STEEPLE analysis

Question 1

Steeple

Answer 1

Social, Technological, Environmental, Political, Legal, Ethical,

Question 2

social factors

Answer 2

• factors related to people, lifestyles and beliefs, can affect the level of economic activity in a country; demographics, religious beliefs, society’s views on ethical behaviour, social attitudes towards discrimination.

Question 3

technological factors

Question 3

economic factors

Answer 3

refer to the determinants of an economy’s performance. changes in economy that can affect the business environment. can be explained by the business cycle. level of economic activity is measured by gross domestic product GDP measuring the total value of national output per time period.

Question 4

business cycle

Answer 4

Boom: spending, employment and prices rise due to an increase in economic activity in the economy

Peak: a high point in the business cycle, therefore a receission sets in as booms are not sustainable in the long run; prices are high, causing a fall in the economy’s competitiveness

Recession: a decline in economic activity, leading to lower employment and falling business and consumer confidence levels.

slump: bottom/lowest point in the business cycle, with mass - scale unemployment and falling prices.

REcovery; when economic activity and employment start to rise following a slump

Question 5

environmental factors

Answer 5

refer to the ecological aspects of. business activity that can have positive as well as negative impacts on organisations.

Question 6

political factors

Answer 6

refers to the role that governments play in business operations, affecting business operations in an array of facets.
- degree of political stability in a country
-restrictions on international trade such as the use of quotas on the number of imported foods can be sold in the domestic economy.
-different tax laws or changes in the tax system have a significant impact on business operations.
-

Question 7

legal factors

Answer 7

laws that affect the way in which businesses operate as well as how customers behave. Changes in the legal systems or laws have a direct impact on business operations

• legal procedures for setting up businesses
• minimum quality standards to protect consumers
• consumer protection laws
• employment laws
• intellectual property rights
• laws on environmental protection

Question 8

ethical factors

Answer 8

refers to the moral values and beliefs that apply to businesses and how they operate. There is an increasing expectation for businesses to consider the impact of their operations on all stakeholder groups, society as a whole and the environment.