Global Business Environment

SUMMARY: When a firm operates in an international business environment, as an individual is bound by the society in which he lives, it needs to understand the importance of society. Social class is an important part of the society. In most western societies, these classes are classified as upper, middle and lower. The level of perception of each class and their frequency of buying goods differ from one country to another. In countries like India perception and trends of the consumers have been changing owing to the liberalization and the changes in lifestyles. Another important aspect of society is the group. The performance of groups differs in individualistic and collectivist societies.

The family is an important part of the social environment. It is a primary group and influences the consumption and buying behavior of consumers. The traditional family life cycle has been changing owing to the differing lifestyles.