Socio-Cultural Changes and Their Effects on Business

Introduction

The term “Socio-cultural change” directly suggests the changes in the social and cultural aspects, where social changes mean significant changes in cultural values, behavior patterns and norms. Cultural changes mean changes that come through the modification of the society through invention, innovation, discovery, or contact with other societies. Also, it says how the culture and societies have changed over a time. Socio-cultural evolution is "the process by which structural reorganization is affected through time, finally producing a form or structure which is qualitatively different from the ancestral form".

Social Change: change in behavior patterns over a time.

Cultural Change: also called repositioning of culture, which means the reconstruction of the cultural concept of a society.

Factors of socio-cultural change are:-

1. Shifting from rural to urban life.
2. From agricultural to industrial economy.
3. An introduction of democratic pattern and their focus on individual freedom and initiative.
4. Keen competition for economic survivals that parents are forced to work.
5. Greater opportunities for personal and professional enhancement,
6. Increased participation of women in outside activities.

Business is an agency, enterprise or firm which are profit minded that includes the provision of selling and purchasing goods and services. Being in business is not only about making sales and generating profits, but it also involves understanding the environment you aim establishing your business. A complete entrepreneur must ensure he or she studies the social as well as cultural attributes of the people that live in the environment they intend starting their business during the feasibility studies. So, if he/she wants to continue his business, it is very important to identify the socio-cultural attributes of the people that live in the place you intend planting your business. If you aren't able to setup a proper research, you might likely project fantastic business with great potential in a wrong environment and that can lead to struggle.

Thus, the major effects of socio-cultural changes in business are:-

Changing Preferences

Consumer taste and preferences is a major socio-cultural factor influencing businesses and business decisions. Things that was popular and fashionable 20 years ago may not be popular today or 10 years down the road. Different styles and priorities can weaken long successful products and services. For example, when creating new products or it will quickly become outdated, a clothing company must continually be aware of changing preferences of the people.

Demographics

Changes in demographics are the another most significant factor in the business. As populations change, for example, markets for popular music and fashions may diminish while markets for luxury goods and health products may increase. Additionally, changes in the percentage of genders and different religious, racial and ethnic groups within a society may also have a remarkable impact on the way a company does business.

Advertising Techniques

Advertising preference is also the another most significant socio-cultural factors that affect businesses in worldwide. It is perhaps the area of business most closely related to socio-cultural changes. The advertising model that may sell in some countries may not be applied in other countries. Hence, wise selection of advertising model is a must. For this, a business owner must understand that appeals to the people that dwell in the community where the business is to site and then design their advertisement to conform to the language of the people. Advertising often seeks to be trendsetting, and to do this, advertising departments and agencies cannot lose or disobey track of the pulse of the societies in which they engage in business. Changes in values, morals and fashions must all be considered when creating outside facing advertising.

Internal Environment and Social Organization

In addition to a company's interactions with the market and its customers, socio-cultural factors also impact a company's inner decision-making process. For example, changing gender roles and increasing importance on family life have led to increased respect for maternity (pregnant women) and even paternity leave with organizations. Additionally, attitudes of the people towards racial discrimination and sexual harassment have changed drastically over the years as a result of the socio-cultural change.

Most communities are organized in such ways that place some people over other people. For instance, in an ideal local community people (villages in Africa), you would have kings, chiefs, subjects and even slaves. So, if for example, you own a business in such communities, if you aim to continue to be in business you must struggle to be always in the good book of the king or even the chiefs in the community. This is so because the words of the traditional ruler of a society are treated as a low by his or her subjects.

Myths, Education and Family setting

A myth is another socio-cultural factor that influences a business. The myth that is generally accepted by a group of people that live in a certain area, that goes a long way to impact the kind of business that can survive in such communities.

The priority placed on education by a group of people that live in a particular area can also determine the kind of business that can flourish in that area. There are societies where the average person has only high school diploma, and also in some societies, the average person have a second degree. The level of education of the people that live in the area where you aim establishing your business helps you with your choice of business, your advertising, and your marketing approach.

Family setting is another socio-cultural factor that influences businesses. For instance; in most of the developed countries, people above 18 years could make their own decisions while in some countries or societies, as long as you still live under the same roof of your parents, they may continue to take decisions for you. So, if you aim to establish a business that appeals to young adults, then it is important you should consider the role of parents in the society you intend starting your business.

Religion and Holy Days

Religion is perhaps one of the most significant factors that characterize the socio – culture of a people. For example; some religion do not allow their people to eat pig meat (pork) so if you start your pig farm in such an area, you cannot make sales. That is why it is important to make feasibility studies before establishing your business in any location.

As a business person looking toward establishing a new business, then he/she should consider the fact that the days set aside for worship can influence your business. For example; the Jewish people don’t joke (strict) with the Sabbath day. So, you must ensure that you are aware of the days of worship of the people that live in the place where you want to establish your business.

Purchasing Power and The Law of the Land

It is very important that you know the purchasing or buying power of the people that live in the area where you intend establishing your business. There is some kind of businesses that can bloom in places where the people that live there are poor and there are some other businesses that cannot flourish in such environment.

For example; if you start your ‘Diamond Retail’ business in the ghetto (formerly the restricted quarter of many European cities in which Jews were required to live) part of town, there is the high probability that you might struggle with such a business because there would be low approving. However, if you start a cargo shop in the ghetto, you can be sure that your business would surely flourish.

The law of that governs a people is advised to be one of the major socio – cultural factors that can affect businesses. For example; if the law of the land prohibits the sale of Alcohol, there is nothing anyone can do other than to direct clear from that line of business. Civilization has made many laws obsolete especial laws that place restricts on the kind of business a female is supposed to own and the position they are to occupy.

Means of Communication

Every community has their own means of communication and the ability for you to key into their style of communication will go a long way to positively affect your business. Much more than the language that is being spoken by a group of people, there are other prominent and unspoken words that carry great importance. For example; some culture popular at a younger person that he present his hand first for a handshake with an elderly person.

Reference

Trigger, Bruce, Sociocultural Evolution: Calculation and Contingency (New Perspectives on the Past), Blackwell Publishers, 1998

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