What is the effect of the Egyptian social on business? aspects:(an aging population-increasing diversity-the green movement)
I am describing below the impact of aging population, increasing diversity of people, and the green movement on businesses in Egypt.
Aging population has two important dimension. One is its impact on the availability of manpower and the second is the impact on nature of consumer goods and services demanded. Aging manpower means that the proportion of retired retired people in the total population will increase, reducing the availability of people of employable age. The average age of employees in a company will also tend to rise as proportion of younger people seeking employment as compared to the older ones will decrease. Finally the spending of companies on retirement benefits to its employees will rise.
On the demand side the rising population of aging people will mean higher demand for products and services required by elderly people. For example the demand for medical care and old age home will rise. The demand for general items like clothes will also include the varieties more preferred by elderly people.
Increasing diversity means greater differences in culture, lifestyle and preferences among the people. This means that companies will have to offer an increasing range of products to the market to cater to the diversified tastes and requirements of people. This creates challenges of designing, producing, and marketing a wider range of products. At the same time it creates new opportunities in the form of niche markets.
Green movement refers to the movement for protection and promotion for ecological environment and for optimal use of resources. The awareness created by this environment will increase demand for products that are considered to be more environmental friendly. For example companies will find that there will be increasing consumer resistance to buying products that tend to harm the environment during production or use will increase. For example industries that use forest wood as raw material will be under pressure to replant trees to compensate for the trees they cut. There will be greater demand for automobiles that pollute less. Similarly appliance that consume less energy will be preferred. Also demand for organic products will increase.
Another aspect of environment is the pollution created by consumer garbage as well as industrial waste. Industries will be under pressure to reduce the levels of pollution created in factories. Also there will be less demand for products that create, after their useful life, waste that cannot be recycled or is not biodegradable.