he Analysis

includes:

-Social/demographic,[S] -Technological, [T] -Economic, [E] -Environmental (natural),[E] -Political, [P] -Legal [L] -and Ethical factors. [E]

The STEEPLE factors play an important role in the value creation opportunities of a strategy. However they are usually outside the control of the corporation and must normally be considered as either threats or opportunities.

Below

you will find examples of each of these factors.

Political (incl. Legal)

[ [Poltical] EST[Environment][Legal] ]

-Environmental regulations and protection [what are the government regualtions/ protection laws that must be observed ] -Tax policies what tax hinder the business and what taxes incentives are available] -International trade regulations and restrictions [ does the government encourage exports / with high tariffs on imports] -Contract enforcement law/Consumer protection [does the government enforce on consumer protection ] -Employment laws] [ is the government

encouraging skilled immigrants with temp. permits]

-Government organization / attitude [ does the government have a very positive attitude towards this -Competition regulation [ are there regulation for limiting competition] -Political Stability [ politically , does the

industry]

government

have

a very

stable government ]

-Safety regulations [ has the government adopted some of the modern safety regulations] ============================================================= ==== Economic [P[Economics][STEL ] -Economic growth [ what is the economic growth rate / what are the reasons ] -Interest rates & monetary policies [ are the interest rates under control / is there -Government spending [is government spending is significant

a sound monetary policies]

and is it

under control ]

-Unemployment policy [what is the employment / unemployment policies of the government ] -Taxation [ has the taxation

encouraged the industry ]

-Exchange rates [ is there well managed -Inflation rates [ is the inflation well

exchange controls and is it helping the industry]

under control ]

-Stage of the business cycle [ is your industry is on the -Consumer confidence [ is the consumer confidence

growth pattern]

is

high/ strong and if not, why ]

================================================== Social [ PE[Social]TEL ] -Income distribution [is there balanced income distribution

policy ]

-Demographics, Population growth rates, Age distribution [ what is population growth and why ] -Labor / social mobility [ what are the labor policies and is there labor mobility] -Lifestyle changes [ are there significant lifestyle

changes

taking place--more modernization/ why ]

-Work/career and leisure attitudes [ are the population career minded and are seeking better lifestyle] -Education [ what are the education policies / is it successful ] -Fashion, hypes [are the people

becoming fashion conscious ]

-Health consciousness & welfare, feelings on safety [ are the people becoming health consciousness] -Living conditions [ is the living conditions

improving fast and spreading rapidly]

========================================================= Technological [ PES [Technology] EL] Government research spending [is the government spending on research and development] Industry focus on technological effort [are the industries focused on using improved technology] New inventions and development [ are new inventions being encouraged for developments] Rate of technology transfer [ is the rate of technology transfer is speeding up ]

(Changes in) Information Technology [ is the information technology rapidly moving and is there government support] (Changes in) Internet [ is the internet usage

rapidly increasing

and why]

(Changes in) Mobile Technology [is the Mobile technology rapidly developing and is there government support]

FOR EACH OF THE ELEMENTS, YOU CAN ASK MORE QUESTIONS AND SEEK THE FACTUAL SITUATION. =========================================================== Below you will find examples of each of these factors, the impact on the HUMAN RESOURCE INDUSTRY. The same logic could be applied to the hotel industry.

Political (incl. Legal)

[ [Poltical] EST[Environment][Legal] ]

========================================== -Tax policies what tax hinder the business and what taxes incentives are available] [ if the tax policies are liberal / incentivated, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ======================================== -International trade regulations and restrictions [ does the government encourage exports / with high tariffs on imports] [ if the exports policies are liberal / incentivated, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING -----------------------------------------------------------------------------------------[ if the import policies are liberal / incentivated, local mfg. businesses will contract , which means the impact on HR -less RECRUITMENT/ SELECTION -MORE TRAINING to improve efficiency / productivity ====================================================== -Employment laws] [ is the government encouraging skilled immigrants with temp. permits] [if the government relaxes the rules on skilled migrants, which means the impact on HR -EMPHASIS WILL BE ON FOREIGN RECRUITMENTS. -DEVELOPMENT OF OVERSEAS CONTRACTS -TRAINING FOR THE INCOMING STAFF ON LOCAL CULTURE. -TRAINING FOR MANAGERS TO MANAGE DIVERSITY =======================================================

Economic

[P[Economics][Social]TEL ]

-Economic growth [ what is the economic growth rate / what are the reasons ] [ if the economy is on growth path, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING -COMPENSATION NEEDS REVISION -------------------------------------------------------------------------------[ if the economy contracts/demand drops, businesses will reduce volume , which means the impact on HR -less RECRUITMENT/ SELECTION -MORE TRAINING TO IMPROVE EFFICIENCY/PRODUCTIVITY -MORE INCENTIVATES FOR PRODUCTIVITY GAIN =================================================== -Interest rates & monetary policies [ are the interest rates under control / is there a sound monetary policies] [ if the interest rate goes down/ the monetary policies are liberal, as the demand goes up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ---------------------------------------------------------------------------[ if the interest rate goes up , the demand will go down businesses will downsize / cut cost which means the impact on HR -less RECRUITMENT/ SELECTION -MORE TRAINING for efficiency / productivity improvements -EMPHASIS WILL BE FOR ''PAY FOR PERFORMANCE''. =================================================== -Government spending [is government spending is significant and is it under control ] [ if the government increases the spending on infrastructures etc, the demand goes up , businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ================================================== -Unemployment policy [what is the employment / unemployment policies of the government ] ===================================================== -Taxation [ has the taxation encouraged the industry ] [ if the taxation policies encouraged the industry, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION

-MORE INDUCTION / ORIENTATION -MORE TRAINING =======================================================

-Consumer confidence [ is the consumer confidence

is

high/ strong and if not, why ]

[ as the consumer confidence goes up, more jobs are created, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ================================================== Social [ PE[Social]TEL ] -Income distribution [is there balanced income distribution

policy ]

[ as the income level goes up and income distribution improves, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ================================================== -Demographics, Population growth rates, Age distribution [ what is population growth and why ] [ as the population level goes up and age distribution improves, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ==================================================== -Lifestyle changes [ are there significant lifestyle

changes

taking place--more modernization/ why ]

[ as the life style goes up and more modernization improvements, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ========================================================= -Work/career and leisure attitudes [ are the population career minded and are seeking better lifestyle] [ as the income level goes up and workers attitudes changes, demand for product/services will go up, businesses will add expansion , which means the impact on HR

-MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ================================================== -Education [ what are the education policies / is it successful ] [ as the education level goes up and income distribution improves, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ======================================================= -Living conditions [ is the living conditions

improving fast and spreading rapidly]

[ as the income level goes up and living conditions improves, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ========================================================= Technological [ PES [Technology] EL] ================================================== Industry focus on technological effort [are the industries focused on using improved technology] [ as the industry focuses on technology, more jobs are created, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ======================================================== New inventions and development [ are new inventions being encouraged for developments] [ as more inventions are brought out, more jobs are created, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING ====================================================== Rate of technology transfer [ is the rate of technology transfer is speeding up ] [ as the rate of technology transfer speeds up, more jobs are created, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING =======================================================

(Changes in) Information Technology [ is the information technology rapidly moving and is there government support] [ as the IT usage increases, more jobs are created, demand for product/services will go up, businesses will add expansion , which means the impact on HR -MORE RECRUITMENT/ SELECTION -MORE INDUCTION / ORIENTATION -MORE TRAINING =========================================================== FOR EACH OF THE ELEMENTS, -I HAVE SHOWN THE POSITIVE SIDE OF THE POLICIES, THE BUSINESS POSITIVE IMPACT -THE POSITIVE HR REACTIONS.

IN

THE

SAME MANNER,

-ALL NEGATIVE SIDE OF THE POLICIES, WILL HAVE THE BUSINESS NEGATIVE IMPACT WHICH MEAN HRM WILL HAVE TAKE RATIONAL ACTION PLAN TO SUIT THE SITUATIONS, WHICH COULD INCLUDE -downsizing of employees nos. -restructuring of the organization -re training -multiskilling -jobs re organization -more skill training -pay for performance etc etc etc.

Conclusion

PEST analysis looks at the external business environment and is an appropriate strategic tool for understanding the "big picture" of the environment in which business operates, enabling the company to take advantage of the opportunities and minimize the threats faced by thier business activities. When strategic planning is done correctly, it provides a solid plan for a company to grow into the future.

With a PEST analysis, the company can see a longer horizon of time, and be able to clarify strategic opportunities and threats that the organisation faces. By looking to the outside environment to see the potential forces of change looming on the horizon, firms can take the strategic planning process out of the arena of today and into the horizon of tomorrow.

Macro environment analysis PESTLE Political The Excelsior Hotel made sure that they were aware of the political situation of every country they have operated in and the company has made sure that it has a reasonable position with regards to political issues. The Excelsior Hotel is continuously prepared for any problems concerning the political sector. Any political noise is irrelevant to the company. Unless the political environment will change rules that relate to their operations, The Excelsior Hotel prefers to stay away from such subject. The political environment has allowed the liberation of the market, liberation of the market paved the way for improvement of services. The laws of Hong Kong will not be a hindrance to the growth of The Excelsior Hotel. It will provide the much needed help in making sure that the company will achieve its goals. The laws of Hong Kong will give guidance to The Excelsior Hotel so that the company can achieve its goals without major issues from the government.

Economic The Excelsior Hotel can be said to be economically stable for the past years. Its economic stature is doing well thats why they try to improve their products to give the best to their clients. It is not only the internal economic situation of the company should be taken note of but also the economy of the country. The Excelsior Hotel checks first the economic status of the country they are operating in before making decisions if they will have a branch in that area and since Hong Kong has been doing well economically then there is no reason for The Excelsior Hotel to abort expanding in that market. The economic forces can dictate the actions of The Excelsior Hotel, if the economy is doing well then The Excelsior Hotel can offer new services but if the economy is in a worse state then The Excelsior Hotel have to reduce unnecessary expenditures and un important actions. The economy Hong Kong and the Asian Region as a whole has given opportunities to hotel businesses. The status of the economy has paved the way for various hospitality and hotel businesses to prosper in the region and help in proving that Hong Kong and Asian Region is one the premier region that houses the industry.

Social The socio cultural force serves as the conscience to The Excelsior Hotel. This force ensures that The Excelsior Hotel will not do things they know can ruin The Excelsior Hotels reputation with the society. This force ensures that the company will consider first its environment before making any decisions. The Excelsior Hotel makes sure that the services they offer will be accepted by the general public. Since it is already owned by Mandarin Oriental, it has to follow the social strategies used by the company. The Excelsior Hotel does not authorize the delivery of some services they know will cause outbursts or complains from different groups in the

society The Excelsior Hotel also engages in social activities that tend to develop a better relationship between them, the clients and the society they are operating in. Technological The Excelsior Hotel offered new innovations in its technological aspect and introduced new concepts with regards to its industry. The Excelsior Hotel makes use of highly advanced register systems. It also makes use of better security systems to rooms, hallways and other vital places. Since technology rapidly changes. The Excelsior Hotel makes sure they are updated to what is happening and they can adjust to these changes. If other companies use new technologies to provide services, The Excelsior Hotel has the technology capable of competing with such technologies. The technological forces dictate the trends in the hospitality industry, these forces is the one that determine what should be used to provide a service. The Excelsior Hotel relies on its kind of service and the products created by the technological forces; the products of these forces are the ones that can give The Excelsior Hotel advantage over their rivals and success in the hospitality industry.

Legal The Excelsior Hotel makes sure that it follows the different laws of a country they engage transaction in. The company doesnt want to risk their clients welfare and company image by breaking local and international laws. The Excelsior Hotel makes sure that the transactions they engage in will have a legal basis and will be sanctioned by local or international legal organizations. The Excelsior Hotel makes sure that they know the laws of a country before opening any branch there. Environmental The Excelsior Hotel makes sure that the products they use are proven to cause minimal problems to the environment. The Excelsior Hotel puts up certain regulations on what type of product they will use in providing service to the clients. As much as possible the materials used by The Excelsior Hotel have passed environmental restrictions. The Excelsior Hotel has also introduced better waste management strategies that aim to reduce pollutants and create a cleaner environment for the future. The Excelsior Hotel makes sure that its waste system is organized to prevent any mistakes from the personnel. The Excelsior Hotel has well tested waste management systems that ensure that they do not contribute to environmental pollution.

Porters five forces Potential Entrants The Excelsior Hotel has been around for a quite some time and the company is not greatly affected by the new entrants. The influence of potential entrants to the company is weak. Any new entrant will have difficulty in gaining clients not unless they can provide innovative strategies that can thwart The Excelsior Hotel from its position and get the companys clients. The services offered The Excelsior Hotel is unique in terms of

appearance if any new entrant wants to compete with The Excelsior Hotels standard of service they need to have a huge investment to create services that have the same caliber as the services of The Excelsior Hotel. They also need to make use of better strategies that will give them an instant brand identity. Competitive rivalry Competitive rivalry has a low influence on The Excelsior Hotel. The company has lower concerns on its competitors since there are limited competitors in their industry. The competitors cannot give much problem to the company since it already acquired a good percentage of the buying public. But due to the plan to enter a new market, competitive rivalry is becoming a concern to the company. The Excelsior Hotel needs to make sure that it makes cautious decisions in Hong Kongs market.

Substitutes Substitutes give high influence to The Excelsior Hotel and its different branches since substitutes can make a company lose the clients it has. The substitutes can be in the form of online or actual stores. This kind of business is continuously growing and continuously changing strategies. Substitutes come in the form of motels and hostels. The Excelsior Hotel makes sure that the substitutes wont give them much problem. They do this by proving that the service they offer and the technologies they use to provide the service are the best quality and are better than substitutes or any other company.

Bargaining power of buyers . The bargaining power of buyers highly influences the hospitality industry and The Excelsior Hotel. It shows how the industry tries to create good relationships with clients. As much as possible the company maintains reasonable prices for their services. They also have promos that intend to make the clients have second thoughts on purchasing products from other companies. When the clients try to dictate lower pricesThe Excelsior Hotel tries to know whether it is reasonable. The Excelsior Hotel sees to it that a big part of decisions on prices will be based on suggestions of the clients. For The Excelsior Hotel the bargaining power of its buyer is gradually increasing as they are more similar types of services available in the Hong Kong market.

Bargaining power of sellers The bargaining power of sellers highly influences The Excelsior Hotel. The company makes sure that their suppliers have high bargaining power through helping them show their importance in the industry. The Excelsior Hotel makes sure that the price being asked for a material has the same value as the same materials quality. This will ensure that budgets will not be wasted. The Excelsior Hotel has to be aware of its partnership with its services partners and suppliers. The Excelsior Hotel has to make sure that every part of the agreement with the partners will be followed.

Conclusion for the five forces Among the five forces The Excelsior Hotel has high levels of influence on the bargaining power of buyers and seller and substitutes. These three forces can change the policies or strategies that The Excelsior Hotel use. It can also affect the standing of The Excelsior Hotel.

PEST is not a set of rigid compartments into which ideas need to be sorted. It is better thought of as a set of hooks that can be used to fish for important facts. Once the factors have been "fished out", it does not matter which hook they were attached to. When it comes to writing up the analysis, there is no need to mention the PEST labels at a

Internal Analysis Resources, Capabilities Resources The Excelsior Hotels resources come from reliable suppliers and manufacturers. The materials used in the hotel are made of the best kind of raw materials and come from reliable suppliers. Another resource for the company is its personnel that provide the best kind of service to guests and clients. The personnel make sure that clients receive the satisfaction they need.

Financial The company funds come from either Mandarin Oriental or from other sources like investors. The funds are used to pay for the different expenses of the firm. The funds of The Excelsior Hotel are used to pay for important expenses, the payment for all the employees, the cost of amenities, the cost of electricity, the cost of office materials and other costs or expenses.

Human In providing excellent service to the clients, a company needs to have a dedicated staff that performs well and knows that the service they give to the client can help The Excelsior Hotel have a positive or negative image. The staff of the company is well trained to ensure that the best service can be given to the clients. The company makes sure that it hires promising individuals that can assist in the companys task of reaching their goals. It makes sure that the personnel have a distinct skill that matches the companys goal.

Skill The Excelsior Hotels capabilities include its use of sophisticated technologies to provide the best kind of services. The Excelsior Hotel has a unique set of production regulations that makes sure that every stage in the companys operations will minimize any waste on time and effort. The Excelsior Hotel has made use of advanced technologies to provide services to the personnel and give them complete security.

Capabilities The main capabilities of the company are on the well trained personnel. The personnel serves as the arm of the firm and they show how the company meant by total customer satisfaction. The personnel of The Excelsior Hotel are well skilled in assisting the clients and giving them excellent service. The company makes sure that they hire individuals who are skilled in management, human relations, fine dining and other qualities that a member of a hotel business needs. The Excelsior Hotel also looks for various activities, seminars, and symposium that will help the personnel improve their skill. A rare capability for the firm is to maintain its image amidst the takeover by Mandarin Oriental. The company was able to keep its position in the market amidst the change in management and ownership.

Competencies

Core Competencies The core competencies of The Excelsior Hotel include its personnel and corporate competency wherein the focus is on the companys relationship with its internal and external environment. These two competencies assist the company in its daily operations. It also provides the company the capability to create new trends in the market. The two competencies are given extra attention by the company since these two competencies can do various things for the company. In the instance of one of the competencies experiences some problem the company has to create solutions or it will experience more problems that may hamper the operations of the company.

Distinct Competencies The Excelsior Hotels distinct competencies include its ability to provide services with a high value but with minimal costs. The company makes sure that the employees are paid accordingly but the personnel are expected to provide a good kind of service. The companys distinct competency is embedded on its efficiency of service. The company also makes sure that the best lodging and assistance will be given to the clients. Conclusion The Excelsior Hotel has achieved success through strategic management. This hotel had achieved success in its internal and external environment through the proper use of strategic management. Its strategies were seen on knowing how it operated under the Political, Economic, Social, Technological, Legal and Environmental forces. Its strategies were visible through how they developed their internal environment. The strategies used by The Excelsior Hotel helped the company attain its goals. The Excelsior Hotel had contributed to the success of the economy of Hong Kong through creating an interest for tourists to return to the country. Excelsior Hotel did not steer away from the strategies that gave it success before it was acquired by Mandarin Oriental.

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