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Hsbc Swot Analysis

Autor:   •  December 16, 2011  •  Case Study  •  1,248 Words (5 Pages)  •  1,156 Views

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HSBC has been in banking for over 146 years. The banking firm is based out of London where it serves 87 countries in the regions of the Americas, Europe, Asia-Pacific, Middle East and Africa. Serving four segments of banking including; Commercial Banking, Global Banking and Markets, Personal Financial Services and Private Banking, HSBC has learned to live my its motto " Local bank serving local needs". HSBC is also listed on major financial exchanges including New York Stock Exchange, London Stock exchange and Paris Stock Exchange. Accounting practices are governed by Sarbanes Oakley's helping the world gain trust of successful business practices.

Traditionally, HSBC is known for promoting from within as they normally look internally to fill top positions. Normally the transitions between HSBC Chairmen is smooth as Chairmen are accustomed to handpicking successors. In 2010 Group Chairman Stephen Green left surprisingly with picking a successor. The leading candidate for the position was Group CEO Michael Geoghegan, but UK's corporate governance as well as shareholders' frowned on it. Instead Douglas Flint became HSBC Chairman and Stuart Gulliver became Group CEO after Green retired because of the lack of promotion. This situation scarred the imagine Of HSBC unblemished record of being of having a traditionally smooth transition.

Promoting from within has it advantage and disadvantage especially in top positions within a company. The advantages of promoting from within are candidates will already have a relationship with shareholders, it employees know good performance will be rewarded and candidates will already know the business. However the disadvantage are just as important. Shareholder who want a change will be extremely unhappy, candidates may not stray away to far from already established strategies and the respect of co-workers might be lacking.

SWOT ANALYSIS

STRENGHTS:

1. International Presence

HSBC is in 87 countries in regions of Europe, the Americas, Asia-Pacific and Middle East and Africa. Being geographically diverse allows the company to increase revenue and market share easier. Also being in so many countries reduces the risk of being in one particular areas such as only operating in England. HSBC started to expand in 1985 when it developed a global treasury operation further.

2. Company Culture

Company is huge part of the success for the HSBC brand. The firm tends to promote from within and it has showed positive outcomes for the second profitable bank globally. Employees learn that good work will be rewarded and the company really cares. Shareholders will not have to form new relationships with incoming executives.

3. Capitalization

HSBC

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