Business - STEEPLE Analysis

STEEPLE Analysis: Definition

• framework used to frame external issues affecting businesses and organizations

Social = changes in society or culture, ex: demographic change (social) or cultural change (increased preference for a particular product)

Technological = technological innovation forces changes in production techniques and development of new methods in competition

Economic = changes in the market conditions (presence of new competitors) or changes in the economy (like a global financial crisis)

Ethical = changes in ethical values to encourage or force businesses to change its practices

Political = change to the political system often forces businesses to change its approach

Legal = when responsibility for legislation changes from one party to another (ex: regulation or taxes)

Ecological = environmental awareness

Social: Definition

• Changes in society or culture, ex: demographic change (social) or cultural change (increased preference for a particular product)

• Social factors: demographic change & culture change

  • Trends, lifestyle, health, well-being, income distribution

Technological: Definition

• Technological innovation forces changes in production techniques and development of new methods in competition

• Ex: AI; internet; e-commerce; new technologies

Economic: Definition

• Changes in market conditions, state of the economy

  • Presence of new competitors, global financial crisis, unemployment, interest rates, globalization

  • Done through secondary research

Environmental: Definition

• Environmental awareness, depletion of natural resources, global warming, carbon footprints, organic farming

  • Net zero, sustainability

Political: Definition

• Change to the political system often forces businesses to change its approach

• Political stability, trade policies, laws and regulations

  • Friendly towards business?

Legal: Definition

• When responsibility for legislation changes from one party to another (ex: regulation or taxes)

• Laws that affect you

Ethical

• Changes in ethical values to encourage or force businesses to change its practices

• Corruption, transparency, fair trade, codes of business behavior