hsbc

D

Case study on

• INTRODUCTION

• KEY ISSUES OF THE CASE

• POSSIBLE SOLUTION FOR CASE

• BEST POSSIBLE SOLUTION

• QUESTIONS FROM THE CASE

The Hong Kong and Shanghai Corporation Limited

INTRODUCTION

Established in 1865 in Hong Kong and Shanghai

Organized within four business groups

Commercial banking

Global banking and market

Retail banking and wealth management

Global private bank

Financial Aspects

Fourth largest bank by assets( $ 2,348.98 billion)

Second Largest in terms of revenues ($ 146.50 billion)

Largest in terms of market value($ 180.81 billion)

Unique Brand Name

DIVERSITY IN CULTURE

Use diversity as a competitive differentiator, both in employment and in customer markets.

• Diversity initiatives and programmes are driven by our Diversity Committee which comprises senior executives from across the company

Gender Disability Underprivileged

The Ad Campaign

• ‘The world’s local bank’ – 2002• These advertisements depicted the

characteristic features of the that particular country in which it was aired.

• In Malaysia, it also used the tagline ‘Bank sedunia memahami hasrat setempat’ -> meaning ‘A global bank that understands local needs’.

What are the initiatives taken by HSBC to target consumers across various countries ?

Add campaign through print and electronic media

Employed local people

Use of electronic channel

Conduct programs

What were the drawbacks of the “THINK GLOBALLY, ACT LOCALLY” strategy adopted by William Purves?

• In late 1980s, when William Purves took over as chairperson

of HSBC, it was relatively unknown outside Asia.

• Mr. William acquired dozen of bank brands and changed

HSBC into a global bank .

• HSBC consolidated about a dozen brands that it had acquired,

5500 offices, and 1200 financial services subsidiaries which

were spread all over the globe , with a philosophy of “think

Globally ,Act Locally”

Drawbacks

Brand Confusion

HSBC went online & challenge was to use internet to become a borderless bank

HSBC Re-Brand

• The re- branding elements was associated with the risk

• Trust element was very critical In the case of financial services

The world’s Local Bank

• It employed local people where it had presence.• Philip Spencer – ‘We pride ourselves on local

people who speak the local language working in a world bank’.

• Importance of understanding the local culture.• ‘Precise and effective communication along with

a detailed cultural understanding is crucial to forge the necessary relationships which will ensure the company achieves success’.

SWOT ANALYSISSTRENGTH

1.Strong brand name and good financial position

2.Present in various business groups like commercial banking, investment banking,

financial services and private banking

3.Diverse customer base decreases risk

4.Employs over 275,000 people globally

5.Has over 7500 offices in around 87 countries

Weakness

1.US a declining market

2.Weak retail banking as compared to competition

Opportunity

1.Expansion in other countries

2.Diversifying portfolios for customers

3.Lower interest rates will boost market share

Threats

1.Changing govt regulations and financial crisis like recessions

2.Stiff competition from global leaders

THANK YOU