Policies, Law and Regulations that Affect Businesses: Demographic Trends

Satisfactory Essays
Demographics and demographic trends
There are various demographics that affect business. These are the many traits that can dictate buying or product preferences of consumers. Businesses identify their major clients via these various traits. Afterwards they target consumers having similar characteristics in their promotions and advertisements. Targeting clients with similar demographic traits assists in maximizing a business’ sales and profits. In spite of growing overall population, the accessibility of skilled labor is indeed wearing out, not only in advanced countries, but also in developing countries (Raducha, 2010).
Policy, law, regulations
Regulations can be perceived as implementation objects of policy statements. The general regulation comprise controls on markets entries, wages, prices, pollution effects, development approvals, employment for particular people in certain industries, the military services and forces, and standard of production for specific goods (Holt, 2014). The economics of inflicting or removing regulations involving marketing is analyzed in regulatory economics. Regulations may generate costs alongside benefits and may generate unexpected reactivity effects for instance defensive practice. Effective regulations can be analyzed as those where entire benefits surpass total costs. Whether a business is big or small, the law requires it to take reasonable steps to curb discrimination and aggravation. In small businesses where the proprietor has direct link with the staff, a written policy is sometimes unnecessary and a plain statement of your anticipations of conducts at work may suffice. There is also a need to have a procedure to take care of any complaints.
Competitors, profitability and market Share
Market share is a major pointer of market competitiveness. This implies to how well a business is doing beyond its competitors. This metric, enhanced by alterations in sales revenue, enables managers to assess both selective and primary demand in their market. This means that it assists them to evaluate not only entire market growth or decrease but also trends in consumers’ selections against competitors. In general, sales growth gotten from primary demand is not as costly and more profitable compared to that attained by seizing share from competitors. On the other hand, losses from market share can indicate dire long-term problems that necessitate tactical adjustments. Businesses with market shares lower than certain heights may not be practical. Similarly, inside a business’ product line, market share inclinations for certain products are seen as early signals of prospective opportunities of problems (Brelsford, 2014).
A perfect example of a competitive market where there are several consumers and suppliers is that of online booksellers.
Get Access