International business

2. DEMOGRAPHIC ENVIRONMENT
Demography: Is the study of human populations in terms of size,
density, location, age, gender, race occupation, and other statistics.
Demography is very important because it involves people, and people
make up markets.
The world population is growing at an explosive rate. This population
explosion has been of major concern to governments and various
groups.

3. The less-developed regions of the world
currently account for 76% of the world
population.
The explosive world population growth
has major implications for business due
to:
 Growing human needs
 Growing market opportunities.
It is good to keep close track of
demographic trends and developments in
their markets, both at home and abroad.

4. CHARACTERISTICS OF DEMOGRAPHY

5. Demography
Size Composition Distribution
Age
Family life cycle
Race
Language
Occupation
Sex
Status
Religion
Education
Wealth
Rural Urban

6. Size:
 The size of the country is estimated by counting the number of the
people in that country.
 The size of the population and its growth rate has both demand and
supply side effects.
 An expansion in the size increases the consumption needs and the
amount of labour.
Composition:
 The composition of population can be assessed by classifying it by
using different criteria described as follows:
Age compositions/generations:
The population is divided into three categories:
Population Age
Child O-14
Working 15-64
Aged 65 and above

7. Race/Ethnicity:
 Classification of population on the basis of race or ethnicity is
subjective as individuals usually identify their own race or ethnicity in
the population census conducted by their countries. for eg:USA census
there are six race/ethnic categories:
 Business organization also use such a data for a variety of business
strategies. They often use such a data to design advertisement that
can attract the dominant category. Similarly investment decisions are
often based on such information.
AMERICAN INDIAN,ASIAN,BLACK,WHITE,HISPANIC
AND OTHERS

8. Religion :
 Religion categories in demographic
classification also vary across countries. In
India major religions are
Hindu,Christian,Muslim.Business organization
take care of the religious sentiments while
designing their products.
 For e.g.: McDonalds India

9. Language :
 Depending on the major language spoken in a particular country, the
classification of population according to language also varies across
countries.
 For e.g.: Regional radio stations

10. Education:
 Education profile is assessed by enumerating the number of people of
18 years and above attaining a specified level of education.
 Education level also often influences income, product choices and
standard of living.
 Businesses, hence, often use such information for market research and
product targeting
 For e.g.: IT companies

11. Occupation:
 Different countries have been using different occupation classification.
 Occupational data is used by businesses for targeting and pricing for
their products.
 For e.g.: Insurance Companies

12. Income:
 Income, being a primary measure of well-being of a person, influences
his/her purchasing power and choices.
 Income can be aggregate income of a person or per capita income.
 Brands are specifically developed and positioned within particular
income segments to maximize turnover and profit.
 For e.g.: Rolls Royce cars and Tata Nano

13. Gender composition:
 One of the basic characteristics of demography, the gender
composition largely reflects the underlying social, economic, and cultural
patterns of a society.
 Gender classification of population is often analyzed by businesses as
men and women have different psychological and physiological needs
and they shop differently. Such a segmentation is widely used within
cosmetics, clothing and magazine industry
 For e.g.: Fair and handsome, Fair and lovely, Femina

14. Family life cycle
 The stages of life through which families go through is known as
family life cycle. It is expressed as,
Families with
no children
Families with
children
For example,

15. Distribution:
 Distribution of population depicts the density in a particular
area. Population density is estimated per square mile of land
area and measured by the following formula:
Population density = Total Population of the Area/ Size of the Area
Population density is an important indicator of quality of life.

16. DETERMINANTS OF DEMOGRAPHY
Fertility
 Crude birth rate = Number of live births in the year/ Total population *1000
Mortality and life expectancy
 Crude death rate = Number of deaths in the year/ Total population *1000
 Infant mortality rate=No. of deaths of infants of less than 1 yr old/ Total
population *1000
Migration
 Immigration rate =Number of people entering a region / Total population
*1000
 Emigration rate = Number of people leaving a region / Total population
*1000

17. USES OF DEMOGRAPHIC PROFILE BY
BUSINESS ORGANIZATION
1. Production analysis
2. Establishing selling outlets
3. Determining advertising and communication
strategies
4. Strategic planning

18. DISADVANTAGES
-Business is at risk of alienating people who fall between
categories
--If market research is flawed, the campaign could be targeting the
wrong people

19. Conclusion
 Business management involves management of
people and efficiency of business depends largely
on the competency and motivation of its people.
The demographic environment differs from country
to country and from one place to another within the
country.Thus the demographic factors should be
clearly analyzed as it has very significant
implications for business organization.

20. TIME TO REFRESH
 World Population Day –
July 11
 The world population is estimated to be
7.325 billion in 2015.
 Top 5 Most populated countries:
China: 1,361,512,535
India: 1,251,695,584
USA: 321,362,789
Indonesia: 255,993,674
Brazil: 204,259,812
 Top 5 Least populated countries:
Tuvalu: 11,636
Nauru: 12,809
Palau: 20,016
San Marino: 28,503
Monaco: 32,270

21.  As per 2011 census, which religion constitute 2nd highest Population in
India
Islam 14.23%(17.22 crore)
 Which is the most populous state with roughly 200 million people
Uttar Pradesh
 Which is the least populous state (610,577)
Sikkim
 The number of people in different age groups is referred as:
Age composition
 Which of the following migration of population does not change the size of
the population?
Internal migration

22.  BUSINESS ENVIRONMENT-VEERA KESHAV PAILWAR
 BUSINESS ENVIRONMENT-FRANCIS CHERUNILAM
 INTERNATIONAL BUSINESS-V.K BHALLA&S.SHIVARAMU
 www.slideshare.net/AnkitAgarwal7/business-
environment-6171758
 mybloggingtech.blogspot.com/.../demographic-
environment-and-its.htm...

23. THANK YOU HAVE A SWEET DAY
BY,
T.BOOMA-
II M.COM