Analysis of General Environment Essay

HSBC Bank ( china) is one of the first foreign banks to compound locally in mainland. As a foreign-owned bank, HSBC has the largest services network among foreign banks, targeting the middle-class individuals and business-oriented individuals in China. With the globalization, China is seen as the biggest market in the world. The general purlieu will bring great effect to the upcoming development of the HSBC (China). The specific analysis is as fol small-scale.1. Demographic EnvironmentChina has the largest population in the reality that the number has already reached 1.4 billion. Most of the population ar living in the east and middle aras. In other words, the middle and above-middle-class people assemble in these two areas with the demand of bank service. (National Bureau of Statistic of China, 2011) As the societal pressure growing heavier, less people are willing to give birth to baby so that the problem of population aging arises. According to the reform and opening polici es, the east and south areas are better developed than the central and the west. People in the coastal region get down higher intermediate income than others. As a result, HSBC (China) mostly build its banking network in the east and south areas, which are so called first-tier cities. Meanwhile, it has besides expanded branches in some second-tier cities in the central area of China.2. Economic EnvironmentAs an emerging market, China is developing at a very fast speed with continually growing Gross Domestic Product as well as high export surplus. However, in call of global environment, the world remedy non recovers from the economic recession. The financial market in mainland has been impacted that the throw roll of RMB has gone higher and higher, which has been result in the inflation. To better control the financial market, the interest rate has been increased to limit the cash flow in the market and personal saving rate goes up that people are encouraged to save money in banks rather than investing. Another economic gene putting effect on HBCS in China is the unemployment rate. China government devotes into keeping the unemployment rate low and stable, because once the rate rises sharply, this will destroy the harmony of the society. Consequently, HSBC (China) should take this factor into account to obtain avow and support from the local government.3. Political EnvironmentIn China, banks are supervised by the China Banking restrictive Commission. There are many barriers setting in front of those foreign banks in China, such as foreign banks are not permitted to establish a business of any scale in the mainland, since the Chinese legislations limit on how many local banking operations can lean on foreign banks. On the other hand, the new parties form held the power, which means new policies and new reform may come into being. polar policies and reform will significantly affect the existence of HSBC in China.With the improvement of the capital ma rket, the financial environment will be deregulated and gain a more(prenominal) loosening environment. Moreover, foreign banks in China have to be charged tax, which will increase the cost and lower the profits of HSBC in mainland. As the controlling education popularizing, more and more people think highly of the banking service. They become to have good association to the banking items and are tied closely to those services.4. Socio-cultural EnvironmentBanks serve for peoples demand and need. Peoples attitude towards banks is influenced by the social-cultural environment. In China, customers are more conservative that they prefer saving money. Therefore, more ferocity should be put on the retail banking services in mainland. Recent years, with the impact of financial crisis, people are less trusting banks. Banks are seen as greedy organizations by the public, which was result from arbitrary banking charges.5. technical EnvironmentTechnological permute can bring new style of b usiness to organizations. It can change both the product and business way. Since the constant improvement of the Internet, HSBC has launched its online banking services in China. People can have an electronic account to check users balances and transactions, make transfer as well as pay bills. Simultaneously, doing business through the Internet not only save the magazine for customers, but also simplify the business process for HSBC so that they can cut large amount of cost.Furthermore, the development of the sprightly phone also benefits the banking services. People can easily access to their account through the mobile Internet. Secondly, incident applications have been invented for mobile users to manipulate their banking service. For example, HSBC has its own applications which can be used for IOS (iphone) and Android operating systems. These applications are convenient to use and also help HSBC to saving labor as well as time cost.6. Global EnvironmentThe global environment is somewhat cannot be controlled by the organizations itself. The global economy remain in a recession for a period of time and seems to be difficult to recover from it. The attendant influences of the financial crisis affect the economy in China. HSBC (China) has earned less profit these years. Although the macro environment is not so optimistic, China is still the hugest potential market around the world. Besides China, there are still many emerging countries appear in the world, like India. In the future, HSBC (China) should pay attention to create more advantage competitiveness than those HSBC banks in other international regions.ReferenceEternity in an hour. (2009). 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