Business Environment and Organisational Behaviour

Organization
and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
BODY OF REPORT .......................................................................................................................2
How do the Business, Cultural, Natural Environments shape the behaviour organization........2
PESTEL and SWOT analysis......................................................................................................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is collection of all internal as well as external factors like customer
needs, employees, clients, suppliers, owners, activities by legal bodies, innovation in technology,
market & Social trends, economic changes and many more (Hassanien and Dale, 2019). All
these factors have direct impact on function of organisation as well as how company works
directly or indirectly. In simple terms, sum of these mention factors influence environment and
situation of business organisations. Moreover, business environment assist in identifying
business opportunities, aid in planning, tapping useful resources, enhance overall people and
business profitability. There are several type of business environment such as micro environment
and macro environment. Here, micro environment involves factors which have direct impact on
performance as well as decision making of business such as competitors, market intermediaries,
customers, suppliers and many more. On the other hand, macro environment is set of external
conditions which have impact on efforts made for business development in negative or positive
manner. These elements are beyond control and effect overall performance of business
(Niemimaa and et. al., 2019). It includes gross domestic product, inflation, staff members,
spending as well as monetary and fiscal policy.
For this report chosen company is Sainsbury's which is second largest chain of
supermarket in UK with 16.0% share of supermarket sector. It is part of retail industry and area
serving by them is only United Kingdom. It was founded in 1869 and its founder was John James
Sainsbury's as well as headquarter is located at London, UK. In addition to this, Sainsbury's
supermarket is offering over 30,000 products out of which 40% of these are respective company
own brand. They are offering wide range quality food as well as grocery products and several
stores are offering bread which baked in their stores, fish, meat shelves, restaurants, coffee shops
and many more. Supermarket of Sainsbury's have more than 150,000 employees out of which
60% are part time workers and remaining 40% are full time. Supermarket of respective company
providing more than 18.5 million customers within a week as well as 60% stores are located in
town centre locations. Apart from this, value of Sainsbury's is passion for health, fresh, safe,
tasty food and focus on delivering great products with fair price.
This report will going to discuss how business, culture, natural environment shape
organisation behaviour. Along with this, SWOT and PESTEL will also going to conduct for
analysing external as well as internal factors of business environment which impact company.
1

BODY OF REPORT
How do the Business, Cultural, Natural Environments shape the behaviour organization
Organisational behaviour is application as well as study of knowledge related to that how
people act within an business firm. In simple term it can be said that, organisational behaviour is
human tool for the benefit f human (Yusoff, Omar and Kamarudin, 2019). It is applicable
broadly to behaviour of people in every type of organisation like business, government, school
and many more. In short, organisational behaviour revolves around mainly two fundamental
concepts i.e., nature of man and organisation.
Non economic environment
Non economical environment includes social, political, demographic, legal and
technological environment which have the potential of affecting business operations. The social
environment consist of society's beliefs, values and perception which comes under internal as
well as external social environment. The external social environment is the society whereas an
internal environment are its beliefs and customs. Every business must utilise and adapt as per
their external environment in which they must aware about all society's perception and desires.
Natural environment - The natural environment has been considered as one of the most
important factor which have a great role in affecting the shape and working of business. The
impact of natural disaster, climatic conditions, location, weather, availability of natural resources
and topographical aspect all are equally responsible in operation and administration of business.
The natural environment comprises of two major environments which are ecological and
geographical.
Demographic – This factor have wide impact on working of an organisation as it include
population, age, gender, level of income, education level, birth and death rate, brexit, supplier
relation across the world and many more. As it is important for Sainsbury’s to consider each and
every factor within their working while serving customers. Because all these have wide impact
on buying behaviour of people.
Culture - Business culture is related to the beliefs as well as behaviour which determine
how staff of organisation and management interact with each other as well as conduct transaction
which are outside of business. In simple words, company culture is related to the personality of
business firm and also define environment within that workers are working. Moreover, there are
several elements which included within this such as work environment, mission, vision, value,
2