Impact of Economic and Non-Economic Environment on Organisational Behaviour

Contemporary
Business Environment

Table of Contents
ABSTRACT.........................................................................................................................................2
INTRODUCTION................................................................................................................................4
Background...........................................................................................................................................4
Literature Review.................................................................................................................................4
Examining the Impact of economic environment on organisational behaviour..............................4
Economic System............................................................................................................................5
Economic Conditions.......................................................................................................................5
Economic policies............................................................................................................................6
Impact of non-economic environment on OB (organisational Behaviour).....................................6
Natural Environment........................................................................................................................6
Demographics..................................................................................................................................6
Culture.............................................................................................................................................6
Discussion and analysis........................................................................................................................7
SWOT ANALYSIS of TESCO and impact on organisational behaviour........................................7
PESTLE Analysis of TESCO..........................................................................................................8
Recommendation..................................................................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
Books and Journals........................................................................................................................11

ABSTRACT
In this report, the concept of business environment is given which imposes direct impact on the
operations and activities of the organisation. It is important to determine the elements which
enforces direct influence on the productivity as well as profitability of the company. In addition to
this, it is important to aware about the changes and trends which occur within market in an
appropriate manner. There are different kinds of environment which includes economic, non-
economic as well as social and many more. The economic factor involves wages, policies as well as
government policies. In non-economic factor involves love, demographics and religion which
impact on growth and performance of the company at broad level. Apart from this, the strength,
opportunity, weakness and threat is also determined in order to grab opportunities as well as prevent
from threat at workplace. And also the company adopt the PESTLE Analyses for analysing the
external environment of the organisation. In context of TESCO, it is the largest chain of
supermarket which is located in UK provide superior quality products and services to its customer.
Therefore, the marketing manager of this company focuses on changing marketing trends and
lifestyle of customer. Beside from this, the manager emphasised on offering unique and innovative
products and services to its user in order to satisfy them. It helps them in increasing the brand image
and goodwill of the company in front of the customer. They operate their business at both national
and global level.

INTRODUCTION
The business environment and its culture imposes direct influence on the organisational
behaviour. Business environment includes both micro as well as macro environment which affect
the productivity as well as profitability of the organisation in favourable and adverse manner. In
relation of TESCO, it is the biggest chain of supermarket situated in UK which offer superior
quality products and services to its user in order to satisfy them. It helps in boosting sales as well as
profitability of the company. It includes different elements like supply and demand of goods, laws,
legislation as well as technology and so on. It is necessary to have a stable business environment in
order to increase the sales in future period of time. It helps the employees in order to accomplish
goal as well as objective in an effective manner ( Amankwah-Amoah and Wang, 2019).
Background
This report is carried upon TESCO, it is the largest multinational chain of supermarket of UK
which deal in wide variety of products and services in order to satisfy them. There are different
competitor of TESCO such as ASDA, Sainsbury’s and many more. The internal and external
environment imposes direct impact on the productivity as well as profitability of the business
organisation. Apart from this, the organisational behaviour is the study and application of behaviour
of an individual person within organisation for accomplishing goal and objective in short span of
time. The manager of organisation perform the various activities and functions in an effective
manner in order to achieve the vision in targeted period of time. Therefore, it is important to have
positive work environment within workplace in order to completed the task& work in better way.
TESCO expand their business at wider level in order to distribute the quality products and services
to its customer. Apart from this, Due to Brexit, it imposes negative impact on the profitability as
well as productivity of the organisation. The cost of the products and services has been increased.
Therefore, the company import as well as export goods and services in different countries. They
have adequate infrastructure for operating their business activities and functions in UK.
Literature Review
Examining the Impact of economic environment on organisational behaviour.
Organisational behaviour is considered as a process in which the study of behaviour of
individual person in order to accomplish goal and objective in short span of time. Through OB, it is
easy for the business firm to boost the productivity as well as profitability of the business
organisation at broad level (Hamilton and Webster, 2018). In addition to this, the economic