How Business, Cultural, and Natural Environments Shape Organizational Behavior

This report discusses how business, cultural, and natural environments shape the behavior of organizations, using TESCO as an example. It covers the meaning of cultural, business, and natural environments, and conducts a PESTEL and SWOT analysis of TESCO. The report concludes by identifying the impact of these factors on organizational decision-making and long-term advantages.

CONTEMPORARY BUSINESS
ENVIRONMENT

Contents
INTRODUCTION.................................................................................................................................3
How do the Business, Cultural, Natural Environments shape the behavior of your chosen organization
...............................................................................................................................................................3
PESTEL and SWOT..............................................................................................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................9

INTRODUCTION
Business environment refers to examining the internal and external factors of the
company which affecting the overall working of the organization. The internal factors such as
employees, infrastructure of the business or also their working criteria regarding targeting the
customers (Business environment, 2020). The external factors relating to the clients, suppliers
or owners strategy or government regulation which is imposed in respect of managing the
business in right manner. In respective of business environment, the major impact the
business are facing is relating to changes in market trends. This refers to the positive and
negative aspects of the business. The positive aspects results in reducing the wastages in the
business though producing the products as per the customer demands. The negative aspects
which is raised through this aspects is relating to conducting lot of planning in promoting the
business as per taking care of the environment impact.
Present report is based upon the TESCO Company which was founded by Jack Cohen
in 1919 having headquarters in England. Due to carrying the renowned brand image in
market, they are considered to be one of the top most retailers sectors in UK. Customer are
mainly attracted to the business and by this aspects, they are located in number of places and
carrying 6800 shops around the world (Xing and Starik, M., 2017). The integrity of the
business is determined though carrying the business by wider range of person and similarly in
case of TESCO, the business is carried by 4,50,000 employees which are promoting the
business and enhancing their goodwill at larger scale. Due to changes in time, most of the
companies are promoting their business through online marketing. Thus, TESCO also
adapted this concept in respect of providing innovative scheme and offers in their own online
websites which resulting in gaining major benefits to their business.
In this report, the matters which is covered is relating to understanding the meaning of
the cultural, business and natural environment which results in shaping the organizational
behaviors in better manner. It is also covered in this report regarding conducting PESTLE an
SWOT analysis of the TESCO regarding examining its factors which affecting the working
of the business in larger way. It further ends with the conclusion in which the whole matters
is concludes in the brief and also the factors are to be indicated which is discussed in this
report. The main reason of conducting this report is to be identify the impact of various
factors which helps business in taking the right decision and implement the strategies and
tactics to gain longer terms advantages in business.
How do the Business, Cultural, Natural Environments shape the behavior
of your chosen organization
Organizational behavior is the process which looks at studying the performance of
both group and individual within an organization. This generally used to examine human
behavior as well as working environment of an organization. On the basis of the same try to
examine the impact of same on job structure, performance, communication, motivation,
leadership, etc. Organizational behavior in the organization used to be impacted by variety of
different element. Some of them are as follows:
Organizational culture is defined as system of shared assumption, values, and
beliefs, which governs how people behave in organizations. There are four different type of

culture generally used to prevail in the organization. All of this generally used to shape the
business environment.
 Power Culture, It is the type of the culture in which power is being help by just few
individual in the organization. They are the one who used to take different decision in
the organization. All employees in the organization are judged on the basis of what
they have achieved rather than how they have achieved the same in organization. This
type of culture in the organization is generally not accepted by employee in the
organization, this eventually used to impact the working environment of the
organization in negative way. This eventually used to drive organization behavior.
Also, power holding individual can influence the organizational behavior through
their decision (Van Wormer and Besthorn, 2017).
 Role Culture, Role culture is the type of the culture in which all the employee in the
organization are very much clear about the different role which they have to perform
in the organization. In this type of the culture position or role of the individual in the
organization used to shape organizational behavior in the organization. As all of them
used to work according to the responsibility allotted to them. This type of the culture
in the organization generally used to influence the organizational behavior in negative
way, as amount of innovation used to be reduced in organization. As employee are
concern about completing the different task which has been allotted to them in the
organization. They do not look at bringing something new in the organization. At the
same time these types of culture in the organization also help the organization in
bringing good sort of clarity among employee, this eventually help the company in
building good organizational behavior.
 Task Culture, It is the type of culture in the organization in which organization used
to form different team to address different type of the issue faced by the organization.
Also, teams are formed in the organization to carry out different operation of the
business. This used to impact the organizational behavior in the positive way. As all
employee used to help each other to carry out different operation of the business. This
eventually used to enhance the level of efficiency in the organization, this eventually
used to help the company in building good and positive organizational behavior in the
organization (Wesselink, Blok and Ringersma, 2017).
 Person culture is the culture in which all the employee used to see themselves
superior to the organization. This is the culture in which organization used to just
operate in order to provide all employee to work for them in the organization as all
employee in the organization used to work to accomplish the individual goal in the
organization, this eventually result in overlooking the organizational goal of the
business. This eventually used to shape the organizational behavior in negative way.
At the same time it has seen that it use to follow good sort of innovation in
organizational behavior which used to enhance the efficiency of business in long run.
As all employee in this culture used to innovate new idea to carry out operation of the
business in the market (Perera, 2017).
Tesco generally used to follow the task culture in the organization, this eventually used to
help the company in building good sort of organizational behavior in the organization. As all
employees in the organization used to get help of different employee in the organization at

the time of bringing any sort of changes in policy of an organization, it also help company in
building good working environment.
Business in whole also used to shape organizational behavior in an organization.
Organization generally used to operate in the market, with the sole motive of achieving the
organizational goal very efficiently. As a result organization used to plan different activity in
the organization in a way that it used to help the organization in achieving the organizational
goal very efficiently at workplace. This eventually shapes the organization behavior in many
different ways. Looking at the vision of Tesco in the market that is to offer good quality of
the product in the market but not at the cost of any stakeholder interest, this eventually used
to build a good sort of organizational behavior in the organization. As Tesco generally used
to offer a good sort of remuneration to all employees for the services which are render by
them in the organization, this eventually used to create the good working environment in the
organization. This eventually improves the efficiency of the business which helps company in
building good organizational behavior. All the leader and manager in the organization used to
carry out different operation in the business in a way that it used to help the company in
achieving the organizational goal. As a result they used to take help of different decision in
which individual performance of the organization is interlinked with the performance of
organization in the market. This eventually used force the leaders and manager to take
different decision in the organization in a way that it used to shape the organizational
behavior in a way that Tesco is able to achieve the organizational goal very efficiently in the
market. Generally, at the time of making different plans and setting different goal in the
organization. Planner generally considers current organizational behavior and on the basis of
same used to set up different objective of an organization.
Natural environment shaping the organizational behaviors
Natural environment is one of the major aspects which is undertaken by organization
in respect of taking care of the resources which is used in the business. It is necessary for the
organization to shape their business through promoting their company by protecting the
environment and also producing products from eco-friendly utensils. In relation to
understanding the geographical location, it is stated that the business is covered with wider
range of people who belong to different background and also they are working in the business
to provide benefits to them (Rofcanin, Las Heras and Bakker, 2017). In relation to
understanding the shaping of the organization, it is undertaken by bringing innovative ideas at
work place and also employees are motivated to work as a team.
Thus, natural environment in respect of geographical location stated in respect of
accepting the different culture at work place and also not discrimination any of the person on
the bases of caste, sex, culture, region and religion. Another point which is discussed in the
natural resources is relating to applying the eco-friendly products or dealing in such products
which are prepared from the organic ingredient. As through this manner, TESCO can support
some amount of profits to the environment through protecting the nature and also reducing
the impact of waste in the country (Eisend, Evanschitzky, and Gilliland, 2016). As
environment is mainly suffered through this perspective and thus if the business are dealing
in such aspects, it results in managing the country economy and environment in better way.
Climatic conditions: As most of the business are promoting their products through
online marketing and also they are promising their customer to deliver the products within the

set time period. Thus, issues which the company is facing is relating to bad weather condition
or any climatic condition which restricting the company to deliver the products in another
country. The major challenges which the TESCO is facing is during this time period, in such
manner, they impose certain condition to the customer regarding paying compensation if the
goods are delayed in any of the reason other than natural calamities. By this aspects, they can
shape their business and its activities in right manner.
Location aspects: It is also one of the reason which results in shaping the organization
behaviors in better way as it helps in reducing the cost of transportation and also protect the
environment through unwanted pollution. If TESCO is located in the center places than it
helps the people to easy access their products and also had to travel less to purchase such
products (Barsade, and O’Neill, 2016). Thus, in respect of shaping the business, they had to
operate their stores in the prime location of the country and through this manner, they can
easily beat the competitors by providing flexible services to the customers.
PESTEL and SWOT
PESTLE
 Political factor: Performance of Tesco is influenced by the political factors occurring
worldwide. Political factor include the tax rate, act of legislation and country's
stability. Tesco also contribute in the generation of the employment which leads to
development of the country. Tesco provide job when there is financial instability in
the country. Tesco help in development of the workforce. This lead to increase in
demand for its product.
 Economic factors: Cost, demand, profits and prices are the basis of any firm. Tesco is
mostly influenced by the economic factors. Finance accessibility is affected by the
change in the taxable policy and other factors so Tesco should be aware about the
policies. Company had also focus on the internationalism and diversification as Indian
economy is effected by economy of UK as well. This lead to major reason for the
Tesco for its success .
 Social Factors: Social factor include the change in attitude, belief and taste. This
influenced the Tesco to change its product and diversify according to the needs of
customers. Customers are interested in bulk shopping and one-stop shopping for
which Tesco has decreased the number of food items. Tesco has succeeded in facing
the changes by adapting organic products.
 Technological Factors: change in technology provide new opportunities for the Tesco.
This lead to two changes in the Tesco. Online shopping has been includes in Tesco
with the facilities of home delivery. Secondly, they had provide self-service checkout
points. This leads to convenience for the customer and lead to decrease the cost of
labor for company. For reducing the carbon footprint Tesco had invested in energy
efficient project.
 Environmental Factors: Tesco had invested in energy efficient project which leads to
reduce 50% of carbon footprint by 2020. They also tried to increase social conscience
in the customer which leads to minimize the waste.

 Legislative factors: Tesco performance is directly impacted by the government
legislation and policies. As there are many different legal complex what ch has to be
complied by the organization in their Operations.
SWOT
Strength
 As Tesco invested a huge amount in the development and training of the employee
they have highly innovative and creative employees. This lead to increase in the
innovation, creativity and profits of the organization.
 Tesco have ensure good quality of the product and fast after and on sale service which
increases the satisfaction of present customers and increase the reputation in the eye
of potential customers.
Weakness
 As Tesco want each customer to be served for which they have more inventory as
compare to the competitors which lead to blocked of their fund and which eventually
impact the long term growth and development of the organization.
 For expansion and diversification of business in different geographies Tesco should
have huge amount which should be invested in technology. Right now Tesco is
lacking behind in term of technology (Gheibi and et.al., 2018).
Opportunities
 As Tesco has invested in online shopping they have increase number of customers.
New sale channel have open by this action of organization. This makes easy access to
customer and identifies their needs easily.
 Reduce cost of product by decreasing the transportation cost which leads to increase
the profitability of Tesco. This will lead to supply of organization product to far place
at minimum cost (Achinas and et.al., 2019).
Threats:
 Competitors are increasing day by day which act as a thread for organization as any
product when launch by the organization competitors also launch the product and with
that there is no regular supply of new product.
 Change in Trend and the attitude of the customer towards act a thread to the physical
Organization as customer are attracted towards online shopping (Chatterjee, Pereira,
and Bates, 2018).
CONCLUSION
This report has summarized good sort of information regarding Tesco. Tesco is one of
the biggest retailer superstore operating chain in UK. Tesco used to operate at global level as
organization used to operate in more than one nation together to carry out different objective
of an organization. Going through the above report it has been summarized that there are
many different element which used to shape organizational behavior in an organization.
Cultural is one of the main elements out of all. All the organization used to follow the

different cultural which is generally based on different ethics, values, and beliefs, which
governs how people behave in organizations. This eventually used to influence the
organizational behavior in a way that they used to incorporate different sort of culture in an
organization. Looking at the Tesco culture it has been concluded that Tesco uses the task
culture in the organization, this used to incorporate better amount of human interaction in the
organization. This eventually used to influence the organizational behavior in positive way.
Then report goes on to conclude those organizational objectives are another element
which used to drive organizational behavior in an organization. As all leader in the
organization used to take variety of different decision to influence the organizational behavior
in a way that it help organization in achieving the different goal very efficiently in the
market. As organizational behavior used to provide good hand of support to all employees in
achieving the organizational goal that efficiently in the market. Also, it has concluded that
organization generally used to analysis the organizational behavior at the time of making
different objective of an organization. After that report conclude that natural environment of
the nation also used to influence the organizational behavior of the organization. As all the
organization always try to make a link between the environmental factor and organizational
goal. This eventually used to impact the organizational behavior of Tesco. It used to promote
good image of organization in front of internal as well as in the external stakeholder of the
company.
After that the report goes on to highlights the internal and external environment of the
company in the market. Internal and external environment of the organization used to show
that organization is having great internal as well as external position in the market. As report
shows that almost all the external factor of the organization are very favorable for the
organization. At the same time strength of the company are good enough to overcome the
variety of the issue which is faced by the organization and also running variety of the
operation of the business in future as well.

REFERENCES
Books and Journals
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review, 94(1), pp.58-66.
Chatterjee, A., Pereira, A. and Bates, R., 2018. Impact of individual perception of
organizational culture on the learning transfer environment. International Journal of
Training and Development, 22(1), pp.15-33.
Eisend, M., Evanschitzky, H. and Gilliland, D. I., 2016. The influence of organizational and
national culture on new product performance. Journal of Product Innovation
Management, 33(3), pp.260-276.
Gheibi, M and et.al., 2018. Controlling air pollution in a city: A perspective from SOAR‐
PESTLE analysis. Integrated environmental assessment and management, 14(4),
pp.480-488.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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based SWOT analysis.International Journal of Information Management, 44, pp.194-
203.
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behaviors and organizational culture: Effects on work engagement and
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Van Wormer, K. and Besthorn, F. H., 2017. Human behavior and the social environment,
macro level: Groups, communities, and organizations. Oxford University Press.
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workplace and the role of managers and organisation. Journal of Cleaner
Production, 168, pp.1679-1687.
Xing, Y. and Starik, M., 2017. Taoist leadership and employee green behaviour: A cultural
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Online
Business environment. 2020. [Online]. Available through:
<http://www.businessdictionary.com/definition/business-environment.html>.