7 - Social & Technological

Question 1

What Is Technological Change?
(2 Points)

Answer 1

~ Ongoing development of invention, innovation and sharing of technology or processes.

~ Spreading of technological change through society that impacts upon business behaviour.

Question 2

What Are The Opportunities Of Technological Change?
(4 Points)

Answer 2

~ Ability to communicate easier and more efficiently, due to technological advancements.

~ Capital improvements, leading to more choice and quality.

~ Automation from labour to capital, improving long term efficiency of a business.

~ New technologies can give a business first mover advantage, allowing them to price skim.

Question 3

What Are The Threats Of Technological Change?
(3 Points)

Answer 3

~ Reduced barriers to entry, leading to increased competition which could affect certain businesses.

~ Ongoing costs to keep up with trends. E.g. Security teams to keep up with fraud and data protection.

~ Switch from labour to capital, leading to labour striking which could decrease productivity.

Question 4

What Is The Social Environment Influenced By?
(2 Points)

Answer 4

~ The make up of humans within a specific area or business.

~ Influencing the behaviour of businesses and customers.

Question 5

What Does Social Change Include?
(6 Points)

Answer 5

~ Demographic change and population change.

~ Changes in consumer lifestyles.

~ Growth of online businesses.

~ Growing importance of CSR.

~ Switch from a shareholder concept, towards a stakeholder concept.

~ Need to consider Carrols CSR pyramid.

Question 6

Describe ‘Demographic Change & Population Change’ As A Social Change
(5 Points)

Answer 6

~ Includes urbanisation, which is the shift in population from rural to urban areas.

~ Includes migration, which is the movement in population from one country to another.

Both Of These Provide:
~ New opportunities to a business.

~ Extra demand, into the areas that people have moved.

~ Changes the size of the labour force in particular area.

But:
~ It can put pressure on infrastructure. E.g. Increased traffic congestion.

Question 7

Describe ‘Changes In Consumer Lifestyles’ As A Social Change
(4 Points)

Answer 7

~ There is more consideration for ethics and the environment in purchases.

~ Increased use of social media, meaning more purchases relating to and within social media.

~ Diet changes, more people eating in and out due to delivery apps.

Businesses Have Adapted By:
~ Viral marketing, increased use of social media and emotional branding via big data usage.

Question 8

Describe ‘Growth Of Online Businesses’ As A Social Change
(5 Points)

Answer 8

~ Growth of the internet and busier lifestyles, have lead to more demand for products online.

~ This has lead to more focus, such as digital marketing.

~ Online access has transformed a range of markets, helping cut costs and providing a range of products.

~ Has also provided information symmetry.

Question 9

What Is CSR?
(4 Points)

Answer 9

~ Corporate social responsibility.

~ The responsibilities of an organisation to put initiatives in place to benefit society.

~ E.g. To benefit environment, customers, employees and local communities.

~ Based on the idea that the needs of business and society are interdependent. E.g. Society needs business and business needs society.