Introduction to Socio-cultural Environment; Cultural Environment; Factors affecting Socio-cultural Environment; Cross-cultural marketing; Cultural Analysis; Geert Hofstede's Cultural Dimension of India; Criticism of Hofstede's Five Cultural Dimensions; Cultural Orientation Variables; Business Agreements; Ethical Issues; Strategies for resolving ethical conflict; A Case study on McDonald's.

1. Socio-culture
EnvironmentSubmitted to: -
Dr. Minakshi Ma’am
By: -
Akshay Sharma
BIRLA INSTITUTE OF TECHNOLOGY MESRA

2. INTRODUCTION
Values
Beliefs
Assumptions
Language
Behaviour
VISIBLE BEHAVIOUR
INVISIBLE SOURCES

3. SOCIAL ENVIRONMENT
Social environment of business means all factors which affects business
socially . Every business works in a society , so societies different factors
like family , educational institutions and religion affects business.
It includes the culture that the individual was educated or lives in, and
the people with whom they interact.
The cultural factors like buying and consumption habit of the people,
customs and traditions, tastes and preferences, languages etc are the
factors that affect the strategy of the business.

4. Cultural Environment
The cultural environment mean a environment which affect the basic
values, behaviours, and preferences of the society-all of which have an
effect on consumer marketing decisions.
A set of beliefs, customs, practices and behaviour that exists within a
population. International companies often include an examination of the
socio-cultural environment prior to entering their target markets.
- Business Dictionary
SOCIO-CULTURAL
ENVIRONMENT

5. FACTORS AFFECTING SOCIO- CULTURAL
ENVIRONMENT
• Attitude of people.
• Technological Factor.
• Demographic Factor.
• Income & Life Style.
• Religion
• Health & Safety Factor.
• Social Responsibility.
• Taste & Preference.
• Education.
• Family.
• Natural Factor.

6. CROSS-CULTURAL MARKETING
• Domestic and international
companies are confronted with
the task of marketing products
and services to diverse cultural
groups
• Understanding local culture
around the world is becoming
one of the most profitable ways
of marketing products and
services.
UK & USA = O.K.
RUSSIA = ZERO
JAPAN = MONEY
BRAZIL = INSULT
1) Different meaning of same gesture in different countries

7. CULTURALANALYSIS
• Successful implementation of a marketing plan in one country does not
mean it will be successful in another.
• Cultural analysis is the study and classification of non-economic factors.
• Being able to operate in a multi-cultural environment it is important to
know and be aware of the cultural differences.
• The Self Reference Criteria enables firms to identify customer needs in
foreign markets and not transfer the domestic ones.

8. Geert Hofstede's Cultural Dimensions
of India
Power Distance (PDI) – 77
Individualism versus Collectivism (IDV) – 48
Masculinity versus Femininity (MAS) - 56
Uncertainty Avoidance (UAI) – 40
Orientation (LTO) - 61

9. Criticisms of Hofstede’s Five
Cultural Dimensions
Used because of its popularity not it’s accuracy.
Considered superior as it can be easily replicated.
Leads to laziness, as most research in the field is an extension.

10. CULTURAL ORIENTATION
VARIABLES
1) Time,
2) Space,
3) Friendship,
4) Status.

11. BUSINESS AGREEMENTS
Rules for negotiation vary from country to country – there are 3
categories: -
1) Rules that are spelled out technically as law
2) Moral practices mutually agreed upon and taught to young as a set
of principles.
3) Informal customs to which all conform without being able to state
the exact rule

12. ETHICAL ISSUES
1. Bribery,
2. Pricing,
3. Products/Technology,
4. Tax evasion practices,
5. Illegal/Immoral Activities in host country,
6. Cultural Differences.

13. STRATEGIES FOR RESOLVING
ETHICAL CONFLICT
•Avoiding.
•Forcing.
•Education and
Persuasion.
• Infiltration.
• Accommodation.
• Collaboration &
problem-solving.

14. A Company, Which Got Benefit Due to Social Environment
McDonald's
• McDonalds made segment according to Demographic Factor in the Society of
India.
• McDonalds made their food according to Religion in India.
• McDonalds educate the customer towards their food rather than India’s Traditional
Food.
• So that India’s People Taste & Preference Changed, which is beneficial to
McDonalds.
• McDonalds made positioning of their food that our food are Healthy food, And
We believe in Total Quality Management.
• Due to this positioning India’s society prefer McDonalds, which is the benefit of
McDonalds.

15. Continued…
• McDonalds always believe in Standard & Glamour, so that they can fulfil
the psychogenic Need of Society.
• McDonalds Foods are known as Affordable & Convenience Food in the
society, which gives direct Benefit to McDonalds.
• McDonalds use Eco-Friendly Culture & Environment in their Restaurant,
which gives them benefit in the Social Environment of India.
• McDonalds uses the New Technology to make their food and for cleaning.
Due to which Social Environment affected, which gives them Benefit.
• McDonald always influence whole Family to have food in their Restaurant.
• Due to all these McDonalds is one of the most Demanded Restaurant in the
Society.

16. CONCLUSION
• International marketers must be aware of cultural differences when
conducting international business.
• The marketer must be able to adapt business strategies to cultural
requirements of the country.