The Impact of Geographical Diversification on Business Growth

Due to globalization, in the worldwide market position of the 21st century, the pace of change in business practice is faster than ever before. In recent past, most of the multinational organizations are focusing on geographical diversification and expanding their business all over the world. Geographical diversification is a policy employed by large companies of locating their procedures in different areas in order to decrease company and operational menace. The current research focuses on how geographical diversification is linked with business growth. For this analysis research is focus on HSBC bank. By employing survey technique, data are gathered from 100 employees of HSBC through personally administrated questionnaire. After analyzing the data results shows that geographical diversification is important for business growth and expansion because if organizations can operate across a vast range of continents they will be able to reach more people to sell their products to. There is a more chance to diversify the products and bring innovation in the product. The study concludes that geographical diversification is one of the key reasons for continuous business growth of HSBC.