Give one example showing that both economic and social factors can affect business idea together?
Answers
There is no doubt that the society is continually changing. The tastes and fashions are a great example of this change. One of the most significant differences is the growing popularity of social media. Social networking sites like Facebook have become very popular among the younger people. The young consumers have grown used to mobile phones and computers.
The younger generation prefers to use digital technology to shop online. Older people will perhaps stick to their traditional methods. The effect of changing society is an often discussed. You must also understand that these changing factors have a toll on businesses too. Changes in the social factors can impact a firm in many different ways...
Companies often focus on these changes in depth. To do so, they employ environmental analysis such as PEST analysis. STEP is a variation of PEST. Extended versions include PESTLE, STEEP and STEEPLE analysis. The “S” in all these analyses indicates social or socio-cultural factors. Other factors you should assess are political, economic, technological, environmental, ethical and legal.
Businesses choose an environmental analysis depending on the nature of operations. However, all of them study the social factors.
In the social step for these analyses, you have to look carefully at the social changes. You will also have to look into the cultural changes which take place in your business environment. Market research is a critical part of this step. It is vital to see the trends and patterns of the society...
To understand the impacts better, you might need to study the factors in details. Most companies analyze the population growth and age structure. They also show interest in consumer attitudes and lifestyle changes. Your analysis can show if there are faults in your marketing strategy. It can also help find new ideas.
Below is a list of social factors which impact customer needs and size of markets:
# Lifestyles
# Buying habits
# Education level
# Emphasis on safety
# Religion and beliefs
# Health consciousness
# Sex distribution
# Average disposable income level
# Social classes
# Family size and structure
# Minorities
# Attitudes toward saving and investing
# Attitudes toward green or ecological products
# Attitudes toward for renewable energy
# Population growth rate
# Immigration and emigration rates
# Age distribution and life expectancy rates
# Attitudes toward imported products and services
# Attitudes toward work, career, leisure and retirement
# Attitudes toward customer service and product quality
The social aspect focuses on the forces within the society. Family, friends, colleagues, neighbors and the media are social factors. These factors can affect our attitudes, opinions and interests. So, it can impact sales of product and revenues earned....
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