Ebs Assignment

EDINBURGH NAPIER UNIVERSITY

Economics of Business Strategy SOE10907

Coursework 2011/12

Lecturer: Kenny Crossan

Tutor: Joyce Wai

Student Name: Cheng Wing Hung

City U Scope Student ID No: 52261793

Napier Matriculation No: 10022060

Introduction:

Hong Kong, one of the most vibrant international financial centres in the world, providing a wide range of products and services to market users, both local and international as well as both retail and institutional. Financial services industry is one of the Four Key Industries in the Hong Kong economy (The rests are Trading and logistics, Tourism, and Producer & professional services). This tertiary industry has been the driving force of Hong Kong's economic growth, providing impetus to growth of other sectors and creating employment.

Financial services cover a wide range of services including banking, insurance, stock brokerage, asset management, and other financial services. The contribution of the financial services sector to Hong Kong’s Gross Domestic Product increased from some 12% in 2000 to some 15% in 2009.

According to above reasons, I have chosen a local medium-size banking group “Dah Sing Banking Group Ltd” (DSBG) for the Strategy analysis in order to evaluate the firm’s strategic management by a framework of macro-environmental factors PESTEL in the first section. The second section, further describes a chain of activities for DSB operating in a banking industry by using the Value Chain concept which first introduced by Michael Porter in 1985.

Background:

Dah Sing Banking Group is a publicly traded company (#2356) in main board of HKEX, the firm has four banking subsidiaries (Dah Sing Bank, MEVAS Bank, Banco Comercial de Macau and Dah Sing Bank (China) Limited), providing banking and financial services including the acceptance of deposits from individual customers and the extension of residential mortgage lending, personal loans, overdraft and credit card services, the provision of insurance sales and investment services through a branch network of around 70 branches over Hong Kong, Macau and China, and a securities trading company.

PEST Analysis:

Political Aspect:

After the late-2000s financial crisis, the third of