Contemporary Business Environment Assignment

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW AND RESEARCH.................................................................................3
The key elements internal and external factors...........................................................................3
Influence on company.................................................................................................................4
Relevant theories.........................................................................................................................4
Influencing the price of goods/services provide by the company...............................................4
Diagram.......................................................................................................................................5
Recommendation ........................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment refers to the forces or factors that are internal and external which
affects the operation of business (Bitkowska, 2019). The present report will study about Tesco
which is an retailing industry. The company company was established in 1919 and the founder of
company is Jack Cohen. The headquarter of company are situated Welwyn garden city,
Hertfordshire, England, UK. The products that company offer are supermarket, hypermarket.
Superstores, etc. the company is ninth largest multinational grocery store in UK. Tesco is chosen
because of its increasing reputation in UK market.
LITERATURE REVIEW AND RESEARCH
The key elements internal and external factors
As per the views of author(Boone, and et.al., 2019) internals factors of business refers to
work culture, events, employees, etc. all these influences the decision taking of business on the
internal environment of the business. External factors in business are political, social, legal,
technological, environment and economical(Business environment, 2019 ). All these factors are
not in the control of business where as internal factors are in control of business. Internals factors
are corporate culture refers to the values, behaviour and belief which can ascertain the manner
in which employee and management communicate and handle the external matters of the
company. Another is human resource which is valuable asset for the company as the success and
failure of organisation depends upon the employee skills and talent.
According to the author (Boone, and et.al., 2019) external factors in UK business
environment are political factors includes ruling party, rules and regulations, stability of
government laws in UK. Economical factor are related to interest rate, sales, foreign direct
investment and retail market. Social factors are identifies the culture, religion, etc. the main
focuses of organisation is to fulfil the ethical consideration. In technological factor the quick
changes are applied and it depends upon the investors or owner to adopt the technology for
reducing competition and get competitive advantages. Legal environment helps state that there is
changes in the laws of business which affects the business operation in the company.
environmental factors generally related to the changes in people preferences, trends, and the
planning is done to deals with the changes (Khalili, Abbadi and Ismail, 2019).

Influence on company
The influence internals environments in the company will affect to bring the changes in
management of the organisation like the financial resources will allow the company to capture
the markets. In human capital Tesco will try to hire candidate who have skills and ability to deal
with the changes. Motivation is the key for success of the company the employee can get
motivates with the internal environment(Khalili, Abbadi and Ismail, 2019). By following all the
external factor the company will get influence by increases its brand reputation in the market.
Relevant theories
The theory is based on the price of product or services in the economy where the relation of
specific goods and services are related to demand and supply of the product. When the demands
of product increases it increases the price of product when there is scarcity of product in the
markets. And when the supply of product increases in the markets then prices of product
decreases due to excess availability of product in the market. There should be equilibrium in
demand and supply of the product and services (Asongu and Odhiambo, 2019).
Influencing the price of goods/services provide by the company
For Tesco the the factors that influence the pricing policy of the company are competition,
customer power, new company enter in the market, suppliers power, threats of substitute
products. In market competition the price of Tesco product is determine by its capabilities to
satisfy the customers and understand their needs from the company. The suppliers power refer to
the supply of the product in markets which states that when the supply is excess then the price of
product will decreases and when the supply of product is less then price will increases due to its
scarcity in the markets (Venkatesh, Mathew and Singhal, 2019). When the substitute product
price are less then it will affect the profitability of the company. When the prices are more of the
rival product then it will increase the demand of Tesco product in market. If new company enters
in the markets then the profit of company gets decreased which affects on individual ratio for
profit earning of company (Tran,2019).

Diagram
(Sources: demand supply curves, 2019)
Recommendation
The company is recommended to improve its internal business strategies which will help
the company to reduce the impact of external environment on the business operations. The
company can adopt technology innovation in their product which will help the company to get
competitive advantages in the markets. The company can reduce impact of social environment
by fulfilling the ethical consideration of the company (Venkatesh, Mathew and Singhal, 2019.
Like spreading awareness among the people for less using of plastic or disposing of waste
plastic in dustbins.
CONCLUSION
From the above report it can be concluded that Tesco faces both internals and externals
business factors in the organisation operations. The internal factors are finance, human capital,
resources, etc. and the external factors are political factor, social, economic, legal, technological
and environmental factor . The pricing policy can affect the demand and supply of the company
Illustration 1: demand suppy curve

product and services. The company is recommended to improve the internal business
environment which will increases the efficiency of business to deal with external uncertainty.
The company can adopt technology advancements which will help to increase the economies of
scale and productivity of the company.

REFERENCES
Books and Journal
Amankwah-Amoah, J. and Wang, X., 2019. Opening editorial: contemporary business risks: an
overview and new research agenda.
Asongu, S.A. and Odhiambo, N.M., 2019. Challenges of doing business in Africa: A systematic
review. Journal of African Business. 20(2). pp.259-268.
Bitkowska, A., 2019, September. Business Process Management vs Modeling of the Process of
Knowledge Management in Contemporary Enterprises. In International Conference on
Business Process Management (pp. 319-323). Springer, Cham.
Boone, L.E. And et.al., 2019. Contemporary business. John Wiley & Sons.
Khalili, A., Abbadi, A. and Ismail, M.Y., 2019. Perspective of social media as an organisational
KM tool: contemporary literature review. International Journal of Knowledge and
Learning. 13(1). pp.10-24.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice. 17(1). pp.96-107.
Raman, G.V., Garg, S. and Thapliyal, S., 2019. Integrative Live Case: A Contemporary Business
Ethics Pedagogy. Journal of Business Ethics, 155(4), pp.1009-1032.
Tran, B., 2019. The Foundation of (Business) Ethics' Evolution. In Advanced Methodologies and
Technologies in Government and Society (pp. 26-37). IGI Global.
Venkatesh, R., Mathew, L. and Singhal, T.K., 2019. Imperatives of Business Models and Digital
Transformation for Digital Services Providers. International Journal of Business Data
Communications and Networking (IJBDCN). 15(1). pp.105-124.
Online
Business environment. 2019. [online]. Available through<https://iedunote.com/organizational-
environment-elements>.