HSBC’s strategic objectives of value creation and long-term sustainability underpin their strategic priorities which are at the core of their strategic plan. The firm has three main strategic priorities which entail growing the business and dividends, increasing investment in Global emerging markets, and reducing costs while streamlining process and procedures. This strategic plan outlines the procedures HSBC will follow in pursuit of achieving these priorities.
Value Creation:
HSBC’s objective of value creation is central to their strategic plan. They create value by allowing funds to flow from savers and investors to borrowers, either directly or indirectly through the capital markets. The borrowers use these loans invest in businesses or to buy goods and services. Through this, HSBC helps the economy to convert short term savings into financing and thus, adds value. The Bank develops new financial products as well as acting as a payment agent which facilitates both personal and commercial transactions globally.
It is clear that HSBC aims to create value in the economy by providing these services, however, given their recent job losses amounting to nearly 25,000, one could argue that their strategic plan is not reflecting their objective of value creation.
Long Term Sustainability
Sustainable decision- making shapes HSBC’s …show more content…
In the pursuit of one aim, HSBC are taking actions that neglect their other key objectives. While pursuing the aim of increased investment in Asia they are going against their plan to cut costs, and whilst they are successfully cutting costs by reducing the number of employees, they have they are going against their objective of adding value to the economy. Their plan does on some level seem too optimistic in terms of the financial targets they set. They have a reputation of failing to meet their financial targets, particularly in the area of shareholder
Value Creation:
HSBC’s objective of value creation is central to their strategic plan. They create value by allowing funds to flow from savers and investors to borrowers, either directly or indirectly through the capital markets. The borrowers use these loans invest in businesses or to buy goods and services. Through this, HSBC helps the economy to convert short term savings into financing and thus, adds value. The Bank develops new financial products as well as acting as a payment agent which facilitates both personal and commercial transactions globally.
It is clear that HSBC aims to create value in the economy by providing these services, however, given their recent job losses amounting to nearly 25,000, one could argue that their strategic plan is not reflecting their objective of value creation.
Long Term Sustainability
Sustainable decision- making shapes HSBC’s …show more content…
In the pursuit of one aim, HSBC are taking actions that neglect their other key objectives. While pursuing the aim of increased investment in Asia they are going against their plan to cut costs, and whilst they are successfully cutting costs by reducing the number of employees, they have they are going against their objective of adding value to the economy. Their plan does on some level seem too optimistic in terms of the financial targets they set. They have a reputation of failing to meet their financial targets, particularly in the area of shareholder