Social Factors – Business Environment

1481 Words Oct 30th, 2010 6 Pages
SOCIAL FACTORS – BUSINESS ENVIRONMENT

Introduction:
The main factor that affects most business is the degree of competition – how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:
Social – how consumers, households and communities behave and their beliefs.
Legal – the way in which legislation in society affects the business.
Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors.
Political – how changes in government policy might affect the business
Technological – how the rapid pace of change in production processes and
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Have a keen interest in obtaining the ‘better thing in life’.
7. Their homes serve as symbols of their achievements
8. Consumption is often conspicuous.

The Lower-Middle Class-Faithful Followers
1. Primary non-managerial white-collar workers and highly paid blue collar workers.
2. Want to achieve ‘respectability’ and be accepted as good citizens.
3. Prefer a neat and clean appearance though not styled clothing.

The Upper Lower- Class-Security Minded Majority
1. The largest social-class segment
2. Mostly blue collar
3. Strive for security
4. View work as a means to ‘buy’ enjoyment.

The Lower-Lower Class
1. Poorly educated, unskilled labourers
2. Often out of work
Not knowing the lifestyle of people in a certain society may lead to business failure. The failure of global product to enter local market frequently causes by the inappropriate of products to the needs of local people.

Social factors
The nature of goods and services in demand depends upon the changes in habits and customs of people in the society. Demand for packaged food and ready-made garment has increased in recent times. All these force the business to produce goods accordingly. So the social and cultural factors have also affected the production pattern of business. A consumer’s behaviour also is influenced by social factors, such as
Groups:-
A person’s behaviours are influenced by many small groups. Groups that have a direct influence and to which a
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