Lesson 14 - Socioeconomic Factors Affecting Business And Industry

• Socioeconomic Factors are characteristics that define the quality of life in a society. They influence the behaviors, attitudes, trends, taste and lifestyles of individuals. In fact the different class segments of the societythat is, upper class, middle class and lower class-are attribute to the socioeconomic factors.

Income

•Income is the amount of money individuals earn from their daily economic activities, be it employment, business or investments.

Education • Education equips members of the society with the skills and knowledge they require to be employed in different jobs and professions. The standards of education in your society depend on the availability and accessibility of educational amenities.

Occupation • Occupation refers to the type of jobs people perform by virtue of their skills, experiences or choice. You may be self-employed or work as an employee of an individual or organizational entity. • The different types of occupation dedicate the income earned by people in the society. And they are: High-salaried individuals, and Selfemployed individuals.

OTHER FACTORS: 1. ECONOMIC CONDITIONS 2. SOCIAL ENVIRONMENT 3. GOVERNMENT 4. ECONOMIC CHANGES 5. POLITICAL CHANGES 6. CHANGES IN TECHNOLOGY 7. ENVIRONMENTAL FACTORS

Business Viability and Its Effect to the Community

Viability is defined as the ability to survive which in business sense is the financial performance and position.

A viable business has great effect to the community. Some of these are:

• It provides a community jobs in the business sector. • It produces taxable income for the community. • Government continuously makes Improvement in community infrastructure. • It contributes more opportunities for the people in terms of services. • It helps in the establishments. • It leads to improved business sevices to community. • It improves community life.

Recommendations in Maximizing Positive Impact to Community * Divert a proportion of revenues to a good and worthy cause for community development and outreach programs. * Find creative ways to improve the life of firms' employees and community. * Establishments of linkage between business and community. * Establishment of scholarship grants. * Help build customer attraction, satisfaction and loyalty. * Reduce risks of negative publicity, boycotts, and a tarnished public image. * Improve product image, brand name and reputation.

Minimizing the Negative Impact on Business

1. First Things First: Get Your Act Together - Identify the problem and correct it at an operational or product development level.

2. Follow Up, Speak Up, Engage - Engaging the aggrieved customer with a timely, relevant, and contextual response that seeks to provide the individual with both an explanation and a resolution. - Taking into account both spoken and unspoken concerns of the user who provided the feedback.

3. Let Time Runs Its Course - Relying on the rules of recency and encourage new customers who have experienced outstanding service or received superior products to provide their feedback.