"The health and fitness trend has become popular among many urban dwellers. This has created a demand for products like organic food, gyms, bottled (mineral) water and food supplements". Identify the component of the business environment highlighted in the aforesaid statement.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Social environment
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The statement highlights changes in lifestyle, attitudes, and preferences of people (urban dwellers focusing on health and fitness).
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This is a part of the social environment, which includes cultural values, traditions, demographics, lifestyles, and social trends.
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Economic environment → Refers to income, inflation, interest rates, etc.
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Technological environment → Relates to innovations and advancements in technology.
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Political environment → Refers to government policies, stability, and regulations.