Medium2 marksMultiple Choice

ACCA · Question 01 · Syllabus A: The business organisation and its external environment

Section A

AstroDyne is a commercial space-tech startup developing low-earth orbit satellite deployment systems. Recently, international space regulatory bodies proposed a new treaty mandating strict 'space debris' mitigation protocols, which will significantly increase AstroDyne's R&D costs. Under the PESTEL framework, how should this development be primarily classified?

Answer options:

A.

Technological and Economic

B.

Political and Social

C.

Legal and Environmental

D.

Economic and Environmental

How to approach this question

Identify the source of the change (a treaty/regulation = Legal) and the subject matter of the change (space debris/pollution = Environmental).

Full Answer

C.Legal and Environmental✓ Correct
In the PESTEL framework, new treaties and mandatory protocols fall under Legal factors. The focus on mitigating debris (pollution in space) aligns with Environmental factors. Therefore, this is a combined Legal and Environmental pressure.

Common mistakes

Students often select 'Technological' because the company is a space-tech firm, ignoring the actual nature of the specific pressure described.

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