STEP analysis

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The STEP analysis (also known as PEST analysis ) is an English acronym for Sociological, Technological, Economic and Political Change (in German: socio-cultural, technological, economic, political).

The STEP analysis is a model of external environmental analysis , i.e. macroeconomics . The STEP analysis lists the factors of the individual categories that can have an influence on the examined unit. It is often used by companies to study a market and market opportunities.

Assessment factors

Sociocultural factors are values, lifestyle, demographic influences, income distribution, education, population growth, security.

Technological factors include research, new products and processes, product life cycles , government research spending.

Economic factors are economic growth, inflation , interest rates , exchange rates , taxation , unemployment, business cycles , availability of resources.

Political factors include competition oversight, legislation, political stability, tax policies , trade barriers , security targets, and subsidies .

There are mutual dependencies between the individual factors, which means that a change in one area can also lead to changes in other areas. For example, technological changes can have economic consequences or political decisions can influence economic development. For each of the four influencing factors mentioned above, the following questions should be asked in the STEP (PEST) analysis in order to identify the changes and the driving forces that bring about the change:

  • Which future trends could change the demand and market behavior of our suppliers / our competitors?
  • When will this be the time?

Extensions

Depending on the industry, it can make sense to expand the factors or to subdivide them further.

STEEP

STEEP (or PESTE) is the extension of the STEP factors to include the environment factor (in English: ecological). These are values ​​such as waste disposal, emission regulations or the removal of contaminated sites or the effects of the ozone hole and global warming .

PESTLE

In the PESTLE (also PESTEL or LEPEST called) is added to the STEEP factor Legal added that particularly focuses on legal aspects. These are usually integrated into the political factors, but can also be listed as an extra factor for a better breakdown. It is therefore a matter of legislation, tax guidelines, competition regulations and other legal influencing factors. In return, the political analysis focuses more on stability, government organization, foreign policy relations. The second "E" stands for Environment or also for Ecological with which one can further aspects such as z. B. Emissions trading, environmental pollution and climate protection are taken into account.

use

The STEP analysis should not only be carried out statically, but should be carried out over a period of time in order to identify changes and developments.

The analysis is carried out by companies that want to expand into a new market, for example a new country. In order to be able to assess which risks, but also which opportunities exist, the STEP can be of great help. The results are used accordingly for the external analysis of the SWOT analysis .

literature

  • L. Fahey, VK Narayanan: Macroenvironmental Analysis for Strategic Management . West Publishing, St. Paul MN 1986, ISBN 0-314-85233-6
  • KL Keller, P. Kotler: Marketing Management . 12th edition, Pearson Education, Upper Saddle River 2006, ISBN 0-13-145757-8 , pp. 85ff.
  • R. Lynch: Corporate Strategy . 4th edition, Pearson Education, Harlow 2006, ISBN 0-273-70178-9 , pp. 84f.
  • M. Sander Marketing Management . Lucius & Lucius, Stuttgart 2004, ISBN 3-8282-0255-1 , p. 303ff.