3.7.6 Analysing the external environment to assess opportunities and threats: social and technological

As country becomes increasingly wealthy people tend to move away from rural areas + move to urban areas. Urbanisation means more concentrated geographical markets for businesses to serve. More highly urbanised countries, can mean no longer viable to maintain physical premises in rural areas.

Developing countries eg China, where urbanisation rap, increased concentrations of population make it easier to identify large enough local markets to target.

Term used to describe people moving from one country to another. Inward migration (immigration) becomes politically important every time there is recession.

For businesses, primary concern regarding immigration: that it should be barrier-free. 

Migration to UK had major impact on structure of consumer markets + labour market - most major supermarkets intro'd specialist sections in-store to cater for needs of loval migrant populations. Net migration in UK enabled UK businesses to keep wage costs down as UK's available labour force grown.

Several key enablers allowed this growth:
 - growth in use of internet + accessibility via wide range of devices
 - new delivery services enabled next-dau delivery + supermarkets used tech to offer 1 hour windows for convenient delivery
 - growth of social media + apps made it possible to enjoy social shopping experience from home

Analysis: Selling online taken off b/c offers convenience -> growth in demand for online purchasing. Online retailing cheaper. 

Convenience

Mobile connected world

Social change + clothing

Changes in consumer lifestyle + buying behavior: Analysis: split into 2 categories: changes to what is bought + how it's bought. With adjustmennts made to product + place, op changes needed to range of products sold + methods of distribution.

Urbanisation -> opps for UK firms in developing markets

Growth of online business -> greater use of digital tech

Convenience -> innovation and/or greater use of digital tech

Marketing advs

Positive effects on workforce

Reduced profitability

Reduced growth aspects

Rejection of CSR as tool of PR

Rejection of CSR as distraction from truly moral purpose

Real pressure comes from real customers rather than media of gov. Customers need to be more consistent about buying behaviour.

Shareholder concept: Belief that organisation's sole duty is to investors (decisions should be made in best interests of shareholders alone).

Stakeholder concept: Alternative view - places emphasis on need to meet objectives of wider group. Suggests managers should taken into account responsibilites to other groups when making decisions. Belief - firm can benefit from co-operating w/ stakeholder groups + incorporating needs into decision-making process eg:
 - improving working life of employees through more challenging work, better pay + greater responsibilities
 - giving smth back to community to ensure greater co-op from local inhavitants whenever business needs help
 - treating suppliers w/ respect + involving them in plans so firm build LT relationship -> better-quality supplies + better all-round service

Bottom to top:
 - economic responsibilities: make sure to have right balance b/ween revenue + costs, + right diversity of income statements
 - legal responsibilities: make sure to obey diff laws in countries you operate in, prioriting protection
 - ethical responsibilities: be willing to go beyond min legal requirements to meet moral duties
 - philanthropic responsibilities: actively seek out ways to contribute to your section of society