Social and cultural factors affecting business

Social and cultural factors affecting business include belief systems and practices, customs, traditions and behaviours of all people in given country, fashion trends and market activities influencing actions and decisions. Socio-cultural perspective is one of the most important factor influencing decision of marketing managers and strategic goals of companies entering new foreign markets. It should be noted that legal factors affecting business is also considered as one of the major socio-cultural factors that can influence companies. Proper identification of this factor during strategic analysis (PEST analysis, STEEP analysis, SWOT analysis, TOWS analysis) could lead to better strategic alignment of company to society (during international development).

Social factors affecting business

• Social classes can have a significant impact on a society, shaping access to opportunities and resources, as well as influencing political and cultural norms.
• The average disposable income level can vary greatly between countries and within countries, and can be influenced by factors such as overall economic conditions and individual earning potential.
• The wealth of people can be measured by a variety of factors, including income, assets, and net worth, and can vary greatly between individuals and groups.
• Economic inequalities refer to the unequal distribution of wealth, income, and opportunities within a society, which can lead to disparities in access to resources and opportunities.
• The level of education can vary greatly between countries and within countries, and can be influenced by factors such as access to education and government investment in education.
• Access to education can be determined by whether it is free or paid, and can impact individuals' opportunities and overall societal development.
• The level and access to healthcare can vary greatly between countries and within countries, and can be influenced by factors such as government funding and private healthcare options.
• Health consciousness in society can include factors such as smoking, drinking, drug use, and safe driving habits, and can be influenced by individual and societal attitudes towards health and well-being.
• Buying habits and consumer preferences can vary greatly between individuals and groups, and can be influenced by factors such as income, culture, and personal values.
• The average retirement age can vary greatly between countries and within countries, and can be influenced by factors such as government policies and individual career paths.
• The personality of the average consumer can vary greatly and can be influenced by factors such as individual values, experiences, and beliefs.
• The reputation of a company in society can impact consumer trust and loyalty, as well as overall business success.
• Conflicts within society can include issues such as inequality, political differences, and social injustice, and can impact individuals' lives and overall societal dynamics.
• Susceptibility to influence can vary greatly between individuals and can be influenced by factors such as personal values, beliefs, and experiences.
• Social organization can include various forms of communities, social groups, gangs, and ad-hoc gatherings, and can impact individuals' access to resources and opportunities.
• Uncertainty avoidance can be a dominating factor in a society and can impact individuals' and groups' attitudes towards risk, change, and innovation.

Cultural factors affecting business

• Fashion trends can reflect current cultural values and influences, and can vary greatly over time and between different groups.
• Lifestyle can encompass a wide range of factors including work-life balance, leisure activities, and consumption patterns and can vary greatly between individuals and groups.
• Social media and traditional media can have a significant impact on shaping public opinion and can vary in their reach and influence depending on the society and culture.
• The dominant communication technology in social groups can vary, but can include things like social media, texting, and messaging apps, and can shape how people interact and communicate.
• Participation in cultural events can vary greatly between individuals and groups and can be influenced by factors such as access to events, personal interests and cultural background.
• Willingness to pay for tickets for cultural events can vary greatly and can be influenced by factors such as disposable income, personal interests, and cultural background.
• Popular actors, music styles, and design forms can reflect current cultural values and influences and can vary greatly over time and between different groups.
• Creativity of people can vary greatly and can be influenced by factors such as access to resources, cultural background, and personal experiences.
• The relative population of local vs. global imported culture can vary greatly and can be influenced by factors such as access to resources, cultural background, and personal experiences.
• Various other determinants of culture can include things like language, religion, and economic conditions, and can shape the development and expression of a culture over time.

Socio-cultural factors and demography

• population growth rate: The rate at which a population increases or decreases over time.
• birth control regulations and incentives: Government policies and programs that aim to control the population by regulating or encouraging the use of birth control methods.
• age distribution: The proportion of people in different age groups in a population, which can impact demand for goods and services.
• life expectancy rate: The average number of years a person can expect to live, which can affect a society's overall health and well-being.
• sex distribution: The ratio of men to women in a society, which can impact social norms and gender roles.
• average family size and family structure: The number of people in an average family and the makeup of that family, which can affect social dynamics and economic patterns.
• relative influence of minorities in society: The degree to which minority groups are represented and have influence in society, which can impact social and political issues.
• immigration rate: The rate at which people move into a country, which can affect the population's diversity and impact labor market.
• emigration rate: The rate at which people leave a country, which can affect the population's skill level and impact labor market.
• social diversity: The range of differences within a population in terms of income, education, race, gender, etc., which can impact social dynamics and cultural norms.

Beliefs and value systems within society

• majority and minority religions: The religions that are most widely practiced within a society, as well as any minority religions that are present.
• influence of religious leaders on social behaviours: The extent to which religious leaders and institutions shape and guide social norms and behaviours within a society.
• role of religion as a binding/dividing factor in society: Whether religion serves as a unifying force or a source of division within a society.
• dominant beliefs in society: The widely held beliefs and values that shape a society's culture and worldview.
• eating habits connected with religion: The ways in which religious beliefs and practices influence the food that is consumed within a society.
• belief in superstitions (Friday 13th, 13th floor in buildings, etc.) and myths: The extent to which people believe in and act on superstitions and myths within a society.
• role of science in relation to religion: The relationship between scientific knowledge and religious beliefs within a society.
• customs, traditions during holidays (worship days): The ways in which religious holidays and observances shape customs and traditions within a society.

Common attitudes in society

• attitudes toward banking, saving money and investing: The general perspective and behaviors of individuals and society towards financial institutions, saving and investing money.
• attitudes toward ecological products, recycling, global warming, etc.: The general perspective and behaviors of individuals and society towards environmental issues, conservation and sustainable living.
• attitudes toward renewable energy sources, green products: The general perspective and behaviors of individuals and society towards energy sources that are considered renewable and environmentally friendly products
• attitudes toward imported products and services, foreign [[investments]], etc.: The general perspective and behaviors of individuals and society towards products and services that are imported and foreign investments.
• attitudes toward work and career, possibility of development: The general perspective and behaviors of individuals and society towards career, job opportunities, and personal growth.
• attitudes toward leisure and retirement: The general perspective and behaviors of individuals and society towards the balance between work and leisure, and retirement.
• attitudes toward learning and self-development: The general perspective and behaviors of individuals and society towards learning and personal development.
• attitudes toward others (diverse people, countries, companies, etc.): The general perspective and behaviors of individuals and society towards other people, countries, companies, etc.
• attitudes toward safety (police, military, etc.) and privacy: The general perspective and behaviors of individuals and society towards safety, privacy, surveillance and security.
• attitudes toward ethical/unethical behaviours and Corporate Social Responsibility: The general perspective and behaviors of individuals and society towards ethical and responsible behaviours and corporate social responsibility.
• attitudes toward management practices (negotiation, business activities, etc.): The general perspective and behaviors of individuals and society towards management practices, negotiation, and business activities.

Check also other:

• Technological factors affecting business
• Economic factors affecting business
• Ecological factors affecting business
• Political factors affecting business
• Legal factors affecting business
• Ethical factors affecting business

Social and cultural factors affecting business — recommended articles

Tourism and hospitality — Examples of opportunities — Economic factor — Economic factors affecting business — Business tourism — Non-profit organization — Global interdependence — Factors affecting business — External environment

References

• Bhaskaran, S., & Sukumaran, N. (2007). National culture, business culture and management practices: consequential relationships?. Cross Cultural Management: An International Journal, 14(1), 54-67.
• Cochran, T. C. (1960). Cultural factors in economic growth. The Journal of Economic History, 20(04), 515-530.
• Grayson, D., & Hodges, A. (2007). Corporate social opportunity! Seven steps to make corporate social responsibility work for your business.
• Pearce, J. A., Robinson, R. B., & Subramanian, R. (2000). Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill.
• Schepers, P., & Van den Berg, P. T. (2007). Social factors of work-environment creativity. Journal of Business and Psychology, 21(3), 407-428.
• Thornton, P. H., Ribeiro-Soriano, D., & Urbano, D. (2011). Socio-cultural factors and entrepreneurial activity: An overview. International small business journal, 0266242610391930.

Author: Krzysztof Wozniak