Hard4 marksMultiple Choice

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

Scenario: EcoTransit is a public utility providing city transport. They face new emissions legislation and an aging population affecting ridership. Government regulators have high power and high interest in EcoTransit, while local residents have low power but high interest.

Identify the correct classifications for the following four tasks:
Task 1: PESTEL factor for 'new emissions legislation'
Task 2: PESTEL factor for 'aging population'
Task 3: Mendelow's matrix strategy for 'Government regulators'
Task 4: Mendelow's matrix strategy for 'Local residents'

Which of the following combinations is correct?

Answer options:

A.

1-Legal, 2-Social, 3-Key Players, 4-Keep Informed

B.

1-Political, 2-Demographic, 3-Keep Satisfied, 4-Minimal Effort

C.

1-Legal, 2-Economic, 3-Key Players, 4-Keep Satisfied

D.

1-Environmental, 2-Social, 3-Keep Informed, 4-Key Players

How to approach this question

Break down each task. 1: Legislation = Legal. 2: Population = Social. 3: High/High = Key Player. 4: Low Power/High Interest = Keep Informed.

Full Answer

A.1-Legal, 2-Social, 3-Key Players, 4-Keep Informed✓ Correct
Task 1: Legislation is a Legal factor. Task 2: Demographics (aging) is a Social factor. Task 3: High Power + High Interest = Key Players. Task 4: Low Power + High Interest = Keep Informed.

Common mistakes

Confusing 'Keep Informed' (Low Power/High Interest) with 'Keep Satisfied' (High Power/Low Interest).

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