SOCIO-CULTURAL ENVIRONMENT

Answer

Socio-Cultural Environment: Telus Communication Company
Telus is a product of the merger between Telus Communications and Telus mobility in 2005. Its headquarters is located in Vancouver, British Columbia. Currently it is the second largest telecommunications company in Canada with 29000 employees. It is a national provider of wireless communications and offers a range of other services including voice, data, and internet protocol. The target population of Telus Company is the working age population both men and women from all provinces and regions in Canada. The social cultural environment including demography, level of education, lifestyles, income and expenditure, as well as cultural and racial orientations largely influence consumer-buying behavior . This paper proceeds to analyze the social-cultural environment of the Canadian population based on the above-mentioned factors to identify how they are likely to affect business.
The current statics estimates the Canadian population at 35,540,400 as per 2013. Immigration is cited as the major source of population growth in the country. Stats projects that the population will continue to grow in the next 50 years to reach 40 million people by 2065 largely because of immigrations . Most provinces will experience population growth with only a few expected to decline including Nova Scotia, Newfoundland, and New Brunswick. Talus focus should be on the needs and preferences of the immigrant customers since they will form the bulk of the working age-population in the near future. Migrants account for two thirds of the total population increase in Canada. Natural increase is also substantial contributor to population increase although it remains low in some provinces. The proportion of the population that speaks English at home and in the offices accounts for the largest percentage at 71 percent followed by French at 21 percent . This implies that Telus needs also to consider language in its business strategy for these two dominant languages.
Figure1: Growth rate

(Source: Statistics Canada, 2015)
The proportion of the population under the working age bracket is high in Canada. This presents a positive factor for TCC. It implies that the proportion of the population under the category of those with high purchasing power in the country is high and that more people have the capability to buy. Unemployment is lower compared with the last decade but still high. Unemployment rates are expected to decline in the near future. This will have a positive impact on the business since more people will enter the bracket of those with high purchasing power. However, the share of the population above 75 years is expected to be more than double the present in the next 50 years rising from 7 percent to 15 percent. The country’s dependency ratio will in turn increase from 46 percent to 70 percent . The increase in the aging population is attributed to increasing longevity and the falling fertility rates. This is a negative factor to the business of Telus since the proportion of the population with high purchasing power will decline.
Figure 2: Labor force characteristics
Labor force characteristics, by sex
Table summary
This table displays the results of labor force characteristics. This information is grouped by 1991, 2001, and 2011 (appearing as column headers), calculated using thousands, and percentage as units of measure.
1991 2001 2011
thousands
Labor force 14,336 16,105 18,699
Males 7,925 8,689 9,859
Females 6,412 7,416 8,841
Employed 12,857 14,941 17,306
Males 7,067 8,035 9,085
Females 5,791 6,906 8,221
Unemployed 1,479 1,164 1,393
Males 858 654 774
Females 621 510 619
%
Unemployment rate 10.3 7.2 7.4
Males 10.8 7.5 7.8
Females 9.7 6.9 7.0
Participation rate 66.6 65.9 66.8
Males 75.0 72.3 71.5
Females 58.4 59.7 62.3
Employment rate 59.7 61.1 61.8
Males 66.9 66.8 65.9
Females 52.8 55.6 57.9
Source: Statistics Canada, CANSIM table 282-0002.
(Source: Statistics Canada, 2015)
Education is another key factor in the social demographic of the population affecting Telus business. The average level of literacy is very high in Canada and this implies that the operating environment for Talus is that of sophisticated consumers . These consumers present a good market for telecommunication services especially data and voice. The current generation “internet generation” presents a good market for internet services.
Figure 3: Education
Educational attainment of working-age population
Table summary
This table displays the results of educational attainment of working-age population. This information is grouped by 2000, 2005, and 2010 (appearing as column headers), calculated using thousands, and percentage as units of measure.
2000 2005 2010
thousands
Working-age population 24,090 25,780 27,659
%
0 to 8 years of study 10.4 8.4 6.5
Some high school 17.8 15.3 13.6
High school graduate 19.6 19.9 19.7
Some postsecondary 9.4 8.6 8.3
Postsecondary certificate or diploma 27.3 29.8 30.9
All university degrees 15.5 18.1 20.9
Bachelor's degree 10.4 12.4 14.4
Above bachelor's degree 5.1 5.6 6.5
Note: Population aged 15 and older based on Labour Force Survey estimates.
Source: Statistics Canada, CANSIM table 282-0004.
(Source: Statistics Canada, 2015)
Statistics on family income in Canada indicates a good economic environment for business. Families show improved incomes in the last three decades with males having higher incomes than females . This is also a positive factor for Telus in terms of the family expenditure and purchasing power.
Figure 4: Population by economy family type
Median after-tax income, by economic family type
1989 1999 2009
$ constant 2009
Economic families, two people or more 56,200 55,100 63,800
Elderly families 39,200 39,300 46,800
Married couples only 35,200 38,700 46,400
All other elderly families 52,200 41,900 49,000
Non-elderly families 58,400 58,200 68,100
Married couples only 53,900 53,900 63,800
Two-parent families with children 61,300 63,500 75,600
Married couples with other relatives 80,400 82,800 97,300
Lone-parent families 28,600 30,100 39,700
All other non-elderly families 48,600 51,100 58,500
Unattached individuals 22,400 20,600 25,500
Elderly males 21,000 21,100 26,700
Elderly females 17,900 19,400 22,400
Non-elderly males 28,000 24,500 28,200
Non-elderly females 22,700 19,200 25,300
(Source: Statistics Canada, 2015)
Chinese and South Asian immigrants represent the largest proportion in Canada. Visible minorities are the second largest proportion of the Canadian population . This implies that Telus needs to consider composition f then population in this aspect.
Figure 5: Population projection
Population projection, by visible minority
Table summary
This table displays the results of population projection, by visible minority. This information is grouped by 2006, and 2031 (appearing as column headers), calculated using thousands, and percentage as units of measure.
2006 20311
thousands % thousands %
Total population 32,522 100.0 42,078 100.0
All visible minorities 5,285 16.3 12,855 30.6
Chinese 1,269 3.9 2,714 6.4
South Asian 1,320 4.1 3,640 8.7
Black 815 2.5 1,809 4.3
Filipino 427 1.3 1,020 2.4
Latin American 317 1.0 733 1.7
Southeast Asian 250 0.8 449 1.1
Arab 276 0.8 930 2.2
West Asian 164 0.5 523 1.2
Korean 148 0.5 407 1.0
Japanese 85 0.3 142 0.3
Other visible minorities 213 0.7 489 1.2
Rest of the population 27,237 83.7 29,222 69.4
1. Reference scenario, based on current demographic trends.
Source: Statistics Canada, Catalogue no. 91-551-X.
(Source: Statistics Canada, 2015)
Ontario, British Columbia, and Alberta are the three provinces representing the largest populations in Canada . Telus focus should be largely on these provinces.
Figure 6: Population by Provinces
Table 1 Population
1996 2006 2011p
number
Canada 29,610,218 32,576,074 34,482,779
Newfoundland and Labrador 559,698 510,313 510,578
Prince Edward Island 135,737 137,920 145,855
Nova Scotia 931,327 938,010 945,437
New Brunswick 752,268 745,674 755,455
Quebec 7,246,897 7,631,552 7,979,663
Ontario 11,082,903 12,665,346 13,372,996
Manitoba 1,134,196 1,184,031 1,250,574
Saskatchewan 1,018,945 992,122 1,057,884
Alberta 2,775,133 3,421,253 3,779,353
British Columbia 3,874,317 4,243,580 4,573,321
Yukon 31,387 32,276 34,666
Northwest Territories 41,741 43,198 43,675
Nunavut 25,669 30,799 33,322
p preliminary
Note: Population estimates as of July 1.
Source: Statistics Canada, CANSIM table 051-0005.
(Source: Statistics Canada, 2015)
Statistics indicate that births are the largest contributor to population growth currently followed closely by immigration . Business need to consider how to tap into the various segments of the population.
Figure 7: Components of Population Growth
Components of population growth
1990/1991 2000/2001 2010/2011p
number
Births 402,929 327,107 386,013
Deaths 192,439 219,114 252,561
Immigrants 221,382 252,527 258,906
Emigrants 43,692 47,766 52,456
Returning emigrants 15,208 17,910 25,364
Net temporary emigrants .. 25,563 20,163
Net non-permanent residents -52,853 39,592 11,495
p preliminary
.. not available for a specific reference period
Note: All figures are for the one-year period ending June 30.
Source: Statistics Canada, CANSIM table 051-0004.
(Source: Statistics Canada, 2015)
The population in Canada is vastly represented in terms of minority groups with over ten diverse groups. These diverse groups represent an important clientele base with varying consumer needs . This can be both an opportunity and a threat to business depending on how well it is addressed.
Figure 8: Population projection, by visible minority
Population projection, by visible minority
Table summary
This table displays the results of population projection, by visible minority. This information is grouped by 2006, and 2031 (appearing as column headers), calculated using thousands, and percentage as units of measure.
2006 20311
thousands % thousands %
Total population 32,522 100.0 42,078 100.0
All visible minorities 5,285 16.3 12,855 30.6
Chinese 1,269 3.9 2,714 6.4
South Asian 1,320 4.1 3,640 8.7
Black 815 2.5 1,809 4.3
Filipino 427 1.3 1,020 2.4
Latin American 317 1.0 733 1.7
Southeast Asian 250 0.8 449 1.1
Arab 276 0.8 930 2.2
West Asian 164 0.5 523 1.2
Korean 148 0.5 407 1.0
Japanese 85 0.3 142 0.3
Other visible minorities 213 0.7 489 1.2
Rest of the population 27,237 83.7 29,222 69.4
1. Reference scenario, based on current demographic trends.
Source: Statistics Canada, Catalogue no. 91-551-X.
(Source: Statistics Canada, 2015)
The proportion of the people who own houses in the population is high . This implies that the standard of living is high and people’s purchasing power is high. This is a positive factor for the business.
Figure 9: Home Ownership
Owned dwelling with mortgage Owned dwelling without mortgage Rented dwelling
%
Canada 34 31 35
Newfoundland and Labrador 32 46 22
Prince Edward Island 37 33 30
Nova Scotia 34 33 33
New Brunswick 38 38 24
Quebec 35 23 42
Ontario 35 32 33
Manitoba 37 29 34
Saskatchewan 34 40 26
Alberta 35 36 29
British Columbia 31 32 36
Yukon 30 28 42
Northwest Territories 27 19 54
Nunavut .. .. 80
.. not available for a specific reference period
Source: Statistics Canada, CANSIM table 203-0019.
(Source: Statistics Canada, 2015)
Socio-cultural factors play a critical role in determining the external environment within which a business operates. In order to compete favorably, a company needs to consider the different aspects of the population they serve in order to identify opportunities and threat.