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External Environment - STEEPLE - Coggle Diagram
External Environment - STEEPLE
Social Factors
(Carolyn, Reyna)
~EXAMPLES~
Aging population (Carolyn)
The average age of the population increases. It has implications for recruitment & different spending patterns. (Carolyn)
Women who choose to have children at an older age (Carolyn)
They choose to have children at an older age so they can pursue their professional careers. Another reason might be because it may be abit costly to have childrens and all the things that come along with it (reyna)
Change in the net migration rate (measured differently between immigration and emigration) - reyna
Immigration: when people enter a country to live and to work (reyna)
Emigration: when people leave a country to work and live abroad (reyna)
Increase of retirement age (reyna)
This will cause a huge impact on the staffing cost, recruitment and different spending habits (reyna)
Divorce (Kathleen)
Couples getting divorced will affect the rate of single people in a household to increase. (Kathleen)
Birth rate/infant mortality rate (carly)
Higher or lower number of children means average age of population and consumers changes, and there will be a larger workforce in the future.
those related to people, lifestyle and their benefits and/or value (reyna)
Should be acceptable to the cultural norms. (Andrew R)
Environmental Factors (justin ws)
EXAMPLES
green technology, which is the use of the technology and science to reduce the human impacts on the natural environment (justin ws)
Global Warming and climate change have led to more stringent government policies to protect the environment. (justin ws)
relating to the ecological and environmental aspects of the business activity that can have positive as well as negative impacts on organizations. (justin ws)
To solve the current world issues relating to the environment such as global warming and clean energy. (Andrew R )
Ecological footprint of business will be counted to see how the business impact the envornment (Andrew Soekamto)
Weather conditions can cause huge disruptions to some businesses (Andrew Soekamto)
Location of the business can affect the employees (Jonathan)
Law and regulations about preserviing wildlife and the environment which may affect business es expansion or location decisions. (Nixon)
Compliance course = A fine or penalty that is given to any business that has misconduct business activities. (amanda)
adverse weather conditions can cause huge disruption to the business. (Carolyn)
Economic factors
(economic environment as a result of international economics and government policy) (carly)
taxation rates (fiscal policy)
Include different phases of the business cycle (Sherelyn)
Boom (expansion: when the business spends the employment and prices rise due to an increase in economic activity in the economy. (Carolyn)
Peak: the highest point in the business cycle, occurs before recessions happen (Carolyn)
Slump: a short and sharp decline in business activity which causes sales to fall (nicholas)
Recession: a decline in the economic activity, leading to lower employment rate and the falling of the business, and decrease in customer confidence. (Carolyn)
Recovery: this occurs when the economic activity and employment rate start to rise after the slump. (Carolyn)
could go back to either a stable state or recession (even worse depression)
Sherelyn
exchange rates and value of currency (carly)
increases and decreases in the value of a current value against other currencies (Carolyn)
businesses might target foreign markets more. (Carolyn)
level of unemployment (carly)
interest rates (peter)
Interest rate (monetary policy) is controlled by the government. The increase and decrease in the interest rate will affect the business operation becacuse it can affect the rate of supply for a business.(Peter)
inflation (carly)
Higher inflation can lead to higher costs which affects profit. Government might change policies to curb inflation, which has other implications for businesses.
Cost push and demand pull (Carolyn)
Demand-pull inflation will encourage firms to raise prices to increase profit margins. (Carolyn)
higher wage demands from workers to maintain real incomes during inflation. (Carolyn)
higher costs of materials and components will lead to cost-push inflation. (Carolyn)
level of consumer and business' confidence (Carolyn)
Factors that causes fluctuation (reyna)
Level of customer and business confidence (reyna)
Cost of production (reyna)
exchange rate (reyna)
interest rate (reyna)
inflation rate (reyna)
Technological factor
(Kathleen)
This relates to the amount of technological awareness and possibilities in a market, as well as the level of innovation, research and development, and technological change. (aaron)
examples
changes in technology, more advanced (Kathleen)
engagement in e-commerce (nicholas)
the technologies of lean production that help increase the efficiency, quality and also productivity of the business (justin ws)
IT support for the business (Peter)
Technologies could be used as a good way of communication in the operations function. (Andrew R)
Legal Factors
for the growth and expansion of a business
Example
Laws about setting up a sole trade business or share on a stock exchange
Legal activites when doing international business. This includes import and export of the products to other countries. (Peter)
copyright/intellectual property laws (carly)
Political factors (Andrew Soekamto)
Types of goverment (Peter)
attitude to free markets, imposition of tariffs, business incentives offered and the stability of the government (Peter)
Different tax laws or changes in tax system that have a significant impact on businesses
(Andrew Soekamto)
Restriction of international trade (Andrew Soekamto)
number of imported good that can be sold domestically (Andrew Soekamto)
Import taxes by the government (Andrew Soekamto)
Degree of political stability in a country large impact on business and consumer's confidence (Andrew Soekamto)
It will create a huge impact on a business' confidence level (Carolyn)
Political influences (reyna)
Government stability (reyna)
Form of political structure ex. democracy (reyna)
Governments atitude towards private ownerships (reyna)
trade policies (reyna)
Ethics Factors
refers to the moral value and belief that is applied to the business and how they operate. It is about doing the right or moral things as part of their corporate social responsibilities (CSR). (amanda)
Examples of ethical conduct; equal treatment for workers, fairtrade deals with suppliers, principled accounting procedures (Sherelyn)
the minority protection act, competition law, legal restraints and regulations, and health and safety policies of the employees (Peter)
Ethical code of conduct (Peter)
Corporate Social Responsibility (CSR)(Andrew R)