Key Idea: At HL, STEEPLE is used to analyse the wider external environment and then connect those external changes to business impact. Students are expected to show how one factor can affect costs, demand, positioning, growth strategy or stakeholder pressure — not just name the factor.
[Diagram: steeple-factors]
📈 Opportunity logic: A new technology may reduce costs. A social trend may create new demand. Government support may encourage expansion.
⚠️ Threat logic: Inflation may raise costs. Regulation may restrict behaviour. Negative ethical pressure may damage reputation.
🔗 Strong HL analysis: Name the factor. Describe the specific external change. Explain the business impact. Link it to decision-making.
⚠️ Weak exam technique: Listing all seven factors. Giving generic textbook examples. Not applying to the business. Not explaining how performance is affected.
HL answers score better when they explain how the factor changes costs, demand, risk, market attractiveness or brand position. Generic STEEPLE lists stay in the middle bands.
Good HL evaluation often links factors together. For example, a technological shift may also create ethical concerns and legal pressure.
Important: Common HL trap: writing broad macro points such as “economic factors matter” without showing what changes, for whom, and with what business effect.
- Choose the most relevant STEEPLE factor or factors
- Describe the specific issue from the case or context
- Explain the effect on the business
- Classify as opportunity, threat or both
- Link to another business tool if useful
- Judge significance if the question is analytical or evaluative