BUSINESS ENVIROMENT — OCM STD 12 Commerce — Question

Effect of cultural factors on business environment:
Factors like, traditions, practices, life style, habits etc. are part of cultural factors. These factors affect the decisions that a business unit takes.

• If the business management ignores the cultural factors prevailing in a society, there are high chances for the business to fail.
• History has recorded several examples where in companies having strong management have failed by neglecting cultural factors. And at the same, time various products which are not economically acceptable have become acceptable because of cultural factors and they have become successful.
• Cultural factors are constantly changing and these changes are constant and periodical.