The STEEPLE model is a strategic management tool used to analyze the macro-environment, the opportunities and threats in the external environment. It is an expansion of the well-known PESTEL analysis, and provides a more comprehensive view of the external environment.
The STEEPLE acronym stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.
- Social: Cultural aspects, demographics, societal values, lifestyle trends.
- Technological: Innovation and advancements in technology that affect operations, products, or services.
- Economic: Macro-level economic forces that influence consumer purchasing power and the cost of capital.
- Environmental: Ecological and environmental factors – climate to sustainability – that influence business decisions.
- Political: Political stability, government policies and foreign trade agreements.
- Legal: Regulatory framework, specific laws, and legal standards that a business must comply with.
- Ethical: Moral standards expected by society, stakeholders, and the public.
While the STEEPLE model may look similar to PESTLE, it is actually an extension. STEEPLE includes all the factors of PESTLE plus one additional, important element: Ethical factors.
PESTLE is the more traditional and more commonly used framework, STEEPLE provides a more contemporary analysis for businesses as stakeholders are increasingly scrutinizing Corporate Social Responsibility (CSR) and ethics.
