Question

Discuss how SCDE (Social, Cultural, Demographic, and Environmental) can give an impact towards the organization’s strategic decision. Please explain in more detail and include relevant examples.

Answer 1

Businesses operate in vacuum, so any business strategy is based on the world in which they work. Advertising, It is the most influenced market feature, which is also similar to the socio-cultural business climate. You may not want to face outdoor advertising that disrupts and engenders conflict in society. In the case of internal business decisions, you would have to develop your company policies in compliance with local law and that suits most people.

Demographics deals with the characteristics of the population in a geographic region and involves various variables such as age, ethnicity, employment, etc. In addition , the majority of companies consider data on these variables within the target demographic variable of concern because it may influence the growth and performance of a company.

For example, India has around 16 percent of the world 's population and is second to China. India also has a comparatively younger population compared to China. Several foreign companies are also targeting India as a potential market for various products / services.

A variety of factors that have little or no control over the marketing practices of a company Taken together make up the external marketing climate, which includes legislative and political intervention, economic conditions, competitive weaknesses, technological change and social and cultural pressures Successful marketing also relies on the perception of customer behavior in decision-making processes. They take a number of steps to make a decision on the purchasing of a product: identification of needs, quest for knowledge, appraisal, purchase and post-purchase appraisal.