The CEO's email clearly identifies three distinct elements of the PESTLE framework. The discussion about competitor costs, component prices from suppliers, and rising energy bills directly addresses Economic factors. The directive to review the biodegradability of packaging, social responsibility regarding sustainability, and the use of natural resources falls squarely under Environmental concerns. Finally, the need to revisit employment regulations, specifically changes to pension rules and paternity/maternity rights, is a direct reference to the Legal environment in which the firm operates. These three factors are explicitly mentioned as external influences requiring action.

A. This option omits the explicit Economic factors (costs, pricing) and includes Political, which is less direct than the Legal regulations mentioned.

C. This option incorrectly includes Technological. The email refers to the company's own technology, not external technological trends impacting the business.

D. This option correctly identifies Economic and Legal factors but omits the very clear and explicit Environmental concerns about packaging and sustainability.

---

1. Paul, D., Cadle, J., & Yeates, D. (2014). Business Analysis (3rd ed.). BCS, The Chartered Institute for IT.

Chapter 4, Section 4.3.2, PESTLE analysis: This section defines the components of the PESTLE framework.

Economic: "The economic environment will constrain the organisation... This includes the cost of energy..." (aligns with energy costs).

Environmental: "This area concerns the environmental issues that are relevant to the organisation... for example, the sustainability of the resources it uses and the waste products it creates." (aligns with biodegradability and natural resources).

Legal: "This area covers the legal constraints on the organisation. This includes... employment law..." (aligns with pension and maternity/paternity rights).

2. Aguilar, F. J. (1967). Scanning the Business Environment. Macmillan.

This foundational text on environmental scanning categorizes external information into economic, technical, political, social, and legal domains. The email's content maps directly to the economic (costs), legal (regulations), and what would now be termed environmental (sustainability as a social/physical environment issue) categories described. This work is the academic precursor to the modern PESTLE framework.

3. Oxford Brookes University. (n.d.). PESTLE analysis.

In its guidance for business students, the university defines the PESTLE elements. It specifies that Legal factors include "employment law," Environmental factors include "sustainability" and "waste disposal," and Economic factors include "costs" and "competitor pricing." This academic definition directly supports the mapping of the email's content to the elements in option B.