Question

Samarya owned an airline business with a fleet of 20 aircraft operating between Nairo and Piere. She wanted to expand the business to other parts of the country. She was concerned about the rising oil prices which would impact the costs as well as the sensitivity of the airline revenues to fluctuations in business traffic.

Identify the factor affecting the macroenvironment under PESTEL model:

Options

• Political

• Economic

• Social

• Technological

Answer 1

Economic

Explanation:

Rising oil prices and the sensitivity of airline revenues to fluctuations in business traffic are economic factors, as they directly impact costs and demand within the macroenvironment under the PESTEL model.