TOC \o "1-3" \h \z \u Executive summary PAGEREF _Toc402404170 \h 1Introduction PAGEREF _Toc402404171 \h 2PEST Analysis PAGEREF _Toc402404172 \h 3Political Environment: PAGEREF _Toc402404173 \h 4Economic environment: PAGEREF _Toc402404174 \h 5Social Environment: PAGEREF _Toc402404175 \h 9Technological environment: PAGEREF _Toc402404176 \h 11Business entry mode PAGEREF _Toc402404177 \h 12Exporting: PAGEREF _Toc402404178 \h 12Licensing: PAGEREF _Toc402404179 \h 13Franchising: PAGEREF _Toc402404180 \h 14Recommendation PAGEREF _Toc402404181 \h 15Conclusion PAGEREF _Toc402404182 \h 16References PAGEREF _Toc402404183 \h 17 Executive summaryThe whole report will analyze Hong Kong’s political, economic, social and technological environment (PEST) of the view that opening restaurant chain (Subway) industry in the view of the international business. This document will facilitate the foreign business to find more information about Hong Kong PEST. In this document also analyze modes business entry which appropriate for the Hong Kong market. IntroductionTo study any business project in any country or in different statement to study business sector globally, it has its conditions and Circumstances whatever the kinds of business are. In this paper, will have a presentation about Restaurant Chain in Hong Kong which is a region on the southern coast of China geographically enclosed by the Pearl River Delta and South China Sea and a population of Hong Kong is over seven million people, and with a land mass of 1,104 km2 is one of the most densely populated areas in the world. Hong Kong is known for short as H.K, it’s a Specific Administrative Region of the People’s Republic of China. Hong Kong still has a high autonomy and different political system from that in China mainland. Hong Kong has a very strong and stable economic and that is proved by Z/Yen (British organization) when ranked Hong Kong on October 2014 as a third global financial center in the world. In international business opportunities, Hong Kong is very good country to invest because of their stable economic and their GNI per capita. The major export commodities of Hong Kong are electrical machinery, textiles, footwear, watches, plastics, printed material and precious stones. Restaurant chain is set of related restaurants in many different locations with the same name that are either under shared corporate ownership (e.g., Subway in Hong Kong). Subway is an American fast food restaurant that mainly sells submarine sandwiches and salads. The beginning was in 1965 when Fred DeLuca started his own business. The first store was opened in Bridgeport, Connecticut, united states of America. In this document, going to present and analyze the business opportunity of Subway restaurant chain in Hong Kong. PEST AnalysisPEST is an analysis of the external and macro environment that affect all firms including business activities and performance. The PEST analysis involves Political, Economic, Social and Technological factors:
Figure SEQ Figure \* ARABIC 1 PEST analysis (http://www.marketingteacher.com/) Political Environment:This element takes a look at how government regulations and legal issues influence an organizations opportunity to be profitable and effective. Issues that must be considered like tax guidelines, political soundness, exchange regulations, employment laws and security regulations. There are many aspects in political and legal environment which affect international business especially for an organization who wants to open their business in the country. Hong Kong exercises a high degree of autonomy. According to the Basic Law, the National People’s Congress (NPC) authorizes it to exercise a high degree of autonomy and enjoy executive, legislative and independent judicial powers, including the power of final adjudication, in accordance with the provisions of the Basic Law. At the same time, the “two systems” principle was designed...
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