1.5 External Environment

STEEPLE Analysis

  • Business tool for understanding a business’ external environment
  • Guides decision making by analyzing opportunities and threats

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1. Social Factors

  • Population demographic can change
  • Society’s attitude towards more issues
  • Cultural and religious beliefs
  • Societal pressures towards more ethical and social responsibilities
  • Language

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2. Technological Factors

  • Innovations in technology
  • Information technology (social media enhances)
  • New working practices
  • Job creation
  • Productivity and development

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3. Economic Factors

  • Controlled inflation (rise in general level of prices)
  • Reduced employment
  • Economic growth
    • Boom - level of economic activity rises
    • Recession - fall in GDP for 3 quarters
    • Trough (slump) - bottom of recession
    • Recovery - level of GDP starts to rise
  • Foreign relations and exchange rates

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4. Environmental Rates

  • Changes in social attitudes towards environment
  • Weather and seasonal changes
  • Health scares
  • Waste disposal and recycling from media and pressure groups

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5. Political Factors

  • Laws and policies
  • Increase or decrease in interest rates
  • Political corruption

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6. Legal Factors

  • Consumer protection legislation
  • Employee protection legislaion
  • Competition legislation
  • Social and environmental protection legislation

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7. Ethical Factors

  • Client confidentiality
  • Bribery and other illegal transactions
  • Treatment of employees

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Consequences with Changes to the STEEPLE Analysis

  • ETHICAL views and SOCIAL norms
    • Affect company’s products, activities, and marketing strategies
  • POLITICAL and LEGAL
    • Force businesses to operate and comply to regulations
  • TECHNOLOGICAL
    • Adaption of newer technology and efficiency increase
  • ENVIRONMENTAL
    • Forcing engagement in sustainable production processes
  • ECONOMIC
    • Affect costs of operations, spending attitudes of customers

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