Responsibilities And Strategies Of HSBC

Responsibilities And Strategies Of HSBCThis report main(prenominal)ly foc accustoms on an organizations stakeholders, foodstuff casts and how upstandings suit to different problem circumstances. An organization needs to identify mission statement, place and key objectives and how these things influence of stakeholders. Environment of business is important to organization. The fellowship should perceive their responsibilities and strategies. They should identify the emulous strategies implemented to upgrade militant advantage oer competitors.An organization should identify the, what regards argon perfect controversy and what adore atomic number 18 unlike perfect competition. ingressHistoryHSBC, in 1882, decreed Delmege Reid and Co. the predecessor of the present Delmege Forsyth and Co. Ltd. as its agency in Colombo. In 1884 the islands economy suffered a severe setback when coffee plantations through pop the country were nearly totally destroyed by disease. As a topic of this and the fold up up of the once great Orient Bank, HSBC saw an opening for a corporate posit like itself.In the early 1920s the money box purchased and began construction on land adjoining the Bank of Madras. HSBC moved into its new-made home at 24, Sir Baron Jayatilaka Mawatha (which it occupies even today), an impressive landmark in Colombos architectural and business landscape.Through the goodly times and the bad that followed, HSBC back up Sri Lankan businesses. The Chetty Crisis which began in 1927 was so termed because many Chattier business pack were forced to omission their loans. While the impression was that foreign banks discriminated a pile upst Sri Lankans and did not advance monies freely to local businesses, 50 per cent of HSBCs lending during this time was to Indians and Sri Lankans.With the stationing of the British Air fight in parts of Sri Lanka during the Second World War, HSBC became a hub of activity. During this time and until 1956, the government activity of Ceylon kept a really substantial gross account with HSBC.Today, HSBC has run one of the c drop profitable banks in the country.Technological InnovationsAs an innovational bank, HSBC has led the Sri Lankan banking industry into the electronic age with the installation of the nations first online machine- deemled teller machine (ambience). HSBC was in like manner the first bank to computerize its trading operations and to establish an Internet Payment Portal. Furthermore, the introduction of phone banking, personal meshwork banking and the groups global electronic banking platforms, such as Hexagon and HSBC net, has greatly enhanced the returns they exile to their customers.Listed below ar many firsts from HSBCInstallation of Automated immediate paymentier Machines (ATMs) in Sri Lanka in 1986Computerized banking operations in Sri LankaElectronic DC Advising, a quick and easy way for customers to perk up their export Documentary credit and amen dments via e-mail or fax.Introduction of electronic banking via Hexagon in 1994Introduction of self- operate banking through Day and Night Automated Banking Centers in 2004Launch of state-of-the-art banking, internet based electronic banking platform HSBC net in 2005Introduction of Security Tokens for added online protection in 2005Easy Pay machines to facilitate cash and cheque deposits in 2006Introduction of toll free telephone banking in 20071.1 Mission StatementWe live the brand determine to passionately deliver bea-class customer experiences through a dynamic, motivated and professional team, which demonstrates mutual respect whilst providing innovative solutions and continuously verbotenperforming the commercialize place to the most sought-after monetary service countenancer admired by all.1.1.1Values and key objectivesTo exceed customer expectations in service quality.To be a pioneer in the murder of technologies those create distinction for its customers, employe es and shareholders.To preclude its reliability at the utmost take with the contribution of its difficult smashing body structure and liquid assets.To make a positive contribution to the lodge.To respect meritocracy during hiring processes, improving fellowship and skills of its employees, creating the mostly pet work environment.Through its core business principles, HSBC functions to accomplish it objectives. HSBC.com lists these as big(p) customer service effective and efficient operations strong capital and liquidity prudent lending constitution and strict expense discipline. HSBC too stresses that commitment by employees helps to create long-term customer relationships, a linchpin of the banks profitability toughie. HSBC.com states this is accomplished through attention to integrity, ethics and managerial oversight.The HSBC Group is committed to five Core Business Principles Outstanding customer service Effective and efficient operations Strong capital and liquidity conservative lending policy Strict expense disciplineHSBCs commitment to its values has allowed the ships company to accomplish many of its goals for expansion and profitability, as well as commitment to local investment and excellent customer service. HSBC is designed to be both global and local. Bankers Almanac ranked HSBC as the 14th largest bank in the earth, in terms of assets, in 2009. In addition, HSBC is carrying its objectives forward into the info Age Global Finance Magazine rated HSBC as one of the worlds outdo Internet banks for 2009 (Anonymous, 2010)1.1.2 Products1.2.0 Stakeholders AnalysisStakeholder analysis is needed for the company to identify its most important stakeholder and rede about group almost the organization. It ordain similarly tell the company which group has the greatest impact to the company.HSBC Sri Lanka has stakeholders such as Customers, shareholders and employees. All stakeholders are very important to the HSBC.Stakeholders of the organiza tion and their ObjectivesStakeholderObjectivesManagers/ directorsTo retain control.To immediately major decision making.EmployeesGood working environment.Motivation and satis incidention.To secure their jobs.CustomersTo set about good customer service.To obtain good value for money from the goods and services.ShareholdersTo receive dividends.To share the profitability of the business.To share the share damage.SuppliersTo continue to cheat profitably to the business.To be paid fully for goods supplied.CompetitorsTo compete by all straight means.To differentiate products from other businesses.Government/Legal InstitutionsTo receive tax revenue from profitable potents.To assist the business in accordance with the local and guinea pig policy.1.2.1 Extent to which HSBC achieves the objectives of its stakeholders.HSBC is a fair trading company and is very relate about the interests of the stakeholders. The objectives and the targets of the company are set in order to match the st akeholders. HSBC listens to the opinions and expectations of the stakeholders including government, shareholders, and customers into business decision making processes. For example, in 2001, based on concerns around marketing to children and existing science on the age when children identify and understand advertising motives, they prevented from advertising to children under eight years of age where they are the majority of the audience. Cadbury plc has presumption high concern to the following stakeholders.Strategies or shipway Implemented to achieve Responsibilities and Stakeholder ObjectivesAn organization is answerable to its stakeholders and is responsible to achieve their objectives. organisational responsibilities and stakeholder objectives is a combined relationship. Achieving the objectives leave behind make the company successful in fulfilling their responsibilities.Responsibilities of OrganizationsEmployeesCustomersShareholdersEqualityTo be safeRight to chooseSafet yTo keep informedRight to access informationEmployeesHSBC recruit the better(p) people not considering of age, gender, disability or ethnicity. They aim to attract employees who entrust be committed to a long-term career with the Group, offering a free-enterprise(a) reward package and career development opportunities within a strong organization with values.HSBC encourages employees to take part in local volunteering programs. HSBC key community investment initiatives incorporate opportunities for employees to get involved by giving their time and sharing their expertise.HSBC annual Global People Survey acts as a measurement for employee manoeuverment and satisfaction. With a 91% response rate in 2009, their employees take the survey seriously. In 2009, 77% of employees said they felt confident(p) that HSBC is moving in the right direction and 83% said that they were soaring to work for HSBC.ShareholdersShareholders are the people who invested money in the company. HSBC is a populace limited company and discharge issue shares in the stock exchange.HSBC engage with their shareholders on an ongoing basis, holding regular meetings with fund managers. In 2009 HSBC ran a program of over 900 meetings with institutional investors, including those with a special interest in the Sustainable and Responsible Investment (SRI) sector.CustomerHSBC aims to offer customers around the world a consistently high quality service and experience utilize the benefits of their exfoliation, geograp0hic r all(prenominal) and strong brand.HSBC aim is always to treat their customers fairly and with respect and they manage their deposits responsibly. Their lending criteria are strict, victorious into consideration their customers views they carry out market surveys and communicate directly with their customers on a regular basis.When customers stand difficulties making loan or mortgage repayments, they try to do their best to help them. Sometimes this means restructuring or re financing their debts, and offering counseling on an individual basis.When access to credit became restricted for commercial customers in 2008. HSBC created a new US$ 5billion global working capital fund for fiddling and medium-sized businesses. This was over and above what HSBC would normally expect to lend.1.4 Competitive strategies implemented to gain competitive advantage over competitors.TechnologyFirst to introduce ATM in Sri LankaSelf service paying machineInternet Banking shout out BankingCustomer ConvenienceInnovationGlobal research teams/new systems- constitute effectiveStrong global presenceBest practices shared and implemented in other areasProductsGlobal presenceProducts quaint- global features/accepted world wide1.5 Role of the argument fit and regulatory bodies.Competition careThe Competition Commission is a public body which rule on competition issues referred to it by the secretary of state and the Director oecumenical. The Competition Commission replaces the MMC, which was dissolved by the Competition stand for 1998 and whose functions were transferred to the CC. The Director general may require the CC to investigate and report on whether the actions of a telecommunications slattern licensed under the T Act operate, or may be expected to operate, against the public interest and, if so, whether this could be remedied or prevented by modifications of the conditions of its license. The CC would also be responsible for considering any competition concerns arising from mergers and acquisitions of or by winners of WT Act Licenses, if the Secretary of state, performing on the advice of the Director General of picturesque Trading refers that merger or acquisition to the CC for investigation.Regulatory BodiesThe division of Trade and Industry (DTI)The part of Trade Industry is the Government Department responsible for the development of telecommunication policy and the promotion of the telecommunications industry. The Communication and i nfo Industries directorate of the Department of Trade and Industry deals with national and international policy and regulatory issues, including those affecting the mobile telecommunications market. The department of trade and Industry is responsible for licensing operators to run telecommunication system under the T Act.The Rediocommications place (RA)The Rediocommunications Agency is an Executive Agency of the Department of Trade and Industry with responsibility for guidance of the radio spectrum throughout the UK. The main functions of the Radio communications Agency are formulating policy on the planning and management of the radio spectrum within the UK, co-ordination of UK views and club in international negotiations on the use of radio, authorizing use of radio by licensing or exemption, formulating technical and operating standards for radio, enforference. The RA is responsible for issuing licenses to use the radio spectrum under the wireless Telegraphy Acts and for monit oring compliance with those licenses and taking enforcement action where necessary.The Office of Telecommunications(OFTEL)The Office of Telecommunications was established by the T Act to support the Director General of Telecommunications in the performance of his duties. The Director General and the Secretary of state get a joint duty to employ their respective functions under the T Act to secure the provision of telecommunication services throughout the UK and, subject to this, to promote the interests of telecommunications users in respect of the harms supercharged for, the quality and variety of telecommunication services provided and telecommunication apparatus supplied and to uphold and promote effective competition in the telecommunications market. The Director General has a duty to give the Secretary of state advice and information with respect to licensing of telecommunication systems, at the request of the Secretary of State or where the Director General considers it e xpedient.OFTEL performs the function of the UKs regulatory authority in telecommunications, monitors compliance with licenses issued under the T Act and takes enforcement action where necessary. The Director General has extensive violences under the T Act, particularly when enforcing or modifying license conditions. If a condition is breached, he heap require the license holder to comply by making an order. This is enforceable by third parties or the Director General through civilised action. He can also make determinations for example to set out the terms for interconnection between ne cardinalrks where the both operators cannot agree between themselves. The Director General can also require operators or other parties to cut the information needed in order to come to a decision. line 2(P3)2.0 CompetitionThe effort of ii or more parties acting independently to secure the business of a third party by offering the most favorable terms. at that place are two main methods in whi ch star signs compete. wrong Competition.Non- expense Competition.2.1 Competitive Advantage and Competitive StrategiesA competitive advantage is an advantage above competitors gained by offering consumers larger hurt, each by income of lower p strains or by providing larger benefits and service that justifies high prices.thither are two typesetters cases of competitive advantages found by Michael porter. greet AdvantageCompetitive AdvantageSimilar ProductLower embodyDifferentiation AdvantageHigher PriceFor crotchety Product2.2 Strategies to soak up Competitive AdvantageGaining a competitive advantage can provide a business with a distinct advantage over its competitors. There are two basic approaches to gaining a competitive advantage. These are address leading and differentiation.These are the strategies that I feel, should be implemented to gain the competitive advantage. ostiarys five forcesResources based viewGeneric StrategyPorters Five ForcesThe model of porters five forces is used to analyze the value of an industry structure. It identifies five ancient competitive forces and enables organizations to adapt the business to take advantage of the opportunities and overcome threats and gain a competitive advantage. (12-manage, 2010)These five forces should be analyzed by the company and develop its market on the forces which are weak. For example if the moderniser is a low cost producer it will choose powerful debauchers and sell them only products that are not vulnerable from subs.Also a company is able to achieve a competitive advantage by alter theses forces. For example HSBC can put barriers to new entrants by using unique and capital intensive resources that competitors cannot easily copy and also use resources such as patents and trademarks.Competitive RivalryThreats of New entryBuyer powerThreats of SubsitiutionSupplier powerCompetitive RivelryStrenght of Competition.Similar size competitors.Financial expertness of competition.Growth of the Industry.Treat of new entryEconomic of scale.Government Policy. large(p) Requirement.Treat of Substitution bet of similar products.Substitut availability of the market.Buyer caterFinancial strenght og buyer.Number of competitors.Purchasing volume.Supplier PowerNumber of suppliers.Number of substitute.By using this model the company can see the arrange of it self in the market. This analysis can be used to study a suitable system to gain the competitive advantage.Resource-Based ViewThis strategy emphasizes that in order to gain a competitive advantage a firm should possess two main features. That is firms should have superior resources and capabilities exceeding its competitors. If not the competitors can easily copy what the firm was doing and the company would lose all the benefits. (QuickMBA, 2007)Generic StrategiesMichael porter has found three generic strategies into which business operations can be categorized. They are cost leadership, differentiation and focus. P orter emphasizes that high profits or competitive advantage is a chair of two features. He states that firm strengths will fall into one of the two headings which are differentiation and cost advantage and the design these strengths are employ will result in the generic strategies. (QuickMBA, 2007)Generic Strategy mannikinAdvantage constitute leadership DifferentiationStrategy StrategyunsubtleNarrowTargetLow cost Differentiation(Quick MBA, 2007)Cost leaders StrategyThis generic strategy calls for being the low cost producer in an industry for a given take of quality. By producing the products inexpensively than the competitors at a given level of quality the firm can sustain a competitive advantage on cost. This would be very advantageous as when an industry matures and prices decline, firms that can produce cheaply will remain profitable for a longer period. (QuickMBA, 2007)Each generic strategy has its risks, including low cost strategy.Differentiation StrategyThis strategy calls for the development of goods that offers unique attributes that are valued by customers and that customers perceive to be better than or different from products of the competition. This strategy is producing products which contain unique features and attributes that consumer prefer to have and which are better and can be distinguished from the competitors products. The value added by uniqueness of the product may allow the firm to charge a finest price for it. (QuickMBA, 2007)Focus StrategyThis strategy is concentrates on a narrow market or a segment. The firm can target the cost leadership and differentiation strategy on a particular market segment, this will create a focus cost strategy or a focus differentiation strategy. (QuickMBA, 2007)The advantage of a focus strategy is that the firm is able to meet the needs of customers effectively than if a broad market and for that reason customer loyalty adds.3.0 foodstuff Structures marketplace structure is the organizational an d other characteristics of a market. We focus on those characteristics which affect the nature of competition and pricing but it is important not to place too much(prenominal) emphasis simply on the market share of the existing firms in an industry.Market structures allow us to analyze how much competition in that respect is among firms making a particular product in an industry. There are four main types of market structures with different characteristics in each of them. stainless CompetitionMonopolymonopolisticOligopolyPerfect competitionPerfect competition is a market structure in which an individual firm cannot affect the price of the product it produces. Each firm in the industry is very low-down relative to the market as a whole, all the firms sell a homogeneous product and firms are free to enter and dismission the industry. Competition policy has the objectives of change magnitude competition in the economy, or of encouraging firms that are not competitive to behave as if they were, in its role as consumer advocate, the competition authority is often responsible for implementing policy directed at outlawing unethical behavior by business. Perfect competitive market has septette distinguishing characteristics.Large number of buyers and sellersA homogeneous productPerfect knowledgePerfect mobilityFreedom of entry and exitAbsence of non-price competitionThe firm is a price taker physical exertion of a perfect competitive marketIn the Maharagama Market on that crest are many characteristics of a dead competitive market. All type of vegetables, fruits and other small goods are sell in this market. There are many customers coming to this market to buy goods for cheaper price.In the Maharagama market, many horse barn that have the alike(p) prices for many vegetables and fruits of the same quality. It is not because they have fixed the prices together before trading. In this type of market consumers will compare the prices of different stalls and pu rchase from the cheaper stalls for a given quality.In perfect competitive market has no barrier to enter to the market.Monopoly CompetitionMonopoly is a single seller provision the entire output of an industry. The prerequisite slew that it faces is the entire industry exact edit out for the good or services it sells. The monopolist sells unique products, and extremely high barriers to entry protect it from competition. A natural monopoly arises because of the existences of economies of scale in which the LRAC skip falls indefinitely as production increases. Without government restrictions, economies of scale allow a single firm to produce at a lower cost than any firm producing a smaller output. little firms leave the industry, new firms fear competing with the monopolist, and the result is that a monopoly emerges naturally.Major elements atomic number 53 seller hotshot productPrice-makerBarriers to entryMinimal advertising wasting diseaseExample of Monopoly CompetitionIn Sri Lanka monopoly (sole) producer is government. The electricity and water is provided from the government.There are high barriers to entry in to the market. Barriers such as,Limited resources.Cost of production.PatentTherefore any others cannot enter this market. The government sets the price and there are no other producers to manipulate this. They have full control over the market, they are price makers.Monopolistic CompetitionA market structure in which several or many sellers each produce similar, but slightly differentiated products. Each producer can set its price and cadence without affecting the marketplace as a whole. Monopolistic competition has characteristics of both competition and monopoly. Similar to competition, it has many firms, and free exit and entry.Example of Monopolistic CompetitionConsider the Soap industry as an example. There are few large producers of soap in Sri Lanka such as Sunlight, Rani, Zinal, Lifebuoy, and Lux and so on There is competition as i n perfect competition but products are not the same. These companies have monopoly in the production of its particular product for the reason that no other firm can produce soap carrying the same name.OligopolyAn oligopoly is a market condition in which the production of identical or similar products is concentrated in a few large firms. Oligopolies have characteristics similar to a monopoly.Example of OligopolyConsider the cell phones industry as an example. The Cell Phones industry is prevail by a few large firms such as Apple, Nokia, LG, Samsung, and Motorola etc.In the Gas production of Sri Lanka there are only two large known producers that is the Shell Gas Company and the Laugfs Gas Company. These two companies have the highest share of the market and there is a low level of competition.Less Market Control MoreMany Number of competitors OnePerfect CompetitionMonopolisticOligopolyMonopolyMarket ContinuumThis is Market Continuum. This diagram shows how the structure of the mark et changes according to the level of the market control and the number of competitors.4.0 Market forcesForces of demand and make out representing the aggregate influence of self-interested buyers and sellers on price and quantity of the goods and services offered in a market. In general, excess-demand causes prices and quantity of supply to rise, and excess supply causes them to fall. supplement change magnitudePrice increase regard IncreaseDemand fallsPrice fallsSupply fallsDemand and SupplyDemand is the amount of a particular economic good or service that a consumer or group of consumers will emergency to purchase at a given price. The demand curve is ordinarily downward sloping, since consumers will deprivation to buy more as price decreases. Demand for a good or service is determined by many different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be whole unrelated to price, or nearly infinite at a gi ven price. Along with supply, demand is one of the two key determinants of the market price.Supply is the availability of a product or a service in a market. The law of supply states when prices increase the firms would want to supply more. This is because they want to increase their revenues.Movement along the CurveChanges in price will result in a movement along the curve with the fact that other factors remain unchanged collectable to the changes in quantity demanded or supply. A fall in the price will result in an extension of demand, quantity demanded will increase.Contraction of Demand is where an increase in price causes demand to fall.For an example an increase in the price of Donuts, duration other factors remain unchanged will cause an increase in the quantity supplied. Sellers will move from one point to another point in the same curve. When price increased from P1 to P2, quantity supplied willPrice SupplyP(2) BP(1) AQS(1) QS(2) QuantityShift of the CurveThe curve shift s to the right or left as a result of changes in any other non-price determinants due to a change in supply or price.The demand curve shifts to the right as a result of an increase in demand while price remains unchanged. The curve shifts to the left as a result of a decrease in demand with price remaining unchanged.For an example demand for cool drinks qualification fall in the winter season therefore demand decreases due to a non price determinant which causes a shift in the demand curve to left from D to D1 while the price remains unchanged.DD1PQD QD1Non- Price Determinants for DemandChanges in consumer incomes.Changes in tastes for consumer goods.Changes in expectations of futurity prices.Changes in price of Substitutes.Non- Price Determinants for SupplyChanges in production technology.Changes in cost of resources.Changes in number of sellers in the market.Changes in expectation of emerging prices.4.1 Influences on Firms of Market ForcesDemand and Supply influences to a great extent on price. When demand increases suppliers will supply more and as a result the suppliers will increase the prices in order to obtain higher revenue, however when price keeps increasing demand will start falling.Market forces helps firms to determine the market price where the quantity demanded equals to the quantity supplied. This is known as the equilibrium price.Supply and Demand modelThe point where the supply curve and demand curve meets is the equilibrium price. If the suppliers sell below the equilibrium price then buyers will demand above the supply which creates a shortage in supply. The opposite could also happen where the suppliers sell at a price higher than the equilibrium price which will lead to a surplus of goods.For an example demand and supply of sieve in Sri Lanka. Rice producers created a shortage in the supply of rice with the purpose of increasing the prices. This was an illegal practice this shortage in supply of rice, lead to an increase in demand to a great extent as this was also an essential product. It affected consumers a lot and the consumers were prepared to buy rice at any level of price. This shows that demand and supply can have both negative and positive influences on firms.Changes in quantity demanded a