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STEEPLE - Coggle Diagram
STEEPLE
Technological
Some of the biggest technological changes over the last few decades are related to the explosion of innovations in information technology.
Closely linked to the growth of information technology is the increasing availability of big data that can be exploited by companies to understand and meet the needs of their clients
Other key technologies include nanotechnology, with applications in fields as varied as textiles and electronics, and genetic engineering, which is leading to advances in medical and agricultural science. Technologies like 3D printing, artificial intelligence and robotics are just beginning to change the way we live and work.
In addition to these technologies that are driving change worldwide, a more traditional factor to take into consideration is the availability of infrastructure, particularly in developing countries. Infrastructure includes things like ports and road and rail networks, drinking water and sanitation facilities, and communication networks and reliable electricity, all of which are necessary to doing business.
Sociocultural
Religion includes consideration of both the dominant and minority religions of the population, as well as the importance and influence of religion in daily life.
Cuisine is also included in sociocultural factors: what do people eat, at what time, and with whom? In the case of Disney, the company failed to foresee the importance of the midday meal in France, where people often enjoy wine at lunch. The company initially did not sell alcohol at the park, but this was soon changed.
Family life: Are families large or small? Is the nuclear family the essential family unit, or do extended families including several generations live together under one roof?
Demographics is included with sociocultural factors. What are the statistics in terms of fertility and life expectancy? What does the pyramid of age look like? Figure 3 and Figure 4 below represent the average age of the populations in Japan and Uganda respectively. What goods and services might be demanded by an aging population in Japan that would not find a significant number of buyers in Uganda?
Health and types of diseases can also be included in this category. What diseases are most prevalent in the country and do all citizens have access to health care? Figure
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Economic
Gross domestic product (GDP) is calculated as the total monetary value of all final goods and services produced in an economy in a given period of time. Annual GDP is often used to estimate the overall size of an economy. Changes in GDP indicate whether an economy is growing or retracting (recession).
GDP per capita is calculated by dividing total GDP by the population of a country. GDP per capita is used to measure the relative wealth or poverty of a nation.
Recession refers to the case where GDP decreases for two or more quarters. A quarter refers to a three-month period; there are therefore four quarters in a calendar year.
Depression is used to describe a prolonged or particularly severe recession. There is no established criterion for defining depression in an economic context.
Inflation refers to an increase in prices, usually calculated as an annual rate of increase. The most used indices for inflation refer to consumer prices (Consumer Price Index – CPI) in a given country; although other measures also exist (for example wholesale price indices measure prices paid by retailers to purchase goods in bulk).
Deflation refers to a decrease in prices. Deflation is less common than inflation, although it does occur when economies slump, or in certain industrial sectors, such as electronics, where advances in technology permit a reduction in costs.
The interest rate is the cost of borrowing money. Interest rates vary over time, as a function of the overall economic climate. Interest rates also vary according to risk; borrowers judged to be riskier are usually charged higher rates.
The unemployment rate is calculated as the percentage of the labour force that is out of work but actively seeking employment at a given time.
Imports are goods brought into a country and exports are goods manufactured in a country and sold abroad.
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Environmental
The quantity and quality of available fresh water. The availability of fresh water is an increasing constraint on business activity in many parts of the world. Large amounts of water are essential for agricultural use and power production, as well as for industries like paper production and food processing.
Climate change is already having an impact on businesses worldwide. Most experts agree that climate change has already altered weather patterns and increased the frequency of storms and floods, as well as forest fires and droughtS
Political
Politics is ever-present in business decision-making. From a sole trader seeking permission from a local government to open a new outlet, to a multinational company seeking access to oil fields, all businesses have to take political factors into account.
Legal
Business must at a minimum abide by all existing laws and regulations. These are generally made by central governments, but additional rules may be set by local authorities. Companies must obey the law not only in their home countries, but in all the countries where they operate.
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