7.6 Social and technological environment Flashcards

(32 cards)

1
Q

The changes in society and technology that can affect a business’ strategic and functional decision making are

A
  • Urbanisation
  • Migration
  • Consumer lifestyle changes
  • Social changes
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2
Q

What is urbanisation

A
  • People moving from rural areas to urban areas because of job opportunities
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3
Q

What is migration

A

People moving from on country to another, with the intention of residing and accessing employment
(It has increased demand for cultural food shops and this can reduce for groceries from established retailers)

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4
Q

What are consumer lifestyle changes

A

When buying habits or spending patterns change e.g Morrisons introducing online grocery shopping

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5
Q

What are social changes

A

Include the growth of e-commerce and the changes in buying habits as people begin to expect the availability of e-commerce platforms to complete online transactions

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6
Q

What are demographic changes

A
  • Ageing population
  • Rising birth rates
  • Migration
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7
Q

Impact of the ageing population

A

As healthcare improves and people live longer, demand for products and services can change

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8
Q

Impact of the rising birth rates in the UK

A

Expanding population will increase demand for products and services and businesses must be able to respond to these increases to maintain market share

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9
Q

Impact of migration

A

The movement of people between countries can affect demand for products and services

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10
Q

Lifestyle changes that can affect a business

A
  • Emphasis on healthy eating
  • Emphasis on wellness
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11
Q

Technological changes that can affect a business

A
  • E-commerce
  • Social Media
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12
Q

Impact on the emphasis on healthy eating

A

Consumers may demand healthier food options

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13
Q

Impact on the emphasis on wellness

A

Awareness of wellbeing and fitness continues to increase, consumer demand for fitness products is likely to increase

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14
Q

Impact on e-commerce

A

As consumers take advantage of advancements in e-commerce, demand for online shopping will increase and businesses must be responsive to these changes

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15
Q

Impact on Social media

A

As social media use continues to grow, businesses must adapt customer service procedures to reflect changes in consumer expectations

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16
Q

CSR (Corporate social responsibility)

A

An approach whereby businesses seek to exceed basic legal requirements by considering their impact on society

17
Q

CSR focuses

A
  • Satisfying employees
  • Satisfying customers
  • Satisfying shareholders
  • Satisfying suppliers
  • Satisfying the community
18
Q

Satisfying employees

A

Offering job security, safe working conditions and fair wages

19
Q

Satisfying customers

A

Offering reliable products, fairly priced, which exceed legal safety requirements

20
Q

Satisfying shareholders

A

Increasing share price and through payment of stable and regular dividends

21
Q

Satisfying suppliers

A

Paying fair prices, making regular, on-time payments and offering exclusivity

22
Q

Satisfying the community

A

Offering employment and funding restoration projects and community facilities

23
Q

Disadvantages of CSR

A

Can increase a business’ costs through paying for initiatives offering employees fair wages and agreeing to pay suppliers fair prices

24
Q

Advantages of CSR

A

Attracts customers to the business and increase market share and sales revenue in the long-term

25
What is Carroll's Corporate Social Responsibility Pyramid
A pyramid used by managers and leaders to support the business to fulfil their social responsibilities
26
Bottom to top of Carroll's CSR pyramid
- Economic - Legal - Ethical - Philanthropic
27
Economic responsibility: Carroll's CSR Pyramid
Being profitable is the foundation of the hierarchy and allows the business to move through additional responsibilities
28
Legal responsibility: Carroll's CSR Pyramid
Paying employees the national minimum wage
29
Ethical responsibilities: Carroll's CSR Pyramid
See a business making moral decisions such as agreeing to pay employees more than the legal requirement in order to support their standard of living
30
Philanthropic responsibility: Carroll's CSR Pyramid
The business supports society and the community through supporting charitable events and sponsoring public facilities
31
The shareholder concept
Businesses have a responsibility only to raise value for shareholders through increasing share prices and paying dividends and that profit maximisation is the only focus of the business
32
The stakeholder concept
As well as satisfying shareholders' needs, the business must place equal emphasis on satisfying the needs of all other stakeholders, including employees, customers and suppliers