STEEP analysis (Social, Technological, Economical, Environmental, and Political) is a

framework to gauge how the external environment will have an impact on the strategic planning

of MC to remain competitive. A STEEP analysis of challenges faced by Mitsubishi automobile

industry is as follows:-

1. Mitsubishi is always confronted with language barrier for the reason that it is a Japanese

owned multinational brand. In this case, most elderly Japanese employees speak their native

language such as Nihongo (Japanese language). According to Gao (2005) this is one reason why

there are some dispositions and miscommunications between the employers and managers

located in Japan and employees who are working outside Japan. The mode of writing that are

utilized by the Japanese administrators of Mitsubishi conveys further misunderstanding with

other non-Japanese employees who neither speak nor write Nihongo language.

Another issue is the age because most Japanese employees are not keen on volunteering to learn

any much longer because they feel that they are already old enough to be trained and to know

more insights or practices (Armstrong, 2006).

2. Technological- do some research?

Employees are not always technological savvy because they are exposed to certain areas that

need computer skills to accomplish their tasks. This includes sales, production, and as an agent

because it is more with personal dealership rather than being involved with paper works while

they are serving their own responsibilities with the company (Armstrong, 2006). Employees

need to be oriented on how to use a computer, which still needs more time and effort due to the

complexity of processing and manipulating data in order to accomplish tasks in relation with the

company’s productivity. Employees need to be oriented with their responsibilities at work before

ANALYSIS OF AN INTERNATIONAL BUSINESS: MITSUBISHI CORPORATION 1

they are going to be exposed because they need to understand the function of each machine that

they are going to handle. In this case, they will learn how to deal with a certain facility that

keeps the company to become more versatile while helping other employees to become efficient

and competitive with the company (Storey, 2007).

Terminology

2011

Tohoko

earthquake

A major earthquake phenomenon occurred in Japan’s northeast coast that caused

an intensity 10 ground shaking and produced massive tsunami as based from

Mitsubishi Chemical Corporation (2011).

ANALYSIS OF AN INTERNATIONAL BUSINESS: MITSUBISHI CORPORATION 2

Financial

crisis

An event where numerous financial institutions filed for bankruptcy that

impacted other businesses. It generated inflation increase, affecting socio-

economic lifestyle of local and international businesses and residents across the

world as indicated by Storey (2007).

Human

Resource

Managemen

t

A systematic management process that aims to improve services of the company

to become more productive. This includes promoting the productivity of the

company’s facilities as well as improving the financial investments to boost

consumer demand and production of more commodities.

Natural

Disasters

A natural phenomenon that naturally destroys infrastructures and facilities of an

operating facility. This includes typhoons, tornado, earthquake, tsunami, and

volcanic eruption as mentioned by Lafambois & Loko (2012).

Nihongo Japanese national language that is only commonly practiced across Japanese as

ANALYSIS OF AN INTERNATIONAL BUSINESS: MITSUBISHI CORPORATION 3

well as Japanese companies according to Gao (2005).

Taxation

policies

An economic related policy that aims to protect local and foreign investments of

products and services as indicated by Daniels (2012)

Tax Is a required amount of fee that applies to any product and service that complies

with the regulation of economic means according to Daniels (2012).