Contemporary Business Environment

Contemporary Business
Environment

Table of Contents
1. INTRODUCTION.......................................................................................................................1
1.1 Company background.......................................................................................................1
LITERATURE REVIEW................................................................................................................2
2.1 Economic environment on impact on organisation behaviour.........................................2
2.2 Non- economic environment and its impact on organisational behaviour.......................2
DISCUSSION AND ANALYSES..................................................................................................6
3.1 SWOT Analysis................................................................................................................6
3.2 PESTEL Analysis.............................................................................................................7
4. CONCLUSION............................................................................................................................8
5. REFRENCES.............................................................................................................................10

1. INTRODUCTION
Business environment is essential aspect of businesses. The several forces that consist of
business environment are their suppliers, media, competitors, economic conditions, government,
investor and media etc., Contemporary business environment are increasingly dynamic and
competitive. It is changing rapidly with fast pace and as per there are changes in new concept of
accounting control that should be developed for coping up with change. Organization would
have to develop reliable and logical strategies for business and to utilize tools for management
accounting in order to support control, plan and the decision-making (Nazarko and et.al., 2017).
The contemporary business environment includes the macro ad micro environment of business.
Interaction among the business company and their environment represent manager with several
opportunities and threat which are associated with organization. Contemporary business
environment indicates circumstance and idea of current time in into business environment. It
reflects the current situation of market which can affect the overall business to the great extent.
The report ends with PESTEL and SWOT Analysis through which all macro and micro factors
which are associated with the business can be analyzed and further utilized in the business for
gaining particular goal and objective of business.
1.1 Company background
TESCO is the multinational general and grocery merchandize retailer across the world. Its
headquarter is situated at Welwyn Garden City, Hertfordshire, England, United Kingdom. The
company had market share of 28.4%. It is ninth biggest retailer across globe as per their revenue.
Company owns 6,800 shops across the world. The total revenue of company is 63,911 million.
They are employing more than 450,000 employees into their company. The above report
includes the discussion of how business, cultural and natural environment shape the behaviour in
organization through which they can easily achieve their goal and objective (Danzig, 2018). The
company with appropriate business, natural and cultural environment can have a positive
behaviour within the organization through which they can enhance performance of their
company and sustain in market for long term. This environment can affect the business to great
extent. The two type of business environment are as follows economic and non-economic
environment. This influence the organizational behaviour across the company and this could
significantly affect the overall business operation and functionality.
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LITERATURE REVIEW
2.1 Economic environment on impact on organisation behaviour
This business environment is referred to those factor that are external force in
organization's activities and thus immediate environment is not being concerned under this.
These are the factor that directly affect working condition and operation of organization as
whole. These factors are not under the control and thus to control this company is incapable and
powerless. The business environment could be divided into economic and non-economic
environment. Hence, business is generally an economic activity and environment of the business
for national and the international businesses both are getting importance(Düking, Holmberg and
Sperlich, 2018). Economic environment of TESCO will include economic system, financial
system, business cycle stage, government's economic policies and macroeconomic parameters.
The non-economic environment contains government policies, political system, cultural values,
legal structure, technological development, macroeconomic parameters, social system and
natural environment of the nation.
Economic systems
Economic system is the institutional and legal framework by which all economic
activities are being undertaken. There are three kinds of economic system across globe that is
capitalism, socialism and the mixed economy. The capitalist economy contains main decision-
making of economic that is what to produce, how to produce and for whom to produce are taken
by organization. Whereas socialist system, overall decision-making is done through planning
control. If there is high rate of income growth then the demand of several products which are
produced by TESCO will also enhance. The stable pricing protects interest of business enterprise
and consumer both.
Economic conditions
If interest rate are high then no company prefer to make investment that is why profit of
firm get affected. This influence the behaviour of organisation to great extent. Economic stability
is another major factor which influence the organisation behaviour. For example, if there is
stable currency value then entity will be able to manage its export and import well hence it
would be better in sustaining in market for longer duration. The business economic environment
contains all factor which had an economical impact on the business. The business environment
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