CA Inter P6 · Chapter 11 · Question 1 of 11
A new law requires all e-commerce companies to store customers' personal data within the country and obtain explicit consent before using it. In a PESTLE analysis, this is mainly classified as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Legal factor
Explanation
PESTLE groups macro-environmental influences into Political, Economic, Social, Technological, Legal and Environmental factors. A statutory requirement on data storage and consent is a legal factor. The technology needed to comply is a consequence, but the driver is the law.
More Strategic Analysis: External Environment MCQs
- Q3In Porter's five forces model, the threat of new entrants into an industry is LOW when:
- Q4The bargaining power of suppliers in an industry is likely to be HIGH when:
- Q5Large retail chains buying standardised packaged rice from many small millers are likely to have high bargaining power mainly because:
- Q6For domestic airlines, the growing use of high-quality video conferencing by corporate clients instead of travelling to meetings represents:
- Q7Rivalry among existing competitors tends to be MOST intense when: