IGNOU M.

Com
IBO-01
BY: SIMRAN SETH
(UGC NET QUALIFIED IN COMMERCE)
 SOCIO-CULTURAL ENVIRONMENT
Per capita income in two countries may be the same, yet the consumption
patterns in these countries may differ. Socio-cultural forces have
considerable impact on products people consume; designs, colors and
symbols they like; dresses they wear and emphasis they place on religion,
work, entertainment, family and other social relations. Socio-cultural
environment influences all aspects of human behavior and is pervasive in all
facets of business operations. Culture can be defined as a "sum total of
man's knowledge, beliefs, art, morals, laws, customs and any other
capabilities and habits acquired by man as a member of society." It is a
distinctive way of life of a group of people, their complete design of living.
ELEMENTS OF CULTURE
Some of the important elements to understand a
country's culture are: language, aesthetics,
education, religions and superstitions, attitudes and
values, material culture, social groups and
organizations, and business customs and practices.
LANGUAGE :
Language is a medium of communication and
business is not possible without communication.
Diversity in a language in a society often creates
communication problem for business firm and its
manager. The same word has different meanings in
different language which significantly affect business
operation in particular society.
 AESTHETICS :
Aesthetics refer to the ideas in a culture concerning beauty and good taste
as expressed in the arts -music, art, drama and dancing and the particular
appreciation of color and form. African music is different in form to Western
music. Aesthetic differences affect design, colors, packaging, brand names
and media messages. For example, unless explained, the brand name
FAVCO would mean nothing to Western importers, in Zimbabwe most
people would instantly recognize FAVCO as the brand of horticultural
produce.
EDUCATION :
Education refers to the transmission of skills, ideas and attitudes as
well as training in particular disciplines. Education can transmit
cultural ideas or be used for change, for example the local university
can build up an economy's performance. In general, educated
people have been found to be more sophisticated, discriminating
and receptive to new products and ideas. Availability of educated
manpower like skilled labour, technicians and professional is also
dependent on the country's education level.
RELIGION :
Religions are a major determinant of moral and ethical
values and influence people’s attitudes, habits and
outlook on life which are reflected in their work. Religion
influences food habits, dress and travelling. Religion also
shapes the attitude towards work, consumption, individual
responsibility and planning for the future.
ATTITUDE AND BELIEFS :
An attitude can be defined as an effective reaction to a
person, object, idea or activity. Attitude can be positive or
negative. Belief is the descriptive thoughts held about
something based on opinion knowledge or faith. Belief reflects
view point about object, ideas, people and events. 'What is
important and desirable' differs from society to society and is
largely governed by the attitudes and values existing in a
society.
 POLITICAL ENVIRONMENT
The government reserves the right of allowing a foreign firm to
operate in the country as well as laying down the manner in which a
foreign firm can conduct business. To gain an insight into a foreign
country's political environment, one needs to analyze factors such as:
• Form of Government & Political Party System.
• Political Ideology & Role of Government.
• Political Stability.
• Political Risk.
• Domestication.
 LEGAL ENVIRONMENT
Managers must be aware of the legal systems in the countries
in which their firms operate, the basic nature of the legal
profession (both domestic and international) and the legal
relationships that exist between and among countries.
Common Law originated in the UK and is based upon tradition,
custom and usage whereas Civil Law originated with Romans
and is based upon detailed set of laws that includes rules for
conducting business.
THANKYOU