Effect and Influence of Social Factor on Business Essay

Effect and Influence of Social Factor on Business - Essay Example This essay focuses on the significance of the social aspect in the PEST analysis in regards to a business from apparel manufacturing industry. Environmental analysis is a marketing function which includes study of all external factors that may determine the success or failure of a business. Relatively qualitative in nature, this analysis involves identifying of environmental variables, scanning them, analyzing and finally forecasting of business situation. Environmental analysis is significant for a business to survive and grow. This analysis helps in identifying the probable opportunities and threats to a business. It opens new avenues for business activity expansion and also provides opportunities for discovering and exploitation of business. PEST analysis is an acronym for â€Å"political, economic, social and technological.† Its purpose is to conduct analysis and identify various external factors that might affect business and also to help in market research.Social aspect of PEST analysis includes factors such as age distribution, income level, education, diet and nutrition, religion, population growth, consumerism, social class, and expectation of society from business. It also includes buying trends, change in lifestyle, cultural aspects, ethics, publicity factors, advertising, media, career attitudes, health consciousness and emphasis on safety. Social trends to a great extent affect demand for a product The social factor from PEST analysis creates various opportunities at a global, national and international level. ... It enables business and organizations to understand future problems and face them boldly. This analysis helps organizations in expanding their business while contributing towards social groups and causes. Environmental analysis keeps guiding the organizations from time to time about changes in socio economic conditions at the same time enabling them to take benefit of technological developments, government policies etc. Apart from providing various opportunities environmental analysis also helps business in identifying threats from competitor and other sources. Threats are uncontrollable and can put survival of organization or business at stake. Environmental analysis overcome organization’s threat and also helps in identifying competencies of business. Identification of one PEST factor PEST analysis is an acronym for â€Å"political, economic, social and technological.† Its purpose is to conduct analysis and identify various external factors that might affect business and also to help in market research. Out of all the factors from PEST analysis I am considering Social factor for discussion about how it affects business. Social aspect of PEST analysis includes factors such as age distribution, income level, education, diet and nutrition, religion, population growth, consumerism, social class, and expectation of society from business. It also includes buying trends, change in lifestyle, cultural aspects, ethics, publicity factors, advertising, media, career attitudes, health consciousness and emphasis on safety. Social trends to a great extent affect demand for a product (Miller 1992). Industry considered Considering apparel manufacturing industry for