According to Haberberg and Rieple, if an organization has to be an effective economic unit, it must gain such an understanding of the environment in which it operates. To gain understanding, scholars state that organization has to work on environmental analysis which includes PEST, SWOT and Five Forces Analysis to examine the possible areas of environmental changes that may affect a firm inevitably, thus to gain benefits for its operation.
PEST Analysis is a framework which is used to scan the external environment in which a firm operates. PEST is an acronym for Political, Economic, Social and Technological factors. PEST factors play a significant role in the creation ...view middle of the document...
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Scholars conclude that a powerful political trend is that new laws and regulations are backed by lawsuits that are established by government. As responses to this political factor, Hong Kongâ€™s import of foreign milk power had been increased form 15 million in 2008 to 40 million kilograms last year, most of the milk power are sold through retailers. As Hong Kongâ€™s parents were struggle in buying milk power, government implemented import and export regulation for milk power, unless a person was issued for an export license, he or she were not permitted to export milk power for babies who are 36 months or below. Concern to the needs of departure person, aged 16 or above may carry weight not more than 1.8 kilograms cans of milk power. After the implementation, the problem of buying milk power were solved and the prices of milk power had raised continually, like the Cow & Gate milk power had been increased from $235 to $250 per can. The regulation benefits retailers, as milk power is a necessity for babies, therefore, parents will keep buying milk power even they are getting expensive, meanwhile, the overall sales of retailers will be boosted.
In many countries, society is steadily become more diverse (Odenwald, 1993; Rothwell & Sredl, 2000). The diversity is well established not only in race, skin and colors but in lifestyles, family and social structures, and religious practices (Gustafson, 2002). Two examples are related to lifestyles changes, the first one is Florentijn Hofman, a Dutch artist who creates the yellow rubber duck had been displayed at Hong Kong's Victoria Harbor on May and June. It spread joy around the world and released positive energy. During the exhibition of rubber duck, it attracts millions of people come and visit, and the floating population of Harbor City surged to 26 million at weekend, it gains benefit for vendors who sell duck boutique near Harbor City and its overall sales are raised by 50%. Furthermore, the overall sales of the chain restaurants in Harbor City are also increased by 5-10%. The second example is the rise of CD campaign promotes to curb wasting food, the environmental group; Green Collar recently launches campaign which called â€œSaved food" to educate the public to treasure the food they have. The campaign invites everyone to snap a picture after they finished their dishes and upload to the Facebook page of Saved Food, the more the â€œlikeâ€ of the picture, the higher the chances to win a dinner coupon from The Peninsula Hong Kong and admission tickets from Disneyland and Ocean Park. Meanwhile, the campaign also corporates with 1500 restaurants and launch an activity; Mystery Diners Award, environmental group sends mystery diners to conduct surprise check on whether people have finished their meals or not and supermarkets cash coupons will be sent as reward. The campaign favors The Peninsula Hong Kong, Disneyland, Ocean Park and...