Impact of Culture and Natural Environment on Organizational Behaviour

Contemporary Business
Environment

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Impact of culture on organizational behaviour......................................................................4
Impact of natural environment on the organizational behaviour...........................................5
PESTEL AND SWOT ANALYSIS...........................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................9

INTRODUCTION
Business environment refers to the combination of all individual and other forces over
which the organization has no control. But still the businesses have to depend upon these
factors because it affects the overall business performance and sustainability. These forces
include suppliers, competitors, customers, investors, competitors, changing market trends and
technologies. It is the most important part for any business organization as it helps in
evaluating the ongoing changes taking place so that business can adapt to the changes and
consider it as an opportunity. It presents not only opportunities but also threats. The main
features of business environment are that it is dynamic in nature, complexity, uncertainty,
multi-faceted and far reaching impact. All these salient features of it makes it importance for
the business to carry out environmental scanning in a regular period in order to avoid any
sudden change for which organization is not ready and may directly affect its profitability and
growth. A good business with best practices will not only evaluate the environment but will
also give a respond to it. Analysing the business environment will not only help in identifying
opportunities but it also helps in grabbing useful resources, facing the challenges, it provides
assistance in business planning and further it will help in improving the performance of the
business which helps in attaining growth.
In this report, Sainsbury is taken as an organization. It is the one of the largest
supermarket chains, headquartered in London, UK. It was founded in the year 1869 by John
James Sainsbury and has three divisions Sainsbury’s Supermarkets Ltd, bank and Argos. It
comes under big four retail giants in UK. It provides everything from groceries to clothing,
electronics, home products and financial services. Sainsbury has more than 1500 stores across
UK. It has its presence as hypermarket, supermarket, forecourt shops and convenience stores.
It has provided employment to over 116,400 in 2018. Approximately, 90% of UK households
have access to the online services of Sainsbury. This report presents a deeper insight into the
factors that impacts the business behaviour and Sainsbury has paid attention to the changing
business environment and internal business operations. It provides a detailed analysis of how
business, culture and the environment can impact and shape the business behaviour. Along
with that for conducting external analysis Pestel is used and for internal analysis Swot is used
along with relevant examples.
MAIN BODY
Over the past year years there has been a drastic change in the behaviour of the
organization. In the past few years, there has been an increase in the usage of the concepts
such as corporate governance and corporate social responsibility which has affected the
business culture of the organization. Taking the example of Sainsbury, over the past few
years, with the progress in the international trade and with the advancement in latest
technology, no big organizations wants in remain in the single market or location which is
why Sainsbury has entered into multiple locations across the globe (Di Stefano, Scrima and
Parry, 2019). It has also taken various initiatives for showing their concern to the customers.
It has also introduced shift in business environment by promoting online deliveries to their
customers. This is how management has changed itself with the changing needs of the
business world. This is the reason why Sainsbury has been as popular as it understands the
changing pulse of the customers.