CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: External Environment
Aarav Foods, an Indian packaged-snacks firm, observes that consumers are shifting from fried to baked snacks owing to health awareness, and that urban working couples prefer ready-to-eat products. Which component of the external environment does this scan primarily address?
The scan addresses socio-cultural factors in the macro-environment. Shifting consumer preferences towards healthier baked snacks and ready-to-eat products arise from lifestyle, health awareness and demographic changes in society, which are external trends the firm cannot control but must respond to.
- ASocio-cultural factors within the macro-environmentCorrect
- BTechnological factors within the micro-environment
- CLegal factors within the internal environment
- DEconomic factors within the industry environment
Explanation
Changing lifestyles, health awareness and household work patterns are social and cultural trends, part of the macro (general) environment. They are not technological or legal in nature, and they are external, not internal.
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