Steep Analysis Model

Question one

Explain STEEP analysis and discuss the importance of analysing environmental factors (STEEP) for an organization. Provide examples to support your answer. (35 marks) organization will carry out analysis of their external environment as part of their overall businesses planning to identify potential threats and opportunities .STEEP models encourages you to take a step back from your business .generally ,the major environmental factors impacting on an organisation can be grouped under five heading : social and demographic

Relate to the impact of societal structure and change on business .include age range, gender specific, income brackets, , cultural leanings, life-style and leisure patterns, changes in social trends,

One of the advantages of small business is its flexibility and ability to adapt to economic circumstances unlike large businesses and corporations. In addition, many small businesses are acquired by or become large businesses, potentially providing greater opportunities.

Larger corporations require small businesses to provide services and support for their operations. Moreover, small businesses are more localized than larger business (which can benefit local communities).This can take on numerous forms, often outsourcing; especially in matters such as IT/ICT, transport, security and even cleaning and other services.

Small businesses may also be acquired by larger businesses as part of strategy. An early example was when Nokia acquired Symbian (a software company) which subsequently provided operating systems for Nokia. Other examples include Maktoob which was acquired by Yahoo.

Some other well known names such as Heinz or Kellogg’s started as small businesses but grew over time. Others such as Apple and Microsoft initially began as small businesses but developed into large corporations over a very short period of time. In addition, these businesses have been able to produce products that have changed people’s culture and

It is just as important to identify opportunities, but also to realise when to pass some of them. Many are driven by a competitive desire to excel and perseverance in a difficult environment.

Constant improvement and dissatisfaction with the current status quo is also part of entrepreneurial trait, because they always believe in improvement. Likewise, networking is very important, especially when dealing with suppliers, financers (including banks), government, clients and customers and competitors.

Entrepreneurs are also action-oriented, and should be able to lead employees but also have influence external groups such as banks, suppliers, government and other groups. They need to build strong lobbying networks to ensure that they can obtain the resources (physical, financial and human) to achieve their objectives and goals. Finally entrepreneurs need to be able to identify opportunities and seize or pass them when and where they present themselves.

Referencese :

Ellis Connolly, David Norman and Tim West , 2012 , Small Business: An Economic Overview , Australia