HSBC HOLDINGS PLC Market Entry Strategy - Outline Example

HSBC HOLDINGS PLC: OUTLINE A: Interpretation of the Question The question requires that a company is selectedand its international market for a specific service or product analyzed. Theories and concepts in international business are to be employed in the analysis of the selected company’s foreign market. The question further requires that the industry in which the company operates is discussed in light of globalization and its impact on international business activities. Furthermore, the question requires that the market entry strategies which are employed by the selected company to enter a foreign market within the selected country are evaluated. In addition, the question asks for an identification and discussion of the competitive advantage that the company gains from employing its foreign entry market strategies. Finally the challenges that the company faces within the foreign market are to be discussed. B: The Line of Argument The company HSBC Holdings PLC is selected for the analysis and discussion of its international business. China is also selected as an international market in which the company operates its banking services. The argument within the paper will be based on an understanding and research evidence on international business. The argument will also be based on the strategies used by HSBC in entering the Chinese market and the business environment of this country. The paper will therefore present an argument that HSBC needs to amend its corporate strategies to meet its challenges in the Chinese finance market and therefore gain a competitive advantage. C: Structure and Presentation of the Essay 1. Abstract The abstract of the paper will comprise a presentation of the main sections of the paper and what it is all about. The abstract will be a short description of the main points within the paper and the interpretation of understanding within the process of international business analysis. 2. Contents The contents of the paper will be presented in a table with page numbers to enable quick navigation of the various parts of the paper by the reader. 3. Introduction The introduction of the paper will provide an accurate description of the background of international business in relation to HSBC and its Chinese based banking services. The aims and purpose of the paper in addition to the thesis statement will be presented within the introduction. 4. Main Body a) HSBC The background of the company will be presented in this section. This includes the services it offers, corporate strategy, goals, objective, vision and mission of the company. In addition, an internal environment analysis of the company will be given in this section of the paper through a SWOT analysis approach. b) Globalization The role of globalization in the contemporary banking and financial services industry will be discussed in this section of the paper in relation to the internationalization processes of companies. The impact of globalization in the company’s corporate strategies such as human resource management and management of a global value chain through technology will also be discussed. c) Market Entry Strategy The strategies used by the company in entering new markets in a foreign country will be discussed in this part of the paper. The entry strategies into the Chinese banking and finance market will be specifically discussed. Justifications for each of the foreign market entry strategies will also be given with an analysis and discussion of pitfalls of these strategies. The following strategies will be discussed Licensing Direct Investment Exporting Joint Venture d) Environmental Analysis The external business environment will be analyzed and discussed in this part of the paper. This will involve a critical analysis of the political, economic, legal, social cultural, ecological and technological environment within the Chinese banking and finance industry and how it affects the operations of HSBC. This analysis represents the application of the PESTLE analysis model for a specific market or industry. e) Competitive Advantage The business strategies used by HSBC in achieving competitive advantage within the Chinese banking and finance market will be given here. This includes a discussion of international business strategies of the company such as marketing, human resource management and implementation of technology. f) Challenges In line with the findings on the Chinese business environment within the banking and finance industry and the strategies of the company, the challenges it faces within this market will be discussed in this section. g) Recommendations Recommendations on the appropriate strategies, business decisions, policies and management approaches for overcoming challenges within the market will be draw in the recommendations section. 5. Conclusion The main points within the paper will be summarized within this section with an illustration of whether the goals and objectives of the paper were adequately met. C: Annotated Bibliography 1. HSBC Holdings plc, 2011. Datamonitor. HSBC Holdings, PLC SWOT Analysis, pp. 1-8. This article represents a credible source of information for the analysis of the internal business environment within HSBC Holdings PLC. This article is relevant for the paper because an analysis of the company lays a basis for understanding its competitive advantage. 2. David, A. G., Salih, T. C., and Xu, S., 2008. Emerging Themes in International Business Research. Journal of International Business Studies, 39(7), 1220-1235. This journal article presents comprehensive discussions of various themes in international business. It is appropriate as a reference material for this paper because it contains credible information on international business such as effective entry modes which are to be analyzed in the paper. 3. Ho, J., Wu, A., and Xu, S., 2011. Corporate Governance and returns on information technology investment: evidence from an emerging market. Strategic Management Journal, 32(6), pp. 595-623. This article discusses concepts of corporate governance and how they are applicable in information technology implementation within companies. The concepts of corporate governance as presented within this article are relevant for the paper because they will allow an understanding of the role of corporate governance at HSBC and its effectiveness in using technology for a competitive advantage in the Chinese financial market 4. MarketWatch, 2011, “Company Spotlight: HSBC Holdings”, MarketWatch: Financial Services, 11(11), 29-35. This article provides information and data on HSBC Holdings PLC which is to be analyzed in the main paper. This article is therefore relevant for the analysis of the company’s strategies and entry modes into international markets which are needed to meet the goals of the paper. 5. Wu, Y., and Bowe, M., 2010. Information Disclosure, Market Discipline and the Management of Bank Capital: Evidence from the Chinese Financial Sector. Journal of Financial Services Research, 38(2/3), pp. 159-186. This paper gives an in-depth analysis of the Chinese financial sector. The fact that the main paper requires to analyze the external environment or the forces within the Chinese financial sector makes this article reliable and relevant as an information source for the paper. 6. Xiaoqing, F., 2009. Competition in Chinese Commercial Banking. Banking & Finance Review, 1(1), pp. 1-16. The competitiveness of the banking sector in the Chinese market is presented in this article. This makes it suitable for the paper, especially in the analysis of the competitiveness of HSBC Holdings PLC within this market and the challenges it faces. Bibliography HSBC Holdings PLC., 2011. Datamonitor. HSBC Holdings, PLC SWOT Analysis, pp. 1-8. David, A. G., Salih, T. C., and Xu, S., 2008. Emerging Themes in International Business Research. Journal of International Business Studies, 39(7), 1220-1235. Ho, J., Wu, A., and Xu, S., 2011.Corporate Governance and returns on information technology investment: evidence from an emerging market. Strategic Management Journal, 32(6), pp. 595-623. MarketWatch, 2011. Company Spotlight: HSBC Holdings. MarketWatch: Financial Services, 11(11), pp.29-35. Wu, Y., and Bowe, M., 2010. Information Disclosure, Market Discipline and the Management of Bank Capital: Evidence from the Chinese Financial Sector. Journal of Financial Services Research, 38(2/3), pp. 159-186. Xiaoqing, F., 2009. Competition in Chinese Commercial Banking. Banking & Finance Review, 1(1), pp. 1-16. Read More