Research Topics: Hong Kong And Shanghai Bank Papers

HSBC Creativity and Innovation

ASSESSMENT TWO Title: report of HSBC;or newest or any organizations; Creativity and Innovation Throughout your module programmed you will have been made aware, with the help of writers on organizational learning, that, for many reasons, pockets of creativity and innovation at work are often stifled, or not encouraged; these companies often are not aware of the benefits an examination of organizational learning might bring. You have played the role of consultant within your target company over the past few weeks, and will now be well placed to put forward some views on creative and innovative practices. â€¢ Using research from your target company discuss whether you believe it is feasible to stimulate, encourage and reward creative and innovative practices within contemporary organizational settings. (Please ensure that you make specific references to the three areas outlined below.) â€¢ Suggest where you believe any blocks to such creativity might be. Wherever possible, use real-life examples to illustrate your viewpoints. â€¢ Use a briefing format i.e. an extended informal report to the head of your consultancy company (which has been called in to conduct this survey of its personnel and practices). This will require sound back-up of your views and findings by reference to appropriate organizational learning research, and your researched company practices. A reminder of your company research From Week 12 onwards, you have conducted research into the following three areas of your company for this assessment:- â€¢ Small team operations and their influence on creative working practices â€¢ Owner / Line managers encouragement of individual and/or collective innovation. â€¢ HR department support for promoting good ideas, innovative practices, etc. Criteria for Assessment â€¢ A clear knowledge of creative and innovative approaches within the workplace â€¢ Evidence and understanding shown of at least one of the three areas of company research you have made (as listed earlier) â€¢ Inclusion of supporting organizational learning principles â€¢ Evaluation of findings, demonstrating greater critical thinking than evidenced in Assignment 1 â€¢ Sound, comprehensive literature research; well-referenced â€¢ Inclusion of investigative research materials as an appendix â€¢ A well-produced briefing report, using appropriate format and language, free from typographical and grammatical error â€¢ 2000â€“2500 word length Assessment Deadline 4 pm on 3rd May 2007 Credit:ivythesis.typepad.com

HSBC Creativity and Innovation

ASSESSMENT TWO Title: report of HSBC;or newest or any organizations; Creativity and Innovation Throughout your module programmed yo...

Pay TV Competition

PCCW vs. HK Cable TV Introduction             The Pay TV industry in Hong Kong is continuously progressing; this has been made evident by the continuous developments that Pay TV cable service providers are undergoing. In the country, HK Cable TV (HKCTV) has long been considered as the leader of the industry. This was mainly because during the early times, HKCTV monopolize Hong Kong’s subscription TV station. This gave the company the chance to dominate the pay-TV market. However, the HKSAR government decided to entertain bids that will enable the development of the Pay TV market as well as the provision of more product choices to the consumers. This was initiated in 1999 and was opened officially in July 2000. While this transition had increased the market for Pay TV and product choices had been diversified, this has also significantly increased the level of competition within the industry. In particular Pay TV companies have started to compete for programs and market share. As a result, extensive promotions and business strategies had been used.               Based from the Hong Kong Annual Reports in telecommunications for 2003, a total of four local pay television program service licensees are operating in Hong Kong. These include HKCTV, PCCW, Yes TV and Galaxy. At the end of 2003, it has been noted that 130 pay TV channels had already been made available in Hong Kong and subscribers have grown considerably, which is more than 860,000. As new business entrants are continuously being established in the country, the competition within the Pay TV is expected to increase further in the future. Pacific Century CyberWorks Limited (PCCW) is among the main operators in the Pay TV market in Hong Kong and has been struggling to be the leader in the industry. While this position is currently with HKCTV’s possession, PCCW has the opportunities to be the country’s leading Pay TV company. This paper will then identify the inherent potential of PCCW to be a Pay TV leader in Hong Kong.   HK Cable TV and PCCW             HKCTV is a company owned by i-CABLE Communications Limited and is the first to offer subscription services to Hong Kong television viewers, providing over a hundred various pay channels. The company produces about ten thousand hours of television programming annually and offers about a hundred local and international channels. Programs ranging from drama series, news, documentaries, movies, science, sports, music and culture are offered by the company. Over the years, technology has begun to play a significant role in the development of the Pay TV industry.   HKCTV made the most of this trend by developing a multimedia service center in 1999. This allowed the company to offer dial-up internet services; within a short span of time, the company was able to acquire a total of 185, 000 subscribers, taking up 10% of the total market for internet services. In early 2000, service has developed due to the introduction of broadband technology. By October of the same year, about 700,000 households are already connected through broadband services. This achievement made the company among the fastest to expand with cable modem service worldwide (2006).   Initially, the company targets subscribers from the middle class markets who are willing to avail and pay for a more diverse television program selection. Eventually, HKCTV applied a pricing strategy where subscribers from the working can also enjoy the services offered by the company. Aside from this, product packages with less expensive phone line services and broad band internet access services had also been offered. Through these competitive strategies, the sales of the company have increase significantly with more than half a million subscribers (2006).   The success of the company did not stop it from introducing new services. In 2005, the company has launched the Multimedia on Board (MMOB), a service that public transit vehicles can use. Through this feature, HKCTV can provide news broadcasts for Kowloon-Canton Railway (KCR), one of the most important transport systems in the country. These broadcasts can be viewed through the Passenger Information Display System. This new service further supported the company’s aim of provided up to date news to viewers even if they are not using their computer or television sets. The MMOB and its instantaneous feature has also been an effective marketing strategy for HKCTV as it helps in attracting more and more clients for home subscriptions (2006). With these major achievements, it becomes clear how HKCTV was able to become the leader in the Pay TV industry. Nonetheless, there are also several other contenders that could rival HKCTV. One of which is Pacific Century CyberWorks Limited (PCCW), which is considered as the biggest telecommunication enterprise in the country. The company was actually established by , the younger son of , one of Hong Kong business tycoon and billionaire. One of the important deals that made PCCW a major company in Hong Kong was its acquisition of the Hong Kong Telecom in 2000. From a small dot-com holdings company during the 1990, PCCW became one of the country’s largest corporations. In addition, the company has also been a major Internet service provider through the Netvigator brand ( 2006). Though PCCW is not leading the Pay TV industry in Hong Kong, the company actually has a number of inherent strengths that could support this goal.   Opportunities for PCCW             One of the important strengths of the company that could support its aim of becoming the Pay TV leader is its financial records. Based on the reports for 2005, the company was able to achieved considerable profit increase by 43%, from HK7 million to HK.1 billion. The net profit from the shareholders had also increased by 25%, while consolidated revenue was increased 9%. Furthermore, the administrative and general expenses of the company were successfully reduced by 10%. A 33% reduction in its net debt was also achieved for the same year. Along with the positive financial outlook, the market share of the company is also growing constantly. Specifically, the company’s customer base for broadband television was at 441,000 (PCCW, 2005). With these financial advantages, PCCW clearly has access to important resources that will support its business strategies in the future. In addition, these results imply that the company has the ability to balance its expenses with that of their earnings, suggesting efficient financial decision-making capabilities. The company should then utilize this strength especially in introducing new services and using company resources that would pave the way towards market leadership.               Aside from financial strengths, the business strategies employed by the company can also be considered as competitive. In one article written by  (2006), PCCW was able to successfully introduce its new broadband television services called the Now Broadband TV; report stressed that this new service has been considered a market hit among Hong Kong viewers, and its growth showed no indications of stopping. Based on 2005 report, the customer base for Now TV has reached 549, 000 or 52%, where about HK4 or US is spent by every subscriber. The chairman of the company noted that they are expecting further growth in customer base for 2006. The company had already attempted to pursue this type of service since 2000; however, the projects had been nothing but costly failures. Despite this outcome, the continuous development of the company towards this project enabled it to develop a fiber-optic infrastructure, which supported the launch of its IPTV service.             The a la carte style of subscription offered by the company also led to the success of this strategy. In particular, this subscription model enables the customers to purchase individual channels. This is more cost-effective as compared to the bundle model applied by other service providers. Now TV also comes with a set-top box which prevents cable piracy, ensuring the quality of the programs the consumers are subscribed to. Subscribers can also access viewing statistics with this new service. Copying this strategy may be quite difficult for other cable operators since offering similar services especially to less populated areas in Hong Kong may not be a cost-effective strategy. However, it is noteworthy that other companies had been interested in PCCW’s breakthrough are interested in employing a similar tactic ( 2006).   Conclusion             HKCTV is currently considered as the leader of Pay TV industry in Hong Kong. Years of operation and satisfactory services are some of the important aspects that support its present market position. Nonetheless, based from the brief description given, PCCW apparently has distinctive competitive advantages that are not yet employed by similar companies like HKCTV. Through these unique offers and strategies, it is likely for PCCW to gain considerable market share; moreover, the support of its latest financial status can also contribute to the development of other strategic plans of the company. Aside from these, the company also has good strategic and decision-making skills that could promote success. With these important factors, PCCW has a good chance of becoming a leader in Hong Kong’s Pay TV market.   Credit:ivythesis.typepad.com

Pay TV Competition

PCCW vs. HK Cable TV Introduction The Pay TV industry in Hong Kong is continuously progressing; this has been made evident ...

Strategic Analysis

Hong Kong and Shanghai Banking Corporation (HSBC)   HSBC is one of the largest banking and financial organizations in the world. It was established in Hong Kong and Shanghai in 1865. It is the founding member of the HSBC Group, one of the largest banking and financial services globally.  It is the largest banking incorporation in the Hong Kong SAR and one of the note issuing banks. The core of the corporation is domestic commercial banking and financial services which funds them and the business locally. Its operations are linked by the high technology that delivers a broad range of products and services created to meet the needs of the local customers. HSBC serves the financial management needs of the international customer base through its personal, commercial and corporate banking service. It employs about 54,000 people of which 47,000 work for the bank itself. The consolidated assets of the bank and its subsidiaries are at HK,151 billion as of December 2006. HSBC Limited is wholly owned by the HSBC Holdings of the HSBC Group. Its growth ambitions centers on the four groups of customers. These comprises of the personal financial services, commercial banking, corporate and investment banking. Specific strategies are developed for each of these areas. The customer focus is reinforced by organizing the internal and external reporting around the customer groups. The main competitors in global banking are Citibank, JP Morgan Chase, Bank of America and Deutsche Banks. Some of these multinational banks have developed strong and profitable franchisees with a wide range of services in various local regions. Operations HSBC holds a distinctive position in the banking sphere of Hong Kong. Aside from the bulk of note issues, it has some attributes which are associated with a ‘central bank’. It serves as a banker to the government and other banks though not in exclusive terms. At some occasions, it also acts as lender of the last option. There are no statutory obligations for the HSBC to perform these functions and its quasi-central bank qualities are not sought after but came naturally towards becoming the largest operating bank in the country (2004). At the beginning of 2004, HSBC rebranded its global banking business giving it the moniker of HSBC Private Bank. According to the firm, the initiative is designed to achieve a full recognition of the HSBC Private Bank as one of the world’s largest and most powerful banks. Currently, it is the first largest private banks globally in terms of assets under management, providing trustee services to high net worth individuals and their families through 60 locations in the Americas, Asia Pacific Region, Europe and the Middle East. This move reflects the significant growth of the firm over the recent years. In 1999, it has billion in assets under management. As of June 30, 2005 the unit had 3.2 billion in assets under management and a 25 percent year-on-year rise in pre tax profits to 1 million (). Core Competence HSBC has established itself as a leading commercial bank not only in Hong Kong but worldwide.  Its long term existence has earned it the reputation which is unequaled by any other banks. Today, HSBC remains to be one of the most trusted financial institutions with operations in Europe, Asia Pacific region, America, Middle East and Africa. It maintains a sound financial status which is growing by the year. According to the Euromoney, no financial institution has been more effective than HSBC in its ability to adapt to rapidly changing market conditions and in providing products and services that keeps it ahead of the competition (). Strategy HSBC started in Hong Kong and has adapted to the global market through the creation and acquisition of subsidiaries. The strategy which started in the 1950s peaked in 1992 when one of the largest bank acquisitions in history, the purchase of the UK’s Midland Bank. It soon added various financial institutions such as Credit Commercial de France and the Republic New York Corporation (2004). The acquisition strategy stepped up in 2003 when it purchased the down-market US consumer finance group Household International for billion which represented the need for the bank for US presence in line with its global ambitions. It also reflected to be seen as a consumer based company. Two-thirds of every economy in the world is based on consumer expenditure and the more the business get astride that the better it is for the business. HSBC has shown that companies with big budgets can enter new markets by buying companies that are already there ( 2004). Unlike giant organizations acquiring established companies, HSBC maintains a uniform brand identity. Its aim is to make the name and the logo recognizable all over the world so that each local subsidiary has the psychological power of the global brand. While expanding its global presence, HSBC maintains its local approach. As with its main rival Citibank, HSBC is a global brand that operates as a retail bank all over the world. Corporate Culture HSBC used to be a federation of banks and financial services companies located and managed within the local regions it serves. The managers focus on the local rather than the global and operated with minimal involvement from the head office. But with the global nature of the competition and the need to produce greater value for the customers and the shareholders, it had to move towards the central coordination and the adoption of single global identity. In order to present itself coherently to the customers, employees, shareholders and the financial community, HSBC adopted a single unified brand which is more focused in the way it present itself. This unified brand helps the customer to better understand what the organization can offer which makes the cross-selling easier ().             HSBC has a unique control orientation. The company operates its control structure by the book which has been literally the ‘bible’ containing all the policies and the procedures that must be followed by the each division. Upon the acquisition of a new entity, the book is distributed and the organization is expected to render full compliance. This approach works well for the organization mainly because it has been operating under the clear mandate and direction of senior management and ingrained in the corporate culture of the firm. Clearly, this is unique to HSBC. It would simply not fit with other corporate cultures that operate with greater freedom and flexibility (2002). Employees are required to know and understand the different parts of the organization and feel they are part of the same organization and owe each other allegiance and cooperation By the end of 2003, HSBC launched a strategic plan which serves as a blueprint for growth and development until the year 2008. The strategy is evolutionary and builds on the key strengths of HSBC. More so, it addresses the areas which need further improvement. The vision of the Group remains constant: HSBC aims to be the premier financial service company worldwide. To be ‘leading’ means being preferred, admired and recognized for providing the customers with a fair deal.             HSBC’s core values focus on the long term ethical relationships with the clients, high productivity through cooperation, a sense of excellence, international in outlook and customer focused. The strategic plan also involves the corporate social responsibility. HSBC continue to commit itself to high standards of conduct and its obligations in the society. The groups’ Corporate Social Responsibility policies are focused on education and environment which are the primary recipients of their charitable activities.             The competitive positioning of HSBC is accomplished by introducing skills and practices from the leading retailing businesses world wide. The integration is increased with more skills sharing and technology transfer to enhance its existing activities. The key elements in achieving its objectives is to accelerate the growth rate of revenue, develop brand strategies, increase productivity and maintain the risk management and the strong position in the financial services. The development of staff skills is a critical factor and is necessary to ensure that they contribute to the success of the Group. Employees who contribute to the achievement of corporate goals are rewarded. SWOT ANALYSIS Strengths <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The size of the company allows it to control large market shares and enables it to outperform others </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> It has the ability to grow through mergers and acquisitions </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Unified global branding. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Ability to maintain a local approach in the regions where it operates </li> </ul> Weaknesses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Great and increasing dependence upon the emerging and the less developed markets as compared to their major global competitors. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> While the global branding gave HSBC an advantage, it came late to perform an integrated marketing strategy. HSBC has set up many banks in different countries under different names. All of which have separate names until they are branded together in 1998 but the lack of previous branding could have hurt the HSBC in terms of brand recognition </li> </ul> Opportunities <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> HSBC aims to be the leading financial service company globally which requires it to transform itself from a global bank to a global financial service company </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> HSBC can penetrate emerging economies  and expand its global presence </li> </ul> Threats <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The development of emerging markets results to increase vulnerability to external factors that are more likely to occur in developed markets such as instability of currency and financial market, government intervention and economic downturns. With this, the benefits of exploiting emerging markets are exceeded by the risks. </li> </ul> VALUE CHAIN ANALYSIS Primary Activities Inbound Logistics <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The work processing is offshore to lower costs economies so that the costs associated with services provided in developed countries is reduced</li> </ul> Operations <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> HSBC operates globally in number of local banks all over the world. It operates on 10,000 offices in 82 countries in Europe, Asia-Pacific region, America, Middle East and Africa. </li> </ul> Marketing and Sales   <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The HSBC adopted a unified branding in all its markets where it has operations to increase recognition of the group by the customers, stakeholders and employees all over the world. </li> </ul> Service <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> HSBC provides a wide range of financial services which includes business and commercial banking, investment banking and personal banking.</li> </ul> Support Activities Technology Development <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> It increases its capability by investing in IT infrastructures such as the investment with Sparkice Inc. which will develop the online trade finance, payments and insurance services in the business-to-business website of the company. </li> </ul> Human Resource Management <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Employees are valued within HSBC and the company recognizes the need to attract, retain and motivate talented individuals. Its value emphasizes the importance of embracing and respecting ideas, abilities and the diversity in the culture of the employees. The company has the principle of “Your point of view” which acknowledges the creativity of its employees.  Its global sourcing strategy plays an important role maintaining competitiveness in the international financial services.  </li> </ul> Firm Infrastructure <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The HSBC is headquartered in London and operates in five other regions including Europe, Hong Kong, Asia Pacific, Middle East, Africa, north and South America.  The financial services it provide range from personal, commercial and corporate banking. In 1999, the HSBC Group was established with a uniform international brand name. </li> </ul> Evaluation of Results             HSBC is one of the leading banks not only in Hong Kong but worldwide. It operates globally but also maintains its distinct position in the Hong Kong financial market. The bank has developed into a global bank through acquisition and mergers. Its strategy of expanding is basically focused on acquiring business that are already there rather than setting them up. Its competence is based on the its ability to adapt to different market conditions and provide products and services ahead of its major competitors. Another distinct quality of the bank is its ability to maintain its local approach despite its global presence. It has also developed and maintained a uniform brand identity that has increased the recognition of the brand in various countries. The competitiveness of HSBC can be attributed to the integration and sharing of skills, technology transfer and adoption of best practices. It attributes its competitive positioning in the integration and sharing of skills, technology transfer and the adoption of best practices. Its structure is basically controlled and guided by the book which is followed by each division. Such promotes cooperation and allegiance in the entire HSBC Group. It also recognizes the need to develop its human resource as they are crucial elements in achieving the goals of the corporation. Moreover, it adheres to its corporate social responsibility through its philanthropic activities for education and the environment. FINANCIAL HIGHLIGHTS HSBC (Hong Kong)                                                                                                             2006               2005 For the year                                                                                     HK$m           HK$m Net operating income before loan impairment charges               92,325           77,222 Profit before tax                                                                                52,016         45,249 Profit attributable to shareholders                                                 37,709          32,873 At year-end Shareholders’ equity                                                                       145,450        97,334 Total equity                                                                                       165,445     114,425 Total regulatory capital                                                                    183,981      154,065 Customer accounts                                                                                     1,989,467   1,735,110 Total assets                                                                                       3,150,840   2,672,532 Risk-weighted assets                                                                      1,367,607   1,238,164 Ratios                                                                                                %                    % Return on average shareholders’ equity                                                 31.1                37.4 Post-tax return on average total assets                                        1.46               1.44 Cost efficiency ratio                                                                         41.4               41.2 Net interest margin                                                                          2.31                2.14 Capital adequacy ratios – total capital                                                                                     13.5                12.4 – tier 1 capital                                                                                   12.3                11.7     The profit attributed to the shareholders for 2006 increased by HK,836 million or 14.7% to HK,709 million. The profit before taxation increased by HK,767 million or 15.0 % to HK,016 million. HSBC Holdings Plc  Revenue: .1 billion (2006) Operating: .8 billion (2006) Net income: $ 15.8 billion (2006) Leverage Analysis HSBC Holdings plc Leverage Analysis Fiscal Year[10] 2005 2004 2003 2002 2001 Fiscal Year End Date 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 Long Term Debt-            % of Earnings Before Interest & Taxes 1,006.2% 733.9% 782.5% 302.8% 306.9% Long Term Debt-            % of Earn Before Int, Tax, Depr & Amort 938.0% 673.1% 710.8% 271.8% 272.7% Long Term Debt-            % of Total Assets 14.3% 11.1% 11.3% 4.5% 4.0% Long Term Debt-            % of Total Capital 68.5% 58.5% 57.7% 36.6% 35.1% Long Term Debt-            % of Common Equity 231.6% 162.8% 156.3% 65.0% 61.7% Total Debt-            % of Earnings Before Interest & Taxes 1,384.4% 1,723.7% 1,726.0% 1,041.8% 1,152.6% Total Debt-            % of Earn Bef Int, Tax, Depr & Amort 1,290.6% 1,580.8% 1,567.9% 935.2% 1,023.9% Total Debt-            % of Total Assets 19.6% 26.0% 24.9% 15.3% 15.1% Total Debt-            % of Total Capital 94.3% 137.5% 127.3% 125.8% 131.6% Total Debt-            % of Total Capital & Short Term Debt 75.0% 76.8% 75.0% 66.5% 67.0% Total Debt-            % of Common Equity 318.7% 382.3% 344.8% 223.7% 231.6% Minority Interest-            % of Earnings Before Interest & Taxes 27.2% 68.7% 73.1% 58.8% 71.1% Minority Interest-            % of Earn Bef Int, Tax, Depr & Amort 25.4% 63.0% 66.4% 52.8% 63.2% Minority Interest-            % of Total Assets 0.4% 1.0% 1.1% 0.9% 0.9% Minority Interest-            % Total Capital 1.9% 5.5% 5.4% 7.1% 8.1% Minority Interest-            % of Common Equity 6.3% 15.2% 14.6% 12.6% 14.3% Common Equity-            % Total Assets 6.2% 7.2% 7.2% 6.8% 6.5% Common Equity-            % of Total Capital 29.6% 36.0% 36.9% 56.3% 56.8% Total Capital-            % of Total Assets 20.8% 20.0% 19.6% 12.2% 11.5% Minority Interest-            % of Earnings Before Interest & Taxes 27.2% 68.7% 73.1% 58.8% 71.1% Fixed Assets-            % of Common Equity 16.5% 21.7% 21.1% 27.3% 29.8% Dividend Payout 39.4% 37.4% 48.3% 57.8% 65.3% Funds From Operations-            % of Total Debt 6.0% 3.6% 3.2% 5.9%                           Credit:ivythesis.typepad.com

Strategic Analysis

Hong Kong and Shanghai Banking Corporation (HSBC) HSBC is one of the largest banking and financial organizations in the world. It was e...