How Steeple Analysis Evaluates External Business Environment
STEEPLE analysis considers various external factors that can influence business performance of a company. This tool is frequently used to recognize those batik keris online that can influence business or firm. There are seven areas that STEEPLE evaluation takes into consideration.
Thus, STEEPLE analysis handles political, economic, interpersonal, environmental, legal, ethical and technological factors that have both positive and negative impact on the business or entire industry.
Why is usage of STEEPLE evaluation businesses? That is a very good way of analyze and external environment where the company is operating. Moreover, STEEPLE analysis can also offer suggestions on how exactly to respond to challenges and solve problems, if any.
One of the most common mistakes used of STEEPLE analysis is split consideration of various factors. They are all interrelated and thus need to be analyzed in complex. Besides, you need to come up with suggestions and answer fully the question What does it imply for my firm? Response and counter actions are required.
Such elements can generally present strengths and weaknesses, threats and opportunities in various external environments every company is bound to operate in. This article will offer a short summary of the seven external factors that can influence business performance along with focus on benefits and drawbacks of STEEPLE analysis.
Social factor frequently includes , cultural and labor mobility, lifestyle changes, balance of work and lifestyle, education and fashion, health and welfare, poverty levels, work security and living conditions, along with income distribution. Put simply, this is information linked to social trends.
Technological factor studies new developments and discoveries, velocity of technology transfer, usage of energy, the impact of It all Technologies on business, Internet progress, spread of mobile technologies, typical devote to IT etc. Every company should match technological progress.
Economy is all important, especially for companies operating in the international market. This factor studies monetary policy, government spending, taxation issues, inflation, exchange rate, unemployment policy, general economic situation, customer expectations and purchasing power etc.
Environmental issues are very hot these days, as people found understand they have to take proper care of nature. This element addresses global warming, carbon emissions, climate change, environmental regulations and legislation, green agenda etc.
Politics is inseparable part of social processes. This factor studies political situation, outcomes of elections and possible effects for the business enterprise, governmental decisions on regulation of business relations etc. Frequently political decisions are created to normalize economic situation in the country.
Every business is operating in a certain legislative system, and thus should adhere to the applicable laws and regulations. Legal departments of companies must pay a special attention to corporate governance, and international trade regulations, legislation on competition and monopoly etc.
Ethical constituent is essential as well. Customer confidentiality, business ethics and reputation have become important factors to consider.
Among key advantages of STEEPLE analysis are concentrate on external factors that influence company performance and ability to respond to certain problems. Some business analysts claim that STEEPLE analysis only underlines something that is already known, and this viewpoint in addition has its supporters.