Differences between STEP analysis and similar methods
Posted: Sun Jan 19, 2025 9:56 am
In STEP and PEST analysis, the factors studied are the same. The difference is that when using the STEP analysis method, the main role is given to social and technological issues. In PEST analysis, politics and economics are a priority. The choice of the methodology used for analysis is determined by taking into account specific groups of environmental factors in terms of their possible impact and stability.
STEP analysis is mainly used when the political system is stable, the level of economic development is high, and social and technological factors play a leading role.
When analyzing the macroenvironment in countries with underdeveloped economies, PEST analysis is used. PESTLE analysis is the same PEST analysis, which takes into account legal and natural factors (Political, Economic, Social, Technological, Legal, Environmental). SLEPT method (STEP plus L (Legal) is an analysis of the sequential impact of social, legal, economic, political and technological factors. STEEPLE analysis is also used. In addition to the usual STEP analysis, it includes environmental, legal and ethnic issues.
Differences between STEP analysis and similar methods
STEP analysis is sometimes cash app database used together with the SWOT method. When using the SWOT method, strengths and weaknesses (Strengths, Weaknesses), potential opportunities (Opportunities) and threats (Treats) are identified and their interrelations are established. The established relationships can be used when developing a company strategy.
Factors in STEP Analysis
To understand the overall picture and identify potential threats, the analysis of the impact of the external environment on the company's activities should be carried out for all factors. Each parameter should be analyzed separately.
For each company, the list of current circumstances will be unique. It will not be possible to use previously developed tables and lists of factors as a basis. Actions that need to be taken must be determined, and the results of the work already carried out must be taken into account.
Social factors of STEP analysis
Social factors include:
Demographic.
Standard of living.
Lifestyle.
Level of education.
Taste and consumer preferences.
Change in income.
For example, when conducting a STEP analysis of a travel agency, the following points must be taken into account. In recent years, the standard of living of the population has decreased, that is, the economic and social factors are at work. In such a situation, part of the population will choose a cheaper vacation spot, refusing an expensive one. A travel agency should offer its clients who can no longer afford an expensive vacation, cheaper options.
STEP analysis is mainly used when the political system is stable, the level of economic development is high, and social and technological factors play a leading role.
When analyzing the macroenvironment in countries with underdeveloped economies, PEST analysis is used. PESTLE analysis is the same PEST analysis, which takes into account legal and natural factors (Political, Economic, Social, Technological, Legal, Environmental). SLEPT method (STEP plus L (Legal) is an analysis of the sequential impact of social, legal, economic, political and technological factors. STEEPLE analysis is also used. In addition to the usual STEP analysis, it includes environmental, legal and ethnic issues.
Differences between STEP analysis and similar methods
STEP analysis is sometimes cash app database used together with the SWOT method. When using the SWOT method, strengths and weaknesses (Strengths, Weaknesses), potential opportunities (Opportunities) and threats (Treats) are identified and their interrelations are established. The established relationships can be used when developing a company strategy.
Factors in STEP Analysis
To understand the overall picture and identify potential threats, the analysis of the impact of the external environment on the company's activities should be carried out for all factors. Each parameter should be analyzed separately.
For each company, the list of current circumstances will be unique. It will not be possible to use previously developed tables and lists of factors as a basis. Actions that need to be taken must be determined, and the results of the work already carried out must be taken into account.
Social factors of STEP analysis
Social factors include:
Demographic.
Standard of living.
Lifestyle.
Level of education.
Taste and consumer preferences.
Change in income.
For example, when conducting a STEP analysis of a travel agency, the following points must be taken into account. In recent years, the standard of living of the population has decreased, that is, the economic and social factors are at work. In such a situation, part of the population will choose a cheaper vacation spot, refusing an expensive one. A travel agency should offer its clients who can no longer afford an expensive vacation, cheaper options.