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Social-Cultural Environment

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Socio cultural environment means, a set of values, customs, beliefs, behaviors, attitudes and habits .Society and culture is major aspects of every business. When we start a new overseas business, it’s more important, more effective aspects to consider. Culture and society is not directly included in business operation but indirectly control the businesses. But when we decide in which product that we produce to the customer, we will consider about the cultural aspects and social aspects. That’s more important key feature when we take a decision. Cultural differences do not, in themselves, make life difficult for people living and working across cultural boundaries. On the country, developing an understanding of different assumptions, expectation and ways of doing things can be an extremely enriching personal and professional experience.

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However, cultural differences can cause difficulty in business when we are ignorant of the fact that other people think and work in different ways, or we on out –of-date and restrictive stereotypes.

Business visitors to the UK may well need to set aside more than a few stereotypes in order to do business effectively with the country’s hugely diverse workforce.

For example, modern Britain is no more class-bound than any other society in contemporary Europe or North America and the British are some of the least ‘cold’ or standoffish people to do business with in the world. Surprised? Culture Wise’s culture course on working with the UK looks in depth at UK culture and business culture and explores how to work effectively in the UK business environment.

Socio environment is effective aspect for multinational companies. Because, other nations have several social cultures and different languages. The various other cultures significantly affect for the business activities and their performance. The social cultural factors are,

  • Language
  • Religion
  • Demographic
  • Life style & food
  • Health care expenditure

Religion Christianity

Literacy rate Around 99%

language English & welsh

Population 66,600,187 (July 2018)

Population rate 0.87%

Life expectancy at birth

  • January 2001 – December 2003
  • Males: 76.24 years
  • Females: 80.72 years
  • January 2002 – December 2004
  • Males: 76.55 years
  • Females: 80.91 years
  • January 2003 – December 2005
  • Males: 76.92 years
  • Females: 81.14 years

Health care expenditure

  • The United Kingdom has spent 191.7 billion in 2016.between 2015-2016 the expenditure had increase 3.6%,when 185.0 billion had spent on health care in United Kingdom
  • The United Kingdom’s Government-financed healthcare expenditure was 79.4% of total spending, £152.2 billion.
  • The total current healthcare expenditure was 9.8% of gross domestic product , higher than the median for Organization for Economic Co-operation and Development.
  • The UK government spending on long term health care services was 35.5 billion in 2016,in addition to 10.9 billion spent on long-term social care services.
  • Spending on health-related long-term care was £35.5 billion in 2016, with an additional £10.9 billion spent on long-term social care outside the health accounts definitions.

According this data and figures we can easily published to United Kingdom people. The government will spend only 80% for the health care sector. Other 20% spend by the private sector for the health care sector. There for we can compete for the health care sector through the ayuruvedic health care resort. That is a good strength for our business process.

Language

The United Kingdom’s official language is English which is the first language by 95% of whole population in the United Kingdom. There are six other languages in UK. They are Scots, Ulster-Scots, Welsh, Cornish, Irish and Scottish Gaelic.

Business communication is more difficult to give publicity to our services in the domestic cities in the United Kingdom. Because, their languages are not universal languages and it’s unique for certain city. There for we can recruit people who can speak different language to provide our services.

When we recruit the British people, we have to give significant training process about our traditions, our resort regulations, customs and our achievement

Religion

The religion means, cultural system of practices and behaviors and practices, ethics, places , sanctified or spiritual.( from O.Fr. religion religious community, from L. religionem )

Christianity is the main religion in the United Kingdom. The Christianity numbers about 31,479,876 in London, approximately 59.38% . Other religions are Islam, Judaism, Sikhism and Buddhism. There is a sub religious groups in the Christianity. They are ,

  • Protestantism
  • Anglicanism
  • Presbyterianism
  • Congregationalism
  • Methodism
  • Baptist

Specially , during the month of Ramadan fast , we can’t target the Islamic people to provide our services. During the Ramadan fast period, Islamic give a major priority for their religion in that period. This is the major threat for our production process.

During the Christian’s festivals (Christmas, ester day), we have to give holidays for Christians. During that period, we have to give a good staff coordination in the organization. Because, majorities are Christians.

During Christmas seasons, in our resort can provide many dishes and suitable activities for Christmas seasons. For examples are, turkey dishes of Sri Lankan taste, and Christmas cake according to the Sri Lankan recepy.

Life style and food

British cuisines are producing hybrid dishes. Therefor, their cuisines haven’t any vitamins and nutritional things. So that they have to face so many illnesses. Such as cholesterol, diabetics and etc. Such as the Anglo-Indian chicken and tikka masala .They don’t spend more time for cooking. During the Christmas season, the turkey has become more popular dish in the Christmas table.

During that situation,

In our resort can provide many cuisines according to the Sri Lankan type

Ex: jak cuury, fish ambul thiyal, seenisambal, polos malu and etc

We can implement stress release activities and mind relaxation activities

Ex: Spa, Yoga, ayuruvedic medical treat ments

Festival cuisines according Sri Lankan style.

Ex: turkey, Easter eggs, Christmas cakes

We can organize Sinhala and Tamil new year festival activities during April month.

Assessing the political and legal environment – Establishing Sidhalepa Ayuruvedic Resort and Spa in London

Before starting a new business we have to do a good analysis about their product or service.

When we do a business analysis, We have to give priority for external aspect and external aspects. Then we can use PEST analysis and SWOT analysis. Out of these analysis, we should give more focus for PEST analysis. Because, the PEST analysis is doing for gather the details about their external environment but the SWOT analysis is doing for internal environment.

The internal aspects we can control but the external environmental aspect can’t control .That is the major reasons for give a major priority for external environment.

P – Political & legal environment

E – Economic environment

S – Social environment

T – Technological environment

One of the major element of PEST analysis is the Political and Legal environment. The political and legal aspect give negative influences and positive influences . When the company do illegal activities, the government will directly involve to stop their working process. The positive influences means, when there is good will, considerable capital, good customer base and well talented staff base, the government will involve to give incentives and help to develop their businesses

When we start a overseas business from another nation, we have to consider about their nation’s rules, regulations, laws, behaviors, norms and their ethics.

For instance are’

  • Consumer right law/act
  • Foreign investment law
  • Data protection law
  • Environmental law
  • Health and safety law
  • Tax policies
  • Employment law
  • Regulations of export
  • The Tourism Act

The Consumer Rights Act 2015 (CRA).

The CRA formulated from 01 October 2015. The CRA give a better comprehensive code for unfair communication and agreements.it provides written statement or oral activity made by the business about it or its services can take on contractual status and expressly regulates contracts for the supply of digital content introducing consumer protections for this type of contract. After the implementation of this act, significantly increase there volume of competition.

Foreign investment

There are no any conditions on financial investments and foreign ownership. The authority is required for investment in certain areas,

  • Financial services
  • Banking side
  • Media sector

The government has authority to involve to consolidating public interest concern and national security under the Enterprises ACT 2002

Regulations of export

When export some software and civilian’s good, the licenses are required to exports that certain items.Not only that, when a company exports some military goods, torture or radioactive sources, there is a special licenses for it.

The Tourism Act No. 28 of 2011

The Tourism Act was provide for the, management, development , regulation and marketing for establish a sustainable tourism sector.

Hotels, resorts and guesthouses cannot be operated in London before registering at the Ministry of Tourism and obtaining a license issued by the Ministry to operate such establishments.

The united Kingdom has transparent legal system and policy making environment. Furthermore, the United Kingdom is a liberal trade environment, energetic private sector and development-focused legal structure all contribute to a climate conducive to trade and investment.

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