CAF-7 · Chapter 3 · Question 5 of 15
An automobile manufacturer is shifting its entire production line from combustion engines to Electric Vehicles (EVs) due to rapidly deteriorating environmental conditions and pressure to reduce the carbon footprint. Which primary PESTEL factor is driving this strategic shift?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Ecological (Environmental) factor
Explanation
The shift is primarily driven by deteriorating environmental conditions, pollution concerns, and the need to reduce carbon footprints. These issues relate strictly to the Ecological or Environmental segment of the PESTEL framework.
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