1.5 External Environment Flashcards
What is a ‘STEEPLE’ analysis?
STEEPLE offers an overview of various external fields, these elements can affect your business.
What does ‘STEEPLE’ stand for?
- Social
- Technological
- Economic
- Environmental
- Political
- Legal
- Ethical
What are some common ‘social’ factors?
Education, income distribution, living conditions, population growth rate, age distribution.
What are some common ‘technological’ factors?
Changes in internet, changes in mobile technology, energy use, new inventions and development.
What are some common ‘economic’ factors?
Taxing, inflation, deflation, economic growth, interest rates.
What are some common ‘ethical’ factors?
Unfair labour practices, marketing products that are not in the best interest of society
What are some common ‘political’ factors?
Trade policies, competition regulations, government attitude, political stability
What are some common ‘legal’ factors?
Laws, trade unions
What are some common ‘ecological’ factors?
Natural resources, global warming, recycling,
What are some economic factors that might affect businesses?
- Business/ economic cycle
- Exchange Rates
- Fiscal Policy
- Monetary Policy
- Inflation
- Unemployment
What is the ‘business cycle’?
Involves periods of economic growth that alternate with periods of recession.
What are ‘exchange rates’?
Exchange rates refer to the cost of one country’s currency in terms of another country’s currency. If currency is stronger than it’s cheaper to purchase goods from foreign goods (importing).
What is ‘Fiscal Policy’?
Changes in government spending levels and tax
What is ‘Monetary Policy’?
Changes in the level of interest rates which make loan capital more or less expensive
What is ‘inflation’?
Inflation refers to an increase in prices, usually calculated as an annual rate of increase
