Explanation:

The social environment comprises of many dynamic factors such as social traditions, cultural influences, values and beliefs prevailing in the society, social stratification, etc. Companies, especially international companies always study the cultural and social environment of a country before entering the market.
The social environment and the cultural environment in which a firm operates can be a major factor in the success or failure of the firm. The social environment comprises of many dynamic factors such as social traditions, cultural influences, values and beliefs prevailing in the society, social stratification, etc. Companies, especially international companies always study the cultural and social environment of a country before entering the market. It is important that your goods and services are in tandem with the social environment of the country. Otherwise, the company could face a backlash and run into losses.