In summary:
A list of external conditions that affect the company's business has been determined.
The company's management assessed the influence of each factor on the company's development prospects (on a scale from 1 to 10), as well as the degree of their trust in the invited experts.
Invited industry experts assessed the probability of change in one factor or another (from 0 to 1).
The average weighted cash app database probability of a change in the factor was obtained by calculation (weighted according to the degree of confidence in the experts’ forecasts).
The final value of the calculated coefficient is obtained as the product of the weighted average probability and the indicator of the factor’s influence on the organization’s work.
Based on the results of the analysis, the company's management should first of all prepare the company for a significant decrease in solvency (as an option, by strengthening control over accounts receivable) and the emergence of similar products on the market (as an example, by increasing investments in its own research and development work).
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Checklist: How to Achieve Your Goals in Negotiations with Clients
Three mistakes in conducting STEP analysis
Let's look at the main difficulties and mistakes made during STEP analysis. We'll also look at how to correctly assess STEP analysis factors.
Overgeneralization of data
The owner of the future business sets the task for the marketer to conduct a study that will provide information for making a decision on organizing the production of shoes intended for wealthy buyers. A month later, the marketer presents the management with a developed table of STEP-analysis of the environment, where he notes the following as political factors:
In Russia, private business is allowed because it is a democratic country.
The presidential elections next year will not lead to changes in political course, and no significant changes are expected.
There are signs of corruption in the administrative center.
It is obvious that all these factors are general and have practically no effect on a possible business. It turns out that they should not be included in the table. The first point about the possibility of opening a private business in our country is more relevant for the STEP analysis of the market of the 90s. At present, this statement does not require proof and it is pointless to take it into account.
The second point is also general. Changes in management will not have a significant impact on small and medium busin