Organizational and Business Environment

This report discusses the impact of business culture and natural environment on organizational behavior. It explores the use of PESTEL and SWOT analysis in the context of Sainsbury. The report highlights how positive and negative business cultures shape behavior and how the natural environment influences behavior within the company.

Organizational and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Business Culture and Natural Environment.................................................................................2
PESTEL Analysis........................................................................................................................5
SWOT Analysis...........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is a set of internal and external factors of a business. Employees,
talent management, owner, marketing, supply & demand, leadership, customers etc. are some
major internal and external factors which existing in a business environment. Factors of business
environment are always influencing a business in both way positively and negatively. Suppose
when market demand of any product increases, then this situation directly influence top-level
management of a business to fulfil that demand. Most business in world currently using various
business strategies or tactics to properly deal with these factors of business environment. There is
business environment or culture has affect organizational behaviour as well. In this case, each
business always tries to build a positive work culture in the workplace to positively affect
individual behaviour. An employee is able to improve its own performance in positive work
culture only. A business environment should systemic or proper, because workforce get
motivated to put their huge efforts in daily operations. On the other side, if any business has
negative work culture or environment, in this case their employees never improve their
performance. A happy and healthy business environment make able to owner for achieving large
customer base in its respective market.
This report discusses various aspects of business environment, like culture, behaviour,
natural environments shape etc. There Sainsbury is the chosen company as an organization. It is
one of popular British retail companies, which currently has large market share in the UK's retail
industry (Nyström and Mustonen, 2017). PESTEL and SWOT analysis also has included in this
report. These are mainly such analytical tools which a company uses for identifying its internal
and external factors. In this case, internal and external factors of Sainsbury has discussed in this
report. Basically, PESTEL refers six major external factors called; political, economic, social,
technological, environmental and legal. On the other hand, SWOT refers four major internal
factors of an organization called; strengths, weaknesses, opportunities and threats. On the basis
to these tools, top-level management of company is always able to develop and create effective
marketing strategies. Currently retail company has large number of employees which day or nigh
working in their retail supermarkets or stores. In this case, it has succeeded in maintaining
healthy work culture within its business environment. Its management knows the actual value of
a positive workplace. That's why currently company has highly skilled and talented workforce. A
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business environment is mainly divided into two parts non-economic business environment and
economic business environment. Both parts impact the company equally.
MAIN BODY
Business Culture and Natural Environment
Business cultural and natural environment really shape the behaviour of an organization.
All things which move around a business are impacted by business culture and natural
environment. Suppose, Sainsbury has happy and healthy work culture. In this case, company's
this situation positively influence its employees in daily operations (Schaller, Vatananan-
Thesenvitz and Stefania, 2018). Workforce within company is able to improve their current
performance with support of this culture, so this is how a business culture shape behaviour. On
the other hand, natural environment also shape people behaviour within company. Suppose, UK
has faced high rain, so company can't easily operate its supply chain. At the end this natural
environment situation will increase shortage of retail products in the market. Then people within
company get influence to fulfil this shortage by boosting current supply chain the fast manner, so
this how natural environment shape behaviour within business as well. Both business culture and
natural environment factors are major parts of non-economic business environment. Economic
business environment has included only economic factors. Suppose, UK's current economic
conditions are excellent, in which this will impact Sainsbury's operations positively. On the other
hand, if UK's economic conditions will become poor, then conditions can impact company
negatively. Unstable economic conditions are always affected a business in negative way.
BUSINESS CULTURE SHAPE THE BEHAVIOUR
There are mainly two types of business cultures are existing in a company positive and
negative (Ištvanić, Crnjac Milić and Krpić, 2017). Some major points have been discussed below
which shows how a positive business culture and a negative work culture shape the behaviour.
Positive Business Culture
Positive business culture or environment of a company is always positively influenced
people behaviour. All people or employees within company able to improve their current skills
and talent in this type of business culture. Major influences of positive business culture has been
mentioned below;
Improves People Behaviour: A positive business culture of Sainsbury can improve people or
employees behaviour in the workplace. In the positive work culture, employees are always able
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to interacting with each other. These interaction values are enough to improve people behaviour,
because with interaction an employee is able trust another employee. When once people
behaviour has improved, then company will able to take extra-ordinary work from their
employees. Positive people behaviour is very important to this company to improve its all over
performance in the retail company. Employees can easily share their point of views with each
other, if they have positive behaviour. Most companies specially focuses on their people
behaviour aspect (Ji-fan Ren and et.al., 2017). In this case, top-level management within each
business should create that type of work culture in their workplace where employees will
automatically improve own behaviour in personal life.
Makes Employees Motivated: This type of business cultures is helpful to company for
motivating its employees in the workplace. A motivated workforce is very important to this
company, because it'll able to take huge competitive advantage through this workforce. A
positive business culture give opportunities to employees to be full motivated on own job role. A
motivated employee is always put its huge efforts in the company's daily operations in
comparison of unmotivated employee. That's why positive business culture is too necessary for
each business. In this type of business culture, top-level management of company will able to use
different kinds of motivation techniques to motivate their employees. Currently most businesses
which has positive culture are employed content and process theories of motivation. A positive
work culture helps to company for inspiring their workforce by different strategies. Contribution
of positive work culture to Sainsbury is too great, because currently this company has an
effective workforce.
Increases Workability of Employees: An organization's success is mostly depends on its
employees workability (Kuilboer, Ashrafi and Lee, 2016). Means, those companies which has
highly efficient employees has gained huge profit in the market in the comparison of other
companies. In this case, a positive work culture is helpful in increasing workability of employees
as well. High workability within workforce is too necessary for Sainsbury, because there are
currently huge competition in the UK's retail industry. In this case, with support of efficient
workforce this company will able to deal with current market competition. Top-level
management of this company is always responsible to maintain a happy and healthy work
environment for employees, where they can easily increase own workability. Human resource
management is also works actively in this type of work culture, so this management provides
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specific training sessions to their employees. With these training sessions employees can
increase easily improve their workability in the workplace.
Promotes Skills and Talent: In a positive business environment, the management is always
promoting and supporting skills and talent within their workplace. Means, with the support of
positive business culture a company is able to get a skilled and talented workforce. Currently
top-level management of Sainsbury is gives high priority to those employees which has various
skills and talent. This type of work cultures give improvement opportunities to those employees
also which has fewer skills and talent. In a positive work culture, management always focuses on
increasing level of skills and talent of their workforce. There are skills and talent are also part of
people behaviour (Schaltegger, Hörisch and Freeman, 2019). Currently most employees in this
company has very high skills and talent, because it has effective business environment or culture.
Builds Effective Relationships: Relationship aspect is completely depends on behaviour of
person. For example; such employees are always believes in building effective relationship with
other which has positive behaviour. In this case, this retail company is able to take huge
advantage from its positive business culture. There is effective relationship between employee
and employer is too necessary for achieving common together, so by maintaining positive work
culture management able to build this effective relationship. Mainly human resource
management of any company is responsible to build extra-ordinary relationship between
employees and employer through positive business environment. On the other hand, positive
business environment of Sainsbury is promotes innovation aspect also within employees. Reason
is, employees are able to share their ideas, opinions, point of views etc. to each other in this type
of business culture. At the end, these ideas and opinions will help to company for innovating or
developing some exclusive range of products. This positive business culture of company
improves communication skills of employees as well, so conclusion is a positive culture of
business is always helpful in maintaining effective behaviour of people within the company.
Negative Business Culture
Negative business culture is not good for growth of any business or company, because a
negative business culture always negatively or badly influence behaviour of people or
employees. Means, employees are not able to increasing their skills, talent, workability etc. in
this type of cultures (Draijer, 2020). Negative business culture promotes a sickness within the
company, so top-level management of Sainsbury should maintain a happy and healthy business
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culture to remove this sickness from their company. This company can't achieve its targets in
decided time period, if it has this business culture. Currently many other companies in the retail
industry are also trying to maintain a positive business culture in their operations. In this case,
this retail company is also need to make this type of business culture where all employees easily
come together for achieving their common goals.
On the other side, Brexit has impacted Sainsbury in both way positively and negatively.
Positive impact of Brexit on the company is, now company is need to fulfil only those legal
formalities which UK's government has imposed on businesses. The negative impact of Brexit is,
now company can't easily get licence to run their operations in those countries which are
currently part of European Union.
NATURAL ENVIRONMENT SHAPE THE BEHAVIOUR
Natural environment also shape the behaviour within company. For example; climate
change is a part of natural environment, and currently it has highly changing day by day which is
not good for earth. In this case, all environmental authorities in the world has imposed many new
rules and regulations on companies to stop environmental pollution. This industrial pollution is
the main reason behind current climate change. These imposed rules and regulations on
Sainsbury influence its top-level management to control on pollution which releases from their
manufacturing plant. Top-level management gives orders to their employees for controlling
pollution in daily operations as well. Currently many people within different organizations are
highly motivated to make natural environment more effective. The company always fulfils its
corporate social responsibility on time to maintain a productive natural environment. Employees
and employer within company are fully motivated to follow all environmental acts and laws in
their daily life. According to their behaviour, these people try to avoid such activities in their
workplace which harmful for our natural environment. An employee feels too good when its
company works for saving natural resources within daily operations. That employee get
motivated to give their huge efforts in the company's operations, because it thinks its company is
care for our natural environment. Many times top-level management is organizing such events
where it shows importance of natural environment (Cross and Miller, 2020). These various
attempts of management positively change behaviour of their people or employees in the
workplace. That's why natural environments shape the behaviour in Sainsbury.
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PESTEL Analysis
PESTEL analysis is a analytical tool which is too helpful for the Sainbury, because
company can easily identify external factors of its business environment through this tool. This
tool mainly includes six major factors which has been discussed below;
Political Factors: UK's political factors highly
influence company, because it needs to fulfil
those formalities which local government has
imposed in retail companies in this country.
For example; company always need to fulfil
taxation. There is taxation is a part of political
factors.
Technological Factors: Currently company is
able to take huge advantages from
technological factors, because UK has almost
those new technological gadgets and
equipment which are enough to increase
performance of any business. Top-level
management should implement the latest
machineries in their daily operations to
increase its productivity in the market.
Economic Factors: Economic factors can
positively influence this company, because
UK's current economic conditions are too
excellent. On the other side, United Kingdom
is one of the richest countries in the world, so
people in this country are easily able to afford
products and services which this company has
offered. In this case, top-level management of
company to take some effective decisions for
gaining huge advantages from this economic
conditions.
Environmental Factors: Environmental
factors influence company to avoid those all
activities which are harmful for our
environment. Its management is responsible to
employ those all rules and regulations in their
daily operations which environmental
protection authorities has imposed on each
industry. Company necessarily need to follow
these rules and regulations to maintain happy
and healthy natural environment.
Social Factors: Social factors are very
favourable to this company in this country.
Reason is, most people are completely literate
Legal Factors: The management of Sainsbury
need to adhere all business legislation,
standards, regulations and acts which United
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in UK, and they believe in buying quality
products at any cost. In this case, these social
factors can influence to Sainsbury for
providing quality products or services to
people in this retail market. On the other side,
many people in this country like to buy
products and services to those companies
which fulfils their corporate social
responsibility (CSR) on time (Benstead, 2018).
The management of company should fulfil its
CSR on time to attract large customers towards
brand.
Kingdom has imposed on all businesses in this
country. Currently all types of businesses like;
small, medium-sized and large-sized are
responsible to follow these business laws. If
company follow these laws, then it'll able to
make an ethical culture in their business
environment.
SWOT Analysis
SWOT analysis is also an important tool like as PESTEL analysis tool, but it focuses on
showing major internal factors an organization. It includes four internal factors of business
environment which has been discussed below;
Strengths: Sainsbury has large customer base
in UK's retail industry. Currently top-level
management of company is running their
operations on progressive path. Its market
expansion process is also very excellent,
because currently it has succeeded in spread
their products and services in different market
segments of this company (Agarwal, 2018).
These are major strengths of company which
influence it to more improve its performance.
Opportunities: It has opportunity to expand
its business operations in different countries.
Company currently providing quality products
and services on cheap prices, so it enables to
build large customer base in new market
segments. Its marketing team able to boost
their marketing campaigns by using digital
marketing in its daily operations.
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Weaknesses: Company still following many
traditional business strategies in their daily
operations, so it is main weakness of this
company. Its marketing team is also not much
effective, because currently team is not taking
advantages from digital marketing.
Management of company should remove these
weaknesses to achieve large market share in
retail industry.
Threats: Day by day increasing market
competition within retail industry is the main
threat to Sainsbury. In this case, the
management of company need to develop
some new marketing strategies to take
attention of people in respective market. It
needs to avoid use of traditional business
strategies, because it'll able to face these
threats by implementing new business
strategies.
CONCLUSION
It can be concluded that, there are various internal and external factors are highly
influenced Sainsbury in both way positively and negatively. Currently company is able to take
huge advantages from these factors. On the other side, some factors has affected company is a
negative way as well. For example market competition factor is too challenging to this company.
Mostly top-level management of company try to take many benefits from these factors. For
example; currently company has high reputation in UK's retail industry, so it is able to attract
new customers also through its high market reputation. There are many business laws company
need to follow in their business environment for creating an ethical work-zone for their
employees. On the other side, business culture and natural environment also impact or shape the
behaviour of people within the company. Most companies always try to maintain positive
business culture in their daily operations, because they understand the advantages of positive
work culture. In this case, management of this retail company should build positive work or
business culture in their workplace to increase employee retention. A positive business culture
will help to company for gaining a skilled and talented workforce. This type of work cultures is
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always increasing performance and workability of an employee. That's why positive business
culture and environment is too necessary for company.
On the other side, natural environment is also shaped the people behaviour in the
company. For example; top-level management of company is responsible to follow all rules and
regulations which environment protection authorities has imposed on all companies. Each
employee within company need to avoid those all activities which are harmful for our
environment. By the way, this retail company has completely followed all business laws. These
laws help to company for maintaining an ethical environment in its daily operations. Currently
external factors are very favourable to this company, because most of them has positively
impacted this company. For example; It enables to improve its performance in respective market
by implementing new technology in their operations. It'll able to attract large customers by
providing quality products and services. On the other hand, internal factors are helping to
company by showing its main weaknesses and threats. Its management need to focus on
removing these weaknesses from business environment. It is responsible to innovate to such new
marketing strategies to deal with current market competition of retail industry. Sainsbury is
currently able to gain huge competitive advantage by maintaining positive work culture in its
business environment.
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REFERENCES
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performance in a big data analytics environment. International Journal of Production
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Kuilboer, J. P., Ashrafi, N. and Lee, O. K. D., 2016. Business intelligence capabilities as
facilitators to achieve organizational agility.
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<https://www.forbes.com/sites/pragyaagarwaleurope/2018/08/29/how-to-create-a-
positive-work-place-culture/#65416ffa4272>.
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[Online]. Available Through: <https://www.breathehr.com/blog/what-positive-impacts-
does-company-culture-have-on-business-performance>.
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