CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: External Environment
Aarav Retail, a Delhi chain, is studying how rising urban household incomes, growing preference for online shopping among young consumers, and increased smartphone penetration affect it. A manager wants to separate purely social factors from technological factors. Which of the following is a social factor?
The growing preference for online shopping among young consumers is the social factor, since it reflects changing lifestyles, tastes and demographics. Smartphone penetration, 5G networks and warehouse robotics are technological developments rather than social ones.
- AIncreased smartphone penetration across cities
- BGrowing preference for online shopping among young consumersCorrect
- CIntroduction of faster 5G network technology
- DAutomation of warehouse operations using robotics
Explanation
Changing consumer preferences and lifestyle patterns are social factors. Smartphone penetration, 5G and warehouse robotics are technological developments. Rising household income would be economic, but it is not among the options.
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