Business Environment Analysis

This essay analyzes the business environment of the retail industry, focusing on Tesco as a case study. It examines both micro and macro factors that influence business decisions, including customer needs, supplier relationships, competition, and economic trends. The essay also discusses the importance of ethical business practices and social responsibility in achieving long-term success.

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Defining the micro or macro factors that changes the nature of the business at global context. 1
Discussing the importance of managing responsible or ethical business environment at both
individual and organizational manner.........................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment is the set of all external or internal factors that influences business in
some or other ways. Business should need to adopt all kinds of roles and responsibilities in order
to make the best outcomes and goals. present report will be discussing the business environment
of retail industry by the help of taking company Tesco. Under this report, study will be covering
micro or macro factors that should company need to follows before taking any decision-making
approaches. Besides, assignment also covering the importance of cultural values or the
importance of business ethics.
MAIN BODY
Defining the micro or macro factors that changes the nature of the business at global context.
Micro Factors
The Customers: Customers are the king of the market, they hold the market with their own
elements. Businesses should need to understand the needs and wants of the buyers before making
the product or services (Fuhrmann and et.al., 2018). Tesco should need to adopt all certain
changes occurred in the market in order to make buyers happy and satisfied. Another reason is to
make competitors away from their potential buyers.
The suppliers: Suppliers are the another most enlarging and important that affect businesses
directly or in indirect manner. Suppliers hold the power of business when they deal alone in the
industry. This will work in more frequent manner in order to hold the long-lasting market
performance (Johansen and et.al., 2016). It is very necessary for the business to make good
relations with their suppliers to get good raw material to make finished products.
The competition: Competitors are the most affected micro factors from which Tesco
needs to be aware. In other words, in retail sector there are many successful businesses who
made some wonderful standards with the product or services. Such as M&S, Asda, Wal-Mart,
etc. Tesco should always make decision making on the basis of their competitors to deal with the
challenges.
Resellers: Resellers are play a most important role to deliver the product or services to
the customers. If company does not provided products direct to the customers. Sometimes
company affected by distributors in terms of high commission loss that taken by the resellers.
General Public: Company is accountable has a duty to satisfy the public. Every action of the
company has to taken with the considerations of public (Padmanand and et.al., 2016). Public
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have power to help you reach goals and just can make good company reviews or prevent
business from uncertainity.
Macro factors
Demographic factors: Demographic is the highly affected factor which impacted by common
demographic forces, including country/region, age and ethnicity, educational level. Business also
affected by the changes in decision making process (Shaw, Shiu and Clarke, 2015).
Economic factors: economic factors affect business in terms of deciding the prices of the
products. economic factor affects in customer decision making process or organization
production. There are also the natural non-renewable sources that affect the business into long
lasting manner.
Technological factors: technological factors are the most effective and long lasting
performing goals that affect the business into more appropriate manner. Technology are highly
used in production process can also impact the smooth running of the business and must be
considered.
Social and cultural forces: the impact of social factors has been given by the product or services
of the company. Society never encourage to those members that affect the business into more
effective and efficient manner. On the other hand, any harmful substance should be eliminated
by the hand of the business in case of any query and goals it more reflects the overall business in
highly advanced manner (Shaw, Shiu and Clarke, 2015).
Political or legal factors: legal implication is necessary to prevent the businesses from
unethical circumstances. Political factors always affect the business image and structure of the
company structural goals. In order to perform high working set criteria in order to meet out the
best performing goals and objectives.
Micro and Macro factors are the highly affecting factors from which company needs to perform
good behavior to get the high attention power. Tesco needs to analyze all internal or external
factors before making any statistical decision-making approach. Considering these factors will
improve the level of business performance in the market. It will also help to get the success in
the together effecting manner (Shaw, Shiu and Clarke, 2015).
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Discussing the importance of managing responsible or ethical business environment at both
individual and organizational manner
Business ethics is the most important necessary in the journey of business. It helps to
prevent business from all those required challenging task and goals. However, achieving these
goals at all costs is not always ethical and safe. For every businesses it is required to be honest
with their customers and with all other stakeholders as well. Companies need to care their
employees and clients in order to sustained in the market as long.
To become Socially responsible is the process to bring new things and get lots of
appreciation in within the market. Business is highly impacted by society if they did any wrong
activity with any stakeholders (Shaw, Shiu and Clarke, 2015). To be socially responsible helps in
improving the company brand image in the market and give bundle of opportunities to the
business to earn good profit revenue.
Tesco should need to adhere all roles and responsibklity to be more competitive and
challenging in the marker. Also they need to launch new healthy and invest in the green projects
to get the level of attraction from the market.
CONCLUSION
As per the above report or study it has been concluded, that business environment is the
most essential and challenging task for the company to build the long-term relationship with the
market. All those macro and micro factors challenge businesses into both positive and negative
manner. study discussed the business environmental factors such as political, legal, social,
economic and their impact on the retail sector. Besides, report also explained about the
importance of business ethics in the business environment. Overall study discussed the changes
business environment and their impact at the global level.
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REFERENCES
Books & Journals
Fuhrmann, D. and et.al., 2018. Cardiovascular risk factors for micro-and macro-structural brain
changes in healthy ageing. bioRxiv, p.264770.
Johansen, C and et.al., 2016, February. Hydrocarbon Migration from the Micro to Macro Scale
in the Gulf of Mexico. In American Geophysical Union, Ocean Sciences Meeting 2016,
abstract# MG54A-2022.
Padmanand, V. and et.al., 2016. Rise of the Third World: In the Enabling Policy and Business
Environment. Small Enterprises Development, Management & Extension (Sedme)
Journal. 41(3).
Shaw, D., Shiu, E. and Clarke, I., 2015. Ethical consumption: The contribution of ethical
obligation and self-identity to the theory of planned behaviour. In Global Perspectives in
Marketing for the 21st Century (pp. 359-359). Springer, Cham.
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