Foreign Market Entry Plan.
The market environment in Hong Kong can be analyzed using PESTEL analysis to describe the various macro-economical factors influencing and impacting upon the business environment.
Conducting PESTEL analysis is one of the essential steps in scanning the business environment of firms and attaining a complete overview of the various macro-economic factors that the company must take into consideration. PESTEL analysis describes the political, economic, socio-cultural, technological, environmental and legal factors prevailing in the industry or the firm’s business environment. The tool is particularly essential for businesses for making a thorough understanding and analysis of the growth or decline of markets, business positions, potential and direction of operations.
Political conditions in Hong Kong seem favorable for conducting overseas businesses. Implementation of the Principal Officials Accountability System in 2002 was meant to bring about promptness and more responsiveness in the Government’s actions towards people’s concerns. This is especially favorable for conducting businesses because of the fact that any rising demand in the economy would be catered to with immediate action and support from the government.The country demonstrates an open and free economy where people’s rights are respected, courts can function independently and the rule of the law is highly respected in society (US Department of State, 2011). ...