Unit 1.5 - External environment

Question 1

What does STEEPLE stand for?

Answer 1

[S]ocial 
[T]echnological
[E]conomic
[E]nvironmental
[P]olitical
[L]egal
[E]thical

Question 2

What are the [S]ocial opportunities and threats?

Answer 2

• The social and cultural changes occur in the business environment
• Requires market research to see trends and patterns
• Analysing social environment may point out the demands of the target market

Question 3

What are the [T]echnological opportunities and threats?

Answer 3

• Change in production can provide new opportunities to improve profit margin
• Require large initial investments
• Have a huge impact on demand

Question 4

What are the [E]nvironmental opportunities and threats?

Answer 4

• Can be negative impact from pollution or waste

- Can be positive when firm provides benefits such as processing and cleaning waste

Question 5

What are the [E]conomic opportunities and threats?

Answer 5

• Will change numerous time
• Analysing inflation, unemployment, economic growth and international trade can maintain strategic plan
• A recession means don’t change the capital investment plan or new product launch strategies

Question 6

What are the [P]olitcal opportunities and threats?

Answer 6

• Depends on the government policy
• Can be changes is economic, social or legal
• Direct impact to stay updated
• Laws, property rights, patents, political stability

Question 7

What are the [L]egal opportunities and threats?

Answer 7

• Business cannot act as they which
• Legal restraints prevent negative behaviours and increase cost in many industries
• Must comply with health and safety laws

Question 8

What are the [E]thical opportunities and threats?

Answer 8

array of social values that govern business behaviour and provide foundation of whats wrong or right