SLEPT Analysis

Published by MBA Skool Team, Last Updated: August 15, 2018

What is SLEPT Analysis?

SLEPT analysis is a framework to assess an organization’s external environmental influence on it. It considers five factors affecting the macro-environment - Social, Legal, Economic, Political and Technological (hence the mnemonic SLEPT)

The outcome of SLEPT analysis is an overall picture of the macro environment to identify threats and opportunities that can be used in SWOT analysis. SWOT further adds on the internal factors affecting the organization. SLEPT helps to identify and hence take advantage by maximizing opportunities and minimizing threats. It gives an understanding of the broad and long term trends and makes the firm in a better position for strategic decision making.




 





Social Factors: Includes health consciousness, education level, population growth rate, gender distribution, social classes etc.

Legal Factors: Includes laws such as anti-trust law, discrimination law, intellectual property laws, consumer protection laws, employment laws, regulatory mechanism etc.

Economic Factors: Includes growth rates, inflation rates, interest rates, exchange rates, fiscal policies, monetary policies, credit availability etc.

Political Factors: includes government policies and intervention in the economy such as corruption level, government stability, trade control, competition regulation, involvement in Trade Unions, consumer protection laws, employment laws etc.

Technological Factors: includes technological aspects such as R&D activity, technology incentives, rate of technological change, infrastructure level, access to technology etc.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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