AQA A-LEVEL BUSINESS Paper 2
Business 2 7132/2 MAY 2024
Combined Question Paper and Mark
Scheme
1. PESTLE Analysis of EcoTech Ltd.
A PESTLE analysis helps to identify and evaluate
the external factors that might influence EcoTech’s
business environment. Here’s how the company
could be impacted by each factor:
Political
• Government Support for Green Products:
Many governments are offering subsidies, tax
breaks, or regulations that encourage businesses
to produce environmentally friendly products.
EcoTech could benefit from these policies.
• Trade Regulations: As EcoTech is expanding
internationally, it needs to consider
import/export duties and trade policies in
, markets like Europe and North America.
Political stability in these regions also affects
their supply chain and market accessibility.
Economic
• Rising Costs: As mentioned in the case study,
rising raw material prices and wage increases
could significantly impact EcoTech’s
profitability. The company may have to raise
prices or find ways to reduce production costs.
• Recession Risk: Economic downturns or
inflation could impact consumer spending.
Luxury or non-essential eco-friendly products
might see a decrease in demand if consumers
tighten their budgets.
Social
• Consumer Preferences: Growing awareness of
climate change and sustainability means more
consumers are looking for eco-friendly
alternatives. EcoTech is well-positioned in this
regard, but it must ensure that its products meet
consumer expectations for performance and
price.
Business 2 7132/2 MAY 2024
Combined Question Paper and Mark
Scheme
1. PESTLE Analysis of EcoTech Ltd.
A PESTLE analysis helps to identify and evaluate
the external factors that might influence EcoTech’s
business environment. Here’s how the company
could be impacted by each factor:
Political
• Government Support for Green Products:
Many governments are offering subsidies, tax
breaks, or regulations that encourage businesses
to produce environmentally friendly products.
EcoTech could benefit from these policies.
• Trade Regulations: As EcoTech is expanding
internationally, it needs to consider
import/export duties and trade policies in
, markets like Europe and North America.
Political stability in these regions also affects
their supply chain and market accessibility.
Economic
• Rising Costs: As mentioned in the case study,
rising raw material prices and wage increases
could significantly impact EcoTech’s
profitability. The company may have to raise
prices or find ways to reduce production costs.
• Recession Risk: Economic downturns or
inflation could impact consumer spending.
Luxury or non-essential eco-friendly products
might see a decrease in demand if consumers
tighten their budgets.
Social
• Consumer Preferences: Growing awareness of
climate change and sustainability means more
consumers are looking for eco-friendly
alternatives. EcoTech is well-positioned in this
regard, but it must ensure that its products meet
consumer expectations for performance and
price.
