1.5 External Environment

Question 1

STEEPLE Analysis

Answer 1

A framework for analyzing the external environmental factors affecting business objectives and strategies, namely, social, technological, economic, environmental, political, legal, and ethical factors

Question 2

Social

Answer 2

Population size + structure, lifestyle, age groups, and education levels

Question 3

Technological

Answer 3

The state of technological advancement + introduction of new technology

Question 4

Economic

Answer 4

Factors such as GDP growth rate, inflation rates, interest rates and exchange rates

Question 5

Environmental

Answer 5

Includes weather and climate of the region, the flora and fauna of the region, environmental pressure group activity

Question 6

Political

Answer 6

Factors such as the type of government that exists and its ideology as shown by its attitude to free markets, imposition of tariffs, business incentives offered, and the stability of the government

Question 7

Legal

Answer 7

Factors include any law influencing business activity (eg. competition, law, health and safety at work, consumer protection, employee protection)

Question 8

Ethical

Answer 8

The general code of ethics followed by most people in the country, and the tendency of people to be ethical