Business cycle

Describes the regular fluctuations in the level of economic activity in an economy, over time.

Direct tax

A category of tax, imposed on the income, wealth or profit of an individual or organization. Examples include income tax (imposed on wages and salaries, for example) and corporate tax (imposed on the profits of businesses).

Economic growth

Stage / phase in the business cycle when the value of a country’s output of goods and services (Gross Domestic Product) increases.

Environmental factors

Ecological influences which have a direct impact on the operations of a business, e.g. adverse weather, climate change and green technologies.

Ethical factors

External influences concerned with the moral values and beliefs that apply to businesses and how they operate.

External business environment

The framework of factors that are beyond the control of any individual organization, but which affect all businesses and their operations in the economy.

Indirect tax

A category of tax, applicable on the sale of goods and services, such as VAT, GST and excise duties.

Political factors

Influences from the role that governments play in business operations, e.g. tax laws and rules or restrictions on international trade.

Recession

Phase in the business cycle that occurs when there is a decline in the level of economic activity (GDP) for at least half a year.

Social factors

Influences related to people, their lifestyles and their beliefs (or values).

STEEPLE analysis

A management tool used to analyse the factors in the external business environment that impact on business operations, i.e. social, technological, economic, ethical, political, legal, and environmental factors.