DP BM - STEEPLE analysis

toolkit 3

What is STEEPLE?

a situational analysis tool used to examine the external opportunities and threats that affect business activities

What does STEEPLE stand for?

Social, Technological, Environmental, Economic, Political, Legal, Ethical

How do opportunities differ from threats?

• opportunities - prospects for business

• threats - external factors that can harm a business

What is the purpose of a STEEPLE analysis?

examine the advantages and disadvantages of a situation

What is are two key advantages of STEEPLE analysis?

• relatively simple to use

• encourages thorough and logical decision making

What is a key disadvantage of STEEPLE analysis?

static analysis despite external factors being subject to rapid and unforeseeable change

Describe a possible analysis method that can be used instead of STEEPLE analysis

PEST analysis

• Political includes legal

• Social includes ethical + environmental

6 examples of social consideration

• environmental protection

• empowerment of women

• emphasis on social responsibility + ethics

• multiculturalism

• ageing population

• language

What does the technological environment signify?

scientific knowledge and application in the external environment

5 possible technological opportunities

• quicker product development (CAD/CAM tech)

• productivity and efficiency gains

• new (flexible) working practices

• job creation

• new products and markets (thru tech innovation)

4 possible technological threats

• lack of reliability and security

• need for upgrades and replacements

• job losses

• costs

4 opportunities presented by internet technologies

• speed of access to info

• overcoming geographical limitations

• e-commerce

• reduced language and cultural barriers

4 threats presented by internet technologies

• hacking

• maintenance costs

• price transparency

• reduced productivity

considerations when adopting technologies

• costs

• benefits

• human relations

• recruitment and training

What are the government’s four key economic objectives?

• control inflation

• reduce employment

• achieve economic growth

• achieve healthy international trade balance

additional terms on economic - p.625

examples of protectionist measures - p.626

5 examples of economic considerations

• confidence levels → consumer spending

• protectionist policies

• inflation and exchange rate

• stage in business cycle

• economic growth and GDP 

3 environmental considerations

• respect for environment

• weather and seasonal changes

• health scare, epidemics, pandemics

4 examples of political consideration

• political stability and corruption

• government policies

  • market approach

  • taxation

  • interest rate policies

2 examples of legal considerations

• legislation (employee and consumer protection, competition)

• bureaucracy or deregulation

business ethics

moral principles that are or should be considered in business decision making, based on societal judgement → responsible behavior

4 examples of ethical considerations

• pressure groups

• social perception and sensitivities

• external social audits

• compliance costs

limitations of STEEPLE

strengths of STEEPLE

add def. for each kind of factor?