Macro Environmental Factors of Business

Context
of
business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
Macro environmental factors that view and changed the nature of modern business in the
global environmental...................................................................................................................2
The reasons its important that individuals and organisation to manage responsible and
suitability and behave ethically the social, culture, economic and environmental issues...........3
TASK 2............................................................................................................................................4
1)A brief history and summary of the business .........................................................................4
2)Vision of Tesco .......................................................................................................................5
Leadership style..........................................................................................................................5
Management practices ................................................................................................................6
3)Implement the strategies and theories at organisation.............................................................7
4)Recommendation and improvements.......................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
A business can be defined as the where the goods and services are exchanged in ordered
to earn the money. This report will study that the organisation analyse the macro environmental
factors which shows the changes in the nature of the modern business in the global environment
through the positive and negative aspect of the organisation. It also describes the reasons which
is important that individuals and organisation to mange responsibly, sustainably and behave
ethically in the relation to social, cultural, economic and environmental issues. It also highlighted
the history and brief of the company which has been taken in this report and according to the
research it discusses the vision, leadership styles and management practices and various
strategies making use of various theories which have studied as evidence. It also describes the
analyses which have been achieved and implement by the select company with the specific
examples. It provides the recommendations as an improvement for the company.(Westman,
2018).
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TASK 1
Micro environmental factors and Macro environmental factors that view and changed the nature
of modern business in the global environmental
Micro factors:- it operates the environment of the organisation. The functions of the micro
environment such as it has immediate and direct bearing on the organisation.
Customers:- The main purpose of the Tesco is to provide the existence of the needs and wants
of the customers. The main aim of the enterprise which please the customers and earning profit
in return and the particular aim is to provide the better products and services to the clients and
consumers of the Tesco at their best cost.
Competitors:- Tesco has so many competitors in the market. Company has to check constantly
their competitors. Tesco must ensure their goods and services for making them unique and
different in the market which satisfied the need and demand of the customers and make a good
brand image in the market.
Shareholders:- Its important to have shareholders which invest in the Tesco but merely not the
investors. It owns the shares for the Tesco which are actually owners of the Tesco. It will also
demand the return on investment.
Macro factors:- The business effected by the external factors as well, which does not have any
control. All the factors mentioned in the factors:
Political factor: - The political factor of the business environment affects the modern business
and changed the nature of business in the global business environment which affect the business
in so many ways such as when the stability of the government is not constant. It involves labour
law, tax policy, trade restrictions and stability of the political factors. The positive factor is it
gives high impact on the education, health and infrastructure of the nation. The negative factor
for the business when the tax rate is increase than it affects the revenue and profitability of the
business.
Economic factor:- Economic factor that changed the nature of modern business in the global
business environment and includes the interest rate, inflation rates, exchange rates and economic
growth. The positive impact on the modern business in the global business environment is when
the interest rate of the business affect the cost of capital then it extent the company expand and
grows and on the other hand the negative factor on the modern business is when the rate of
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exchange affect the cost of the company then it affects the costs of exporting the goods and fulfil
the supply of the imported goods in the business(Alatorre, 2018.).
Social factor:- The macro environmental factor in the social ways it includes the values,
believes and culture aspects of the customers. It shows the careers attitudes and emphasis on the
safety of the customers. When the demand of the products according to the social preferences of
the customers affects the business than it's a negative factor of the macro environment on the
modern business and the positive factor of the social influences is it may change the strategies of
the management and adapt the social trends and recruit the employees to new positions.
Technological factor:- All the factors which relates to the technological aspects of the business
it involves all the automation, technological changes. It determines the barriers and application
knowledge base of the technology. The positive impact on the business is it help in innovation
and communication through the technological changes and the negative factor for the business is
it's a challenge to accept the new changes which is not suitable for the business because its
difficult to manage and accept the changes in the business environment for the employees. It is
necessary to cope up with the changes and achieve the goals through new technology.
Legal factor:- Legal factors also impact the business in so many ways such as the discrimination
law, antitrust law, employment law, health and safety law. The negative impact for the business
is laws regarding the health and safety of the employees which affect the business through the
legislation of the organisation and the positive impact for the business is it gives benefits to the
employees through the health and safety law.
Environmental factor:- The factors of the environmental is it involves the environmental
aspects such as the weather, climate and changes in the environment. The negative effect the
business is awareness the potential impacts of the climate changes is affect the company operates
and the products which offers the organisation is new markets and destroys the existing ones of
the business and the positive impact of this factor is organisation manufacture the eco-friendly
products which is reusable by the company and doesn't harm the environment (SHTAL and
et.al., 2018.).
The reasons it’s important that individuals and organisation to manage responsible and suitability
and behave ethically the social, culture, economic and environmental issues
Social:- It is important for the individuals because it creates Social sustainability it is process
which helps to promote the well-being of the society and also support the qualities of the future
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generation to maintain a strong and healthy community which affect the society. The main aim
and importance to maintaining to social environment in the organisation is to improve the
relationship of the business with the stakeholders and it’s easy to manage the impacts
proactively.
It is important for the organisation because for the social sustainability is a critical part
because it affects in so many ways such as the quality of business relationship with the society
and with the stakeholders, customers etc. it is a proactive way to find out the components of the
social culture such as customers, employees and local communities.
Culture:- For an individual its important to maintain the culture Mainly the culture is defined
the set of culture and beliefs and collection of the human knowledge. The sustainability of the
culture is the transmission of the importance of the younger and future generation and for the
organisation it’s important to complete the morale duty which is not hamper or disrespect the
cultural dimensions for the society.
Its important for the organisation BECAUSE IT should not manufacture the products which is
harmful for the values of the culture of the society and community of the environment. It is a
cultural suitability for the transmission of the characteristics for the younger and future
generation.
Environmental:- It’s important for individual to maintain the healthy communities and proper
use of natural resources and cleaning the air. It’s important to protect the environment and
community that damaging so many people which cause our environment.
Its important for the organisation only, limited resources which exploiting and depleting
at large rate and it’s important for environment to independent. The main aim is to welfare the
humans through the protection of the natural resources. Its responsibility of business it should
take care of the environment. When the organisation is environmentally sustainable then it’s easy
to achieve the positive outcomes and satisfied the customers.
Economic:- its important for the individuals from the economic sustainability its very necessary
to bring the employment which base line that support the services and healthier lifestyles and
from the higher the opportunity for the personnel needs.
It’s necessary for the organisation that business and companies which maintain the
stability of the economic and get the higher standard for the development and enjoy the higher
quality of life from giving the employment for all the peoples. The main aim is to interact and
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intact the whole economy which involves the efficient use of resources, assets and maintain the
profitability of the company. (Ghironi, 2018. ).
TASK 2
1)A brief history and summary of the business
Tesco is a public retail limited company which was founded in the 1919 in Hackeney,
London, England which was first appeared as a group of market stalls. It expands globally in 11
other countries.
Tesco is one of the multinational general merchandise and groceries headquarters in UK.
It is third largest retailer in the world which is measured by the revenue. It is not quite presence
of dominant but it used to remain the UK's largest retail sector. Tesco faced so many problems
and issue while conducting the business such as the criticism of squeezing the farmers and
exploiting the workers, suppliers and fudging its accounts and turning the centres of the town. It
also contributes in the social major and problems of environment which plaguing in the society.
Tesco is a well-known and consumer-oriented business. The main aim and objective of
the company is to provide the products and services with the best value of money for its
consumers. It wants to expand and increase the wants of the business which attract potential and
new customers. It also keeping their existing customers loyal and give them satisfaction (Eilon,
2018).
2)Vision of Tesco
The vision of the Tesco is providing simple expression to maintain and create an
underwriting of market leading, technical pricing and handling the claims of the company to
support the growth strategy of Tesco. The core vision of the Tesco is it remain constant when the
strategies and practices of the business continuously adapting the changing world. It provides
benchmark for the hope of business to achieve the goals and objectives.
It is an aspirational view which describes where to expand the company and where it
wants to be. The main vision of the company is to expand the business globally and in
international market with full of new ideas and innovations. Tesco also wants to build the trust
and loyalty for the employees and communities. From innovation of products it wants to make
modern world with new technology. From new technologies it maintains and make their positive
brand image in the market. It also wants to maintain the loyalty and trust of employees.
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Leadership style
A leadership style is most common leader method of implementing plans, providing
directions and motivate people. There are some leadership styles below: -
 Autocratic leadership style: - It is directly inverse of democratic style. This style
controls the decision-making process without taking any of input from team members in
the Tesco. It makes typical choice which is based on their leadership judgements and
ideas and rarely accept the ideas and advice from the followers of the Tesco. It only
focused on both the command of leader and control by the followers. It is a clear division
between the member's and leader (Alatorre, 2018.). It takes any of decision independently
with the input from the group. This theory takes all the decision on their own belief and
do not involve the employees in their decision-making process. It reduces the time of
leader which take quick and instant decision for company. It is beneficial for company
because it doesn't create confusion on taking the decision.
 Democratic style:- It is totally opposite of the autocratic style. All the decision is making
on the basis of the input of each and every team members of Tesco. In this style all the
employees have equal authority to say on every project and give it direction. It offers
guidance to the members and the leader motivate the group members to take interest and
participate but also retain the final decision-making process. It possesses several traits
such as honesty, creativity, courage and fairness. It uses the strategies of the participative
of employees in all actions and it increases the morale and improve their performance.
 Laissez-faire leadership style: - This leadership style offers no guidance to the team
members and all the decision are taken by the group members of Tesco. This leadership
style is useful for the situations involving experts which is highly qualified and from
which it often leads to the poor motivation and lack of defining the roles in Tesco. It is a
combination of practical skills which enables the Laissez-faire leadership style so
effectively. It is expected to establish the goals, deadlines and target and trust the team
that it is talented enough for taking and making the best decisions in the area of expertise
and achieving the goals and objectives.
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Management practices
There are so many management styles and management system theory which are
incorporated with different strategies on the basis of practices of leadership within the
organisation which are as follows:
Empowering staff:- from the empowering of the staff gives a certain degree of
autonomy and all the responsibility regarding to the decision making process and also for the
specific organisational tasks.
Training staff:- Training is a programme which give the knowledge and skills about the
particular work and from which it helps the employees for doing specific task. Its important to
provide the training to the staff because it captures the needs of the employees and also where
the employees lacking off.
Introduction schemes:- introduction is general part of increasing the knowledge and
skills of the employees. It is well known operation for the employees to introduces itself.
System management theory: - System management theory is defined as the dominant
theories of the organisational management in Tesco. It is a set of distinct parts which form a
complex whole. It is both open and close system where a close system is not affected the
environment while the open system is. This theory provides 4 essential elements for manager of
the Tesco in order to maintain and manage the organisation in effective manner. According to the
practices of the management its responsibility of the managers to engage the worker in the
company and increase the profitability (Hunt and Fitzgerald, 2018). It helps the manager of
Tesco to motivate and encourage the employees to achieve the goals and objectives of the
organisation. For maintaining and arranging the organisation and employees systematically it can
use so many strategies such as the responsibility distribution among the employees and workers.
From distributing the responsibility strategy, it’s easy for employees to contribute to achieve the
determined goals of the company.
Tesco gives training and development practices which improve the performance of the
employees. It is broadly defined as the principles and concepts of the theory and it distinguishes
the active or dynamic systems from passive and static systems.
Contingency theory:- From the help of contingency theory it claims that there is no
better way to organise and lead the company and also concerned about the decision making
process of the Tesco. It all depended upon the internal and external situation of the organisation.
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Leader which is contingent effectively applies their own leadership styles at the right situations.
Contingent theory makes some strategy to manage the workers and employees for having
productive and effective work which solve the problems with the best ways and strategies.
For achieving successful results and outcomes from employees, its responsibility of
manger to provide the opportunities for learning and experience. It motivates and encourage
employees for goals and objectives of organisation. Certain management helps the organisation
in certain situation and crisis. It's the ability and quality of the leader to identify the management
style which is suitable and best for that situation of the company. It is the best way to handle the
Tesco and employees of the company which is depended upon the circumstances of
environment. From using the strategy in effective manner, it can use the reward and rating
strategy.
3)Implement the strategies and theories at organisation
Implementation of strategies: - There is an importance of the implementing theories at
workplace which improves the profit and productivity of Tesco. From the help of the strategies
the manager of the company makes a valuable and effective changes for their company. For
implementing the contingency theory at workplace manger always make so many options for the
process and methods of using the work and tasks. It can take suggestion from the workers and
employees about that situation and then management take the suggestion which is helpful for the
situation of the organisation.
This theory helps to create more effective planning process which help to doing work in
more effective manner. It helps for eliminating so much uncertainty of workplace. It provides
proper training and learning for all the employees. Manger of Tesco describes the principles of
this theory before the use of management theory in company. There are different factors which
implementing this theory like ratio of mangers to employees, company size, orientation of the
company etc(Hunt and Fitzgerald, 2018).
Implementing of the autocratic style of leadership in company it provides the suggestion
list of employees. From which it can take the opinion of workers and monitor strictly all the
situations when the employees of the company are not like to do the work. It's the authority of
the leaders to take the right decision and use their ideas to resolve the work-related problems of
the Tesco. It also applied and implemented at the time when the employees less motivated and
tend to work as possible. At that situation it implements this theory for controlling and
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monitoring. When the team of the project consist of inexperienced and new members at that time
this theory will implement. It is a best way to approach of getting work done without wasting the
time of members.
4)Recommendation and improvements
From the above study it can recommend that organisation can implement the democratic
leadership style in all the situation because it raises the morale of the employees and decrease the
turnover of labour. Form involving the employees in the process of decision making it feel them
motivated and respected. With the help of this leadership style it encourages engagement of
involvement and build strong interpersonal relations with employees. It helps the organisation tio
achieve the determinant goals.
It also recommended that it has to apply the system theory or management. It gives
efficient plans for actions. It developed the coordination for specialised activities. From the help
of the system theory it’s easy for manager to understand the complex system and through the
proper knowledge and innovation which maintain the organisation in effective manner. It also
focuses on the changes, environment and systematically work (Westman, 2018).
CONCLUSION
From the above study it will conclude that changes are important for the growth and
development of the organisation. It concludes that the macro environmental factors view that
changed in the nature of the modern business in the global business environment the positive and
negative factor of the analyses. It also concluded the support of the organisation to make the
valuable relationship with the social, culture, economic and cultural issues. It also researches and
brief about the chosen company and it discusses the vision, leadership style and management
practices and various strategies making use of theories which have been studied. This study
analyses and achieved or implements the selected company. It also provides the recommendation
for improvements which proposed the styles and practices which is based on the research.
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REFERENCES
Alatorre, A., 2018. Inner Social Interactions Model of Big Data Impact on Economical
Framework. South Asian Journal of Social Studies and Economics, pp.1-6.
Cheung, F., Yeung, D.Y. and Wu, A.M., 2018. Employees’ perception of leadership styles and
successful aging in the workplace. Journal of Career Development. 45(6). pp.610-624.
Eilon, S., 2018. Management practice and mispractice. Routledge.
Ghironi, F., 2018. Macro needs micro. Oxford Review of Economic Policy. 34(1-2). pp.195-218.
Günzel-Jensen, F., Hansen, J.R., Jakobsen, M.L.F. and Wulff, J., 2018. A two-pronged
approach? Combined leadership styles and innovative behavior. International Journal of
Public Administration. 41(12). pp.957-970.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Hunt, J. and Fitzgerald, M., 2018. STYLES OF LEADERSHIP. Leadership: Regional and
Global Perspectives, p.62.
SHTAL, T.V. and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS. 39.(12).
Westman, M., 2018. Positive Effects of Sustainability in Buisness.
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