What do Political/Legal factors in STEEP analysis primarily address?

• A. Cultural trends
• B. Government policies and legal environments
• C. Natural resource availability
• D. Technological innovation

Answer: (B)

Political and legal factors in STEEP analyze how government actions and the legal framework shape what a business can and must do. They look at laws, regulations, policy priorities, and political stability to understand their impact on operating costs, market access, and risk. This includes tax policy, trade rules, labor and environmental laws, licensing and compliance requirements, and protection of intellectual property. These elements determine the opportunities and constraints a company faces when planning strategy and day-to-day activities. Cultural trends belong to the social dimension, while natural resource availability ties to environmental/economic considerations, and technological progress falls under the technological dimension.