1.5 External environment

Question 1

STEEPLE analysis

Answer 1

External factors that impact on business; it refers to a framework for analysing the external environmental factors affecting business objectives and strategies:
- Social
- Technological
- Economic
- Environmental
- Political
- Legal
- Ethical

Question 2

Social factor in STEEPLE

Answer 2

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

Question 3

Technological factor in STEEPLE

Answer 3

The state of the technological advancement and introduction of new technologies.

Question 4

Economic factor in STEEPLE

Answer 4

GDP growth rate, inflation rates, interest rates, exchange rates.

Question 5

Environmental factor in STEEPLE

Answer 5

Weather and climate of the region, the fora and fauna of the region, environmental pressure group activity.

Question 6

Political factor in STEEPLE

Answer 6

The type of government that exists and its ideology as shown by its attitude to free markets, business incentives offered and the stability of the government.

Question 7

Legal factor in STEEPLE

Answer 7

Law influencing business activity.

Question 8

Ethical factor in STEEPLE

Answer 8

The general code of ethics followed by most people in the country.