13

Indicating BCG for overall HSBC UAE.......................................................................................13

SPACE Matrix Policy..................................................................................................................... 13

Applying SPACE for HSBC BANK..............................................................................................13

2. 5................................................................................................................................................. 15

Driving and restraining forces.....................................................................................................15

Field force analysis for HSBC.....................................................................................................15

2. 6................................................................................................................................................. 16

Strategy implementation............................................................................................................. 16

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 People........................................................................................................................................ 16

Plan for HSBC............................................................................................................................ 16

Resources.................................................................................................................................. 16

Resource plan for HSBC.........................................................................................................16

Strategy...................................................................................................................................... 16

Structure..................................................................................................................................... 16

Systems..................................................................................................................................... 16

Style........................................................................................................................................... 17

Skills........................................................................................................................................... 17

Shared values......................................................................................................................... 17

2. 7................................................................................................................................................. 17

Competitive factors.....................................................................................................................17

Unavoidable risks....................................................................................................................... 17

Loss of key personnel................................................................................................................ 17

Higher Implementation cost than forecast..................................................................................17

Government Regulation............................................................................................................. 18

Task-3 Reflective Essay...............................................................................................................18

McKinney 7S model for HSBC bank..............................................................................................18

Strategy of HSBC bank.............................................................................................................. 18

Structure of HSBC bank............................................................................................................. 19

Systems of HSBC bank............................................................................................................. 19

Styles of HSBC bank.................................................................................................................. 20

Staffs of HSBC bank.................................................................................................................. 20

Shared values of HSBC bank.....................................................................................................20

Skills of HSBC bank employees.................................................................................................20

Referencing................................................................................................................................ 20

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 Task 1

Executive Summary

Control

3
Task 2

2.1

Brief about the company

HSBC (2019) states that the financial organisation primarily helps the individual and personal
organizations with long additionally to medium financial transactions and it's a key and innovative
stance amongst the extremely competitive monetary establishments largely among the purchasers
in conjunction with the corporate company's minds. HSBC (2019) reveals that the bank serves
customers from concerning three, 900 locations in sixty six nations globally. Through the
worldwide existence further as experience, the bank assists customers to create the transition
easy just by setting associate degree account before even arrive among the UAE.

Mission statement of HSBC

“To be the leading International bank”

(HSBC, 2019)

HSBC bank is giving significantly better financial help with regards to transaction activities as well
as investing in business development.

Vision statement of HSBC

“Throughout our historical past, we have been exactly where the development is, connecting
customers to opportunities. Our team makes it possible for organizations to do well as well as
economies to thrive, enabling people to realize their hopes in addition to dreams and ambitions.”

(HSBC, 2019)

HSBC bank attempts to become the financial institute lead in UAE because this vision declaration
evidently reveals that the organization straight targeting for the marketable bank position.

2.2

Political factors
PEST analysis -

PEST refers to political, economic, and social as well as technology. Political aspects refer to just
how authorities' rules and regulations would influence business revenue in addition to success.
The subsequent are a few of the political aspects.

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Corruption level
Economics time (2019), states that the lessened corruption level rate in the middle of the years
2010 to 2019. In 2010. Corruption be there probably one of the most significant issues that a
country spikes poor standard of living. Due to corruption each and every part of the society will
surely be impacted. As stated above UAE already has lessened the corruption rate during the
course of the historical year, it will provide effects towards the entire civilisation which should be
regarded as the possible business opportunity for HSBC.

Freedom of press
Warden (2018), mentions that UAE has actually placed 162 nd out of (179) nations in addition to
essentially revealed that media independence on the nation is continuing to agonize for a
prolonged period of time. Though the nation has accomplished a small degree of liberty from the
time when preceding year it has been placed as 163rd in accordance with the guardian (2018),
simply because of the control of media freedom.

While evaluating the independence of journalists UAE can easily be regarded as a considerably
less sovereignty nation in media specifically when it comes to commercials as well as campaigns.
Consequently, it is going to be a hazard for organizations as well as business enterprises that
include HSBC.

Crime rate
The crime rate is going to play a big part indirectly in the investment in addition to banking sector,
in case the crime rate is high here is going to be a sure influence on the consequence as well as
export in addition to speculation so vertebral again it effect upon the rate of interest which happens
to be associated with financial institutions. In accordance with the Nation (2013),
In accordance with the above graph, we can easily view that the reported criminal offenses were
growing in 2010 however it has actually been lessened in the subsequent year. Once again from
2011 to 2018, the reported criminal offenses were lessened. Therefore, lessening the crime rate is
a chance for businesses in the UAE Economic factors
Economic influences mention to economic actions, for example, the county’s development rate,
education level, redundancy rate , inflation rate , interest rate and as well as exchange rate.

5
Inflation rate

(Trading economics, 2019)

In accordance with the trading pecuniary (2019), the price increases level in UAE was record
-2.2% in the month of July 2019. In comparison with the last months within this year (2019), the
inflation level is lessening month by month. In 2018 the price increases level was in fact elevated
with 3.1 percent. This is going to be an opportunity when it comes to the corporate for HSBC bank.

Interest rate
Rate of interest is among the major revenue components when it originates to the finance industry;
it obviously characterises the level of the funds copied

Interest rate inUAE

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According to the trade financial (2019), the very latest rate of interest of UAE was logged at 2.5
percent. In the historical years, the percentage appeared to be much higher though at the start of
the year 2016, the rate had become much lower. Because the nation is, in fact, moving in a
optimistic direction. This is going to be an chance for all the businesses in the nation in addition to
HSBC bank.

Exchange rate in UAE

(Trading economics, 2019)

Whenever a country’s exchange rate is balancing along with another nation it will be an occasion
when it comes to the corporate in the nation. Therefore it will be an prospect to HSBC

Unemployment rate
Unemployment rate

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(Trading economics, 2019)

In accord with trade-off economics (2019), the UAE joblessness rate stayed elevated by 2.57
percent in the year 2018. This implies in work individuals are not finding sufficient work
opportunities in the nation and this will certainly be an opportunity for the business as well the
nations' economic system will be regarded as not very healthy. It is therefore not an opportunity for

HSBC bank.

Social & cultural factor

It mentions to social environment as well as cultural trends, market demographics, population, age,
distribution, way of living factors that indicate countries' culture.

Country Literacy level

UAE Literacy level

(Index, 2019)

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As per Index (2019) states that literateness percent in UAE is 93.8. Is becoming advanced year
after year. It is really an prospect when it comes to the business in the nation considering that
whenever the nation is possessing a greater level of literateness, engagement, and financial wise
it can indicate being a good stage. Simultaneously, a high degree of education level in the nation
will be more mindful of the new offerings each time a financial institution attempts to put into
practice, therefore, it can be an opportunity to HSBC bank.

Technological factors
Technology performs a big part in the industry. Technical factors refer to the brand new invention
as well as development of technologies.

Internet and broadband subscribers 1995 – 2007

The above suggests that the total number of internet subscriber is, in fact, growing through the
previous years. Therefore internet groundwork might be regarded as a chance for the business in
terms of advertisement as well as reaching the purchasers.

Information and communication technology expenditure

As explains the expense of info and statement technologies is growing through the historical years.
In 2008 expense per capita is stated at 87.44 in accordance with the World Bank. Cumulative the
expense towards the knowledge suggests that the expansion speed of expertise use in the nation
therefore for a business, like HSBC it is really a business opportunity from the perspective of
implementing new innovation along with reaching the customer level.

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 2.3

Porter’s 05 Forces examination for HSBC bank

CGMA (2019), states that its analysis can facilitate to be told regarding the strong point of the
enterprise, primarily understanding specifically wherever the opponents stand and the way will the
organization forestall creating inappropriate decisions. This analysis is comprised of some parts
which might embrace the power of contractor , power of the purchasers, power of the rivals, and
the threat of choices additionally as at hand danger of recent entry. Once a business entity may be
a great success in 3 of the on top of forces, it suggests that the business may be a great success
inside the world.

Threat of new entrants

While equating to numerous different sectors finance sector possesses way less variety of threats
of recent competitors into the marketplace as of high blockade moreover as regulations and
restrictions levied by the govt, though already established opponents as an example Emirates
NBD, Rak Bank, Emirates Islamic Bank, national capital full service bank (ADCB) deliver totally
different varieties of solutions to captivate the shoppers from the rivals.

Rivalry between present competitors

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The direct participants for RAK Bank, Emirates NBD, nation-wide capital business Bank (ADCB),
Emirates Islamic Bank,. Every of those giants sharing the key market share concentrating on the
monetary arena.

Substitutes Threat

For bank the major standby already established corporations that offer constant service and
substitute service is particularly finance corporations solely, companies are providing the easiest
rates of interest compared with existing financial establishments.

Suppliers Bargaining Power

It refers to however strong the corporate stance being a customer is of course and what quantity
management over the price of product. For HSBC bank the suppliers that deliver their product to
transmit out regular services which might embrace Stationeries, security service once it involves
the lockers, computer code maintenance possesses a low-level of negotiating power as a result of
such a large amount of business competitors are on the market within the UAE current market.

Bargaining Power of Buyers

HSBC customers cheap power will increase within the event the rivals give considerably higher
interest for his or her monetary savings, fastened deposits, loans, as well as leasing. HSBC
customers possesses the optimum level of talks ability as a result of of the actual fact

SWOT Analysis for HSBC

After applying the SWOT the organization has the power to put out a method to really covert the
liability as business opportunities.

SWOT Analysis

SWOT Analysis for HSBC bank

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 2.4

Formed upon the merchandise lifespan theory which might be recycled to grasp what quite
importance should be provided within the product portfolio related to a business unit”. The
manufactured goods can make up anybody of the 4 classifications of the 4 varieties of Stars,
interrogation point, cash cows further as dog. The BCG matrix permits determining frequently
committed errors.

Growth share BCG Matrix

(Maxi Pedia, 2011)

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Indicating the HSBC services in PLC

Indicating BCG for overall HSBC UAE

Overall HSBC performance (BCG matrix)

13
 SPACE Matrix Policy

Applying SPACE for HSBC BANK

Applying SPACE for HSBC BANK

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 2. 5
Kurt Lewin introduced the idea of force field analysis. Managers apply this tool to figure out the
powers that in fact drive employee activity and get rid of unfavourable practices.

Driving and restraining forces

Driving forces impel conduct within the required direction. They could be intrinsic or perhaps even
extrinsic and could even comprise factors for instance motivation, organizational incentives or
even the desire to win the sanction of bosses and colleagues. Restraining influences stand in the
way of desired behaviour.

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Field force analysis for HSBC
In HSBC for behavior to alter, the entire strength of all driving influences needs to be much more
than the entire strength of all restraining influences. A change could be achieved by increasing the
driving influences or lessening the restraining ones. If it’s unfeasible to alter the potency of a
certain force, the manager can concentrate on modifying another one. In HSBC lessening
restraining influences is usually more practical in comparison with growing driving influences.

2. 6.

Strategy implementation
Effective implementation of strategies is of course protected by 5 most significant components or
factors. All of the 5 must be present so as for the business entity to possess the flexibility to
implement the strategies as intended.

People
The quantity of individuals within the proletariat may be a matter that's much easier to deal with by
HSBC just because the management has the power to use additional workforce when it's needed.
The tougher a part of this can be seeing thereto that the corporate has the right people, looking
into whether or not they possess the capabilities, knowledge, likewise as expertise necessary in
carrying out the duties which is able to implement the strategy..

Plan for HSBC

It seems that the present personnel lacking with the knowledge and tools and necessary fresh
skills still as competencies, the corporate management should be made to undergo the mandatory
training programs, seminars

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Resources
Basic activities with regards to implementation of strategy happens to be the allocation of
resources. These discuss with both the financial.

Resource plan for HSBC

The finance is significant at now and also the quantity of finance which can help implementation,
covering the prices additionally as expenditures that has to be incurred within the implementation
of the strategies. An extra essential resource may be a duration wherein the management must
come up with the time for brand new strategy implementation.

Strategy
The strategy happens to be the business to get competitive benefit and sustainable growth must
be lasting similarly as clearly outlined by the management of HSBC. It must indicate a path that
ends up in the accomplishment of goals and objectives. HSBC`s organization’s mission
additionally to core values, the strategy must even be in line with them, within which the current
strategy is synchronizing with it.

Structure
The structure necessity be noticeable to everybody, moreover as clearly recognize the way within
which department, division, unit, still as subdivisions are organized

Systems
A transparent sign and director regarding how the first actions or procedures of the business are
going to be applied. The processes, procedures, tasks, additionally to the flow of function,
compose the systems of the business entity.

Style
Corporate administration style operative inside the business entity, from senior management to the
team leaders further as leaders within the smaller sized units. Strategy implementation promotes
participative leadership patterns, and for that reason, this happens to be actually additional
regarding shaping equally as stating the interactions amongst the best leaders at intervals the
business entity and, to a selected level, the fashion they extremely are thought of by those that
they extremely lead or manage.

Skills
Personnel without capabilities really are ineffective resources for the establishment. In a trial to
profit the organization on the road to its own objectives, the staff should have the skill sets,
expertise, further as capabilities necessary within the implementation of strategies..

Shared values
Heart of the McKinsey 7s structure, and that they confer with the values, norm & frequently
acknowledged attitudes that inevitably drive members of the corporation to behave or respond in a
very particular way. Worker’s behaviour will definitely be prejudiced by each of those standard and
criteria, also as their joint values will come to be one among the driving influences of the
association while it moves ahead.

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 2. 7
There are many risk factors can build a control on throughout the strategy implementation

Competitive factors
New competitors be a part of this market

. Already established rivals debut absolutely new services and merchandise and take hostile
measures maybe cutting costs. The organization must fine-tune its own approaches and bring
innovative implementation techniques to counteract the actions taken by the rivals.

Unavoidable risks
These tend to be risks, that can’t be managed or even perhaps predicted: ranging from change
technologies really being stopped to even modifications in economic changes.

Loss of key personnel

Delays in implementation are likewise as a result of the unforeseen departure of most important
team members that were in command of execution the strategy. It takes time to appear for a
substitute having similar information additionally to skillsets, someone who is capable of with
success implementing the strategy.

Higher Implementation cost than forecast

During the planning method, management and the workers would place along a selling budget
which generally demonstrates the expense of execution elect strategies. Particularly with methods
the organization hasn’t applied within the past, exactly evaluating the expenses will be tough.
Because the strategy is introduced, the organization might even see that the expenses extremely
are higher compared to forecast, requiring difficult selections to be created on within which
expenses may presumably be shrivelled so as to stay the organization on target towards achieving
its profit targets.

Government Regulation
New government rules and rules may build it difficult for HSBC to implement their strategies.
Maybe, a lot of restricted division policy by the govt will prevent the enterprise from gap the extra
branch as planned.

Task-3 Reflective Essay

McKinney 7S model for HSBC bank

McKinney 7S model analysis

18
(Mind tools, 2019)

Strategy of HSBC bank

19
Structure of HSBC bank

( HSBC bank report, 2017)

Systems of HSBC bank

Styles of HSBC bank

Styles offers the concept of what form of management technique the financial institution observe to
run the commercial enterprise. HSBC financial institution (2007) sates, the significant elements
the corporation observe inner management. When it involves the auto industry, the corporation
observe the bureaucratic management fashion in which the policies and law need to be maintained
accurately even as the use of the democratic technique if need.

Staffs of HSBC bank

Working for HSBC financial institution is a form of status with inside the UAE society. HSBC
financial institution staffs are guided with inside the purchaser centricity, CSR projects, get
component on teamwork, commercial enterprise profitability. HSBC financial institution (2018),
states the management trainee application is properly acknowledged and on-the-process training

20
and rotations, furnished classroom-primarily based totally schooling is to be had to increase the
talents which cowl 2 hundred person-hours with inside the first year..

Shared values of HSBC bank

Shared values are the essential factors need to be taken into consideration in organizational
perspective. HSBC financial institution (2018), discusses the corporation consist seven specific
middle values inclusive of accountability, crew work &intention accomplishment, innovation and
excellence, ethically operable commercial enterprise, thinking about the purchaser as a middle
element, and being concerned the environment.

Skills of HSBC bank employees

Unlike the opposite retails HSBC financial institution strictly do now no longer recruit personnel
deprived of the basic diploma for a govt or trainee location, to fall beneath Neath any section, the
specialized diploma is important with an well-known stage of experience.

Referencing

 BCG Matrix. (2019). The BCG Growth- share matrix. Available:

http://www.netmba.com/strategy/matrix/bcg/. Last accessed 27th Sep 2019.
 Daniel lock. (2019). Kurt Lewin’s Change Model. Available: https://daniellock.com/kurt-lewin-
change-model/. Last accessed 27th Sep 2019.
 Destination. (2019). HOW TO USE FORCE FIELD ANALYSIS FOR CHANGE
MANAGEMENT. Available: https://www.destination-innovation.com/742-2/ . Last accessed
27th Sep 2019.
 HSBC. (2018). Annual Report and Accounts 2018. Available:
http://www.netmba.com/strategy/matrix/bcg/. Last accessed 27th Sep 2019.
 Mind tools. (2019). Making Every Part of Your Organization Work in Harmony. Available:
https://www.mindtools.com/pages/article/newstr_91.htm. Last accessed 27th Sep 2019.
 Morrison. (2014). Kurt Lewin change theory three step model – unfreeze, change,
freeze. Available: https://rapidbi.com/kurt-lewin-three-step-change-theory/. Last accessed 27th
Sep 2019.
 Numbeo.com. (2019). Abu Dhabi is the safest city on the planet with lowest crime
rate. Available: https://www.thenational.ae/uae/abu-dhabi-is-the-safest-city-on-the-planet-with-
lowest-crime-rate-numbeo-com-1.70632. Last accessed 27th Sep 2019.
 The Guardian. (2018). UK universities urged to review ties with UAE over jailing of
academic. Available: https://www.theguardian.com/world/2018/nov/21/uk-universities-urged-to-
review-ties-with-uae-over-jailing-of-academic-matthew-hedges. Last accessed 27th Sep 2019.
 Trading economics. (2019). Deposit Interest Rate in United Arab Emirates. Available:
https://tradingeconomics.com/united-arab-emirates/deposit-interest-rate. Last accessed 27th
Sep 2019.

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 Trading Economics. (2019). Tradingeconomics.com. Available:
https://tradingeconomics.com/united-arab-emirates/corruption-index. Last accessed 27th Sep
2019.

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