ExpertHard4 marksMultiple Choice
ACCA · Question 47 · Syllabus A: The business organisation and its external environment
SCENARIO: 'Agri-Tech Solutions' is expanding to a new continent. They face a new government carbon tax, a competitor launching a patented harvesting drone, a government regulator demanding compliance reports, and the central bank raising interest rates.
Match the following 4 tasks to their correct classifications:
- The PESTEL factor for the new carbon tax.
- The Porter's force for the competitor's patented drone.
- The Mendelow matrix classification for the government regulator.
- The economic policy type of the central bank raising interest rates.
Which option represents the correct combination?
SCENARIO: 'Agri-Tech Solutions' is expanding to a new continent. They face a new government carbon tax, a competitor launching a patented harvesting drone, a government regulator demanding compliance reports, and the central bank raising interest rates.
Match the following 4 tasks to their correct classifications:
- The PESTEL factor for the new carbon tax.
- The Porter's force for the competitor's patented drone.
- The Mendelow matrix classification for the government regulator.
- The economic policy type of the central bank raising interest rates.
Which option represents the correct combination?
Answer options:
A.
1-Legal, 2-Substitutes, 3-Keep Satisfied, 4-Monetary
B.
1-Environmental, 2-Barriers to Entry, 3-Key Player, 4-Monetary
C.
1-Economic, 2-Supplier Power, 3-Keep Informed, 4-Fiscal
D.
1-Environmental, 2-Barriers to Entry, 3-Key Player, 4-Fiscal
How to approach this question
Break down the scenario into 4 parts. 1: Carbon tax (Environmental/Economic). 2: Patent (Barrier to entry). 3: Regulator (High power, high interest = Key Player). 4: Interest rates (Monetary).
Full Answer
B.1-Environmental, 2-Barriers to Entry, 3-Key Player, 4-Monetary✓ Correct
1. Carbon taxes are primarily Environmental (driving green behavior) or Economic. 2. Patents create high Barriers to Entry (Threat of New Entrants). 3. Regulators have high power to shut you down and high interest in compliance, making them Key Players. 4. Central banks manipulate interest rates, which is Monetary policy.
Common mistakes
Confusing Monetary and Fiscal policy for task 4.
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