Every business lies in an environment, business should note the critical interaction of business with the elements of their environments. Business environment means the factors that affect the operations of a business, like political and legal factor, economic factor, socio-cultural factor, technological factor, physical factor and competitors. These environmental factors offer both opportunities and threats to a company. Opportunities are the factors that help the company to achieve its objectives and the threats are the factor that hinders the company from achieving its objectives.
Before Disneyland enters Hong Kong market, firstly, they should consider Hong Kong’s economic factor and environment, which are the general economic conditions and the trends that are critical to the success of an organization. It is because in the difference economic environment, people’s purchasing power and spending patterns will be change. For example, if the business cycles they face are recession or depression, the purchasing power of the people will decrease respectively, that’s mean the people will spend less when the business environment is poor. Vice versa, if the business cycles they face are boom or recovering, the people will be more willing to consume, the purchasing power of the people will be increase.
Next, Disneyland should be also need to consider the labour market conditions and wage level, it is because that will directly affecting will the people come to visit or not since that will affecting how much will people spend in entertaining. So, Disneyland should be pay attention to it.
Also, they should consider the Competitive Factor, which is how strong is the force your business will face in the local or foreign market. More competitors operate in a limited market, higher the force you will face. When there have some competitors operate with you in a limited market, you will need to gather and monitor competitor’s strategies and activities to set...
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