Social and cultural factors affecting business
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
April 9, 2022
Social and cultural factors affecting business
Social and cultural factors affecting business include belief systems and practices, customs,
traditions and behaviours of all people in given country, fashion trends and market activities
influencing actions and decisions. Socio-cultural perspective is one of the most important
factor influencing decision of marketing managers and strategic goals of companies entering
new foreign markets. It should be noted that legal factors affecting business is also considered
as one of the major socio-cultural factors that can influence companies. Proper identification of
this factor during strategic analysis (PEST analysis, STEEP analysis, SWOT analysis, TOWS
analysis) could lead to better strategic alignment of company to society (during international
development).
Social factors affecting business
Social classes can have a significant impact on a society, shaping access to opportunities
and resources, as well as influencing political and cultural norms.
The average disposable income level can vary greatly between countries and within
countries, and can be influenced by factors such as overall economic conditions and individual
earning potential.
The wealth of people can be measured by a variety of factors, including income, assets,
and net worth, and can vary greatly between individuals and groups.
Economic inequalities refer to the unequal distribution of wealth, income, and
opportunities within a society, which can lead to disparities in access to resources and
opportunities.
The level of education can vary greatly between countries and within countries, and can
be influenced by factors such as access to education and government investment in education.
Access to education can be determined by whether it is free or paid, and can impact
individuals' opportunities and overall societal development.
The level and access to healthcare can vary greatly between countries and within
countries, and can be influenced by factors such as government funding and private
healthcare options.
Health consciousness in society can include factors such as smoking, drinking, drug use,
and safe driving habits, and can be influenced by individual and societal attitudes towards
health and well-being.
Buying habits and consumer preferences can vary greatly between individuals and
groups, and can be influenced by factors such as income, culture, and personal values.
The average retirement age can vary greatly between countries and within countries,
and can be influenced by factors such as government policies and individual career paths.
The personality of the average consumer can vary greatly and can be influenced by
factors such as individual values, experiences, and beliefs.
The reputation of a company in society can impact consumer trust and loyalty, as well as
overall business success.
Conflicts within society can include issues such as inequality, political differences, and
social injustice, and can impact individuals' lives and overall societal dynamics.
Susceptibility to influence can vary greatly between individuals and can be influenced by
factors such as personal values, beliefs, and experiences.
Social organization can include various forms of communities, social groups, gangs, and
ad-hoc gatherings, and can impact individuals' access to resources and opportunities.
Uncertainty avoidance can be a dominating factor in a society and can impact
individuals' and groups' attitudes towards risk, change, and innovation.
Cultural factors affecting business
Fashion trends can reflect current cultural values and influences, and can vary greatly
over time and between different groups.
Lifestyle can encompass a wide range of factors including work-life balance, leisure
activities, and consumption patterns and can vary greatly between individuals and groups.
Social media and traditional media can have a significant impact on shaping public
opinion and can vary in their reach and influence depending on the society and culture.
The dominant communication technology in social groups can vary, but can include
things like social media, texting, and messaging apps, and can shape how people interact and
communicate.
Participation in cultural events can vary greatly between individuals and groups and can
be influenced by factors such as access to events, personal interests and cultural background.
Willingness to pay for tickets for cultural events can vary greatly and can be influenced
by factors such as disposable income, personal interests, and cultural background.
Popular actors, music styles, and design forms can reflect current cultural values and
influences and can vary greatly over time and between different groups.
Creativity of people can vary greatly and can be influenced by factors such as access to
resources, cultural background, and personal experiences.
The relative population of local vs. global imported culture can vary greatly and can be
influenced by factors such as access to resources, cultural background, and personal
experiences.
Various other determinants of culture can include things like language, religion, and
economic conditions, and can shape the development and expression of a culture over time.
Socio-cultural factors and demography
Population growth rate: The rate at which a population increases or decreases over
time.
Birth control regulations and incentives: Government policies and programs that aim to
control the population by regulating or encouraging the use of birth control methods.
Age distribution: The proportion of people in different age groups in a population,
which can impact demand for goods and services.
Life expectancy rate: The average number of years a person can expect to live, which
can affect a society's overall health and well-being.
Sex distribution: The ratio of men to women in a society, which can impact social norms
and gender roles.
Average family size and family structure: The number of people in an average family
and the makeup of that family, which can affect social dynamics and economic patterns.
Relative influence of minorities in society: The degree to which minority groups are
represented and have influence in society, which can impact social and political issues.
Immigration rate: The rate at which people move into a country, which can affect the
population's diversity and impact labor market.
Emigration rate: The rate at which people leave a country, which can affect the
population's skill level and impact labor market.
Social diversity: The range of differences within a population in terms of income,
education, race, gender, etc., which can impact social dynamics and cultural norms.
Beliefs and value systems within society
Majority and minority religions: The religions that are most widely practiced within a
society, as well as any minority religions that are present.
Influence of religious leaders on social behaviours: The extent to which religious
leaders and institutions shape and guide social norms and behaviours within a society.
Role of religion as a binding/dividing factor in society: Whether religion serves as a
unifying force or a source of division within a society.
Dominant beliefs in society: The widely held beliefs and values that shape a society's
culture and worldview.
Eating habits connected with religion: The ways in which religious beliefs and practices
influence the food that is consumed within a society.
Belief in superstitions (Friday 13th, 13th floor in buildings, etc.) and myths: The extent
to which people believe in and act on superstitions and myths within a society.
Role of science in relation to religion: The relationship between
scientific knowledge and religious beliefs within a society.
Customs, traditions during holidays (worship days): The ways in which religious
holidays and observances shape customs and traditions within a society.
Common attitudes in society
Attitudes toward banking, saving money and investing: The general perspective and
behaviors of individuals and society towards financial institutions, saving and investing money.
Attitudes toward ecological products, recycling, global warming, etc.: The general
perspective and behaviors of individuals and society towards environmental issues,
conservation and sustainable living.
attitudes toward renewable energy sources, green products: The general perspective
and behaviors of individuals and society towards energy sources that are considered renewable
and environmentally friendly products
Attitudes toward imported products and services, foreign [[investments]], etc.: The
general perspective and behaviors of individuals and society towards products and services that
are imported and foreign investments.
Attitudes toward work and career, possibility of development: The general perspective
and behaviors of individuals and society towards career, job opportunities, and personal
growth.
Attitudes toward leisure and retirement: The general perspective and behaviors of
individuals and society towards the balance between work and leisure, and retirement.
Attitudes toward learning and self-development: The general perspective and
behaviors of individuals and society towards learning and personal development.
Attitudes toward others (diverse people, countries, companies, etc.): The general
perspective and behaviors of individuals and society towards other people, countries,
companies, etc.
Attitudes toward safety (police, military, etc.) and privacy: The general perspective and
behaviors of individuals and society towards safety, privacy, surveillance and security.
Attitudes toward ethical/unethical behaviours and Corporate Social Responsibility:
The general perspective and behaviors of individuals and society towards ethical and
responsible behaviours and corporate social responsibility.
Attitudes toward management practices (negotiation, business activities, etc.): The
general perspective and behaviors of individuals and society towards management practices,
negotiation, and business activities.
