It is important that like many other branches, HSBC is required to ring-fence its business in UK. The primary reason which has been given by the company for the flagging of the business in UK is that the company has observed a major growth in South China. The UK retail bank was built in the year 1992. Moving in the headquarters of HSBC’s headquarters to Hong Kong will save an amount of around 1.1 $ billion.
The bank states that the new economic changes which are being faced by HSBC in the country have been major reasons for the failure of HSBC. The bank is also forced by the new rules set by the government, under which two different houses of UK are closed. Thereby, there have been a number of problems which the company has to face. The company is going under a vast change and it will lead through the huge attrition and the massive cutting of the Jobs (Hussain, 2016).
Effects for the local and national economy and HR activities
The company has failed to formulate such strategies which help in effective building of the organization and the achievement of the efficiency of the organization (Dunkley, 2015).
The HR also needs to ensure that the global banking and marketing divisions of the company is performing in an efficient manner. But in case of HSBC, it has been observed that this department of the company has been performing worst as the profits of the company has fell by 38 per cent. In addition to this, there is a fall in the retail banking sector and the wealth management sectors as well.
HR has to play a great role in business planning. Firstly, he/ she needs to ensure that there is the presence of the respectful business partner for strategic planning. Secondly, HR needs to determine how to connect the strategic plans with the real business planning. Thirdly, HR also needs to demonstrate the methods by which he/ she can overcome the obstacles. But in case of HSBC, the company has disposed its terms with many business and the countries which are considered very risk.
Thus, it can be concluded that the HSBC bank has been undergoing a tough phase in UK and it undergoing a constant decline. There are a number of reasons for the same including the national economy, the changes in the economy which are coming in the recent times and the failure of the HR strategies and effective formulation of the same. In this research paper, the discussion has been done on HSBC’s decline in UK and the effects for the local and national economy and HR activities.