WIC Malaysia SBLC3004 Assignment: Aging Population and Business

This report examines the socio-cultural and demographic factors associated with the aging population and their impact on business. It analyzes the opportunities and threats these factors present, focusing on market segmentation, targeting, and positioning strategies. The report details the trends of the global aging population, including increasing life expectancy and demographic shifts, and explores related concerns such as financial and medical issues. It also investigates the causes behind the aging population, such as the baby boomer generation, improved life expectancy, and reduced birth rates. Furthermore, the report highlights the impact of macro-environmental factors on businesses, offering recommendations for profit and non-profit organizations to exploit opportunities and defend against threats arising from the aging population. The report also includes a detailed discussion on segmentation, targeting, and positioning in the context of an aging population.

Introduction to Business
Environment
Ageing population
Student Name

Introduction to business environment 1
Executive Summary
In this particular report, on the basis of the given article of Forbes majorly focuses on the
sociocultural demographic factors of the ageing population. This report majorly highlights
that how the opportunities and the treats related to the ageing population works for the
business performances. This report also focuses on the market segmentation targeting and the
positioning of the business houses. This report also pinpoints the causes related to the ageing
population.
According to my analysis organisation or the business house, do adopt the duo generational
concept in which both the young generation as well as the ageing population do work and
gain maximum profits and the overall success of the firm.

Introduction to business environment 2
Contents
Executive Summary...................................................................................................................1
1.0 Introduction..........................................................................................................................3
Objective of the report...............................................................................................................3
Purpose of the report..................................................................................................................3
Scope of the report.....................................................................................................................3
2.0 Impact of macro environmental factors over businesses.....................................................3
3.0 Segmentation, Targeting and positioning of the market......................................................5
Market segmentation..................................................................................................................5
Four different segmentation bases.............................................................................................5
Geographic Segmentation:.........................................................................................................5
Demographic segmentation:.......................................................................................................6
Behavioural segmentation..........................................................................................................6
Psychographic segmentation......................................................................................................6
Concept of Segmentation, targeting and positioning.................................................................6
Segmentation:.............................................................................................................................6
Targeting:...................................................................................................................................6
Positioning:................................................................................................................................6
4.0 Brief about global aging population.....................................................................................7
Trends of global ageing population............................................................................................7
Increasing life expectancy:.........................................................................................................7
Demographic trends:..................................................................................................................7
More of oldest old:.....................................................................................................................7
Concern of aging population in upcoming years.......................................................................8
Financial concern:......................................................................................................................8
Medical concern:........................................................................................................................8

Introduction to business environment 3
Decision making concern...........................................................................................................8
Challenges with social communication and understanding.......................................................8
Main causes behind ageing population......................................................................................8
5.0 Aging population impact along with opportunity and threat over businesses:....................9
Improved business performances...............................................................................................9
Pension Funds............................................................................................................................9
Reduction in birth rate..............................................................................................................10
Improved technology:..............................................................................................................10
Reduction in immigration........................................................................................................11
6.0 Conclusion..........................................................................................................................11
7.0 Recommendation................................................................................................................11
8.0 References..........................................................................................................................11

Introduction to business environment 4
1.0 Introduction
Objective of the report
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.
Purpose of the report
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.
Scope of the report
In this report the requisites investigation and analysis is done
2.0 Impact of macro environmental factors over businesses
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:

Introduction to business environment 5
(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

Introduction to business environment 6
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).
3.0 Segmentation, Targeting and positioning of the market
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).
Four different segmentation bases

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(Source: Pratap, 2018)
Geographic Segmentation:
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.
Demographic segmentation:
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.
Behavioural segmentation
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.
Psychographic segmentation
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).
Concept of Segmentation, targeting and positioning
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.
Segmentation:
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.
Targeting:
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

Introduction to business environment 8
worth full? Does it will be profitable? What sort of competition the producer has to face
while the targeting the particular segment?
Positioning:
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).
4.0 Brief about global aging population
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).
Trends of global ageing population
Increasing life expectancy:
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).
Demographic trends:
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

Introduction to business environment 9
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).
More of oldest old:
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.
Concern of aging population in upcoming years
Financial concern:
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.
Medical concern:
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.
Decision making concern
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).
Challenges with social communication and understanding
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.
Main causes behind ageing population
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.

Introduction to business environment 10
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).
5.0 Aging population impact along with opportunity and threat over
businesses:
Improved business performances
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

Introduction to business environment 11
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.
Pension Funds
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).
Reduction in birth rate
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:
Improved technology has majorly affected the working of the business.