HSBC in the UK
Discuss about the Migration Statistics Quarterly Report.
The decision makers in the organization are required to perform the PESTLE analysis to forecast the changes in the external business environment. An organization can identify the potential opportunities and threats in the market that will manipulate the long-term performance of the business. An organization is required to continuously evaluate the business environment for the achievement of needed production level in the market. According to Botha, Kourie and Snyman (2014) the start-up and established businesses are required to access the external business environment for a smooth flow of operations. Business external challenges negatively impact the long-term performance of the business which requires the management to develop a budget that will deal with issues in the market. Strategic planning using PESTLE analysis is used to reassess the situation of the company for maximization of strengths and minimizing weaknesses of the company (Khan, Alam & Alam 2015). The company can develop a stable brand in the targeted market through the continuous evaluation of the external business environment. An organization can build a proper organizational culture by executing policies that consider the dynamic external business environment. The study will focus on HSBC a leading financial institution in the UK and the business environment in the nation.
HSBC is UK financial company that was established on 3rd March 1865 as Hong Kong and Shanghai Banking Corporation Limited (HSBC 2018). The company primarily focused on enhancing international trade globally especially Asia and Europe. The company was able to expand to other parts of the world through the acquisition and merger with other banks. HSBC has been able to develop a strong global brand through quality production to the consumers in the market. Consumer need analysis has greatly contributed to the increase in sales volume and profitability in the company. The company has been able to open over 3,900 offices in 67 countries and serves over 38 million people globally making it the world’s best bank in 2017 (HSBC 2018). The management and staff of the company are consumer-oriented for a sustainable competitive edge in the financial market. HSBC has employed 229,000 staff speaking over 144 languages to offer quality services to the consumers. According to HSBC (2018), the company was able to acquire a profit of USB 17.2 billion due to high demand for the financial services of HSBC. The company policies are highly flexible to deal with the changes in the external business environment.
PESTLE analysis: UK context
The PESTLE analysis considers the external business environment influencing the performance of the business (Smart Insights, 2014). An organization is required to focus on PESTLE analysis to acquire the following benefits in the production process. One is avoiding mistakes in production through the evaluation of factors that influence the production process of the business. The reduced mistakes are needed for a business to acquire an increased production level. Two is the development of a budget that will assist in achieving the set short-term, long-term goals of the business. The budgeting process is important for a business to have needed capital to facilitate production levels in the market (Rogulenko et al. 2016). The budgeting process assists to allocate resources effectively for sustainable performance in the targeted market. Lastly, PESTLE analysis assists in delivering quality products and services that are widely accepted in a particular market segment. Quality production requires a continuous increase of business operations to deal with the changing choices and preferences of consumers. The HSBC analysis of the UK external business environment is necessary for acquiring the desired market share in the nation.
The UK is a nation which is politically stable to motivate start-up and established businesses in the area. The UK comprises England, Scotland, Wales and Northern Ireland which are connected to achieve the set macroeconomic goals (Commonwealth Secretariat, 2018). The nations are required to corporate in increasing the performance of the region through sustainable economic development. It is necessary for the nations to develop a plan that will consider the set rules and regulations for a sustainable flow of operations in the market. The nation has voted to move from the European Union and operate as a free nation in the international market. The Brexit vote has negatively impacted the business due to the uncertainties that are experienced due to the UK leaving EU. The UK is supposed to consider the developing plan that will sustain the nation before the Brexit of 29 March 2019 (Wheeler and Hunt, 2018). The UK government is confident of acquiring a large number of treaties with other nations that will provide a smooth flow of businesses in the nation.
The government is aimed at making sure that there are a high number of people that are willing to invest in the nation due to the stable political situation. The investment in a politically stable nation assists in developing a plan that is highly effective to maximize the production level in the market. Proper evaluation of business is used by the government to reduce the corruption rate in the nation. According to Barrington (2016), the nation has formulated rules that will assist the company to fight corruption for the achievement of desired production level in the long run. The anti-corruption rules in the EU are modified to effectively run the operations in the UK for proper flow in the market.
Technological factors
The UK economy positively impacts the performance of businesses towards a sustainable flow of businesses. The Brexit has caused uncertainty especially in the financial institutions which operate across Europe. Proper evaluation of the economy assists the HSBC to develop proper organizational policies that will enhance the production level. The United Kingdom GDP in 2016 increased by 1.8% which was the second highest in Europe behind Germany. The UK was able to contribute to 16% of the Europe total GDP which is an indication that the nation is highly depended for regional progress (Eurostat 2017). In the third quarter of 2017, the UK was able to record an economic growth of 0.4% which is due to the suitable environment for investment and trade (Woods, 2017). The monetary and fiscal policies implemented by the business are focused on developing the performance of the nation. The national economy has been stable through the use of increased trade and investment to facilitate the growth of GDP. The annual inflation rate in the UK for 2017 was 3.1% which is double from 1.2% the previous year (Elliott, 2017). The high inflation rate has reduced the purchasing power of the consumers and raised the cost of living in the UK.
The business is supposed to consider the social and cultural factors of the consumers in the nation for a sustainable flow in the targeted market. An organization that has an insight of the targeted consumers is able to acquire an increased market share which is necessary for a steady flow of an organization (Horner & Swarbrooke 2016). The UK has a high population which contributes to the increased performance of businesses in the area. The HSBC Company has been able to increase the number of consumers in the market through financial services that will serve people from a different cultural background in the region. The UK is a multicultural nation immigration rate in the nation which requires the business to evaluate the changes in social factors. In 2017 the immigration rate was recorded at 224,000 where there are a high number of people entering the UK compared to those leaving the nation (ONS 2018). The immigration rate in the nation has contributed to the increase in population in the nation. The 2011 census of UK estimated the population to be 63.2 million comprising of 32,154,000 females and 31,028,000 males (Office for National Statistics, 2018). The UK has been experiencing an increase in population due to the suitable living conditions in the nation.
The use of advanced technology in production is necessary for an organization to achieve the desired production level (Johnston & Marshall 2016). In the UK there are proper platforms that make it possible to use the latest technology in production. The technological infrastructures in the UK are focused on providing social and economic development through increased trade in the nation. The technology infrastructures in the UK have assisted to positively increase the performance of the business for a constant flow in the industry. The easy accessibility of internet has greatly increased the performance of business with the online operation. According to Heath (2015), there has been an increase of 46% in the digital sector which has contributed to a 7.8% rise in employment. The digital sector has provided other businesses with platforms to acquire technological services that will enhance production in the market.
The UK government trade policies are aimed at providing an increased investment in the nation for a steady flow of business operations. Brexit requires the UK to focus on acquiring trade agreements with other nations with the aim of increasing the performance of the nation. The UK government has developed plans to increase international relations which will enhance trade and investment in the nation. The analysis of national trade policies assists in improving the rules to ensure that there is a continuous entry of businesses in the economy. According to Barrington (2016), the UK is focused on increasing inward investment through the development of suitable legal status. The post-EU requires the government to develop policies that will enhance overseas deals for a sustainable flow of operations through local and international business. It is important for a business to focus on developing a sustainable flow of operations through the use of advanced technology in production. The quality products and services are made possible by the business through the use of advanced technology in the market. The HSBC has acquired an improved sales volume through the use of appropriate strategies that are focused on using advanced technology. According to HSBC (2018), the online banking and application banking has increased the revenue acquired by the company in the financial industry.
The UK government is focused on a sustainable environment through the partnership with businesses. It is important for businesses in the UK to consider the set environmental conservation rules for a proper flow of operations while considering the changes in the environment. The UK has developed a plan that aims at reducing plastic pollution and carbon dioxide emission in the nation. The UK government has developed a 25-year plan that is focused on increasing the use of clean energy to conserve the environment (GOV.UK, 2018). It is important for businesses and government to partner in dealing with the issue of climate change through environment conservation
The HSBC is required to focus on the dynamic external business environment for a sustainable flow in the UK market. Proper analysis of business environment factors assists in applying strategies that will boost the productivity in the market. HSBC is supposed to implement flexible policies that will handle the dynamic external business environment. Wirtz et al. (2016) state the need for developing a flexible business model that will deal with the changes in the market segment.
Conclusion
It is evident that PESTLE analysis is an important tool for a business to have an insight of the changes in the external business environment. Proper evaluation of the political, economic, social, technology, legal and environment factors assists a business to acquire a sustainable flow in the market. HSBC is a leading bank in the UK due to the offering of quality financial services to the consumers. The UK government is focused on increasing the business environment in the region for social and economic progress through the enhanced investment inwards. The focus on international trade and investment has assisted the government to acquire the desired economic growth.
References
Barrington, R. (2016). Transparency International UK. [Online] Transparency.org.uk. Available at: https://www.transparency.org.uk/what-does-brexit-mean-for-the-uks-fight-against-corruption/#.WvEt2u-FPIV [Accessed 8 May 2018].
Botha, A., Kourie, D., and Snyman, R., 2014. Coping with continuous change in the business environment: Knowledge management and knowledge management technology. Elsevier.
Commonwealth Secretariat (2018). United Kingdom. [Online] Thecommonwealth.org. Available at: https://thecommonwealth.org/our-member-countries/united-kingdom [Accessed 8 May 2018].
Elliott, L. (2017). Inflation rises to 3.1%, adding to UK cost of living squeeze. [Online] the Guardian. Available at: https://www.theguardian.com/business/2017/dec/12/uk-inflation-rises-uk-cost-of-living-squeeze [Accessed 8 May 2018].
Eurostat (2017). Share of Member States in EU GDP. [Online] Ec.europa.eu. Available at: https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20170410-1 [Accessed 8 May 2018].
GOV.UK. (2018). 25 Year Environment Plan. [Online] Available at: https://www.gov.uk/government/publications/25-year-environment-plan [Accessed 8 May 2018].
Heath, A. (2015). It’s taken years – but the UK is finally building a great technology industry. [Online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/finance/comment/11676983/Its-taken-years-but-the-UK-is-finally-building-a-great-technology-industry.html [Accessed 8 May 2018].
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. London. Routledge.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.
Office for National Statistics (2018). Migration Statistics Quarterly Report. [Online] Ons.gov.uk. Available at: https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/internationalmigration/bulletins/migrationstatisticsquarterlyreport/february2018 [Accessed 8 May 2018].
Rogulenko, T., Ponomareva, S., Bodiaco, A., Mironenko, V. and Zelenov, V., 2016. Budgeting-Based Organization of Internal Control. International Journal of Environmental and Science Education, 11(11), pp.4104-4117.
Smart Insights. (2014). PESTLE analysis or PEST analysis model. [Online] Available at: https://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-model/ [Accessed 8 May 2018].
Wheeler, B. and Hunt, A. (2018). Brexit: All you need to know. [Online] BBC News. Available at: https://www.bbc.com/news/uk-politics-32810887 [Accessed 8 May 2018].
Wirtz, B.W., Pistoia, A., Ullrich, S. and Gottel, V., 2016. Business models: Origin, development and future research perspectives. Long Range Planning, 49(1), pp.36-54.
Woods, B. (2017). UK economy grows by 0.4% in the third quarter of 2017. [Online] Independent.ie. Available at: https://www.independent.ie/world-news/uk-economy-grows-by-04-in-the-third-quarter-of-2017-36260244.html [Accessed 8 May 2018].
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
