How Business, Cultural, and Natural Environment Shape the Behavior of Tesco

Contemporary
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
How business, cultural and natural environment shape the behaviour or attributes of Tesco....2
Illustrate PESTEL and SWOT analysis ....................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment comprises of economic and non-economic environments.
Economic environment factor includes, economic policies, economic condition and economic
environment (Amankwah-Amoah and Wang, 2019). Whereas, non-economic environment
involves, technological, legal, demographic, natural, social and political environment. All theses
factors directly or indirectly affect the business activities in the open market place. This assist the
firm to gain competitive advantages against competitors which is a positive mark for the
organization. By scanning the business environment effectively top level management is able to
plan long term objectives so that business can be in the leading position among other. For the
completion of this report Tesco is selected. It is a multinational retailer in United Kingdom. This
leading organization is located in Hertfordshire, UK.
The first store of Tesco grocery was opened in the year 1931 near London, England. The
founder is jack Cohen and the CEO is Dave Lewis. Business provide distinguish subsidiaries
such as, Tesco bank, Tesco Ireland, Tesco Mobile and many more. In the competitive market
place Tesco's main purpose is to create value for customers in order to build loyal customers for
longer time duration (About Tesco, 2020). There are 6,800 shops worldwide which are serving
those goods and services which are meeting the emerging needs of customers. There are 450,
000 employees working day and night to full-fill- the set goals and objectives in the specified
time duration. company is able to gain huge revenue in the cut throat competitive world because
a wide range of high quality product such as, clothing, grocery related products, travel insurance,
household products and so on is offered by the firm. This assignment covers, how business,
cultural, and natural environment shape behaviour of Tesco.
Changes in the climate is a major concern for every business because they need to come
up innovative idea which is friendlily in nature. By this organization is able to survive and
sustain in the market over the years. Additionally, Pestle analysis (political, economical, social,
technological,environmental and legal factor) is determined in order to make necessary
improvements in the loop holes so that business can survive for longer time duration. By doing
so business is able to compete with rivalry prevailing in the global market. SWOT analysis is
evaluated by the company operating in the open market place in order to identify the
opportunities prevailing in the global market (Black, 2019) . On the other hand through this
analysis management is able to determine the future threats which will be impacting the business
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activities greatly. It helps Tesco to make strong strategies so that impact of uncontrollable and
controllable threats can be reduced on company functions. Additionally, organization's strengths
and weaknesses are classified accordingly which guide the firm to grow and develop their
business accordingly in the intense competitive world.
TASK 1
How business, cultural and natural environment shape the behaviour or attributes of Tesco
In the open market place behaviour of Tesco is influenced by many factor like, cultural,
business and natural environment. All these affect the smooth functioning of the business in the
global market due to which set goals and objectives are not meet in the desire time frame. Below
are the brief expatiation of the aspects which shape the behaviour of Tesco which are illustrated
as under:
Business culture environment shaping the behaviour of Tesco:
Business culture and environment and environment greatly influence organizational
behaviour. In the open market place there are two types of business environment which are,
economic environment and non-economic environment. Economic environment covers,
economic policies, economic conditions and economic environment. While, non-economic
environment involves, legal, technological, demographic, social and political environment.
Cultural environment involves, customs, practices, behaviour and beliefs which are commonly
identified in the people living within certain population. It influence the Tesco regarding how
staff members are effectively managed and tackled based on their priorities and values. On the
other hand cultural environment is also impact organizations decision making process and guide
management regarding how to enter a new market successfully in the intense competitive world.
Business culture environment shape the behaviour of Tesco in positive way.
Economic policies: This impact the behaviour of the Tesco because long term plans
need to be changed accordingly. It shapes the behaviour of the employees working day and night
for the attainment of the set objectives because they are provided with trained according to the
new economic policies. It includes, redistribution of income from rich to poor, taxation,
circulation of money and decisions made about government investment (Blahova and Haghirian,
2017).
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