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    PracticeACCAACCA BT — Business & Technology Practice Exam 2Question 47
    Medium4 marksMultiple Choice
    Syllabus A: The business organisation and its external environmentSyllabus APESTELMendelowSection B

    ACCA · Question 47 · Syllabus A: The business organisation and its external environment

    [Section B - MTQ] SCENARIO: 'SunWind Solutions' is a renewable energy startup based in Europe. They are planning to expand operations into a developing nation in South America. The board has conducted a PESTEL analysis and a stakeholder mapping exercise.

    Select the FOUR correct statements regarding SunWind's external environment and stakeholder analysis.

    Answer options:

    A.

    The host country's recent introduction of tax breaks for foreign green energy firms is a Political factor.

    B.

    The host country's inflation rate is considered a Technological factor.

    C.

    Local environmental activist groups who oppose the specific location of the solar farm due to wildlife disruption, but have no legal power to stop it, should be classified as 'Keep Informed' (Low Power, High Interest).

    D.

    The European parent company's shareholders, who demand high returns but do not vote at AGMs, should be classified as 'Key Players'.

    E.

    The host country's national grid regulator, who must approve all connections and actively monitors compliance, is a 'Key Player' (High Power, High Interest).

    F.

    The average age and education level of the local workforce is an Environmental factor.

    G.

    Fluctuations in the exchange rate between the Euro and the local currency represent an Economic factor.

    H.

    Mendelow's matrix suggests that 'Minimal Effort' should be applied to the national grid regulator.

    How to approach this question

    Evaluate each statement against PESTEL definitions and Mendelow's Power/Interest matrix.

    Full Answer

    This MTQ tests Syllabus A. Tax breaks are Political (A). Activists with no power but high interest are 'Keep Informed' (C). A regulator with approval power and active monitoring is a 'Key Player' (E). Exchange rates are Economic factors (G). The distractors incorrectly categorize PESTEL elements or misapply Mendelow's matrix.

    Common mistakes

    Classifying tax breaks as Economic rather than Political. While they have economic effects, the policy itself is Political.
    Question 46All questionsQuestion 48

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