Contemporary Business Environment

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Discuss the business, culture and natural environment that shape the behaviour.......................2
PESTEL and SWOT analysis......................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment consist of both internal and external factors that play a major role
in decision making of a firm and affect the business directly or indirectly(Barr, and et. al., 2018).
In other words, it is a broader term that includes various aspects such as level of employment,
competition, innovation and technology, customers and so on that provide assistance in planning
and thus improve the overall growth and productivity of a business. There business environment
in which company carry out its operation is regarded as dynamic and provide goods and services
in order to fulfil the requirements of customers. The main motive of a firm is to earn profit and
meet with changes by optimum utilisation of resources in order to reduce waste. This poses
several challenges by combatting threats and thus help to modify the entire entity. This report is
based on Tesco which is one of the popular retailing industry in UK that deal with wide range of
products or services such as groceries and home appliances in various supermarket, convenience
stores and hypermarket and so on to gain access of large number of customers.
This firm aims to provide new and fast efficient services at 6800 shops and provide great
number of employment opportunities at a global level. The respective company has expanded its
operations in different parts of the country by providing an easy access to their customers. This
report also cover business, culture and natural environment that help to shape the behaviour
within an organisation. Every business has different aspect and culture that determine the overall
quality and productivity of a company.
This report also cover various aspects such as SWOT and PESTEL analysis to determine
the resources and competitive factors to achieve a significant position within the retailing
industry. Strategic planning help company to decide an appropriate course of action among the
various alternatives to achieve a competitive position in a dynamic environment. An external
analysis is conducted to evaluate the goal and resources of an organisation by continuous
monitoring of the environment and provide assistance in decision making of a firm. The
PESTEL analysis consist of various external factors such as political, legal, environmental,
technological and so on to determine various analysis and thus help in overcoming various
challenges of a business. The SWOT analysis is conducted to determine the various internal
factors by making use of opportunities and avoiding threats by using proper optimum utilisation
of resources. In a competitive era, the manager itself adapt the changes by facilitating proper
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coordination and cooperation in a workplace and thus this promote growth opportunities and
ensure success.
Discuss the business, culture and natural environment that shape the behaviour
Business environment consist of several factors such as level of employment,
competition, government policies, demand and supply of various aspects of an economy(Gee,
and Giller, 2016). Tesco is one of the leading company in UK that deal with wide range of
services such as toys, groceries, home appliances, furniture and so on to gain large access of
customers. The main purpose is to provide new and innovative technology so as to meet the
changes in taste and preferences of clients and to gain positive reputation in different parts of the
country. In a dynamic environment, it is necessary for the manager of respective firm to adapt
the changes by meeting the demand and preferences of customers. Changes play an important
role in an organisation which can be determined through innovative ideas and full commitment
under the current modern era. There are two types of business environment, namely, economic
and non economic environment. Economic environment includes the overall characteristics of
economic on the basis of which firm operates such as stages of business cycle, monetary and
fiscal policy and so on. Tesco is renowned public limited company which has 6800 shops and
number of employees are 4,50,000 in an around the globe and it is also considered as the second
largest retailer in terms of profit. The motive of respective firm is to add value among the
customers and thus maximize the wealth of shareholders.
Business: Tesco lead several kinds of businesses such as Tesco bank to offer customer
insurance, credit cards and saving account, Tesco telecoms to provide telephone services, Tesco
direct that provide electrical and home appliances, tesco.com to provide an experience of online
shopping among the customers across the globe. By understanding these business models, all
these help the company to work in an efficient manner and effective manner. The concerned firm
aims to provide low cost and good quality product in order to gain competitive position within
the retailing industry. Tesco holds the maximum market share as compared to its competitors
and thus this help in gaining positive reputation at a global level.
Stakeholders are the group of individuals, or associations that is majorly influenced by
various activities of a company and in case of Tesco, it includes customers, investors, employees
and so on. The shareholders want the company to make more profit so that they could get
maximum dividend. Customers are the first priority for any business that help in deciding the
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