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,...
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