Social Factors Affecting the Business Enviroment and People Around It
1625 words 7 pagesSocio-Cultural Factors
Socio-cultural is based on the idea that the society and culture shape cognition. Social customs, values, beliefs and language are all part of what shapes a person’s identity and reality. According to this approach, what a person thinks is based on his or her social-cultural background. There are many factors which affect the organizations either internally or externally. These factors include demography, cultural values, changing roles of women, level of education, changing lifestyle and so on. They play a big part in shaping the organisation in terms of its roles, operation and functions that are practiced within the organisation.
Education and Language
The average level of education in a society …show more content…
According to http://www.merriam-webster.com/dictionary/demographic, as we are all aware of the meaning of demographic, it simply relates to the dynamic balance of a population especially with regard to density and capacity for decline.
The demographic changes are very important in the business world today. They are very important in a way that they affect organization markets. Some markets may decline while others may rise.
There are a few demographic variables that affect organizations which include population, life expectancy, population age groups, birthrate or death rate, proportion of gender, different racial, religious and ethnic groups, etc. It is a much broader term with the variable factors but we have chosen population age group to discuss.
Population age group is an important factor affecting any organization. Organizations must provide for different population age groups at all times. There are the different age groups ranging from children, teenagers, young adults, adults and elder people. These groups have different buying power as well. An example is the increase in the market of technological products for the young age group while to the older age group it is a decline for organizations to consider. The young age have a higher buying power than the old age group which