Impact of Economic and Non-Economic Environment on Organisational Behaviour

Contemporary
Business Environment

Table of Contents
Contemporary Business Environment..................................................................................................1
ABSTRACT.........................................................................................................................................3
1. INTRODUCTION............................................................................................................................4
1.1 Background ...............................................................................................................................4
2. Literature Review............................................................................................................................4
2.1 Examining the Impact of economic environment on organisational behaviour........................4
2.1.1 Economic systems..................................................................................................................4
2.1.2 Economic Conditions..............................................................................................................5
2.1.3 Economic policies...................................................................................................................5
2.2 Impact of non-economic environment on OB (organisational Behaviour)...............................5
2.2.1 Natural Environment...............................................................................................................6
2.2.2 Demographics ........................................................................................................................6
2.2.3 Cultural..................................................................................................................................6
3. Discussion and analysis ...................................................................................................................6
3.1 SWOT ANALYSIS of TESCO and impact on organisational behaviour..................................6
3.2 PESTLE Analysis of TESCO....................................................................................................7
4. Recommendation.............................................................................................................................8
Conclusion............................................................................................................................................9
REFERENCES ..................................................................................................................................10
BOOKS & JOURNAL:.................................................................................................................10

ABSTRACT
A brief scenario about concept of business environment and its impact on functions as well
as operations of business. It is essential to focus on factors which affect the productivity of business.
Awareness is to maintained so that change and trends in market are analysed in proper manner.
Various types of environment are involved such as non-economic, social, economic etc. In
economic factors it comprises of policies, law, wages, governmental activities etc. Whereas non-
economic factors includes religion, love/belongings, organisation & demographic culture which
affect the performance as well as progress level of enterprise at wider level. Also, firm strength,
weakness and opportunity & threats factors which affect the workplace are briefly described as well
as analysed in the discussion. Organisation which has been chosen adopt frameworks such as
PESTEL, which assist in identifying the impact of external factors or say elements which slow
down the growth of business. So, TESCO situated in UK and providing goods& services across the
globe. Marketing team of the entity use different methods, tools to examine the market situation and
trends in appropriate manner. Internal and external factors has been also discussed by so that all the
activities and process are carried in out in effective manner. To survive in this competitive market,
TESCO provide quality of products to consumer/ end users so that more customers are acquired and
goodwill of the entity increases broadly. This results in accessing the both national as well as
international market.

1. INTRODUCTION
Organisation and business culture are expanding their activities at rapid level. Business
environment refers to all the internal as well as external factors/forces which affect the growth and
development of business such as management, employees, operations etc. It is essential to focus on
such factors because they act as block-chain in process and disrupts the workplace. It comprises of
various forces such as demand / supply of the product, legislations and laws, technology etc.
TESCO headquartered in UK is multinational retail chain in the country. Stability of business
depends upon work culture and environment of business. So it business environment stimulates
personnel to achieve the goals & objectives in appropriately.
1.1 Background
In this report company which has been selected is TESCO, which is multinational
cooperation providing goods and services to customers with variety of products and alternatives. It
was first started in early 19 century and now has the biggest market and profit share in the market as
comparing to competitors like SAINSBURY’S, ASDA Group etc. Economic factors/ forces has
been described which affect the distribution channel and productivity of business. Organisational
behaviour refers to set of principles and guidelines which assist the entities to achieve the vision as
well as mission in effective manner.(Marijs,2019). Ample number of functions& operations are
carried out by organisation which helps to achieve the goals as well as objectives in proper manner.
(BE) Business environment is crucial because it assist in maintaining workplace and to organise the
structure of management in proper manner so that tasks are completed within a period of time.
TESCO, earlier used to sell groceries products and goods through direct channels or physical
distribution but now business has been expanded and serving 12 countries with its services with
both online and offline retailers. (Gaganis, 2019). Company was affected BREXIT, because prices
of product were increased and which results high cost of productions as swell as taxes. This
retailing chain, use import and export for the mobility of goods across other branches also in
various countries. Organisation when started business in UK, they wanted to have agile
infrastructure; to consolidate all the activities of countries and make unity within the firm.
2. Literature Review
2.1 Examining the Impact of economic environment on organisational behaviour
Organisational behaviour is necessary in business because it helps in identifying and
clarifying the goals and path. With help of OB, effective measures are taken to increase the
productivity of firm at wider level. Economic environment refers to all the force that influences the
consumer as well as commercial behaviour of business affecting progress/ performance of company.
Economic environment affect the organisational behaviour broadly and widely.
2.1.1 Economic systems
Concept of economy is wide and adopted by every organisation to carry out business
activities in proper manner. Different types of economies are present in country such as free, define,
mixed and market economy which has been discussed below-
Free Market economy- A free market economy is one in which flow of goods and services