AUDITORIA DE CONTROL INTERNO

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examining two university lecturers. My own lifestyle is highly sophisticated, environmentally sensitive, artistic and cosmopolitan; that of a colleague - who happens to teach marketing - is narrow, parochial, philistine and consumption-driven. Then, what would one expect?!

Lifestyle analysis provides another way of seeking to categorise and explain human behaviour, based on factors such as an individual's interests, activities and opinions as well as on their demographic characteristics. In essence, the proposition is that by examining distinctive patterns of consumer response, a marketing organisation can build up a clearer picture of an individual's habits, preferences and behaviour and by doing so can design more effective and appealing products, marketing programmes and/or communications that can be aimed at specific lifestyle groups.

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our attitudes and behaviour including our decisions on consumption.

The importance of reference groups, especially family and friends, is recognised by both economists and marketers. Economists, for example, use the notion of

'households' to indicate that the consumption of goods and services often takes place within a collective family framework, as in the case of groceries, holidays, vehicles and many other everyday products. Marketers use concepts such as the family life cycle to show changing patterns of consumption as the individual moves from being a child in a family to being a parent with different needs and responsibilities.

While it is difficult to be precise about when and how far an individual's demand is shaped by the family and other reference groups, it is not difficult to think of particu- lar examples when this is likely to be the case. For many services such as builders, restaurants, hotels, hairdressers and car repairs, consumers often rely on the advice of a trusted friend or colleague and many firms can gain new business through such word-of-mouth recommendations.

Equally, through membership and/or support of a particular group or club, individuals may be tempted to purchase particular goods and/or services (e.g. football kit, trainers, a CD, tickets), especially those with a desir- able 'brand name' and endorsed by a well-known personality (e.g. sportsperson, musician, singer, film star). In such cases, the demand for the product is often less price sensitive since it is a 'must have' product.

4.0 Conclusion

From the above discussions, it is evident that the size, density, distribution and the growth rate of a Nation‘s population affect business activities. In addition, the social contexts have great impact

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of business activities. The composition of population in terms of age, social class, reference groups and citizens‘ lifestyles all play a great role in business growth and development.

5.0 Summary

The Demographic environment is concerned with the study of the population characteristics both in terms of their overall size and their structural characteristics. Areas of interest in a business setting include the age structure of a given population, its gender balance, its geographical distribution and the tendency for both the size and structure of the population to change over time. As we have observed, demographic change can have important implications for an organization‘s human resources management as well as the demand and supply side of the economy. The social context of business includes factors such as social class, lifestyles and reference group influences. The consumption of goods and services in an economy can be linked to such factors.

6.0 Self-Assessment Questions

1. List and explain the factors determining the size of a country‘s population 2. How does Demographic Changes affect Business?

3 ‗Business is subject to a lot of Social influences‘ Discuss 4 Discuss the reference group influence on Business

7.0 Tutor Marked Assignment

Why do you think that the demographic composition of a population is important to an organization?

8.0 References/Further Reading

Bateman, T. S. & Snell, S.A. (2009). Management: Leading & collaborating in the competitive

185 world. Boston: McGraw-Hill Irwin.

Daft, R. L. (1997). Management. San Diego: Harcourt Grace College Publishers.

Hellriegel, D., Jackson, S. E. & Slocum J. W. J. (2002). Management: a Competency- Based Approach. South-Western

Rue, L. W. & Byars L. L. (2001). Business M anagement-Road wild applications &

Connections. New York: McGraw Hill Irwin.

Rue, L. W. & Byars L. L. (2007). Management. Boston: McGraw Hill Irwin.

Smith, O.N. (2011). Fundamentals of Management. London: McGraw Hill.

Stoner J. A. F. (1978). Management. New Jersey: Prentice Hall.

Stoner, J. A. F, Freeman A. E, and Gilbert Jr. D.R (2002). Management. New Jersey:

Prentice Hall

Worthington, I. and Britton, C. (2009). T he B usiness Environment. London: Prentice Hall.

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187 Unit 4: The Cultural Environment

Table of Contents 1.0 Introduction 2.0 Objectives 3.0 Main Content

3.1 The meaning of culture 3.2 Sub culture

3.3 Application of culture 4.0 Conclusion

5.0 Summary

6.0 Self-Assessment Questions 7.0 Tutor marked Assignment 8.0 References/Further Reading

1.0 Introduction

The influencing mechanisms, which exist within a population that guide business practices and or purchasing behavior. For example customs regarding labor and how a company manages employees.

2.0 Objectives

At the end of this unit, you should be able to:

1. Understand the meaning of culture

2 Distinguish Sub culture from the general culture 3 Explain how culture influence Business generally

188 4 How cultural differences affect Business.

3.0 Main Content