Unit 7 - Section 6: Analysing the external environment – social and technological change Flashcards
Demography
The study of human populations including their size, growth rates and movements
Migration
The movement of people between countries or regions
Urbanisation
Movement of people from the countryside to live in cities
Corporate social responsibility
The duties of business has towards all stakeholders
Carols social responsibility pyramid
Corporate social responsibility involves conduct of the business so that it is economic li profitable law-abiding ethical and socially supported. Carol produced a pyramid that identifies the different types of obligations that society expects of a business
Economic responsibilities
These include providing rewards to the owners, paying employees fairly and selling products at a fair price to consumers. A business has an economic responsibility to survive
Legal responsibilities
This means that businesses should follow the law and not act illegally
Ethical responsibility
The business will have responsibilities over and above the legal requirements. Managers may decide to do the right thing
Philanthropic responsibilities
This focuses on businesses actively trying to help society, for example, improving the quality of each employees working life
Impacts on firms of demographic change
Costs of production (due to changes in the labour force)
Demand for products (due to changes in the structure and size of target markets)
Key UK changes
UK population is growing quickly since 1964 by over 10 million with the rate increasing significantly since 2001
UK population is ageing by 2045 there will be more than 10 million people over 75 years old (twice as many eight and 2015)
Both changes mean families will have more layers, but fewer people in each generation
Likely impacts of demographic changes
Labour market Effects:
Ageing workforce who are prepared to work longer in their lives
Ageing workforce may prefer working part time and more flexible employment
Lots of younger workers who will need training
Effects on demand:
More goods and services in total will be demanded
Different types of products will be needed, those that target the you and elderly in most demand
Fewer people in full time employment may be greater demand for leisure products
Retail trends
Chinese demand is growth opportunity
Technology/the Internet is demanding
Brexit uncertainty has dented consumer confidence
Customers are much more concerned about social issues
Flagship/experimental stores is how to invest
Focus on sustainability
Promotion is using social media as the new shop window
Rising costs particularly for bricks and martar
Benefits of corporate social responsibility
Positive image – more sales Good media image – free advertisement Attract ethical investors Cutting waste will out costs May be able to reach new markets through partnerships with charities Attracting employees Sustainability
Problems of corporate social responsibility
A lot of costs
Time-consuming
How to measure success
May stop product improvements/innovation if any aspect in-ethical
Question is how effective a good initiatives
If you claim to be faultless the media will search for blemish
Businesses corporate social responsibilities to the government
Payback any loans/guilts
Pay tax
Abide by laws and regulations
Provide jobs - Stop unemployment as it costs government money
Businesses social corporate responsibilities to customers
Provide good products and services Offer good customer service Needs of customers After sales service Information Advice Reputation
Businesses corporate social responsibilities to supplies
Make sure to pay them on time Loyalty Revenue Feedback Research
Businesses corporate social responsibilities to employees
Satisfaction in the workplace Perks and benefits Safety Job security Pay Working conditions Promotions Information
Businesses corporate social responsibilities to society
Keep up with the trends
Sustainability
Good ethics
Information
Business corporate social responsibilities to owners (shareholders)
Dividends
Information
Reputation
Ethics
Businesses corporate social responsibilities to competitors
Tough competition (having high quality/low prices)
Behaving fairly
Innovation
The impact of technology – the creation of the markets
Mobile technology and M - commerce Health technology (Fitbit) The cloud E-commerce Big data Social media 3-D printing Artificial intelligence
Technology and marketing activities
Short life cycles
Higher prices – price skimming
Lower promotional costs e.g Social media, targeted towards people wanted no wastage
Technology and promotion
Direct marketing easier
Big data – companies store lots of info
Social media
Technology and pricing
Surge pricing: e.g Uber setting a price dependent on how many people in the area
Dynamic: e.g Amazon setting a price on how many people have viewed particular products price goes up when demand goes up
Technology and operations
Reduction in unit costs e.g better machinery, stock management, communications and replacement of expensive human labour may all contribute 3-D printing for example
Pure play business like Uber or ASOS only use tech
Technology and finance
Crowdfunding: the practice of funding a product or venue by raising monetary contributions from large number of people, today often perform via Internet – mediated registries
Technology and communication
Cloud computing
Intranets
Internet of everything
Technology and production
CAD – computer aided design
CAM – computer aided manufacture e.g 3D printing
