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 advertisement 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.

THANK YOU!!!