SOCIAL AND CULTURAL ENVIRONMENT
. Socio-cultural environment is a sum total of society’s beliefs, taste, preferences, norms, manners and the behavior of groups.
. Across the globe the these all characteristics may differ, one society may have same taste, preference, need and wants but not others have it the same.
. Many businesses and organizations had chosen different market mix for different markets, marketing mix which is consist of 4 Ps ( PRICE, PLACE, PROMOTION AND PRODUCT the most important). Marketing and corporate strategies changes with the change of place for example you cannot sell Bandhej ki saree in saudia Arab market actually you sell but in reality the demand of bandhej ki saree is near 0, you have look upon taste and preference of that market.
. Business environment scene is of gokuldham society were people from gujarat, rajasthan, UP, sub of maharashtra, Punjab, MP and from Tamil nadu sharing their walls. Similarly in business environment a organizations handle information and market of different backgrounds and customs.
EXTERNAL ENVIRONMENT
. Business environment too have external and internal processes like we human have internal and external behavior. Organizations have the same structure.
. A business must grow with generations and with change in environment, adaptation is the only solution, like Nokia and BlackBerry didn’t change with environment but apple take it as a opportunity and rest is a history.
. It should well aware of society’s social preferences, needs and wants that are in turn influenced by the population’s values, beliefs and practices.
. Best way to compete with this external environment is to made proper and effective marketing strategies, strong supply chain management, Public relations and health bonding with customers and with all stakeholders.
INTERNAL ENVIRONMENT
. A business also creates it’s own environment called internal environment. Consist of organizations norms, code of conduct, management values, rules, beliefs and culture.
. Business needs to operate like a cohesive unit, so it is important to build a strong and productive organization culture that is stable and positive.
. Business or corporate environment also affected by the current change in the contemporary workforce. Workforce of this era is more educated, better IQ, EQ, great logical understanding and hyper intensive behavior towards their goals. So, it become important for organizations to set their employees in the direction towards both their and organizational goals.
IMPACT OF CULTURE ON BUSINESS
Culture is a key component in business and has an impact on the strategic decisions of business. Culture influences managerial style, management decisions and all business functions from accounting to production.
Culture Affects:
– Consumer Behavior
– Brand Image
– Local Demand
– Buying Decisions
The interface between business and culture can be seen as under:
1) Culture Creates People – Organizations is just a empty building without skilled and smart employees and executives personal. Culture is any organization is just a reflection of the people who works their. CULTURAL is a integrated learn behavioral pattern which are characteristics of the members of the society. Culture determines the ethos of people.
2) Culture and Globalization – A business organization with the help of internationalization it’s become a routine work for organizations to deal with numerous international clients, they found new cultures with a new sence of thinking regarding the market functioning. They had to adopt it for their benefit.
3) Culture determines goods and services – At the time of analyzing the market most of the cessation revals that company need yawn knowledge to find out the best product to serve the society. As most of the research says company’s product is a gifted product of culture and society.
4) Culture and knowledge – it refers to the transmission of skills, ideas, creativity and attitudes as well as training in particular disciplines. Education on:
. Advertising programs and labelling.
. Conduct market research.
. Instructions to be mentioned on products.
. Relation with the distributors etc.
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