A B M - 1 2 ( G R O U P 3 )

SOCIO-ECONOMIC
FACTORS AFFECTING
BUSINESS AND
INDUSTRY
Socio-economics (also known as social economics) is the social science
that studies how economic activity affects and is shaped by social processes.
In general it analyzes how modern societies progress, stagnate, or regress
because of their local or regional economy, or the global economy. Societies
are divided into three groups: social, cultural and economic. It also refers to
the ways that social and economic factors influence the environment.

“Socio-economics” is sometimes used as an umbrella term for various areas

of inquiry. The term “social economics” may refer broadly to the "use of
economics in the study of society". More narrowly, contemporary practice
considers behavioural interactions of individuals and groups through social
capital and social "markets" (not excluding, for example, sorting by marriage)
and the formation of social norms. In the relation of economics to social
values.
The first step to understanding what socioeconomic factors is
to understand social economics. This is a specialized branch
of economics that concerns itself with studying the intimate
relationship between economics and social behavior. Such
things as ethics, social norms and different social philosophies
have an impact on how consumers behave in an economy and
the eventual shape that economy will take. The study of social
economics seeks to predict what kind of results to expect
when the society has been changed. It does this by studying
politics, history and other social sciences.
Socioeconomic factors are, therefore, the social and
economic factors that shape and determine the dynamics
a society will experience. These are factors that affect
the behavior of a particular group, also known as a
socioeconomic class. Perhaps the most interesting
behavior of members of a socioeconomic class is their
behavior as consumers. Different socioeconomic classes
will generally have different priorities, and this will affect
how they spend their money.
 SOCIOECONOMIC
FACTORS
Employment
The first socioeconomic factor is employment. Your employment is your job.
What you do for a living. Your employment status and your particular
occupation has a large impact on your health. For example, people with
physically active jobs, such as a labourer or a personal trainer are more likely
to complete the recommended 30 min a day, 5 days a week for vigorous
physical activity. However, a high level executive who works long hours and
sits at a desk all day is less likely to do physical activity, is more likely to be
stressed and have a poor social life.
 SOCIOECONOMIC
FACTORS
EDUCATION
Education is another socioeconomic factor that determines your health. Not
only will education influence your choice of employment, but your education
will directly impact your health. Education does not just refer to your level of
education. That is, it does not just refer to whether you complete your high
school, go to University etc. Your education and health can be specific.

Generally speaking people who have lower levels of education, will also have
lower levels of health education, but this is not always true.
 SOCIOECONOMIC
FACTORS
INCOME

The final socioeconomic factor is income. Income will dramatically

influence and help determine your level of health. Income relates to
the amount of money coming into your bank account and often the
more you earn the better your health can be. People with higher
levels of income can afford many of the health care services that are
not completely covered by Medicare.
ECONOMIC FACTORS AND
THEIR EFFECT ON BUSINESS
Economic factors are an essential part of all business analysis. These are
the main factors considered when a company makes financial decisions.

These factors are connected to money, goods and services. They affect
businesses on a micro-level, but they are a lot more powerful than that –
they also affect the entire 7 economy on a macro-level. The economy,
whether a local economy or a global one, will pretty much be the
determining factor in the details associated with the operation of a company,
such as the value of its assets, consumer demand and even taxes.
ECONOMIC FACTORS AND
THEIR EFFECT ON BUSINESS
Some economic factors you must think about in your business include
exchange rates, interest rates, recession, inflation, taxes, and demand and
supply. Here is a closer look into three of these factors and their connection
to businesses:

INTEREST RATES
Interest rates are everywhere, and are imposed by many different people. In
fact, banking institutions are obsessed with knowing what the status for
interest rates in the economy is for a good reason. It is how they determine
their lending practices. It is also good information for a company that relies
on debt capital to finance ambitious projects.
ECONOMIC FACTORS AND
THEIR EFFECT ON BUSINESS
EXCHANGE RATES

This is a slightly more nuanced topic than that of interest rates. At the heart
of it, exchange rates are an important factor to consider for any business
involved in importation and exportation of various goods and services. When
exchange rates fluctuate, they affect the ability of a company to pay its
international suppliers in a satisfactory manner. This can also affect the
profit margin of the company, as well as the amount of resources it needs to
stay afloat.
ECONOMIC FACTORS AND
THEIR EFFECT ON BUSINESS

RECESSION

Whenever an economy faces a recession, it has the

potential to change the attitude taken by consumers toward
their purchasing decisions. This may force companies to
drop prices to stay afloat.
 ENVIRONMENTAL
ANALYSIS

This is a special term that refers to the process of looking

at the external socioeconomic issues in a business. It is
considered a part of general business analysis, so it is
useful to the executives of a company. It can help them
grow the organization, increase the streams of revenue
the company receives and also get ahead of competitors.
 ENVIRONMENTAL
ANALYSIS

A subset of environmental analysis is the PEST analysis, or some of its

variants, such as the PESTLE analysis. This is a form of analysis that
looks at four relevant factors that affect a business environment, and
these – Political, Economic, Social and Technological factors –
create the acronym “PEST.” There are other variations, such as
PESTLE, which includes Legal and Environmental factors. However,
the four factors in PEST analysis are the main economic
factors that affect a business.
 ENVIRONMENTAL
ANALYSIS
PESTLE analysis is one of the most popular tools used in
business analysis, and for good reason! It can tell you all
about the circumstances that an individual, product, or
organization finds itself in, which can help in making decisions
and understanding its current (or future) position in the
market. In this article, we’ll be thoroughly exploring the
humble PESTLE analysis in order to ensure you a complete
understanding of this invaluable business tool.
What is
PESTLE Analysis?
PESTLE analysis is a business analysis technique which takes into account
six groups of external factors that can affect businesses. The six categories
included are:

Political Factors
Economic Factors
Socio-cultural Factors
Technological Factors
Legal Factors
Environmental Factors
What is
PESTLE Analysis?
POLITICAL FACTORS
The political factors taken into account for in PESTLE analysis are the variables
which pertain to both local and global politics, but yet still influence businesses.
In PEST analysis, factors relating to the law and legal environment are often
grouped together with political factors; however, it’s important to distinguish
those as ‘legal’ factors in PESTLE analysis. Nonetheless, examples of political
factors might include:

A country's political system Government Sanctions

International relationships Subsidies
What is
PESTLE Analysis?
ECONOMIC FACTORS

In PESTLE analysis, the economic factors are ones which are connected with
the general state of the economy, goods, services and money. There are a
number of different economic factors which can affect business, including:

Supply and demand for a certain product Interest rates

Taxes Inflation
What is
PESTLE Analysis?
SOCIOCULTURAL FACTORS

The ‘S’ in PESTLE stands for ‘sociocultural’ factors, or sometimes just simply
‘social’ factors. These are the factors connected with the general public and their
behavior (in other words, society and its culture). Here are some of the social
factors that might have an impact on business:

Consumer lifestyles Immigration and emigration

Social classes Family size
What is
PESTLE Analysis?
TECHNOLOGICAL FACTORS

Technological factors are ones which "relate to the existence, availability, and
development of technology." It's important to remember, though, that this is not
just exclusive to digital technology, but also includes mechanical and other
physical technologies. Some examples of technological factors are:

The development of robots Security in cryptography

Internet connectivity Engine efficiency
What is
PESTLE Analysis?
LEGAL FACTORS
PESTLE analysis also accounts for the legal factors that might affect a business.
This are external factors which focus on the influence that the law may have on
business operation and customer behavior. The important distinction between
legal factors and political factors is that the latter is concerned with government
intervention in society and the economy to create growth, while the former is
connected with government intervention in society and the economy to maintain
fairness and wellbeing. Some examples of legal factors that you might come
across in a PESTLE analysis are as follows:
Consumer law Fraud law
The legality of doing XYZ Import/Export law
What is
PESTLE Analysis?
ENVIRONMENTAL FACTORS

Environmental factors, also known as 'ecological' factors, refers to the variables

pertaining to the physical environment of the world we live on. A few examples
are:

Climate change Pollution

Animal extinction
How Do I Use
PESTLE Analysis?

If you want to conduct a PESTLE analysis, the first step in doing so is deciding
what product, organization, or idea you want to analyze. Then, assuming it's a
business that you want to analyze, you should fully explore of its facets to
identify any external factors which are playing a part in how it operates and
performs. Finally, you should attempt to categorize each of the factors.

Don't worry if one category has more entries than another, or if some factors
don't entirely fit into any category. This can happen depending on the nature of
the business that you are analyzing.
THANK
YOU!
Presented By:
ABM 12 GROUP 3
Members:
Anthony A. Coralde Jr. Jennifer Jones
Mariela Arlos Vanessa Antenor
Jinky Mae Cortan Elizabeth Ellamadrid Bolito
Jessa Padicer Gian Aga
Rochelle Caber Angela Pahanunot