305 PEST factors (social)

Question 1

what is democratic change

Answer 1

• refers to changes in the population size and characterises in the population

Question 2

what are some democratic/lifestyle changes that affect business activity

Answer 2

• society is becoming health conscious- demand for healthy food and fitness increased
• attitudes towards becoming more environmentally friendly
• increase in economically active women over the last century- industries such as childcare booming

Question 3

democratic change (ageing population)

Answer 3

• ageing population can be opportunity for businesses because holiday companies may benefit from increased number of people with free time and savings to spend on luxury items such as holidays (+)
• (-) however this could provide threats to technology based companies such as social media outlets as they may need to invest in adapting their offering to suit the ability oof the older population using technology

Question 4

democratic chnage (high levels of migration)

Answer 4

• (+) it can be an opportunity to supermarkets because they have an increased demand for diverse products- reach a wider customer base
• (-) this could provide a threat to the government because they have more people to look after and they wil have to invest more in public service to met the needs of everyone- higher spending

Question 5

democratic change (increased demand for flexible working practice)

Answer 5

• (+) it can benefit software companies because it boosts demand for remote work solutions eg. teams
• (-) poses a threat to commercial real estate companies because fewer businesses need large office space- lower demand for offices

Question 6

democratic change (increase in health consciousness)

Answer 6

• (+) benefits food product companies- diversify product portfolio to sell organic , plant based extracts- increases demand
• (-) threat to fast food companies - declined demand for fat, high sugar meals

Question 7

democratic change (desire to be more environmentally friendly)

Answer 7

• (+) benifits suppliers because being environmentally friendly is expensive for business will be willing to pay more
• (-) threat to fast fashion consumers aware of their negative environmental impact

Question 8

LTQ (1)

Answer 8

therefore customers should benefit from business keeping up with social changes like ethics as they are likely to buy better quality products.
however it depends on brand loyalty because it is usually accompanied by a prise increase by the business, if the business does not have the brand loyalty , they would loose customers

Question 9

lTQ (2)

Answer 9

therefore, increased population size (perhaps due to increased migration) can increase demand business placed on suppliers- increasing revenue
however, it depends in capital available to said supplier because if they don’t have the budget- unable to meet demand