The STEEP Analysis

A STEEP analysis is a tool to evaluate various external factors impacting a business or organization. STEEP is an acronym for Social, Technological, Economic, Environmental, Political.

The STEEP analysis is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up of:
1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.

FACTOR
IMPLICATIONS
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ANALYSIS
SOCIAL
1. Increasingly better informed patients.
Due to the availability of information, Nowadays people are become very cautious on their diet and related health issues and they want to know more about diseases.
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Increase of regular check up will increase patients to the hospital and this is a positive thing to the business since they will be getting more customers.
3. Change in the customers income.
There is a change in lifestyle in the Malaysian society as the economy is growing and the people's income are increasing. This will make them demand for better services.

The hospital should devise new ways of improving their services since people are now willing to spend more on health due to the income increase.
4. Increase number of Older people
There is an increase of ageing people in the society. As man diseases come during old age, there will increase of more old people seeking medical assistance.

This an opportunity for the hospital to improve the services for the old people. Example Creating a follow up system which will care for the old people even when they are at home.
5.Increased demand of health services in rural areas.
This means that with the government trying to improve the medical conditions in rural areas, Sunway Hospital can enter to a partnership to supply those services in such areas.

Sunway medical centre needs to develop new systems that will which be able to meet the demands of people in rural areas that are in need. For Example dispatching doctors to rural areas for monthly check up.
TECHNOLOGICAL
1. Electronic Data Interchange

The EDI technology has made it easier for the hospitals to share information and improve flow of communication.
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If there a good flow of communication within the hospitals, their medical processes will be made faster, therefore improving their services by minimizing the waiting time for their respective patients.
2. Increased complexity in Hospital care



ECONOMICAL
1. High interest rates


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2. Outsourcing
IT Outsourcing is a common growing practise in businesses today. This will help hospital to concetrate on the core service which is medical services.
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If all the information systems and IT needs are outsourced to proffesionals, the hospital will get time to concentrate on the main core of their business which is providing medical services. This will result to better services and increased productivity.
3. increase price in drugs and medical equipment.
This will increase the operational costs of the hospital of purchasing drugs and this will increase costs to the patient as well. If the hospital fail to get the drugs then the patients will be unable to buy drugs as well.
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The increase of drug service may threaten the hospital in terms of limiting their medical supply and this may affect the provision of services due to the unavailability of drugs and other medical equipments.
4. Increase costs of medical staff
The medical staff for instance doctors are becoming over qualified and this will increase the costs of hiring them in the organization
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If the hiring qualified doctors become costly, this may lead to hiring normal doctors and not specialists and this may jeopardize the quality of the services provided.
ENVIRONMENTAL
1. Waste recycling
Saving energy
Reducing the pollution level
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2. Environmental Pollution
Environmental Pollution will affect the citizen's health like accelerating diseases such as heart conditions, diarrhea from water pollution and this will increase the number of people of seeking medical attention
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If more people get sick it is unfortunate but it also a positive point to Sunway Medical Centre as they will be getting more customers.
POLITICAL
1. Government regulation
The government through the ministry of Health is trying to provide health initiative to improve the quality of medical services. For example Funding health projects and investment.


Furthermore,Medical Tourism has led to the recent increase on the number of tourists coming to Malaysia to find medical assistance will implicate the possibility of getting a new segment of customers from other countries
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If the government subsidizes the cost of medical services, this will affect the hospital since their services will be made cheaper and this will affect the productivity of the hospital because of the cost sharing policy by the government.

Sunway Hospital should work closely with the government to make sure that enter to a sort of partnership with them to promote Malaysia as an attraction for medical services and this will increase the turnover in the business.
2. Entrance of private medical institutions
The entrance of these private institutions provide a challenge to Sunway Hospital as a private hospital as well since they tend to have similar practices and competition for the customers will be high.
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This can be positive as well as negative as it will help improve the quality of the medical services in the industry as everyone is competing for the market. However the competition can be negative as well as it is likely to reduce customers to the hospital.

STEEP analysis of the deformation

Sometimes, the expansion will also use PEST Analysis of deformation of forms, such as SLEPT analysis, STEEPLE analysis, STEEPLE is the abbreviation for English words following factors, Social / demographic, Technological, Economic.Environmental / Natural, Political, Legal, Ethical.
In addition, Geographical Factor sometimes there may be significant.
More extensions:
PESTLE / PESTEL analysis - Political, Economic, Sociological, Technological, Legal, Environmental
PESTLIED analysis - Political, Economic, Social, Technological, Legal, International, Environmental, Demographic
STEEPLE analysis - Social / Demographic, Technological, Economic, Environmental, Political, Legal, Ethical
SLEPT Analysis - Social, Legal, Economic, Political, Technological

Case Study:

KUALA LUMPUR: Young people should channel their passion and determination towards growing socio-economic opportunities to develop themselves, Datuk Seri Najib Tun Razak said. “The spirit of volunteerism should be inculcated, driven by their grit and idealism.
“Serve the community with devotion, for money will not last forever but kindness will always be remembered,” the Prime Minister said in his message in conjunction with the national Youth Day 2011 celebration today on his 1Malaysia blog.

Social:
This would be encourage the young people working or studying hard for themselves future, even can bring along the country's development.

Technological:
Various area's technology that young people focus on would be achieve product innovation. So that the new technology and new products would be appeared in the market.

Economic:
Young people are the future of the country and as they working in the future will bring more contribution and even the economic interest to the country.

Environmental:
Make sure the future environment (internal&external) must be fair, safety and reliable. Provide the best development environment to the young people. Avoid discrimination happened especially the gender and race problem.

Political:
Till now there are not many political rules published for the young people's development in malaysia.