 An entrepreneur generates an idea / identifies opportunities

Raises capital
Avail resources
Establishes a physical environment
Converts ideas into profitable investments
Aspects having direct or indirect bearing on the business
Are of:
Micro environmental factors
Macro environmental factors

Identifying these factors are of critical in nature, requires to conduct a lot of research and
analysis
PESTL analysis
SWOT analysis
Porter’s 5 forces analysis
Social and cultural environment refers to the
influence exercised by certain social factor which
are “beyond the companies gate”

Culture refers to dance,

drama, music
and festival include
Knowledge, belief,
art, moral, law, customs &
others capability
 Culture – Acc. To Taylor “ Culture of civilization is that
complex whole which includes,belief,art,morals,law,custom
knowledge and other capabilities and habits acquired by man
as a member of the society.”

 ELEMENTS OF CULTURE :
 1. Knowledge & beliefs – Includes myths , beliefs & scientific
realities.
 2. Ideals – refers to societal norms which define what is
expected, customary, right in given situation.
 3. Preferences – Things which are attractive or unattractive as
objects of desire.
1. Learned : Culture is not inherited or biologically based,
it is acquired by learning and experience
2. Shared : People are member of a group, organization,
or society share culture, it is not specific individual.
3. Trans generational : Culture is passed on from one
generation to the next.
4. Symbolic: Culture is based on the human capacity to
symbolic or use one thing that represent another.
5. Adaptive : Culture is based on the human capacity to
change or adapt, as opposed to the more genetically
driven adaptive process of animals.
Culture and
Globalization
When business goes International work motivation, profit motivation, business goal
gift giving, custom, greeting, body gesture, colour and numbers changes.

U.S. Japan
Company Team in Sport Family in Village
Business goal To Win To Survive

Employees Players in team Children in Family

Human Relation Functional Emotional

Competition Cut throat cooperative

Work motivation Individual Group Income
Income
promotion Acc. To Length of Service
Abilities
Pay Service & Award of patience and sacrifice
Result
 Cultural Adaptation – Term refers to the manner in which a
social system or an individual fits into physical or social
environment.
› Eg. While introducing new products, techniques, ideas,
segmentation one should consider the extent to which the
different categories of consumers adapt to the new things or
environment.

 Cultural Shock – Environmental changes sometimes produce

culture shock which leads to confusion, insecurity and anxiety
caused by strangeness of new environment.
 Cultural Transmission – The elements of culture are
transmitted among the members of the culture from one
generation to the next and to the new members admitted in
the society. As the time goes culture accumulate more
techniques, ideas, product and skills.

 Literature, Film, T.V, Social institutions, advertising, mkting

techniques, etc. play a important role in cultural transmission.
 Cultural Traits :-

 1. Masculine & Feminine Culture

 2. Universalism vs. Particularism
 3. Individualism vs. Communitarianism
 4. Neutral vs. Emotional
 Religion – The cost of ignoring certain religious aspects
could be very high, sometimes fatal in international business.

 E.g.. 1 – When an American fast food chain was planning to

enter India, one political party stated that it would oppose the
mkting of beef product in the country.

 E.g. 2 – Christians do not consume non-veg during lent (50

days preceding Easter).

 E.g.. 3 – Most Hindus do not purchase goods during Rahu-

Kala .
 E.g. 4. – The customs of marriage, naming
ceremony of child, festivals etc. wary
significantly between religions. These have
implications for many types of business like
textiles, jwellery, catering, consumer durables
etc..
 Ethno domination – In many countries one or other
industry or trade is dominated by certain ethnic
groups.

 E.g. 1 – The automobile spare parts business in India

is dominated by Sikhs.

 E.g. 2 – Punjabi restaurant's, chinese resturants,

Udupi restaurants are popular in several countries.

 E.g. 3 – The business in India is particularly

dominated by Vaishya Community.
 Language – Differences in language is a very
important problem area in business.

 E.g. 1 – Ford’s third word truck brand name Fiera

meant “Ugly old woman” in Spanish.

 E.g. 2 – The Arabic language is read from right to

left and many Arabians sequence things from right to
left. A multinational blundered in the middle east
when in the advertisement of its detergent it pictured
soiled clothes on the left, the box of detergent in the
middle and clean clothes on the right.
 Consumer Preferences, Habits and Beliefs
 What is most likes by people of one culture may not be liked by
those of other culture. Many companies modify their products and
promotion strategies to suit the tastes and preferences of the
population of other countries.

 E.g. 1 – Nescafe has a 3/4 share in Mumbai but poor mkt. share in
Banglore & South whereas Bru has a good market share in
Banglore and not in Mumbai & North India. The reason is Nescafe
add. projects cosmopplitan image of the product whereas Bru add.
projects South Indian family particularly Tamilnadu culture.
 E.g. 2 – Even when a product serves the same
purpose, the relative importance of various
product attributes may differ b/w markets.
Goodyear tyres for example stress tyres safety in Britain,
durability and mileage in U.S and agile performance in
Germany

E.g. 3 – It is pointed out that much better quality of

packaging is needed in Japan than in U.S. as U.S peoples
sees the pack as a means of getting the product home.
THANK YOU