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What is STEEPLE analysis?

IB Business Management • Unit 6

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🌍 What is STEEPLE analysis?

Big Idea: STEEPLE identifies seven external factors that affect business decisions. These are things a business cannot control but must respond to! 🌪️

STEEPLE stands for: Social, Technological, Economic, Environmental, Political, Legal, Ethical.

📋 The seven STEEPLE factors

  • Social — changing demographics, lifestyles, attitudes, health trends, ageing populations
  • Technological — new tech, automation, AI, e-commerce, social media, digital disruption
  • Economic — interest rates, inflation, recession, exchange rates, unemployment, economic growth
  • Environmental — climate change, pollution, sustainability pressure, natural disasters, resource scarcity
  • Political — government stability, trade policies, taxation, subsidies, international relations
  • Legal — employment law, health and safety, consumer protection, data protection, competition law
  • Ethical — fair trade, CSR expectations, environmental responsibility, working conditions, honesty
Remember STEEPLE: 'Seven Tricky External Elements Pushing Limits Everywhere!' 🧠

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❓ Why does STEEPLE matter?

  • Helps businesses anticipate changes in the external environment
  • Supports strategic planning — prepare for opportunities and threats
  • Identifies risks before they become problems
  • Links directly to the O and T in SWOT analysis
Exam tip: STEEPLE factors feed into the 'Opportunities' and 'Threats' sections of SWOT. Use them together for stronger answers!

💡 STEEPLE examples

  • University: Social (student demographics changing), Legal (new education regulations), Ethical (data privacy for students)
  • Car manufacturer: Technological (electric vehicles), Environmental (emissions laws), Economic (interest rates on car loans)
  • Fast food chain: Social (health-conscious consumers), Legal (food labelling laws), Ethical (sourcing of ingredients)
Don't just list factors — always explain HOW each factor affects the specific business in the case study.

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