...INTRODUCTION Company History: The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries. In Japan, where a branch was established in 1866, the bank acted as adviser to the government on banking and currency. In 1888, it was the first bank to be established in Thailand, where it printed the country’s first banknotes. From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880s, the bank was acting as banker to the Hong Kong government and also participated...
Words: 3659 - Pages: 15
...The Hongkong and Shanghai Banking Corporation Limited Annual Report and Accounts 2012 THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED Annual Report and Accounts 2012 Contents Financial Highlights ........................................................................................................................................... Report of the Directors ...................................................................................................................................... Financial Review ............................................................................................................................................... Statement of Directors’ Responsibilities ............................................................................................................ Auditor’s Report ................................................................................................................................................ Financial Statements .......................................................................................................................................... Consolidated income statement ......................................................................................................................... Consolidated statement of comprehensive income ............................................................................................ Consolidated balance sheet .......................................
Words: 89753 - Pages: 360
...ASSIGNMENT 2 by (Name) Course Tutor University City and State Date Executive Summary HSBC bank is a financial institution, whose conceptualization age dates back to 1865 in Hong Kong. Commonly known as the HSBC Holdings plc, the multinational bank expanded and it opened other branches in several countries while offering financial and banking services. With its headquarters located in London, the bank is ranked as the fourth largest in the world. In Oman, however, the experienced problems within the bank are not what one would expect from a financial institution with such a reputation. Since its establishment in 1948, the bank has always offered top-notch services with fewer mistakes in Oman. Currently, there have been reports that the country is experiencing problems with their ATM machines. Customers are unable to use their ATM cards to access their accounts. The administrative sector is also having problems involving registration of clients to their newly introduced Advance Credit cards. The process has become strenuous for its customers. This study aims at identifying the problems and resolving it through operations management theories in gaining global competitiveness. According to the theories of operations management, organizations can solve their problems in three distinct ways. The six-sigma approach suggests identifying the defects and solving them afterwards. The lean approach, similarly advocates for the identification of defects...
Words: 3423 - Pages: 14
...Project Proposal ------------------------------------------------- HSBC Bangladesh: Strategic plan for consolidating market base in commercial banking segment Prepared For Dr. A.K.M Saiful Majid Course Instructor, Strategic Management Prepared By Zahedul Amin, Roll- ZR-33 EMBA Batch 13 Institute of Business Administration, University of Dhaka Background The report will be prepared as part of the course requirement for the Strategic Management course, under the supervision of our esteemed faculty, Dr. Saiful Majid. HSBC Bangladesh has gained significant traction since entering the market in 1998. They have adopted a set of focused strategies enabling them to position themselves as a premium brand in the commercial banking segment. Alongside, they have forayed in the retail and structured financing segment securing spectacular performance. The report intends to focus on recent strategic changes which resulted in HSBC effectively closing retail banking wing. This is the result of the organization’s internal restructuring which led to renewed focus on commercial banking which has higher profitability and lower classified loans. Scope The report will be based on publicly available documents and on Key Informant Interviews (KIIs) with company middle-management. The report will make use of previously available internal surveys and studies deemed non-classified by company management. Application of tools learned in the Strategic management course will be selectively...
Words: 439 - Pages: 2
...INTERNATIONAL UNIVERSITY-BANGLADESH Presentation Report Group Name: Prepared For ERFAN HAQUE Faculty of Business school AMERICAN INTENATIONAL UNIVERSITY-BANGLADESH Prepared By * RABBI, MD. FAZLAY 12-20952-1 * RABI, OBAIDUL ISLAM 12-20984-1 * RINKY, ROZINA AKTER 12-20929-1 * HABIBA UMMA 12-20930-1 * CHOWDHURY, MD. RIASAT IMTIAZ 12-20934-1 * SHAWON, SHAHRAJ HOSSAIN 12-20950-1 TABLE OF CONTENTS 1. History 2. Cascade Approach 3. Mission & Vision 4. Different Objectives 5. Human Resource Planning 6. Marketing Mix 7. Training 8. Remuneration/Benefits 9. Privacy & Security System 10. Loans 11. Types Of Banking 12. Conclusion History The Hongkong and Shanghai Banking Corporation Limited is a prominent bank established and based in Hong Kong since 1865 when Hong Kong was a colony of the British Empire. It is the founding member of the HSBC Group and since 1990 is now a wholly owned subsidiary of HSBC Holdings plc. The company's business ranges from the traditional High Street roles of personal finance and commercial banking, to corporate and investment banking, private banking and global banking. It is the largest bank in Hong Kong with branches and offices throughout the Asia Pacific region including other countries around the world. HSBC started operations in Bangladesh in 1996. The bank...
Words: 1670 - Pages: 7
...International Dimensions of Business HSBCs ascent into China. Word Count excluding references and table of contents: 3354 Business Management Contents Aims 3 1. Introduction 3 1.1 HSBC and China 3 1.2 Foreign Activity 4 1.3 HSBC in China 5 2. Chinese Business Environment 5 2.1 PEST Analysis 6 Political- Communism and World Trade Organisation Membership 6 Economical - High levels of FDI and a strong economy 8 Social- Education and Ageing Population 10 Technological- Accessibility 11 2.2 Analysis of the Chinese banking industry 11 2.3- Porter’s Five Force analysis 12 2.4 Culture Analysis 15 3. Mode of Entry 18 3.1 Reasons for mode of entry. 18 3.2 International Theory 18 4 - Conclusion 20 References 20 Aims This report will look at banking giant HSBCs entry into mainland China. The aim is to 1. Provide a brief outline of HSBCs entry into china, including background information on HSBC and China and take a look at the nature and location of HSBCs foreign activity. 2 Identify and analyse the main characteristics of the business environment in China that are likely to have influenced HSBCs decision to operate there. 3 Evaluate the factors that HSBC took into account when choosing its mode of international entry into China. 1. Introduction Globalisation has interconnected the world and is seen by some as an evolutionary process, although it does have its critics. Expansion into foreign markets is as a must for big businesses if they want to...
Words: 4126 - Pages: 17
...Chapter 1: Introduction to HSBC Group 1.0 HSBC Mission Statement: “We aim to satisfy our customers with high quality service that reflects our global image as the premier international bank” Objectives of HSBC: HSBC’s objectives are to provide innovative products supported by quality delivery of systems and excellence customer services, to train and motivate staffs and to exercise social responsibility. By combining regional strengths with group network HSBC’s aim is to be the one of the leading banks in its principle markets. HSBC’s goal is to achieve sustained earnings growth and to continue to enhance shareholders value. 1.1 An Overview of HSBC Group The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe. Thomas Sutherland, a Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company helped to establish this bank in March 1865. Throughout the late nineteenth and the early twentieth centuries, the bank established a network of agencies and branches based mainly in China and South East Asia but also with representation in the Indian sub-continent, Japan, Europe and North America. The post-war political and economic changes in the world forced the bank to analyze its strategy for continued growth in the 1950s. The bank diversified both its business and its...
Words: 21480 - Pages: 86
...Goals/Objectives Goal #1: Increase profit before tax over the Next 5 Fiscal Years from 2015 to 2019 by 40% in Asia. In the past three years, HSBC Holding plc’s profit before tax was 18,680, 22565, and 20649 million dollars respectively. Asia’s profit before tax was 14,625, 15853, and 18030 million dollars respectively. This proportion of Asia’s profit was as high as 78.3%,70.3%, and 87.3%. Therefore, i can believe that HSBC bank’s major profit from Asia. [1] Table 1 shows the profit before tax of geographical regions [pic][2] Why we has goal in Asia? According to the above table, we can see that Asia had the extremely high profit before tax compared to other parts of world. Also, Asia is the region which has the largest number of developing countries in the world. Such as China, India, Indonesia, and Malaysia. Especially, with China’s economic reform deeply, there has more investment opportunities will emerge. Why we hasn’t goal in Middle East and North Africa? We also can found Middle East and North Africa had a continued momentum of increased. But, we still made a decision we hasn’t goal in Middle East and North Africa. There has two reasons, the first reason is there has low level of economic. The second reason is local political instability increases investment risk. Strategic Options and choices In order help HSBC Holding plc to meet the goals and objectives, three strategies, expansion in China, restore customer confidence, product and service development...
Words: 1799 - Pages: 8
...Corporation (HSBC) was founded in Hong Kong and Shanghai in order to finance the growing trade between China and Europe. HSBC has it’s headquarter in London and enriches an international network which comprises around 6,200 offices in 74 countries and territories (HSBC, 2013). For decades, HSBC has grown and adapted to conquer the difficulties in China’s revolution and economic crises and now becomes the largest foreign bank in China. This essay combines core module theories and empirical case study to analyze HSBC’s strategy. In the first part, this essay will demonstrate how the strategy of HSBC changed, and compare the strategies before and after the accession to the WTO. The second part will discuss advantages and disadvantages of concentrating on rural areas and emerging markets. The influence of financial crisis, future opportunities as well as threats will be analyzed at last. 1. HSBC’ strategy and China accession to the WTO 1.1. The reason for changing strategy Down the decades, HSBC’s has grown and adapted their strategy from localization to globalization for China in order to react to the changes of economic reform and financial liberalization. HSBC differentiates its strategy from those competitors by describing the unique characteristics which is ‘The world’s local bank.’ Due to this position and strategy, HSBC is involved directly and indirectly in China's modern economic development and reform. HSBC’s strategy in China changed for several reasons. First, HSBC had an...
Words: 2079 - Pages: 9
...in high-growth emerging markets like China and leveraging RMB to gain that vital competitive advantage. Background Telco, with its Head office based in London, began life as a manufacturer of wire-line equipment for the Western European aerospace sector. Following the privatisation of national telecoms operators from the late 1980s, it refocused its business to supply carriers in Europe and the US. Telco has been an HSBC client for more than ten years, after finding that domestic banks could not match its international expansion strategy. HSBC’s global network supported its exports growth across new markets by supporting all Telco’s export invoices. Rolling waves of telecoms deregulation saw Telco and other suppliers enter the mobile handset market in the 1990s, attracted by the significant growth opportunities. The intense competition and tightening margins in equipment supply – not least the demand from emerging markets – saw Telco make its first trip to China on a sourcing mission for basic components. Building a business In China At the company’s request, HSBC relationship managers helped guide Telco’s entry into China by working with professional advisors in the Far East to design a tailored business structure and business strategy. The bank also nominated a local Chinese relationship manager to ensure its business would be well looked after in the market. With the RMB currency market closed at that time, Telco and other foreign businesses in the market were invoiced by Chinese...
Words: 1568 - Pages: 7
...Allah who blessed us with knowledge, understanding and ability to do this report. We are indebted to many people for providing us encouragement and support during our learning and working while making this report and we want to show our gratefulness to these people. We are very much grateful to Ms. SharminAkther, our respected course instructor of MGT101 (Principal of Management), who assigned us this challenging work. She always guided us to take and overcome this challenge successfully. Without her help in every step it was quite impossible for us to finish this report properly in time. We are also grateful to AKM Ahsan Habib, Team leader, Retail Banking and Wealth Management, and Othish Asif Rahman, Relationship Officer HSBC Select for giving us valuable information. Table of Content Topic | Pages | Chapter # I: Introduction | 01-02 | Brief History of HSBC | 01-2 | Chapter # II: Main Body | 03-17 | Management Function * Planning * Organizing * Leading * Controlling | 03-1303-0707-0910-1111-12 | Chapter # III: Conclusion | 12-15 | References | | | | Introduction The Hongkong and Shanghai Banking Corporation Limited is a prominent bank established and based in HongKong since 1865 when Hong Kong was occupied by British drug traders and made a colony of the British Empire. It is the founding member of the HSBC Group and since 1990 is now a wholly owned subsidiary of HSBC Holdings plc. The company's business ranges from the traditional High Street...
Words: 3452 - Pages: 14
...History of Bank Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Florence, Venice and Sialkot Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe.[9] One of the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397.[10] The earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.[11] Origin of the word The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths.[12] Definition of bank A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses. Listed Bank operates in Bangladesh Central bank • Bangladesh Bank In 1972 the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank with retrospective effect from 16 December 1971. State-owned...
Words: 5126 - Pages: 21
...the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand this will involve the University or its contractor copying my work and storing it on a database to be used in future to test work submitted by others. I understand that I can obtain further information on this matter at: http://www.unisanet.unisa.edu.au/learningconnection/student/studying/integrity.asp Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement. Signed: KWOK YUK MING Dated: 9th April, 2011 Signed: TSANG TSZ NGA, RAYE Dated: 9th April, 2011 Signed: Dated: 9th April, 2011 HSBC Group The HSBC Group is one of the world's largest banking and financial services organizations, it provides a comprehensive range of financial services through customer groups and global businesses including Personal Financial Services; Commercial Banking; Corporate, Investment Banking and Markets; and Private Banking, it established in Hong Kong and it is the largest bank incorporated in Hong Kong. Now we are going to...
Words: 1671 - Pages: 7
...HSBC Wants to be known as the “world’s local bank.” This tagline reflects HSBC’s positioning as a globe-spanning financial institution with a unique focus on serving local markets. Originally the Hong Kong and Shanghai Banking Corporation Limited, HSBC was established in 1865 to finance the growing trade between China and the United Kingdom. It’s now the second largest bank in the world. Despite serving over 100 million customers through 9,500 branches in 85 countries, the bank works hard to maintain a local presence and local knowledge in each area. Its fundamental operating strategy is to remain close to its customers. As HSBC’s former chairman, Sir John Bond, stated, “Our position as the world’s local bank enables us to approach each country uniquely, blending local knowledge with a worldwide operating platform.” Ads for the “World’s Local Bank” campaign have depicted the way different cultures or people interpret the same objects or events. One TV spot showed a U.S. businessman hitting a hole-in-one during a round in Japan with his Japanese counterparts. He is surprised to find that rather than paying for a round of drinks in the clubhouse, as in the United States, by Japanese custom he must buy expensive gifts for his playing partners. In another international TV spot, a group of Chinese businessmen take a British businessman out to an elaborate dinner where live eels are presented to the diners and then served sliced and cooked. Clearly disgusted by the meal, the British...
Words: 950 - Pages: 4
...Banking Corporation Limited, HSBC for short, is a famous bank and financing institution, and enjoys a high reputation around the world. Thomas Sutherland, the founder of HSBC, realized a demand for local banking facilities in Hongkong and on the China coast. Hence, the Hongkong and Shanghai Banking Corporation was founded in 1865 and the first bank opened in Hong Kong in March 1865 and at the same year, the first branch opened in Shanghai. Nowadays, the business of HSBC is distributed in more than 100 countries and regions and HSBC has over 100 million customers all over the world. Chinese market is quite important and special for HSBC and Shanghai was chose by HSBC and opened the first branch in 1865. Although the founder was a Scot, HSBC still headquartered in Hong Kong until 1980s. In early stage, HSBC hoped to become the local bank of China and gave services to the clients all over the world but now, HSBC preferred to be a global bank to cater to Chinese. Therefore, the China strategy is crucial for HSBC. The China strategy of HSBC can be divided into three stages, which was before Oct, 1949, before China’s accession to the WTO and after China’s accession to the WTO. In the middle of the 19th century, more and more British merchants came to China to do business but Qing government lacked banks or financing institution. Mr. Sutherland recognized the demand and founded HSBC to give services to the Brutish merchants and Chinese merchants. HSBC considered that China was a potential...
Words: 1302 - Pages: 6
