Socio cultural environment

This PPT is specifically for the students of BBA.

1. Socio-Cultural Environment

2. Introduction :- Culture refers to a set of beliefs, customs, practices and behavior that exists within a population group. Understanding the culture of a country and respecting its customs and traditions is of paramount importance for the success of any business.

3. Introduction (Cont.) :- Various elements of culture are:- Customs and traditions Values and beliefs Attitude Religion The cost of ignoring the above elements could be very high.

4. Components :- The Socio-Cultural Environment of International Business consists of a number of major components. Some of these components are:- Values and Beliefs Education Language Demography Female Workforce Double income Families Religion Social Organisation

5. 1. Values and Beliefs The values and beliefs are the guiding principles that dictate behavior and action. Values often have a religious foundation which fundamentally affects the beliefs and mind-sets we hold. Thus, it is very important for the firm entering the foreign nation to understand the significance of different colors and designs in different countries.

6. 2. Education The level of education affects the business in a number of ways:- Labeling of product Marketing research Relation with distributors and suppliers All these are affected by the literacy rate.

7. 3. Language Language reflects the nature and values of society. Some countries have two or three languages. Language can cause communication problems – especially in the use of media or written material. It is best to learn the language or engage someone who understands it.

8. 4. Demography The demography of a region includes population size and composition as well as key socio economic attributes such as – Age Sex ratio Family size Occupation. Demographic factor plays an important role in the success of a business.

9. 5. Female Workforce The proportion of female work-force in total work-force has a greater influence on the buying behavior and demand patterns for the products of the company. Today, due to economic empowerment, women can take their decisions independently.

10. 6. Double Income Families The large the income of a family, more will be the demand for the product. Further, the increased income leads to increase in demand for the luxury products. The proportion of double income families helps the business in deciding as to what type of products to be launched in the market.

11. 7. Religion Religion provides the best insight to the business into a society’s behavior and helps answer the question why people behave rather than how they behave.

12. 8. Social Organization Social organization refers to the way people relate to each other. For example:- Extended Families Units Kinship In some countries, kinship may be a tribe and so segmentation may have to based on this.

13. Conclusion :- Socio-cultural environment is the important determinants of human behavior. All the culture and sub-cultural elements influence the decision making process and the buying habits of customers.

14. Submitted To:- Miss. Abhilasha Gupta Submitted By:- Damanpreet Singh 4032/18