Impact of Culture, Natural Environment, and Business Environment on Organization

CONTEMPORARY
BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................4
Impact of culture, natural environment and business environment on organization................................4
SWOT.....................................................................................................................................................7
PESTLE...................................................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................11

INTRODUCTION
There are a lot of factors which have to be understood before making any decision for the
company because that will directly or indirectly affect the effectiveness of the organization.
There are internal and external environment of the company which have to be understood and
analysed by the businesses in the market so that they can make decisions which are going to be
effective for a long run. Depending on the size of the business the economic and non economic
factors are going to have an impact on the company. It is very important that the company knows
those factors well of the country so that they can price the products and improve the quality
according to the customers of that specific country. The leaders of the company and the
managers have a very essential role to make the company change the working of the company
effectively so that the company can have a better functioning and the organization will be able to
have a better competitive advantage for a long run.
It is very important for the company to innovate and invent products in the market so that
they can improve the satisfaction level of the customers which is going to be very helpful for the
organization for a long run. External environment factors are the political factors, social, legal,
technological, economic, etc are those factors which can affect the business directly and
indirectly which have to be considered by the organization so that there is a better functioning.
The competition in the market is increasing which is why they have to understand the internal
factors of the company so that they can make improvements in the organization accordingly so
that they can get a competitive advantage and make the employees work effectively.
The report would consist of business environment of Tesco and the internal and external
factors which are affecting the company’s working. The aim of the company is to make the
customers have a better satisfaction level of them and by understanding the internal and external
factors is a very essential factor for the company. The strategies and planning of the company is
done accordingly so that they can have a better functioning which is a very essential factor for
the company so that they can get a competitive advantage and make the profit margins higher.

MAIN BODY
Impact of culture, natural environment and business environment on organization
It is very important for all the industries to understand the business environment so that
they can make decisions accordingly in the company which can be very helpful for the company.
There are a lot of factors internally and externally which can make the productivity of the
company fall or rise and to keep that in mind and then make decisions will make the company
have higher revenue and reputation in the market. The quality of the company will also not fall
and employees of the company will have a better sense of direction in market for the functions
they are doing (Kumar and et al., 2020). The leaders and managers of the company have to be
effective and experienced so that the changes in Tesco can come in easily which is going to be
very beneficial for a long run of the company. The behaviour of Tesco has to change with time
which is going to make the customers of the company have a higher competitive advantage
which is going to be very helpful for the company for a long run. Satisfaction of the customers is
what Tesco is aiming for which has to be fulfilled only when the company can get in the changes
easily in the company so that there is a better functioning.
ECONOMIC ENVIRONMENT
Business organisations which are running to earn profit are economic motive business
organisation. There are different factors in the external business environment and internal
business environment which helps to increase the efficiency to increase economic growth
effectively. Economic factors are determined for a whole market which also helps to increase the
productivity to attain more revenue generations. This is also very important for business to
evaluate all the factors which increases the opportunity to expand their size of Tesco in market.
Increase in the inflation rates in UK market has impacted Tesco to increase its performance as
the cost is increasing (Pantano and Gandini, 2018). Increase in unemployment rates reduces the
income level of customers to spend. This also impacts the job satisfaction of employees due to
lack of proper business approach which increases employee turnover in the business negatively.
Due to lack of proper training and develop of employees this also increases the operational cost
of Tesco to develop high quality products and gain better profit margins. There are many
products which increases the competition of Tesco and company also lack high performance
culture which decreases the economic activities of company to compete in market and achieve