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Name: Ketan K.

Naik
Roll No:14307A0009
MMM
Subject: International Business
Topic: OFFSHORE CENTRES OF SINGAPORE,
MAURITIUS AND MALAYSIA

SOCIAL ENVIRONMENT

in Thailand. 2) Language :. Major social factors considered under international business are as follows :- 1) National Taste :. White indicated death in china and Korea but it is the colour of bridal dresses in Europe.Cross culture and cross border operations call for necessary language skills. Green is the favourite colour of all the Arab countries. e. Prior to promoting the brand. one has to take into account the socio-cultural background of a specific nation and different interpretations of a name in the local language. General Motor’s slogan “body by fisher” means “corpse by fisher”. and hoardings although communism is in no way relevant to modern Russia. uncommon in other countries. One can see this in Hyundai or LG factories in India. Red is associated with danger in . posters. 3) Values and Beliefs :. red is still widely used in Russia.g.It is also important for companies to understand the significance of different designs and colours in different countries. In Japan. blue is perceived as feminine in Holland and masculine in widen. and Pepsi Cola slogan “come alive” means “come out of the grave”. South Koreans have learnt Indian Languages to operate in India. For example. Companies also have to change their brand names and slogans in different countries. but is associated with illness in Malaysia although it is a Muslim country. in banners. Green is favourite colour in the Muslim world.SOCIAL FACTORS AFFECTING INTERNATIONAL BUSINESS OPERATIONS The social environment primarily affects the strategic management process within the organization in the areas of mission objectives setting and decisions related to products and markets. people prefer black shampoo. Nestle brews different varieties of instant coffee because people in those countries have different tastes.

The performance of the iPod of Apple hit the roof in terms of revenue generation due to female customers. 6) Female Workforce :. For example. as it influences the cost incurred. sex ratio. because it was felt that women have an aesthetic taste for colours in the household paint segment. but has completely different connotations in the west. women no longer have to depend on men to make decisions about what to buy. Another example is ‘swastika’. Indian women in IT-enabled services and handicrafts. Barbie generate huge revenues through the children’s segment of affluent countries. which is considered sacred in India. Indonesia. The female workforce is very strong in various sectors in many countries. they can make their own decisions about whether to purchase any consumer product or durable. An argument holds in the case of educating the consumer about the manufactured.many countries but it is a favourite in Russia. Chinese women in the soft toys and ceramics and Indonesian women in garments and . This is an important factor. For a country with an educated population. supported by technical services.The most spectacular change that has taken place in the current era is the empowerment of women throughout the world. Different companies concentrate on different segments. For example. Dulex. 5) Literacy Rate :Countries with a high literacy rate experience a better standard of living. family size and occupation influence the business of many companies. With economic independency. the amount of training required for the staff will be far less than in the case of the country which has a low literacy rate. Here the need is for standardizes goods. 4) Demography :. In China. a well-known brand of paint in Europe was promoted through campaigns directed at women. women are major contributors to the GDP. Russia and Thailand.A number of demographic factors such as age.

8) Impuse Buying :. It is a major challenge to international businessmen to provide benefits to lure impulse buying. electronic gadgets. ask and by. 7) Double Income Families :. people need instant items. McDonald and Kentucky Fried Chicken invariably rule the households of double income families throughout the world. They see. who have brought great success to their countries.As the household income increases. . This is especially true for packaged food items. health equipment. household appliances. the demand for the number of products increases proportionately. Pizza Express.Benefit-oriented buying is taking place everywhere. Throughout the world. Pre-planned shopping and scheduled purchases are gradually going away. Japanese entertainment electronics and French perfumes dominate in the whole of Europe and North America.paperwork.

The following points highlight the significance of the social environment in moulding people’s behavior and its impact on business organizations : 1) Social environment creates or influences the attitude. riots. For example. personality. thought process. 3) People’s attitude towards business and work is also strongly influenced by the culture in which they areborn and brought-up 4) The extent of collectivism and individualism in the thinking and behavioure of people is strongly influenced by their culture . use of mass media and the role of business in society are strongly influenced by the culture of a society. attitude and actions towards social responsibility are also strongly influenced by the sociocultural ethos of society .IMPACT OF SOCIAL ENVIRONMENT ON INTERNATIONAL BUSINESS When a company operates in a foreign country. the high level of consciousness in some societies about global warming and climate change has forced business to developed green . corporate governance practices . 2) It determines or influences consumption patterns and demand for goods and services in a society. it must consider the possible effects of many social variables such as civil war. union militancy. and antagonism between social classes. 6) Demonstration of ethical behavior in business decisions. unequal income distribution. attitude towards consumerism. and behavior of the people who are part of it. 5) Concern for environment pollution . religious divisions. This further affects the behavoiure of individuals as consujmers. disorders caused by tribal strife.

products and services for those societies .friendly. 7) Awareness about the rights and the work ethics of the members of society are strongly affected by its socio-cultural milieu. 8) Parameters of social division like the caste system too have an impact on the attitude and thinking of people as consumers of goods and services .3 9) Although different regions countries and states have their own distinct culitures yet some elements of particulars culture are getting globalised with the increased movement of people and the global spread of the due to the use of communication technologies. However they will have little impact in a society where people are not aware about the impact of their lifestyle on the environment . Social environment also affects the motives to make a buying and the communication strategies needs to be customized as per the varied social traits for Different markets. The social responsibility of environment. . business is likely to help them to flourish inb such societies such more environment conscious. The socialbelifes and aspirations also vary significabtly among countries and the marketing mis has to be tailor made to suit the social norms of the target market.