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an extract from news article is pasted below
The bank said it would eliminate 22,000 to 25,000 full-time jobs, or about 10 percent of its work force, through restructuring by the end of 2017. It also plans to reduce its head count by an additional 25,000 positions through the sale of its underperforming businesses in Turkey and Brazil.
HSBC said that it would increase its investment in Asia, where it generates more than half of its earnings, while it seeks to cut costs by up to $5 billion annually within two years.first i thought the decision to eliminate the employees is operational strategy. but then this decision would effect many branches i guess it is corporate strategy. it is definitely not business strategy as per my understanding as it does not do anything to marketing. the decision to invest in asia should be corporate strategy. is it?
just i thought to confirm it with you. thank you.
it is about HSBC bank, it is going to cut down the employee strength globally. so it must be corporate strategy as it affects the entire company. and decision to sale the business in turkey and brazil must be corporate strategy again.
i have just read the first chapter in bpp p3 study guide.
any help highly appreciated.
It is all corporate strategy and can be seen as a reaction to a PESTEL analysis. Banks have been under some pressure from regulators (legal) and it isn’t as easy to make money in the current economic climate (economy).
The bank is looking at which areas of the world it sees as being most profitable and is realigning itself globally.
You don’t have to involve explicitly marketing to carry out corporate strategy. For example, deciding to sell an underperforming subsidiary (or one that does not fit into a portfolio) does not involve marketing but would certainly be a strategic choice.
more question on this topic,
few months before, apple co decided to produce apple iwatch? is this corporate strategy?
few months before, apple co decided to manufacture apple iphone 6? is this corporate strategy? i dont think so, bcoz it is just modification on iphone 5.
thanks for your reply.
vipin
iphone5 to iphone6 can be regarded as evidence of a corporate strategy to keep improving products, to keep ahead of competitors and to generate additional revenue. Obviously if we were still on iPhone 4 sales would have fallen and Apple would be losing its shine.
iWatch can again be regarded as part of strategy because this is their first foray into wearable technology and opens the door to health monitoring which some think is the ‘next big thing’.
thanks a lot.
one more on same topic.
in p1, we are studying on internal control and risk. i dont think it is corporate strategy when a manager makes a decision to make an internal control to counter a risk.
just trying to understand the concept.
thanks a lot.
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