Chapter 11 The Macro Environment – Socio-cultural Influences

1. Chapter 11 The Macro Environment – Socio-cultural Influences By the end of this chapter you should have a better understanding of: • what is meant by the socio-cultural environment; • the key socio-cultural influences; • current and emerging ethical and international issues in the socio-cultural environment. Unlocking the Business Environment

2. What is meant by the socio-cultural environment? • The socio-cultural environment refers to the values, attitudes, norms and lifestyle of the population. • Socio-cultural influences on an organisation are directly related to people and their preferences. • The socio-cultural environment impacts on organisations in terms of the type of products and services they offer, what markets they serve, where and how they produce, and how they sell their products and services. Unlocking the Business Environment

3. Key socio-cultural influences • Some of the key socio-cultural influences that might affect organisations are: • health; • education; • class structure and social mobility; • families; • leisure interests. Unlocking the Business Environment

4. Key socio-cultural influences – health • Attitudes towards smoking have experienced significant change in the last few decades. • The number of smokers has declined substantially, while the proportion of people in favour of smoking restrictions at work and in public places has increased. • The number of obese men and women has increased over the last decades. Unlocking the Business Environment

5. Key socio-cultural influences – education • There have been increases in the number of people, particularly women, participating in higher education. • However, this increase is not spread evenly across subjects, and there is a decline in the number of applications to study science and engineering. Unlocking the Business Environment

6. Key socio-cultural influences – class structure and social mobility • Traditionally, British society has been divided into three main social classes: the upper class, the middle class and the working class. • The UK’s class structure is said to allow less social mobility than that of other developed nations. Unlocking the Business Environment

7. Key socio-cultural influences – families • Family life in the UK has changed considerably since the 1970s. • There has been a continuous downward trend in the number of marriages, while the number of divorces and cohabiting couples has increased. • People are getting married and having their first child later in life. Unlocking the Business Environment

8. Key socio-cultural influences – leisure interests • People in the UK spend most of their time sleeping and working, and watching television, DVDs or videos, or listening to music. • Nowadays, people travel further and more often, both within the UK and abroad. Unlocking the Business Environment

9. Current and emerging ethical and international issues • The new millennium has witnessed the rise of the ethical consumer. • A growing number of people are increasingly concerned with causing less harm to the environment, and realise that their choices affect not only the environment but also other human beings. • Although some socio-cultural influences seem to follow global trends, deep cultural differences still remain across countries. Unlocking the Business Environment

10. Summary • The socio-cultural environment refers to the values, attitudes, norms and lifestyle of the population. • The key socio-cultural influences studied in this chapter are: health, education, class structure and social mobility, families and leisure interests. • Ethical consumers now demand products and services that are ethically produced and do not cause harm to the environment. • Despite increasingly convergent consumer tastes and preferences, organisations operating in international markets need to be aware of deeper cultural differences. Unlocking the Business Environment