1.3.4

Social & Technological Environment

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Social and Technological Environment

Changes in society and technology can affect a business’ strategic and functional decision making.

Urbanisation

Urbanisation

  • Urbanisation describes people moving from rural areas to urban areas.
  • People usually move to urban areas because there are more job opportunities there.
Migration

Migration

  • Migration describes people moving from one country to another, with the intention of residing and accessing employment.
    • For example, increasing migration has increased demand for cultural food shops and this can reduce demand for groceries from established retailers.
Consumer lifestyle changes

Consumer lifestyle changes

  • Consumer lifestyle changes occur when buying habits or spending patterns change.
    • For example, Morrisons has introduced online grocery shopping to respond to changes in consumer expectations.
Social changes

Social changes

  • Social changes can include the growth of e-commerce and the changes in buying habits as people begin to expect the availability of e-commerce platforms to complete online transactions.

Impact of Demographic Changes

Demographic changes, including changes in the population structure, can affect a business in several ways.

Impact of the ageing population

Impact of the ageing population

  • The UK’s population is ageing, and as healthcare improves and people live longer, demand for products and services can change.
    • For example, Saga holidays, which targets over 50s with holiday packages, may need to increase its capacity as demand from over 50s increases for its holiday products.
Rising birth rates

Rising birth rates

  • The UK’s population is expanding as birth rates continue to increase.
  • An expanding population will increase demand for products and services and businesses must be able to respond to these increases to maintain market share.
    • For example, as the population increases, food producers must be able to increase production to meet demand.
Migration

Migration

  • Migration, the movement of people between countries, can affect demand for products and services.
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1

Exploring Business

1.1

Features of Business Organisations

1.1.1Sole Traders & Partnerships1.1.2Private & Public Limited Companies1.1.3Types of Liability & Not-For-Profits1.1.4Purposes of Businesses1.1.5Purposes of Businesses 21.1.6The Different Economic Sectors1.1.7Multinational Companies1.1.8Stakeholders1.1.9Influence of Stakeholders
1.2

Organisation of Businesses

1.2.1Organisational Structure1.2.2Types of Organisational Structures1.2.3Business Aims & Objectives1.2.4Business Aims1.2.5Business Objectives
1.3

Business Environment

1.3.1External Influences1.3.2Political & Legal Change1.3.3Economic Environment1.3.4Social & Technological Environment1.3.5Lifestyle & Technological Environment1.3.6Corporate Social Responsibility1.3.7The Competitive Environment1.3.8Innovation1.3.9Risk & Uncertainty1.3.10Porter's Five Forces1.3.11SWOT Analysis
2

Marketing Campaigns

2.1

Marketing

2.1.1Setting Marketing Objectives2.1.2Customer Needs2.1.3The Market2.1.4Competition & The Market2.1.5Consumer Behaviour2.1.6Market Research2.1.7Forms of Market Research2.1.8Market Segmentation2.1.9Cultural & Social Factors in Marketing2.1.10Promotional Decisions 32.1.11Pricing Strategies
2.2

Marketing Mix

2.2.1Marketing Mix2.2.2Product Life Cycle2.2.3Pricing Decisions & Price Skimming2.2.4Pricing Decisions & Price Penetration2.2.5Promotional Decisions2.2.6Promotional Decisions 22.2.7Promotional Decisions 32.2.8Market Mapping
3

Business Finance

3.1

Sources of Finance

3.1.1Internal Finance3.1.2External Finance3.1.3External Finance 23.1.4Sources of Business Finance
3.2

Financial Planning

3.2.1Revenue3.2.2Costs3.2.3Cash & Cash Flow3.2.4Cash & Cash Flow 23.2.5Break-Even Analysis3.2.6Profits
3.3

Financial Statements

3.3.1Balance Sheets3.3.2Income Statements3.3.3Liquidity
4

International Business

4.1

Globalisation

4.1.1Growing Economies4.1.2Specialisation & Trade
4.2

International Business

4.2.1Internationalisation4.2.2International Trade4.2.3MNCS4.2.4Conditions that Prompt Trade4.2.5Assessment of a Country
4.3

International Economic Environment

4.3.1Globalisation4.3.2Factors Contributing to Globalisation4.3.3Protectionism4.3.4The EU & the WTO4.3.5Trading Blocs
4.4

Factors Affecting International Business

4.4.1Global Competitiveness4.4.2Ethics of Global Business4.4.3Controlling MNCs4.4.4Cultural & Social Factors in Marketing
5

Principles of Management

5.1

Management & Leadership

5.1.1Managers5.1.2Management Theories5.1.3Managing Organisational Culture5.1.4Management Style
5.2

Theories of Motivation

5.2.1Motivating & Engaging Employees5.2.2Taylor's Theory5.2.3Mayo's Theory5.2.4Maslow's Theory5.2.5Herzberg's Theory
5.3

Managing Change

5.3.1Change5.3.2Key Factors in Change5.3.3Scenario Planning5.3.4Managing Change5.3.5Managing Strategic Implementation
6

Business Decision Making

6.1

Business Principles & Practices

6.1.1Influences in External Environments6.1.2Product Decisions6.1.3Competitive Environment6.1.4Corporate Strategy6.1.5Quantitative Sales Forecasting6.1.6Legislation
6.2

Quality Management

6.2.1Importance of Quality6.2.2Measuring Quality6.2.3Total Quality Management6.2.4Evaluating TQM
6.3

Human Resources

6.3.1Contracts6.3.2Recruitment6.3.3Training a Workforce
6.4

Documents & Business Decisions

6.4.1Sales Forecasts6.4.2Managing Strategic Implementation6.4.3Problems with Strategy

Practice questions on Social & Technological Environment

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    _The act of moving from one country to another with the intention of residing and accessing employment._ <br><br>Which of the following terms does this describe?Multiple choice
  2. 2
    What has grown in recent years, impacting buying habits?Multiple choice
  3. 3
    What is happening to the UK's population?Multiple choice
  4. 4
    What is the impact of an expanding population on demand in the economy?Multiple choice
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Economic Environment

Lifestyle & Technological Environment