According to the World Health Organization, 39% of adults are overweight. Over the last 40 years, the prevalence of obesity has tripled around the world. With over half of consumers drinking at least one sugary drink on a given day, regulations towards the beverage sector are likely to become increasingly onerous. In the U.K., for example, a sugar tax was introduced in 2018 on beverages containing more than 5% sugar.

Identify the related dimensions of business environment.

Social dimension and Legal dimension

The correct answer is option 1- Social dimension and Legal dimension.

The passage talks about two major changes affecting beverage companies.

Social dimension: The first is the growing problem of obesity and unhealthy lifestyles. The passage mentions that 39% of adults are overweight, obesity has tripled over the last 40 years, and many consumers regularly drink sugary beverages. These points show changes in people’s health awareness, eating habits, and lifestyle patterns. Such factors are related to the Social dimension of the business environment because they arise from society and consumer behavior.

Legal dimension: The second aspect is the introduction of the sugar tax in the U.K. in 2018 on drinks containing more than 5% sugar. This is a government rule imposed on beverage companies. The statement that regulations are likely to become “increasingly onerous” also indicates stricter laws and regulations in the future. These factors are related to the Legal dimension of the business environment because they involve government legislation and compliance requirements for businesses.

Other Options:

• Economic dimension is not the main focus here because the passage does not discuss factors like inflation, interest rates, income levels, unemployment, or economic policies affecting business activity.
• Technological dimension is not involved because there is no mention of new technology, innovation, production methods, or technological advancements.
• Political dimension is also not the primary focus. Although the government has introduced a sugar tax, the emphasis is specifically on the law/regulation itself, which falls under the Legal dimension, not on political ideology or political stability.