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DEMOGRAPHIC, TECHNOLOGICAL AND NATURAL ENVIRONMENT.,[object Object],International Business II,[object Object]
DEMOGRAPHIC ENVIRONMENT,[object Object],Demography: Is the study of human populations in terms of size, density, location, age, gender, race occupation, and other statistics.,[object Object],Demography is very important because it involves people, and people make up markets.,[object Object],The world population is growing at an explosive rate. This population explosion has been of major concern to governments and various groups.,[object Object]
DEMOGRAPHIC ENVIRONMENT,[object Object],The less-developed regions of the world currently account for 76% of the world population.,[object Object],The explosive world population growth has major implications for business due to:,[object Object],Growing human needs to satisfy.,[object Object],Growing market opportunities.,[object Object],It is good to keep close track of demographic trends and developments in their markets, both at home and abroad.,[object Object]
DEMOGRAPHIC ENVIRONMENT,[object Object],Relevant variables:,[object Object],Changes in age structure.,[object Object],Changes in family structure.,[object Object],Geographic population shifts  Migration.,[object Object],Educational characteristics.,[object Object],Population diversity.,[object Object],Baby Boom: A major increase in the annual birth rates. It started after world war II and lasted until 1960’s. This segment of the market represents an opportunity.,[object Object]
DEMOGRAPHIC ENVIRONMENT,[object Object],By the mid-1970’s the birth-rate had fallen sharply due to the smaller family sizes resulting from the desire to improve the personal living standards, from the increasing desire of women to work outside home and from improved birth control.,[object Object],The already mentioned facts had generated changes in the family structure and the market.,[object Object],For the twenty-first century a decline of the birth-rates is expected.,[object Object]
DEMOGRAPHIC ENVIRONMENT,[object Object],Nowadays people tend to marry less and have less children.,[object Object],Changes in the value system and roles assumed by the members of the family have great impact.,[object Object],The percentage of people living alone has increased considerably in the past years.,[object Object],The population shifts have been from rural to urban areas.,[object Object]
DEMOGRAPHIC ENVIRONMENT,[object Object],Another population shift has occurred from less developed countries to industrialized countries.,[object Object],Movements from the cities to the suburbs.,[object Object],In general terms the concern for education has increased so the education itself has improved.,[object Object],Racial and ethnic diversity play a really important role.,[object Object]
TECHNOLOGICAL ENVIRONMENT,[object Object],Forces that create new technologies, creating new product and market opportunities.,[object Object],Technology has released wonders and horrors.,[object Object],The following technological trends must be taken into consideration: ,[object Object],Fast pace of technological change.,[object Object],Research & Development.,[object Object],Concentration on minor improvements.,[object Object],Increased regulation.,[object Object]
TECHNOLOGICAL ENVIRONMENT,[object Object],Scientist today are working on a wide range of new technologies that will revolutionize products and their manufacturing processes.,[object Object],Biotechnology, miniature electronics, robotics, and materials science.,[object Object],Investment on Research & Development is higher every time  governments and private companies.,[object Object],Many companies are making minor product improvements instead of gambling on major innovations.,[object Object]
NATURAL ENVIRONMENT,[object Object],Involves natural resources that are needed as inputs or that are affected by production activities.,[object Object],Environmental concerns have grown steadily during the past two decades.,[object Object],Many companies have assumed a responsible behaviour towards the natural environment because consumers are demanding it.,[object Object],90’s “Earth Decade”.,[object Object]
NATURAL ENVIRONMENT,[object Object],The pollution levels are a major concern as well as the damage caused to the ozone layer, the extinction of the species and the renewal of resources.,[object Object],Aspects take into account:,[object Object],Shortages of raw materials.,[object Object],Increased cost of energy.,[object Object],Increased pollution.,[object Object],Government intervention in natural resource management.,[object Object]
NATURAL ENVIRONMENT,[object Object],Water scarcity is a problem for many countries.,[object Object],Renewable resources, such as forests and food, have to be used wisely Reforestation.,[object Object],More of the world’s limited farmable land is being developed for urban areas.,[object Object],Non-renewable resources, such as oil, coal and various minerals, pose a serious problem.,[object Object]
NATURAL ENVIRONMENT,[object Object],The price of the renewable resources is higher every day.,[object Object],The search for other sources of energy is a priority nowadays.,[object Object],Contamination is being battled.,[object Object],Recycling, the adequate disposal of waste, among others is not only a responsibility of companies but it represents an opportunity.,[object Object]

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