Social, technological and environmental factors

Question 1

Demographics

Answer 1

composition of population in any given area

Question 2

population size

Answer 2

population growth/decline is result of a combination of factors, birth/death rates, immigration/emmigration etc..

it signals a growing market for businesses

Question 3

population composition

Answer 3

age of population

Question 4

population location

Answer 4

space is a premium in cities, businesses that offer space-saving furniture (etc…) are likely to see increasing D for thi products

Question 5

wealth

Answer 5

economic growth equals higher disposable incomes for the population –> increased D for products

Question 6

education

Answer 6

key driver for economic growth, increasing standards of education means that consumers are more discerning but also allows expansion of high-tech businesses that need skilled staff

Question 7

health

Answer 7

population is becoming more overweight in Western countries so this places greater D on health care providers

Question 8

social trends

Answer 8

examines how society changes over time

Question 9

social structure

Answer 9

related to concept of social class (group of people who have the same social, economic or educational status)

Question 10

social values

Answer 10

accepted behaviours and norms that help bind a social group together such as:

• increasing concerns about environmental/ethical issues
• women choosing to purse careers before having children
• shift in lifestyle from ‘9-5’ working day

Question 11

attitudes

Answer 11

person’s or group’s dis/like for something such as:

• increasing willingness to seek compensation from organisations for alleged wrongs
• changes in public attitudes to waste/recycling
• people becoming more comfortable using tech.

Question 12

tastes

Answer 12

individual’s personal preferences/patterns of choice

Question 13

environmental factors

Answer 13

looks at how an organisation affects or is affected by the physical environment because companies who fail to look at this could have a strong -ve response from their key stakeholders

Question 14

how does an organisation impact on environment?

Answer 14

• manufacturing processes result in rubbish and harmful emissions
• due to inefficiencies water and raw materials could be wasted
• natural habitat could be destroyed for agricultural space
• species becoming extinct

Question 15

how environment impacts on organisation

Answer 15

• businesses with poor environmental record suffers loss of sales & customer loyalty
• lack of resources increase prices of raw materials
• changing climate makes agriculture and food production more difficult
• govt. puts in place legislations and are enforcing compliance

Question 16

3 ways that business can limit damage to environment

Answer 16

• redesign products to use fewer raw materials
• reduce packaging
• recyle

Question 17

sustainability

Answer 17

organisations should use resources in a way that they do not compromise needs of future generations

Question 18

how are workers/local community benefitted by sustainability?

Answer 18

reduced waste and pollution leads to more pleasant and healthier environment

Question 19

how are customers benefitted by sustainability?

Answer 19

look at businesses as being more ethical so prefer dealing with them

Question 20

how are shareholders benefitted by sustainability?

Answer 20

reducing waste and better efficiency can improve business profits –> higher long term returns for investors

Question 21

how are public benefitted by sustainability?

Answer 21

reduced pollution leads to fewer environmental problems

Question 22

4 ways technological changes affect firms:

Answer 22

1. organisational structures
2. product development
3. production changes
4. marketing

Question 23

technological change impact on organisational structure:

Answer 23

admin and managerial roles replaced by more effective IT systems
fewer employees needed at operational level
improved communications mean employees can WFH

Question 24

technological change impact on products

Answer 24

allows products to become more sophisticated

business models become transformed

Question 25

technological change impact on production process

Answer 25

car assembly lines become fully automated
IT systems are used for efficient scheduling and monitoring of production, resulting in lower inventory levels, higher qual. products etc..

Question 26

technological change impact on marketing

Answer 26

pricing - dynamic pricing allows to change prices in response to changes in D
promotion - use of websites such as socials
distribution - internet created an opportunity to sell direct to a wider range of potential customers
market research - greater insights to customer behaviour

Question 27

technological change impact on society as a whole

Answer 27

it’s becoming more dependant on computer and communications tech.

• ecommerce
• banking using an app
• online learning
• remote working

some industries may disappear, but new ones are emerging, employment patterns will change