The purpose of a macro-environmental (STEEP) analysis is to capture and interpret what is happening (and what is likely to happen) in the environment in which a business operates. It accounts for the broad trends, forces, and changes beyond the boundaries of the firm, which may impact the operations and markets of the firm. STEEP stands for social, technical, economic, ecological, and political factors. This chapter discusses the underlying theory, core idea, depiction, process, insight or value created, and risks and limitations of STEEP analysis. Finally, the chapter offers the illustration of Japan Tobacco International and applies the steps of STEEP analysis to this case.