TOOLKIT: STEEPLE ANALYSIS / IB BUSINESS MANAGEMENT / how to use, pros and cons, IA, example

Summary

This video explains the concept of STEEPLE analysis, a business tool used to assess the impact of external factors on organizations. It covers the seven factors: social, technological, economic, environmental, political, legal, and ethical, and discusses how each can be either an opportunity or a threat. The video emphasizes the importance of distinguishing between external and internal factors and offers guidance on how to apply STEEPLE analysis effectively for internal assessments. It also highlights common mistakes, such as confusing political and legal factors, and provides practical tips for students.

Takeaways

• 😀 Steeple analysis examines the impact of external factors on an organization, focusing on seven key areas: Social, Technological, Economic, Environmental, Political, Legal, and Ethical.
• 😀 The acronym 'STEEPLE' stands for the seven factors, with each factor representing an external influence that could either be an opportunity or a threat to an organization.
• 😀 After completing the steeple analysis, the next step is to analyze the facts and determine whether each factor presents an opportunity or a threat.
• 😀 It is important to separate analysis from discussion and interpretation when performing steeple analysis.
• 😀 All factors in steeple analysis must be external to the organization. Internal factors should not be included in this framework.
• 😀 The economic factor in steeple analysis should focus on external economic conditions, like national economic growth, not internal organizational profits.
• 😀 External factors in steeple analysis impact organizations differently, so it is crucial to narrow down and include only the relevant ones for the specific organization being analyzed.
• 😀 A steeple analysis for two different organizations will vary, even if they share similar external environments, because factors affect organizations differently.
• 😀 Political and legal factors are often confused by students, but it's essential to differentiate them accurately in a steeple analysis.
• 😀 Steeple analysis is a critical tool for business students, particularly for internal assessments, to understand the broader external factors influencing an organization.

Q & A

What is the main purpose of STEEPLE analysis?

The main purpose of STEEPLE analysis is to examine the impact of external environmental factors on an organization.

What does the acronym 'STEEPLE' stand for?

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

How are the factors in a STEEPLE analysis categorized?

Each factor in STEEPLE can be either an opportunity or a threat to the organization.

What is the difference between analysis and interpretation in STEEPLE analysis?

Analysis involves identifying the external factors, while interpretation involves discussing whether those factors present opportunities or threats to the organization.

Can internal factors be included in a STEEPLE analysis?

No, STEEPLE analysis only considers external factors, not internal ones. Internal factors should not be included.

How does STEEPLE analysis differ between organizations?

STEEPLE analysis can differ between organizations because external factors impact each organization differently, and not all external factors are relevant to every organization.

What is a common mistake students make when using STEEPLE analysis?

A common mistake is confusing internal factors with external factors, or incorrectly including internal data in the analysis.

Why are political and legal factors often confused in STEEPLE analysis?

Political and legal factors are often confused because they both relate to laws and regulations, but they address different aspects. Political factors relate to government policies, while legal factors focus on the legal environment and regulations.

How should BM students use the STEEPLE table for internal assessments?

BM students should fill out the STEEPLE table to organize external factors that impact the organization, helping them develop a thorough internal assessment.

Why is it important to narrow down the relevant external factors in a STEEPLE analysis?

It is important to narrow down the relevant factors because not all external factors are significant for every organization. Focusing only on the relevant ones helps in providing a more accurate analysis.