Research Korner

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 competitiveness of this industry and the critical issues affecting its …

OPAC Literature Review

Review of Related Literature   The review of literature briefly followed the history of the OPAC, case studies from different library studies and library system analyses. In line with the OPAC, it showed that developments from the first to second generation provided some limited help to a mainly expert user community, but that, on the whole, they failed to successfully translate into third generation systems and overall experience for non-expert users remained poor. Scott Hamilton and Helen Thurlow provide an ample discussion on how to enhance library system that would be friendly to all users. In their Transaction Log Analysis @ State Library of Queensland, employ transaction log analysis as better alternative for effective use of library. Transaction log analysis has remained a prominent analysis technique during this time, although a stronger focus on web transaction analysis is predominantly utilized by many users. The understating problem with TLA remains that despite advances in technology and user interfaces, it does not assist the understanding of the motivation behind user’s action. Against this backdrop, valuable user trends can be identified and with the appropriate toolset, data on user search strategies can be evaluated and used to improve the overall performance of OPAC systems. From the report of IFLA during the World Library and Information Congress in Oslo, Norway, Diaz, Barrionuevo, Martinez, Reche and Perez presented the results of their assessment on the library system of Andalusia University Library in Spain entitled The Excellence and Quality in Andalusia University Library System. The committees assigned to make overall assessment of the university library involves a wide range of subject areas including the traditional activities and non-traditional activities which currently emerging in the new educational context. Moreover, the assessment will need to take into account the connection between these two different types of activity and the ultimate mission and the teaching and research objectives of the university as well as considering the extent of the role the library may plays as the knowledge management unit. In Marilyn Mitchell’s study on Library Workflow Redesign: Concepts and Results takes a radical step towards improving library system applying a library workflow design which radically pinpoints to a drastic necessity of redesigning and reorganization of an enterprise. This is sometimes needs to lower costs and increase the quality of service and that information technology is the primary enabler for the radical change. He further discussed the importance of various variables needed in the implementation of redesigning the system. The importance of motivation, change and risk, leadership, outside assistance, planning, communication, decision making, original thinking, teaming, time and timing, are all significant in implementing the model so as to effectively ride on to the changes set by technology. On the other hand, Adamson, Bacsich, Chad, Kay, and Plenderleith (2008) made a study on JISC & SCONUL Library Management Systems Study: An Evaluation and Horizon of the current library management systems and related systems landscape for UK higher education. The report is divided in different sections designed to be studied together or independently, the horizon scan, library survey analysis plus statistics from 100 UK HE libraries, vendor perspectives, reference group feedback and a practical guide for librarians making systems decisions. The study recommends libraries invest in systems with caution but not complacency, emphasizing that while the library function has continuing and potentially growing value, the role of conventional library may appear increasingly unclear. In the case study made by Anne Chase and Tony Krug (2008) about the New Techniques in Library Technical Services at the Appalachian College Association, they develop strategies in view with the library system. Within the category of developing strategies for more effective library systems, process mapping and process improvement for libraries workshop is important. In this category librarians are granted with workshops relevant to their nature of work. Librarians and participants are introduced to techniques for examining and improving workflow. It involves sessions on hands-on examples and during the duration of such event, participants stepped outside the comfort of their library roles and into new ones. Part of the workshops is the project focusing on library processes. Participants made list of library processes, identified the customers for these processes, and discussed the importance of measuring activities and of selecting the best methods of process mapping. Another case study made by Linda Gunter and Cindy Snyder (2008) on Redesign at The Libraries of The Claremont Colleges. In their study they concluded several observations, lessons, and evaluation using the methodology and design model. Under their observation, the sustainability of the project is quite difficult given the fact that staff has other commitments. Whether because of a lack of sustained interest, a lack of time, or funding constraints, not all elements of the proposal or all recommendations of the model have been put into operation. Further, one aspect of the team’s work that needed more attention was communication with the rest of the libraries’ staff. Until the model was presented, some stag occasionally commented that they did not know enough about what the team was doing. In retrospect, it would have been wise to communicate with staff on a regular schedule rather than sporadically. Alongside with the given notion of cooperative learning and working for development and enhancement of certain program or system, Andreadis, Barth, Scott, and Greever, work on Cooperative Work Redesign in Library Technical Services at Denison University and Kenyon College as part of reassessing the library system governing these institutions and provide sufficient rational bases on adapting new methods for library system for further effectiveness. Of course, libraries better than most institutions have long understood the value of cooperation and collaboration. The role of a library is to make information freely accessible, to promote its use, and to preserve it so that it remains freely accessible. Recognizing the need to make the most of their cooperative and collaborative networks, Kenyon College and Denison University have begun reorganizing technical services across the two campuses through the creation of a joint department of collection services. The lure and challenge of electronic information; the desire to provide greater access to local, specialized collections; and a design to be proactive rather than reactive were at the core of this effort. It has led to more empowered employees working collaboratively to provide the best possible customized information access tools for their constituents. In the IUPUI case study, Indiana University-Purdue/University Indianapolis Library System, the library system goes digital using LizardTech Express Server for high-speed, plug-in-free content delivery. The university is developing a digital archive of maps, aerial photos and other geographic documents relating to Marion County and the nine surrounding counties. This digital archive is to serve teachers and students in K-12n education, academic such as historians and genealogists, and the general public. Under the expertise of different digital libraries team researchers, they concluded the study by recommending an application of LizardTech Express Server combined with LizardTech’s MrSID image format. Benefits come in various modes like high-speed image delivery, access by anyone with a browser, maneuverability of large images and an established format. These benefits are all in connection with promoting and advancing the library system in accordance to the changes happening around. Moreover, these literatures although are necessary for the process of understanding and evaluating the status and condition of certain library system, the need for further in-depth study and assessment are ask. Each library has its own environmental problems and the need for contextual analysis can effectively unearth and discover what to develop and enhance in a certain library system. Henceforth, without related studies we cannot then find fertile ideas and grounds to conduct a more coherent, reliable and objective analysis on the said issue.

OPAC Literature Review

Review of Related Literature The review of literature briefly followed the history of the OPAC, case studies from different library studies and library system analyses. In line with the OPAC, i…

ART205-0804A-07 Art Appreciation :Unit 2 Individual Project Assignment Essay Instructions

ART205-0804A-07 Art Appreciation Assignment Name: Unit 2 Individual Project Deliverable Length: 500 words (not including references) Details: Visit the following websites and explore the collections of Ancient Art there: The Metropolitan Museum of Art The Louvre Museum The Smithsonian Institution Freer Gallery and Sackler Gallery See the Course Materials List for access to these sites. From the gallery websites listed above, and available through the Course Materials List, select two works of art from any ancient culture. Using the terminology and concepts you are learning for evaluating art, compare and contrast the two works including materials used, style, meaning, symbolism, and any other aesthetic issues. Explain how the works of art fit into the context of the time period. Keep in mind that only art works that fit into the period of Ancient Art (created between 30,000 BCE- 500 CE) will be accepted. You are required to comply with APA style format for quotations, internal citations and a reference lists. For additional information and resources on APA, visit the APA section of the Library, available under "Library Features." For information on Macintosh Word shortcuts, click here. Please submit the final paper with the URLs for the art work you chose. Points Possible: 100 Date Due: Objective: Discuss principles of design and formal elements of art. Discuss works of art in a manner that demonstrates an understanding of the relationship between art and history. Demonstrate an understanding of visual literacy. Apply critical thinking skills to the content of the course. Submitted Files: Submit Assignment Score: N/A Instructor Comments: No comments have been made

ART205-0804A-07 Art Appreciation :Unit 2 Individual Project Assignment Essay Instructions

ART205-0804A-07 Art Appreciation Assignment Name: Unit 2 Individual Project Deliverable Length: 500 words (not including references) Details: Visit the following websites and explore the collection…

Total Quality Management: Healthcare in Queensland, Australia

Total Quality Management: Healthcare in Queensland, Australia Shortage of Doctors and Nurses in Queensland Healthcare Industry               Total Quality Management or TQM was coined by the U.S. Naval Air Systems Command to describe its Japanese-style management approach in terms of quality improvement (2007a). It comprises four process steps, namely, Kaizen, which is to make processes visible; Atarimae Hinshitsu, which is to focus on intangible effects on processes; Kansei, or examining the way the user applies the product; and Miryokuteki Hinshitsu, which broadens management concern beyond the immediate product (2007b). However, in more general terms, TQM is defined as a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society (2007b). From this, it can be understood that the aim of TQM is to improve and develop the system and approach of an organization for customer and employee satisfaction. This form of management is crucial for any organization belonging to any industry, for this determines the quality and extent of service that they can offer their customers. However, not all service sectors meet the standards required in providing quality management. Several issues can still be determined, which allows the further improvement of the service industry. Issues include the lack of funds and resources, which allow the service industry to improve and upgrade their facilities and provide the needs of employees and customers, the lack of manpower or talents, the lack of strategies in attracting and retaining customers, and the lack of strategies of sustaining and maintaining employees. In addition, providing benefits and compensation for employees and ensuring a healthy and safe working environment are also issues to be addressed. It has been reported that in today’s successful service organizations, safely and health management concerns go beyond the physical condition of the workplace to a regard for employees’ mental and emotional well-being and a commitment to protecting the surrounding community from pollution and exposure to toxic substances, which now involves the employees at all levels (2002). Equally important, this type of service is vital in the healthcare industry, especially to hospitals and other health related establishment, where patients and health-deficient individuals rely upon their efficiency and expertise. However, due to uncontrollable circumstances, the quality of service in the healthcare industry has been declining, and this presents a myriad of quality issues and challenges in the service sector. A relevant issue that can be addressed is in terms of the service and facilities of public or government hospitals and health clinics, which have focused on the reduction of spending with their facilities and with allocation of public health care dollars (2002). An example of which are acute care hospitals, for they are complex institutions comprised of numerous medical specializations in which physicians have considerable decision-making power (2002). The reduction of allocated resources and government spending results to the lack of facilities and healthcare professionals in terms of the quality of service rendered in government hospitals, thus, lessens also the amount of healthcare services that patients receive from them. In addition, the lack of government spending and resources leads to the constraint of human resources or talent, taxpayer funding, transparency or information-sharing, lack in the establishment of effective projects and infrastructures, citizen involvement, and service delivery (2007). On the other hand, service and quality issues are also being faced by private hospitals and healthcare facilities, which consider a number of factors in order to function and render service effectively. In low and middle-income countries, factors, such as those that add to discrepancies between provider knowledge and practice are being faced. Private hospitals perceive and experience patient and community pressure in order to provide treatments, lack the capacity to enforce regulatory controls, and lack multi-faceted strategies, including the local adaptation and distribution of information (1998). In relation to this is the pressure and challenge of educating patients and communities, so that they will be able to adopt achieve treatment-seeking and treatment-taking behavior, feasible mechanisms for guaranteeing and monitoring service quality, and self-regulation by provider organizations or provider accreditation (1998). With these problems and challenges, the salvation of private hospitals in relation to the development, improvement and evaluation of strategies would depend on the involvement of their stakeholders and policy makers, and practical, inexpensive, effective, sustainable and efficient interventions, to achieve their goals (1998).               Moreover, a specific issue to be addressed in the healthcare industry is the recruitment of healthcare professionals, such as doctors and nurses, in relation to the control of quality management. Quality management is a method or process, which ensures that all activities needed to design, develop and implement a product or service are efficient and effective with regards to a particular system and its performance (2007). With this, it can be understood that this method encompasses all other strategies and techniques implemented in service organizations, which are responsible for attracting and retaining healthcare professionals in a specific healthcare institution. However, despite the existence of this type of management, several problems and issues are still faced by healthcare and service institutions, in relation to the recruitment and retention of its skillful workforce. Primarily, like any other service organizations, hospitals and other health-related establishments must be able to advertise job and position openings to attract skillful healthcare professionals. The issue that must be addressed here is the ability of the healthcare institution to utilize different available advertising channels to be able to catch the attention of healthcare professionals. Today, the use of the World Wide Web in terms of advertising could be utilized, for its use is becoming more and more indispensable (2006). This then, becomes a means for attaining quality management strategies, for an effective use of advertising channels can be a particular strategy in order to develop, design and implement a product or service (2007). Second, it has been reported that quality has been seen as a natural consequence of a sound medical education and good intentions on the part of medical practitioners, which are related to professionalism, trust and clinical autonomy (2000). With this, an issue that can be addressed is the fact that to be able to render efficient and effective service, a healthcare institution must recruit and select skillful and experienced doctors and nurses. This issue becomes relevant to the concept of quality management because the recruitment and selection of right healthcare professionals would become crucial for the effective operation of the whole institution. Considerations that can be considered include the specialization and skills of the healthcare professionals, the academic institution from where they obtained their education, the referrals from their previous work or referrals from reliable sources, and their experiences in the related field. The consideration of such factors can be used to effectively select the rightful employee for the job.             Another issue to be addressed is selecting a healthcare professional, who has the similar beliefs, mission and goals as the ones being implemented in the healthcare institution. Although the primary aim of doctors and nurses is to improve the health conditions of their patients, they must still conform to the standards of the hospital and focus on rendering the highest possible standard of service that they can afford. With this, the role of the Human Resource team would be highlighted for the members of the team will be responsible for making decisions in the selection and recruitment of employees. The issue that must be addressed here is the fact that the HRM team must be able to choose the rightful employees, who could be molded to adopt and implement the mission and vision of the healthcare institution, in line with its intention of rendering effective, efficient, and quality service to patients.             In line with the responsibility of healthcare professionals is their need and requirement for effective and efficient hospital equipments and facilities. However, the intention and responsibility of doctors and nurses will not be attained without effective and efficient hospital facilities that would cater to the needs of their patients. The issue to be addressed here is the ability of the healthcare institution to provide for the needs and requirements of doctors and nurses in terms of facilities and equipments. This aspect can be a particular consideration in the recruitment and selection of doctors and nurses, for they must be able to adapt to the facilities and equipments available to the healthcare institution. In relation to this is the fact that because of the drastic and continuous development and improvement in technology, education, and communication, the use of more sophisticated and advanced pieces of equipments are being implemented in healthcare institutions to enhance the services that hospitals can render. The issue to be addressed here is the crucial selection of skillful healthcare professionals who are willing to learn new strategies and techniques that would help the healthcare institution further improve and develop. Having effective hospital facilities is determinant in implementing quality management, as indicated in the study of  (1999), who emphasized that with effective and advanced facilities, quality management in hospitals in Australia is improved and achieved, in relation to the use of its skillful healthcare professionals. From this discussion, it can be understood that Total Quality Management has a lot to do with the effective and efficient improvement and development of healthcare institutions, along with its crucial role in the recruitment and selection of skillful and rightful healthcare professionals.

Total Quality Management: Healthcare in Queensland, Australia

Total Quality Management: Healthcare in Queensland, Australia Shortage of Doctors and Nurses in Queensland Healthcare Industry Total Quality Management or TQM was coined by the U.…

ORGANIZATIONAL STRUCTURE: AMERICAN ASSOCIATION OF RETIRED PERSONS

Title of the Paper: A study on the organizational structure of the American Association of Retired Persons               Course Number: CTC-000098 Instructor: Date: Friday January 13, 2006                American Association of Retired Persons (AARP) is the currently the country’s eminent organization for people of the 50 and beyond. It attends to their various needs and concerns through systematic information and education support service coupled with efficient community activities and programs. All these are further provided by colligated network of present local chapters within districts and pulled off by volunteers throughout the country. AARP also offers its members a wide range of extra welfare services and benefits, including their own Modern Maturity magazine and the monthly Bulletin.  further defines American Association of Retired Persons, (AARP) as a nonprofit, nonpartisan national organization dedicated to "enriching the experience of aging"; membership is open to people age 50 or older. Founded in 1958 by  Andrus as American Association of Retired Persons, AARP now has over 30 million members, enabling it to act as a powerful advocate for older Americans on public policy issues such as social security and health care. AARP also distributes information on topics of interest to its members, sponsors community-service programs, and provides various services to its members. It publishes Modern Maturity and My Generation magazines and a members' bulletin. 1 The organization is a tax-exempt group which garners federal monetary resource, at about $86 million annually, from direct grants for such programs as tax counseling for the elderly to providing jobs for seniors under the "Senior Environmental Employment Program." Simpson rightfully raised the question over the use of a non-profit status for a group which makes millions selling its members medicine, insurance, and other products. AARP is widely acknowledged for the defense, advancement and pursuing the interests of aging citizens through a plurality of initiatives.  These included lobbying efforts at both the state and national governmental level, an activity permitted by its status which provides it with an exemption from the imposition of Federal income tax. Its AARP Services (ASI) division is concerned with the negotiation and offers reduced rates for its members at various tourist attractions, automobile rental companies, including motel and hotel chains. ASI also provides programs for reduced-cost medical and automobile insurance, opportunities for managing retirement and scam alerts about predatory lending and refinancing. One of the more public AARP's public stances was that which influenced the U.S. Congress' support for the Medicare Prescription Drug, Improvement, and Modernization Act, which authorized the creation of Medicare Part D, in 2003 and resistance to changes in Social Security in 2005. AARP also offer within most states special testing for the re-issuance of licenses to those over 70 years old. Some people have limited licences that restrict driving to specific areas and distances. Good insurance coverage is imperative and can be obtained through the American Association of Retired Persons (AARP). AARP also provides a course, "55 Alive/Mature Driving," that is helpful and in some cases will qualify one for lower insurance rates. 2 This is in accordance with the AARP mission of providing the best for the elderly. While there may lie a horde of other existing organizations which share the same aspirations with the AARP, no discussion of the interest groups influencing Social Security policy could possibly be complete without a description of the most powerful lobbying group of all. It warrants a separate chapter, for various reasons. On the one hand, it is un-fair to the AARP to include it in the previous chapter, under the title "A Cottage Industry of Demagogues." On the other hand, it is unfair to imply that any of the groups covered in that chapter wield more than a small fraction of the AARP's influence. 3 The irony is that most AARP members in the 50 states have only a vague notion of AARP’s political agenda which tilts decidedly to the left and most AARPites join for the aggressively hawked benefits. It’s hard to resist a sales pitch that touts AARP’s buying power based on 33 million members, until Senator ’s hearings focused on the fact that not only did AARP not beat competitive insurance plans but made a tidy profit, of hundreds of millions on all the products they offer their members as ‘the lowest available price’ thanks to an apparent purchasing power due its massive membership. 4 The organization was established and grounded on free enterprise, less government, less tax for the elders and neither takes nor seeks federal grant money. The AARP has been called "an increasingly influential lobbying group for the elderly...” but these Taxpayers --and especially senior citizens -- must realize that the AARP does not represent the best interest of people but serves as a mouthpiece for those forces pushing for expanded government. Nonprofit organizations with their own political agenda of liberalism which receive federal funds should not be subsidized by taxpayers for lobbying. President  said it so well: "To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors, is sinful and tyrannical." It is time an aroused electorate put a stop to this abuse. 5                         Reference:

ORGANIZATIONAL STRUCTURE: AMERICAN ASSOCIATION OF RETIRED PERSONS

Title of the Paper: A study on the organizational structure of the American Association of Retired Persons Course Number: CTC-000098 Instructor: Date: Friday…

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