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External Factors> Social Environment

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Topics

  • Introduction
  • Cultural and Social Factors Affecting Business
  • Current Social Trends in India
  • Key Point Summary
Maharashtra State Board: Class 11

Introduction

Business is part of society and functions within the larger social system. Businesses must adjust to social changes or risk losing customers.

Two-way relationship:

  • Society → Business: Society’s values, customs, trends, literacy, and living standards affect business operations.
  • Business → Society: Businesses influence society by creating jobs, setting trends, improving living standards, and shaping lifestyles.
Maharashtra State Board: Class 11

Cultural and Social Factors Affecting Business

Maharashtra State Board: Class 11

Current Social Trends in India

Maharashtra State Board: Class 11

Key Point Summary

  • Business and society influence each other.
  • Culture, class, literacy, living standards, values, and trends are part of the social environment.
  • Understanding social changes enables businesses to identify opportunities and mitigate risks.
  • Traditions and values shape what products or services succeed in a market.

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