p.1
External Environment Analysis
What are the two main environments analyzed in external environment analysis?
Remote environment and industry environment.
p.1
External Environment Analysis
What factors are included in the remote environment?
Social, technological, environmental, ethical, political, legal, and economic factors.
p.1
External Environment Analysis
What factors are included in the industry environment?
History, markets, new entrants, suppliers, buyers, industry rivalry, substitutes, governments, life cycle, suppliers’ suppliers, buyers’ buyers, competitors, strategic groups, and customers.
p.1
Factors Influencing Industry Growth
How can knowledge of industry history and trends benefit an organization?
It allows for better anticipation and foresight in planning future strategies.
p.1
Factors Influencing Industry Growth
What is the importance of having contingency plans in strategy?
To mitigate discrepancies between predictions and actual occurrences.
p.1
Factors Influencing Industry Growth
What is the typical time frame organizations consider as 'long term'?
Three to five years, but it can vary by industry.
p.7
Ethical Standards and Practices
How can technology impact trust within organizations?
Technology disruptions provide opportunities for organizations to build or lose trust.
p.8
Economic Indicators and Impact
What do government budget papers provide?
Quality data and predictions about future economic growth.
p.2
PESTEL and STEEPLE Frameworks
What does the PESTEL framework add to the traditional PEST analysis?
Environmental and legal issues.
p.11
Legal Regulations and Compliance
What legal change has affected professionals' choice of business structure?
Increased willingness of courts to award damages for malpractice, leading to preference for limited liability structures.
p.9
Environmental Considerations
What is a significant implication of climate change for organizations?
It can affect their operations and profitability.
p.3
Factors Influencing Industry Growth
What industries are expected to grow due to an increasing elderly population?
Hospitals, retirement villages, and medical industries.
p.5
Technological Advancements
What impact has the internet had on the print media industry?
It disrupted the industry, leading to reduced advertising revenue and declining circulation of physical newspapers.
p.8
Ethical Standards and Practices
What ethical issue do Australian organizations face when operating in countries with different pollution regulations?
Whether to adhere to Australian pollution guidelines or the local standards.
p.5
Technological Advancements
What risk do competitors face if they fail to keep pace with technological advancements?
They risk becoming unable to compete with more agile organizations.
p.9
Environmental Considerations
What trend has been observed in recent years regarding environmental factors?
Exponential growth of influence on organizations and stakeholders.
p.3
Social Trends and Demographics
What is the projected median age in Australia by 2066?
Between 39.5 and 43.0 years.
p.7
Ethical Standards and Practices
What role does 'ethical technology' play in organizations?
It helps employees understand company values, expectations, and recognize ethical dilemmas.
p.11
Political Influences and Legislation
What impact did the Royal Commission into the banking sector have?
Increased regulations around lending applications affecting the banking and finance industry.
p.5
Technological Advancements
What was a common response of senior managers to the rise of the internet?
They often rejected the idea that the internet could devastate their industry and avoided entering the online marketplace.
p.5
Technological Advancements
How has technology changed the way people access information?
People now use smartphones and wireless technology to consume, create, and transfer data across a wider range of activities.
p.12
Ethical Standards and Practices
Why do organizations face higher expectations regarding ethical behavior?
Consumers and stakeholders have greater access to information about organizations.
p.6
Technological Advancements
What do advances in analytics provide to decision makers?
Unprecedented insights into their organization, customers, and industry.
p.4
Social Trends and Demographics
What is the impact of an ageing population on government income?
An increasing percentage of retired individuals or those working less leads to reduced tax income for the government, affecting its ability to support the ageing population.
p.10
Political Influences and Legislation
What impact do political factors have on the accounting services industry in Australia?
Political factors significantly affect the growth and future of the accounting industry.
p.4
Technological Advancements
How can organizations build loyalty using technology?
By effectively using social analytics to communicate, involve stakeholders, and customize products and services.
p.8
Economic Indicators and Impact
What types of data does the ABS publish?
Data on prices, wages, economic growth, trade, the labour market, and investment.
p.9
Environmental Considerations
What significant change has occurred in the fashion industry regarding environmental practices?
Large fashion houses are taking action to enact positive change.
p.2
External Environment Analysis
What types of factors does STEEPLE consider?
Macro-environment factors that influence industry growth.
p.5
Technological Advancements
What is high-frequency trading and how does technology play a role in it?
It uses algorithms and ultra-fast internet connections to execute trades faster than competitors, capitalizing on price movements.
p.2
Strategic Decision Making
What are the implications of identifying patterns through STEEPLE analysis?
It helps in strategic decision-making and recognizing areas of possible instability.
p.10
Political Influences and Legislation
How do political factors influence industries in many countries?
Political influence and government legislation significantly affect industries.
p.12
Ethical Standards and Practices
What ethical dilemma can arise from rewarding finance managers?
They may prioritize company benefits over customer or stakeholder interests.
p.4
Social Trends and Demographics
What is the significance of 'authenticity' in consumer expectations?
Consumers are seeking real-time responses and less curated content, reacting against 'fake news'.
p.7
Technological Advancements
Why is collaboration between IT and finance leaders essential?
To optimize strategic outcomes and support digital transformation.
p.5
Social Trends and Demographics
What are some key social factors to consider in industry analysis?
Population profile changes, work profile changes, cultural profile changes, family dynamics, education profile changes, key social trends, emerging behavioral trends, and technology's impact on social information.
p.5
Technological Advancements
How has technology influenced the globalization of markets?
It has introduced new products, markets, and services, and increased competition through online stores.
p.9
Environmental Considerations
What opportunities do responsible business practices offer organizations?
Improved productivity, reduced waste, and improved profitability.
p.2
Factors Influencing Industry Growth
What is the purpose of a STEEPLE analysis?
To identify key drivers of historical and future growth in an efficient and systematic way.
p.2
Strategic Decision Making
How can STEEPLE analysis assist organizations?
By helping make strategic decisions while mitigating identified risks.
p.11
Legal Regulations and Compliance
What are some potential future legal issues for the accounting services industry?
Changes in legislation affecting employment, intellectual property, and competition.
p.12
Ethical Standards and Practices
What was the consequence for Volkswagen regarding their emissions calculations?
They faced US$2.8 billion in fines in the United States.
p.6
Technological Advancements
Why is blockchain technology considered transformative?
It establishes security and trust on a distributed network.
p.6
Technological Advancements
What is affective computing or emotion AI?
Technology that enables organizations to understand a human's emotional state.
p.9
Environmental Considerations
What actions are business leaders expected to take regarding environmental risks?
Mitigate risks and promote responsible and sustainable practices.
p.1
Economic Indicators and Impact
What are the two main components of industry growth?
Population growth and price inflation.
p.9
Environmental Considerations
What does 'circular design' refer to?
Considering the entire life cycle of a product at the design and sourcing stage.
p.8
Environmental Considerations
What has led to the growth of new industries like renewable energy?
Concerns about climate change and the negative environmental impact of traditional industries.
p.11
Legal Regulations and Compliance
What has been the impact of class action lawsuits in Australia?
Easier pursuit of actions against organizations, particularly in consumer products.
p.2
Environmental Considerations
What does the 'Environmental' factor in STEEPLE address?
The impacts of the environment on the industry.
p.12
Ethical Standards and Practices
How did the 2008 financial crisis affect ethical expectations in business?
It highlighted unethical practices and led to increased regulations and social expectations.
p.6
Technological Advancements
What has technology expanded the scope of risk management to include?
Disruption, reputation, culture, ethics, and relationship risks.
p.6
Technological Advancements
What is the significance of augmented and virtual reality?
It extends human-centric experiences beyond traditional interfaces.
p.4
Social Trends and Demographics
What is a key success factor in leadership within multinational organizations?
Cultural awareness is essential for successful leadership in diverse environments.
p.4
Technological Advancements
How is artificial intelligence changing consumer expectations?
AI simplifies information access, allowing even less tech-savvy consumers to engage and raising expectations for ease of access.
p.3
Social Trends and Demographics
How much is the Australian population projected to grow by 2041?
By 40%, from 24.2 to 34 million.
p.3
Factors Influencing Industry Growth
What impact does a reducing birth rate have on specific industries?
It results in less demand for primary schools and products associated with children.
p.11
Legal Regulations and Compliance
What has led to audit firms issuing transparency reports?
Increased reviews from external regulators such as ASIC and PCAOB.
p.8
Environmental Considerations
What environmental concerns have influenced industries in Australia?
Climate change, pollution, waste disposal, and water quality.
p.7
Economic Indicators and Impact
What is the significance of understanding business cycles for industries?
Industries must recognize that booms and recessions do not last forever and adapt accordingly.
p.7
Economic Indicators and Impact
What is the potential impact of technology on production costs in the industry?
Technology may reduce production costs, making products cheaper and more accessible.
p.2
Factors Influencing Industry Growth
What are the two key questions to consider when analyzing factors in STEEPLE?
1. How has this factor shaped the industry? 2. Will this change in the future, and what impact will it have?
p.12
Ethical Standards and Practices
What implications do ethical considerations have for organizations?
They affect strategic decisions and the ability to conduct practices ethically.
p.12
Ethical Standards and Practices
What are finance leaders expected to balance in their roles?
Protecting and preserving all stakeholder interests.
p.6
Technological Advancements
What is the convergence of business and IT?
The integration of technology and strategy to support agile business approaches.
p.4
Technological Advancements
How has technology influenced communication with stakeholders?
Technology has made it easier to monitor and analyze sociocultural attitudes, behaviors, and trends.
p.6
Technological Advancements
What is ambient experience in technology?
A future where technology is fully integrated into the environment for natural interaction.
p.6
Technological Advancements
What does exponential intelligence refer to?
Technology that can learn and adapt beyond programmed rules.
p.8
Economic Indicators and Impact
How can the public access ABS publications?
Free of charge on the day of publication via their website.
p.7
Technological Advancements
What is a key characteristic of leading organizations regarding innovation?
They have disciplined, measured innovation programs aligned with business strategy.
p.1
Technological Advancements
Why is analyzing the external environment crucial for predicting industry changes?
Because disruptive technologies are difficult to predict.
p.3
Political Influences and Legislation
Why is the ageing population a concern for the Australian government?
To contain the cost of healthcare services.
p.7
Technological Advancements
How might technological breakthroughs affect the accounting services industry?
They could render current practices obsolete or change operational methods.
p.2
Ethical Standards and Practices
What does the 'Ethical' factor in STEEPLE focus on?
Adhering to industry regulations, acceptable internal conditions, and safe products.
p.6
Technological Advancements
How has technology shifted traditional marketing?
Towards the creation of human-centric digital experiences that are sensitive and responsive to individuals.
p.10
Political Influences and Legislation
How do economic and social changes affect political decisions?
Most political changes result from shifts in the economy or social and cultural factors.
p.10
Technological Advancements
How has technology influenced political decisions regarding retail?
Technology has increased cross-border purchases, complicating tax issues for politicians.
p.9
Environmental Considerations
What do sustainability reports include beyond economic measures?
Economic and community measures of performance.
p.8
Factors Influencing Industry Growth
What economic factors affect the growth of the accounting industry?
Overall economic growth, employment figures, inflation, interest rates, and consumer spending.
p.8
Economic Indicators and Impact
How does the economic climate impact finance availability for the accounting industry?
It affects both the industry's ability to produce and the customer's ability to buy.
p.7
Economic Indicators and Impact
How can economic factors influence industry growth?
Changes in GDP, inflation rates, unemployment levels, and interest rates can significantly affect growth.
p.5
Economic Indicators and Impact
What is the 'freemium' model in the context of online news?
A model where basic content is offered for free while charging for premium content, which many traditional media organizations adopted but still struggle with.
p.5
Technological Advancements
What role do Chief Information Officers (CIOs) play in organizations today?
They manage data, build partner ecosystems, train employees, and oversee information management both internally and externally.
p.2
Legal Regulations and Compliance
What does the 'Legal' factor in STEEPLE encompass?
National, state, and local government regulations, and changing laws affecting the industry.
p.6
Technological Advancements
What role does technology play in the finance industry?
It creates a completely new form of competition through specialized computer programs.
p.10
Political Influences and Legislation
What role does the World Trade Organization play in political trends affecting industries?
It encourages the reduction of trade barriers, impacting various industries.
p.6
Technological Advancements
What does cognitive computing enable?
Human-like communication and decision making with computer precision and speed.
p.4
Technological Advancements
How has access to information changed consumer behavior?
Consumers are more informed than ever, leading to higher expectations from organizations.
p.4
Social Trends and Demographics
What social movements have gained traction recently?
The 'me-too' movement and issues surrounding 'toxic masculinity' continue to grow.
p.8
Economic Indicators and Impact
What is the main source of economic statistics in Australia?
The Australian Bureau of Statistics (ABS).
p.7
Technological Advancements
What are some key technological issues affecting the Australian accounting services industry?
Dependence on technology, changes in customer interactions, and distribution methods.
p.11
Political Influences and Legislation
How does the Australian Competition and Consumer Commission (ACCC) influence industry practices?
By monitoring practices that may reduce competition among organizations.
p.11
Legal Regulations and Compliance
What was the outcome of the recent Australian ruling regarding Uber drivers?
Uber drivers were ruled not to be employees, thus not entitled to minimum wage laws.
p.12
Legal Regulations and Compliance
What is one example of a regulation introduced in the accounting services industry?
Mandatory audit firm rotation and restrictions on other services in Europe.
p.10
Legal Regulations and Compliance
How do legal drivers affect industry conditions and growth?
Legal drivers can positively or negatively characterize industry conditions and affect growth.
p.6
Technological Advancements
What promise does quantum computing hold?
Vastly superior processing capabilities without technological limitations.
p.4
Social Trends and Demographics
What role does Greta Thunberg play in influencing social behavior?
Her activism on climate change continues to impact youth and global expectations for action.
p.11
Legal Regulations and Compliance
What legal implications arose from the introduction of the ride-share model in Australia?
Substantial legal action due to disruption in the transport industry.
p.11
Technological Advancements
How has technology affected the legal landscape for the accounting services industry?
Technology has impacted the collection of legal information and its effects on the industry.
p.2
Technological Advancements
What role does the 'Technological' factor play in STEEPLE analysis?
It considers the level of infrastructure and new technology impacting the industry.
p.10
Political Influences and Legislation
What is the relationship between legal issues and political factors in the STEEPLE model?
Legal issues are closely linked to political factors, often influenced by legislation.
p.4
Social Trends and Demographics
What is the demand increase in pharmaceuticals and health services attributed to?
The rising ageing population and the need to address degenerative diseases such as cancer and cardiovascular conditions.
p.4
Social Trends and Demographics
What cultural shift has occurred regarding food preferences?
Western fast-food chains have penetrated global markets, while exotic foods from various regions are gaining popularity.
p.10
Legal Regulations and Compliance
What has been a significant legal change affecting the tobacco industry in Australia?
The introduction of regulations banning labelled packaging in 2012.
p.6
Technological Advancements
How are digital twins used in organizations?
For sophisticated modeling and simulations to optimize processes, products, or services.
p.12
Ethical Standards and Practices
What are ethical considerations in external analysis?
They impact processes and actions influencing behavior of management and employees, both internally and externally.
p.12
Ethical Standards and Practices
What ethical issues did Nike face in their manufacturing processes?
Using sweatshops in Asia for production.
p.6
Technological Advancements
What has driven the migration towards cloud services?
An overwhelming shift away from in-house IT.
p.12
Ethical Standards and Practices
What skills are important for leaders in navigating ethical challenges?
Developing skills to navigate ethical minefields.
p.4
Social Trends and Demographics
Why is it important to identify sociocultural trends?
Understanding new attitudes and trends is crucial for adapting strategies for future success.
p.10
Political Influences and Legislation
What are some key political issues affecting the accounting industry?
Reliance on government policies, tax policy changes, and international trade regulations.
p.10
Legal Regulations and Compliance
How does globalization affect legal compliance for multinational companies?
They must consider local laws alongside international laws and treaties.
