1.5 External environment Flashcards
STEEPLE analysis
An acronym standing for social, technological, economic, environmental, political, legal and ethical external factors that impact a business. It refers to a framework for analysing the external environmental factors affecting business objectives and strategies
What does STEEPLE stand for?
Social
Technological
Economic
Environmental
Political
Legal
Ethics
Social
Attitude of society towards wide range of issues
Population demographics (more young/old, more women/men, etc.)
Roles and attitudes of people
Cultural and religious beliefs
Security and education
Technological
Use of tools and machines
Information technology
Innovations in technology
Economic
State of the economy
Interest and tax rates
Exchange rates and foreign relations
Inflation rates, unemployment rates, etc.
Environmental
Abundance of natural resources or raw materials
Threats from nature (or natural disasters)
Waste disposal/recycling
Political
Laws (employment, consumer, business) & policies (fiscal and monetary)
Changes brought about by new government
Possible effects of political unrest
Legal
Employment or contract laws
Trade unions
Environmental protection regulations
Ethical
Client confidentiality
Bribery and other forms unethical (and possibly illegal) business transactions
Fair competition
Social changes in countries
Ageing population
Changing role of women
improved deception facilities
Early retirement in high income countries
Rising divorce rates
Job security
Increased levels of immigration
Advantage of technological change
Opening up new products in the market.
Impact of technology on objectives and strategies
Focus on new product development
Improve stakeholder communication
Developing new and better processes
Cost benefits
Competitive advantage
Outsourcing and offshoring - the impact of globalisation
Advantage of technology on management
Managers obtain data frequently from all departments
Computers can be used to analyse and process the data rapidly
Accelerates the process of communication decisions to other managers and staff
Drawbacks of technology
Lead to so many messages that there is information overload
Power of information brought to mangers could be abused
Main economic influences and government economic policies
Economic growth and recession
Interest rates
Exchange rates
Tax changes through the use of fiscal policy
Unemployment
Inflation
