📌 How to Use STEEP Analysis Template
To use our free STEEP analysis template, take these 3 simple steps:
- Enter your data. List the social, technological, economic, environmental, and political factors affecting your company. If necessary, you can add legal and ethical aspects.
- Choose your favorite design. You can select the layout and colors that best fit your purpose.
- Download the result. Our template is available in .pdf, .docx, .jpeg, and .png.
🎓 STEEP Analysis Explained
The STEEP analysis is a macroenvironmental analysis of the company. It examines the external factors affecting the organization’s operations and performance. In particular, it looks at the social, technological, environmental, economic, and political trends relevant to the company.
The importance of STEEP analysis in business is undeniable. Managers use it in times of uncertainty when they need to predict how the market will respond to external changes.
STEEPLE Factors
The STEEP model matrix includes 5 elements: social, technological, environmental, economic, and political. However, some scholars add 2 more components to the framework: legal and ethical. The table below explains all 7 STEEPLE factors.
| Factor | Explanation | Examples |
|---|---|---|
| Social | The target audience’s attitudes and opinions affecting their purchasing behavior |
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| Technological | Innovations and technological advancements affecting business |
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| Environmental | Ecosystem factors pertaining to the company’s geographic location and influencing its operations |
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| Economic | The current state of the economy |
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| Political | The government involvement in the economy and business |
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| Legal | Laws applying to the territory where the company operates |
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| Ethical | Moral principles that guide people’s behavior in a particular culture |
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🆚 STEEPLE Factors vs. PESTLE Analysis
The STEEPLE and PESTLE analyses have much in common: they analyze the company’s external environment. PESTLE was developed in the 1960s and initially included only 4 factors: political, economic, social, and technological. The other 2 factors — legal and environmental — were added later.
The STEEPLE framework is a further advancement of the PESTLE analysis. It contains the same 6 factors but has one significant addition — the ethical factor. Hence, STEEPLE provides a more comprehensive overview of the business context.
📝 STEEP Analysis Example
Here we will look at the STEEP analysis example of Ford Motors, a US-based international automobile company:
- Social: Consumer preferences have shifted toward increased safety and sustainability, forcing Ford to make operational changes.
- Technological: The emergence of autonomous vehicles, 3D printing, and battery technologies implies that Ford has to invest in R&D to maintain its competitive advantage.
- Economic: Decreased unemployment rates in the US can increase Ford’s sales, but high inflation rates may result in the opposite.
- Environmental: Several countries, including the US and Canada, have adopted the Zero-Emission Vehicle program, obliging automakers to sell electric vehicles rather than gas-powered ones.
- Political: Political instability in foreign countries where Ford operates can negatively affect the company’s success in those markets.
This analysis example shows that Ford is forced to produce more electric cars instead of gas-powered ones to respond to changes in its external environment.
⭐ Benefits of STEEP Analysis Template
Do you need a well-designed analysis of your company’s context? Try our STEEP analysis template! It can be helpful to you because it is:
- Time-saving. You don’t need to draw diagrams or tables yourself. Just enter your analysis data and get the result.
- Free to use. We do not charge any fees for using our templates.
- Customizable. You can choose from a variety of elegant designs prepared by our team.
- Accessible. Whether you use the template on your mobile phone or desktop, you can download the result.
Thank you for reading this article! If you wish to check other business analysis approaches, consider trying our PESTEL, SOAR, SWOT, and Porter’s 5 Forces analysis templates.
❓ FAQ
❓ What Does the STEEP Acronym Mean?
The STEEP acronym stands for Social, Technological, Economic, Environmental, and Political. These are 5 factors of the external environment that influence any company’s business.
❓ What Is a STEEP Analysis?
The STEEP analysis is an analysis of the company’s macro environment. It consists of 5 external factors: social, technological, environmental, economic, and political. A company has no control over these elements, but they still significantly influence its operations. Therefore, a firm should track changes in these factors and adjust its strategy accordingly.
❓ What Is STEEPLE Analysis?
The STEEPLE analysis definition is similar to that of the STEEP analysis. The only difference is the number of components included in the model. STEEPLE considers 2 additional factors — legal and ethical — in addition to social, technological, environmental, economic, and political factors included in STEEP.
❓ How to Conduct a STEEP Analysis?
To conduct a STEEP analysis, you should examine 5 aspects of the company’s external environment:
- Social: What consumer attitudes affect the company’s business?
- Technological: Are there any technological advancements in the industry?
- Economic: How can the current state of the economy influence business operations?
- Environmental: What environmental conditions or regulations affect the business?
- Political: How is the government involved in the economy and industry?
🔗 References
- Difference between SWOT, PEST, STEEP and STEEPLE Analysis — LinkedIn
- STEEPLE Analysis: How to Conduct a STEEPLE Analysis — MasterClass
- Market Research: External Analysis — The University of North Carolina at Chapel Hill
- Analyzing Environments and Developing Scenarios in Uncertain Times — Horizon Site
- 9 External Environment Factors That Affect Business — Indeed