of factors of the society in which the business is located. Social and cultural environment of society affects the business. It is dynamic and includes the behaviour of individuals, the role and importance of family, customs, traditions, beliefs and values, religion and languages, the ethical values. The literacy level, and the social attitudes of the people of the society.
The socio-cultural environment also includes the following; ) The social institutions and groups ) Family structure prevalent in the society ) Role of marriage as an institution ) Caste system in the society ) Customs , beliefs and values ) Demographic factors which includes the size, composition, literacy level, distribution and mobility of the population ) The lifestyle of people and their tastes, likes and preferences. III. Political and Legal environment – The framework for running a business is given by the political and legal environment. The success of a business lies in its ability to adapt and sustain to political and legal changes.
The legislative, executive and judiciary are the three political institutions which directs and influences a business.The major elements of the legal and political environment are ) Political stability is reflected by the following parameters like the election system, the law and order situation, the role and structure of Military and Police force, the declaration of President’s rule, civil war etc ) Political organisation refers to the ideology and philosophy of the political parties, the government, the role and degree of authority of bureaucracy, the level of political consciousness among citizens and 12th Commerce Unit - - . . PM used in conducting market research for understanding the special needs of the customer. Digital and social media are used as a platform for advertising and promoting the products/services.
Data- mining and data analytics are used to know the customer better. Technology is used in managing inventory, storing goods in warehouses, in distributing goods and in receiving payment. This dynamic environment also includes the following ; ) the level of technology available within the country ) rate of change in technology ) technology adopted by competitors ) technological