E-Environment

In: Business and Management

Submitted By kefffy
Words 843
Pages 4
The E-Environment

SLEPT analysis

Before creating business plans or when evaluating existing ones it is important to 'scan' the external environment. This takes the form of a SLEPT analysis, i.e. an investigation of the Social, Legal, Economic, Political, and Technological influences on a business. In addition it is also important to be aware of the actions of your competitors. These forces are continually in a state of change.
Social factors relate to pattern of behaviour, tastes, and lifestyles. A major component of this is a change in consumer behaviour resulting from changes in fashions and styles. Social factors include the influence of consumer perception in determining usage of the internet for different activities. The age structure of the population also alters over time (currently we have an ageing population). An understanding of social change gives business a better feel for the future market situation.
Legal changes as well as ethical and taxation determine the method by which products can be promoted and sold online. Laws are continually being updated in a wide range of areas, e.g. consumer protection legislation, environmental legislation, health & safety and employment law, etc.
Businesses need to take a pro-active approach and be ahead of these changes, rather than hurriedly making alterations to products and processes in a reactive way. Governments, in behalf of society, seek to safeguard individuals rights to privacy.
Economic changes are closely related to social ones. The economy goes through a series of fluctuations associated with general booms and slumps in economic activity. In a boom nearly all businesses benefit and in a slump most lose out. The variation in ecomomic performance in different countries and regions affect spending patterns and international trade. Other economic changes that affect business include changes in…...

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