Impact on business of social and demographic change

Two of the most significant changes affecting societies

1. Ageing population

- Large proportion of the population over the retirement age

- Smaller proportion of the population below 25

- Large # of people dependent on social benefits and heavier burden on tax payers

2. Patterns of employment

Ageing population effects

- Changing patterns in demand

- Age structure of the workforce

Patterns of employment changing examples

- Labour is being replaced by automated machinery, particularly in the secondary sector

- # of women employed is increasing

- Part-time employment increasing

- Labor is transferring from old established industries (ex. steel) to hi- tech industries

- Temporary and flexible employee contracts increasing

- Flexible work patterns

- Women are tending to stay in full-time employment for longer = families are smaller

- Learner employment on a part-time basis is increasing

- Ageing population increases the dependency ratio

- Many countries are increasingly multi-cultural which has an effect on the patter of women at work

Possible opportunities of social and demographic change

- Demand is increasing for products aimed at ethnic groups or age groups

- Rising population increases demand for housing and household products

- Increased numbers of high/middle-income people increases consumer spending on luxury products

- Part-time employment patterns allow for greater flexibility of operations

Possible threats of social and demographic change

- Demand is decreasing for products aimed at ethnic groups or age groups that are becoming less important

- Shortage of labor supply if there is an ageing population

- Increased taxation to pay for people dependent on social benefits

- Need to restructure work patterns to suit more part-time workers

- Part-time workforce may be more difficult to build into a loyal team