socio cultural environment

Socio Cultural Environment in Business Environment

Table of Contents:-

  • Importance of Socio Cultural Environment
  • Impact of socio cultural environment on businesses
  • Elements of Socio Cultural Environment
  • Socio Cultural Environment of Business in India

Importance of Socio Cultural Environment

Socio cultural environment factors exhibit variation from country to country and even within the same country, differing from region to region. A thorough understanding of the socio cultural environment in which a business seeks to operate or enter is therefore important for its survival and growth.

The social environment, also known as the social context, socio cultural context, or milieu, refers to the immediate physical and social setting in which people live or in which events unfold. It encompasses the culture in which individuals are educated or live and the people and institutions with whom they interact. This interaction can occur in person or through various communication media, and it may be anonymous or one-way, not necessarily implying equality of social status. The concept of the social environment in business environment is broader than that of social class or social circle.

While it is true that individuals live in specific geographical conditions and engage in particular economic activities dictated by their society, social humans are shaped as much by their social environment as by their physical surroundings and economic conditions. The social environment is deeply intertwined with culture, and thinkers like Graham Wallas have referred to it as an individual’s social heritage.

Each society has its unique set of roles, customs, culture, values, beliefs, attitudes, habits, languages, and other forms of interaction between the different members of the society. Any business organization aiming to enter a market for its products and services must develop a complete understanding of the socio-cultural environment of the society involved and adapt its strategies accordingly.

What factors constitute the social environment?

A long list of factors, including social institutions, social systems, social groups, social values, and attitude, are included in it. Successful business managers cannot afford to neglect the importance of these features. No business can survive and grow in the absence of social harmony. Different countries, over different periods, attain social harmony and order in different forms, through various ways and means. Thus, the socio-cultural environment differs over space, time, and methods.

Three aspects should be noted in the current socio-cultural environment:

1. Major social problems: Examples include concerns for environmental pollution, demands for socially responsible marketing policies, and a focus on safety in occupations and products.

2. Growing consumerism: This indicates consumer dissatisfaction on a large scale against unfair trade practices. Consumerism is becoming increasingly important in the marketing decision process. The social environment in many countries is responsible for highlighting the social responsibility of business and a customer-oriented marketing strategy.

3. Changes in our lifestyles and social values: For example, the changing role of women, emphasis on the quality of goods instead of the quantity of goods, greater reliance on government, and a preference for recreational activities.

Impact of socio cultural environment on businesses

The impact of socio cultural environment dimensions on businesses can be understood in many ways. In the era of globalization, companies are transcending boundaries and expanding to other parts of the world. Now, the need to understand and appreciate cultural differences across various countries is essential. Work motivation, profit motivation, business goals, negotiating styles, attitudes towards the development of business relationships, gift-giving customs, greetings, significance of body gestures, meanings of colours and numbers, and the like vary from country to country.

The table below summarizes how major management concepts are perceived by the Japanese and Americans.

Management ConceptsHow it is perceived in JapanHow is perceived in the United States
CompanyFamily in villageTeam in sport
Business goalTo surviveTo win
EinployeesChildren in a familyPlayers in a team
Human relationsEmotionalFunctional
CompetitionCooperation or sinCut-throat
Profit motivationMeans to an end By all means
Sense of identificationGroup prestigeJob pride
Work motivationGroup atmosphereIndividual income
ProductionTraining and DiligenceProductivity
PromotionLength of serviceAccording to abilities
PayAward for patience &
Service and results
Table: Major Concepts in the Comparative Analysis of US and Japanese

Likewise, people from different countries, each having a different cultural heritage, behave differently. When people from diverse cultural backgrounds come together in a workplace, management will be required to manage workforce diversity. The table below reveals the differences in the socio-cultural factors in India and Japan and their impact on the business environment of the two countries.

Differences in the socio-cultural factors in India and Japan

Social and Cultural FactorsIndiaJapan
Principles of
Prevalence of impersonal bureaucratic social relations, and mistrust of fellow beings based on the assumption of human nature as evil, results in highly centralized administration, overemphasis of hierarchical status in decision making, bureaucratic delays, low levels of delegation, a dissatisfied workforce, and accentuation of apathy in individuals and groups.Emphasis on government by the virtuous abrogation of coercion, mutual trust between employer and employee, and acceptance of the basic goodness of human nature results in minimum control from above, a high level of delegation, and a highly motivated workforce.
Attitude towards work
and goals
General and deep-seated apathy, dissociation of work from its results based on the belief that the results are pre-ordained, results in tasks being performed without any interest, dedication, or pride.Highly result-oriented and directed towards perfection and growth through dedicated effort.
Group hannonyAssumption of inequality among human beings, nagging suspicion of fellow beings, and highly self-centred behaviour result in a lack of cooperation and teamwork.Very high, based on an informal affiliative pattern of behaviour.
Emphasis on educationGenerally indifferent and highly ambivalent.Very high
Discipline and orderLack of discipline at all levels, basic mistrust of authority, and poor superior-subordinate relationships.Highly disciplined, with respect for superiors and authority.
Table: Contrasting Social and Cultural Factors – India vs. Japan

Elements of Socio Cultural Environment

The major elements of the socio cultural environment of business are classified as follows.

  1. Social Institutions
  2. Social Systems
  3. Social Groups
  4. Social Values
  5. Social Attitudes
  6. Social Responsibilities of Business

1. Social Institutions

Social institutions refer to setups like family, school, church, state, etc., which are essential to maintaining the orderly arrangement of social structure. These are generally considered collective modes of behaviour. They prescribe a way of doing things and bind the members of the group together. There are five kinds of social institutions, namely, family, economics, religion, education, and state. There are also several secondary institutions derived from each of these primary institutions.

  • The secondary institutions derived from the family are marriage, divorce, monogamy, polygamy, etc.
  • The secondary institutions of economics are trading, property, banking, credit, etc.
  • The secondary institutions of religion are temples, mosques, taboos, churches, totems etc.
  • The secondary institutions of education are colleges, schools, universities, etc.
  • The secondary institutions of the state are the party system, interest groups, democracy, etc.

Institutions may grow, similar to folkways and mores, or they may be created, just as laws are enacted. For example, polyandry or monogamy grew in response to some felt needs of the people. Banks grew as the need for lending and borrowing money was felt. Colleges and schools are created by deliberate choice and action. An important feature in the growth of institutions is the extension of the power of the state over the other four different primary institutions. The state now exercises more authority through laws and regulations. Nowadays, the family is being controlled and regulated by the state in different ways. Many traditional functions of the family have been taken over by the state, which has enacted laws regulating marriage, divorce, adoption, and inheritance. The authority of the state has similarly been extended to education, economics and religion.

Institutions and Continuity: The Everlasting Essence of Social Structures

An institution never dies. New institutional forms may replace the old ones, but the institution goes on. For example, The contemporary family has replaced the norms of the patriarchal family, but the family, as an institution, endures. Similarly, with the end of feudalism, the government persisted. Both governmental and economic functions continued, albeit under altered norms. While the primary institutions have ancient roots spanning thousands of years, the institutional norms themselves are relatively new.

The stability of a social structure is contingent upon the effective adjustment of relationships among its various institutions. No institution works in a vacuum. Religion, education, family, government, and business all interact. Education creates attitudes that influence the acceptance or rejection of religious dogmas. Religion may exalt education. It allows individuals to understand the truths of God or criticize it because it poses a threat to their faith. Business conditions may influence family life. Unemployment may determine the number of people who do not want to marry, as an unemployed person may postpone marriage until they get employed in a suitable job.

Interconnected Institutions: Navigating Societal Changes and Adaptations

The postponement of marriage can impact birth rates. The state influences the functions of institutions; it may take over some functions and establish their institutional norms. Businessmen, educators, energy experts, and functionaries of other institutions also seek to influence the acts of the state, as any state action may obstruct or help the realization of their institutional objectives. Hence, social institutions are closely interconnected. The interrelationship of the various institutions is like that of the different parts of a wheel. The family is the hub, while education, religion, government, and economics are the spokes of the wheel. The rim represents the community within which the various institutions operate.

All institutions encounter the challenge of continually adapting to the evolving society. Shifts in the social environment can lead to changes in all social institutions. For example, inflation may significantly impact aspects such as marriage, mortality, criminality, and education. The breakdown of economic institutions may have radical effects on political institutions. Similarly, a change in one institution may lead to a change in other institutions. There may also be a shifting of functions from one institution to another. Child care, once primarily a family function, has now transitioned to the responsibility of the state. When a particular institution falls short in fulfilling a human need, another institution will often step in to assume that function. No institution can escape influencing other institutions or avoid being influenced by them.

2. Social Systems

The concept of a social system is closely related to the concept of social structure, which is the means through which a social system functions. According to Loomis, the social system is formed by the patterned interaction among its members. “It is constituted by the interaction of a plurality of individual actors whose relations to each other are mutually oriented through the definition of and mediation of a pattern of structured and shared symbols and expectations.” The nature of the social system is determined by the social processes and patterned social relations.

The fundamental elements of the social system include:

  1. Belief (knowledge),
  2. Sentiment,
  3. End, goal, or objective,
  4. Norms,
  5. Status-role (position),
  6. Rank,
  7. Power,
  8. Sanction, and
  9. Facility.

A brief description of these elements follows:

1. Belief and knowledge

Any statement regarding any aspect of the universe that is acknowledged as true can be referred to as a belief. According to D. Krech and R.S. Crutchfield, “A belief is an enduring organization of perception and cognitions about some aspect of an individual’s world.”A belief, whether verifiable or not, true or false, is considered true by those who hold it. Belief provides the cognitive foundation for social action. The importance of beliefs is not only determined by their objective falsity or truth.

For example, the belief in the absence of God shapes social relationships differently than the relations of those who believe in God. The Hindu social structure is rooted in beliefs concerning the existence of God, the theory of rebirth, the doctrine of Karma, and the reality of hell and heaven. The Indian caste system is founded on Karma theory, and it is this belief that has enabled the Hindu social system to endure despite numerous invasions. According to Loomis, “the testing and verification of the cognitive aspect of belief is also important. It will contribute to the progress and provide dynamism to the social system”.

2. End, Goal, or Objective

The end, goal, or objective defines the social system. The members of a social system expect to achieve a particular end or objective through appropriate interaction. If there were no human needs, goals, or ends, there would be no society. Human needs, goals, and ends play a crucial role in determining the nature of the social system.

3. Sentiment

Closely related to belief is the element of sentiment, which embodies “what we feel” about the world. The essence of sentiment lies as the primary element expressed within the internal pattern of a social system. These sentiments, expressed within the internal pattern, arise from a combination of externally patterned and internally patterned social interactions. The sentiment of the external pattern is those that members bring from outside. Sentiments are acquired and are the product of experience and cultural conditioning. Our cultural values and social goals significantly influence and shape our sentiments. The sentiments of love, hatred, benevolence, charity, nationalism, internationalism, etc., are shaped by our cultural conditioning. Sentiments may be of various kinds: intellectual, ethical, aesthetic, religious, etc.

4. Status-Role

Status is the position an individual holds in society. In a social system, each individual has a status. The specific place that an individual occupies at a particular time within a system is referred to as their status in that system. The element of status is present in every social system. For example, in a family, there are statuses such as father, mother, son, daughter, etc. Similarly, statuses exist in clubs, schools, unions, or factories. An individual’s status may be either ascribed or achieved.

An ascribed status is one an individual receives at birth, conferred by their group or society, often based on factors like sex, age, caste, or colour. On the other hand, an achieved status is one that an individual attains through their efforts. For example, a person born into a lower caste may, through their efforts, become a Prime Minister, achieving that status. Each status comes with associated functions known as roles. In a social system, individuals are expected to perform their roles based on their status.

5. Norms

Norms function as standards for evaluating what is right or wrong, appropriate or inappropriate, just or unjust, and good or bad in social relationships. Every social system is characterized by its norms, which individuals are obligated to adhere to. Some norms are general and apply to everyone, while others are specific to particular individuals and status roles within the system. Certain norms may hold particular significance for specific social systems; for example, the norm of efficiency is crucial in the economic system, and the norm of fair play is vital in athletic activities. The concept of a social system implies order and a key criterion for identifying a social system is the existence of consensus regarding appropriate behaviour.

6. Rank

Rank, as used here, is equivalent to “standing” and encompasses the importance an individual holds in the socio-cultural environment. It is determined by the evaluation placed upon the individual and their actions by the norms and standards of the system. In contemporary society, a political leader may hold a higher rank than a teacher, whereas, in ancient times, the teacher enjoyed a higher rank than even the king.

7. Power

Power refers to the capacity to control others, and conflicts may arise among different parts of the social system. Such conflicts can be harmful to the social system; for example, a dispute may emerge between students and teachers, which is detrimental to the efficiency of the institution. To address such conflicts, there should be a power vested in an authority capable of controlling both teachers and students. This power is typically held by an individual, such as the principal, in various social systems.

In the state, the ruler; the family, the father; and the union, the president, possess such power. It is important to note that this power resides in the status role and not in the individual per se. It is the authority of the office, and once an individual no longer holds the office, they cease to exercise the authority associated with that office. For example, an unfrocked priest cannot deliver the sacraments, an ex-principal cannot direct the students, and an ex-president cannot call the parliament. Therefore, authority implies some degree of institutionalization.

8. Sanction

Sanction refers to the rewards and penalties given out by the members of a social system as a means of inducing conformity to its norms and ends. Sanctions can be either positive or negative. Positive sanctions encompass rewards such as wages, profits, interest, esteem, praise, privileges, etc. On the other hand, negative sanctions involve penalties and punishments.

10. Facility

A facility is defined as a means used to attain ends within the system. Individuals in a social system must be provided with adequate facilities to enable them to perform their roles efficiently. Facilities should not only exist but should also be used. Facilities alone are not beneficial; they must be effectively utilized to be of value. The ends, goals, or objectives of a social system can be realized only through the effective utilization of facilities. The utilization of facilities highlights systemic ends, beliefs, and norms that might otherwise remain obscure. To put it another way, a society reveals its ends, beliefs, and norms by its failure to utilize certain available facilities effectively.

For example, farmers may have the facilities of a tractor and fertilizers, but unless they utilize these facilities, they may not be able to increase their production and save time and energy. The use of tractors may necessitate a reorganization of the land system, as the facilities of a tractor cannot be effectively utilized if the land is very small. There may even be some resistance to their adoption. The same considerations apply to the facilities available for family planning. Unless these facilities are used, the goal of self-sufficiency in food cannot be achieved. If we use nuclear energy for peaceful purposes, it shows our belief in peace. However, if it is used for manufacturing nuclear bombs, it would indicate that we are making preparations for war. Thus, it is the use of the facility rather than its intrinsic qualities that determine its significance to social systems.

2. Social Groups

A social group is a gathering of human beings. In its basic sense, a group “is several units of anything near one another.” Thus, we may refer to a group of houses on a street, trees in a forest, or buses at a bus stand. In the human field, it means “any collection of human beings who are brought into social relationships with one another.” Some of the important definitions of social groups are:

“A group is a social unit that consists of several individuals who stand in (more or less) definite status and role relationships to one another and which possesses a set of values or norms of its own, regulating the behaviour of individual members at least in matters of consequence to the group.”

“A social group may be thought of as several persons, two or more, who share some common objects of attention, stimulate each other, have common loyalty, and participate in similar activities.”

Social relationships involve, as we have seen, a certain level of reciprocity between those involved and a degree of mutual awareness. A social group is a collection of individuals, two or more, interacting with each other, who share some common objects of attention and participate in similar activities. It could be a cricket club or a political party, ranging from a pair or a couple to a group of millions of people. In an aggregation, the interaction element is lacking, so it differs from a group within which observable interaction is present. The essence of a social group is not physical closeness but a consciousness of joint interaction.

Characteristics of Social Group

From the definitions of a social group given above, it can be inferred that a social group has the following characteristics:

(i) Reciprocal Relations: The members of a group are interrelated to each other. A gathering of persons forms a social group only when they have reciprocal relations; this is an essential feature of a group.

(ii) Sense of Unity: The members of a group are united by a sense of unity and a feeling of sympathy.

(iii) We-feeling: The members of a group support each other and collectively defend their interests.

(iv) Common Interests: The interests and ideals of a group are common. They come together for the realization of common interests.

(v) Similar Behavior: The members of a group behave similarly in the pursuit of common interests.

(vi) Group Norms: Every group has its own rules or norms that the members are supposed to follow.

A social group, it should be noted, is dynamic and not static. It may change its form and expand its activities over time. Sometimes the change may be swift and sudden, while at other times, it may occur so gradually that its members are unaware of it. A group may give up one function after another until it finally ceases to exist, or it may settle down to a routine and limit its activities to the mere holding of annual meetings. It may expand its organization or perish due to disorganization.

4. Social Values

Social values are cultural standards that highlight the collective good deemed desirable for organized social life. These are assumptions about what is right and important for society, providing the ultimate meaning and legitimacy for social arrangements and behaviour. They are abstract sentiments or ideals. An example of an important social value is “equality of opportunity,” widely considered a desirable end in itself. The importance of value in social life cannot be overstated.

A social value differs from an individual value. An individual value is enjoyed or sought by the individual, something a person seeks for themselves. While these values are commonly shared, they do not necessarily transform into social values. Social values regulate the thinking and behaviour of individuals. For example, If American culture is characterized by a belief in material progress, Indian culture is distinguished by spiritualism, a focus on selflessness, abandonment of personal desires, and the elimination of ambition. The “Indian way” is different from the “American way,” resulting in divergent social structures and patterns of expected behaviour.

Social values are distinct from social norms. Norms are standards of group behaviour that incorporate value judgments and are related to events in the real world. When a group of individuals interacts, a set of standards develops that regulates their relationship and modes of behaviour. These standards of group behaviour are referred to as social norms. Simultaneously, “A norm is a standard of behavioural expectation shared by group members against which the validity of perceptions is judged, and the appropriateness of feeling and behaviour is evaluated.”

Social Attitudes

Attitude is the state of consciousness within a person. It refers to certain regularities in an individual’s feelings, thoughts, and predispositions to act towards some aspect of their environment. It is a subjective reaction to objects. The term ‘attitude’ denotes the state of mind, not the object, towards which all attitudes are directed. Attitudes, however, differ from interests. Both concepts are primarily psychological, largely moulding our behaviour and determining social relationships. However, attitudes differ from interests in the sense that interest is objective, while attitude is subjective. While interest means “any aim or object that stimulates activity towards its attainment,” attitude is regarded as a state of mind of the individual towards a value.

Another aspect that differentiates attitudes and interests is that interests are common and alike, while attitudes are alike but not common. MacIver observes, “Different people cannot have a common attitude any more than they can feel a common pain. They can have only like pains and like attitudes because the subjective element is always individualized.”

Attitudes determine social relationships, and the origin, growth, and progress of a society depend on interests and attitudes. Attitudes shape the structure of a society, marking it with particular interests and attitudes that its members follow and which determine its structure. This is why we distinguish between feudal society, bourgeois society, and proletarian society. Attitudes mould social relations, and constant attitudinal changes and adjustments in society influence relations between individuals. Moreover, people and groups everywhere display characteristic attitudes.

The structure of a society, social relationships, and the practical utility of attitudes affect the business environment. Managers must consider changing social relationships and the structure of society when formulating strategies. Multinational companies(MNCs) pay special attention to the social values and attitudes in a particular economy when planning their entry.

Social Responsibilities of Business

Social responsibility of business refers to the obligation of business enterprises to adopt policies and plans of action that are desirable in terms of the expectations and interests of society. It involves considering social criteria along with economic criteria when conducting business activities. The idea may be said to have arisen out of the growing public expectations that business firms should modify their singular pursuit of economic goals and help society in resolving social problems that may not be the direct outcome of business operations but should be of concern to business as a major user of society’s resources.

Integration of Social Responsibility in Business Decision-Making

Traditionally, business was looked upon as an occupation that involved the production or purchase and sale of goods to make a profit. The businessman didn’t need to be concerned with the value issues of business since the marketplace performed that function automatically. It was believed that the buyer made the value choice for himself by selecting products best suited to his purpose. However, things changed over time. It was realized that the marketplace was inadequate as an arbiter of business values and that economic considerations could not be viewed in isolation from social considerations or from a value framework without endangering social values.

Over the years, significant changes have taken place in the relationship between business and society, leading to a two-way understanding and expectations due to several factors such as the growth in the size of corporate enterprises, awareness of the social impact of business activities, and the institutional expression of the claims of society on business. Moreover, the power-responsibility equation, involving the balancing of responsibility with power, is an essential requirement in society for securing the public good. Corporate enterprises wield immense social power that, in various ways, affect the environment, consumers, and the community. They must assume responsibilities commensurate with their power so that power might not be exercised without regard for social interest.

If social responsibility underlies business decision-making, it goes with the acceptance of the position that business involvement in the social process will be followed by action plans in the interest of society as a whole. Thus, the social responsibility of business is based on the recognition that business is an organ of society and an integral part of the social system.

Socio Cultural Environment of Business in India

The social structure and the culture of society have a great influence on the functioning of business activities. Each society has its own culture, which consists of customs, values, attitudes, beliefs, habits, languages, and other forms of interaction between the members of the society. Any business firm aiming to enter any market for its products and services must develop a complete understanding of the socio-economic philosophy of the society. In the era of globalization, no business can survive and grow without social harmony and without understanding the impact of demographic changes in the country or region.

With a population of over 1.3 billion and 3.29 million square kilometres of landmass to cover, along with a multitude of languages and customs, the Indian market can be a daunting place for businessmen. The success of a business can depend to a large extent on understanding the culture, the people, the land, and the business environment within which a foreign company and investor are expected to operate. However, India promises great business opportunities, and many organizations have already turned to this vast country, seeing potential in a substantially developing workforce and a cost-effective geographical base for offices and factories.

Yet, how is it possible to overcome the challenges of doing business in India due to a lack of relevant information, political uncertainty, the geographical scale that the country presents, the regional variations that exist, and, above all, the cultural complexity that needs to be contended with?

Features of India’s socio cultural environment

Features of India’s current socio cultural environment are as follows:

Indian businessmen gave the least priority to the social environment

Indian businessmen gave the least priority to the social environment. Until 1980-85, the social environment was not adequately considered. A handful of businessmen held significant monopoly power, and their primary focus was on profit maximization rather than marketing. Selling took precedence. The society was not very alert or aware of these facts. The situation changed considerably in late 1985 due to factors such as consumerism, increased market competition, etc. Economic reforms and globalization were two major factors that contributed to the growing importance of the social environment.

Employees/ Workers Awareness

Employees, as well as workers in India, are becoming more alert and aware of their rights and welfare. Trade unions demand attractive monetary incentives, wages, and welfare facilities. Employees also receive attractive salaries, perks, bonuses, and other benefits. Thus, the growing awareness among employees and the working class has contributed to a change in the social environment in India.

The important role of the society

The social environment comprises society, which ultimately includes consumers, investors, employees, and the local community. They have a significant impact on the success and failure of the business. A businessman should not overlook the significance of the social environment.

The Social Impact of Globalization on the Indian Market

India has emerged as a potential and diversified market for Western firms and other foreign investors. Establishing a business in India was a challenging assignment in the past, but economic reforms introduced by various Indian governments over time have smoothed the entry process for Western multinationals and other business magnates. However, doing business in or with India is still considered a challenging and unique proposition, mainly due to its distinct business and socio-economic culture. Western multinationals and investors dealing with India have had to make significant changes to their business style to effectively serve their customers.

Alertness in consumers

With the improvement in the literacy ratio, education levels, and the development of the media industry, consumers have become more alert about the products sold to them. Consumers are now willing to fight against exploitation, whether it be related to price, quality, etc. The Consumer Protection Act of 1986 has played a significant role in making consumers more aware and empowered.

Importance to society

In society, people have become more alert overall. Organizations also prioritize environmental policies, ensuring that the surroundings are not disturbed, and they often prefer to recruit local people, especially multinational corporations (MNCs). The community has become very sensitive to environmental issues and pollution.

Changed Indian business community

Indian businessmen have started giving preference to Indian society. Many business houses have developed their research centres; they conduct regular R&D, give importance to consumer expectations, and have established consumer cells. In short, they have begun treating consumers as kings in their market. Thus, the business community has become conscious of new trends in the social environment.


Socio-cultural environmental factors vary between countries and even within the same country, showing regional variations. A complete understanding of the socio-cultural environment of a country or a region in which a business wants to operate or enter is, thus, essential for its survival and growth.

The culture of a society, consisting of knowledge and beliefs, values, ideals, and preferences, plays an important role in the formulation of business strategies. It is also important to identify the critical elements of the socio-cultural environment of business. These elements include social institutions and systems, social groups, social values and attitudes, the role and responsibility of government, and the responsibilities of business.

There are five primary social institutions: family, economics, religion, education, and the state. The stability of a social structure relies on a proper adjustment in relationships among these different institutions. Therefore, an efficient business manager needs a complete understanding of social institutions and their inter-relationships. Similarly, other elements of the socio-cultural environment of a particular region, such as social systems, social groups, and social values and attitudes, must be duly taken into account while planning an entry into that region.

socio cultural environment

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