Contemporary Business Environment

CONTEMPORARY BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Business, Cultural and Natural Environment Shape Behaviour..................................................3
Pestle Analysis.............................................................................................................................8
Swot Analysis..............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment basically refers to all the forces which have an influence on
business. Forces which are in this environment are political, social, economic and technological
factors and these factors are not in control of the business. There are changes which are required
in businesses and also improvement so that they can meet the demands of customers which will
be very helpful in gaining more revenue. Decisions which are taken hypothetically will not be
helpful for a long run in market therefore decisions should be taken after analysing business
environment. In UK, there are lot of opportunities for businesses to grow but right strategies and
tools have to be used so that the right decisions can be taken. United Kingdom is having a
capitalistic nature of business which is creating more employment take place in organization.
Long term growth and survival of business is easily present after understanding business
environment so that they can have a better functioning in market. Business environment is
dynamic in nature and can change according to situations which is a very strong point of using
this force to understand market better.
Tesco is a multinational grocery retailer organization and the company perform its
operations around 13 countries. Tesco is a public limited company and they are dealing in
products like clothing, electronics, toys, petrol, software, furniture, etc. As of 2019, number of
employees working in company are 450,000 and revenue which company generated was 63,911
euros (Tesco, 2020). Headquarters of Tesco is in England, United kingdom and there are more
than 100 stores across country. Tesco is listed in London Stock Exchange and is place by gross
revenues as the third largest retailer in the world.
The report will be discussing cultural, natural and environmental factors which are
shaping the behaviour of organizations. These factors help in understanding the business better
and make decisions for them accordingly which will be beneficial for a long run in the market.
This would help the organization to shaped in a better way and the report would also consist of
SWOT and PESTLE factors of Tesco so that the business environment of the organization can be
well understood.
Business, Cultural and Natural Environment Shape Behaviour
Businesses have a lot of forces which needs to consider and then make decisions for a
long run in market. There is a behaviour which is required out of an experienced organization

which is going to help them in making the standard for themselves. In shaping the behaviour of
organization, culture, nature and business environment play a very important role.
Culture Environment
Culture environment are beliefs, practices, customs and behaviours of business which
will make the functioning of the organization better. These factors have an impact on
organization which makes organization form policies or rules accordingly will make the working
environment better (The cultural environment, 2019). Culture does shape the behaviour of an
organization since there is a sense of working within the organization which impacts on the
external factors. This will make the employees have a better atmosphere in Tesco be better and
work as team which will improve the productivity. Leaders provide the employees with support
and understanding so that there is a balance on the working environment. Leaders and managers
provide time flexibility to employees and make decisions so that there is a minimum use of
resources which would make the company have profitability for a long term. Tesco is following
market oriented and hierarchy oriented cultures so that they can make a better functioning in
market for themselves. Market oriented helps Tesco to focus on competition in market and
achieve the objectives and goals they have set for the future. This helps business to have a
direction of functioning which would have employees have clarity as to what the organization is
expecting out of them. Hierarchy oriented there is no communication gap in Tesco because of the
managers and leaders who are providing clarity to the employees which impacts as efficient
functioning of Tesco. This way there is a positive work culture in organization which would be
very helpful for Tesco because the productivity will increase. Cultural environment is not just
creating a life balance amongst employees of Tesco but it is also creating a sense of interpersonal
community between employees. To create a healthy environment in organization Tesco gives the
employees incentives, rewards and extra privileges so that employees are motivated all times.
Since the employees not just do their work but fill in a lot of gaps in organization, so they are
very talented and there are events which are held in Tesco so that employees get a platform to
show their talent. Feedbacks are taken from the employees so that there are changes made by
leaders which are accepted by all and the organization can benefit from that factor (Tesco
controls, Inc., 2020).
There are employees working in Tesco who do not share their language, culture, rural
background, etc. but Tesco makes sure that they do not differentiate and treat all of them the