This report highlights that, how the aging population is most benefited to the profitable and non-profitable organizations, with their experiences stable working styles and are self-possessed by the problem solving skills. This entire population not only helps organisation for improving productivity but also serve the new generation as their mentors to perform better.
This report focuses on the numerous opportunities that that are resultant from the aging population factors and not this, this report highlights the threat to the companies from these aging population over their productivity and the success over their competitors. Through all this, the companies will faces two impacts over their success one will be the positive as numerous opportunities will be headed in front and another are the problems and the threats which degrades the value of success due to the aging factor population reason.
In this report the requisites investigation and analysis is done
Macro environmental factors: Businesses enterprises are majorly affected by the macro environment, which highlights the uncontrollable factors, and are beyond the direct influence of the organisation. These factors are established due to the good interaction and independent relations in the form of conducting business transitions. In this kind of environment, proper designing administration and appropriate strategies and policies will helps in making apt changes in businesses (Kelton, 2018).
The external, macro-economic factors, which have greater emphasis on business are mentioned below:
(Source: Kenton, 2018)
Demographic forces: In this, business studies about the human population, this includes size, age, gender, occupation and statistics. The large and the diverse demographics generate both, opportunities and challenges for the businesses. In this rapid growth in the population, all demographics changes are mandatory and crucial for the business. Moreover, if there any change in demographic it will surely leads to the change in strategies (Strack, Baier, and Fahlander, 2008).
Economic forces: An economic force relates them with the purchasing power and spending patterns of the consumers. Important criteria that are related to it are pending patterns, personal incomes, unemployment, GDP and lastly the sales tax.
Socio-cultural forces: The socio- cultural factors are linked with values, preferences and behaviour. It majorly focuses on societies cultural groups, which are shaped according to the beliefs and values. Many of the cultural blunders happen due to the failure of the businesses while understanding foreign cultures (Bhasin, 2018).
Technological forces: Technological forces majorly influence the macro environment of the business, which are related to creation of new technologies and thereby generating new products and new market opportunities (Frue, 2017).
Political forces: Political environment highlights the laws, government agencies and pressures groups. Many decisions are strongly influenced and are affected by the developments in the political environment. These laws are formed for environmental protection, product safety, regulations, competition and lastly the pricing which affects the strategies to the new market (Kenton, 2018).
In business context, market refers to the group of individuals or an organisation, which makes up the pool of the actual and potential customers for their goods and services. Nevertheless, it does not mean the physical place for an exchange of goods and services rather it refers to the abstract of purchase and sales of the commodity according to the price formation (Shaikh, 2017).
Market segmentation: Market segmentation is the process of dividing the market of possible consumers into various groups or segments based on their different characteristics. Bases of market segmentation can be on the bases of attitude, interest etc. Moreover, other factors can also be the gender, age group, income, place, lifestyle etc. (Thomas, 2016).
This type of segmentation is done on the basis of geography. In this people belongs to the different regions and having different requirements. Marketers have different strategies for individuals who are living at the different places.
In this type of market segmentation, certain variables like age, gender, family size, religion, occupation and nationality. In this, every organisation set according to the customers buying behaviour, which is majorly influenced by the demographics.
This segmentation takes place according to the customers’ behaviour, usage, preferences, choices and decisions making. This segmentation highlights that customers choose products according to the knowledge and usage of the products.
In this segmentation, audiences are segmented, which is based on personality and lifestyle. Therefore, personality is the combination of characteristics that distinguish individual’s characters with their traits, skills and attitude. Hence, personality and lifestyle influences the buying decisions at the greater extent (Pratap, 2018).
The marketing models most commonly apply this concept. The STP model is very useful when generating marketing communication plans as it helps marketer to prioritize propositions and then deliver the relevant messages to engage the ultimate audiences.
In segmentation, the group of consumers are sorted which are based on location, demographics and many other measures. Moreover, those grouped people likely to respond similarly to marketing actions because of the same needs, behaviour.
In targeting, producer determines the target market in which he /she looks for the certain answers to the particular questions. Likewise, whether the potential market given time is worth full? Does it will be profitable? What sort of competition the producer has to face while the targeting the particular segment?
It is one the most important step of the process. It is mandatory to position their segmented product, service and brand according to the target market in order to generate interest in whatsoever product of meant for offering. Hence, this means certain point of difference should be there in the product so it automatically attracts the ultimate customers (Schlegelmilch, 2016).
According to the world health organisation (WHO), population aging is a most powerful and transforming demographic force, which are explained at two levels one is on biological level and another is beyond biological changes. This is also linked with other life transitions such as retirement, death of partners and relocation to more appropriate housing. All approaches that are associated with the older age but also reinforce towards recovery, adaption and psychosocial growth (World Health Organisation, 2018).
According to the United Nation, ageing population which estimates and projection the older population, monitor levels and trends in population ageing and collects and analyses information on the relationship between the population ageing and development . the population division also organizes the meeting on various aspects of population ageing (World population ageing, 2017).
In less developed region of the world, which has experienced a steady increase in the life expectance. This change in life expectancy reflects a health transitions on broader set of changes, which includes a shift from high to low fertility. A steady rise in life expectancy along with the increase in longevity is also one of the trends of ageing population (Valenzuela, 2015).
The ageing trend in 21st century has broadly prioritized a longevity strategy to address the growing impact of the demographic shift. In short, united nation concluded that it is very much necessary to adapt political proposal to the reality and will be able to meet the needs if the aging population in policies related to housing, employment, health care and lastly the social protection (Kong, 2017).
In this, the number of the oldest old is increasing in which pension and retirement income will need to cover a longer period of life. Moreover, the health care costs will rise even if the disability relates decline.
In the financial concern, aging population is more concerned about the limited financial resources and full time earning opportunities along with this; they are also more concerned about their retirement funds and about the public and private pension programmes.
In future, aging population will be more concern about mounting medical needs, medical bills including those adaptive equipment- prescription cost and homecare can rapidly accumulate.
In this concern, aging population is more dependable. In this, they are developmental, cognitive and lead to the physical disability for which they require individual to have decision maker (Ozimek, 2015).
In this due to the aging gap, there is a lack of social communication and understanding, which makes it even more challenging for the aging seniors to function in a society.
Firstly, in demographic terms, an aging population is one in which the median age is increasing this is majorly because of the baby boomers. The rise in the population due to the baby boomers who were born after world war 2 and they continue to live and grow older.
Secondly, the reason for continuous growth of the median age is that the people are living longer due to the improved nutrition and health and their also the reduction in diseases and injuries are also one of the finest reason for the aging population (Economics online, 2018).
Thirdly, reasons goes to the improved life expectancy rates and reduction in immortality rate in which people now a days are not having many children as earlier they use to have. Earlier there were massive deaths rates but now there is an improvement in the survival of young people and also families are moving with the fewer children. Moreover, people nowadays are more concern about the cost of living, which is today’s scenario, is harder to maintain.
Fourthly, reduction in the death rate is due to the improved medication process. More of advancement of technology has formed more of advanced medication to the problems, which were unable to solve earlier. Like, in earlier times no proper vaccinations were meant to save lives. Hence, due to the technology advancement ageing population in current times has increased.
Lastly, in concern of countries and region their reduction in immigration that shows the reduced movement of population between the countries and region is also one of the reasons for the aging population. People nowadays adopted a balanced and healthier lifestyle in which they are more concern about their health, routine check-ups, due to the advanced medical technology, they have to know more about their problem and they work over their solutions (Lutz, Butz, and Samir, 2017).
Increased aging population helps their children to improve productivity, helps them in brining stability. However, their experiences and skills helps in solving problems and issues arises within the organisation (Jones, 2015).
Opportunity: Due to the decreased diseases, increased nutrition, and healthy lifestyle will ensure that they can work into the business, which can leads to the improved productivity of the business along with this, they also helps in the complex problem solving skills they solves issues related to the businesses. As, old workers within the businesses are considered as mentors and serve as the role models to the younger colleagues which helps them in solving business issues (Han, 2016).
Threat: In this, a shrinking working age population highlights that aging population having a longer lifespans and retirements which means that they are fewer working people around and they are having a burden of supporting larger non-working population.
In pension fund, aging population runs out of the money due to the extended life span, for that they have to have certain money to life their end life peacefully. Moreover, later, if the pension amounts ended then their children have to borrow money to help them in living their peaceful life.
Opportunity: concern of pension with the business terms states that firms will recognize that what are the key parts for the future workforce planning which are to be designed and promoted. This also increases the recognition that employer has played a role in helping out their ageing population in context of financial affairs.
Threat: Threat related to the pension concern in business context is that in which all comes on the children of these ageing population to borrow money to give their ageing parents the peaceful life (Pettinger, 2016).
Earlier people had many births hence this increases the ageing population.
Opportunity: If more ageing population will be their will be more support to live in the future. With the increase, longevity has a profound impact and helps in developing economies and the makeup of workforces. In order to increase the economic growth then the business has to very straightforward for ageing workforce.
Threat: In this concern, If there will be low birth rates then it majorly affects the production of the business as their will be low demand of the products and then, entire demand and supply will be misbalanced. Incubi nation of fresh talent will also be lost and affects the working of the business environment.
Improved technology has majorly affected the working of the business.
Opportunity: Technology has played a major role in generating more profits in business concern. More of advanced technology will helps business to form such medication, which was not found earlier. Hence, though this, business earns more of profits in ageing population also (Barnes, 2018).
Threat: In this treat to the ageing, population will not be able to cope up with the advanced technologies due to the incompetence of advanced skills. This will hamper their growth and hence, affects the business in a long run.
Reduction in immigration of ageing population also affects the business in the longer run.
Opportunities: For business if immigration of ageing population brings more of stability, more of productivity and due to them any rose problems can be solved because they are more experienced to solve any issues arising and hampering the success of the organisation. Moreover, they are so experienced that they can guide their young colleagues for better future.
Threats: The threat related to this aspect to business will be like, if company will be more relied over the ageing population, then the company will be unable to attract the fresh talents and hence, there will be no creativity within an d hence, in this scenario it will majorly affects the success of the business houses.
Conclusion
|
Findings of cause |
Impact |
Opportunities |
Threats |
|
Improved business performances |
Positive |
Improve productivity and brings stability within an organisation. |
Due to low birth, and high ageing population all burden comes over the new generation. |
|
Pension funds |
Negative |
Organisation worked for future planning of workforce. |
To give more secure life to ageing population, their children will borrow money for the peaceful life |
|
Reduction in birth rate |
Positive/ negative |
In order to improve economic growth organisation has to be straightforward to ageing population. |
Due to low birth rate affects the production, demand and supply of the organisation. |
|
Improved technology |
Positive /negative |
More of advanced technology develops such kind of medication that can treat ageing for being young. |
Due to the incompetency of the advanced skills and advanced technology will hamper the success. |
|
Reduction in immigration |
Negative |
Reduced immigration helps in improving performances within an organisation due to their experiences. |
Company will be unable to attract fresh talent; no creativity within an organisation affects the overall success. |
According to the above conclusion, I think to improve the performances of the business houses; they should adopt the duo generational workforce within the organisation. New generation employees within an organisation are considered as fresh talent, which can work according to the advanced technology and the creativity that can helps the organisation to improve the production. Therefore, the ageing population within an organisation help in maintaining stability, will be treated as the problem- solver, and a helping hand to the young generation through their experiences.
Other than this, there should be the normal birth rate in which it should not be taken as burden in the upcoming young generation and it should not that be low which in future affects the business houses for their production as well for the generation of demand and supply cycle.
In an improved technology cases, the young generation should help the ageing population to understand through the experiences about the advanced technology and the ageing population should guide the young generation for better production results, which helps the organisation to be more successful.
References
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Bhasin, H. (2018) What is macro environment? [Online] Available from: https://www.marketing91.com/what-is-macro-environment/ [Accessed 20/12/2018]
Economics online. (2018) The ageing population [Online] Available from: https://www.economicsonline.co.uk/Global_economics/The_ageing_population.html [Accessed 20/12/2018]
Frue, K. (2017) What is macro environment analysis? [Online] Available from: https://pestleanalysis.com/what-is-macro-environment-analysis/ [Accessed 20/12/2018]
Han, J. (2016) Ageing population offers business opportunities [Online] Available from: https://www.ejinsight.com/20160304-aging-population-offers-business-opportunities/ [Accessed 20/12/2018]
Jones, H. (2015) How the ageing population is a boon for business [Online] Available from: https://www.theguardian.com/money/2015/aug/19/ageing-population-pension-reform-boon-business [Accessed 20/12/2018]
Kelton, W. (2018) Macro economic factors [Online] Available from: https://www.investopedia.com/terms/m/macroeconomic-factor.asp [Accessed 20/12/2018]
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Kong, F. (2017) Aging trend of the world. Springer, 18(1), pp.7-21.
Lutz, W., Butz, W.P. and Samir, K.E. (2017) World Population & Human Capital in the Twenty-First Century: An Overview. Oxford University Press.
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