STEEPLED

ANALYSIS
Review: Fishbowl
Activity: JUMBLED WORDS
 STEEPLED Analysis

 The result of this scan will aid the entrepreneur in

deciding what product or service to set up and
whether the new venture will succeed or not.
Used for identifying attributes of keystone variables
that make up an organiation’s external environment,
in terms of current and future operations
 Evolution of
STEEPLED Analysis
 STEEPLED Analysis
S Socio-cultural factors
T Technological factors
E Economic factors
E Environmental or ecological factors
P Political factors
L Legal factors
E Ethical factors
D Demographic factors
 Miss & Match:
The groups will match the examples posted
on the blackboard to its corresponding
factor. Examples will be written on the
manila paper
 Socio-Cultural Factors
 Represent a general view
of locality’s traditions,
customs, beliefs, norms
and perceptions
 Affect how a person of the
locality behaves and reacts
to marketing and selling
activities.
Socio-Cultural Factors
 Socio-Cultural Factors
 Health Consciousness
 Education Level
 Attitudes toward imported goods
and services
 Attitudes toward the person’s
lifestyle
 Attitudes toward product quality
and customer services
 Attitudes toward saving and
investing
 Emphasis on safety
 Buying habits
 Religion and beliefs
 Technological Factors
 Composed of innovations of an existing technology
or an invention of a new one mostly on applied
science and engineering research areas.
 Entrepreneurs should always be up-to-date with
the technological changes, as these are catalyst in
improving a product or service or replacing them
entirely.
Technological Factors
Technological Factors
 Basic infrastructure level
 Rate of technological change
 Spending in research and development
 Technology incentives
 Legislation regarding technology
 Communication infrastructure
 Access to newest technology
 Internet infrastructure and penetration
 Economic Factors
 Play vital role in the scanning of marketing
environment because economic factors directly
affect any business venture.
 Include income, expenses and resources that can
influence the cost of doing business and generating
income.
Economic Factors
Economic Factors

 Growth rates  Trade flows and patterns

 Inflation rates  Level of consumers;
 Interest rate disposable income
 Exchange rate  Monetary policies
 Unemployment trends  Fiscal policies
 Labor Costs  Price fluctuations
 Stages of business cycle  Stock market trends
 Environmental or
Ecological Factors
Given much importance in conducting a business
especially when the world has already suffered
severely from human-induced calamities.
Help the entrepreneur determine if the business he or
she is entering into will comply with the environmental
standards or will just be a hazard to people, animals
and nature
Moreover, the entrepreneur will know if the business
venture will be suited with the weather conditions in
his or her locality.
 Environmental or
Ecological Factors
 Environmental or
Ecological Factors
 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution
 Recycling
 Waste management
 Attitudes toward “green” or ecological
products
 Endangered species
 Attitudes toward and support for
renewable energy
 Political Factors
 Mostly induced by government policies and
administrations, which can have a strong effect in
the entrepreneur’s business
Political Factors
 Political Factors
 Government satbility and likely changes
 Bureaucracy
 Corruption level
 Tax policy (rates and incentives)
 Freedom of press
 Rule of law
 Government effectiveness
 Political rights
 Legal Factors
 Related to political factors, these are government
laws and regulations that can restrict or allow
business activities.
Legal Factors
 Legal Factors
 Anti-trust law
 Discrimination law
 Copyright, patents/intellectual property rights
 Consumer protection
 Employment law
 Health and safety law
 Data protection law
 Ethical Factors
Serve as an entrepreneur’s guide on how to be
ethical in running the business
 Ethical Factors
 Ethical advertising and sales practices
 Accepted accounting, management and marketing
standards
 Attitudes toward counterfeiting and breaking patents
 Attitude toward development and well-being of
employees
Ethical Factors
 Demographic Factors
Characteristics of the people in the target market
Demographic Factors
 Demographic Factors
 Population growth rate
 Age distribution and life expectancy rates
 Gender distribution
 Social classes
 Family size and structure
 Minorities
 Application
In application of STEEPLED Analysis, the
implication of each factor would be ascertained,
then rating system deployed to mark impact on the
firm.

Impact by type and impact over time would be

determined.
 Generalization
STEEPLED analysis is one variant of the very
popular and simple strategic management method
for analysis of external environment of the
organization.

The result of the STEEPLED scan will aid the

entrepreneur in deciding what product or service to
set up and whether this new venture will succeed or
not. The focus of this scan is only on
macroenvironment.
Evaluation
 Assignment
Conduct a STEEPLED analysis for Mc Donald’s
Philippines. To be written in short bond paper.