ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Which of the following is an example of a social or demographic factor in a PESTEL analysis of a business?
A rise in the average age of the population is a demographic change, so it belongs in the social element of PESTEL. Tax rates are political, automation software is technological, and waste disposal laws are legal or environmental factors.
- AA government increase in the corporate income tax rate
- BA rise in the average age of the population in the country where the business sellsCorrect
- CThe introduction of new production automation software
- DA new law on waste disposal
Explanation
Changes in population age structure are demographic, so they fall under the social element of PESTEL. A tax rate change is political or economic, automation software is technological, and waste disposal law is legal or environmental.
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