Social
Population change - population change could see and change in the amount of products sold, due to products being sold based on the strength of customer needs rather than the business’ design. Therefore, it is vital that Toys “R” Us is responsive to the change so that they can optimise the amount of products that they sell. There would also be a huge effect on employees. When the population increases due to immigration, there is a decrease of net wages. This is because more workers are available, so people will be willing to work for less. If Toys “R” Us were to do this, they would be able to decrease their product prices to increase the quantity sold. However short-term benefits of lower wages could actually decrease long-term profitability. Because labour would be so cheap, Toys “R” Us would have less reason to innovate. The lack of innovation could prevent Toys “R” Us from adopting cost-saving measures that could make the Toys “R” Us more profitable in the long run. In addition, widespread lifestyle changes may cause increased demands in employee benefits and workplace culture. While employee wage demands may decrease when the population increases, prospective customers in the area will also be subject to lower wages. Lower wages mean less disposable income for purchasing a small business’ products. So, to maintain sales
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A person’s lifestyle is essentially who he is. A person’s habits, beliefs, morals and financial status combine to manifest how he chooses to live his life. It determines the choices he makes, the things he wants and the things he purchases. Understanding the general lifestyle trends of a population can allow a business to better market itself. If those trends change, the business needs to