Many different aspects come into play here, and changes can have insurmountable repercussions on the company.
Social evolution, changes in cultural factors and values, the sudden appearance of unexpected phenomena are all elements which alter the behaviour of individuals. An entrepreneur who is able to foresee these variations can gain competitive advantage to the detriment of his competitors. The general indication is that attention must be paid to significant variations in the social and cultural environment, when these variations create an opportunity which can be exploited or, even more so, when they represent a substantial threat to the success of the company.
Possible social and cultural factors that could exert significant influence on the business environment are:
- income distribution
- demographics, population growth rates, age distribution
- labour/social mobility
- lifestyle changes
- attitudes to work and leisure
- fashion and fads
- health and welfare
- living conditions.