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.