1.5 External environment

STEEPLE analysis

: acronym standing for social, technological, economic, environmental, political, legal and ethical external factors that impact on business; it refers to a framework for analyzing the external environmental factors affecting business objectives and strategies.

impact of globalization

Outsourcing and offshoring- the .

Environmental controls

on business activities such as waste disposal, use of sustainable energy, reducing packaging.

Exchange rates

- increases (appreciation) and decreases (depreciation) in the value of a currency value against other currencies.

Interest rates

- the use of monetary policy.

Competition laws

can restrict unfair competition or restrictive practices by businesses, monopoly exploitation of consumers, mergers and takeovers (external growth) that could lead to a monopoly.

protection laws

Consumer that constrain businesses from advertising inaccurately or inappropriately, selling faulty goods or those described incorrectly, high- pressure selling tactics, not allowing consumers to change their minds after signing credit agreements.

STEEPLE analysis

acronym standing for social, technological, economic, environmental, political, legal and ethical external factors that impact on business; it refers to a framework for analyzing the external environmental factors affecting business objectives and strategies

Outsourcing and offshoring

the impact of globalization

Interest rates

the use of monetary policy

Exchange rates

increases (appreciation) and decreases (depreciation) in the value of a currency value against other currencies

STEEPLE analysis

Acronym standing for social, technological, economic, environmental, political, legal and ethical external factors that impact on business; it refers to a framework for analyzing the external environmental factors affecting business objectives and strategies

Impact of technology on objectives and strategies

Focus on new product development; improve stakeholder communication; developing new and better processes; cost benefits; competitive advantage; outsourcing and offshoring

Economic influences

Economic growth and recession; interest rates the use of monetary policy; exchange rates increases and decreases in the value of a currency value against other currencies; tax changes through the use of fiscal policy; unemployment; inflation

Environmental influences

Environmental controls on business activities; threats from natural events; natural resources; infrastructure road and air transport facilities

Political influences

Government stability; form of political structure; government's attitude to private ownership; trade policies and membership of free trade areas or Customs Unions

Legal influences

Improved employee legal protection; consumer protection laws; competition laws can restrict unfair competition or restrictive practices by businesses, monopoly exploitation of consumers, mergers and takeovers

Ethical influences

National differences in the values and attitudes held by the majority of the population