Peter roberts watches expanding in HONG KONG Essay

Peter roberts watches expanding in HONG KONG - Essay Example PESTEL analysis (Porter, 1980) focuses on the external forces that play a key in role in a firm’s ability to produce and sell. The political analysis relates to the political context of a country and governments often use them to influence the business operations. According to (Porter, 1980), these factors include trading policy; international relations and taxation policy just to mention a few. Hong Kong is relative a stable and thus offers an excellent environment for international investors to conduct business. However, the imposition of 30% tax on international companies while letting local companies free could pose challenges to Peter Roberts watches in terms of competition (HKTDC Research, 2015). Porter (1985) posits that economic factors have a significant effect on business and, in particular, the national economy where the business is located. The economic factors influence business largely in terms of income, interest rates, and general demand. Kotler et al. (2013) argues that high-interest rates discourage investment whereas high inflation affects employee wages. Hong Kong is a rising, stable economy with low inflation rates; consequently, this will be more appealing to Peter Roberts Watches to conduct business. Porter (1985) describes social factors as encompassing factors such as population growth rates, social attitudes, and social demographics among others. The significance of these factors is in their ability to affect the demand for a firm’s goods. Hong Kong’s population has a significantly large proportion of its population composed of the Y-generation (Lenway & Murtha, 1994). This generation is fashion conscious and has a high affinity for trendy products. Peter Roberts Watches firm’s ability to produce a variety of watches including fashion will ultimately appeal to this population hence market (Peter Roberts, 2015). Technological factors