Ezekiel John Roque

2015707041

FACTORS POSITIVE NEGATIVE

1. SOCIO-CULTURAL “There are so many
car enthusiasts in the
Philippines”
2. TECHNOLOGICAL “The innovation of
electric cars”
3. ECONOMIC/ENVIRONMENTAL “Oil price hike”
4. POLITICAL/LEGAL “Higher Net Income”

Explanation:

The STEP Analysis (Social, Technological, Economic/Environmental and Political/legal)

is a management method whereby an organization can assess major external factors that
influence its operation in order to become more competitive in the market. As described by the
acronym, those four areas are central to this model. It is a A comprehensive assessment of the
major areas of influence that affect the sector in which an organization is positioned, as well as
the organization itself, can facilitate more effective strategic planning. This planning can be
undertaken to maximize the organization’s ability to capitalize on conditions as they exist, and to
be forewarned of and better prepared for imminent changes, allowing the organization to stay
ahead of competitors.

For the first factor Social and cultural factors are important to consider while creating and
implementing a marketing strategy of a company. These often-linked but somewhat different
factors have diverse effects on the decisions of consumers and buyers. Sociocultural factors are
customs, lifestyles and values that characterize a society. Like for my company Petron is an oil
company which offers gas to operate a vehicle. Here in the Philippines there are a lot of car
enthusiasts so what is a car enthusiast? And why it gives a positive effect on our company. Car
enthusiasts are people who are highly interested in cars it means that they love cars and how can
they operate a car? Of course they needed a gas. So it means that if the market of cars are
increasing the market of gas is also increasing.
 For the second factor Technological this are variables that are being used for evaluating
available alternatives with respect to technological capabilities. Organizations consider it an
important tool for improving operations and functions. Technological factors are one of various
external environment factors that affect businesses greatly and are also an integral component of
the STEP analysis. In the present scenario, utmost dependence on equipment, technological
factors can have more effect on business operation and success globally than ever before. And as
I have mentioned before in the previous factor, in our country, the Philippines, there are a lot of
Filipinos that are car enthusiasts. With this reason, there are far more big innovation of cars with
the help of the rapid change in modern technology. Nowadays they are developing what they
called “electric cars”. These cars are plug-in electric automobile that is propelled by one or more
electric motors, using energy typically stored in rechargeable batteries. This means that the need
for fuels and gas won't be a problem anymore for electronic cars. This leads to a negative effect
to the oil industry wherein their market will slowly decrease.

We go to the third factor Economic/Environmental these consists of all the external

factors in the immediate marketplace and the broader economy. These factors can influence a
business, how it operates and how successful it might become. Some of the factors that impact
the economic environment of a nation as well as the world are Inflation and deflation, Interest
rates, Exchange rates, Monetary and fiscal policy. Here in the Philippines the price of the oil is
increasing and increasing. It is not a good news for our consumers especially for our PUV
drivers and commuters. It will cost them more and will earn less because of the oil price hike and
it is also a bad news for our commuters because if the oil price will continue to increase PUV
driver's will tend to demand for a higher fare. But for oil companies like Petron this is a positive
effect for them because even they will spend more for their product they will market it in a
higher price and it will be still sold because of its demand.

For Political and Legal Political factors may also include goods and services which the
government aims to provide or be provided (merit goods) and those that the government does not
want to be provided (demerit goods or merit bads). Furthermore, governments have a high
impact on the health, education, and infrastructure of a nation. Petron Corp. has posted a 141.6%
increase on its net income they say that "We attribute our improved bottom line largely to
continuing efforts to find new markets for our products, but our operating efficiency also
continues to improve," said Virginia A. Ruivivar, corporate communications manager of Petron.
Aside from its improved export sales, Petron also posted increases in its commercial or industrial
accounts in spite of steadily declining fuel purchases of one of its biggest customers, the soon-to-
be-privatized National Power Corp. This allowed the company to keep its top slot in the local oil
industry with a commanding market share of 38.2%.