IB Business Management Prepare a STEEPLE analysis of an organization Explain the consequences of a change in any of the STEEPLE factors for a businesss objectives and strategy Goals for the Chapter ID: 411584
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Slide1
Unit 1.5 – External Environment
IB Business ManagementSlide2
Prepare a STEEPLE analysis of an organization
Explain the consequences of a change in any of the STEEPLE factors for a business’s objectives and strategy
Goals for the ChapterSlide3
All businesses operate in an “environment”
Environment in business refers to conditions “external” to the business.
External environment is complicated
What happens in the external environment is beyond the control of the business
Impact of External EnvironmentSlide4
Older VersionsPEST – Political, economic, social, technological
PESTLE
- Political, economic, social,
technological,
Legal and Ecological
STEEPLE – Social, Technological, Economic, Ecological, Political, Legal and
Ethical
STEEPLE
Current
way to analyzeSlide5Slide6
If something changes, will impact the business
A STEEPLE analysis allows the business to consider influences of each element on the business
Most important influences determined
Then a strategy can be developed to deal with changes.
Impact of Changes in STEEPLE factorsSlide7
Social
Lifestyles; Social mobility; Demographics, Education, Fashions or tastes
Technological
New technology; improved
technology, infrastructure; Research & Development Costs
Economic
Economic or business cycle, rate of economic growth, rate of inflation, rate of unemployment, interest
rates, exchange rates
Ethical
Corruption,
transparency, codes of behavior, fair trade
Political
Political stability, trade policies, regional policies, lobbyingLegalRegulations, Health & Safety legislation, Employment laws, competition lawsEcologicalDepletion of renewable resources, organic farming, global warming, carbon footprints
Common influences in a STEEPLE ANALYSISSlide8
ToK Discussion
To what degree are businesses limited in how much they can “know” about the external environment
Look at STEEPLE analysis for Cat’s Store – p. 63
Student
Workpoint
1.8
Choose a type of business (some located on page 63); prepare a STEEPLE analysis.
Practice Question – page
64 – China!!
1.5 WorkSlide9
Must be flexibleMust be willing to change and adapt
Being an Early Adaptor
Having First Mover Advantage
A business must always be monitoring the external environment in order to change when needed.
How do businesses react?