Social – Cultural Environment

• SE – the social surrounding that influence business.

• Why do business exist???
• Components of SE-
• A) Demographics- human population & distribution.
• 1. Population size-
• 2011-
• Population- 26.6 mln. Males-48.6, females- 51.4
• Growth rate 1.4%
• Terai- 50%, hills-43%, mountains-7%
• 2. Age mix of population-
• 2001- 40% below 14 yrs.
• Priorities differ b/w age groups.

• 3. Urbanization of population-
• From 10% in 1991 to 17 % in 2011.
• People r busy n demand changes.

• 4. Migration of population-
• Geographical shift.
• Shift to terai, foreign employment
• B ) Basic social structure
• 1. Family-
• A social institution
• Joint family system to nuclear family system= business arises, child
care centre, day boarders

• 2. Reference groups-
• Where an individual would like to belong
• Attitude & behaviour
• Various personalities
• Influence life style, activities, interests & opinions
• Influence attitudes & values
• Influence product & brand choices
• 3. Social class-
• Societal rank determined by its members.
• Upper class
• Middle class
• Lower class
 Cultural forces
• 1. Religion-
• It affects food habits, dress, travelling etc.
• H- 81%
• B-11%
• M-4%
• Others- 4%

• 2. Language-
• Medium of communication
• Meaning to messages
• Needed to operate business
• 3. Education-
• Workers, customers, salesperson, employees…..
• Learning organizations – knowledge based staff…with continuous
learning
• Literacy rate-54% in 2001

• 4. Attitudes-
• Towards time, leisure, work & business

• 5. Beliefs-
• Descriptive thoughts about something based on knowledge,
opinion or faith.
• superstition
 Impacts on business
• 1. Management practice-
• Business is guided by traditional values
• Family patronage
• Less employee participation
• Autocratic style
• Lack of professionalism
• 2. Work attitudes-
• People like govt jobs for security
• Low organizational loyalty
• Time is given less importance
• Superstition & fatalism
• Business is not regarded as occupation of
priority
• Lack of work ethics for hard work
• 3. Entrepreneurship
• Avoid risk
• Achievement motivation is poor
• Religion is instrumental in shaping attitudes,
Hindu-disregard result-Geeta, Buddhism-
prohibition of material development.
• 4. Change management-
• Slow environmental adaptation
• Resistance towards change
• Change is not properly managed & planned.
• 5. Business ethics-
• Corruption & bribery
• Gender inequality
• CSR is poor
• Changes in cultural values hv led towards
emergence of material culture.
• IT & modernization are trying to break cultural
barriers in business.