Social Factors - these are the changes that happen in the society that the business operates in.

Examples:

Demographic Changes - the changes in distribution and size of the UK population will have an effect on demand for different products, as well as affecting the workforce.

Changes in the age of the population - if a country has an aging population then the spending habits of that country will differ a lot more than if there are more younger people in a country.

Ethinic Diversity - when new cultures of people come to a country they bring with them new needs and wants. Examples of this are how supermarkets now stock more foods from different countries that were not popular before immigration.

Changing Patterns of employment :

Education - a larger proportion of young people now go onto further education meaning there are more highly skilled workers in the labour market.

Need for Flexibility - in recent years more and more workers have started working part time

Examples of impact on areas of business:

• Marketing - the age or income distribution in society will have an effect on the type of marketing and product a business sells
• Financial - Changes in social habits will have an effect on the cash flow of a business
• People - changes in employment patterns like more part-time workers will affect consumer spending
• Operations - changing attitude to work, such as increased holiday expectations will have implications for business