Business tool for understanding a business’ external environment
Looks at the market potential and situation
Stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical analysis (of the industry)
External environmental factors are analyzed in decision making and strategy development because they can heavily influence the business
Social
Attitude of society towards wide range of issues
Population demographics (more young/old, more women/men, etc.)
Roles and attitudes of people
Cultural and religious beliefs
Security and education
Technological
Use of tools and machines
Information technology
Innovations in technology
Economic
State of the economy
Interest and tax rates
Exchange rates and foreign relations
Inflation rates, unemployment rates, etc.
Environmental
Abundance of natural resources or raw materials
Threats from nature (or natural disasters)
Waste disposal/recycling
Political
Laws (employment, consumer, business) & policies (fiscal and monetary)
Changes brought about by new government
Possible effects of political unrest
Legal
Employment or contract laws
Trade unions
Environmental protection regulations
Ethical
Client confidentiality
Bribery and other forms unethical (and possibly illegal) business transactions
Fair competition
How changes in STEEPLE factors affect a business’s objective and strategy
Changes in trends, social norms, public opinion, views on ethics can affect the company’s products, business activities, and the way they market their products
Changes to legal or political factors may force businesses to change the way they operate to comply with new laws or regulations
Changes to technological factors could result to the company adopting newer technology or machinery to increase efficiency or keep up with industry standards
Changes to environmental factors could force companies to adapt to scarce raw materials, frequent natural disasters, etc.
Changes to economic factors (economic growth, interest rates, etc.) could affect the costs of operations of the business, spending attitude of consumers, etc.
