Planning Principles and Tools and Techniques

“Planning is a formalized procedure to produce an articulated result, in the form of an integrated system of decisions.” Thinking about and attempting to control the future are important components of planning. (Mintzberg, 1994)

Archie B. Carroll defined three types of planning consist of:

“To Do List” Planning

Strategic Planning

Operational Planning

This report focuses on the strategic planning principles and range of tools and techniques involved in developing general and marketing strategies of HSBC.

HSBC is of the largest banking and financial services organisation in the world whose head office is based in London. Its business in established in around 8000 offices in 87 countries and territories like in Europe, the Asia Pacific region, the Americas, the Middle East and Africa. HSBC differentiates its brand name from its competitors by describing the unique characteristics which distinguish HSBC, namely being, ‘The world’s local bank’. The bank is listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges respectively. It shares are held by 220,000 people in 124 countries and territories.

On a worldwide scale one of the major tools its uses for functionality is the company’s use of Information Technology. Its e-business channels include the internet, PC banking, interactive TV, and telephone banking. It maintains its own private network (intranet and extranet), in which HSBC’s websites attracted 900 million visits in 2004.

HSBC provides a comprehensive range of financial services namely:

Personal Financial Services (including consumer finance); Commercial Banking; Corporate Banking, Global Banking and Markets; and Private Banking to around 100 million customers through four customer groups and global businesses. (About HSBC, 2011)

Academic Reasons:-

HSBC world’s largest and most profitable banking corporation

HSBC had £266 billion of assets under management as at June 30 2010.

Highest international presence: 128 million customers worldwide

HSBC has 140 years of experience in China

HSBC is listed on the London and Hong Kong stock exchanges

Diversified approach – both geographically and on basis of customer group

Prestige and Visibility – Access to UK and US capital markets for future capital rising.

The bank is well capitalised and this has enabled it to perform relatively well against other banks in recent economic events. Able to promote several products and services that meet the needs of the customers. In spite of its global reach, HSBC maintains a ‘local bank’ philosophy – local learning’s, local customers and local products.

Due to my positive interest in Finance, especially in the area of Banking, I decided to analyze the marketing activities of HSBC. By looking at the way HSBC has grown I can learn the strategies like how to expand a business globally and always be ready to face the competition. This company has both incredible success and hurdles, both right and wrong strategy which is the main reason to pick for my case study. As a MBA student this will not only help me to build my skills but also my capabilities as a strategic manager and leader.


A Strategic plan should have flexibility. It had to be based upon the external and internal capacity, strengths and weakness. SWOT analysis needs to be done to accomplish this.

To have a clear understanding about strategic planning there are various approaches used by the experts. Below are some of them:

The Basic Strategic Planning

The Issue of Global based Planning

The Alignment Model

The Scenario Planning

The Organic Planning

The Merger and Strategic Alliance Planning

(William, 1997)

This report attempt to explore four strategic planning’s

1 The Basic Strategic Planning

The organisations that are very small, busy and have no experience in strategic planning before goes for The Basic Strategic Planning Model. Planning is mostly carried out by the higher level management. The basic strategic planning process consists of:

a) Identify your purpose – The mission statement that describes why the organisation exits.

b) Set goals- Later select the goals that are to be accomplished.

c) Identify strategies and tactics – Identification of specific strategy that is to be


d) Identify particular action plans – Make sure the selected plans are effective and appropriate and the strategies can be implemented in all the levels and units of the organisation

e) Review and Update – The strategies plan needs to be reviewed and updated every regularly as the world changes much too rapidly. To be successful positive feedback is necessary.

2. Issue or Goal Based Planning – The organisation which used the basic planning approach in the beginning goes for the more comprehensive and effective planning.

Below is the summary of the Goal Based Planning –

a) Identification of SWOT (Strengths and Weakness and Opportunities and Threats)

b) Analysis to prioritize and identify prime goals or issues

c) Develop major strategies to address goals or issues

e) Design vision, mission and ethics.

f) Establish action plans, implement roles and responsibilities, and identify resource needs.

g) Document all this things in SWOT analysis report and Strategic Plan document.

h) Operating Plan document needs to be developed on yearly basis from year one.

I) Budget for the year one needs to be developed and authorized.

j) Strategic plan document should be monitored/reviewed/evaluated and updated.

(Basic Overview of Various Strategic Planning Models, 2011)

3. The Strategic Alliance Planning: To spread business rapidly and reduce competition The Merger or The Strategic Alliance planning method is used basically. In other words, this is the short cut method of organisation growth. Below steps needs to be considered –

a) The company’s current position needs to be analysed

b) Analyse the current position of the merger company.

c) Goodwill and market value of the company should be analysed.

d) Finance availability needs to be checked

e) Take the next step

HSBC trusts in this strategic planning


A written document which summarises what the marketer has learned about the market place and indicates how the firm plane to reach its marketing objectives is a known as the Marketing plan. It provides the tactical guidelines for the marketing programmes and financial allocations over the planning phase. Marketing plan is one of the most vital outputs of the marketing process. Marketing plans are becoming more competitor-oriented and customers-oriented, and better recent and more practical than in the history. They demonstrate more inputs from all the function and are team developed. Planning is becoming a continuous process in order to respond to rapidly changing market conditions (Kotler, Keller, Brady, Goodman, & Hansen, 2009).

Source – Prof. M. G. Harvey (Lecture)

Diagram to determine the planning for HSBC

Describe and critically evaluate a small range (3 to 5) of models, tools and techniques that could be used in the development of the strategy of your chosen organisation.

Porter’s 5 forces model: –

Any industry’s environment can be analysed with the help of the Porters five forces model which is an excellent model. Porter recommended that 5 main forces shape competition at the level of strategic business units. Porter also suggested that an organized analysis of each in turn can assist managers classify the keys to competitiveness in their particular industry (Hooley, Piercy, & Nicoulaud, 2008).

Porter’s five forces are as follows

The threat of new competitors entrants

The threat of alternative product

The Power of customers

Power of suppliers

Current suppliers competition

Product Life Cycle: competitive behaviour is typically affected in several ways by the stage reached on the product life cycle (PLC). Although the PLC is seen principally as a model of product and market evolution, it can also be use as a frame work for examining probable competitive behaviour. Used in this way, it can help the strategist to anticipate changes in the character of competition. PLC includes four stages namely introduction stage, growth stage, maturity stage and decline stage. In the early stage of the life cycle advertising and promotion are generally high; prices are margins are able to support this. The natural growth of market allows firms to avoid competing in an overtly direct way. As maturity approaches the rate of growth slows, firms are forced in to more direct forms of competition, a situation that is in turn exacerbated by the often generally greater number of companies operating within the market. This greater intensity of competition manifests itself in several ways, but most commonly in a series of price reduction. The role of advertising changes as greater emphasis is placed upon the search for differentiation. In the final stages some firms opt to leave the market, while others engage in perhaps even greater price competition as they fight for a share of a declining sales curve. It follows from this that the PLC is yet one more of the myriad of factors that the marketing strategist needs to consider in coming to terms with competitors (wilson & Gilligan, 2009).

SWOT analysis: The overall evaluation of company’s strengths, weaknesses, opportunities and threats is called SWOT analysis. It is a way of monitoring the external and internal marketing environment. A business has to monitor key macro-environment forces and significant microenvironment actors that affect its ability to earn profits. The business should set up a marketing intelligence system to track trends, important developments and any related opportunities and threats (Kotler, Keller, Brady, Goodman, & Hansen, 2009).

4) BCG Matrix: Boston Consulting Group’s Growth-share and growth-gain markets: Undoubbtely the best known approach to port folio analysis the Boston Consulting group’s (BCG). The BCG matrix helps to determine priorities in a product portfolio. Its basic premise is that it makes more sense to invest where there is (economic)growth from which you can benifit. A rating of products on two dimension, market share and market growth, creates four qualifications of products in your portfolio: stars, cash cows, question marks, and dogs (wilson & Gilligan, 2009, p. 367).

STAR: stars are products that enjoy a relatively high market share in a strongly growingly market. They are profitable and may grow further to become an important product or category for the company.

Cash Cows:although the market is no longer growing, your cash cows have a relatively high market share and bring in healthy profits. No efforts or investments are necessary to maintain the status quo.

Question mark: Although their market share is relatively small, the market for question marks is growing rapidly. Investments to create may yield big results in the future, though this is far from certain further investigation into how and where to invest is advised.

Dogs: drop or divest the dogs when they are not profitable. If profitable, do not invest, but make the best out of its current value. This may even mean selling the product’s operations and/or brand (Have, Have, Stevens, Elst, & Pol-Coyne, 2003).

5) PESTLE Analysis:

Political Forces

Economic Forces




Environmental (Pestle Analysis, 2010)

Task 2

General or Marketing Options

Below are the some of the strategic marketing options which needs to be consider

1) Selling the current products to the existing consumers

2) Selling the new developed product to the existing consumers

3) Expansion of the existing products in the different market sectors

4) Development of new products for new market sectors (Ayling, S)

The best strategy can be the combination of one or more options but it depends upon the areas of the business and the various products



Form the above diagram we can is that it is least risky option because clients can be found out of existing products. Generally, there is scope to invite more similar type of clients.

The fourth options the risky one as this option is to find a new product and with a new product. The growth can give great potential, but can also be the cause of breakdown if there is a lack enough responsiveness of market situation or the competitive surroundings. Additionally, it is challenging for a business to ascertain sales channels, move into a new market at the best of time period. Above all, existing competition can be actual challenge which requires major funds.

Considering the products, sales processes, customer’s needs, competitive environment, material for marketing and image of the company is very important for taking any marketing decision follow these:

a) Providing benefits to customers

b) Presenting economy based models

c) Resolving the staff concerns by providing training, presentation and operational style.

d) Improving business processes by production, satisfying distribution demands and customer support.

e) Encouraging employees to participate in marketing and sales and also providing benefits to them.

f) Reviewing growth by sales analysis, awareness, returns, referrals, response and number of customers and also measuring results.

g) Upgrading from old model to new model by providing lucrative schemes.

h) Working upon the alliances and acquisition with suppliers, businesses and agencies that can be helpful.

I) Holding SWOT analysis to resolve the problems on the spot and also holding meetings with the agency holders and taking suggestion or feedback.

j) Recognizing activities of marketing and identifying when to be implemented

Below are the some of the strategic options:-

1) Value for customers: HSBC provides full value for money to its customer’s. From basic bank account to business accounts are available and satisfy the customers, because of this HSBC are the largest bank in world. Customers are benefited from this kind of accounts provided by HSBC which satisfies their needs but also make them to stay with HSBC itself.

2) Economy based model: HSBC had introduced its various kinds of account for its customers like student account and also basic account for its middle class customers. In India most of them are likes to go for the basic or the current account as per their life styles and earnings.

3) Improvisation of business process: With the help of increased production HSBC has improved its business process. HSBC has improved after sales service and arrangements for entertainment of its customers at the service centres. It also started to take the suggestions, ideas and also feedback and complaints from its account holders to improve its services and products.

4) Strategic alliance and acquisition: HSBC Bank has established the strategic alliance in energy trading with Total Oil Trading SA (TOTSA), the trading arm of Total. (HSBC establishes strategic alliance in energy trading with TOTSA, 2010)

Sungwon Corporation formed a strategic alliance with world-renowned HSBC Bank Middle East Limited, to provide individual residential purchasers the opportunity to avail themselves of unique financing solutions for homes developed by Sungwon in Dubai. (Korea’s Sungwon forges strategic alliance with HSBC, 2007)


Any individual, organisation or other institution that owns at one share in a company is a shareholder.

(Shareholder, 2011)

According to Freeman (1984), stakeholders are those individual or group who affect or are affected by the achievement of an organisation’s objectives. These include customers, suppliers, employees, government, competitors, local community, and shareholders. The stakeholders have conflict needs, making the task of management in balancing this different interest more fraught. This is because stakeholders may have different objectives which leave managers trying to balance multiple objectives (Henry, 2008).

M.G. Harvey explained stakeholders in 5 groups, which are discussed below:

Source: Prof. Mike Harvey, (Class Lecture)

Below are the three important stakeholders:

Customers – Customers plays very major role for every business success. They are covered under Business contact category. Customers are God in Indian tradition. Customer’s admiration decides to company’s survival. Prime motive of HSBC is the satisfaction of its customers. HSBC always takes initiatives and offer services and products which satisfies the customer’s needs. HSBC is been successful in doing the same from many years.

Shareholders- Investment of money in the business are done by shareholders are they are part of investors category. Company’s owners are the shareholders. Profit earnings and dividend distribution is the main interests of the shareholders. We can say they are the actual proprietors of the company. They take tough decisions and start and build the organisation from zero level and also plan to achieve goals and objectives for the company

Employees – Growth and welfare activities of an organisation decides the social and economic life of employees. Employee expects remuneration for his or her services provided to a company.


Influence of stakeholders can affect the strategy of any organisation. A company requirements and depends on stakeholders as they can disturb and causes uncertainty. Participation of stakeholder can contribute to the development of an organisations strategy.

The effects and participation of these stakeholders are detailed below:

HSBC Customers – The vital to the organisation and primary stakeholders are the customers. Unless any participation of its customers no organisation can survive. Any organisations motives are to increase the sales and generate profits. Marketing strategies are developed to attract customers. HSBC always try to fulfil the wants of its company’s customers. Some of the factors HSBC considered at the time of creation of its marketing strategy are as follows:

Ethical relationship with client

High productivity

Sense of excellence

Internationally known in outlook and character

Creativity and customer oriented marketing

Prudence and long-term

(HSBC Marketing Strategies, 2011)

HSBC Shareholders –

210,931 share holders of HSBC were there as on 31-12-2007 from by the SEC filing. 

On 33-12-2007, a total of 13,145,585 of the HSBC Holdings ordinary shares were registered in the HSBC Holdings share register in the name of 12,018 holders of record with addresses in the US. As at 31 December 2007, there were 10,490 holders of record of ADSs holding approximately 123 million ADSs, representing approximately 614 million HSBC Holdings ordinary shares. 10,284 of these holders had addresses in the US, holding approximately 122.7 million ADSs, representing 613.6 million HSBC Holdings ordinary shares. As at 31 December 2007, approximately 5.2 per cent of the HSBC Holdings ordinary shares were represented by ADSs held by holders of record with addresses in the US.” 

Shares held – 500,001 and above Number of holders – 910 Shares held by those 910 holders – 10,800,520,686 (Major Share Holders of HSBC, 2008)

To achieve that HSBC believes in boosting corporate value and enhance communication with shareholders by

Distribute dividends and returns to shareholders

Reveal accurate and complete information in a timely manner

Positively develop businesses

Invite investors for further investments and also promote them

Improve evaluation and ranking made by other experts and companies.

HSBC Employees:

Maintains management-employees cooperation

Active Listening


Freedom to deliver



Forward Thinking

(SIP Storage, 2011)


The management responsibility is to practise and implement the strategy in a proper manner and get the employees commitment. The responsibility of employees should be the growth of the company and should be committed towards the culture and needs of the organisation. The senior management team can achieve its employee’s commitment by –

Performance review

Proper salary

Rewards and Recognitions


Spreading professionalism and health competition

Executing the incentives scheme

Welfare of employees

Encouraging Employees

Providing safe and favourable healthy environment

(F.R., 1999)

Task 3


Development of Vision, Objective and Measures

Layman’s language: –

Vision: An image of the future organisation seeks to create is called as a vision. A company having a proper vision means they have a clear picture of what the company is to be.

Mission: It is the practical goal of an organisation.

Professional Definition: –

Vision – The picture of company in the future is sometimes called as a vision statement but it is so much more than that. A vision statement is the framework for all the strategic planning. A vision statement applies to a whole company or any single division of that company. “Where do we want to go?” is answered by the vision statement.

Imagine in present about the position of the company in future. A vision is the long-term view of the company’s position

Mission Statement – The brief description of a company’s fundamental purpose is called as a mission statement. It answers the question, “Why do we exit?”

The statement says the company’s purpose both for those in the public and also organisation.

It explains the objectives and its business and also the company’s approach to achieve these objectives.

Objective – The needed or desired result to be achieved in a specific time. It can be described as timed, detailed and plans of action which needs to be achieved. Strategic objectives need to be specific, clear, executable achievable and growth oriented.

Values – Values are what the organisation believes in. Values for money, good quality, and exceed customer’s expectations in service quality, are some of the examples of values to make a positive.

(Definition, 2011)


HSBC Vision – HSBC aspire to become one of the world’s best specialist banking groups, driven by commitment to its core philosophies and values.

HSBC Mission Statement – Making money as much as possible for its shareholders is the mission of HSBC bank. (What is the HSBC Mission statement, 2011)

HSBC’s strategy – The strategy reflects HSBCs as the world’s local bank and aligns with 3 fundamental long-term trends shaping the economy –

a) Growing in the competitive markets is more rapidly than in mature markets

b) The world trade is increasing faster than global Gross Domestic Product

c) Increased durability around the world is leading our clients to re-think their financial needs. (Be part of the world’s local bank, 2011)

Effectiveness: The ethics and culture of an organisation can show the effectiveness of the mission and vision. By using the correct tools if the organisation is going is the right direction then we can say that mission and vision are very effective. HSBC is doing the same thing it is working in accordance to its vision and mission.


Organisational cultural: Organisational culture is the personality of the organisation. Organisational culture is comprised of the values, norms, assumptions of the organisation members and their behaviour.

It’s the personality of the company.(Organizational Culture, 2011)

HSBC Culture: HSBC believes in the highest values of proficiency and fair business principles. It believes is creating and the development of their own talent. HSBC always tries to encourage the talented employees according to their skills and capabilities so that it can have great impact on its business. It believes in appreciating and giving benefits on merit basis. Lastly it believes in retaining its potential present and future leaders. (Our Culture, 2011)

Ethical Values: The study of moral concepts such as “right” and “good”, of moral reasoning such as “it is wrong to do so and so because” and of moral systems and codes is known as Ethics. (Ethics in business, 2011) Ethics is based on a set of ethical and moral values. Ethical values include statements and ethical codes that show how to treat with subordinates, colleagues, competitors, customers, suppliers and other stakeholders.

HSBC Ethics: HSBC has created its ethics according to its organization culture. Health and safety measurement, proper work atmosphere, proper functioning rules and regulations, importance on high moral values, peace at work, positive attitude etc are some of the Ethics which is developed and followed by HSBC.


Core Competences – The distinctive group of skills and technologies which allows an organization to offer particular benefits to its clients and deliver reasonable advantage. Collectively, they become the key organisations resources that assist it in being different from its competitors. The fundamental knowledge or expertise in a particular skill set or subject area is known as core competency. For example, the key skill of the software company might be the overall utility and simplicity of the program for the software users and also alternatively the high quality of software code writing and they have to achieve. There are three characteristics of the core competency:

a) It is a source of competitive benefit in that it makes a major contribution to customer-perceived value;

b) It has purpose in a wide variety of markets and

c) It is difficult for competitors to imitate (Lynch, 2009).

Through the Porters value chain (1998) and the principles of economics of scope (1997), results show that horizontal boundary of the any firm is determined by its learning curve while vertical boundary is distinct by its mergers, joint ventures and acquisitions.

More than a century of engagement in international trade financing and personal financing services HSBC had accumulated experience and knowledge. This means HSBC had the competency to engage in international operations as expressed by its presence in the major financial centres globally. As an organisation HSBC has achieved incredible growth with the help of engagement in joint venture with the other finance and banking companies in acquisition of smaller local banks and also by investing on international projects. With the help of its profits and assets HSBC holds the capability to acquire other financial companies such as insurance companies and also smaller banks. (Industry analysis for Hong Kong and Shanghai Banking Corporation (HSBC), 2006)

Critical Success factors – The strengths and weaknesses that most affect an organization’s success. These are measured relative to those of its competitors (Oxford, 2006).These are the factors that must be achieved to achieve the mission. Critical success factors are the limited number of areas in which satisfactory results will ensure successful competitive performance for the individual, department or organisation. The CSFs are the few key areas where ‘things must go right’ for the organisation to flourish. They must be meaningful to individuals and be capable of being affected by their behaviour (Asher, 1996).

Being the early starter to enter all over the world, HSBC was able to fully make the most of the unexploited business possibly available and thereby capture a huge portion of the banking market.

As the HSBC continuously works hard to maintain a local knowledge and local feel, customers feel secured and also comfortable to bank with HSBC which has international brand name. Therefore it has ensured high customer faithfulness and also it has been able to retain its large customer pool.

By the different innovative advertising and different promotional campaigns HSBCs has been successful to reach a larger section of customers. HSBC has also gained popularity by providing discounts, relaxing interest rates on loan during crisis, and rebates to its customers and also the confidence among them. (HSBC Case Study, 2011)

For the HSBC future growth and to take the competitive advantage critical success and core competency are very necessary.

Task 4

Changes in the marketing environment for organisation.

HSBC has amended its strategy in accordance with the present economic and business environment. HSBC biggest challenges today are the global recession and the increasing competition. To achieve the goals and to be retained in the market HSBC needs to amend or change its strategy of the business. To amend the strategy there are three steps which needs to considered by HSBC. To know the current position and environment of the organisation it needs to do the proper and careful analysis. To create new opportunities and to develop strategy this analysis is very helpful.

Below are the three steps which determines the climate change strategy –

Step 1 – Take action: Analyze the market position and the current business by doing PSET and SWOT analysis and then take further and appropriate action. In this time of global decline and competition.

Step 2 – Affect the policy development process

Step 3 –

Explain how your organisation has responded to changes in its environment. Consider whether this response has been effective.



In the business organisation there are many functional areas. Below is the list of the same:


Research and Development

Human Resource



Information Technology

Customer Service




Three of the major functional areas among the above list are discussed below –

Marketing: Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfies individual and organizational objectives. This department of a company affects greatly. The marketing department of the HSBC is very well advanced and up to the mark in today’s business world. Organisations should dominate specific markets or segments of particular markets, and make it as tough as possible for the others to enter into that market´ (Colenso, 1998). The people working for this department will always try to find the new opportunities for promotion and sales. This department keeps the update to date information and knowledge of the rival’s strategies of marketing, technologies advancements in the market, interest and taste

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

Money-back Guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism Guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision Policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy Policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation Guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more