Social and cultural environment 5

1. Dr.M.VETRIVEL,
Associate Professor,
Department of Commerce
VELS University

2.  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.

3. 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 sociocultural environment prior to
entering their target markets.

4.  Attitude of people.
 Demographic Factor.
 Religion
 Social Responsibility.
 Taste & Preference.
 Education.
 Family.
 Natural Factor.
 Technological Factor.
 Income & Life Style.
 Health & Safety Factor.

5. Language.
Dressing.
Taste & Preference (Eating Habit).
Life style.

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9.  Trade credit
 Bank credit
 (a) loans
 (b) cash credit
 (c) overdraft
 (d) discounting of bill
 Customers advances
 Installment credit
 Loans from co-operative bank

10.  Urban denoted the nature of a city a s against rural denoting
the characteristics of a village. Urbanization is the creation
of cities.
 The urbanization that had taken place in advanced counties
of the world is different from urbanization now taking place
in underdeveloped countries.

11.  A range of economic, political, social, cultural and
environmental factors affect urbanization.
 Urbanization is encouraged socially and culturally
through the media.

13. Housing
Problems of drinking water
Transportation
Education
Problems finance
Increasing crimes

14. Medium term finance
 Medium term finance is define as money for a
period from one to five years.
 The medium term funds are required by a
business mostly for the repair and modernizing
of the machinery.
1. Commercial bank
2. Debentures
3. Loans from specialized credit institutions

16.  Technological environment changes very fast.
 Technological environment affects the manner in
which the resources of the economy are converted
into output .
 Technological environment is self reinforcing .

17.  Increases the productivity.
 Saves time.
 Good quality products
 Improved Communication Processes.
 Increased Employee Productivity.
 Marketing process makes easy through digital
media.
 Easy to control the different branches from one
place with the help of technology.
 Import of technology is also know as ‘technology
transfer’.
 It can be in form of business agreement between to
businesses or MNC’s.
 It can be as trade agreement between two nations.

18. Long term finance
 It is of vital importance for modern business which
requires huge capital.
 It is permanent nature.
 Period is 10-30years.
Purpose:
 To purchase of fixed assets
 To finance the permanent part of working capital
 To finance growth and expansion of business

19.  Share
 a. Equity
 b. Preference
 Debenture
 Public deposit
 Retained earnings
 Term loans from bank
 Loans from financial institutions