India is a demographic darling because one-third of its population is aged under 14, and its working age population will grow in the next 20 years, to more than the existing stock of working age. A number of personal factors also influence the consumer behaviour in fact this is one major factor that influences consumer behaviour the sub factors under personal factor are listed below. Demographic factors demography is the study of people in terms of their age, gender, race, ethnicity, and location demographics are significant because people constitute markets. The business market comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. Demographic (biological) factor: broadly speaking, demography is concerned with the size and structure of human population the social structure of a society is closely related with the changes in the size, composition and distribution of population.
In the global business world, organizations and executives face a growing need to understand the subtleties and nuances of leadership as it is exercised in different cultures. Business owners can gather both demographic and psychographic information from government agencies concerned with economics and statistics neighborhood profiles and customer surveys are also great sources of information. The influence of socio-demographic factors on work performance among employees of government agriculture agencies in malaysia hayrol azril mohamed shaffril. The political and legal dimensions of the external environment include regulatory parameters within which an organization must operate political parties create or influence laws, and business owners must abide by these laws.
The impact of various demographic factors on an investors' risk taking ability has been studied and analyzed separately , the results of which are as under 1. The demographic factors always influence the process and nature of social change the population increase or decrease always brings social problems when the birth-rate in a society exceeds death-rate, population begins to rise. Various economic factors need to be taken into account when determining the current and expected future value of a business or investment portfolio for a business, key economic factors include labor costs, interest rates, government policy , taxes and management. Demographics is the collection of data regarding a specific population it is frequently used as a business marketing tool to determine the best way to reach customers and assess their behavior.
At the wall street journal's 2013 ceo council conference, leading corporate executives from a range of industries gathered to discuss some of today's most pressing issues with this recent event. (a) business environment is the sum total of all factors external to the business firm and that greatly influence their functioning (b) it covers factors and forces like customers, competitors, suppliers, government, and. Process in organizations it looks closely at the key factors that influence strategic planning and why organizations have to plan for the future for them to remain relevant in the market. Political factors the world's political relations, the policy of a country also has a big impact to international trade the gulf war after iraq's oil exports plummeted, is due to political reasons.
Pest analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management it is part of an external analysis when conducting a strategic analysis or doing market research , and gives an overview of the different macro. Culture can influence the business in different ways language problems, pricing difficulties and culture collisions are not uncommon, especially in the beginning. Social factors originating from within a business are also important influences other factors that can influence a company internally include organizational structure and management structure.
Every company, irrespective of the nature of the business they are dealing with, is exposed to various factors which influence the changes in the company and also influences the decision making and strategies of the organisation. There are a number of demographics that can affect a business demographics are various traits that can be used to determine product preferences or buying behaviors of consumers. The most frequently studied, 2 but other contexts may also be important for certain segments of the population 3 physical environmental factors the factors in the physical environment that are important to health include harmful substances, such as air pollution or proximity to toxic sites (the focus of classic environmental epidemiology) access to various health-related resources (eg. Demographic environment relates to the human population with reference to its size, education, sex ratio, age, occupation, income, status etc business deals with people so they have to study in detail the various components of demographic environment.
Business is affected by different factors which collectively form the business environment these include economic, social, legal, technological and political factors these include economic, social, legal, technological and political factors. The more your business knows about the social trends that affect your community and your industry, the better you'll be able to target your marketing efforts and tailor your products to fit a shifting landscape. Demographic data it is well understood that product preferences vary across different groups of consumers these preferences relate directly to consumer demographic characteristics, such as household type, income, age, and ethnicity. One of the most important factors in development is geography, where the country is in the world, and climate it's no coincidence that the poorest countries are in the tropics, where it is hot, the land is less fertile, water is more scarce, where diseases flourish conversely, europe and north.
The economic environment of business of modern times is highly complex total economic environment is consisting of prevailing economic system, basic economic philosophy and economic policies of the government, stages of economic development, agricultural and industrial production, infrastructure, planning process, trade cycles, national income, savings, population, money supply and price level. Social factors social factors that affect the economic environment of a business are the cultural influences of the time for example, a fashion designer that creates bell bottom, striped pants will not succeed in an environment where straight-leg, solid colored pants are desired.