1.5 External Environment

STEEPLE Analysis

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

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

2. Technological Factors

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

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

4. Environmental Rates

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

5. Political Factors

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

6. Legal Factors

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

7. Ethical Factors

• Client confidentiality

• Bribery and other illegal transactions

• Treatment of employees

  

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