US CMA Part 1 · Chapter 2 · Question 3 of 30
A software company performing a PEST analysis notes that new data privacy legislation will restrict how it may use customer data. Under which heading does this factor belong?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Political (including legal and regulatory) factors
Explanation
PEST analysis groups external macro-environmental factors into political, economic, social and technological categories. Government legislation and regulation fall under political (sometimes separately labeled legal) factors.
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