Contemporary Business Environment: Impact on Tesco's Organizational Behavior

Contemporary Business Environment
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Overview
Business environment can be defined as sum of internal and external factors such as:
customer’s needs, employees, supply and demand, clients, management, government activities,
owners, technology, innovation and many more. These are the factors that affect overall
functioning of an organization (Rudawska and Zhanna Belyaeva, 2018). Today many companies
focus on contemporary business environment. Contemporary business environment is a kind of
business environment that has a vast competitive market that changes continuously and quickly.
Such organization’s owner’s must be capable enough to understand development and
requirements that are required to be focused on. This kind of business environment is quite
competitive and in order to cope up with this pressure it is extremely important for organizations
to focus on beyond development of a good product (Tarabasz, Selaković and Abraham, 2018).
They also need to focus on pricing the product correctly and focus on easy and accessible
marketing of the product. This assignment will lay emphasis on Business culture and
environment impact on organizational behaviour of Tesco, macro environmental factors that can
affect Tesco both positively and negatively. This will be explained with the help of PESTLE
analysis. Other than this, this assignment will also lay emphasis on strengths, weaknesses,
opportunities and threats of Tesco with the help of SWOT analysis.
Introduction to organization
Tesco is a well known British general merchandise retailer and multinational grocer that
was founded in 1919 whose headquarters is in England, United Kingdom. In terms of revenue,
Tesco is third largest retailers present in the world and in terms of revenue it is ninth largest
retailers present in the world (Heese, Srinivasan and Kelley, 2019). They have more than 100
shops all across Asia and Europe. They are market leader of groceries in UK, Thailand, Ireland
and Hungary. If their overall global presence is talked about then Tesco has more than 6800
Stores in more than 14 countries apart from Europe and North America. Other than UK they
have a large market share in Asia. They have more than 450,000 employees working for them in
more than 11 countries. They mainly have supermarkets, superstores, hypermarkets and
convenience shop. They focus on offering one of the finest and best quality products in lower
cost that further helps them to attract a greater number of customers. It is UK’s one of the
favourite and biggest supermarket. Today retail market of UK is mainly dominated by Tesco and
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its competitors such as: Aldi, Argos, Sainsbury, Morrisons, Lidl and many more. Overall revenue
of Tesco in 2019 was £63,911 million (Wood, Coe and Wrigley, 2016). Their net income in 2019
was recorded as £63,911 million. Other than being a grocers and retailers they have various other
subsidiaries as well such as: Tesco Stores Ltd., Tesco Bank, Tesco Mobile, Tesco Ireland, Tesco
Family Dining Ltd., Dunnhumby, Spenhill, Booker Group, Jack's, Petrol Stations and many
more.
MAIN BODY
Business culture and environment impact on organizational behaviour.
Culture or environment is based on the arrangement of different attribute that will be
express towards business function. It is to be considered as collective thinking of mind which
create difference between group of members. It is mainly defined set of behaviour, value to
change overall business performance and efficiency in global marketplace. Sometimes, it also
defined the way of employee how they can complete their task and interact with each other in
organization. The culture may comprise various rituals, symbols, values and belief that govern
operating style of people within Tesco (Oyemomi and et.al., 2019). The business culture binds
the workforce together which provide the better direction of company to increase profitability
and productivity in global world. Organizational culture may vary impact on the staff members
performance and their motivational level. it often the employee work harder to achieve the
significant goal and objective. In this way, it should require for consider themselves to be part of
corporate environment which are operating one business and impact on the employee
performance.
On the other hand, Macro environment are those factors which directly effects on the
business operations and their working condition. Sometimes, it is uncontrollable and powerless
which are not capable for controlling over them (Raman, Garg and Thapliyal, 2019). Business
culture or environment can be divided into two groups: economic and non-economic
environment.
The economic environment of business may include economic system, parameters, stage
of business cycle, financial system, policies. It mainly referred to the characteristics of economic
system. the existing economic environment is highly complex which is not easy to handle in
proper manner. This is reason for organizations operating same economic environment which
help for decision making (Roscoe, Subramanian and Chong, 2019).
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