A Report on Strategic Service Vision A Case Study of HSBC Bank

Organization Overview

HSBC is one of the largest banking and financial service providers in the UK. This bank has traditional High Street roles of personal finance and commercial banking and this bank provide private, corporate, and investment banking services across 1800 sites in UK (Medcroft, 2012). According to Virgo (2013), the main operations of HSBC Bank in the UK are to provide safety deposit vaults, to pay interests on the different types of deposits, to provide loans (personal, business, education etc.) to the borrowers, to exchange funds between places, to change the denominations of different currencies, etc. The whole banking system of a nation acts as the financial backbone of the nation but the lending and deposit-holding operations of banks are not able to create new wealth for a nation (Rajesh et al, 2014). The author also added that banks acts like the catalysts by directing the existing capital to the entrepreneurs of different industries, which helps the industrialists in their commercial and industrial operations. It is very important to know the servicescape of any organisation when the overview of the organization is analysed. Booms and Bitner developed the concept of servicescape. According to them, the impact of the physical environment in the service-based industry is analysed under the concept of servicescape. In accordance of Lu (2014),the experience of the customers about the services of HSBC bank compared to other banks and financial service providers of UK is much better. As per this result of the empirical study of the author, it is clear that most of the customers are satisfied with the provision of services of HSBC bank compared to other banks and financial institutions. The servicescape has the exterior and the interior elements and these elements represent the physical environment in the presence of both the sellers and the customers with the activities like, performance, delivery and consumption (Saunders and Hunter, 2009).

 

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Target Market Segments

The target market segment is a very important part of analysis in strategic service vision. There are three basic segments of the market, which are going to be analysed, and these are – Psychographics, Sociographics and Demographics (Ahmar, 2012). However, before analysing all these three segments we have to consider the mass-market segment of the HSBC Bank, which is made by the entire population of UK. The three market segments, pointed out above, are incorporated into the mass market. Other market segments are represented in the following diagram

Figure 1

The customer base of HSBC Bank has different types of customers starting from the single individual to a large corporate business in the market (Naheem, 2015). Therefore, the bank should use flexible factors, which they can vary depending on the depending on the different customers of the market.

The factors of the demographics are – income, education, wealth etc., the factors of sociographics are – education, economic condition, expectation, employment condition etc. and the factors of psychographics are values, attitudes, liabilities and personalities (Better strategic planning, 2012). The success of the employment of strategic service vision depends on the collection of information on the above factors. The analysis of all these market segments helps to achieve the exact target market.

Current and Future Implications

The analysis of the strategic service vision of HSBC Bank has provided the business strategy of the bank, the actual vision of the bank, the provision of services of the bank etc. However, there are some issues also which the banks are facing in the current days andthe top three issues faced by HSBC Bank are –Cyber Crime, Customer Loyalty and Trust (Mattsson, 2010).

The most challenging issue faced by a bank is cyber-crime. The criminals are not needed to enter the bank physically rather they take the help of the information technology to commit such a dangerous crime. Within a very few seconds, the criminals can transfer huge amounts of money from one account to another with a few strokes of a keyboard and they can make bankrupt any account holder of the bank (Ahmar, 2012). In 2015, these types of cyber-crimes are not only emerging in the UK but also hitting the headlines of the newspapers. The banks have to be more careful regarding this matter and have to build a strong security infrastructure to stop these crimes.

The next two factors are very much related to each other. One is the loyalty of the customer and another is the trust of the customer. If a major issue of HSBC Bank is to hole the loyal customer then the other issue is the trust of the customers in the bank and their services should not be ignored (Parke, 2012). The brand loyalty for the bank is built with the trust of the old and existing customers. Therefore, with the attraction of new customers, HSBC Bank has to remember that it must have to hold the loyalty of the customers. The bank has to build the pillar of trust among both its new and existing customers (Deeset al, 2002).

References

 

Books

Dees, J., Emerson, J. and Economy, P. (2002).Strategic tools for social entrepreneurs. New York: Wiley.

Heskett, J. (1986). Managing in the service economy. Boston, Mass.: Harvard Business School Press.

Saunders, J. and Hunter, I. (2009).Service led design. Farnham, England: Gower.

Journals

Ahmar, M. (2012). Vision for a Secular Pakistan?.Strategic Analysis, 36(2), pp.217-228.

Better strategic planning.(2012). Strategic Direction, 29(1), pp.30-32.

Chinese vision drives East Asian détente. (2014). Strategic Comments, 20(9), p.vii-viii.

Lu, Q. (2014). Is the speed of post-acquisition integration manageable? Case study: post-acquisition integration of HSBC with the Mercantile Bank, 1959–84. Business History, 56(8), pp.1262-1280.

Mattsson, J. (2010). Developing a strategic abstraction tool for service innovation.Journal of Strategic Marketing, 18(2), pp.133-144.

Medcroft, N. (2012). A question of attribution: Shah v HSBC Private Bank (UK) Ltd [2011] EWCA Civ 1154. Trusts & Trustees, 18(1), pp.68-73.

Naheem, M. (2015). HSBC Swiss bank accounts-AML compliance and money laundering implications. Journal of Financial Regulation and Compliance, 23(3), pp.285-297.

Parke, C. (2012). Preparation meets strategic planning: organizations without a vision for the future won’t get there. Strategic Direction, 28(7).

Rajesh, S., Jain, S., Sharma, P. and Bhahuguna, R. (2014).Assessment of inherent vulnerability of rural communities to environmental hazards in Kimsar region of Uttarakhand, India.Environmental Development, 12, pp.16-36.

Virgo, J. (2013). Investment risk, loss, and causation: After Rubenstein v HSBC Bank Plc [2012] EW