Ways in which business, cultural, natural environment shape the business

CONTEMPORARY
BUISNESS ENVIORNMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Ways in which business, cultural, natural environment shape the business...............................4
PESTEL and SWOT...................................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is the sum total of all the forces and factors which impact the
working of the company to a great extent. This impact can be both positive and negative on the
business because the business environment changes very fact and frequently and this affects the
working of the company to a great extent (Barr and et.al., 2018). This environment includes all
the internal as well external forces including factors like consumers, their need and expectation,
management of company, rules and regulations of government, suppliers, market trends, social
trends, changes in the economy and many other changes.
The business exists in the environment which is very dynamic and frequently changing
and these changes need to be considered by the company. If the company does not take into
consideration these changes then the company cannot work in effective manner as the consumer
will not like the product and services of the company as it is not according to the latest changes.
The business environment is divided in two different types that is internal and external
environment. The internal environment consists of the changes which are taken place in the
organization itself and the external environment is the environment which exist outside the
business. The changes within the internal environment directly affect the business and its
working but the external environment affect the working of company in indirect manner.
Hence it is very crucial for companies to timely evaluate all the changes taking place in
the environment both internal and external as well. The economy of UK is the sixth largest
economy within the world and the British economy is facing a slow down because of Brexit that
is UK leaving the European Union. The GDP of UK increased by 1.2% only in 2019 as
compared to increase of 1.4% in 2018. The economy of UK was slow in 2019 and is also
expecting to be slow in 2020 because of Brexit only (Country profile United Kingdom, 2016).
Due to Brexit the business investment has decreased and the consumption level has also
weakened and this was because of low income of consumer. All this resulted in slowdown of the
economy of UK as a whole.
The current study will discuss about the fact that how the business is impacted by factors
like culture, nature and environment and other related factors. The study will be carried on with
help of Sainsbury as company. This is a company which is a large chain of supermarket and
retailer founded by John James Sainsbury in the year 1869.

Ways in which business, cultural, natural environment shape the business
The business is operated by people and is operated in the environment which is very
dynamic and changing. Thus, there are many different factors which impact and shape the
behaviour of the company. For this there are many different factors which impacts the working
and operation of company like business culture and environment, economic and non- economic
environment and natural environment (Yassin and Guindy, 2017). All these different factors
affecting the working of Sainsbury are classified as two that is economic and non- economic.
The economic environment includes the factors like economic system, policies and economic
condition of company. On the other hand, non- economic factors are the one which includes
natural, demographic, social, political and other environment. All these different types of
environments affect the working of Sainsbury to a great extent.
Economic factor- These are the factors which are related to the economy of the country
and the decisions taken within the economy of the country. The economic factors affecting and
shaping the working of environment of Sainsbury are as follows-
Economic condition- The economic condition is defined as the status and the level of
working of the economy. The condition of economy can be either inflationary or deflationary.
Thus, this impact the working and profitability level of Sainsbury to a great extent. This is
majorly because of the reason that if the economic condition will be of inflation that is general
price rise then the consumers will not buy more product rather they will just buy their necessities
(Prowle and Lucas, 2016). Thus, this will decrease the income of Sainsbury as the consumer will
not buy unnecessary items. In case of deflation the prices are not much high and this impact the
working of company and business environment because here the price is low and people can
easily afford the product and services of Sainsbury.
Economic policies- These are the policies being created by the government of country in
order to control the influence and control of the whole economy and are monetary and fiscal
policies. These policies decide all the working of the company and the other business within the
economy as a whole (Nikitina and Lapiņa, 2019). Thus, if the economic policies will have more
of the guidelines to be followed then the company has to take more care of all the requirement of
the economy. Thus, for this Sainsbury need to take more care of all the policies. If company will
not consider these requirements, then it will not benefit the company and hence consumer will
not like this.