Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

S E CTI ON 2
K APLA N PUBLISH ING 
77 
3
 
(a) 
PH is a company that runs train services between several major cities in country B. 
It is currently undertaking a strategic planning exercise for its future operations and 
has decided to analyse its external environment using a PEST analysis. 
This analysis has uncovered a number of major issues within Country B that PH needs 
to plan for, including:
 
A 
Country B’s government has announced additional expenditure on motorways 
and roads 
B 
Residents of country B are becoming more environmentally conscious 
C 
New internet systems are available that will simplify the process of booking 
train tickets 
D 
New health and safety regulations are being planned for all rail operators in 
country B 
E 
Increased congestion on the roads of country B as residents travel more 
F 
Additional one-off taxes on rail operators are being proposed in country B to 
help pay for road upgrades 
G 
Rise in the cost of repairs to trains due to a shortage of skilled labour in 
country B 
H 
New systems are to be introduced to help improve the efficiency of train 
arrivals and departures 
Required: 
Write down which four of the above statements would be most likely to be 
classified as ‘Political’ factors within a PEST analysis by selecting FOUR of the letters 
from A-H. 
(0.5 marks each, total = 2 marks) 
PH has recently had a number of problems with employees taking the company to 
court after leaving their jobs. To ensure that the company is not guilty of any 
wrongdoing, it has investigated four recent leavers and discovered the following: 
Employee 1 was employed as part of PH’s IT department. The department was 
recently reorganised and PH felt that this worker’s role was no longer needed. 
Employee 2 had originally been contracted to work 15 hours a week. Her manager at 
PH had recently insisted that she had to work 25 hours a week, which led to the 
employee resigning. 
Employee 3 recently joined a trade union. Her manager stated that this made her ‘a 
troublemaker’ and dismissed her.
Employee 4 was dismissed for no longer having the technical competence for his job 
(which had recently been significantly changed in a reorganisation of PH’s 
operations). Employee 4 had a three month notice period in his contract, but his 
manager told him he was only going to be given two weeks’ notice. 
 
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