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 aspects and include health consciousness that represents opportunities and threats to a business. They include aspects like income distribution, demographics, labor/social mobility, poverty levels e. t. c. For example Multiculturalism has led to a major boom in the trade of exports from different cultural backgrounds.
Starbucks is known as a respectable employer and a business that values the workforce. They were even mentioned in the ‘Fortune Top 100 companies to work for’ in 2005. Technology: The efficiency of spending on technological advancements that may benefit or become a problem to the company. For example the new technological advancements can hinder the development of the business because of the high costs that are put into advancing the technology can interfere with the performance of the business.
Hong Kong consumers are mostly capable in using computer based platforms because of highly technologically savvy population the consumers tend to look at the factor of convenience to their advantage. Therefore Starbucks has an opportunity to start a platform that will essentially provide to this need of consuming the wide public. Economic: The economic state of where the business operates is defined by inflation, unemployment, economic growth and international trade.
Not only are there these four variables that determines the state of the economy but the consumer and business confidence level also determines the state of the economy that they are operating in. 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 the business to operate within. For example the Hong Kong government’s minimum wage policy that sets a boundary for all businesses to operate within.
As Hong Kong (HKSAR) has been under the rule of mainland China for several years after the handover by the British government. Nevertheless it has business friendly laws in the land. These liberties allow Starbuck Coffee Company to be capable of operating internationally in Hong Kong. However it has to follow the general legislations and regulations imposed by the HK government. Legal: The government imposes various rules and regulations to ensure the protection of the general public from the negative aspects of businesses. These legislations are normally to protect consumers, competing firms, employees, the social environment e. . c. Ethics: The moral principle that should be considered during decision making in a business. For example, what is the right thing to do and what is the wrong thing to do. Minimum wage is morally right because there are people that work for the least amount of wage possible where you can not even afford a meal for a day. For those that are in need, minimum wage is morally right. Starbucks as an organization has strong ethical view and an ethical mission statement with strong ethical values as follows, ‘Starbucks is committed to a role of environmental leadership in all facts of our business’.
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