Understanding the Business and Economic Environment

Understanding the
Business and
Economic
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Industry Analysis........................................................................................................................3
Structure of the chosen industry..................................................................................................4
STEEPLE Analysis.....................................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals:..................................................................................................................10

INTRODUCTION
Business environment explain as an aggregation of all the internal as well as external
factors that could affect the business activities and their operations as a whole. These factors
could be customers and their needs and expectations, employees, suppliers, market trends, social
trends, owners, government influences, economic changes and so forth. Analysing all these
factors supports in recognizing the corporate opportunities, assists in planning, tapping useful
resources and enhances entire business performance, profitability and growth (Ratten, 2020).
Whereas, economic environment can be elaborated as all the external economic factors that
affects the purchasing habits of customers as well as businesses and consequently, influences the
business performance. These factors could be on a small scale (micro) or large scale (macro).
The company which is chosen to complete this project is Tesco Organisation. It is a British
global company with headquarters in Welwyn Garden City, United Kingdom. It has outlets
across the Europe and become top market leader of retail sector in UK. It has founded in the
1919 as a group of market stalls in Hackney, UK. The project will discuss the industry structure,
business organisation and its nature in the selected organisation in context to the structure of the
industry. The essay will also demonstrate different macro environmental factors, including
social, technological, ecological, environment, political, legal as well as ethical.
MAIN BODY
Industry Analysis
Industry analysis is the tool which aims to serve the organisation to comprehend its
market position associated with other organisations which creates same kind of products and
services. This is regarded as the important element of effective strategic planning. The industry
which is chosen is retail industry from the UK Standard Industrial Classification (SIC 2007).
There are many channels which make up the UK groceries market and that are small
supermarket, digital businesses, conventional stores and many more (Bocken, Boons and
Baldassarre, 2019). In UK, along with Tesco, there are many supermarket chains that are
available for the customers and these are Sainsbury, Asda as well as Morrisons that are affected
by decreased sales as all such companies were taken over by other supermarket chain in
multinational market.