1.5: External Environment (STEEPLE) (STEEPLE Analysis: (STEEPLE: the…
1.5: External Environment (STEEPLE)
STEEPLE: the social, technological, economic, environmental, political, legal and ethical opportunities and threats a business may have to deal with.
Opportunities are the external factors which present chances for the business, and threats are the external factors which can harm a business (oil crisis, economic recession, etc.)
STEEPLE is an analytical tool which assists the senior directors of an organisation make a decision. If the opportunities outweigh the threats, the firm is likely to make the decision, and vice versa.
External factors, however, are highly unstable/unpredictable - exogenous shocks can heavily affect the success of a decision.
Key advantages: simple; allows thorough + logical thought processes to take place; useful brainstorming tool; encourages discussion; better informs + prepares managers for external shocks.
Factors: social, cultural factors; population demographics; demographic in workforce (particularly ^no. of women); LGBTI market; multiculturalism; community pressure (social + environmental issues)
Opportunities: new working practices; increased efficiency and productivity; faster product development time; job creation (quaternary); new products and new markets.
Threats: is not always reliable or secure; shorter product life cycles (new products are always being marketed); can be costly; job losses due to automation.
Opportunities: speed of access to information; reducing language and cultural barriers; reduced costs (e-commerce); overcome geographical limitations.
Threats: price transparency; online crime; higher production costs; reduced productivity (employees access social media + personal accounts).
Factors to consider: costs; benefits; human relations (resistance to change); recruitment and training ($ of training workers to learn skills to use technology)
Impact customer access + communication; adv./contractions can shape + change a business' operations; tech. comes at a significant capital cost.
Factors: economic cycles; trade restriction; inflation; unemployment; level of economic activity; growth opportunities; customer confidence (the degree of optimism customers/consumers feel about the economy and their personal finances; 'Consumer Confidence' studies the saving and spending intention of the customer.