HSBC Case Study
The Hong Kong and Shanghai Banking Corporation (HSBC) was termed as one of the most developed nations in Asia in 1865. The business was established in a bid to ensure that China was in a position to compete with other banks such as those established in the United States of America. The business was mainly concentrated in the Asia Pacific region and had tried to avoid Europe and the USA. However, over time the business was in a position to expand its reach to Europe through acquisitions in the United Kingdom as well as France (Chawla, 2020). The global businesses include HSBC Private Banking, HSBC Retail Banking and Wealth Management, and HSBC Global Banking and Markets. The business businesses related to HSBC can be termed as global since the financial institution was able to expand its reach into various markets and was in a position to influence various markets.
Not all businesses that have been established by HSBC can be classified as globals. The fact that the bank was established in Hong Kong meant that it had to focus on the needs of the immediate market, including China (Chawla, 2020). Some of the businesses associated with HSBC have failed to meet the global threshold and have been constrained to particular regions.
The fact that HSBC operates in various jurisdictions means that they have to establish particular decision-making mechanisms. Globalization has affected the decision-making process has it has resulted in dysfunction has various functional areas are unable to operate efficiently (Chawla, 2020). The decision-making process has also been affected since the management is unable to communicate with the subordinates and to pass vital information that affects organizational development.
Reference
CHAWLA. (2020). THE WORLD’S LOCAL BANK : HSBC. Retrieved 2 February 2020, from https://www.slideshare.net/KANIKACHAWLA10/the-worlds-local-bank-hsbc