STEEPLE analysis Flashcards
]STEEPLE?
S: Social
T: Technological
E: Economic
E: Environmental
P: Political
L: Legal
E: Ethical
What is a STEEPLE analysis?
Analysis of external environmental opportunities. ALl businesses are affected by factors from external environment which are beyond their control.
Benefits of STEEPLE analysis?
STEEPle is central to business strategy
Helps anticipate opportunities or threats from the external environment
Can be used to access feasibility of business strategies
What are social opportunities and threats?
Social factors that can affect business activity include: Social, Cultural, Demographic, Values/attitudes
What are technological opportunities and threats?
Technological developments present constant opportunities and threats. These factors affect all aspects of business functions.
ADV of technological developments for the internet
Speed of access to information
Reduces language and cultural barriers
Reduced costs
Overcome geographical limitations
DIS of technological developments for the internet
Price transparency
Online crime
higher production costs
Reduced productivity
What are economic opportunities and threats?
Businesses operate in an economic environment where government aims for the following:
- Controlled inflation
- Reduced unemployment
- Economic growth
- Health balance of trade
What is inflation/
Inflation is continual rise in general level of prices in an economy. High inflation not descirabgle as they increase costs for a business.
What is unemployment rate?
Measure of proportion of a country’s workforce not in official employment. Not desirable as spending on goods and services will dcilne from insufficient income
What is economic growth?
Increase in economic activity which is measured by DGP. Economic growth means economy is more prosperous which leads to greater consumer spending on goods and services.
What is balance of trades?
Difference between value of a country’s export earnings and its import expenditure. If in imbalance, more undesirable as it causes exchange rate to fluctuate. Can cause export prices to decline whilst import prices increase.
