How to Conduct a STEEPLE Analysis

How to Conduct a STEEPLE Analysis

Businesses measure external factors in the business environment using a STEEPLE analysis to forecast economic growth. This tool can forecast consumer purchasing power and assist in strategic planning and decision-making.

 

What Is STEEPLE Analysis?

STEEPLE analysis is a planning tool used by businesses to investigate the ecological state of the market. Through a macro-environmental lens, a STEEPLE analysis considers current government policies, employment laws, political stability, and other factors. A STEEPLE analysis can help businesses better predict their growth rates and gain a competitive advantage in their business planning by helping them understand the external environment.

The STEEPLE analysis framework, which includes legal and ethical factors, overlaps with other research tools such as STEEP and PESTEL. A STEEPLE analysis differs from a SWOT analysis in that it focuses on external factors, whereas a SWOT analysis focuses on a company's internal factors.

 

What Does STEEPLE Stand For?

The acronym STEEPLE stands for social, technological, economic, environmental, political, legal, and ethical threats. A STEEPLE analysis takes time and resources to complete. Nonetheless, businesses use this critical research tool to gain a better understanding of factors beyond the brand's control that may have an impact on business.

 

Why Is STEEPLE Analysis Important?

STEEPLE analysis research results are used by businesses to understand opportunities and threats. Low interest rates, technological advancements, and trade agreements are all possibilities, depending on the company. Threats could include restrictive tax policies, high inflation, and the effects of climate change.

 

How to Do a STEEPLE Analysis

Companies would be wise to invest in a STEEPLE analysis before developing, marketing, and distributing new products. Strategists and stakeholders should collect information on the following factors:

1. Economic: Economic factors such as changing exchange rates, new tariffs, the GDP, and others play an important role in the STEEPLE analysis.

2. Environmental: Environmental or ecological factors such as the availability of natural resources and climate change can have an impact on operations and production.

3. Ethical: Ethical factors in business assess the marketplace's attitude toward corporate social responsibility, moral standards, and accountability.

4. Legal: Investigating legal factors entails delving into court decisions, trade unions, and other regulations that can have an impact on day-to-day and overall operations.

5. Political: Trade restrictions, corporate taxation, and other factors can all have an impact on the bottom line and operational procedures.

6. Social: Investigating population growth rates, social mobility, and market demographics are examples of social factors. Understanding which genders, education levels, age distributions, and other factors are important to target can help marketing campaigns become more precise and effective.

7. Technological: Before rushing into product development, entrepreneurs should conduct a STEEPLE analysis of the market's technological changes to determine how new technological factors can streamline or impact business development.

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