Research Korner: Hong Kong Shanghai Banking Corporation

The Marketing Report Of Hong Kong and A Marketing Report Of Hong Kong

Part 1: Marketing Report   Introduction             With the advent of information technology and other kinds of technology, different industries and companies have pave the way for the creation and development of new electronic gadgets and other technological gadgets. With the awareness of the consumer with the latest designs and products, different industries are now joining different exhibits to showcase their latest inventions and discoveries.  Some countries have been able to use this kind of events to help their tourism department to attract more tourists.             In Hong Kong, tourism is known to be the number one sources of income of the entire nation.   This is because of different theme parks, events, festivals, and shopping malls in the country. Primarily, the main goal of this report is to provide a marketing approach for specific events in Hong Kong. In this report, the author will give emphasis on sporting event, specifically the Hong Kong Electronic Fair events in the country.             Type of Event             The event that will be given emphasis is the Hong Kong Electronics Fair. This event was organized by HK Trade Development Council and being held at Hong Kong Convention and Exhibition Centre. This event aims on enabling different electronic industries to showcase their latest products and designs and to make more people be aware of the existence of these innovative products.              Since Hong Kong has long been associated with the electronics business as well as the city continuous to be a leading light in this kind of industry, the Hong Kong government have established this event. The event includes all kinds of assemblies, components, electronic production as well as display technologies.  Hong Kong Electronics Fair is conducted in different seasons like spring and Autumn Seasons. The aim is to help various industries all over the world to reach more target market by introducing their products and services at the fair.             In this event, the section of Product Demo & Launch Pad at the fair is being set to enable the exhibitors to market their latest products or services. The Hong Kong electronic fair is a very distinctive fair which attracts both industries and customers of electronic gadgets alike.   Age of the Event The Hong Kong Trade Development Council has been established in 1966 and since then, the organisation has been able to provide different events to gather industries and customers to see the latest inventions in terms of electronic products and other relevant products and designs. The event has been running for more than a decade and the event is being held for spring or autumn seasons. The 2008 Hong Kong electronic Fair will be the 28th electronic fair held and is expected to attract more industries and customers from various parts of the world.             Target Market             The target market of the organization focuses on local and international visitors who are enthusiasts of the latest electronic products or services. The event has been the largest electronics fair all over Asia and the third largest in the global market. The attendance for the event as said to be steadily increasing annually reaching the capacity of the host of the event. The target market includes industries who will introduce or launch new and innovative products and designs and also customers who are attracted by the products presented.   Market Statistics             The estimated event goer during the exhibits are said to increase every edition.  Every year the event has been able to attract for exhibitors and also more markets from different parts of the world. Accordingly, the market for electronic consumers in the country has been very vibrant. With the mobile subscriber penetration rate closing to 160% as well as the people amenable for adopting the latest technologies, Hong Kong has become a good testing venue for the latest IT innovations. Furthermore, the 7 million people who live in the country also have more than 28 million visitors (according to the last years statistics) and most of these tourists come to shop for the very latest and high quality electronic products and other technologies (Info, 2008).      Table 1 29th Edition Statistical Data : Year No. of Exhibitors Gross Area 2008 2,610 65,117 sq. m.   Pest Analysis             Hong Kong Electronics Fairs will also be analysed through the use of PEST analysis. o   Political             The first aspect to be considered is the political environment of Hong Kong Electronics Fair which concerns the role of the government and its influence in the event. In addition, this also includes the extent to which the political aspects intervene in the economy. The Hong Kong government has been very supportive with different festivals and event since the government knows the significance of these events to their tourism industry. Hong Kong government believes that these industries will be beneficial for the nations; the Hong Kong government is also open for other possibilities of considering the products of different industries which participated in the events.   Economical             The next aspect to be considered is the economic facto. Accordingly, the amount of economic activity in this kind of environment is extremely an important element for any events like Hong Kong.  Whilst assessing the economic environment in which the Electronics Fair operates. The Hong Kong government tries to terminate the level of economic activity to provide positive and friendly environment for this kind of festivals and events. It can be said that Hong Kong economic situation is strong and stable. With this, the country is able to sustain good relation with different vendors and industries of electronic and technology gadgets in the global market. The economic stability of the region has helped the Hong Kong Electronics Fair to have a good economic performance. o   Socio-Cultural             It can be said that social environment is of great importance when being applied to different organisations, and in this case festivals or events like Electronic Fairs. Hong Kong has been considered as one of the Asian regions which is considered to have a strong market for electronic gadgets technological products, it can be said that the Hong Kong electronics Fair have a greater opportunity to grow even more in the global market. The demographic changes and the psychographics of the global market have open more chances for the electronics and technology industry to achieve its goal and mission. o   Technological             Lastly, technological factor has helped in reducing the barriers of entry for other electronic and technologically associated industries. It has also supplemented in the cost of capital in other regions, to enhance the products shown in Hong Kong electronics fair. Through the use of more advanced and efficient technology, Hong Kong electronics fair have been able to provide innovative products and gadgets to meet the needs of their target market.   Marketing Strategy Positioning As of now, visitors or travellers are not only visiting a certain place or events, simply just for fun. Most of them are looking for excitement, and more importantly learning process and most of them are looking for new products and services that would satisfy their needs.  This is one of the reasons why, more and more countries are trying to be the number one choice of the tourists by providing them with exciting and unique travel experiences. The primary market for the said strategy will be local and international industries who want to show and promote their latest technology and electronic products and tourist who become potential customers for the event. The target market includes those individuals who want to have the latest in the electronic industry parents to see live horse racing events.             The said strategy will focus on attracting more industries to join the Hong Kong electronic Fair events and to attract more tourists to witness the exhibitions during the event.  The said offers and services will get the attention of the target market from the said field. On the other hand, it will also have an influence to those technologically attached individuals. Because it will give them a sense of knowledge regarding on what is latest in the electronic market. Tourists are also welcomed as a target markets especially those who came to see the most innovative products and services.  The said marketing plan will be benefited from the trade sector of the country; furthermore, it will also be benefited from the growing tourism industry of Hong Kong.     Communications Strategy             Communication strategy focuses on the entire relationship aspects of the Hong Kong Electronic fair events towards the target market. This can be done by different communication strategies that will mainly focus on communicating and relating with the electronic and technology fair events. It will be done by series of different communication method such as press, advertisement, website, seminars, and other events that are related to the said aspects. In terms of this approach, the use of Integrated Marketing communication strategy will be considered.             Primarily, the aim of communication strategy gives emphasis on the entire relationship to be build by the product to the target audience (Moschis, 1994) .  The approach that will be considered in this market planning is the integrated marketing communication. IMC is known to be an effective approach for coordination the entire message and media used by an organization to collectively impact its perceived product value (Clowe & Baack 2004). Furthermore, this can be used for generating and sustaining close relationship with the target market by controlling efficiently all the information and message sent to them and by objectively encouraging two-way dialogues with their audience. In this regard, the aim of the IMC is to promote the world smartest beach bag through the use of different promotional aspects and the marketing approach to communicate the message of promoting the products to the target audience mentioned above (Moore and Thorson, 1996).             In this regard, advertisement will be conducted to position the Hong Kong electronics fair events product by different video and visits different venues for actual demonstration on the function and use of the electronic gadgets and other products and this will happen via direct relationship. Moreover, another approach is to use print advertisements through newspapers and magazines related to tourism and travel.  And lastly, the use of the internet will be considered as the best way to communicate and reach more consumers through their website. Sales Strategy             The sales strategy focuses on the direct relationship with the industries and customers who are enthusiastic with the new products and designs for the electronic products. This will be done  by  this will be done by process of offering different packages in order to come up with the demand, desire and budget of the HK Electronics Fair events. In addition to that, it will also be important to have a direct relationship with different trade areas in Hong Kong.   Marketing Budget             The advertisement of the entire project focuses on the TV, Newspaper ads, flyers as well as the Internet. Each TV advertisement causes HK$500 dollars per 30 second ad per station. The newspaper ads cost HK$500 per advertisement; furthermore, the flyers cost HK$100, where in HK$0.10 each (Jacksack 2008). Communication Estimated Quantity Estimated Cost Per Unit Estimated Subtotal Flyers 5,000 HK$0.10 HK$500 Television 10 HK$500 HK$50000 Website 1 HK$350 HK$350 Sponsorship 3 HK$300 HK$900 Total     HK$51750               This communication and marketing budget will focus on the relationship of the organization towards the primary market.   SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the Hong Kong, and describes the opportunities and threats facing Hong Kong Electronics Fair   Strengths <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Strong relationships with vendors that offer high-quality and innovative gadgets</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Excellent staff who are highly trained and very customer attentive. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Great venue for clear and efficient exhibit</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> High customer loyalty among repeat customers and industries who go to the event</li> </ul> Weaknesses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%"> Hong Kong electronic fair lacks a clear website that provides the objective of the event </li> <li class="MsoNormal" style="line-height: 200%"> A large marketing budget to develop brand awareness in the area. </li> <li class="MsoNormal" style="line-height: 200%"> The struggle to continually appear to be cutting edge.</li> </ul>   Opportunities <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Growing market in the global market with a significant percentage of the target market still not aware that the event exists </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Increasing sales opportunities in other multinational industries and brands</li> </ul>   Threats <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Competition from international trade and fair events. </li> </ul>     Conclusion             Analysis shows that Hong Kong Electronic fair events should be able to use effective and efficient marketing strategy to position them in both the local and global market. Herein, the Hong Kong Trade and Development Council marketing approach will serve as their competitive edge to establish competitive position in the market. Furthermore, it can also be concluded that although the company has some weaknesses, they are able to make it as a potential factor to stay in the competitive market. This marketing plan is a helpful tool for the company to achieve their vision and mission. In order to market the Hong Kong Electronic fair events in Hong Kong, the government should be able to give importance on the value of these events in the entire HK tourism.   Reference Clowe& Baack (2007) integrated advertising, promotion and marketing communications 3rd edition. Pearson Prentice Hall. Moschis, G 1994. Marketing Strategies for the Mature Market. Quorum Books, Westport, CT. Jacksack, S 2008, Setting a Marketing Budget, Score, viewed 18 October 2008, http://www.score.org/m_pr_11.html Kotler et al (2004). Principle of marketing, the European edition. Moore, J & Thorson, E 1996, Integrated Communication: Synergy of Persuasive, Lawrence Erlbaum Associates, Mahwah, NJ.    Part 2: Marketing Report Portfolio of Festival   Summary             Marketing communication is one of the most important elements to generate target audience and to convey information to them. In this report, different events have been considered and analysed their marketing communication approach. The events include Hong Kong Electronics Fair, Hong Kong Rugby Seven, and Singapore Arts Festival. This paper has been able to provide details about marketing communication and how this can help an event to become successful. Analysis of the marketing communication of the three events has been considered and it shows that the three have been able to use different marketing communication approach and have different objectives in doing so. The Hong Kong Electronics fair objective was to attract tourists and electronic and gadget enthusiasts and to provide information and the latest electronic and technological products and services while the Hong Kong Rugby Seven, aims of attracting sports enthusiasts to visit Hong Kong and be part of the exciting tournament.             Singapore Arts festival campaign aims on promoting awareness on the cultural and arts elements of the nation not only in the local but also international level.  By and large, it can be concluded that marketing communication approach is important to convey important message to the people.   Introduction Marketing Communication has always been one of the key points to an enterprise’s success; how the products or services are being portrayed through the ads are very likely to help affect the sales rates. The aims of Marketing Communication are to convince consumers to use their products, to give them an alternative or convince them to change their current products, and to increase the company’s sales profits. Because of this, financial success is the goal of Marketing Communication, and it may be achieved through an equally successful persuasive ads.  According to Shimp (2003), there is ample evidence that the century-long domination in marketing communications by mass media advertising and advertising agencies is coming to an end. Marketing budgets are being shifted away from traditional advertising to behavior-oriented disciplines like consumer promotion, direct marketing, and direct-response advertising. Retailers are gaining strength over manufacturers New media technologies are increasing the fragmentation of media usage. On the other hand, prime-time television, long the main channel for mass campaigns, has had its audience diminish from 90 percent to 68 percent in the last 20 years (Griffin & Mcarthur, 1997). Every company is inevitably cast into the role of communicator and promoter. For most companies, the question is not whether to communicate but rather what to say, to whom, and how often. It has been noted that marketing communication is like a coin which has two sides. The first side of marketing communication is concerned with efficiently and effectively giving information and details about the company and the products or services to a chose market segments. However, in isolation, what to say and to whom this will be told can be nothing more than a risky second-guessing regarding the allegiances and interests of other individuals. The second face of marketing communication is the inquiry. This side of the marketing communication task gives emphasis with learning from other people regarding the values and interests, and eventually relating this to the interests of the personnel working in the organisation. Such process should logically precede the promotion of a specific standpoint in terms of product desirability and relevant consumer satisfaction (Fill, 2002 Eventually, several companies began to go beyond conventional practice and used other promotional specialists to improve and implement their market plans. Primary, the main goal of this report is to compare and analyse the strategic effectiveness of the marketing communications strategy used by different events or festivals in various countries.  For this report, the sport events that will be analysed are the recent Hong Kong Electronics Fair, Hong Kong Rugby Seven, and Singapore Arts Festival. In this report, the marketing communication of each of the events will be given emphasis.   Overview of Marketing Communication It is said that each and every organisation, may it be public, private or non-profit organisation should be able to consider strategic marketing approach so as to ensure competitive position in the marketplace (Moschis, 1994). One of the most important aspects of marketing is marketing communications (See Appendix 1). It is significant because it enables an industry to communicate effectively and efficiently with their target market.  Marketing communications is the term generally preferred to promotions. It is a vital contributor to the satisfaction of customer needs and wants. As such, it is essential that managers have an understanding of the factors that are involved in the development of strategies that enable organizations to communicate with their consumers (Shimp, 2003), their channel participants and with other stakeholders, such that those relationships may be developed over the long term. Every company is inevitably cast into the role of communicator and promoter. For most companies, the question is not whether to communicate but rather what to say, to whom, and how often. It has been noted that marketing communication is like a coin which has two sides. The first side of marketing communication is concerned with efficiently and effectively giving information and details about the company and the products or services to a chose market segments. However, in isolation, what to say and to whom this will be told can be nothing more than a risky second-guessing regarding the allegiances and interests of other individuals. The second face of marketing communication is the inquiry. This side of the marketing communication task gives emphasis with learning from other people regarding the values and interests, and eventually relating this to the interests of the personnel working in the organisation. Such process should logically precede the promotion of a specific standpoint in terms of product desirability and relevant consumer satisfaction (Fill, 2002) The overall result of this effort is intended to be the positioning of the provider as an efficient preferred source of solutions to problems experienced by people as buyers and consumers. This is the managerial aim in managing marketing communication. The challenge is to ensure that expressive communicative activity is clear, consistent, and coherent, while also enabling and facilitating impressive communicative activity that aids judgement and decision-making. Marketing communication is widening in scope to embrace the idea that healthy relationships between customers and suppliers are the basis for the prosperity of each. Expectations are growing for authentic communication as part of a stakeholder relationship based on trust and commitment of core benefits to users and consumers so must be differentiated through benefit augmentation to attract buyer and consumer attention when promoted (Clow & Baack, 2004).   Comparison Analysis Overview of the Electronic Events             Hong Kong Electronics Fair has been conducted to facilitate exhibits of the new electronic and technology products and designs from different industries and multinationals. It caters to the needs of the customers to know the latest and the most innovative products and services a company can offer. Throughout the years, the event was being held and each year new companies are joining the event showing and demonstrating their products and designs at the fair. Since there are more people who are purchasing and utilising electronics, the interest in these products is reflected in the growth of the Hong Kong Electronics Fair. Every year is considered a bigger event, having to expand their venue into the adjacent building so as to accommodate guests, exhibitors and spectators.             In order to attract more vendors and industries to show their new and latest products, the Hong Kong Electronics Fair events facilitators are using an efficient marketing communication.  By implementing integrated communication more effectively, any firm may gain advantage by offering its product or service that is cost effective as compared to other products or service in the market. So the writers or speakers in any business organization may gain competitive advantage over its competitors by using effective business communication techniques as if they are differentiated from their competitors by offering their target market something unique and different that is of more value. So the business communication is more related to the concept of rhetoric which is treated as a discipline that concentrates on effective communication in oral, written and print media that places the audience at the center of communication activity.   Herein, the event is using print advertisements, media and internet advertisement to announce when the event will be held. Through their official websites, people and industries can see the agenda of the event including the schedules.             It can be said that during the fair, most of the exhibitors of the events are using personal selling approach. Sales are an important part of any commercial transaction. The most common approach to personal selling pertains to a systematic process of continuous yet measurable methods in which the person selling describes his offered products or services in such a way that the buyer will be able to visualize how to benefit from the offered products or services in an economic way. Selling is basically a part of the implementation procedures of marketing.  It often forms a particular grouping within a corporate structure, employing independent specialist operatives known as salesmen (Berger, Demsetz & Strahan 1999). The continued interrogation in order to understand a consumer’s goal as well as the establishment of a set of feasible solutions by conveying the necessary information that convinces a buyer to achieve his goal at a reasonable cost is the main responsibility of the sales person. On the other hand, the main objective of professional sales is to be able to know the needs and satisfy the wants of consumers effectively, and therefore convert possible customers into actual and reliable ones. Some of the distinct advantages of personal selling include the immediate access to feedback, the persuasive nature of the endeavours, the option of choosing a target audience for the sales person, and its capability to give detailed information. For some scholars, personal selling is a one to one communication with potential customers of a specific product or services with the intention of making a sale.  In Business to business marketing communication, the concept of personal selling is considered essential. Through the aspect of personal selling, it enables the marketers that the entire campaign element has been integrated in order to achieve the desirable marketing communication objectives. Consumer does not separate or divide advertising, sales promotion, sponsorship and internet as marketing communications techniques. They tend to receive the messages from various sources and build-up either favourable or unfavourable images a certain products or services.  As far as they are concerned, the source of the message is unimportant. What they will be concerned with is the content of the message and to what degree the product promise is actually delivered (Fill & Yeshin, 2001).             In addition, the use of effective communication plays a critical role in the Hong Kong Electronics Fait n in a way that it gives the opportunity for the product to sustain its marketability. The application of integrated marketing tools can enable the sellers or marketers to communicate with the other target segment. For instance because of the increasing popularity of the world wide web, each company that invests in having their own website will have the chance to reach consumers locally and internationally. This means that the reach of the product are also extended and expanded in the global market, through the use of integration of effective marketing communication approach. With this, products of different company in the Hong Kong Electronics Fair will be able to emerge quickly in the marketplace since the tools and approaches of integrated Business to business marketing communication will act as shop window for many businesses today. In addition, through personally selling integrated with it, this will also permit the clients to easily know important information about a specific product and to know the different features a specific product.  In addition, the effective marketing communication is also important in impacting the product since this will served as a marketing communication approach for effectively promoting the new electronic and technology products and services, which will aim to result in a more sales from other distribution channels.                The rationale for choosing this marketing channel is that Integrated marketing communication can help products to meet target consumers worldwide and this could be a great opportunity to be developed and in order for product to be quickly recognized by the target market.     Overview of the Sports Event             Rugby sevens is a variety of rugby union in which football is played with only seven players per side feature instead of the full 15.  The Hong Kong Sevens have been established in 1976. It has been suggested that Rugby Sevens tournament will be logistically more possible and be a better spectacle than a 15-a side tournament. Accordingly, the Hong Kong Sevens Tournament has been noted to have a good history. This is now considered the iRB’s Jewel in the Crow in the series and has been able to grow in popularity with the spectators and players alike. The marketing communication approach of this sporting event aims on telling the importance and the logistical reason for choosing Rugby Sevens tournament.  The marketing communication approach features various promotional activities to reach target audiences from local and global market. They consider media through TV and radio advertisements, print advertisements through sports magazines and newspapers and interactive approach through mobile, online or the internet throught he official website of the Rugby Sevens which is http://www.hksevens.com.             The main goal is to target younger market through high-profile websites like and other social networking sites and the mobile activity. This marketing communication approach has used their official website to promote the tournament all over the world to spectators and players as well.             With the success of the of the Rugby Sevens tournament host in Hong Kong, it can be said that the marketing campaign and communication through the help of their website and other sponsors has been successful and effective. Through the marketing communication strategy of Hong Kong Rugby Sevens they are able to relay the messages to the public. Accordingly, it can be said that HK Rugby Sevens has been able to use integrated marketing communication approach to reach target audiences in both local and global market. The IMC approach has been effective for campaigning Hong Kong Rugby Sevens as it helps in identifying the most useful and appropriate methods in communicating and establishing good customer relations, including good relationships with stakeholders like the sponsors of the Hong Kong Rugby Sevens like major brands such as Adidas and other brands. By and large, it can be said that Hong Kong Rugby Sevens has been successful in generating income and turnover through their comprehensive marketing communication approach.   Overview of the Cultural Events             The cultural event that will be given attention in this report is Singapore Arts Festival. The Singapore Arts Festival is considered as focus programmes for the Singaporean culture so as to provide a broad range of art programmes from all different parts of the world.  This festival has been an essential symbol for the Singaporean culture.  The festival has been able to introduce various entertaining and exciting programmes locally, nationally and internationally produces to the people of Singaporean, and it has been able to stimulate the interest of the people in terms of arts to raise the level of appreciation.             The Singapore Arts Festival started in 1977 as a national arts festival that celebrates local arts activity of the country’s diverse communities. Throughout the years, Singapore Arts Festival has been able to play a catalytic and symbiotic role in the development for the cultural and artistic life of the nation.  This even has helped in transforming the city’s cultural landscape, turning into one of the major cultural hub today in the entire Asia. The event has impacted the work of artists and creates a growing public demand for the arts, establishing new cultural platforms, events as well as the movements which help in underpinning the lively cultural scene in present Singapore. Today the Singapore Arts festival has been described by an innovative and progressive spirits, committed to commissioning new art works by primarily Asian and Singaporean artists inverting in works which bridges cultures, disciplines, and geographical boundaries which explores contemporary and modern issues related to memory, history, migration and urban living; and discovering the existence and promising artists and encouraging both local and international artistic collaborations and exchanges.             In addition Singaporean Arts Festival, also give emphasis on an extensive programme of free outdoor performances in the entire island to bring the arts tit the doorsteps of Singaporeans. The festival has the ability to the create social network that conveys the process of festival collaborations and cultural dialogues. Accordingly, the marketing communication of the Singapore Arts festival promotes and raises the cultural consciousness of the people from the local and the international market. Aside from this, Singapore Arts Festival also utilise celebrity endorsements by considering famous Artists to participate in the Singapore Arts Festival events. Through the use of an effective marketing communication approach by the Singapore Arts festival, it gives the opportunity to the festival to sustain its marketability and its visibility in the print and media advertisements and also interactive ads through their website. The application of this marketing communication approach enables the Singapore Arts festival to communicate with the other target segment. For instance because of the increasing popularity of the World Wide Web, Singapore Arts Festival have the chance to reach consumers locally and internationally. This means that the reach of the festival are also extended and expanded in the global market through the use of integrated marketing communication.   Conclusion Marketing communication approach is said to have many benefits among different products, organizations, events. Through an effective communication, the message is being relayed to the target audience effectively. Furthermore, this will also permit the clients to easily determine the essential information about the events may it be sporting, community and cultural events.  Analysis shows that each of these events has been able to use unique but effective marketing communication approach. The three events: Hong Kong Electronics Fair, Hong Kong Rugby Sevens and Singapore Arts Festivals have used integrated marketing communication approach to market the events. The three has been able to have successful marketing campaign because of their comprehensive marketing communication approach. Different evernts have decided to set aside traditional approaches and have come to accept the innovative perspectives in promoting their products and services to their target market. Herein, marketing concepts has exceeded from the connotation of being an expense to being a part of the industry’s essential investment; from being product-focused to becoming customer oriented.  The context of both marketing and advertising can be considered as investment because of the potential profit that may emerge upon implementation of such strategies.  Furthermore, instead of emphasizing product attributes, many firms have realized that it is the customer is more important to be given attention for every marketing strategy since the customer are the recipient and the ultimate assessor of the products and services the company provides.  In order to do so, many marketers are able to consider the use of Integrated Marketing Communication (IMC).  By and large, it can be said that the new communication model of integrating personal selling can help different industries to significantly improve marketing communication and help different events and festivals meet their short-term and long-term business objectives and establish stronger relationships with all of their target audiences.     Reference   Berger, A.N., R.S. Demsetz and P.E. Strahan (1999), ‘The consolidation of the financial services industry: causes, consequences, and implications for the future’, Journal of Banking and Finance, 23, 135-194.   Borden, NH 1965, “The Concept of the Marketing Mix,” in Schwartz, G., (Ed.), Science in Marketing, New York: John Willey and Sons, pp. 386-397.   Clow, KE & Baack, D 2004, Integrated advertising, promotion, &marketing communications, 2nd edn, Prentice Hall, Upper Saddle River, NJ   Fill, C and Yeshin T 2001, The Official CIM Course book: Integrated Marketing Communications, Butterworth-Heinemann, Oxford. Fill, C 2002, Marketing Communications: Contexts, Strategies and Applications e. Harlow: Pearson Education. Harris, A, 2006, 'Sporting chance!', Coventry Evening Telegraph (England), Shimp, TA 2000, Advertising Promotion: Supplemental Aspects of Integrated Marketing Communications, 5th edn, The Dryden Press, Harcourt College Publishers, Fort Worth, TX. Shimp, TA 2002, Advertising, Promotional and Supplemental Aspects of Integrated Marketing Communications. The Dryden Press, Harcourt College Publishers, Fort Worth, TX.               Appendices Appendix 1                     Marketing Communication Process Source: Borden, 1965.

The Marketing Report Of Hong Kong and A Marketing Report Of Hong Kong

Part 1: Marketing Report Introduction With the advent of information technology and other kinds of technology, differ...

Industry and Firm Strategy Analysis

Strategy Analysis PART 1 Industry Analysis This paper is an analysis of the Banking Industry in Hong Kong. It discusses the competitiveness of this industry and the critical issues affecting its operation both in the national and the international arena. The Case of Hong Kong Banking Industry Introduction The Banking Industry in Hong Kong is among the leading international financial centers in the Asia Pacific region and the world. It is a market friendly industry with a sound tax system and regulatory framework. The openness to foreign competition and international practices also contributes to the qualities of the industry. In fact, Hong Kong is ninth among the largest international banking centers in the world when it comes to external transactions. More than 100 international insurance companies prefer Hong Kong and seventy six of the world’s top 100 banks also selected the country as the best place to do business in Asia (2002). Generally, the Banking Sector has remained to be attractive for the following factors: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Full Convertibility of the Hong Kong dollar</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Relative Simplicity  and Less complexity of business acquisition in Hong Kong</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Minimum Regulatory Interference from the Government</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Soundness of the Tax System and Regulatory Framework</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The absence of competition legislation and the openness to international practices</li> </ul>   Macro Analysis Hong Kong’s Business Environment has been economically successful since the Second World War. The Gross Domestic Product has consistently grown and envied by most of the developed and developing systems. The rate of unemployment is at low level while the demand for employment is stable (2002). The population has experienced a huge improvement in their standard of living which is often cited as a significant factor for the high level of social stability. The civil service is considered to be the most efficient and non corrupt throughout Asia with the citizens being mostly law abiding. Various political parties support the wide capitalist ethic which dominates the country’s thinking. Trade unions are not very powerful forces and those that existed are mostly moderate and accommodating. The business elite are predominantly Hong Kong Chinese. They favor the tax system, minimal interference of the government and the system focused on making profit. Furthermore, government policies implement a non interventionism policy which is favored by many businesses. The Basic Law in Hong Kong also supports a largely capitalist system. Much of the constitution for Hong Kong is based on guaranteeing its autonomy from the interference of China. It also states that profit, low taxes, low levels of government intervention and the freedom to trade with are guaranteed (2002).  Hong Kong was named by the Heritage Foundation as the “world’s freest economy” attributing its success from its willingness to transform and embrace the forces of globalization. However, its position as a one time center for diverse economic activities has been left only on the finance and service industries. In the wake of the Asian financial crisis, the country realized the difficulty of being a financial center. Like Malaysia, money-men in Hong Kong discovered the vulnerability of their currency reserves and capital investments ( 2002). Its claims to be a world class financial center were in serious threat. Also, mainland China is fast becoming adept in many services which Hong Kong offers. Some analyst claims that Hong Kong will only have a lead time of 10 years before China can offer more attractive option. Primarily, the reduction in business prospects following the Asian financial crisis is due to the high operating costs. The living costs in Hong Kong are higher than anywhere in the United States. It is ranked as the fourth most expensive city in the world (2002). In March 2001, a London-based Hong Kong bank shifted about 1,000 of its jobs to Guangzhou in China until the next three years. This brought shocks to the entire financial service sector (2002). The financial services though asserted that the two cities, Shanghai and Hong Kong are likely to complement each other rather than compete. While retaining its confidence in the financial sector, the city also continues to strive for high quality and potential for growth. In fact, there were efforts to improve the infrastructure of the financial sector through reform and increase in the depth and breadth of the market. There were also reviews undertaken on the debt issuing mechanisms and the simplification of the procedures. The industry undergone liberalization and reform with the final phases of the rate deregulation expected to be completed by 2014 (2002). Another critical problem of Hong Kong banking industry is the shortage of qualified and high skilled human resources. Despite its high tech image, Hong Kong lacks quality professionals to back it up. Sydney which has shown a promise in the financial sector has a clear advantage to Hong Kong in terms of its high skilled workforce (2002). The key strength that moves Australia is the strong supply of skilled workers. By the end of the day the up front cost is still embedded in the workforce despite the favorable tax system. Businesses are less likely to make a profit to be taxed on as long as this problem remains. The industry must also consider the changing demands of the customers and the need to produce new products, better channels and more responsive services. The change in technology helps various financial institutions to introduce and manage new products and services. There is the growing trend towards information technology in the critical factors of the competition such as costs, service quality and price. Information Technology is an aspect of the industry which is considered to be critical. It helps improve the quality and the value added to the products and services. However, the cause of IT systems is too huge to be afforded. Banks can share the costs associated with this through merging with other companies. The past decade has shown an increase in this kind of investment in Hong Kong and is expected that more overseas companies will invest in the country. PESTEL Analysis Political Factors <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Policy of Non Interventionism</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Autonomy from People’s Republic of China </li> </ul> Economic Factors <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Increased in the GDP</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sound tax system </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Low unemployment rate and buoyant demand in employment </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> High Operating Costs </li> </ul> Social Factors <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Entrepreneurial Drive of the people </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> High Level of Social Stability</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Increase in the Standard of Living </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Shortage in Qualified Human Resources </li> </ul> Technological Factors <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> High Technology Projects</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The use of Information Technology in various aspects of the industry  </li> </ul> Legal Factors <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Minimum government intervention </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sound legal and regulatory framework</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Liberalization and reform in the financial infrastructure </li> </ul> Five Forces Analysis             In any industry, the rules of competition are governed by five competitive forces. These forces determine the ability of the industry to become more attractive than others. Potential Entrants             Potential entrants enjoy the simple and less complex way of acquiring business in Hong Kong. The financial industry being a premier center has been a market friendly and open market for competitors. This is proven by the number of international financial services operating in the country Competitive Rivalry Towards the end of 1999, there are around 156 licensed banks and 288 financial institutions in the country making it the highest in the world. Seventy six of the 100 largest banks in the world operate in Hong Kong. More than 100 international insurance companies prefer Hong Kong and seventy six of the world’s top 100 banks also selected the country as the best place to do business in Asia. Substitutes The customers’ transfer from small and medium sized banks to more reputable institutions such as the Hong Kong Shanghai Banking Corporation (HSBC), Citibank and Standard Chartered Bank. Bargaining power of Buyers Customers’ demands are changing and requiring the industry tom produce new products, better channels and more responsive services. The financial sector is compelled to follow the lead of other industries in improving their service standards. Bargaining power of Suppliers             Hong Kong is suffering from the shortage of qualified human resources. The gap is filled through imports from Mainland China. Of the abovementioned forces, the degree of rivalry is the most obvious in the banking industry. The number of licensed banks and financial institutions operating in the country indicates the stiff competition in the financial sector. Also, the openness has resulted to fewer barriers for foreign investors and new entrants. In this case, the market becomes more accessible to new entrants which in turn increase the degree of rivalry. As a matter of fact more than 50% of the largest banks in the world already have their operations in the country. Banks compete rigorously in terms of prices, customer convenience and their reputation. Evaluation of Findings             The Banking Industry retains its position as the premier financial centers in the world. The characteristics of the market and the business environment are the primary reasons why this sector is attractive to foreign investors. However, it is susceptible to competition from countries such as China, Singapore and Sydney. China for one is catching up by providing the services which Hong Kong offers. The relatively lower operating costs in China provide more alternatives for businesses. In addition to this, the shortage in the human resources is filled through imports from mainland China. The industry and the whole country in general lacks with qualified professionals. This weak area of Hong Kong is considered to be the key strength of Sydney, a promising financial center. These concerns affect the ability of the banking industry to maintain and strengthen its position in the international financial sector. As time progresses, the environment in the financial services will get tougher particularly in the international arena. Hong Kong being the leading center has the most to lose. In order to maintain its position, the infrastructures of the financial sector must be reformed and increased in scope. The government must take the necessary measure to simplify the procedures relating to debt issuing mechanisms. Lastly, the Asian economic crisis has changed the competitive landscape of the banking sector. Since 1997, the licensed banks are reduced by about 17 %. As the customers worry about the stability of financial institutions during the crisis, they have transferred to more reputable institutions such as the HSBC, Citibank and Standard Chartered Bank (2000). With this, small and medium sized banks find it hard to survive the competition. Even with the recovery of the economy, there remains to be a weak demand for domestic credits. As a result, banks need to write off bad loans, improve services and invest in the development of products, technology and skills to compete with more established banks. Generally, the banking industry has undergone rapid changes. Among the factors influencing competition are technology advancements, regulatory requirements, high skilled work force and quality products and services. This intense competition can be survived by the banks by improving the quality of their services. Conclusion Hong Kong’s openness to foreign competition and international practices has paved the way for greater opportunities particularly in the banking sector. Foreign investors favor the clarity of policies, financial reforms and liberalization in the industry. Even so banking industry must focus on its weak areas to maintain its position and remain competitive in the international scene. Among the global competitors of Hong Kong are Singapore, China and Sydney. Though the Hong Kong banking industry has marked its position in the international scene, it must strengthen its weak point to remain attractive for investors. High skilled workers are clearly the disadvantage of Hong Kong from its foreign rivals. Aside from this, there is also the high operating costs which reduces the business prospects. Ultimately, the ability to satisfy the needs of the customers will determine the competitiveness of the industry and every bank participating in it. The industry can move into a more competitive landscape by improving the quality of its services and adopting technological advancements. The reform and liberalization of the financial structures is also a viable option.     Recommendations <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The reduction of operating costs will help the industry to regain business prospects it has lost. In 2001, a London based bank shifted its jobs to China. This illustrates the tendency of financial investors to transfer their operation in countries with fewer costs</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The lack and shortage of highly skilled professional has been a critical problem. Other financial centers have taken advantage of this weak area such as Sydney. The government must  implement measures to improve the quality of education and produce qualified professionals</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The increase in competition also requires improvement in the service standards. Banks and financial institutions must continue to produce products, services and better channels to meet the changing demands of the customers. They must  focus on the particular area of ‘service quality’ and ‘customer care’</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Existing employees must be trained continuously to provide the services which the customers want. The industry must be attentive in providing the needs of the customers in order to attract and retain them. They can implement initiatives to improve the quality of performance among their employees. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Technology advancements must be used to facilitate new products and services. Information technology must be utilized to change the significant aspects of competition which includes costs, price and quality of services. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Banks can resort to Mergers for significant savings in adopting information technology. Financial institutions must compete in the changing environment through their IT systems. The integration of IT can be done though mergers</li> </ul>       PART 2 – FIRM ANALYSIS This paper is an analysis of the Hong Kong and Shanghai Banking Corporation. It discusses the competitiveness of the bank and the factors that contributes to its success as a banking and financial service company The Case of Hong Kong and Shanghai Banking Corporation (HSBC) Introduction HSBC is one of the largest banking and financial services worldwide. The HSBC Group started in Hong Kong around 140 years ago and the Special Administrative Region remains one of its key markets and operating centers at present. The Hong Kong and Shanghai Banking Corporation Limited is established in Hong Kong in March 1865 and in Shanghai a month later. It is the founding member of the HSBC Group and serves as the Group’s flagship in the Asia Pacific region. Known as Wayfoong which means the ‘focus of wealth’ or ‘abundance of remittances’, the bank is one of the three note issuing banks of Hong Kong which accounts for at least 65.2 %of its bank notes. HSBC holds a distinctive position in the banking sphere of Hong Kong. Aside from the bulk of note issues, it has some attributes which are associated with a ‘central bank’. It serves as a banker to the government and other banks though not in exclusive terms. At some occasions, it also acts as lender of the last option. There are no statutory obligations for the HSBC to perform these functions and its quasi-central bank qualities are not sought after but came naturally towards becoming the largest operating bank in the country (Pui-Tak & Faure, 2004, p.200).   Its main subsidiaries: Hang Seng Bank Limited (62.14 % owned)       HSBC Investments (Hong Kong) HSBC Bank Australia Limited                                           Limited HSBC Broking Services (Asia) Limited               HSBC Private Equity (Asia) HSBC Insurance (Asia Pacific)                                               Limited Holdings Limited                                          HSBC Trustee (Hong Kong) Limited                    Source: The HSBC Group in the Hong Kong Special Administrative Region (SAR) 2006 The bank including its subsidiaries has more than 600 branches and offices in 20 countries and territories in the Asia Pacific and 20 in five other countries all over the world. They employ at least 50, 800 staff. HSBC Limited is wholly owned by the HSBC Holdings plc of the HSBC Group. As one of the largest banking organization, it has around 9,500 offices in 76 countries serving 125 million customers with a total of e customer base of 2 million. The HSBC Group is one of the major users of Information technology with a yearly spending of US$4.4 billion. The e-business includes the internet, PC banking and telephone banking through fixed phones and mobile phones. HSBC has its own telecommunication network which is one of the largest in the world. This network is used in delivering IT services to the customers and employees worldwide. During the first half of 2006, at least 900 million visits are recorded on its website. Its services: Personal Financial Services             HSBC offers a wide range of personal financial management services to at least 4 million personal customers in Hong Kong. The services include multicurrency savings and current accounts, mortgages, hire purchase and leasing for motor vehicles, credit cards and loans. Customers are also given access to insurance products wh9ich includes life, health, home, hospital and travel insurances. The financial team helps the customers in planning their financial needs such as education, retirement and estate. Commercial Banking             HSBC provides financial services to small and medium sized enterprises. The services offered include multi currency business accounts, payment and cash management, insurance, trade services and borrowing solutions. It has business banking branches that covers key commercial centers and a multi channel service to make the service convenient for the clients. Automated banking terminals are available in key areas to allow 24 hour access to cheque deposits and cash transactions. Corporate, Investment Banking and Markets             HSBC provides a wide range of services to corporate and institutional customers within Asia. It promotes long term relationships with the clients based on the global knowledge and expertise of the Group. This division is composed of three business line: Global Banking, Global Markets and Global Transaction Banking. Private Banking             HSBC provides private banking for its clients to protect their wealth. Aside from the investment and management solutions, it also offer wealth planning including inheritance and succession planning Organizational Culture             HSBC is highly committed to standards of corporate behavior which is central to its strategy. Its core values focus on the long term ethical relationships with the clients, high productivity through cooperation, a sense of excellence, international in outlook and customer focused. The strategic plan also involves the corporate social responsibility. HSBC continue to commit itself to high standards of conduct and its obligations in the society. The groups’ CSR policies are focused on education and environment which is the primary recipients of their charitable activities.             The growth ambitions centers on the four groups of customers. These comprises of the personal financial services, commercial banking, corporate and investment banking. Specific strategies are developed for each of the area. The customer focus is reinforced by organizing the internal and external reporting around the customer groups.             The competitive positioning of HSBC is accomplished by introducing skills and practices from the leading retailing businesses world wide. The integration is increased with more skills sharing and technology transfer to enhance its existing activities. The key elements in achieving its objectives is to accelerate the growth rate of revenue, develop brand strategies, increase productivity and maintain the risk management and the strong position in the financial services. The development of staff skills is a critical factor and is necessary to ensure that they contribute to the success of the Group. Employees who contribute to the achievement of corporate goals are rewarded. Strategic Plan The vision of the Group remains constant: HSBC aims to be premier financial service company worldwide. To be ‘leading’ means being preferred, admired and recognized for providing the customers with a fair deal. The main goal of the strategy is to guarantee that the shareholders get better returns from the banks than they would have in any financial service company.  The sustainable success includes the addressing the needs of the customers, colleagues and those representing the interests of different communities. By the end of 2003, HSBC launched a strategic plan which serves as a blueprint for growth and development until the year 2008. The strategy is evolutionary and builds on the key strengths of HSBC. More so, it addresses the areas which need further improvement. Strategic Imperatives: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To become one of the leading brands for customer experience and corporate social responsibility</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To be the strongest global player in personal financial services by driving growth in key markets, expanding businesses with existing clients and penetrating new ones </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To make the most of the international customer base by promoting efficient customer relationship and management</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To speed up growth with the enhancement of the capital market </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To serve the individual and family clients all over the world </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To develop and motivate employees by rewarding success</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To concentrate in increasing the earnings at a favorable rate. It will also focus on investing technology, its people and brands to support the future value of the company</li> </ul> Value Chain Analysis Primary Activities Inbound Logistics <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> HSBC promotes the manufacture and use of environment friendly products. It directly influences the environmental impacts of its suppliers. </li> </ul> Operations <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Operating as the number of local banks all over the world. It operates on 10,000 offices in 82 countries in Europe, Asia Pacific region, America, Middle East and Africa. </li> </ul> Outbound Logistics <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Processing work is offshore to lower costs economies in order to decrease the costs associated with the services provided in developed countries. </li> </ul> Marketing and Sales <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The HSBC brand and the hexagon symbol are adopted in all markets where it operates to enhance the recognition of the group by the customers, stakeholders and employees all over the world. </li> </ul> Service <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> HSBC provides a wide range of financial services which includes business and commercial banking, investment banking and personal banking.</li> </ul> Support Activities Procurement <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The procurement network consists of 430 people in 56 countries and territories. The suppliers range from multinationals to small local businesses. E procurement systems are also utilized to accommodate both the local and global business needs </li> </ul> Technology Development <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The largest expenditure is on the Information and Technology equipments and services. Its e commerce capabilities are rapidly increasing. It has invested in Sparkice Inc. which will develop the online trade finance, payments and insurance services in the business-to-business website of the company. Human Resource Management</li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The company acknowledges the need to attract and motivate talented and skilled people. The HSBC’s values thrive on the importance of respecting and embracing the ideas, abilities and diverse culture of its employees. This principle is manifested on its present campaign “Your point of view”.  Its global sourcing strategy plays an important role maintaining competitiveness in the international financial services.  </li> </ul> Firm Infrastructure <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The HSBC is headquartered in London and operates in five other regions including Europe, Hong Kong, Asia Pacific, Middle East, Africa, north and South America.  The financial services it provide range from personal, commercial and corporate banking. In 1999, the HSBC Group was established with a uniform international brand name. </li> </ul>   Financial Information   Paid up Capital:       HK$22,494 million (US$2,896 million) at 30 June 2006 Reserves:                  HK$87,793 million (US$11,303 million) at 30 June 2006 Pre-tax profit:            HK$25,516 million (US$3,289 million) for the first six months of 2006 Attributable profit:     HK$18,471 million (US$2,381 million) for the first six months of 2006 Capital Strength:      Tier 1 capital ratio: 12.1 % at 30 June 2006                                     Total capital ratio: 13.1% at 30 June 2006 Source: The HSBC Group in the Hong Kong Special Administrative Region (SAR) 2006     Financial Highlights                                                                                                             2006               2005 For the year                                                                                     HK$m           HK$m Net operating income before loan impairment charges               92,325           77,222 Profit before tax                                                                                52,016         45,249 Profit attributable to shareholders                                                 37,709          32,873 At year-end Shareholders’ equity                                                                       145,450        97,334 Total equity                                                                                       165,445     114,425 Total regulatory capital                                                                    183,981      154,065 Customer accounts                                                                                     1,989,467   1,735,110 Total assets                                                                                       3,150,840   2,672,532 Risk-weighted assets                                                                      1,367,607   1,238,164 Ratios                                                                                                %                    % Return on average shareholders’ equity                                                 31.1                37.4 Post-tax return on average total assets                                        1.46               1.44 Cost efficiency ratio                                                                         41.4               41.2 Net interest margin                                                                          2.31                2.14 Capital adequacy ratios – total capital                                                                                     13.5                12.4 – tier 1 capital                                                                                   12.3                11.7     Profit before tax (HK$ millions) 70,000            60,000                                                                                                            52.016 50,000                                                                         45.249 40,000   30,000   20,000   10,000   0 2006                      2005   Source: HSBC Annual Report and Account The profit attributed to the shareholders for 2006 increased by HK$4,836 million or 14.7% to HK$37,709 million. The profit before taxation increased by HK$6,767 million or 15.0 % to HK$52,016 million Core Competence HSBC has establish itself as a leading commercial bank not only in Hong Kong but worldwide.  Its long term existence has earned it the reputation which is unequaled by any other banks. Today, HSBC remains to be one of the most trusted financial institutions with operations in Europe, Asia Pacific region, America, Middle East and Africa. It maintains a sound financial status which is growing by the year.   Evaluation of Results The Corporation serves an international customer base in about 82 countries all over the world.  Its financial services range from personal banking to commercial and corporate banking service. It operates on high technology that delivers a wide range of products and services designed to meet the needs of the customers. HSBC attributes its competitive positioning in the integration and sharing of skills, technology transfer and the adoption of best practices. It also recognizes the need to develop its human resource as they are crucial elements in achieving the goals of the corporation. Moreover, it adheres to its corporate social responsibility through its philanthropic activities for education and the environment. The HSBC maintains a sound and increasing financial status as shown in its financial information and financial highlights for the year 2006. It also has this unique position in the Hong Kong Banking sphere as a ‘central bank’. It acts as the banker to the government and other banks though not exclusively. Conclusion             Over the years, HSBC has been able to maintain its competitive position in the financial services. The growth focuses on four main areas including personal financial services, commercial banking, corporate investment banking and markets and private banking. Each of these areas is addressed through a set of specific strategies. The financial success of the company is attributed mainly in meeting the expectations of its customers, its people and various communities. The key to its strategy is to maintain corporate behavior that foster long term client relationships and increase productivity of its people. This is accomplished through skills sharing and the transfer of technology. HSBC recognizes the potential of Information Technology and invested significantly in the improvement of its IT infrastructures. In return, the e business enabled easier access to the international customers and employees. Recommendations <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Expand the business and penetrate other market though the effective channels. The use of IT systems is an advantage and the company must continue to lead advanced information technology </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Promote good customer relations by being responsive to customer needs. The company must also improve its flexibility by meeting the changing demands of the customers suitable for their lifestyles. In addition to this, regular monitoring on customer satisfaction must be implemented</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Empower the employees by understanding their needs and measuring their engagement to the company. Feedbacks must also be encouraged from the employees and use them to contribute to the company’s success</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Manage the business in the interests not only of the clients but the wider society </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Fulfill corporate responsibility through environment friendly purchasing and supplier engagement. Aside from the environment, philanthropic activities can also be focused on education and poverty alleviation</li> </ul>

Industry and Firm Strategy Analysis

Strategy Analysis PART 1 Industry Analysis This paper is an analysis of the Banking Industry in Hong Kong. It discusses the competitiv...