1. External influences

2. External influences on business Businesses are influenced by a range of factors over which they have little control – these are called external influences

3. STEEPLE analysis STEEPLE analysis is a tool for helping businesses evaluate external influences: S ocio-cultural factors T echnological factors E conomic factors E nvironmental factors P olitical factors L egal factors E thical factors

4. Application of STEEPLE Comprehensive Used when choosing projects to advance Helps judge the degree of fit between…  a project,  the external environment, and  the aims and objectives of the business Complements SWOT analysis

5. Socio-cultural factors Socio-cultural influences include factors relating to both workers and consumers such as: Demographics Changing trends and tastes Changing working patterns Culture (ethnicity, language, class, customs and habits)

6. Technological factors New technologies can prove to be both opportunities or threats to organisations in terms of, for example: Marketing Organisational culture Production methods New product development Communication

7. Economic factors The current or expected economic climate will affect businesses. Factors include: The business cycle Interest rates Exchange rates Inflation Unemployment Globalisation Emerging markets

8. Environmental Factors These include ecological and environmental aspects that affect industries such as tourism and agriculture. Factors include: Climate Climate change Weather Geographic location Environment-friendly products

9. Political factors Political and legal factors can have significant impacts on businesses. Government policies affect business activities through: Taxation Subsidies Regulation Legislation Decisions related to trade and access to markets such as the enlargement of the European Union

10. Legal factors Government legislation affecting businesses includes: Health and safety laws Employment laws Consumer protection Environmental protection Competition laws

11. Ethical factors Moral principles and values guide individuals and firms. Considerations of right versus wrong influence the behaviour of firms and their suppliers. Factors include: Exploitation of child labour Wage equity between men and women Working conditions Fair trade Corporate social responsibility Sustainability