Social and Cultural Difference

Social and cultural difference

* Language- south east Asian countries in Asia for example have different languages, example in Thailand most people speak Thai, but across the border in Malaysia people speak malay instead of thai. So there might be some language barrier between both this nations, that also could affect business organizations,

* Religion –Malaysia being a Muslim country mainly follows Islamic ways and believes but across the border in Thailand most people are Buddhism, these believe can be a problem for organizations.

* Values & attitudes –In Malaysia most people like to purchase foreign products, as a result BMW, Mercedes and Bosch have really high sales numbers every year and it seems to increase every year.

* Manners and customs- in Thailand manners and customs are taken very seriously most people who live here are very polite and respectful but in Malaysia things are slowly changing,

* Material elements-it’s easier to do business in Malaysia because of its infrastructure and education,

* Aesthestics

* Education - education level in Malaysia may be a little higher compare to Thailand,

External environmental factors

Social factors- demographic characteristics and values.

Economic factors- income, expenditures, and resources that affect the cost of running a business.

Technological- inventions and innovations from science or engineering

Competitive- competition in the area

Regulatory forces- restrictions, state and federal laws placed on business with regard to the conduct of its activities

External Environment: Interest rates - how businesses are affected

Interst rates remove some of the profits that are made in businsses that make loans to opperate. Interest rates also make less money available to people that are paying of houses resulting in their not purchacing as much from businesses. this also flows on to renters of homes. the higher the rates the lower the economic activity

The effect of a...