To what extent does demographic change in the UK represent more of an opportunity than a threat to UK businesses?

1256 Words Dec 1st, 2013 6 Pages
The UK economy is constantly changing for various reasons such as improvement in medicine and increased globalisation leading to people living longer and the UK economy becoming more diverse culturally. Whether or not it provides an opportunity or a threat to a business will largely depend upon how the management of the business decides to attempt to change because of the change of the demographics.
The largest change to the UK demographics would be the overall increase in the average age of the country, because of the innovation in medicine keeping people alive for longer and people not getting sick for long. This could provide many opportunities for a firm in the UK, either in sales or the management of the firm. A firm could change the
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The only thing that will affect them is that they potentially have a new market to enter and potentially earn money from. The change in the average age could potentially cause a problem though for employers because of increased pension pays. With people living longer resulting in people being retired for a substantially longer time, it results in people living for longer and claiming pension for much longer. This could cause problems for firms because of increased costs leading to firms struggling to break even. This also causes great stress on the NHS and other public funded medical establishments resulting in the government having to spend more and more money on these services, resulting in less money or higher taxes for UK firms. However, the older age could also provide a benefit to UK firms, with an increased amount of potential employees. For example BnQ currently employ a large amount of older people to work in their stores, rather than teenagers and you adults. This is because they found out that, in their case at least, that customers preferred an older store assistant rather than a younger one, finding that they were friendlier, more helpful and overall increased the level of customer service. However, not all industries can utilise the older generation as employees, such as the technology industry who need to have the younger generation as employees because of their involvement

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