Factors Affecting Business 1 Social factors i Customs

Factors Affecting Business 1. Social factors (i) Customs and traditions- traditions define social practices that have lasted for decades or centuries. For example, Diwali, Id, Chritsmas, Guru parv provide financial opportunities for greeting cards companies, confectionary, dresses etc.

Social factors (ii) Values refer to concepts that a society holds in high esteem. For example, individual freedom, social justice, equality of opportunity and national integration which translate into freedom of choice in the market, business’s responsibility towards the society and nondiscriminatory employment practices.

Social factors (iii) Social trends present various opportunities and threats to business enterprises. For example, the health-and-fitness trend has become popular among Large number of urban dwellers. This has created a demand for products like organic food, diet soft drinks, gyms, bottled(mineral)water and food supplements. This trend has also harmed business in other industries like dairy processing, tobacco and liquor.

Identify social factors

2. POLITICAL FACTORS Political environment includes political conditions such as government stability , peace in the country , government policy towards business and foreign trade and investment. There maybe uncertainty of business activities due to political unrest and threats to law and order. Political stability, thus, builds up confidence among business people to invest in the long term projects for the growth of the economy.

IMPACT OF CHANGES IN POLITICAL FACTOR ON THE BUSINESS There has been a demand for reservation of jobs for SC/CT in the private enterprises • The Andhra Government took keen interest on boosting IT industry at Hyderabad, because of which the city is now also known as Cyberabad • withdrawing of products of MNCs such as Coca Cola discontinued in 1970, allowing Pepsi in 1989 , after 1991 opening the way to MNCs in a big way • Share prices at the stock market crashes due to instability or fall of the government •