It seems impossible to survive in a modern business without taking a deep analysis of the position of the company in the internal and external environment, strengths and weaknesses, a number of factors that are said to have direct or indirect influence on business performance. It is impossible to do business with your eyes closed without knowing where you will be in the near future. Of course, it is impossible to imagine all the problems and challenges that business owners, shareholders, and top executives can face. However, it is quite possible to evaluate the position of the company and the present weather and thus make forecasts about the possible problems that the company will face in the future. Solving problems before they occur is a part of strategic planning that is impossible without doing a thorough analysis. There are several types of analysis that are used for different purposes. Some of them evaluate current performance in order to achieve a few immediate goals, while others work for the long term. In this article we will talk about analyzes that cover the most important aspects and environments in which any company operates. The STEEPLED analysis is an extended version of the PEST and PESTEL types of analysis that is quite popular in various industries. Now let’s analyze the STEEPLED analysis and give a brief characteristic of each of its elements.
STEEPLED is short for social, technological, educational, ethnic, political, legal, economic, and demographic factors. As already stated above, this is an extended mode of PEST and PESTEL analysis and therefore covers more factors, thus offering more comprehensive information to senior managers and entrepreneurs. What do these factors mean?
The social factor focuses on following social trends and trends, as well as contact attitudes and patterns. Each company is an inseparable part of society and, therefore, must operate in accordance with social rules and norms. Businesses must take advantage of social trends to make a profit. The technological factor may not require explanation. It is clear that to be successful in any business and industry it is imperative to make effective use of the latest technology and innovation. The recent success of world-famous IT companies is a prime example. The education factor covers all education and training issues. It means that company personnel must constantly develop and improve their knowledge and skills. Top managers and business owners must understand that qualified and loyal staff is the most valuable asset they have. Ethnic factors are extremely important in multinational societies. It also plays an important role in human resource management where discrimination must be avoided. Regarding the political factor, when met, politics plays a great role in social life and influences the economic performance of the country. That is why it is imperative to keep track of political events and developments in order to be able to forecast possible economic changes. The economic factor is probably the most important and substantial, since all companies operate in a given economy. Weak economies do not offer great opportunities for business growth. Finally, the demographic factor must be properly assessed when launching a product or service in a new market. Population density, average age, and social background are very important to businesses looking to sell products and services.