Topic 2C: Social Factors

Question 1

What are the two ways in which organisations are affected by social and demographic factors?

Answer 1

a.) The population affects the organisation supply of labour and hence its policies towards recruiting and managing human resources.
b.) Social and demographic factors influence the buying power of individuals and households.

Question 2

What does the organisation need to take into account when considering the social impact on labour force?

Answer 2

a.) What skills do we need?
b.) What skills are available? (internally and externally)
c.) How does the education system contribute to or labour supply

Question 3

What does the organisation need to take into consideration when thinking about the social impact on buying behaviour?

Answer 3

a.) Growing markets (e.g. for sports related goods or holidays for senior citizens)
b.) Employee health and its impact on employer’s productivity
c.) Declining markets for unhealthy products
d.) Customers switching to products that conform to their beliefs (e.g. switching to electric cars to reduce carbon emissions)
e.) More flexible working hours