Social, technological and environmental factors Flashcards
Demographics
composition of population in any given area
population size
population growth/decline is result of a combination of factors, birth/death rates, immigration/emmigration etc..
it signals a growing market for businesses
population composition
age of population
population location
space is a premium in cities, businesses that offer space-saving furniture (etc…) are likely to see increasing D for thi products
wealth
economic growth equals higher disposable incomes for the population –> increased D for products
education
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
health
population is becoming more overweight in Western countries so this places greater D on health care providers
social trends
examines how society changes over time
social structure
related to concept of social class (group of people who have the same social, economic or educational status)
social values
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
attitudes
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.
tastes
individual’s personal preferences/patterns of choice
environmental factors
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
how does an organisation impact on environment?
- 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
how environment impacts on organisation
- 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
3 ways that business can limit damage to environment
- redesign products to use fewer raw materials
- reduce packaging
- recyle
sustainability
organisations should use resources in a way that they do not compromise needs of future generations
how are workers/local community benefitted by sustainability?
reduced waste and pollution leads to more pleasant and healthier environment
how are customers benefitted by sustainability?
look at businesses as being more ethical so prefer dealing with them
how are shareholders benefitted by sustainability?
reducing waste and better efficiency can improve business profits –> higher long term returns for investors
how are public benefitted by sustainability?
reduced pollution leads to fewer environmental problems
4 ways technological changes affect firms:
- organisational structures
- product development
- production changes
- marketing
technological change impact on organisational structure:
admin and managerial roles replaced by more effective IT systems
fewer employees needed at operational level
improved communications mean employees can WFH
technological change impact on products
allows products to become more sophisticated
business models become transformed
