Global Communication

Global Communication

Each of the eight organizations selected for the benchmarking exercise faced challenges similar to those facing Global Communications.   The various companies have dealt with their challenges differently, and with mixed results.   Many have found sound and long-lasting solutions while others have met with failure in their endeavors.   The important point is that in each case, a valuable lesson can be gleaned from each experience, and each provides Global Communications with an opportunity to establish a benchmark for resolving its own issues.   Let us begin by examining the various benchmarks.
Benchmarking: HSBC Mortgage Corporation – Alisha Marshall
HSBC Mortgage Corporation is a mortgage company that is a direct subsidiary of HSBC Bank Corporation (HSBC).   According to the HSBC.com website (2008), HSBC Bank Corporation’s Corporate Headquarters is located in the United Kingdom.   However, the company was founded in Hong Kong.   Prior to 2003, HSBC Mortgage Corporation (HMC) operated under the name of Household Mortgage Corporation.   In 2003, the company was acquired by HSBC.   HMC has been a leader in the sub-prime mortgage industry for many years.   Over the past 18-24 months, the mortgage industry has experienced a steep decline in the value of sub-prime mortgage loans and mortgage backed securities.   Due to this decline, hundreds of mortgage companies and banks have gone out of business and many home owners have lost their homes.   Foreclosures are at the highest level in 50 years and the trend is expected to continue over the next 12-24 months.  
According to the HSBC.com website (2008), HSBC is a bank with conservative lending policies.   During the acquisition negotiations, HSBC was provided with the balance sheet for HMC.   HMC provided HSBC with an overview of the current profit structure and the expected profits for the coming year.   HSBC was impressed with the information.   The HSBC Executive team discussed the benefits of acquiring a company with the...