Research Topics: Company And Data Analysis

BT Group Company and Data Analysis

Managing Information Module Part B: Obtaining Information from a Company and Data Analysis   Introduction             Bt Group plc is one of the largest companies in the United Kingdom. They have already established a name in the telecom industry before hits the market globally. The company has set a lot of trend in this business and they have also pioneered several business engagements. However, beyond the success that they are accomplishing, the BT Group has remained dedicated to reach their goal and that is to provide world class service.             Throughout the years, the BT Group plc has been engage with a lot of product launching. They even seek the support of other large company in order to establish a better means of providing services to their customers. That’s the good thing about this company, even if they are already considered as the largest name in the telecommunication industry, they are not afraid to make some partnership with other companies. They know their weakness and they do something about it.                       All about the BT Group plc             The BT Group plc has become the world’s largest company and United Kingdoms’ leading communication provider. They have extended their target market globally with their aim of providing long-term relationship with them. From a traditional telecom company to a leading provider of converged networked services, the BT Group plc that was formerly known as British Telecommunication plc never stops pursuing something new for the benefit of their customers. Their all time goal is to provide the needs of the people and at the same time improve their services in order to meet the rapid changes in technology. It cannot change the fact that they have achieve almost everything in the industry of telecommunication but still eager to adapt new concepts, merge with other large companies, facilitate other means of technology and enhance the telecommunication services and provide excellent customer service.             The convenience that most people are experiencing right now is due to the revolution of technology and it wouldn’t be possible without the help of telecommunication companies like the BT Group plc. It was in the year 1965, when the Prime Minister of United Kingdom proposed that the Post Office should be converted to a nationalized industry. So, the government has decided that the Post Office should be split into two divisions – Post and Telecommunication. The birth of BT Group plc in the telecommunication industry has not been that easy. In the year 1981, it was launched and separated from the remainder of the Post Office. It was also the time when the first step is taken to introduce the competition in the United Kingdoms telecom industry.             BT Group has been serving 176 countries world wide, conquering not only Europe but as well as the other continents of the world. And that’s what a global company stands for. Handling such large number of customers is not an easy task for them, especially now that the industry regarding telecommunication was always facing to new challenges and changes. The good thing is they have adapted all this changes. The BT Group has set a new trend in telecommunication and they have gain the credibility and acceptance of the market (‘Company History’ 2008).   Vision, Strategy and Values                                                Their vision is to be dedicated to helping customers thrive in a changing world. The world we live in and the way we communicate are changing, and we believe in progress, growth and possibility. They want to help all their customers make their lives and businesses better with products and services that are tailored to their needs and easy to use.             Through a combination of enhanced quality of service, creative marketing, innovative pricing and cost efficiency, BT Group plc can maximize the potential of their traditional business with the support of their long-term partnership with their customers.             BT Group plc is committed to the contributing positively to the society and to a sustainable future. They created an identity that defines the type of company they are right now and what they are going to be in the future. And to be able to do that, the BT Group plc have one set of brand values:         Trustworthy – means consistently delivering on our promises       Helpful – means listening and responding       Straightforward – means keeping things simple and clear       Inspiring – means constantly working to create new communication possibilities       Heart – means showing passion and conviction   Products and Services             The BT Group plc is a company that provides global service. Despite of the wide range of their target market they can still able to render sufficient service to them. The company is involved with customer relation. That is why they seek for the best possible product that will help utilize their market the convenience that they needed. The company has been in the industry for about a couple of years and they have launched several products in the market. Each product should be distinct from each there and should possess a great impact to the consumers besides there is a lot of company that deals with the same nature of business.             BT’s Structure             Last June 1st, the BT Group Chief Executive Ben Verwaayen was succeeded by Ian Livingston who used to be the chief executive of the BT Retail. Mr. Verwaayen has been in the BT Group for more than six years, by that time he pioneered the transformation of the company. Meanwhile, the new chief executive was the group finance director in 2002 and has been the chief executive of BT Retail since 2005.                       Group Businesses BT Group plc is the listed holding company for an integrated group of businesses that provide voice and data services in the UK, elsewhere in Europe and around the world.       BT Retail - serves business and residential customers and is the prime channel to market for other BT businesses.       BT Wholesale - runs BT’s networks and provides network services and solutions to other communication companies.       BT Global Services - BT’s global managed services and solutions provider serves multi-site organisations worldwide.       BT Design – BT Group’s IT design and delivery business.       BT Operate – deploys and runs communications services for customers over BT’s core network and systems.       Openreach – owns, maintains and develops the access network which links homes and businesses to the networks of Britain’s communications providers.   BT and their Opponents             AT&T Inc., Cable and Wireless and Verizon Communication Inc. are just a few of the top competitors of BT Group plc. In fact, it is more like a survival of the fittest in the telecommunication industry right now. There is a non-stop progression in the technology today. Ideas prolonged should be critical and aggressive. It really redefines the future of the global market. Every one seeks for a solution and improvement. Every one should stay in track despite of the massive changes and also eager to catch the attention of each customers to build a long-term relationship with them in the future.             There are many tough competitors that can also provide the services that BT Group plc can give but in other to be on top of the game, the idea should not be limited only to one direction. In the United States, Cable and Wireless and Verizon Communication Inc. are the two leading telecommunication company that serves as the biggest competitor of BT Group plc. Similarities within the concepts and ideas are just few of the things that cannot be avoided with industries like this, however, a company should always input at least one unique character in order to be different among the others and the rest would be history.             BT Group plc still owns the crown in this industry as United Kingdoms leading telecommunications carrier. They are actively commercializing by licensing to external companies. The BT innovations which are usually protected by patents, copyrights, design rights and know-how have a wide scope and backed by extensive patent portfolio.   BT and their Finances             The financial statements of a company don’t only shows the profits gained. In fact it also provides the amount that they have spend within the year. Usually, the figures are presented by graphs and tables so that the results are easily visualized. In this part, statistics is greatly anticipated. If a proper method is used in obtaining the data, then the result of each financial review would definitely be a good source of information for the company, especially if they are concern about the status of their progression.                   The summary of the BT’s financial performance includes regulatory financial review. Those reviews explain the main factors that underlie in each market groups that are changed or expected to change in the future. It also includes the explanations of the new product and services that have been launched within the year. The aim of this review is to enable the user to have a better understanding regarding the dynamics of the products and services in each market as well as its influences on financial performance and their interrelation (‘Financial Statement’2008).    BT and their Customer Service             Every type of industry is committed to render satisfaction to their customers. Once a customer receives satisfaction, regarding the services offered by a certain company the next possible reaction of this customer is to incorporate trust to the company. Once the company has gained the trust of their customers, they should learn how to handle it well and protect it.  The established relationship between the two will result to further interactions.             Mainly, the progression of such company like the BT Group plc depends on how they approach the people or their target market. Each obtain connections to the people is always followed by interactions. These interactions will be very significant for the company to enhance more the services and products. Feedbacks from the customers are the best driving force for a company to boost their capabilities more. It provides them instant initiatives and ideas on what are the things that they still need to compromise with regarding their services. Satisfying a customer is on of the initial goal of a company (‘Customer Satisfaction’2008).     Suggestions and Recommendations             All of the data obtained for the completion of this paper is taken from the website of the company, the BT Group plc. Being considered as the largest company in the telecom industry, the BT Group has established a well versed website that would be very convenient to anyone who will use it. The website contains all the information needed and it was presented in a very detailed manner. From the company’s history to the latest issues concerning them.             With relation to the statistics, all of the information should be elaborately discussed.  All the financial statement of the company is included in the website and there are distinct format for all the essential information that is needed. The company also provides an appropriate customer relation page where they can post out their suggestions and comments regarding the company’s product and service. Hearing the feedbacks of the customers either good or bad will definitely give them additional idea about the way they handle their company.             Also, the website is always up to dated. It is a good thing to always keep an eye over the things that surround you and with the use of the internet this becomes possible to them. However, it cannot be avoided that the information in their site may be subjected to criticisms because they are the one who supports the main website. But to avoid such dilemma to the company, they must make sure that each of the information that is being posted to the site will definitely serious back up information and reliable sources.               Credit:ivythesis.typepad.com

BT Group Company and Data Analysis

Managing Information Module Part B: Obtaining Information from a Company and Data Analysis Introduction Bt Group plc i...

Research Paper on HSBC Holdings, a British financial holding company

CHAPTER 1 Statement of the Problem In every country, it is important that its resources are managed effectively and properly to avoid depletion of country’s wealth for the benefits of its citizen. Banks played important roles in managing a country’s resources and wealth. They also played key roles in the development and improvement of a country’s economy. When economy is mentioned, people immediately thinks of the businesses, large corporations, small and medium enterprises and multinational companies that provide people job where they get their income, manufacture what the people needs and attract many other investments that greatly contribute to a country’s development.                The flow of capital is important in the business world. Entrepreneurs are constantly in need of capital to start new businesses or to keep the flow of current operations moving. This means that the demand of capital is also constant. Unfortunately, it is a fact that current business operations are not also up to the challenge of supplying the capital needed to support the continuation of the business endeavors.  This means that entrepreneurs are always on the lookout for sources of capital.               Banks and other financial firms are usually on the rescue to businesses that are in need of capital. They offer loans that would allow businesses to get the capital they need. Banks and other financial institutions that offer loans to businesses are important. This is the case since money borrowing is an integral part of business and economic life. It is the case that almost everyone has experienced borrowing money at one point or another. It is said that there are both positive and negative impacts of business models on the banking industry of Hong Kong. Therefore, the merits of this hypothesis must be analyzed and meaningful ideas concerning the positive and negative impacts of business models on the banking industry of Hong Kong must be determined and formulated from this proposal. Purpose of the Study This thesis will be done so that the pertinent positive and negative impacts of business models on the banking industry of Hong Kong can be established, including the essential elements that will make business models on the banking industry of Hong Kong successful. Hopefully, great ideas like how the positive and negative impacts of business models on the banking industry of Hong Kong will be showed.             This thesis also has the objective to improve the knowledge and understanding of people concerning the positive and negative impacts of business models on the banking industry of Hong Kong and provide an excellent overview of the current challenges the banking industry of Hong Kong is facing because of the lack of emergence of business models. Significance of the Study If the pertinent positive and negative impacts of business models on the banking industry of Hong Kong can be established, this dissertation will become very advantageous to other nations that are being hounded by various banking industry issues. Also, if the results of this dissertation will be validated, this dissertation will become very important in figuring out ways where governments can handle the implementation of business models in their banking industry. Research Questions Particularly this dissertation will answer the following queries: 1.      What pertinent positive and negative business models on the banking industry of Hong Kong were established? 2.      What particular options can be chosen by HSBC in order to successfully mitigate the impacts of business models? Assumptions The foundations of this dissertation will be based on the following assumptions: (a) all the respondents will be using the proper processes as detailed in the rules for the particular methods being used, and (b) all respondents will give truthful answers to the queries of the thesis. Limitations Time will be the most obvious limitation of this dissertation, and this could result to the failure to attain the long-term goals. Personal aspects of the respondents will not be tackled, and this could establish plenty of information that can be exploited within the thesis. As this thesis will use only a minute population of participants, the outputs may not be the opinions of the entire respondents.   Conceptual Framework   CHAPTER 2: REVIEW OF RELATED LITERATURE   Hong Kong Shanghai Banking Corporation Holdings HSBC Holdings, a British financial holding company with origins in Hong Kong and Shanghai, where offices were opened in 1865 under a special charter which allowed Hong Kong rather than London as a headquarter location. The bank remained an eastern force until the 1950s, when overexposure to the crown colony and its textile industry pointed to a need for geographical diversification. A worldwide scan was made with rather disappointing results. Australia and Canada were protectionistic and so was the Continent, in addition to being over-regulated and well served by its own talent. Central West Africa was saturated by British banks and, after independence; the new countries gave priority to domestic banks. Only the USA was attractive because it offered dollar assets in a dollar-hungry world (Laulajainen, 2003).   But before anything could be done about it, events elsewhere called attention. HSBC was in intense competition all over Asia with Chase Manhattan which showed interest in a small bank in India and Malaysia. HSBC pre-empted by purchasing the bank in 1959. In the same year another defensive acquisition became necessary, when an investor group tried to buy the British Bank of the Middle East, strip its assets and sell the branches to HSBC, which did the bulk of its Middle East business through the bank. For example, Kuwaiti authorities kept half of their money there. With the purchase came a chain of retail branches in Cyprus. A few years later a banking crisis erupted in Hong Kong. HSBC was not seriously affected but Hang Seng Bank, the colony’s second largest, was about to flounder in a run. Chase offered help but Hang Seng preferred HSBC, because of its local roots, and sold it a majority stake in 1965. These three deals illuminate the difference between corporate strategy and the realities of the marketplace (King, 1991).   Diversification had taken a beating although it was only in 2000 when acquisitions in Asia became topical again, in a small way. Two of them were part of the private banking drive, PCIB Savings Bank in the Manila area and Taiwan’s leading asset manager China Securities Investment Trust Corp. in 2001, to be followed by an 8 per cent stake in the Bank of Shanghai. HSBC had returned to its roots. Afterwards many more events unfolded including the turnover of Hong Kong to china this prompted HSBC to transfer headquarters to United Kingdom (Laulajainen, 2003).   HSBC sees the Internet as one of several exciting new media, to be incorporated as an integral part of its working. The bank has concluded that e-commerce will change the fabric of the financial services sector and sees it as a way of finding new customers all over the world and improving its services to existing customers. It intends to use e-commerce to reorganize the business so as to provide higher-quality customer services more efficiently. HSBC will be able to link its customers to the full range of international services and manage their processing wherever it chooses, which the bank sees as a considerable competitive advantage(Tansey 2002). HSBC has adopted a clicks and mortar strategy. This requires that customer Internet offerings must meet three criteria: customer needs and preferences come first; they must fit HSBC’s existing distribution channels; and they must be multinational in scope. Recently the group has been reorganizing its work for the e-age and putting in place some major components of such a strategy. In 2000, over US billion was spent on technology, including a significant proportion on dot.com initiatives. HSBC aspires to be one of the first to provide customers with facilities through the Internet on a multi-geographical and multi-product, basis (Tansey 2002).   Employees and Financial facts HSBC has over 253,000 employees at present. The company employs and manages diverse kinds of people all around the world. Such is done by the company because they believe that these people can give them a balanced and well rounded organization. This also makes the company adaptable to different kinds of situation. The company wants to reach out to all parts of employment for maximum productivity and value. The company believes that a company’s difference with its competitors can be seen in the way it serves it consumers and the way they treat their employees (Hong Kong Shanghai Banking Corporation, 2000).   The first figure will show some of the financial figures of the company from December 2002 to December 2004 in millions of US Dollars. This will evaluate the company’s performance.  This is taken from hoovers.com. Figure 1 Financial Figures of HSBC Year Revenue Operating Income Total Net Income 2004 70,860 36,787 11,840 2003 56,077 27,186 8,774 2002 40,373 22,785 6,239   As the figures show the company’s revenue did well in 3 years. The revenue increased as the years progressed. The revenue of the company greatly increased during the 3 years as it was on the 40,000 mark in 2002 and eventually reached the 70,000 mark in 2004. The company’s operating income also increased during the three years. Unlike the company’s revenue the operating income did not gave a huge rise in figures, although it increased from 2002 to 2004 it did not raise high like the revenue. The Total net income of the company also rose during the 3 years but just like the operating income it did not rise as high as the revenue did. The financial performance of the company means it is achieving its goal. This also means it has better products and services than its competitors.  This also means that the company should improve more or maintain the performance of its finances.  Competitors Competitors are one of the things the company should look out for. They are one of the reasons companies do not reach their goal. The second figure will compare some facts about the company against its competitors. This is also taken from hoovers.com. Figure 2 HSBC and its Competitors   HSBC Barclays Citigroup Lloyds TSB Annual Sales (In Million $) 70,860 40,016 120,318 30,265 Employees 253,000 77,000 294,000 69,985 Market Capital (In Million $) 183,178.5 73,430 237,586 54,130.6   As the second figure shows Citigroup has an advantage against its competitors. It has acquired bigger annual sales. It also has more employees it uses for different purposes. Among the competitors it has the biggest market capital. HSBC follows Citigroup with regards to annual sales, employees and market capital. Barclays and Lloyds TSB follow the two. This shows the companies HSBC should be wary of. This also shows which company should HSBC have an equal performance or exceed the said company’s performance.  The Business Model used HSBC uses a business model that provides business solution relating to knowledge management and E-business. In today’s fast-paced business environment, it’s more crucial than ever those companies exploit technology to the fullest extent. HSBC has always been committed to providing the most cost-effective services to its customers and they are continually developing applications that support new business initiatives that encompass Internet, mobile phone banking and data warehousing. It is therefore important that they deploy a comprehensive solution that can manage their vast IT infrastructure in the data center. HSBC’s data center is one of the largest in Asia, handling hundreds of transactions per second. As the bank implements new hardware platforms, AIX and Windows NT, for instance, and pursues new business initiatives such as Internet banking, it needs a solution that offers rich and robust system management functionality. The company believes the Unicenter TNG is the system that can do it (M2 Presswire 2000). Business Model of HSBC   Bank Technologies The computer system used by HSBC provides different benefits to the company. These benefits include competitive advantage against competitors, achievement of the company’s goal, better service given to the customers, and increase profits for the company.  The computer system gives the company competitive advantage against its competitors. Through the system the company can make an effective knowledge management system and an appropriate e-business technology can be used to transact with online customers. The computer based system helps the company achieve its goal. Through the system the company does well in its field thus the goal it has can be closer to being reached. The computer based system helped the company in giving better service to the clients. The system improved how service was given to the clients; it created measures that changed the meaning of serving the clients. Through these benefits of the system the company’s profitability and income increase and the problems were given appropriate action. Role of Central Banks in Hong Kong According Afuah (2003), central banking is a phenomenon of the twentieth century. To some extent, central banks were created as a means of financial support for the government. However, this is not the perception of most people in today’s context. In addition, the central bank is believed to be essential in the market economy of any country. However, this brings about the question of Hong Kong, which has a thriving economy but does not have a central bank.               Recently, until today, central banks around the world depend on direct administrative and selective measures to control money as well as credit. However, the prestige and authority of central banks was not as high as it is today. Both prestige and authority of central banks were once lost, even in industrialized countries, during the 1930s and 1940s. In turn, this resulted to the lost of central banks’ statutory independence. This decline of central banks as well as the banking system in general was brought about by the depression as well as the war. It was only in the past decade that monetary policy been in the cutting edge of national policies once again. Summary Technological advances and business models, including non-technical ones, are coming more quickly than ever before, thereby affecting all aspects of a typical company. These advances can be seen in the knowledge management systems and E-business systems. HSBC is one of the companies that sees the Internet as one of several exciting new media, to be incorporated as an integral part of its working business model. HSBC uses a business model that provides business solution relating to knowledge management and E-business namely the Unicenter TNG. This business model gives benefits that include competitive advantage against competitors, achievement of the company’s goal, better service given to the customers, and increase profits for the company. The advanced technologies prove to be vital to a company. It creates so many changes to a company. These advanced technology come in different forms and characteristics. One of these forms is the computer-based system. The use of the system changes all practices and techniques implemented by the company. The system is very important for the company because it will be the one forming the company’s future.  The system helped in reconfiguring the company and giving it a brighter future. With proper use of the system anything desired by the company can be reached.   CHAPTER 3: METHODOLOGY               This proposal will be done so that the pertinent positive and negative impacts of business models on the banking industry of Hong Kong can be established. In this thesis, the interview process of collecting information will be used. Methods of Research Utilized               For this thesis, the process of description was used. In this process, it was pertinent that the goals of the thesis would be achieved immediately and with little expenses. It also implied the gathering of wild observations. Nevertheless, it became very difficult to waive the other practical and logical information where further critical data can be found. Therefore, this thesis utilized the process of description. The process of description uses various hypotheses in the investigation process.  The main objective of using this process is to illustrate the origin of an event, as it happens at a certain period during the conducting of the thesis and to exploit the reasons why a specific situation happened. The researcher chose to utilize this type of method because it was the wish of the researcher to gather primary information from the participants in order to have logical and practical evaluations and assertions for the thesis. In order to have logical results and be able to give sound assertions, this thesis used two major types of research: first-hand and second-hand.  First-hand information was gathered through conducting this thesis. Questionnaire survey and interviews were also done. Meanwhile, the second-hand information was gathered from past researches concerning business models and the banking industry of Hong Kong.  The Research Design             The research design “onion” was utilized in this thesis because the author believed it to be the perfect research design. In the onion research design, the process of investigation and doing the thesis can be compared to removing the outer skin of an onion—in order to arrive to the core topic and the manner to gather the important information that will be critical to determining the solutions to the research queries, critical issues have to be tackled first. With the mentioned research design, the author was able to establish a framework regarding the processes that can perfectly used for this thesis. Saunders et al (2003) mentioned that even though it is not typical for people to primarily take into consideration the processes of doing the thesis through choosing which research methods are appropriate, for example, using a constructed questionnaire or doing focus group discussions, ideas on this query can be connected to the core of the ‘onion’ research design. That is, in order to arrive to the core topic and the manner to gather the important information that will be critical to determining the solutions to the research queries, critical issues have to be tackled first: the primary stage poses the query of the perspectives that the thesis will incorporate, the second stage talks about the topic of processes that the thesis will undergo in connection with the perspectives of the thesis, the third stage investigates the research methods that are available for the thesis, the fourth stage pertains to the duration that the author will have to take into consideration while doing the thesis, and the last stage is the information gathering processes to be utilized. Instruments utilized A pre-constructed questionnaire, or the kind of questionnaire that is normally filled up by the participants (Saunders et al, 2003), had been made by the author to collect the necessary information. To even improve this thesis on global war on terror, the author made the pre-constructed questionnaire wherein the participants gave a rating to every question.             The reason for choosing the utilization of the questionnaire for the gathering o pertinent information was \because of the critical value of the data being studied and gathered.  It is essential for the participants to be very frank and sincere in their answers. The utilization of the questionnaire enabled the author to examine the perspectives and opinions of the participants.             The pre-constructed questionnaires also utilized open-ended queries to gather as many data that can be obtained regarding the thoughts of respondent regarding the positive and negative impacts of business models on the banking industry of Hong Kong and HSBC as well.  Interviews undertaken took about only 30 minutes to 60 minutes. The queries that were utilized during the interview process were formulated using the research queries for this thesis as the foundation; they have been evaluated, examined thoroughly by the thesis advisers. The author also established an informal interview. In this case, the author persuaded the respondents to clear out opinions that cannot be easily understood and to give further explanations on vague thoughts. The author did not reveal his personal convictions and perspectives concerning the global war on terror to the respondents. Data Representation and Validity             To guarantee the validity of interview outputs, a series of tests were done, or similar tests to the exact batch of respondents on two separate times were done.  This method gave emphasis to that fact that there can be no significant alterations in the variables being investigated between the two separate times.  Therefore, two examinations were also done: a pretest or the initial examination was initiated and a post-examination. The respondents were interrogated two times themselves. Aside from that, the suggested methodologies, outlined interview and pre-constructed questionnaire were done in excellent fashion.  This portion illustrated preciseness and perfection in the discussions. Description of the Information utilized in the Thesis             This thesis also used second-hand information. Second-hand information involved unprocessed information and well-known research studies, including information that can be deduced by numbers and through quality. Saunders et al (2003) stated that second-hand information can be classified into three primary categories: documentary information, information gathered through interviews, and those gathered from various literatures. Documentary second-hand information pertain to those often utilized in dissertations that also utilize fist-hand information gathering processes, even though such information can also be utilized by themselves or be integrated with other second-hand information. On the other hand, information gathered through interviews are those information gathered through the use of pre-constructed questionnaires that have already been investigated for their main usage; normally, such information pertain to companies, individuals or firms and can be accessed as merged information tables or as unprocessed information stored in computer files. Statistical Treatment of the Information When the whole survey results have been gathered, the author will utilize statistics to process all the information. The statistical formula to be utilized in the survey results will be the following:   1.       Percentage – to identify the degree of the answers to the survey.             n % = ——– x 100        ;           n – number of answers             N                                 N – total number of participants   2.       Weighted Mean               f1x1 + f2x2  + f3x3 + f4x4  + f5x5 x= ———————————————  ;                         xt   where:             f – weight given to each answer                         x – number of answers                         xt – total number of answers The author will be aided by the SPSS in getting the statistical results for this research.    Ethical Considerations             In respect with following the methodologies and in the spirit of uplifting the excellence of this thesis, the author did all initiatives to guarantee that ethics of conducting the research were completely obeyed.  All information gathered from the respondents was stored in a safe place. The private details of the participants and their ratings were not discussed. The perfect analytic methods for the information were chosen through the aid of the statistical analysis, and all outputs wee discussed in the thesis.   Doing the Interview             In the process of doing the interviews, the author persuaded the respondents to clear out unclear opinions or to give more explanations on short answers. The author was very specific did not try, in any manner, to change the opinions of the respondents. In order to achieve this, the author did not reveal his personal perspectives and beliefs regarding the topic. In addition, the queries that were asked to the respondents were stated with clarity, so that the respondents can easily comprehend them, and they were stated with calmness. The author also did not ask any long queries, or those queries that were hard for the respondents to understand, due to the fact that Robson (2002) stated that by doing long interrogations, the chance to gather an answer for every element the author likes to investigate can be blown away. The author also did not include lots of theories, as the author’s comprehension of such ideas and concepts may be different from the respondents. In addition, during the course of the discussion, the author was pushing to build confidence and gain the respect of the respondents through avoiding being so boring and by always paying attention to the answers of the respondents. Lastly, the author guaranteed that the interrogation process was not too long and did not eat up the schedule of the participants, because this could have started improper behaviour from the participants. Summary              As mentioned in this chapter, the author will perform several steps. In the research design, the author will gather second-hand information and will establish and pursue an interview. In this step, the survey questionnaires will be submitted for the approval of the instructors. During the information gathering process, the author will gather and analyze the information gathered from the interviews and discussions. The author will then synthesize this information and from these, results and suggestions will be established. In summary, the author will perform four major stages to finish the research. Step 1: Problem Establishment for Research   In the initial step, the author establishes the particular emphasis of the dilemma to be investigated. This includes analyzing present ideas, concepts, and implementation procedures from expert studies. This procedure aids the author in merging conceptual views and results with the author’s personal comprehension of the dilemma, and understand the element of the dilemma the author want to investigate and know more about. Step 2: Implementation of the Questionnaire               After the analysis of previous research studies, the author identifies queries for the survey and establishes a set of queries for the interview. These are then submitted to the instructor for authentication purposes. Step 3: Information Gathering and Investigation In the third step, the author will gather and study information for the objectives of establishing essential variables particular to their environment. This information will empower the author to attain a particular comprehension of the issue. Step 4: Information Analysis and Formulation of Suggestions   In the last step, the author will summarize results from the past steps and related past studies. The emphasis of this step is to analyze this information to change current hypotheses and establish various variables, as well as formulating suggestions in accordance on fresh comprehension. During this step, investigation-based and necessary suggestions for implementation will be formulated.   CHAPTER 4: CASE STUDY   Introduction   Customer satisfaction in the business models is a major issue in almost all banking sectors. This can basically determine the success and profitability of a bank as a satisfied customer would most likely to ‘spread the good word’ or would have be happy to do business again with the bank. It is an important theoretical and practical issue for banks in Hong Kong like HSBC that implements business models. With positive results in most research, the significance of customer satisfaction and business models in strategy development for a “market oriented’’ and “customer focused’’ bank like HSBC cannot be underestimated. Specifically, Barlow (2005) stated that customer satisfaction and business models are critical for Hong Kong banks, because of their impact on the bank’s profit. With this, there is the challenge for Hong Kong banks to deliver a satisfactory quality service. After all, customer satisfaction is inarguably one of the two core concepts that are at the root of the business model theory and practice. The other one is business model service quality but it can be said it is not purely intertwined with customer satisfaction as a customer can be satisfied even though the business model is not of high quality. But then, effective business models among Hong Kong banks are considered a must for customer retention and loyalty, and undoubtedly help in realizing economic goals like profitability, market share, return on investment and other corporate target (Ghemawat, 1997). This paper presents the report about customer satisfaction on the business models in the Hong Kong banking industry and HSBC and links it with the profit of the bank. As mentioned, this theory is also plays an important role to banks. The study will focus specifically on HSBC business models and bank services. The study will look at how HSBC retains and satisfies its customers and what type of business models they used and how it can be further improved. Thus, the importance of customer and managers assessment will be given enough consideration. According to Tuccillo (2002), effective business models bring many benefits as satisfied customers are not very price sensitive, buy additional products, are less influenced by competitors and stay loyal longer. Tuccillo (2002) stated that business models have been deemed directly to affect customer retention and banks’ market share. In Hong Kong banks, business model quality, business model features, and customer-complaint handling determine customer satisfaction. Some factors that affect satisfaction on business models are extended hours of operation and competitive interest rates as confirmed by the study of Gardner (2004). In addition, there are researchers who discuss the links between satisfaction, loyalty, and profitability. They are proponents of the theory called service management, which argues that “customer satisfaction on business models is the result of a customer’s perception of the value received in a transaction or relationship relative to the value expected from transactions or relationships with competing vendors. Pertaining to this theory, Cross (1998) stated: “Business models, including relationship continuance, increased scale or scope of relationship, and recommendation (word of mouth advertising) result from customers’ beliefs that the quantity of value received from one business model is greater than that available from other business models”. They continued: “Business models, in one or more of the forms noted above, creates increased profit through enhanced revenues, reduced costs to acquire customers, lower customer-price sensitivity, and decreased costs to serve customers familiar with a firm’s service delivery system” (Cross, 1998). With respect to the concepts of customer satisfaction in the business models of HSBC, this paper will aim to find out what factors contribute to customer satisfaction in the business models of the banking industry in Hong Kong and determine if there is an existing difference between the perception of managers and customers regarding satisfactory business models. Thus, the survey method, also known as the questionnaire method, will be used in gathering the data. Surveys are the most common form of research method for collection of primary data. One of its purpose is to describe, e.g., to count the frequency of some event or to assess the distribution of some variables such as proportion of the population of different age groups, gender, educational attainment, and other information of similar nature about the population (Rowland, 2003).   CHAPTER 5: RESULTS AND DISCUSSIONS   Basically, the respondents of the study will consist of managers and bank customers of HSBC. The criteria for the customers are that they should at least do business with the company for two months up. The reason for this is to make sure that they have enough time to evaluate the business models of HSBC and if it satisfies them. The managers to be surveyed, on the other hand, should have knowledge about customer complains and customer satisfaction in the business models of the bank. They should be aware of what is usually being complained and being praised concerning their business models. The survey will be conducted on five branches of HSBC in Hong Kong. The sampling technique to be used is convenience sampling to make the process faster and easier. 5 customers from each branch will be surveyed. One manager on the other hand, will be surveyed from each branch for basic information about their customer satisfaction approach and how they measure it. Part 1. Profile of Respondents This part of the paper shall be discussing the general profile of the respondents. The first to be taken into consideration is the age of the respondents. The responses are summarized in the figure below. The exhibit shows that a major part of the respondents are rather mature (35 above), consisting of 30%. This might be reflected by the fact that the predominant positions of the respondents are in the managerial level, which requires a considerable amount of working experience. This is further asserted by the 27% who were in their early thirties and the 20% in their late twenties. The next to be taken into consideration is the gender of the respondents. Apparently, a major part of the respondents constitute the male gender. This also states that majority of the respondents related to HSBC adheres to more masculine perspectives. Nevertheless, a 47% of the respondents are female. On the other hand, with the seemingly patriarchal culture in organization, it could be posited that females were not that good in the position. Exhibit 3. Likewise, the respondents were asked for their educational attainment and the report shows 53 % of them are college level. The survey indicates that most of the respondents are college level that is engage to the study. The diversity of the population is further asserted when the respondents were asked regarding their professional history. This data illustrate the maturity of the respondents particularly in terms of experience. On the other hand, the apparent youthfulness of the respondents, provided by their age and their lack of professional experience could not be considered as deterrence to their responses considering that the researcher has made sure the respondents have been connected with the bank for at least a month. Moreover, there is a noticeable distinction of the respective positions of the younger generations in their respective perceptions towards the impact customer satisfaction on the bank’s services. Part 2. Perception towards Customer Satisfaction on HSBC’s business models Actually, a self-administered questionnaire, or the type of questionnaire that is usually completed by respondents (Saunders et al, 2003), was constructed to gather the needed data. This section comprised of a set of attitude statements that intends to determine the level of agreement or disagreement using a five-point Likert scale. In the Likert technique, the degree of agreement or disagreement) is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses. (Underwood, 2004) The equivalent weights for the answers were: Range                                                            Interpretation             4.50 – 5.00                                                    Strongly Agree             3.50 – 4.49                                                    Agree             2.50 – 3.49                                                    Uncertain             1.50 – 2.49                                                    Disagree                      0.00 – 1.49                                                    Strongly Disagree   Exhibit 4. Perception towards Customer Satisfaction on HSBC’s Business Models Statements 5 4 3 2 1 Weighted Mean Interpretation 1. The bank is utilizing a protocol for securing information of bank customers. 1 15 10 4 0 3.4333 Uncertain 2. The bank ensures that loss of assets and privacy due to breaches in the security of transactions is avoided. 8 15 1 6 0 3.8333 Agree 3. The bank adopts a customer-focused model. 1 12 16 1 0 3.4333 Uncertain 4. The bank is handling customers’ complaints effectively. 1 7 22 0 0 3.3 Uncertain 5. The bank management is addressing the need to cope with technological changes. 6 14 7 2 1 3.7333 Agree 6. The bank management is addressing the issues on security and privacy. 1 16 13 0 0 3.6 Agree 7. The bank management is responding to the need to have qualified and competent bank personnel. 7 20 1 2 0 4.0667 Agree 8. The bank management is responding to the needs of its customers. 2 20 8 0 0 3.8 Agree 9. The services offered by this Bank is excellent. 6 18 5 1 0 3.9667 Agree 10. All in all, I am satisfied to the services provided by HSBC. 1 14 13 1 1 3.4333 Uncertain The table above presented the perception of the respondents towards satisfaction on the business models of HSBC. Basically, the summary of results yields to Agree interpretation except to statements 1, 3, 4 and 10.  Basically, the 3.83 weighted mean in question no. 2 provides us an idea to conclude that bank ensures that loss of assets and privacy due to breaches in the security of transactions is avoided.  Moreover, majority of the respondents agreed that bank management is responding to the needs of its customers since majority of them stated that the business models offered by HSBC are excellent.             To validate the efficiency of the business models in ABC Bank, the research used the t-test analysis to determine the difference of perceptions of surveyed managers and customers regarding to its overall assessment. Then, we have, Table 1   This table displays the number of cases, mean value, standard deviation, and standard error for the test variable(s) within categories defined by the grouping variable. Since the Independent Samples T Test procedure compares the two group means, it is useful to know what the mean values are.   Table 2     Basically, the Independent-Samples T Test procedure compares means for two groups of cases. The mean values for the two groups are displayed in the Group Statistics table. Since the significance value for the Levene test is high (typically greater that 0.05), then we have to use the results that assume equal variances for both groups. And since there is a low significance value for the t test (typically less than 0.05), then this indicates that there is a significant difference between the two group means. Meaning to say, the perception of managers is different to the perception of customers regarding the overall status of satisfaction in the business models of HSBC. Interview Portion This part of the questionnaire is about the basic role and performance of HSBC, the second part is about the power of HSBC in the banking sector of Hong Kong while the third part is for the determination of the developmental role of HSBC. The third part also contains specific questions that require definite answers while the first two parts are evaluation of HSBC, in which the interviewees simply check the box that corresponds to their answers.   On the first part, it was found out that majority of the management of commercial banks operating in Hong Kong perceive HSBC to have fairly acceptable regulatory and supervisory role, but commented that the central bank needs further amendments. Four of the seven managers answered “unaccepted” on the monetary policy being implemented by HSBC but noted in summary that some of the regulations included in the monetary policy being hurt the commercial banking sector in some ways like the high minimum capital requirements that is why they cannot open more branches in the country. We also want to lower credit interests so that the banks can attract the farmers and low-income individuals and families that they think has the potential to pay debts. The following data are obtained from the interviews conducted with the managers of the seven commercial banks operating in Hong Kong: Performance of HSBC Very Acceptable Acceptable Neither Acceptable nor Unacceptable Unacceptable Very Unacceptable Business Models 7 0 0 0 0 Regulatory Role 0 4 2 1 0 Supervisory Role 0 5 2 0 0 Monetary Policy 0 0 3 4 0 Economic Development 2 3 1 1 0 Market Stability 0 2 4 1 0 Interest Rate 0 3 2 2 0 Table2. Performance of HSBC Rated by Commercial Banks   On the other hand they commended HSBC on its effort to promote economic development and to reduce poverty in Hong Kong. One of the managers noted that the programs for poverty alleviation which one of the promoters is HSBC is really of great importance and are badly needed by the country. They are aware other commercial banks in other country hesitate to invest in Hong Kong because of the poverty in the country and the fear of not getting a good return on investment.     Totally To a large extent To some extent A little Not at all To what extent can HSBC help in developing the banking sector of Hong Kong? 0 5 2 0 0 To what extent the bank has power within the banking sector? 0 3 3 1 0 To what extent can the modernization of the banking sector helps achieve the effectiveness of the financial sector in Hong Kong ? 1 4 2 0 0   Table 3. Power of HSBC on the Banking Sector of Hong Kong Rated by Commercial Banks           Very Effective Fairly Effective Not very Effective Not effective at all How effective is HSBC in facilitating the banking sector of Hong Kong? 0 3 4 0 How effective is HSBC in facilitating the development of capital market through the private sector? 0 2 5 0   Table 4.Effectiveness of HSBC             In facilitating the banking sector, most bank managers perceive the central bank to be not very effective as well as in facilitating the development of capital market through the private sector. They added that the majority of the small and medium enterprises in the country lack awareness and knowledge on the importance of financial intermediation as well as activities that that will boost the financial stability. The local businesses also lack strategies on how to improve their businesses thus they do not see the needs to form partnerships with commercial banks and the financial support it can provide. Consequently, local businesses do not have much property that should serve as collateral that they can use in case they need money for the expansion of their businesses.               The questionnaire also includes specific questions concerning the developmental roles of HSBC specifically about the technical and financial resources that must be allocated by HSBC to the agricultural sector and to its rehabilitation since it is the foremost important sector that needed attention from the central bank with the help of the banking sector. In summary the opinions of the bank officials were as follows: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; text-autospace: none"> A great percentage of the financial as well as technical resources must be allocated by HSBC to the agricultural sector because most of country’s employment depends on this sector. If the government will allocate sufficient funds for this particular sector, the needs and financial supports required for the importation of agricultural products for the food supply of the country will be lessened. </li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; text-autospace: none"> Although the bank officials are not aware of the specific amount that should be contributed by the government and the private sector for the rehabilitation of the agriculture sector, they are aware of the importance of financing this sector. The government is the primary authority aware of this matter. Agriculture and mining are the primary skills of the people of Hong Kong thus it should be given more importance to provide employment and source of income to the people. The government should also finance the manufacturing and industrial sectors but should first promote effective strategies in pursuing investors especially the foreign investors.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; text-autospace: none"> What other private sectors can do is to further develop their organizations, implement training and developments to their employees and conduct different activities like venturing to partnerships and mergers and taking risk in diversifying their products or services. In the part of the commercial banks, they can and are willing to participate in activities such as lending money to farmers in terms and conditions appropriate for them. They need enough capital to cultivate their land; they can have their lands as the collateral while the government and the banking sector provide the farmers the programs and education as well as support on how to make a better return on investment.  </li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; text-autospace: none"> HSBC is finding it hard to attract investors primarily due to the background of the country, civil wars and corruption among government officials and secondarily due to very limited human resources available in the country. Thus, to foster and investor-friendly economic environment, the central bank should promote policy that not only for the benefit of the government but also for the benefit of the investors themselves. The policy should include lower capital requirements and strategies in making the foreign exchange more stable. The government might also want to create an economic zone with lower tax and other incentives to attract foreign investors. The central bank should also advise the government to stabilize the political and legal system of the country because a more politically stable countries especially the developing ones are investor-friendly economic environment.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; text-autospace: none"> Sustainable economy means having to sustain good established inflation rate, foreign exchange, and market stability and can be achieved by encouraging business to engage in revenue-making transactions and develop and implement the right mix of policies. To be able for HSBC to develop and implement the right mix of policy by collaborating with different agencies locally and internationally, and getting the insights of different financial organizations such as the commercial banks in order to determine which policies can help improve the banking sector and can further help in economic development. </li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%; text-autospace: none"> </li> </ul> CHAPTER 6: RECOMMENDATIONS It is clear that the business models being implemented by HSBC are very effective. As shown in the study, its costumers are satisfied to the business models services provided by the banking industry of Hong Kong. HSBC is meeting the current demands for customer services.  There are various benefits that HSBC gets from its satisfied customers because of its effective business models. One of which is the loyalty of the consumer. This is reflected in the loyalty behavior of the customer. This only happens when a customer is satisfied or exceedingly satisfied. It is also possible that the satisfied costumer will spread to others about the good services he/she gets. Therefore, it is likely that other people who learn about the product/service will also purchase the product/service. Another is the development to the costumer of a “subconscious monopoly,” meaning, he/she does not buy other services other than those by HSBC.  Also beneficial to the bank is the tolerance by the satisfied costumers the increases in the service’s price. Consumer Satisfaction Program’s goal is for the Hong Kong banking industry to make sure that their customers are satisfied with the business models and services they offer. As customers’ preferences change and competition in the market tightens, companies need to keep their customers as well as get other prospective customers. To be able to do that, Hong Kong banks must always monitor the changes in their customers preferences as well as how bad or how good their respective banks perform vis-à-vis their competitors. However, knowing the needs and preferences of the customers is not enough. As changes occur, Hong Kong banks must also initiate changes within their respective organization. Companies not only the banking sector must be able to adapt to the changing environment so as for them to be able to effectively and efficiently address whatever their customers’ needs are. CHAPTER 7: CONCLUSION Based on the results, findings and analyses of this research, the following conclusions are evaluated and formulated: The current state of the banking sector of Hong Kong has improved since the existence of HSBC, a bank whose primary objective is the promotion of financial stability. From only two, there are now seven commercial HSBC banks doing business in the country. Together with their branches, there are now a total of 31 banks across Asia. One of the accomplishments of HSBC was the establishment of rural banks that also lead to the creation of other microfinance institutions. The establishment of a central bank whose primary role is the regulation and supervision of the banking sector gave commercial banks the confidence to invest in the country. To facilitate the banking system of the country, HSBC formulates and implements monetary policy as part of its business model, act as the banker to commercial banks and regulates and supervises the banking sector using some international standards and codes particularly the IMF transparency standards on monetary and fiscal policy. The IMF itself assesses the level of compliance of HSBC to these standards thus HSBC has been strict in regulating and supervising commercial banks. However, despite of its use of international standards, the monetary policy of HSBC is being criticized by the commercial banks because it has not been effective in maintaining inflation rate and stabilizing the price rate as well as the foreign exchange rate which, in the past, years, has been getting worse. It can be evaluated that the adherence to international standards by HSBC is for the approval of grants and loans needed by the country in pursuing its developmental activities such as poverty alleviation and improvement of the agricultural sector of the country. HSBC has also agreed to harmonize its financial regulations with the regulation of the member banks. However, it was found out that there is no direct significance between business model harmonization and financial stability. But it was also found out that harmonization of business model can help improve the capital circulation in the country. However, Hong Kong does not take advantage of this opportunity but rather take more focus on developmental activities without realizing that improvement in capital circulation has direct relationship with the developmental activities the bank is pursuing. When there is improved capital circulation, private sectors will be encouraged to be engaged in entrepreneurship, resulting to increased small and medium enterprises in the country.   With regards to the banking sector, HSBC has not been very effective in facilitating the banking sector of Hong Kong. There are many aspect of their way of regulating the banking sector such as the high capital and reserve requirements which give pressure on the banks while discouraging the banks who wanted to invest in Hong Kong. Therefore, the policy and regulations of the central bank contributes to the unfriendliness of the investment climate of the country. The banking sector of Hong Kong is not yet modernized unlike the banking sector of other countries. Too much involvement of HSBC in developmental activities is the main reason behind why its banking sector is still underdeveloped. HSBC has no clear statement on how it can improve the country’s poor financial infrastructure that leads to the modernization of the banking sector. Improvement of its infrastructure helps the country in attracting investors. Therefore, the countries financial system is not yet well-developed and well-functioning as does not very keen in promoting and encouraging savings and credit. Credit:ivythesis.typepad.com

Research Paper on HSBC Holdings, a British financial holding company

CHAPTER 1 Statement of the Problem In every country, it is important that its resources are managed effectively and properly to avoid de...