Explain how the social environment can affect businesses?

2.3.1) The social environmentof business includes social factors like customs, traditions, values, beliefs, poverty, literacy, life expectancy rate etc. The social structure and the values that a

Society cherishes have a considerable influence on the functioning of business firms. For example, during festive seasons there is an increase in the demand for new clothes, sweets, fruits, flower, etc. Due to increase in literacy rate the consumers are becoming more conscious of the quality of the products.organisations are at the centre of changes taking place in the social environment therefore organisation must be aware of the culture, needs , preferences, purchasing patterns ect of consumers. Management must be fully aware of the social composition for both its consumers and its labour force in order to establish the best advantage for its customers and employees.