In: Economics
What are some issues and trends in global sociocultural issues? Why must a company be sensitive to the sociocultural environment within the host country? What affect does sociocultural sensitivity have on a company's operations or sales within a host country?
Following are some issues in global sociocultural issues-
1. Changing preferences
Rapidly changing preferences of consumers is one of the important issue that affect business decision. What was popular 5 or 10 years ago may not be popular today or 10 years after.
2. Demographics
Change in demographics is one of the significant factor in the today's business world. Change in percentage of genders and different racials and religious groups have a significant impact on the way a company does business.
3. Advertising techniques.
It is that area of busienss which is mostly in touch with socio cultural changes. Advertising departments and agencies cannot lose track of the pulse of societies. Morals, values and fashion must all be considered when creating advertisement.
# A company must be sensitive towards sociocultural environment within the host country. In any country such issues are very sensitive. For a company to survive in the host country, it is necessary to respect and follow the socio cultural issues. Ignorance of socio cultural factors can lead to negative consequences mass boycott of company's product or services and so on. These socio cultural factors include customs and tradition, ethics, values, norms , preferences etc.
# sociocultural sensitivity can have a both positive or negative impact on company's operations or sales within a host country. Ingnorance of these issues can have negative consequences.
For example
McDonald's, one of the largest chains in the world started its operations in india in 1996. Although the company had been in business for 40 years, during which it had expanded to different parts of the world, its foray into the Indian sector was met with skepticism. The main reason why people in India didn't give McDonald's a chance in India was because most of the McDonald's restaurants around around the world served beef in their burger. In India, with its hindu majority population, considers cow as sacred animal and vegetarianism is taken so seriously that many vegetarians avoid sitting with someone have non vegetarian meal.