Tuesday, August 11, 2009

Chapter 11 Social and Technological Factors

Chapter 11 Social and Technological Factors

Part 1 Demographic and Social Trends

1.1 Environmental Analysis
Key social and demographic issues include:
- population - size, location, density, composition
- wealth - income, distribution
- education and training
- health
- social structure, attitudes, values and tastes

1.2 Demographic Trends
~ Population Size
- growing population results in a growing market
- population growth or decline is the results of a combination of factors including birth rates, death rates, immigration and emigration

~ Population Composition
- the relative sizes of birth and death rates will change the age composition of the population

~ Population Location

~ Wealth
- economic growth often results in higher disposable income with the knock an effect of greater demand for porducts

~ Education
- key driver of economic growth

~ Health

1.3 Social Trends
~ Social Structure
- many countries are finding the demand for housing growing faster than the population

~ Values
- greater social awareness could spell disaster in the future for those firms unwilling to embrace this cultural shift

~ Attitudes
- willingness to seek compensation from organisations for alleged wrongs
- people are more comfortable with computers and using the internet


~ Tastes
- changes in tastes and fashions can have a damaging on organisations that fail to anticipate the changes

1.4 Government Policy
~ Population Structure
- governments of countrues wtih low birth rates often introduce tax advantages and other financial incentives to encourage women to have more children
- governments in countries with rapidly rising populations often put in place policies to discourage large families

~ Housing
- increasing demand for new housing has resulted the governments setting out new developements, creating further demand for builders

~ Employment

~ Health
- some governments have taken steps to improve the nutritional value of school meals with obvious implications for the suppliers of those meals

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