Marketing tool has been in used by businesses as a means to acquire their competitive advantage in the industry. They use it mostly as a means to measure their capabilities and compare it to the demands given by the business environment they operate on. One such tool is the PEST Analysis. This study will look into the description and implementation of the said tool. Moreover, the paper will also be using it to present the external environment affecting the operations of Starbucks HK. II. Company Background
Starbucks is considered of the top providers of gourmet coffee all over the world. In Hong Kong, it started serving its world-renowned beverages in 2000. (Ho, 2002, 283) The operations of the said coffee shops were instigated by the joint venture of Starbucks Coffee Company International and Maxi’s Caterers Ltd under the name Coffee Concepts (HK) Ltd. (Starbucks Coffee Company HK, 2007) The number of coffee shops opened by the end of 2005 reached over sixty. III. PEST Analysis
The PEST Analysis is sometimes referred to as the STEP (Socio-cultural, Technological, Economic, and Political) Analysis. This tool is used to look at the external factors that tend to influence the organization. (Blair and Hitchcock, 2001, 99) Normally, this analysis is used for planning such that the company would be able to complement their pursuit of the organizational goals with the influences and demands put forth by the environment. This provides flexibility for the company such that they are able to take in hand the pressures of the external environment. (Blair and Hitchcock, 2001, 100)
A. Political Factors
The Hong Kong Special Administrative Region (HKSAR) has been under the rule of mainland China for several years already after the handover of the British Government. Nevertheless, it has been given a free hand in implementing business-friendly laws in the land. (Speath, 2004) These liberties allowed companies like Starbucks Coffee...