Global Business Environment
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Chapter 7 : Social Environment - Society
Society
Social class
Characteristics
of social class
Group
Family Functions of family
Family life
cycle
Demographic issues
Population growth and changing age
structure
Global environment policy and management issues
Issues
concerning the environment
Managing the Environment.
Chapter Summary
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When a firm operates in an international business
environment, as an individual is bound by the society in which he lives, it
needs to understand the importance of society. Social class is an important part
of the society. In most western societies, these classes are classified as
upper, middle and lower. The level of perception of each class and their
frequency of buying goods differ from one country to another.
In countries like India perception and trends of the consumers have been
changing owing to the liberalization and the changes in lifestyles. Another
important aspect of society is the group. The performance of groups differs in
individualistic and collectivist societies.
The family is an important part of the social environment. |
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It is a primary group and influences the consumption and
buying behavior of consumers. The traditional family life cycle has
been changing owing to the differing lifestyles. So, marketers have
to analyze these trends and bring in products that are suitable to
these changing consumer segments. Also jobs and workplaces have to
be designed according to the changing lifestyles.
The nature of population has also been changing in many countries
due to cross-border migration. In many countries because of
migration, the population now consists of various races and classes.
This is reflected in the workforce as well. There is also diversity
in the workplace because of the changing age structure. All these
have to be managed by organizations and they have to cater to the
needs of these changing employees.
The other important aspect that firms operating in international
business environment have to consider is the effects of their
products on the environment. Environmental laws may differ from one
country to another. But firms should take it as a responsibility and
work towards the wellbeing of the environment by manufacturing
environmentally friendly products.
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