Hsbc Credit Card Rewards Program Harvard Case Solution & Analysis

INTRODUCTION

The Hong Kong and Shanghai Banking Corporation limited (HSBC) group was incorporated in 1865 in order to finance the emergent trade among Europe, India and China. Looking at the increasing demand for local banking services in Hong Kong and in China, a Scottish employee of Peninsular and Oriental Steam Navigation Company, named Thomas Sutherland, assisted to launch a bank which opened in Hong Kong in 1865 and after one month of its incorporation in Hong Kong it also launched in Shanghai.

The Hong Kong and Shanghai Banking Corporation limited (HSBC) group is a well reputed and highly esteemed banking and financial service organization. It has a massive network of operations with 9800 offices in 77 countries and territories in Europe, the Asia pacific region, the Americas, the Middle East and Africa. Its headquarters is situated in London. It offers a widespread range of financial services, commercial banking, corporate, investment banking and markets and private banking.

After its incorporation, the bank decided to expand its network of operations. Keeping that in mind it started opening its branches all across the world. The network readily reached in in Europe and North America, but after that the management was off the view that creating a representation in China and the rest of the Asia-Pacific region would be very fruitful in the interest of the company.

The Hong Kong and Shanghai Banking Corporation limited (HSBC) group was an innovator of contemporary lending performs in a number of republics. In Japan, the bank performed as a counselor to the government on funding and exchange, where a division was trustworthy in 1866. During 1888, HSBC was originally the first bank in Thailand to print the state’s first banknotes. HSBC became the leading financial institution in Asia over the time period.

The Hong Kong and Shanghai Banking Corporation limited (HSBC) group has earned its customer’s satisfaction and loyalty over the time period by offering exceptional customer care services and excellent quality financial services. It has made a huge brand name over the period of time due to which it has captured a large share in the entire market.

During the jiffy segment of its worldwide imprinting movement, the Hong Kong and Shanghai Banking Corporation limited (HSBC) group had sited itself as “The world’s local bank” to highlight the bank’s comprehensive scope as well as influence. HSBC leveraged its proficiency across 77 real marketplaces in order to deliver financial elucidations supported by the top most ethical standards and buttressed by innovative information skills.Hsbc Credit Card Rewards Program Case Solution

MACRO ENVIRONMENT OF HSBC

The macro economic analysis includes external factors which could influence the operations of the entity. Moreover, these are the factors which are normally beyond the control of an entity. These factors include Economic trends, Political Trends, Technological trends, Legal trends, social/cultural trends, and demographic trends.

There are two types of macro environment

1. External environment

2. Internal environment

EXTERNAL ENVIRONMENT

The external environment refers to all relevant aspects and impacts outside the boundary of the company. They are material enough to influence the economic decisions of the management of the company. Most often the external environment is presented as six segment analysis.

a)                  GLOBAL SEGMENT

 The global segment includes all the relevant information related to the political happenings, and global markets as well as external financial fairs

 b)                 DEMOGRAPHIC

 The demographic segment includes the analyses related to age of residents, the ethnic mix of the population             as well as the terrestrial diffusion of the people involved.

 c)                  ECONOMIC

 The economic segment includes the core analyses of the inflation and interest rates prevailing in the country. Moreover, it also deals with the currency exchange rates as well as disposable income and personal saving rates that are prevailing in the country

 d)                 POLITICAL/LEGAL LAWS

The political segments refer to the understanding of taxation laws, deregulations, and trade practices in the country as well as the Government policies of the country which can affect the financial sectors or trade sectors of the company.

 e)                  TECHNOLOGICAL

The technological segment includes the workforce diversity of the people in the country as well as high disposable incomes of the population of the company.

 PESTLE ANALYSIS

PESTLE analysis includes the analysis of macro-economic environment. It includes political, economic, social, technological, legal, and environmental factors. This model includes the analysis about these factors that how these factors affect the entity and its operation and not only this it also analyze that how these factors influences the economic decisions taken by the top management of the company..................

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