CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: External Environment
A packaged-snacks company in Pune notices that rising health awareness among urban consumers is reducing demand for fried products, while a new government scheme gives subsidies for millet processing. Under PESTLE analysis, these two developments belong respectively to which factors?
Health awareness is a social factor and a government subsidy scheme is a political factor, so the correct pairing is Social and Political. The reverse order is incorrect because the question lists the consumer trend first and the subsidy second.
- ASocial and PoliticalCorrect
- BEconomic and Legal
- CTechnological and Environmental
- DPolitical and Social
Explanation
Changing health awareness and lifestyle attitudes are social factors. A government subsidy scheme is a policy decision and falls under political factors. Option D reverses the order, so it is wrong.
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