Social Factor Flashcards
What is the social factor?
Social factor concern the ways in which society changes and the need for businesses to adapt in the same way.
What is UK ageing population?
Positive:
- This is a vast, and growing, market segment. Businesses that can produce products tailored for this market should succeed. Many potential customers in this segment are retired and well off so there is potential to offer quality products at high prices.
Negative:
- Extensive market research must be carried out which costs time and money.
What is more women with professional careers?
Positive:
- As more women are taking up high-profile professions and managerial roles they are waiting longer to have a family. As a result, couples are generally better off when they have their first child so businesses can offer high-quality maternity and baby products that sell for a high price.
Negative:
- More women will be taking maternity leave once they are established in their careers which will mean organisations have to consider flexible working arrangements, such as part-time or job share. This will result in the organisation having to spend more time recruiting and training replacement staff.
What is evolving work-life balance?
Positive:
- Fewer employees are working the traditional 9-5 working week. As a result, businesses must cater for the needs of a society that works around the clock for 7 days a week. This has led to a trend of convenience in the UK, e.g. 24-hour opening hours, e-commerce, etc. By meeting the convenience needs of customers businesses will ensure repeat custom.
Negative:
- Organisations have to provide more staff to work 24 hour a day, 7 days a week to meet customer needs, which will increase wage costs.
What is changing fashion trends?
Positive:
- Businesses can cater for the latest fashion trends and offer products that customers want, therefore increasing sales. For example, the North Face or Supreme clothing trend.
Negative:
- Businesses have to spend time and money researching and developing new products. Some products also have very short shelf-life.
What is flexible working arrangements?
Positive:
- Flexible working arrangements mean staff will be able to work as a time when they are most productive, which will improve quality in the organisation as well as raise morale. Additionally, businesses can save money on renting office space if more employees work from home.
Negative:
- Flexible working arrangements can lead to a lack of supervision and direction of staff, which can reduce productivity. Organisations may also have to provide staff with equipment such as smartphones and laptops so they can work at home, which can be costly.
What is ethical consideration?
Positive:
- Businesses that practice ethically (doing what is right) will be seen in good light by customers, prospective employees, suppliers and the government. An example would be not exploiting child labour.
Negative:
- Often unethical practice is carried out purely to keep costs low so operating ethically will increase cost and perhaps, reduce overall profits. Of course, a bad image from operating unethically could affect sales anyway.
