37071849 socio culture environment

8/8/2019 37071849 Socio Culture Environment

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An entrepreneur generates an idea / identifies opportunitiesRaises capitalAvail resources

Establishes a physical environmentConverts ideas into profitable investments


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Aspects having direct or indirect bearing on the businessAre of:Micro environmental factorsMacro environmental factors

Identifying these factors are of critical in nature, requires to conduct a lot of research andanalysisPESTL analysisSWOT analysisPorters 5 forces analysis


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Social and cultural environment refers to the

influence exercised by certain social factor whichare beyond the companies gate

Culture refers to dance,drama, music

and festival include

Knowledge, belief,art, moral, law, customs &

others capability


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Culture Acc. To Taylor Culture of civilization isthat complex whole whichincludes,belief,art,morals,law,custom knowledgeand other capabilities and habits acquired by manas a member of the society.

ELEMENTS OF CULTURE :

1. Knowledge & beliefs Includes myths , beliefs &scientific realities.

2. Ideals refers to societal norms which define

what is expected, customary, right in givensituation.

3. Preferences Things which are attractive orunattractive as objects of desire.


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1.LEARNED : Culture is not inherited or biologicallybased, it is acquired by learning and experience

2.SHARED : People are member of a group, organization,

or society share culture, it is not specific individual.3.TRANS GENERATIONAL : Culture is passed on from one

generation to the next.4.SYMBOLIC: Culture is based on the human capacity to

symbolic or use one thing that represent another.5.ADAPTIVE : Culture is based on the human capacity to

change or adapt, as opposed to the more geneticallydriven adaptive process of animals.


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Culture and GlobalizationWhen business goes International work motivation, profit motivation, business goalgift giving, custom, greeting, body gesture, colour and numbers changes.

U.S.U.S. JapanJapan

CompanyCompany Team in SportTeam in Sport Family in VillageFamily in Village

Business goalBusiness goal To WinTo Win To SurviveTo Survive

EmployeesEmployees Players in teamPlayers in team Children in FamilyChildren in Family

Human RelationHuman Relation FunctionalFunctional EmotionalEmotional

CompetitionCompetition Cut throatCut throat cooperativecooperative

Work motivationWork motivation IndividualIndividual

IncomeIncome

Group IncomeGroup Income

promotionpromotion Acc. To AbilitiesAcc. To Abilities Length of ServiceLength of Service

PayPay Service &Service &

ResultResult

Award of patience and sacrificeAward of patience and sacrifice


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Cultural Transmission The elements of culture aretransmitted among the members of the culturefrom one generation to the next and to the new

members admitted in the society. As the time goesculture accumulate more techniques, ideas,

product and skills.

Literature, Film, T.V, Social institutions, advertising,mkting techniques, etc. play a important role in

cultural transmission.


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Cultural Traits :-

1. Masculine & Feminine Culture

2. Universalism vs. Particularism

3. Individualism vs. Communitarianism

4. Neutral vs. Emotional


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Religion The cost of ignoring certain religious

aspects could be very high, sometimes fatal ininternational business.

E.g.. 1 When an American fast food chain wasplanning to enter India, one political party statedthat it would oppose the mkting of beef product inthe country.

E.g. 2 Christians do not consume non-veg during

lent (50 days preceding Easter).

E.g.. 3 Most Hindus do not purchase goods duringRahu-Kala .


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E.g. 4. The customs of marriage,

naming ceremony of child, festivals etc.

wary significantly between religions.

These have implications for many typesof business like textiles, jwellery, catering,

consumer durables etc..


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Ethno domination In many countries one

or other industry or trade is dominated bycertain ethnic groups.

E.g. 1 The automobile spare parts businessin India is dominated by Sikhs.

E.g. 2 Punjabi restaurant's, chineseresturants, Udupi restaurants are popular inseveral countries.

E.g. 3 The business in India is particularlydominated by Vaishya Community.


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Language Differences in language is a

very important problem area in business.

E.g. 1 Fords third word truck brand nameFiera meant Ugly old woman in Spanish.

E.g. 2 The Arabic language is read fromright to left and many Arabians sequencethings from right to left. A multinationalblundered in the middle east when in the

advertisement of its detergent it picturedsoiled clothes on the left, the box ofdetergent in the middle and clean clotheson the right.


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Consumer Preferences, Habits and Beliefs What is most likes by people of one culture may not be

liked by those of other culture. Many companiesmodify their products and promotion strategies to suit

the tastes and preferences of the population of other

countries.

E.g. 1 Nescafe has a 3/4 share in Mumbai but poor

mkt. share in Banglore & South whereas Bru has a goodmarket share in Banglore and not in Mumbai & North

India. The reason is Nescafe add. projectscosmopplitan image of the product whereas Bru add.

projects South Indian family particularly Tamilnaduculture.


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E.g. 2 Even when a product serves the

same purpose, the relative importanceof various product attributes may differb/w markets.Goodyear tyres for example stress tyres safety in

Britain, durability and mileage in U.S and agileperformance in Germany

E.g. 3 It is pointed out that much better quality

of packaging is needed in Japan than in U.S. asU.S peoples

sees the pack as a means of getting theproduct home.


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THANK YOU


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37071849 socio culture environment

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