HSBC BANK

Overview of the Company HSBC:

The HSBC Group, one of the worlds largest banking and financial services organization headquartered in the United Kingdom, had its beginnings in Asia more than 130 years ago. The Group has more than 8000 offices in 88 countries and territories in Europe, The AsiaPacific region, The Americas, the Middle-East and Africa. In

Bangladesh, its main office (head office) in Dhaka, a full-service branch in Chittagong and nine full-branches in Gulshan, Motijheel, Lalbagh and Dhanmondi, Uttara, Banani and Narayongonj, Mirpur, Sylhet, and Chittagong represent HSBC group.

Objective of the Report:

The Objectives of the study are as follows: To describe an overview of the HSBC Bank To describe the products and services of HSBC Bank To describe the general banking activities such as the activities of accounts opening secretion, cash section etc of HSBC Bank Main Office. To find out some problems of those activities. To make some recommendations to solve those problems. Strategies used by HSBC 1

Hrm Practices in HSBC BANK

Introduction:
Headquartered in London, HSBC Holdings plc is one of the largest banking and financial services organizations in the world. It began operations in Hong Kong more than 130 years ago. The HSBC Group's international network comprises some 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York and Paris stock exchanges, around 200000 shareholders in some 100 countries and territories hold shares in HSBC Holdings plc. The shares are traded on the New York Stock Exchange in the form of American Depository Receipts. Through a global network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal, commercial, corporate, investment and private banking; trade services; cash management; treasury and capital markets services; insurance; consumer and business finance; pension and investment fund management; trustee services; and securities and custody services.

Foundation & Growth of HSBC:

The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited (HSBC), which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe. The inspiration behind the founding of the bank was Mr. Thomas Sutherland, a Scot who was then working as the Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities both in Hong Kong and along the China coast and he helped to establish the bank in March 1865. Then, as now, the bank's headquarters were at 1 Queen's Road Central in Hong Kong and a branch was opened one month later in Shanghai. 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. In many of its branches the bank was the pioneer of modern banking 3

practices. From the outset, trade finance was a strong feature of the bank's business with bullion, exchange and merchant banking also playing an important part. Additionally, the bank issued notes in many countries throughout the Far East.

During the Second World War the bank was forced to close many branches and its head office was temporarily moved to London. However, after the war the bank played a key role in the reconstruction of the Hong Kong economy and began to further diversify the geographical spread of the bank. The group expanded primarily through offices established in the banks name until the mid 1950s when it began to create or acquire subsidiaries. This strategy culminated in 1992 with one of the largest bank acquisitions in history when HSBC holdings acquired Midland Bank plc, which was founded in UK in 1836.

HSBC Business Entities

The group is represented by different business entities in over 88 countries and territories around the world. It would be difficult to list them all individually so the name of the major entities is shown on the following page along with their region and volume of operation.

HSBC Group Vision

To be the unique foreign bank in Bangladesh and to make significant contribution to the national economy and enhance customers' trust & wealth, quality investment, shareholders' equity employees' value and rapid growth in

HSBC Group Mission

To be the Bonding Company that guarantees in the market to satisfy appropriately and professionally the bonding needs of our obligors and the assurance of timely fulfillment of our bond to our beneficiaries.

HSBC Group Values

Long term, ethical client service High productivity through team work Confident & ambitious sense of excellence International character, conservative orientation Capable of creativity & strong marketing

HSBC Governing Objective

We will beat the mean Total Shareholder Return performance of a peer group of financial institutions over a three year rolling average, and target to double Shareholder returns in five years.

HSBC's Business Principle & Values

The HSBC Group is committed to five Business Principles: Outstanding customer service; Effective and efficient operations; Strong capital liquidity; Conservative lending policy; Strict expense discipline;

HSBC also operates according to certain Key Business Values:

The highest personal standards of integrity at all levels; Commitment to truth and fair dealing; 6

Hand-on management at all levels; Openly esteemed commitment to quality and

competence; A minimum of bureaucracy; Fast decisions and implementation; Putting the Group's interests ahead of the individual's; The appropriate delegation of authority with

accountability; Fair and objective employer;

A merit approach to recruitment/selection/promotion; A commitment to complying with the spirit and letter of all laws and regulations;

The promotion of good environmental practice and sustainable development and commitment to the

welfare and development of each local community.

HSBC Brand & Corporate Identity

The Hexagon logo of HSBC derives from HSBCs traditional flag, a white rectangle divided diagonally. Like many other Hong Kong

company flags in the last century, the design of the flag was based on the cross of ST. Andrew, The Patron Saint of Scotland. HSBC brand & corporate identity represents what HSBC wants its brand to mean to its customer. It is derived from the groups:

Corporate Character:
HSBC is a prudent, cost conscious, ethically grounded, conservative, trustworthy relationships. international builder of long-term customer

Basic Drives:
Higher productivity, Team Orientation, Creative Organization & Customer Orientation.

Vision:
To be the worlds leading financial company. The essence of HSBC brand is integrity, trust and excellent customer service. It gives confidence to customers, value to investors & comfort to colleagues.

HSBC in Bangladesh
HSBC obtained license from BANGLADESH BANK on The HSBC Asia Pacific group 1 April 1996 to conduct banking business in the country and commenced formal banking operations on 3 December 1996 through opening a branch at Dhaka .In Bangladesh , the HSBC Group is represented by Hong Kong bank , which has its head office in Hong Kong and a holding company, HSBC holding plc, which is incorporated in England .on 41 December 2000 , total capital and reserve of HSBC in Bangladesh were BDT 535.7 Million , which comprised capital BDT. 441.6 million and supplementary capital BDT. 94.2 Million. Realizing the huge potential and growth in personal banking industry in Bangladesh, HSBC extended its operation to the personal banking sector in Bangladesh and within a very short span of time it was able to build up a huge client base. Extending its operation further, HSBC opened a branch at Chittagong, seven branch offices at Dhaka (Gulshan, Mothijheel , Dhanmondi, Uttara and Banani) and Sylhet the number of employees of this bank in Bangladesh was

257. At Present number of employee is around 835.

In 2002, paid-up capital of this bank was BDT 380 million. Deposit of this bank was BDT 4,980 million. Among this deposit, called deposit was BDT 487 million and fixed deposit was BDT 1,323 million. The 9

amount of advance and investment was BDT 1,180 million and BDT 100 million respectively. In 2002, this bank operated foreign exchange business of BDT 8,234 million. HSBC Bangladesh is under strict supervision of HSBC Asia Pacific Group, Hong Kong. The Chief Executive Officer of HSBC Bangladesh manages the whole banking operation of HSBC in Bangladesh. Under the CEO there are heads of departments who manage specific banking functions e.g. Personal banking, corporate banking, etc. Currently HSBC Bangladesh is providing a wide range of services both two individual and corporate level customers. In the year 2000, the bank launched a wide array of personal banking products designed for all kinds of (middle and higher-middle income) individual customers. Some such products were Personal loans, car loans, etc. The bank also launched three of its personal banking products Tax loan, Personal secured loan & Automated Tele Banking (ATB) service. These products are designed to meet the diverse customer needs more completely. HSBC in Bangladesh also specializes in self-service banking through providing 24-hour ATM services. Recently it has introduced Day & Night banking by installing Easy-pay machines in Banani, Uttara and Dhanmondi to better satisfy the needs of both customers and non-

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customers. In total HSBC currently has 30 ATMs of Dhaka, Sylhet & Chittagong.

HSBC Bangladesh at a Glance:

HSBC AT A GLANCE
Name of the of 1996 Multinational Company with subsidiary group in BD. Paid up capital: BDT. 4380 Million Deposit BDT. 4,980 Million Advance BDT. 3,255 Million HSBC group shareholders The Hong Kong & Shanghai Banking Corporation Limited Organization Year Establishment Nature of the Organization Capital

Shareholders Head Office

Anchor Tower, 108, Bir Uttam C R Dutta Road Dhaka-1205, Bangladesh.

11 30 of Around 800

Number of Offices Number of ATMs Number employees Technology

Offers Phone Banking Services and full online banking from branch to branch. Serves individuals and corporate customers within Dhaka, Chittagong and Sylhet

Service Coverage & Customers

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Financial Services
It means any service or product of a financial nature that is subject to , or governed by, a measure adopted or maintained by a party or by public body that exercises regulatory or supervisory authority

delegated by law and includes , but is not limited to : deposit taking; loan and investment services ; insurance ; estate , trust and agency services ; securities ; and all forms of financial or market intermediation including , but not limited to , the distribution of financial products.

Organizational Hierarchy at HSBC, Bangladesh:

HSBC follows a 4-layer management philosophy in Bangladesh. These are Managers, Executives, and Officers & Assistant officers. The CEO is the top most authority of all the levels. Managers are the departmental heads that are responsible for the activities of their departments. They are the heads of the department and formulate strategies for that department. e.g. Human Resources Manger. Executives have the authority next to managers. They are basically responsible for certain activities & organizational functions. e.g. Admin Executive. These two layers represent the management level 12

of HSBC Bangladesh. Officers are the next persons to stand in the hierarchy list. They are the typical mid-level employees of HSBC organizational hierarchy. These officers are responsible for

managing the operational activities and operating level employees. The operating level employees of HSBC who are ranked as Assistant Officer fill the last layer of this hierarchy. They perform they day-today operational activities of HSBC. An organizational hierarchy chart is shown below:

2.17

Organizational Structure of HSBC

Bangladesh:

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2.17.1 Chief Executive Committee:

C h ie f E x e c u tiv e O ffic e r

C h ie f O p e r a tin g O ffic e r

M anager P e r s o n a l F in a n c ia l S e r v ic e s

Head of C o r p o r a t e B a n k in g

M anager H u m a n R e so u rce D e p a rtm e n t

M anager M a r k e t in g

The organizational structure of HSBC Bangladesh is designed according to the various service and functional departments. The Chief Executive Officer (CEO) heads the chief executive committee, which decides on all the strategic aspect of HSBC. The CEO is the person who supervises the heads of all the departments and also is the ultimate authority of HSBC Bangladesh. He is responsible for the all the activities of HSBC Bangladesh and all its consequences. He administers all the functional departments and communicates with the department heads for smooth functioning of the organization. The HSBC Chief Executive Committee is formed with the heads of all departments along with the CEO. The structure of this top-most authority is shown in the figure above. Besides the CEO the CEC is staffed with 5 more managers: Chief Operating Officer, Manager Personal Financial Services, Head of Corporate Banking, Manager Human Resource Department and Manager Marketing.

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Functional Departments of HSBC

HSBC activities are performed through functional

departmentalization. So, the departments are separated according to the functions they perform (HR, Marketing, Personal Banking, etc.). There are 6 major functional departments at HSBC: Human Resources, Services, Financial Control, Personal Banking, Corporate Banking and Marketing. Within these major departments there are some other subsidiary departments that allow smooth operation of their own major departmental function. A graphical presentation of all the departments (Major & minor) is shown in the following page. A brief functional description of these departments is discussed below:

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Functional Departments of HSBC:

IT Information Technology PCM Payment and cash management HUB HSBC universal Banking

Human Resource Department:

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The Human resource Manager heads this department. The major functions of this department are Recruitment, Training and developments, Personnel Services and Security. The HR department is much concerned with the discipline that is set up by the HSBC group. HSBC group has got strict rules and regulations for each and every aspect of banking, even for non-banking purposes; i.e. The Dress Code. All these major personnel functions are integrated in the best possible way at HSBC, which results in its higher productivity. The Human resource officer monitors the employee staffing and administration activities. The Training officer supervises Training, development & rotation activities. The structure of the HR department is shown below:

Structure of Human Resource Department:

AO = Assistant Officer

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Services Department:
This is an integral and vital part of the bank. The services department ensures smooth operation and functioning within and between all the departments of HSBC. It also provides continuous support to the core banking activities of HSBC. The Manager of Services heads this department who formulates and manages various critical issues of the services function of HSBC. He is followed by a group of executives who are the heads of various subsidiary divisions that operate within the services department. The services department is considered as the backbone of all other departments. The various subsidiary division within this department are Administration, IT, Internal Control (IC), Network Services Center (NSC), and HUB. A structure of the services department is

presented below followed by a briefing of the subsidiary divisions:

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Financial Control Department (FCD):

This is considered as the most powerful department of HSBC. It keeps tracks of each and every transaction made within HSBC Bangladesh. Manager of FCD who ensures that all the transactions are made according to rules and regulation of HSBC GROUP heads it. Violation of such rules can bring serious consequences for the lawbreaker. The functions of FCD are briefly discussed below along with an organ gram of the department:

FC Foreign Correspondence PCM Payment & cash management OCM Outward cash management

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2.18.4 Personal Financial Services (PFS):

PFS is the most flourishing department of HSBC Bangladesh. This department basically deals with the management of products and services offered to the in individual consumers. Within a span of only seven years, HSBC, PFS has grown tremendously and is still growing with its innovative products and service offerings. Manager of PFS, Mr.Shafqat Hossain , Head of this department. He is the person behind the astounding growth of PFS department in HSBC Bangladesh. Chief of PFS manages and supervises the Personal Banking activities of the branch network of HSBC Bangladesh. The 11 branches of HSBC basically deal with the personal banking activities and provide various accounts services to individual customers. The Organ gram of PFS shown below:

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Head of PFS

Head of Distribution

Manager, Direct Sales

Manager, Credit Approval

Manager, Collection.

Manager, Premier Banking Officer

Manager, BI International

Manager, Branches

Approval Officers

Team Leader Collection Officer

Officer

Asst.Manag er, Sales

Asst.Manag er, CEPS Auto pay

Asst.Mana ger, Reporting

STL, Sales

TL, Sales

MSO

Branch Manager

Customer Service Manager

Customer Service Officer

What type of people do HSBC want for their brand advocates? Open-minded, outward-looking, optimistic, cosmopolitan, modern, future-oriented people. They all have considered aspirations and ambitions. HSBC - Best place to work

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HSBC have a low turnover rate <10% High demand for HSBC employees Competitive compensation and benefits package HSBC want Graduates to develop a career with this organization Good working environment HSBC recruiting system

Internships General Staff Recruitment Specialized/Lateral Recruitment Future Leader Development Programme

All Recruitment begins with: CV and a Cover Letter Interview(s) Recruitment tests Job offer!

Which types of candidate HSBC looking for? Interpersonal and communication skills Leadership qualities Abilities to be a team player Drive 22

Energy Adaptability Integrity and Loyalty Humility HSBC Philosophy

That means why HSBC Bangladesh concern about the employees. They have some logic. Now we explainQuick To Respond - HSBC will always try to anticipate and act quickly to ensure bank Meet and exceed banks customers ever-changing expectations Respectful - HSBC dont accept stereotypes. HSBC look for the value in everyone. Fair - HSBC reward our customers for the commitment they give to us. Perceptive - HSBC look harder, in order to understand things more deeply, And this informs everything we do. Progressive - HSBC are driven by the belief that we can shape a better future.

Branch Network:
There are eleven branches of HSBC, 9 situated at different place in Dhaka and 2 at Chittagong and another 1 is in Sylhet . Only the Dhaka office (head office) branch & Chittagong branch deals with

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both corporate and personal banking. The other 9 offices only deal with the personal banking activities. There functions are to provide various financial services to the consumers. These include customer services, sale of various PFS products, opening new accounts, providing cash, remittance and other teller services, etc. the branches are quite decentralized for better delivery of services to customer and have their own premises and facilities. Branch managers head these branches. Each branch is staffed with its own team of employees. A great deal of teamwork is seen within these branches. ATMs are situated with each branch premises.

Credit Department:
The personal banking credit department deals with the consumer credit schemes such as the Personal loan, car loan, personal secured loan, personal secured credit etc., which are tailored to meet the demand of individual customers. The manager of PFS credit, Mr. Safiul Ajam, approves and administers all the activities of this department. He is staffed with five loan approval officers, two loan processing officer, two assistant officers and one MIS clerk. The approval officers mainly reject or approve the credit requests. After being checked by the approval officers, the credit requests go to the processing officers for further processing of the application.

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ATM Center
The ATM center ensures smooth operation of the ATM machines that are located at Dhaka, Chittagong and Sylhet. The ATM center is responsible for regular replenishment of the off-site ATMs and servicing of all the ATMs. Currently a total 30 ATMs are in operation. The ATM center also deals with issuance, termination and servicing of the ATM cards. Basically, the ATM center is the department that is solely responsible for all the activities related to ATM and is the facilitating department that enables customers 24 hour banking support.

ATB center
ATB refers to Automated Tele Banking. This department deals with the back office servicing of the HSBC phone banking services provided to customers. This department is basically responsible for the activation of ATB, ATB pin generation, and ATB security management, ATB blocking and troubleshooting of all ATB

problems. Currently this department is staffed with one executive and an officer.

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Work Experience at HSBC:

Headquartered in London, HSBC is considered as one of the largest banking and financial services organization in the world. In Bangladesh it has made its place as the fastest growing bank. Being able to work as an intern in this world-renowned organization I find myself lucky. I got the opportunity to work in one of the most vital department of HSBC - Customer Services Department. In the following section, the products of HSBC are described briefly:

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Personal Banking Products:

The personal banking division of HSBC has designed various assets products to meet the needs of individual customers. These are various loans and consumer credit schemes that satisfy and fulfill some basic purchase purpose of the individual customers. These products are described in the following sections. Loans and Credit: Personal Credit offered by HSBC are: 1. Personal Installment Loan 2. Car Loan 3. Home Loan 4. Personal Secured Loan 5. Personal Secured Credit 6. Credit card Personal Installment Loan is an any purpose loan. It has been categorized into the following: i) ii) iii) iv) Professional Loan Lifestyle Loan Furniture Loan Festival Loan 27

The following loans with different benefits are also available under Personal Installment Loan: v) vi) vii) Travel Loan Student Loan CNG Conversion Loan

Types of Accounts Maintained by HSBC:

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Current Account
This is also a depository account basically designed for various customers. This is a non interest bearing account and the features of this account are as follows: Opening balance Tk 50,000 Average balance that should be maintained: Tk 50,000 No restrictions on number of Transactions No yearly ledger fee Noninterest bearing Free ATM card and phone banking service Can be opened only by: o Individuals (joint or single) o Proprietorship companies o Partnership companies o Limited Companies o Liason offices o NGOs Documentation needed: various kinds of documents are needed for the companies such as memorandum of

association, board resolution, etc. however the requirements for individuals are same as the savings account.

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Savings Account:
This is a depository account basically designed for small-scale savers. This is an interest bearing account and the features of this account are as follows: Opening balance Tk 25,000 Average balance that should be maintained: Tk 25,000 Interest bearing (from 4% - 5.25%). One of the unique features of HSBC savings account is that interest is calculated on daily outstanding balance and is credit to customers account every six months. Restrictions on number of Transactions No yearly ledger fee Free ATM card and phone banking service Can be opened only by Bangladesh and dual citizens in single or joint names. Documentation required to open the account: two pp-size photographs, filled account opening form photocopy of passport copy or voter Id Card & check/cash of Tk 25,000.

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Short Term Deposit (STD):

These accounts are opened mostly by the organizations.

Organizations normally maintain current accounts in the banks. They need to transact bulk amount regularly thats why, current account fits with their requirements. As current accounts do not provide any interests and as the organizations cannot have savings account, they are deprived of earning any interest despite having huge deposit in their accounts. Short-term deposit accounts enable them to earn interests from their accounts. These kinds of accounts share some properties of both current and savings accounts. The account provides interests, which are like the savings accounts, and the holder can withdraw any amount any time from his account, which is a property of the current account. Individuals especially, businessmen maintain such accounts.

4.1.5

Fixed Deposit:

It is also known as term deposits. These deposits are made in the bank for a fixed period of time. This period of time should be specified in advance. The bank needs not maintain cash reserves 31

against these deposits & therefore, it offers interest rates that are higher than the savings accounts.

Residents Foreign Currency Current accounts

BD nationals residing abroad open this account. Foreign nationals residing abroad or in Bangladesh, Foreign firms registered abroad, Bangladeshis working in multinationals at Bangladesh and receiving salary in FC can also open such account. The account is non-interest bearing and there are various kinds of restrictions for withdrawals and deposits. The account can be maintained in Euro (EUR), Pound Sterling (GBP) and US Dollar (USD).

Non-resident foreign currency accounts

These are time deposit interest bearing accounts. All non-resident Bangladeshi nationals can open them, persons having dual

citizenship, shipping staffs, etc. they can be maintained in EUR, GBP & USD currencies. These accounts are strictly monitored by the central bank and restrictions exist for these accounts.

Resident foreign currency deposit accounts

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Balances in these accounts are freely transferable abroad without any restriction from Bangladesh bank. Resident Bangladeshis returning from abroad can open this account within one month of his/her return.

Other accounts
There are various other accounts that are created to meet customer demands and requirement. Such accounts are customized and restrictions on these accounts are subject to change.

Services Offered to these Accounts:

Wide ranges of services are offered to the customers who hold these accounts. Some such services are: cheque Free ATM Card, check book & phone banking service Cheque /cash deposits Standing instruction Quarterly/monthly / yearly statement of account Foreign currency Endorsement against travel quota and sale of Travelers cheques (Thomas Cook). 33

Issue of Solvency/Bank certificate Payment orders, demand drafts, Telegraphic transfers. Inward and outward funds transfer and receiving.

Some unique services are also provided to customers using HSBC accounts. These services are Phone Banking, Self Service Banking & Power vantage Scheme.

HSBC BANK STRATEGIC ANALYSIS

Introduction It is undeniable that the competition in the business world is very demanding and vigorous. In order for different organization to compete effectively and successfully such companies must be able to use strategic management approach. Accordingly, various management approaches are guiding industries relative to the opportunities and challenges which appears within the contingent business environment. The strategy and the

management methods of each company are accountable for sustaining and maintaining the strengths and survival of the organizations. One of the responsibilities of the management systems implement in an organization is to be able to achieve the organizational goal of the organization. Principally, the main objective of this paper is to conduct a strategic analysis of an organization. In this report, different marketing tools will be used including

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PESTLE and Porters Five Forces Analysis. This paper will also analyse the competitors of HSBC using SWOT Analysis. Overview of HSBC Bank HSBC is known as one of the largest financial and banking services industries in the global environment. The company is headquartered in London and has an international networks which composes of over 10, 000 offices in more than 82 states and territories within Asia-Pacific Region, Europe, United States of America, Africa and Middle East. HSBC Holdings Plc are regarded to have around 200,000 shareholders in over 100 nations as noted in listings in countries like New York, Bermuda, Paris and Hong Kong. Because of the global network connects by the implementation of advances technology like the internet and information communication technology, the company has been able to provide an intensive range and reach of financial services which includes commercial banking, investment banking and market personal financial services, and other banking and financial products and services. The business philosophy of HSBC gives important to values and principles in all aspects of everyday living.

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Strategies used by HSBC In order to compete successfully and reach competitive advantage, HSBC has been able to use different strategies. One of the strategies used by HSBC is the managing for Growth strategy. Such strategy enables the company to grow and develop even more. The strategy has been able to build the strengths of the company and adheres with the areas which are in need of further enhancement. Since the main objective of the company is to be the leader in financial services sectors, the company uses strategy that strives to protect and sustain a leading position among their target market. HSBC has also been able to use a strategic human resource management which provides intensive and comprehensive values among their employees. For the company, an organisation that has employees who are productive and highly motivated will help them reach their organisational goal. In addition, the company also applies customer relationship management approach so as to 36

maintain good relation among their target all over the world. The objective of using CRM is to make sure that the company is always adhering to the needs and demands of the customers. Through the use of the information technology, specifically the internet, the company has been able to reach different customers from al over the globe and provide them quality and satisfactory products and services. The company also uses strategic management to ensure that all their business practice will enable them to have a competitive advantage in both local and international market. HSBC is aware that having good reputation in the marketplace helps the company in becoming more appealing in their target market. With this, part of their strategy is to implement a corporate social responsibility which will is recognises its accountabilities within the society, The company sees to it that they are always aspired with the highest principles of conducts. The strategy of HSBC gives emphasis on four customer groups. These include, Private Banking, Personal Financial Services, Commercial Banking, and Corporate, Investment Banking and Markets. In order to make sure that the specific needs and demands of these customers and clients, the company also uses different strategy for each customer groups. The management of HSBC perceived that by effectively managing its internal and external reports for each customer segments, customer satisfaction will be achieved. Branding is also considered as one of the most important strategy utilised by HSBC. With its brand reaching customers all over the globe, the company has been 37

able to maintain it competitive and leadership position in the global business environment.

Analysis Using Different Marketing Tools As mentioned above, HSBC will be analysed using some marketing tools. In this regard, the company will be analysed using PESTLE Analysis and Porters Five Forces Model. PESTLE Analysis Political Aspects HSBC Banking has been protected by the regulations and policies formulated by different government in the countries where they are operating. The company has been able to adhere to the policies given by each government to make sure that the company will be able to conduct business operations successfully and effectively. Furthermore, the company also formulates their own protection strategies against any governmental restrictions and limitations.

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Economic Aspect Being the worlds largest and competitive industry in terms of banking and finance, HSBC, is said to have a stable and successful economic stability. In spite of many dangers that they encounter in different parts of the world, the management of HSBC sees to it that they would be able to surpass such struggles and strives to have a better economic condition.

Social Aspect HSBC is being affected by the situation of the society in which they are operating. Along with this, HSBC tries harder to make sure that each society is given equal chances to take advantage of the resources given by the organisation. The company adheres to having good reputation and relations in the society that they belong.

Technological Aspect The emergence of information technology and internet affects how HSBC has been operating in the past years. The company adopts different IT/IS systems and used internet to reach their customer all over the world and to know the latest trends in the global business. Aside from these, the company also uses facilities which helps them improved their productions and operations.

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Legal Aspects The policies and regulations provided by the government, both local and international allow the company to be more cautious in their business actions. To avoid problems in line with their business practice, the company sees to it that all their actions are legal and aspired to highest standards.

Environmental Aspects Environmental protection is one of the most essential aspects to be considered by many businesses. If an organisation will not be able to consider the environment in their actions, there is a possibility of facing problems within the society. In this regard, HSBC develops environmental protection strategies to adhere to this worldwide need. In addition, the company are always trying to join in environmental protection campaign by sponsoring some organisations having this type of advocacy. Porters Five Forces Analysis Porters Five Forces Analysis highlights the aspects in the external environment of an organisation. These factors have the ability to affect different organisations in terms of competing (Porter, 1980). Accordingly, these forces has been defined as factors that drive competition, making sure that the competitive business will be generated by the interaction of five 40

various factors on a firm. These factors include rivalry among industries, buying power of the customers, supplier power, the possible threats of new entrants and the threat for substitute products or services within the market. By merely understanding the context of each force, enables the company to have important insights that will drive them to implement effective strategies to outgrow their competitors.

Force 1: The Intensity of Rivalry It is said that HSBC has many rivals in the banking and financial sectors. The degree of rivalries among these firms enables HSBC to use efficient strategies to maintain its leadership position in the market. Furthermore, because of the capabilities of other rival companies, HSBC develops strategic plans to make sure that they are always be the number one choice of their customers in banking and finance industries. Force 2: The Threat of Entry With the potentials of having high profits in this kind of industry, HSBC is subject to several threats of market entry. The threats of these new entrants sometimes make or break an organisation like HSBC. In this regard, HSBC has been able to establish some entry barriers to ensure that their competitive advantage. The company also uses strong branding images to make sure that their customers will remain loyal to them.

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Force 3: The Threat of Substitutes HSBC is also aware that their competitors will provide new products and services in the future. The threat that these substitute products gives to HSBCs profitability allows the company to work hard to sustain its position. Through the strategy of HSBC in focusing on four different customer segments, the company has able to provide needs of each customer group which lessen the impact of other substitute products. Force 4: Buyer Power Accordingly, the buyer power is noted to be one of the two important forces which affect the occupation of the value established by an organisation. Herein, the vital determinants of this force include the size as well as the customer concentration. It can be said that HSBC has been able to manage their customers effectively which allows the company to gain customer loyalty and satisfaction. The strategy used by HSBC enables them to become the world leader in banking and financial sector.

Force 5: Supplier Power It is said that supplier power reflects to the buyer power. In this regard, the analysis of this force commonly focuses on the significant size and concentration of suppliers which is also relative to the competitors. It also focuses on the degree of differentiation in the materials being supplied 42

(Porter, 1980). It can be said that HSBC ahs the ability to charge their target markets different prices in accordance with the differences in the price formulated for each of the buyers. This usually implies that the audience is described by high supplier power.

Competitors Analysis (SWOT Analysis) Strengths The strengths of HSBC rival companies include the ability to provide the needs and demands of different customers all over the world. Through the use of information technology, competitors of HSBC may outgrow the company by using all its resources to develop new products and services that will be appealing for the customers. Moreover, the alliances of larger organization may also be considered as one of the strengths of HSBCs competitors. The competitors of HSBC may also have strength in terms of having powerful brand image as well as strong market leadership. Weaknesses One of the weaknesses of the rival companies of HSBC is its lack of resources to sustain their competitive advantage. In addition, rival companies of HSBC may also lack the ability to reach different customers because of

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distance barrier. Poor management systems may also be considered as one of the weaknesses of competitors of HSBC. The rival companies of HSBC may also have weaknesses in terms of having weak marketing approaches and brand image. Some rival companies, like those small enterprises may have weaknesses in gaining customer loyalty.

Opportunities The opportunities of the rival companies of HSBC may include the following. Major productive and favourable market conditions.

Alteration in line with regulatory or competitive market environment

Changes and advancement of technological aspects and enhances buyer/supplier relationship. Threats Rival companies of HSBC are also affected by different market threats. These threats may include the following: Major adverse and unfavourable conditions in an industrys market settings representing obstacles to the companys desire competition position and advantage. 44

 The threats of new entrants or new industries which will compete effectively in the market. The slow growth of the market in which the industry belongs

Rapid technological changes and the existence of new revised policies and government regulations.

Conclusion The marketing environment is without a doubt very complicated system. Companies need to be more considerate of many factors that will have to be integrated based on the trends in the market place. In general, a unique and distinctive strategy is highly adopted by most industries in order to have a competitive advantage in the business environment. There are many ways on how management can construct a certain strategy. This however, needs to be constantly evaluated and updated based on the constant changing market trends. Being the leader of the banking and finance industries, HSBC is said to use different strategies that will meet market needs and demands. Analysis shows that HSBC has outgrown its competitors because of the strategies that they used which adhere to the current situation of the market environment. All in all, it is said that if the company has been able to choose the most

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appropriate strategy, there is a greater possibility of becoming a world leader in any industry,

Findings:
The opening service charge of savings account is higher compared to other banks. The services of the accounts opening section and remittance and clearing section of HSBC Bank are very slow because of the shortage of employees. The number of ATM booths of this bank is not satisfactory. The networking system of HSBC is not so much good. So sometimes clients always have to wait for any transaction. In terms of HSBC, which is a world-class service provider worldwide, but customers are not fully satisfied of their products & services. HSBC deposit schemes are not clear to all customers. Thats why sometimes customers are not interested to opening the deposit scheme.

Recommendations:
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On the basis of findings some recommendations were made which are listed below: Number of employees should be increased in account opening, remittance and clearing section to provide better services which will also save time of the clients. The bank employees should communicate properly with customers about their deposit and other schemes. The opening service charge of savings account should be reduce for the clients. Networking system must have to be improved. So clients will not be wait for any transaction. The number of ATM booth should have to increase for better services. Bank should be more tactful in dealing with the customers and launch new products expectation. that fully meet customer

Conclusion:
HSBC is a global banking and financial services organization headquartered in London. The groups international network

comprises more than 8,000 offices in 80 countries and territories, operating the Asia Pacific region, Europe, USA, and Middle East & Africa. HSBC Group is represented in Bangladesh by its subsidiary bank HSBC, Bangladesh. I got the opportunity to serve this bank as an intern under personal financial department of HSBC Main Branch.

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I was able to witness different procedures and roles that the employees and the customers need to fulfill when they are in the bank. In these three months, I met new people and learned many processes that are being involved inside the bank. My role was to guide the customers in the bank and provide them with the utmost service possible. I also had the opportunity to visit different branches in Dhaka. I also got the scope to interact with customers and reveal their expectations and perceptions about the banks services. During my interaction with customers and the employees that work inside the bank, I felt that somewhere there are gaps between customer expectations and banks services and thus I tried my level best to find out what HSBC lacks as a Bank. I have provided some interesting insight into what kind of service the customers give importance to and what quality service they get from HSBC. It is quite obvious from my experience that the customer requirements are not fully met and they are very dissatisfied with some of the aspects of the bank (location, saving rates, credit services, investment services, etc.). Finally, I would say that this report at HSBC has increased my practical knowledge of Business Administration and made my BBA education more complete and applied. In this report I got the

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opportunity to apply various tools and concepts I learned in my BBA courses. Some such courses were Marketing Management, Services marketing, Consumer Behavior and a few elements from Human Resource Management. Customers are vital for every business. It is not possible to make a profitable business without concerning the customers benefits. HSBC bank has a great potential in the country as a leading global brand. To achieve the desired position in the market, timely improvement in services is essential. The efficiency and

effectiveness in services only in customer service department is not that bank have to be concern. Its a collective responsibility of all the departments. So, all the concern departments should be more prompt and efficient to compete with the challenging opportunities of the future. The executive management also should be

enthusiastic in to the development of administration and operational system as per demand of the age.

References
1. www.hsbc.com.bd 2. www.hsbc.com 3. HSBC Product Book 4. Countrywide publication of HSBC 49

5. HSBC Brief History Book 6. www.dutchbanglabank.com 7. www.standardchartered.com/bd 8. www.basicbanklimited.com 9. Philip Kotler, Marketing Management, 11 th Edition, PrenticeHall. Inc. 10. Wikipedia, the Encyclopedia

11. Exploring Marketing Research, 7th Edition, William G. Zikmund 12. http://www.smh.com.au/ffximage/2007/11/12/hsbc_wide web__470x326,0.jpg 13. http://www.thesecretariat.tv/commercial_character_driv en/hsbcpiggy_spot/HSBC_piggy %20%280%3B00%3B02%3B10%29.jpg 14. http://www.expertbusinesssource.com/articles/blog/126 0000326/20090405/hsbc.jpg 15. http://earlybirds.terapad.com/resources/4470/assets/ima ges/NimaImages/hsbc.JPG

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