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CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment

A textile exporter in Tiruppur is assessing the impact of stricter wastewater discharge norms, rising customer preference for sustainably produced garments, and unpredictable monsoon patterns affecting cotton output. Which PESTEL classification of these three items is the most accurate?

Wastewater norms are Legal, customer preference for sustainable garments is Social, and monsoon variability affecting cotton output is Environmental. So Legal, Social, Environmental respectively is correct, as each item matches the nature of the underlying driver.

  1. ALegal, Social, Environmental respectivelyCorrect
  2. BEnvironmental, Economic, Political respectively
  3. CPolitical, Technological, Social respectively
  4. DLegal, Economic, Technological respectively

Explanation

Discharge norms are binding regulation, so Legal. Customer preference for sustainable garments is a change in consumer values and attitudes, so Social. Monsoon variability affecting cotton is a natural-climate matter, so Environmental. Other options misplace at least one item.

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