STEEPLE analysis

Question 1

]STEEPLE?

Answer 1

S: Social
T: Technological
E: Economic
E: Environmental
P: Political
L: Legal
E: Ethical

Question 2

What is a STEEPLE analysis?

Answer 2

Analysis of external environmental opportunities. ALl businesses are affected by factors from external environment which are beyond their control.

Question 3

Benefits of STEEPLE analysis?

Answer 3

STEEPle is central to business strategy
Helps anticipate opportunities or threats from the external environment
Can be used to access feasibility of business strategies

Question 4

What are social opportunities and threats?

Answer 4

Social factors that can affect business activity include: Social, Cultural, Demographic, Values/attitudes

Question 5

What are technological opportunities and threats?

Answer 5

Technological developments present constant opportunities and threats. These factors affect all aspects of business functions.

Question 6

ADV of technological developments for the internet

Answer 6

Speed of access to information
Reduces language and cultural barriers
Reduced costs
Overcome geographical limitations

Question 7

DIS of technological developments for the internet

Answer 7

Price transparency
Online crime
higher production costs
Reduced productivity

Question 8

What are economic opportunities and threats?

Answer 8

Businesses operate in an economic environment where government aims for the following:
- Controlled inflation
- Reduced unemployment
- Economic growth
- Health balance of trade

Question 9

What is inflation/

Answer 9

Inflation is continual rise in general level of prices in an economy. High inflation not descirabgle as they increase costs for a business.

Question 10

What is unemployment rate?

Answer 10

Measure of proportion of a country’s workforce not in official employment. Not desirable as spending on goods and services will dcilne from insufficient income

Question 11

What is economic growth?

Answer 11

Increase in economic activity which is measured by DGP. Economic growth means economy is more prosperous which leads to greater consumer spending on goods and services.

Question 12

What is balance of trades?

Answer 12

Difference between value of a country’s export earnings and its import expenditure. If in imbalance, more undesirable as it causes exchange rate to fluctuate. Can cause export prices to decline whilst import prices increase.