Question

Coastwed is a company that sells traditional wedding accessories in the country Calpontus. Over the past 10 years, the company has been experiencing a gradual drop in its business because of fewer people opting for marriage. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

Answer 1

Answer: Sociocultural component

Explanation: In simple words, sociocultural component refers to those factors that characterizes a society. It refers to the perception of the individuals living in a society about their lifestyle , choice, values and believes etc.

In the given case, the company has been experiencing drop due to the change in perception of the society towards the concept of marriage. These factors are constituents of external environment and could not be controlled by the organisation.

Hence from the above we can conclude that the correct answer is socio-cultural component.