Transcript 1.5 External Environment

1.5 External Environment
STEEPLE Analysis
External Factors that Impact Business
A framework for analyzing the external
environmental factors affecting business
objectives and strategies.
Social
Technological
Economic
Environmental
Political
Legal
Ethics
External Factors that Impact Business
Social Issues
Population demographics
Role of women
Improved Education
Retirement
Divorce/Marital rates
Job security
Immigration
Can you think of anything in this category that has
currently affected business?
External Factors that Impact Business
Impact of Technology
IT's role in:
product development
Communiction (voice and data)
Developing new and better processes
Cost benefits
Competitive advantage
Outsource and offshoring
CAD/CAM
Impact on labor
Can you think of anything in this category that has currently
affected business?
External Factors that Impact Business
Economic Influences
Economic Growth
Rising or falling living standards
Low or high levels of unemployment
Value of imports/exports
Can you think of anything in this category that has
currently affected business?
External Factors that Impact Business
Environmental Influences
Environmental controls on business activities such as
waste disposal, use of sustainable energy, reducing
packaging
Threats from natural events such as drought,
earthquakes, and floods
Natural resources
Infrastructure – such asroad and air transport facilities
Can you think of anything in this category that has
currently affected business?
External Factors that Impact Business
Political Issues
Government stability
Form of political structure (democracy, dictatorship?)
Government's attitude to private ownership
Trade policies and membership of free-trade areas or
customs union
Can you think of anything in this category that has
currently affected business?
External Factors that Impact Business
Legal Issues
Employment laws
Consumer Protection Laws
Business competition Laws
Policy changes (legalizing same-sex marriage,
marijuana, medical insurance)
Can you think of anything in this category that has
currently affected business?
External Factors that Impact Business
Ethics
Child labor
Corrupt business practices
Advertising and promotion techniques
Can you think of anything in this category that has
currently affected business?
Other Terms
Recession
Six months of falling GDP
Cost-push Inflation
rising costs of forces business
to increase prices
Demand-pull Inflation
excess demand allows business
to increase prices
Unemployment
people in an economy that are
willing and able to work, but
cannot find employment
Interest rate
percentage charge by financial
institution when lending money
Inflation
the rate of change in the
average level of prices
Other Terms
Fiscal policy
Changes in government
spending levels and tax rates
Monetary policy
changes in the level of interest
rates which make loan capital
more or less expensive
Exchange rates
increases or decreases in the
value of a currency against
other currencies.
CAD
using computers and IT when
designing products
Computer-aided design
CAM
Computer-aided manufacturing
controlled
speed up the
process and make
the use of computers and
computermachinery to
production
it