CAT / FIA FBT Syllabus A. The Business Organisation, Its Stakeholders - Social & Demographic trends - Notes ^{1 / 3}

Key social and demographic issues include:

1. population

2. wealth

3. education and training

4. health

5. social structure, attitudes, values and tastes

1. Population

   What causes population to grow?

   • Higher birth rates

   • Lower rates of death

   • Immigration

     Due to improvement in technology and in particular the pharmaceutical area a lower rate of death is resulting during the years. Also, education about nutrition helped in extending the life expectancy for both males and females. 

     There is an improvement in the general social conditions like the conditions of housing (or shelter).

     A growing population offers a larger labour market or “workforce”. 

     Therefore an increase in modern day birth rate would mean younger people within the workforce such as in the case of Ireland. 

     This is compounded by a falling death rate and more elderly people continuing to work.

2. Wealth

   Economic growth often results in higher disposable incomes with the knock an effect of greater demand for (most) products.  

   The four fastest growing economies in the world are the “BRIC” -

   • Brazil

   • Russia

   • India

   • China

3. Education and Training

   An educated workforce is a key driver of economic growth, e.g. in China 99% of the youth population in now literate compared to 70% in the 1980s.  

   Increasing standards of education and greater access to IT have made the internet a major channel for selling and advertising.

4. Health

   In many western countries the population is becoming increasingly overweight.  This places greater demands on healthcare providers.  

   More than 12% of South Africans are infected by HIV.  South Africa's declining life expectancy (currently 51 years) is a major concern, especially as the population structure has changed with fewer people in their middle ages.  

   This is normally the most economically active and skilled group who support the elderly and younger groups.

5. Social structure, attitudes, values and tastes

   1. Many countries are finding the demand for housing growing faster than the population

   2. An increasing concern about the ozone layer, testing on animals

   3. Many women are back to work

   4. Changes in public attitudes towards recycling have resulted in opportunities for recycling firms

   5. Changes in tastes and fashions can have a damaging effect on organisations that fail to anticipate the changes