2. Introduction
• HSBC is a corporate and resource and energy
focused financial institution that focuses on
multiple tangible and intangible services
including advisory, researches, security services,
trading sales and banking
3. Company Profile
• In 4 continents
• Originated from Hong Kong
• With its head quarters located in UK, HSBC is
amongst the largest banks in the world
4. Comparison
• The comparison drawn are between two very
different countries i.e. UK and Tanzania
• Both countries have different demographics and
economic situations
• The political risks are comparatively higher in
developing economies as researches prove
5. United Kingdom• 5th Largest economy in
the world
• Stable political system
and less risks of
corruption
• Responsible local
authorities
6. Business viewpoint
• More checks and balances from the central bank
• Different policies for commercial and personal
banking
• Labor Laws are very strict
• More certainty for financial transactions and
loan payments due to strong government
7. Tanzania• 91st ranking in the
world in terms of
GDP generation
• Developing economy
in terms of political
stability and
corruption
8. Business Viewpoint
• Corruption and Security issues will be an
additional cost for the business
• More influenced by industry owners
• Less strictness on labor laws
• More insecurity on loan repayment and trails of
transactions
9. Decision
• As mentioned in the research, UK will be a better
place to do business due to a long term certainty
of the company’s performance
• It can be used as a strategic hub for the business
to grow due to its commercial value and strong
governance
• UK also offers better human resource for
management
10. Cultural Difference
• Time Oriented
• Diversified culture in southern areas
• Women are empowered at work places
• Job security is not much of a concern compared
to developing countries
12. Organizational strategy and
international orientation
• Strategy to enter should be a full fledge
investment
• Flatter hierarchy
• More empowerment delegation for employees
• Regional orientation is the most suitable for this
business as HSBC will need someone who can
understand the culture better
13. Conclusion
• HSBC will be strategically at an advantage if
located in UK
• The company should be focused on expanding
endeavors from there
• Expansion practiced in developing countries
should be based on subcontracts or franchises to
avoid risks
