Contemporary Socio-economic issues

• Low income levels lead to a difference in salaries
• Impact of Low Income Levels

  • poverty limits buying power
  • unable to grow business
  • consumers spend money on cheap goods and products> increase competition
• Inflation: general increase of prices- fall in the purchase value of money
• Unemployment is when people are not employed but want work.
• Impact of Inflation

  • Sales decrease
  • cost of raw materials increase> less money for production
  • cost saving models implemented
  • Reduced profits leads to retrenching staff
• Social, cultural and demographic issues: diverse population, way people live, work, produce and consume products
• Impact of social, cultural and demographic issues

  • diverse population= diverse spending
  • accommodate to preferences
  • track latest trends, increase market share
• Economic crime (white collar crime): unlawful use of money
• Impact of economic crime

  • Theft of profits (fraud)
  • Security features increase costs
  • lack of Cyber Security
• Population Growth: Percentage change in population (death, birth, relocation)
• Impact of Population Growth

  • challenge to provide goods and services, creates financial strain
  • job creation
  • strain on natural resources
  • economic strain as people need Gov's support
• Illiteracy: the inability to read or write
• Impact of Illiteracy

  • no written contracts, not protected
  • disadvantage
  • Business help educational programmes
  • Unemployment
• Impact of Lack of Skills

  • time seeking assistance> decrease productivity
  • Task done without knowledge or skill> poor performance, errors
  • increase budget for development programme
• Inflation: general rise in prices of goods and services over time
• Unavailability of Natural Resources

  • Oil, coal, water gold
  • Not controlled or monitored, they were disappear
• Impact of Unavailability of Natural Resources

  • Stop production of goods
  • cannot be recovered
  • find alternate energy source> additional operational costs
• Inefficiency in use of Resources

  • When number of products produced are less than maximum possible
  • Wastage= Further depletion of natural resources
  • Population increase> increase use of natural resources
• Dumping

  • country exports (excess) products at lower than international market price.
  • Lower price than the foreign country's market value
• Impact of Dumping

  • Local business make less profit, cannot compete
  • Close business operations
  • Decrease in local production> loss of jobs
  • Can't manufacture at equal or lower price
• Exhaustion of Natural Resources

  • Over usage of natural resources, depletion
  • Farming, Mining, Fossil Fuel Industry
• Impact of Exhaustion of Natural Resources

  • business dependent on their existence
  • lead to energy crisis
  • Substitute with chemicals, this contributes to climate change and high costs to find solutions
• Strikes

  • joint action organised by employees or their union representatives to -stop working- force employers to meet their demands
  • Result or unresolved labour disputes (working hours/ conditions)
• Impact of Strikes

  • jeopardies employer/employee relationship
  • Affect teamwork
  • financial loss= low productivity levels and consumer confidence affected
• • Piracy: the unauthorized use or reproduction of another's work
• Impact of Piracy of Business Operations

  • losses in revenue
  • Decline in sales and profits
  • Artist see no value in creating
  • Affect productivity levels
• Possible Solutions to Piracy

  • Copyright ©
  • Patent
  • Trademark ™
• Copyright ©

  • Exclusive legal right assigned to creator to print/perform/publish/record
  • Allow selling their work for profit
  • Exclusive rights= can give permission for replication
  • Intellectual property
• Intellectual Property: is any product of the human intellect that the law protects from unauthorised use by others
• Patent: an exclusive right granted for an invention, product or process which is a new way of doing something
• Patent

  • gives creator of product right to stop other people from making/ using their invention
  • granted by Gov. for 20 years
• Trademark ™

  • sign, symbol, character or word that is protected by law to represent a product/company
  • business easy to identify
  • protected forever, renewed every 10 years for a fee
• Industrial Relations

  • Relationship between employer and employee
  • Explains relationship between employee and management
  • Union versus employer relationship
• Go-Slow

  • Industrial Action where work/progress is slowed/delayed as a protest
  • reduce productivity and effieciency
  • used in industries where strikes aren't allowed
• Lockouts

  • when employer prevents striking employees from entering business premises
  • Employers organisations protect employers
  • need 48 hrs notice in writing
  • ensures property, equipment and non striking workers are safe
• Labour Relations Act

  • Structure for employee and employer relations
  • encourages collective bargaining and workplace forums to support employees in decisions
  • Promote fair labour practices
• Labour Appeal Courts
• CCMA: Commission for Conciliation, Mediation and Arbitration
• Trade Unions: association formed by workers to represent their rights in the workplace
• Role of Trade Unions

  • represent staff members in workplace
  • advocate economy to support working class and poor
  • poverty production programmes, reasonable income levels
  • Job creation strategies
  • Highlight need for job creation