5.1 Social environment:
The social environment consists of the traditions, values, beliefs, customs, and literacy rate among other things. For a community, these values, traditions and beliefs make a huge impact as they dictate how a community works as a single unit. Similarly, an organization can work as a collective unit with its peers in the business circle if it focuses on and takes care of these social factors such as beliefs, customs, traditions and values. What social values a society has and its social structure have a huge bearing on business organizations and its functions. For instance, we can see that during festive seasons there is an added in the demand for things like flowers, clothes, sweets, etc. now that there is a significant increase in the literacy rate; consumers are aware and conscious of the quality of products available. More nuclear families with a single child can be seen due to the change in the family composition leading to more demand for household products and items. The patterns of consumption, the dressing and lifestyles of people vary significantly in different social structures and cultures. For an oil marketing company, various elements make a difference within a particular social environment like events and festivities that may involve travel or transportation, etc.
Determining to what extent the social environment is conducive to do business is very important for organizations. Business can profit only if the social environment of the business supports its growth and progress. It is very important that the community in which a business decides to operate in is stable and there are no violent aspects in the community.