Unit 3 Socio Cultural Environment 704z3b

Socio-Cultural Environment Prepared By: Sujaya Thapa KVC, IV Sem

Concept of Socio-cultural Environment • Buying & consumption habit of the people, their languages, beliefs & values, customs & traditions, taste & preference, all factors affect business. • Socio-cultural environment is made up of social institutions, class structure, beliefs, values, accepted patterns of behavior, customs of the people & their expectations.

Components of Socio-Cultural Environment • • • • • • • •

Attitudes Values & Beliefs Religion Language Education Social Institutions Class structure Business Culture

Impacts of Socio-Cultural Environment • Changing preferences – Popular & fashionable 20 years ago might not be popular today – Different styles & understanding customer priorities leads to long term success

• Demographics – Changes in proportion of genders, racial, religious, & ethnic group effects the business

Contd… • Advertising Technique – Different ment focusing on culture, religion leads to better market opportunity

• Workforce Diversity – Understanding and accepting different people working together in an organization

• Customs & superstitious – E.g. not purchasing iron & steel on Saturday – Seeking help of astrologers, changing names

Components of socio-cultural environment 1. Attitude & Belief • Attitude is, “any affective reaction to a person, object, idea or activity”. • It is a state of mind or feeling with regard to some matter either positive or negative. • Employees attitude & beliefs towards work related issues like working hours, work shift, supervision etc have significant effect on performance of organization.

BETARI Box Model

2. Religion • Religion is a collection of belief systems, cultural systems, and world views that relate humanity to spirituality and, sometimes, to moral values. • Nepal has a multi-cultural population, population made up of many different ethnic and racial groups like Hinduism, Buddhism, Islam, Kirat, Christianity etc.

3. Language • Language is the human capacity for acquiring and using complex systems of communication. • Language is a part of a nations culture and described as a mirror of culture. • Nepal is using different languages like; Nepali, Maithili, Bhojpuri, Tharu, Tamang, Newari, Magar, Urdu, Hindi etc.

4. Education • Education in its general sense is a form of learning in which knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training, research. • It includes, – – – –

Literacy status: literacy rate has increased in slow pace School education Vocational & technical education Higher education

5. Social Institutions • Community – Group of people living in same locality

• Community service Organization – Non-profit & charitable organizations dedicated to meet basic needs, resolve problems

• Educational Institutes – Includes teaching skills & knowledge to students

• Family & Households • Government & Legal Institutions

6. Structure • Affluent class – They have luxurious lifestyles with higher demands in product & services

• Middle class – People involved in civil servants, managers, engineers

• Lower middle class – People who have little education & targeted for cheaper goods & services

• Poor – Their purchasing power is very less

7. Business Culture • It refers to the sum of total of dynamic & innovative ways & means where an organization responds to changes in environment. • It affects the strategy of organization by influencing & motivating employees towards organizational objectives.

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