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DESTEP Analysis Template & Example

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To use the DESTEP analysis template, perform 3 simple actions: fill in the gaps, pick the best design, and download the results. Let's learn more about the tool!

A DESTEP analysis tool helps comprehend the external environment and the problems that could impact a business. Leaders use this method to make fundamental decisions and stimulate the company's growth. You have to take these steps to conduct the DESTEP analysis:

  1. Understand the components under research.
  2. Examine the connections between various trends.
  3. Link the trends to the problems.
  4. Predict the future course of the issues.
  5. Conclude the results you have received.
Table of Contents
(clickable)
  1. 📍 What Is DESTEP Analysis?
  2. 📝 How to Conduct a DESTEP?
  3. ☕ DESTEP Example – Starbucks
  4. 🌠 DESTEP Template Benefits
  5. 🔗 References
The picture provides an explanation of the term DESTEP.

📍 What Is DESTEP Analysis?

DESTEP is for demographic, economic, sociocultural, technological, ecological, and political factors. DESTEP (or DEPEST) analysis is a strategic business decision tool that incorporates significant external factors from the macro environment. The approach is commonly represented as a six-pillar structure or a two-by-three matrix and can be used in any industry. DEPEST analysis results highlight the sphere in a company that needs monitoring and improving.

What Is DESTEP Used for?

The DEPEST analysis aids businesses in understanding their external environment and the issues which may impact strategic plans.

  • This research identifies key market factors and provides contextual details about the company's plans.
  • When conducted with a big team, DESTEP analysis provides versatile results because different people have different backgrounds and experiences.
  • DEPEST analysis is a helpful onboarding tool. The external elements affecting the business will be evident to new team members as soon as they join the team.

📝 How Do You Conduct a DESTEP?

As mentioned, each letter in the DEPEST analysis is associated with a business-influencing factor. These factors are very unpredictable, so the company has to be aware of the consequences they may cause.

Demographic factors Evaluate the location, population, and geographic features of the area where the company is placed. Such details will assist in developing and growing the firm.
Economic factors Gather information about the economy, climate, market features, inflation, and purchasing power. Monitoring such aspects will help reduce inflation's impact in the future.
Sociocultural factors Research customer traits, such as communication and lifestyle. You will understand why the potential consumers buy from the company and what they expect from the purchase.
Technological factors Monitor technical trends and innovations. This knowledge will help improve the company’s cyber security and storage systems.
Ecological factors Assess the importance and impact of natural resources, ecological friendliness, waste, and safety.
Political factors Highlight all crucial political factors that influence the business. This factor will prevent lawsuits and other political problems.

☕ DESTEP: Example of Use

Starbucks is a massive chain of coffee shops in the world. The DESTEP analysis example of this famous brand might look as follows:

Demographic factors

Consumers of Starbucks are working-class people of middle age and people on the go. A significant percentage of this layer of people is financially stable, so the company has to focus more on this category of customers.

Economic factors

Coffee shops have not proven to be recession-proof, as evidenced by the financial crisis of 2008–2009. Most customers view Starbucks's coffee as a luxury rather than a necessity. The coffee shop has to be prepared to deal with inflation and set a price on coffee beans ahead of time.

Political factors

As a World Fair Trade Organization member, Starbucks must satisfy minimum per-pound price requirements for coffee beans. Coffee sent to the United States has minimal import taxes and tariffs. Also, there are no limits on the quantity of coffee imported into the US for commercial use.

Environmental factors

In the era of environmental consciousness and green movements, many businesses are under growing pressure to undertake green projects. The growing number of ecologically concerned customers are attracted to coffee businesses that use recycled paper and less plastic.

Sociocultural factors

Many people are becoming increasingly concerned about their health. As a result, they are seeking healthier food and beverage options. It is a good idea for Starbucks to provide low-calorie beverages and food and list nutrient info on their menus.

Technological factors

Using social media has increased the number of sales for Starbucks. Adding the capability for users of mobile devices to make barcode payments also has played a very significant role in the coffee shop development.

🌠 DESTEP Analysis Template Benefits

There are many advantages of using our automated instrument. The DESTEP analysis tool is:

  1. Quick and simple. It can help you complete the research in a few minutes without difficulties.
  2. Free. You can implement your ideas and save money at the same time.
  3. Visual. Do you like colorful diagrams and schemes? Then, the DEPEST analysis tool is perfect for you to frame your thoughts.
  4. Accurate. A considerable benefit of the tool is that it aids you in analyzing things in an exact and faultless way.
  5. Available on any device. You can use our tool on your computer or smartphone. All you need is an internet connection.

Thank you for reading this article! We hope that the information above was useful. Check our other online writing tools to polish your assignment or get inspired.

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🔗 References

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