Every country has its own legislations however in the course of achieving their aims and objectives, businesses face challenges from both within and outside of their organizations. Those internal and external opportunities and risks will effect a firm’s gradual performance, therefore to analyze these factors and understand them to carry out effective decisions we use something called the STEEPLE analysis.
STEEPLE analyses and examines the context in which the authority operates. Identifies key issues that exists (or are emerging) in the internal and external environment, by suggests how these will or may impact on the future strategy and resources.
The factors are identified in these 7 areas:
Social: Factors that include cultural…show more content… For example the actions of rival firms can alter performances of businesses.
Hong Kong has faced a considerable flow of traffic involving tourist and travelers present in Hong Kong. A lot of mainlanders and travelers from neighboring regions have started swarming in Hong Kong due to the opening of Disneyland in 2002.The large rise of the number of consumers available in Hong Kong, whom are mostly very well off have therefore raise the consumer confidence overall.
External environment: The factors that may effect any business activity and issues that should be addressed in any business strategy carried out. They include business strategies like the potential cost and benefits of a joint venture, marketing planning (like threats from other rival businesses), business propositions (whether to further expand the business internationally or not).
Starbucks company has the opportunity to expand its global operations. Starbucks has already created branches located all globally. There are just as many Starbucks available in Hong Kong have opened over 60 new shops by the end of 2005. New markets for coffee such as India and the around the Pacific rims are beginning to emerge.
Political: Government legislations like employment law, consumer protection rights, copyrights and trademark and regulations used as boundaries for