Impact of Culture, Environment and Business Environment on Tesco

CONTEMPORARY
BUSINESS
ENVIRONMENT
TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3
Impact of culture, environment and business environment on Tesco.........................................4
PESTLE and SWOT Analysis.....................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The internal and external business environment in which an organisation operates in is
made up of multiple individual factors all of which have an effect on the business organisation’s
operational performance productivity and profitability in the consumer markets. Some of these
factors tend to affect the organisation’s operations directly while other influence the operation in
an indirect manner (Cepel and et.al., 2018). Hence, the business environment in which a business
organisation operates in is a highly complex, convoluted and multi-dimensional landscape which
comprises of various individual factors which determine a business organisation’s productivity,
performance and profitability in the markets. The business environment in which a business
organisation operates in can be divided into two categories economic and non-economic. The
productivity, profitability and performance of a business organisation is highly dependent upon
the economic environment in which it has to operate in. Economic environment consists of the
various economic policies, conditions and systems of the country in which the business
organisation operates in. Economic systems have an effect on a business’s operations are the
inflation rates, taxation rates, consumer bargaining power etc present in the economy of the
country. Economic conditions include the political stability of the country, outbreak of diseases,
and its impact on the economy of the country (Hamilton and Webster, 2018). While economic
policies that influence a business’s productivity and profitability comprise of the legal rules and
regulations of the country, which business organisation has to adhere to in order to legally
operate in the country. The non-economic environment in which a country operates in also has
immense influence on its productivity, profitability and performance in the markets. These
comprise of various individual factors which include demographic, social, technological,
political, legal and natural factors all of which have an effect on the business’s operations and
functions.
This report assesses the impact of business environment on the British multinational retail
store Tesco which specialises in groceries and general merchandise, from its headquarters in
Welwyn Garden City, Hertfordshire, UK. Tesco was founded in 1919, an astonishing 101 years
ago and having operated in retail markets for such a long time has presented Tesco with many
opportunities to grow and expand their operations to international markets. In this process Tesco

has risen to become world’s third largest retail business on the basis of its gross revenues
generated. In the UK alone, Tesco operates around 3433 distinct establishments.
Impact of culture, environment and business environment on Tesco
Business Environment
Organization culture is crucial part of the organization because it supports to integrate all
the staff to enhance their efforts towards common goal of the business for accomplishing its
objectives effectively. It also influences the performance of the workforce by inspiring them and
improves their personal development for performing effective in decision-making process and
achieves high profitability within company (Abramishvili, 2016). It maintains healthy working
environment for employees which inspires them to work hard and coordinate with their team
member effectively. A good working environment improves working quality of staff along with
high coordination and great ethics and morals supports manager and leader to become role model
for their employees. Tesco also understand significance of cultural theory within company and
determines different factors which can enhance the organizational behaviour that can give impact
on overall organization performance. organization can implement effective strategies which can
help to analyse different organizational culture, politics and power. It is very crucial for business
organization to understand overall factors either internal factors and external factors to become
more efficient in decision-making process and increases the quality of their working efficiency.
The main goal of the Tesco to raise profit opportunities and improve customer satisfaction along
with better quality of goods and services. Basically, behaviour of the organization is properly
dependent on financial performance and financial resources. For example, when organization has
good financial performance then can easy conducts wide number of operations within company
for getting higher profitability. While financial resources empower company by offering funds
which helps company to expand their business in other countries as well. It also supports to gain
higher perceived values in the business market. In UK has wide scale of retail industries so
organization gets difficulties to attain leadership in the business market and generates higher
profit margins on products.
Economic Environment