The STEEPLE analysis is a variation of the STEEP analysis. Where the step analysis comprises socio-cultural, technological, economic, environmental/ecological, and political factors as the base of the analysis. The STEEPLE analysis adds other two factors Legal and Ethical.
The STEEPLE analysis is a tool that helps an organization evaluate its external environment with respect to eight key factors.
The STEEPLE analysis is one of several variants of the PEST analysis, a popular strategic management tool developed in the 1960s by American scholar Francis Aguilar.
Similar to unrelated frameworks such as the SWOT analysis, the STEEPLE analysis evaluates the various factors that have the potential to impact business decisions.
Unlike the SWOT analysis, however, there is scope in the STEEPLE approach to examine the various relationships between each of the factors.
The STEEPLE analysis is also more comprehensive than its counterparts, assessing seven factors that give the analysis its name: socio-cultural, technological, economic, environmental, political, legal, and ethical.
In the next section, we’ll discuss these in more detail by way of an example.
STEEPLE analysis case study – Walmart
Below is a look at a sample STEEPLE analysis for Walmart, one of the world’s largest retailers.
With over $555 billion in net sales in 2021 the company operates a differentiated Omni business model with three primary units comprising Walmart U.S, Walmart International, and Sam’s Club (approximately 12% of its net sales) a membership-only warehouse clubs. Together with Walmart+, a subscription service including unlimited free shipping, unlimited delivery from its stores, and discounts launched in 2021.
Social
Social factors encompass those related to consumer culture, lifestyle, and behavior, to name a few drivers.
When Walmart expanded into Germany and spent over €2 billion in the process, the company failed because it did not understand the German culture.
It trained its store employees to smile and be conversive with customers, which is not a common practice in the country.
Fortunately, Walmart has been more successful in capitalizing on other social factors such as urban migration and a preference for healthier food items.
Technological
Walmart is not immune to the various technical factors that impact small and large organizations alike.
For a company of Walmart’s size and reach, automation via technology is supremely important.
The company has leveraged machine learning and cloud-powered checkout and pickup technology to offer a more seamless experience to customers.
Walmart has also partnered with Adobe to develop an eCommerce platform where third-party merchants can sell their goods and utilize the company’s fulfillment network.
Walmart has to contend with various economic factors such as unemployment, international trade sanctions, inflation, and recession.
However, it is perhaps more shielded from negative economic events because of its size, industry, and ability to sell products and services at a lower price than its competitors.
Nevertheless, Walmart has been forced to increase its minimum wage in the United States amidst pressure from competitors, the government, and a challenging labor environment.
Walmart has had a somewhat chequered history in terms of environmental factors.
It has been accused of illegally dumping hazardous materials such as batteries and aerosol cans into California landfill facilities.
The company was also forced to pay an $82 million fine in 2013 for disposing of bleach and fertilizer into a local sewer system.
Despite these problems, Walmart created the Project Gigaton project in 2017 to engage in climate action with suppliers, NGOs, and other key stakeholders.
Political
Walmart benefits from the relative political stability of its biggest markets in the United States and Canada, but as we learned earlier, the former is also subject to government-mandated increases to the minimum wage.
The company’s foray into the Chinese market has also seen it encounter various political stressors.
The Chinese government has attacked Walmart stores on several fronts in response to its decision not to sell in the politically sensitive Xinjian region.
In retaliation, several Walmart stores have been cited for a range of issues including a lack of food safety.
Legal
In addition to the legal ramifications of illegal dumping and a rising minimum wage, Walmart also has to deal with tax law reform, equal opportunity legislation, and the anti-competitive consumer watchdog.
Walmart has been sued in the past for employment discrimination on more than one occasion.
One case involved an employee who was fired with Down syndrome, while other more recent cases have been based on racial discrimination.
Ethical
The ethics and compliance section on Walmart’s website paints a clear picture of where the company stands on ethical factors.
Its ethics policy, which is based on trust and integrity, relies on proper ethics response training for employees and zero tolerance toward harassment and discrimination.
Among other initiatives, Walmart also hopes to promote health and safety, compete in the marketplace fairly, combat bribery and corruption, and use data and technology sensitively.
STEEPLE analysis case study – Costco
In this STEEPLE analysis case study, let’s analyze the discount retail chain Costco.
Costco makes most of its money from selling merchandise products at low cost, yet in bulk, through its warehouses, which act as stores, and a small, yet much higher margin chunk of revenue comes from its memberships. For instance, in 2023, Costco made over $242 billion in revenue, of which $4.58 billion came from membership revenue.
Social
The consumers of today want to do business with responsible companies that prioritize various social, environmental, and ethical initiatives. In addition to the way it treats employees (explained below), the company has committed to purchasing 80% green energy by 2030.
Costco is also an extensive donator to charitable causes with a focus on programs that support children, education, health, and human services in the communities where it operates. The company also donates leftover food to the national non-profit Feeding America.
Technological
A traditional brick-and-mortar retailer, Costco has had to build out its eCommerce capabilities to cater to the needs of modern consumers.
The company now offers an app that enables consumers to make mobile payments, view receipts, access current promotions, manage prescription medication, create shopping lists, and view the current price of gas at their local store.
Consumers can also now shop on Costco.com where same-day delivery is offered in some areas.
Economic
As a low-cost retailer, the current economic environment of high inflation and high-interest rates is likely to benefit Costco as consumers look to save money. However, the company may be negatively impacted by the rising cost of labor – particularly since it offers a base rate of $17 per hour or almost $10 above the federally mandated minimum wage.
Environmental
In 2020, Costco faced a lawsuit over its handling of hazardous waste in California. The lawsuit alleged that Costco was improperly disposing of hazardous waste such as batteries and electronics, and was compliant with state regulations.
Nevertheless, the company currently follows a Climate Action Plan which provides a roadmap to reducing carbon dioxide-equivalent (CO2e) emissions. The plan addresses various United Nations Sustainable Development Goals (SDGs) and encompasses Costco’s worldwide operations.
Political
Costco has been an ardent supporter of changes to corporate tax policy in the United States. In 2017, for example, it advocated for a lower corporate tax rate on the basis that savings would fund new stores and infrastructure.
Like multinational competitor Walmart, it also expressed concerns about Trump-mandated tariffs on Chinese products in 2018.
Costco’s code of ethics is comprised of four key points:
Obey the law.
Take care of our customers.
Take care of our employees, and
Respect our suppliers.
Over the years, Costco has been praised as a “testimony to ethical capitalism” thanks in no small part to company practices, culture, and treatment of employees and key stakeholders. The company’s ethical standpoint is based on the belief that well-treated employees are more productive and thus contribute to the success of the organization.
Patagonia STEEPLE analysis
In this additional STEEPLE analysis example, we will analyze the sustainable outdoor and clothing company Patagonia.
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.
Socio-cultural
One of the most obvious social factors for Patagonia is the increasing consumer interest in sustainable and ethical practices in the fashion industry.
The company’s commitment to environmental sustainability and ethical labor practices has helped it build a strong reputation and brand loyalty among conscious consumers.
Patagonia has walked the walk in this regard, donating 1% of its sales to international and grassroots environmental causes since 1985.
The company also conducts due-diligence activities to promote and sustain safe working conditions and fair labor practices across its supplier network.
Technological
Patagonia has used technology in various ways to reduce waste, improve the online customer experience, and develop new materials and manufacturing methods.
Much of the innovation in the outdoor apparel industry is focused on developing items that are breathable, warm, waterproof, durable, and fast-drying. These are features modern consumers expect, and an area in which Patagonia has been a leader for decades.
There are also more than 20 scientists in the facility who rely on the science-based approach to develop technology that reduces the company’s ecological footprint.
Economic
The increased cost of raw materials and production may impact the company’s profitability, but Patagonia is perhaps more shielded than some of its competitors.
For one, some 69% of the company’s raw materials are made with recycled inputs. In the future, Patagonia will use 100% renewable and recycled materials from pre and post-consumer waste.
Patagonia’s commitment to sustainability and ethical practices has also led to growing popularity among consumers, and this has translated to increased sales and revenue.
In fact, the company has proven that a sustainability-centric business model can still be profitable.
Environmental
As noted, Patagonia has built its brand around environmental responsibility and sustainability. The company was one of the earliest to promote environmental values and continues this tradition today.
Its Don’t Buy This Jacket re-usecampaign was proof the company considered the environment to be more important than profit.
In late 2022, Patagonia founder Yvon Chouinard transferred ownership of Patagonia to a trust and a non-profit organization.
In the process, the company would remain independent indefinitely and all profits would be directed to protect undeveloped land and tackle climate change-related problems.
Patagonia’s stance on various environmental and social issues means it often finds itself in the political sphere. In December 2017, the company condemned then-president Trump after he removed federal protection from broad swathes of public land in Utah.
After an almost 12-month war with Trump, Patagonia lodged a lawsuit in Washington. The company also ran the first television commercial in its 45-year history with Chouinard condemning anyone that would want to exploit Utah’s natural resources.
Legal
Patagonia does not operate its own factories and thus has no control over labor laws in other countries.
However, through its Fair Trade program, the company supports 75,000 factory workers from 10 nations as part of efforts to ensure that all who are associated with Patagonia can earn a living wage.
Ethical
Patagonia is a highly ethical business that strives to do right for its customers, stakeholders, suppliers, employees, and the Earth.
The brand lives up to its own robust ethical standards which are promoted and upheld across every facet of the business.
Patagonia is one organization that could never be accused of greenwashing.
STEEPLE analysis vs. PESTLE analysis
The PESTLE analysis is a strategic framework that is used to evaluate the environment in which an organization operates. Six separate factors are analyzed.
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.
The STEEPLE analysis also provides an overview of the macro-environmental factors that impact an organization.
It is an evolution or iteration of the PESTLE analysis because it analyzes the same six factors plus an additional seventh factor.
The PESTLE analysis is a framework businesses use to evaluate their operating environment.
It is a common component of enterprise risk management planning and is also used in product development and financial analysis.
The PESTLE analysis was developed in the late 1960s by American scholar and strategic planning expert Francis Aguilar.
At the time, it was known as the PEST analysis because it only considered political, economic, sociological, and technological factors.
The two additional factors of legal and environmental were added later, with all six factors able to be incorporated into other frameworks such as SWOT, the Ansoff matrix, and Porter’s 5 Forces.
These factors and some common drivers of each include:
Political – taxation, free trade, anti-trust or anti-competition issues.
Social – consumer trends and beliefs, working attitudes and conditions, and other demographic considerations.
Technological – infrastructure such as IoT, cybersecurity, automation, artificial intelligence, and research and development.
Environmental – carbon dioxide emissions, impacts of climate change, natural resources stewardship, impact of extreme weather events.
Legal – intellectual property and patents, employment law, consumer law, permits and licensing, and industry regulation.
To recap:
The PESTLE analysis is a strategic framework that is used to evaluate the environment in which an organization operates. The STEEPLE analysis also provides an overview of the macro-environmental factors that impact an organization but with an additional seventh factor.
The PESTLE analysis was developed in the late 1960s by American scholar and strategic planning expert Francis Aguilar. The original PEST analysis had only four factors, with two more added later.
The STEEPLE analysis is a further iteration of Aguilar’s work, with a crucial seventh “Ethical” factor added to encompass the multi-faceted area of business ethics.
Understanding the STEEP Analysis
The STEEP analysis is a tool used to map the external factors that impact an organization. STEEP stands for the five key areas on which the analysis focuses: socio-cultural, technological, economic, environmental/ecological, and political. Usually, the STEEP analysis is complementary or alternative to other methods such as SWOT or PESTEL analyses.
In addition, to the five factors comprised in the STEEP Analysis, the STEEPLE analysis comprises:
L standing for Legal: What government laws will impact the way of doing business?
E standing for Ethical: Based on the current context and landscape what is perceived contextually to be good and bad as a business?
STEEPLE vs. SWOT vs. PESTEL
The STEEPLE analysis is a more comprehensive way to look at the current business context compared to other frameworks such as SWOT and PESTEL.
Whereas the STEEPLE analysis focuses on the external environment, the SWOT analysis is both externally looking (threats and opportunities) and internally looking (strengths and weaknesses).
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.
Thus, from that standpoint, the SWOT analysis helps look at the external landscape and internal landscape through four elements:
On the other hand, similar to the STEEPLE analysis, the PESTEL analysis looks at the external environment and business context.
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.
The PESTEL analysis looks at the external environment via a few core elements:
The STEEPLE analysis is a tool that helps an organization evaluate its external environment with respect to seven key factors.
Unlike the SWOT analysis, there is scope in the STEEPLE approach to examine the various relationships between each of the factors.
Walmart’s STEEPLE analysis reveals the nature of some of these dependencies. Many of its environmental factors are tied to legal and ethical factors, for example.
Key Highlights
STEEPLE Analysis Overview:
STEEPLE stands for Socio-Cultural, Technological, Economic, Environmental/Ecological, Political, Legal, and Ethical factors.
It’s a strategic tool used to assess an organization’s external environment and identify key influences.
Comprehensive Examination:
STEEPLE is more comprehensive than some other analysis frameworks like SWOT and PESTEL.
It considers a wider range of factors, including legal and ethical dimensions.
Relationships Between Factors:
Unlike SWOT, STEEPLE allows for examining relationships between factors.
This helps in understanding how different factors interact and influence each other.
Real-World Application:
Case studies like Walmart, Costco, and Patagonia demonstrate how STEEPLE analysis can be applied to real organizations.
It provides insights into how external factors impact business decisions.
Socio-Cultural Factors:
Examines consumer culture, lifestyle, behavior, and societal drivers.
Considers trends, preferences, and attitudes that influence business strategies.
Technological Factors:
Focuses on technological advancements and their impact on operations.
Considers automation, innovation, digital platforms, and integration of technology.
Economic Factors:
Addresses economic conditions, inflation, trade, unemployment, and recession.
Considers the financial landscape and its effects on business operations.
Environmental/Ecological Factors:
Examines environmental impact, sustainability efforts, and resource management.
Considers initiatives to address climate change and ethical responsibility.
Political Factors:
Focuses on political stability, government policies, and regulations.
Considers influences on business operations and market entry.
Legal Factors:
Addresses legal implications, regulations, and compliance.
Considers legal issues, employment laws, and industry regulations.
Ethical Factors:
Examines ethical considerations, trust, integrity, and corporate social responsibility.
Considers business practices that align with ethical values.
Comparisons with Other Frameworks:
Contrasts with SWOT and PESTEL analyses.
Provides a more in-depth external perspective and relationships between factors.
Strategic Decision-Making:
STEEPLE analysis informs strategic decision-making by understanding external influences.
Helps organizations adapt to changing environments and make informed choices.
STEEPLE Analysis
Description
Analysis
Implications
Applications
Examples
1. Overview
STEEPLE Analysis is a strategic planning framework used to examine the external macro-environmental factors that impact an organization or project.
– Evaluate the key factors within the categories of Social, Technological, Economic, Environmental, Political, Legal, and Ethical. – Analyze how each factor may affect the organization or project.
– Provides a comprehensive view of external forces shaping strategies. – Helps in proactive planning for potential changes in the environment.
– Strategic planning for organizations navigating a changing market. – Assessing the impact of external factors on a project’s feasibility. – Environmental scanning to identify market trends and risks.
Analyzing how changing environmental regulations (Environmental) may affect a manufacturing company’s operations. Assessing the potential impact of new data privacy laws (Legal) on a tech startup.
2. Social Factors (S)
Social factors include societal and demographic influences on an organization, such as cultural trends, consumer behaviors, and social attitudes.
– Identify and analyze social trends, consumer preferences, demographics, and cultural shifts that affect the organization or project. – Consider potential societal changes.
– Helps organizations adapt to changing customer behaviors and preferences. – Influences marketing strategies and product development.
– Assessing consumer preferences for a product launch. – Identifying cultural shifts that may impact marketing campaigns. – Understanding demographics to target specific market segments.
Recognizing a growing preference for eco-friendly products (S) and its impact on consumer choices. Assessing the changing work-from-home trend (S) and its implications for office space demand.
3. Technological Factors (T)
Technological factors involve advancements and innovations that can influence an organization’s operations, products, or services.
– Identify and assess technological innovations, trends, and disruptions that may impact the organization or project. – Consider the rate of technological change.
– Drives innovation and competitiveness by adopting emerging technologies. – Helps in technology planning and adaptation to industry changes.
– Evaluating the potential of artificial intelligence in streamlining operations. – Assessing cybersecurity threats and measures in a technology project. – Identifying opportunities in the Internet of Things (IoT) for a smart city project.
Recognizing the potential of 5G technology (T) for faster data transmission and its impact on mobile services. Assessing the implications of blockchain technology (T) for secure data management.
4. Economic Factors (E)
Economic factors encompass economic conditions, trends, and indicators that can impact an organization’s financial performance and decision-making.
– Evaluate economic indicators, inflation rates, interest rates, currency exchange rates, and market conditions affecting the organization or project. – Assess economic trends.
– Guides financial planning and budgeting based on economic forecasts. – Helps in risk assessment related to economic fluctuations.
– Analyzing currency exchange rate fluctuations for international business expansion. – Assessing the impact of economic recessions on consumer spending patterns. – Evaluating inflation rates for pricing strategies in a retail business.
Recognizing the potential impact of a recession (E) on consumer spending habits and adjusting pricing strategies accordingly. Assessing currency exchange rate fluctuations (E) and their implications for an international supply chain.
5. Environmental Factors (E)
Environmental factors pertain to ecological and sustainability considerations, including climate change, environmental regulations, and ecological trends.
– Identify and analyze environmental regulations, climate change impacts, sustainability trends, and ecological factors relevant to the organization or project.
– Encourages sustainability initiatives and compliance with environmental regulations. – Prepares for the potential effects of climate change on operations.
– Assessing the environmental impact of a manufacturing process and compliance with regulations. – Identifying opportunities for sustainability initiatives in product development. – Evaluating the risk of natural disasters on a project’s location.
Recognizing stricter environmental regulations (E) and the need for sustainable practices in manufacturing. Assessing the impact of climate change (E) on supply chain disruptions.
6. Political Factors (P)
Political factors encompass government policies, regulations, and political stability that can influence business operations, trade, and market access.
– Identify and analyze political factors such as government policies, regulations, trade agreements, and political stability that affect the organization or project.
– Guides compliance with government regulations and trade policies. – Assesses political risks and their impact on market access and stability.
– Assessing the impact of trade tariffs (P) on international supply chains. – Evaluating regulatory changes (P) affecting the pharmaceutical industry. – Understanding political stability (P) for market entry strategies.
Recognizing changes in trade policies (P) and their impact on import/export strategies. Assessing the influence of new government regulations (P) on the energy sector.
7. Legal Factors (L)
Legal factors involve laws, regulations, and legal issues that can affect business operations, contractual agreements, and compliance requirements.
– Identify and assess legal factors, including laws, regulations, industry standards, contractual obligations, and potential legal risks. – Consider legal compliance.
– Ensures compliance with laws and regulations governing the industry. – Helps in managing legal risks and contractual obligations effectively.
– Assessing data protection laws (L) for compliance in a tech startup. – Identifying intellectual property rights (L) for product development and protection. – Evaluating labor laws (L) for HR policies and practices.
Recognizing new data privacy regulations (L) and their impact on data handling practices. Assessing potential patent infringement risks (L) in a new product launch.
8. Ethical Factors (E)
Ethical factors relate to moral values, ethical principles, and social responsibility considerations that can affect an organization’s reputation and practices.
– Identify and assess ethical factors, including corporate social responsibility (CSR), ethical standards, and ethical challenges relevant to the organization or project.
– Guides ethical decision-making and corporate responsibility initiatives. – Ensures alignment with ethical principles and values.
– Assessing ethical practices in the supply chain (E) for sustainable sourcing. – Identifying CSR opportunities (E) that align with the organization’s values. – Evaluating ethical challenges (E) related to data privacy and consumer trust.
Recognizing the importance of ethical sourcing (E) and its impact on brand reputation. Assessing the potential ethical challenges (E) in handling sensitive customer data.
Companion Frameworks
Definition
Focus
Application
STEEPLE Analysis
STEEPLE Analysis is a strategic planning tool used to assess the external factors that may impact an organization or project. STEEPLE stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors. It expands upon the traditional PESTLE analysis by incorporating additional dimensions such as ethics and demographics to provide a comprehensive understanding of the external environment.
Focuses on analyzing a broad range of external factors and trends, including social, technological, economic, environmental, political, legal, and ethical aspects, to identify opportunities and threats and inform strategic decision-making.
PESTLE analysis is a strategic tool used to analyze and understand the external macro-environmental factors that impact an organization or market. PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental factors, providing insights into the broader context of business operations.
Focuses on identifying and evaluating external factors and trends in the business environment to anticipate opportunities, threats, and regulatory challenges, guiding strategic planning and decision-making.
Porter’s Five Forces is a framework developed by Michael Porter to analyze the competitive forces within an industry. Porter identified five forces: Threat of New Entrants, Bargaining Power of Buyers, Bargaining Power of Suppliers, Threat of Substitute Products, and Intensity of Competitive Rivalry.
Focuses on assessing the competitive dynamics and attractiveness of an industry by analyzing the forces that shape competition, helping organizations understand their competitive position and formulate strategies for sustainable competitive advantage.
Industry Analysis, Competitive Strategy, Market Positioning
SWOT Analysis
SWOT analysis is a strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to a business venture or project. SWOT analysis helps organizations assess internal capabilities and external factors to formulate strategies and make informed decisions.
Focuses on analyzing internal strengths and weaknesses and external opportunities and threats to develop strategies that leverage strengths, mitigate weaknesses, capitalize on opportunities, and address threats effectively.
Strategic Planning, Business Analysis, Decision-making
McKinsey 7S Framework
The McKinsey 7S Framework is a management model developed by McKinsey & Company that identifies seven internal elements critical to organizational effectiveness: Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff. The 7S Framework helps organizations diagnose alignment issues and drive change.
Focuses on analyzing the interrelationships between strategy, structure, systems, shared values, skills, style, and staff within an organization to diagnose alignment issues and drive organizational change and performance improvement.
Value Chain Analysis is a strategic analysis framework that examines the activities and processes within a company’s value chain to identify sources of competitive advantage and opportunities for cost reduction or differentiation. Value chain analysis categorizes activities as primary or support functions.
Focuses on understanding the sequence of activities and processes involved in delivering value to customers, identifying areas for optimization, cost reduction, or value enhancement to strengthen the company’s competitive position.
Strategic Planning, Process Optimization, Cost Management
Balanced Scorecard (BSC)
The Balanced Scorecard is a strategic performance management framework developed by Robert Kaplan and David Norton. The Balanced Scorecard translates an organization’s strategy into a set of balanced performance measures across four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.
Focuses on aligning strategic objectives and performance measures across multiple dimensions to monitor and manage organizational performance effectively.
Blue Ocean Strategy is a strategic planning approach that emphasizes creating uncontested market space by innovating and offering unique value propositions. Blue ocean strategy focuses on simultaneously reducing costs and increasing value for customers to create new demand and unlock new market opportunities.
Focuses on identifying and tapping into new market spaces with limited competition, allowing companies to differentiate themselves and capture uncontested market share, driving sustainable growth and profitability.
Scenario Analysis is a strategic planning technique used to explore alternative future scenarios and their potential implications on business outcomes. Scenario analysis involves developing and analyzing multiple plausible scenarios based on different assumptions or driving forces, helping organizations anticipate and prepare for a range of possible futures.
Focuses on understanding and planning for uncertainty by exploring different future scenarios, evaluating their potential impacts, and developing strategies to adapt and respond effectively to changing conditions or events.
Strategic Planning, Risk Management, Business Continuity Planning
What are the 7 STEEPLE factors?
The seven elements of the STEEPLE analysis comprise:
A failure mode and effects analysis (FMEA) is a structured approach to identifying design failures in a product or process. Developed in the 1950s, the failure mode and effects analysis is one the earliest methodologies of its kind. It enables organizations to anticipate a range of potential failures during the design stage.
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.
Business valuations involve a formal analysis of the key operational aspects of a business. A business valuation is an analysis used to determine the economic value of a business or company unit. It’s important to note that valuations are one part science and one part art. Analysts use professional judgment to consider the financial performance of a business with respect to local, national, or global economic conditions. They will also consider the total value of assets and liabilities, in addition to patented or proprietary technology.
A paired comparison analysis is used to rate or rank options where evaluation criteria are subjective by nature. The analysis is particularly useful when there is a lack of clear priorities or objective data to base decisions on. A paired comparison analysis evaluates a range of options by comparing them against each other.
The Monte Carlo analysis is a quantitative risk management technique. The Monte Carlo analysis was developed by nuclear scientist Stanislaw Ulam in 1940 as work progressed on the atom bomb. The analysis first considers the impact of certain risks on project management such as time or budgetary constraints. Then, a computerized mathematical output gives businesses a range of possible outcomes and their probability of occurrence.
A cost-benefit analysis is a process a business can use to analyze decisions according to the costs associated with making that decision. For a cost analysis to be effective it’s important to articulate the project in the simplest terms possible, identify the costs, determine the benefits of project implementation, assess the alternatives.
The CATWOE analysis is a problem-solving strategy that asks businesses to look at an issue from six different perspectives. The CATWOE analysis is an in-depth and holistic approach to problem-solving because it enables businesses to consider all perspectives. This often forces management out of habitual ways of thinking that would otherwise hinder growth and profitability. Most importantly, the CATWOE analysis allows businesses to combine multiple perspectives into a single, unifying solution.
It’s possible to identify the key players that overlap with a company’s business model with a competitor analysis. This overlapping can be analyzed in terms of key customers, technologies, distribution, and financial models. When all those elements are analyzed, it is possible to map all the facets of competition for a tech business model to understand better where a business stands in the marketplace and its possible future developments.
The Pareto Analysis is a statistical analysis used in business decision making that identifies a certain number of input factors that have the greatest impact on income. It is based on the similarly named Pareto Principle, which states that 80% of the effect of something can be attributed to just 20% of the drivers.
A comparable company analysis is a process that enables the identification of similar organizations to be used as a comparison to understand the business and financial performance of the target company. To find comparables you can look at two key profiles: the business and financial profile. From the comparable company analysis it is possible to understand the competitive landscape of the target organization.
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.
Business analysis is a research discipline that helps driving change within an organization by identifying the key elements and processes that drive value. Business analysis can also be used in Identifying new business opportunities or how to take advantage of existing business opportunities to grow your business in the marketplace.
In corporate finance, the financial structure is how corporations finance their assets (usually either through debt or equity). For the sake of reverse engineering businesses, we want to look at three critical elements to determine the model used to sustain its assets: cost structure, profitability, and cash flow generation.
Financial modeling involves the analysis of accounting, finance, and business data to predict future financial performance. Financial modeling is often used in valuation, which consists of estimating the value in dollar terms of a company based on several parameters. Some of the most common financial models comprise discounted cash flows, the M&A model, and the CCA model.
Value investing is an investment philosophy that looks at companies’ fundamentals, to discover those companies whose intrinsic value is higher than what the market is currently pricing, in short value investing tries to evaluate a business by starting by its fundamentals.
The Buffet Indicator is a measure of the total value of all publicly-traded stocks in a country divided by that country’s GDP. It’s a measure and ratio to evaluate whether a market is undervalued or overvalued. It’s one of Warren Buffet’s favorite measures as a warning that financial markets might be overvalued and riskier.
Financial accounting is a subdiscipline within accounting that helps organizations provide reporting related to three critical areas of a business: its assets and liabilities (balance sheet), its revenues and expenses (income statement), and its cash flows (cash flow statement). Together those areas can be used for internal and external purposes.
Post-mortem analyses review projects from start to finish to determine process improvements and ensure that inefficiencies are not repeated in the future. In the Project Management Book of Knowledge (PMBOK), this process is referred to as “lessons learned”.
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle.
In essence, a root cause analysis involves the identification of problem root causes to devise the most effective solutions. Note that the root cause is an underlying factor that sets the problem in motion or causes a particular situation such as non-conformance.
A break-even analysis is commonly used to determine the point at which a new product or service will become profitable. The analysis is a financial calculation that tells the business how many products it must sell to cover its production costs. A break-even analysis is a small business accounting process that tells the business what it needs to do to break even or recoup its initial investment.
Stanford University Professor Ronald A. Howard first defined decision analysis as a profession in 1964. Over the ensuing decades, Howard has supervised many doctoral theses on the subject across topics including nuclear waste disposal, investment planning, hurricane seeding, and research strategy. Decision analysis (DA) is a systematic, visual, and quantitative decision-making approach where all aspects of a decision are evaluated before making an optimal choice.
A DESTEP analysis is a framework used by businesses to understand their external environment and the issues which may impact them. The DESTEP analysis is an extension of the popular PEST analysis created by Harvard Business School professor Francis J. Aguilar. The DESTEP analysis groups external factors into six categories: demographic, economic, socio-cultural, technological, ecological, and political.
The STEEP analysis is a tool used to map the external factors that impact an organization. STEEP stands for the five key areas on which the analysis focuses: socio-cultural, technological, economic, environmental/ecological, and political. Usually, the STEEP analysis is complementary or alternative to other methods such as SWOT or PESTEL analyses.
The STEEPLE analysis is a variation of the STEEP analysis. Where the step analysis comprises socio-cultural, technological, economic, environmental/ecological, and political factors as the base of the analysis. The STEEPLE analysis adds other two factors such as Legal and Ethical.
Activity-based management (ABM) is a framework for determining the profitability of every aspect of a business. The end goal is to maximize organizational strengths while minimizing or eliminating weaknesses. Activity-based management can be described in the following steps: identification and analysis, evaluation and identification of areas of improvement.
PMESII-PT is a tool that helps users organize large amounts of operations information. PMESII-PT is an environmental scanning and monitoring technique, like the SWOT, PESTLE, and QUEST analysis. Developed by the United States Army, used as a way to execute a more complex strategy in foreign countries with a complex and uncertain context to map.
The SPACE (Strategic Position and Action Evaluation) analysis was developed by strategy academics Alan Rowe, Richard Mason, Karl Dickel, Richard Mann, and Robert Mockler. The particular focus of this framework is strategy formation as it relates to the competitive position of an organization. The SPACE analysis is a technique used in strategic management and planning.
A lotus diagram is a creative tool for ideation and brainstorming. The diagram identifies the key concepts from a broad topic for simple analysis or prioritization.
Functional decomposition is an analysis method where complex processes are examined by dividing them into their constituent parts. According to the Business Analysis Body of Knowledge (BABOK), functional decomposition “helps manage complexity and reduce uncertainty by breaking down processes, systems, functional areas, or deliverables into their simpler constituent parts and allowing each part to be analyzed independently.”
The multi-criteria analysis provides a systematic approach for ranking adaptation options against multiple decision criteria. These criteria are weighted to reflect their importance relative to other criteria. A multi-criteria analysis (MCA) is a decision-making framework suited to solving problems with many alternative courses of action.
A stakeholder analysis is a process where the participation, interest, and influence level of key project stakeholders is identified. A stakeholder analysis is used to leverage the support of key personnel and purposefully align project teams with wider organizational goals. The analysis can also be used to resolve potential sources of conflict before project commencement.
Strategic analysis is a process to understand the organization’s environment and competitive landscape to formulate informed business decisions, to plan for the organizational structure and long-term direction. Strategic planning is also useful to experiment with business model design and assess the fit with the long-term vision of the business.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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