Business Context: Tesco and Global Environment Analysis Report

This report provides an in-depth analysis of the context of business, examining the dynamic nature of the global business environment and its influencing factors. It uses Tesco as a case study to illustrate the impact of micro and macro factors, technological advancements, and ethical considerations on business operations. The report explores the identification of needs for both individuals and organizations, emphasizing the importance of ethical management programs, cultural assessments, and corporate social responsibility. It also highlights the significance of maintaining ethical practices, adhering to governmental regulations, and ensuring equal treatment within the organization. The study concludes by summarizing the effects of technology, globalization, and ethical considerations on business performance, emphasizing the roles of both individuals and organizations in fostering a positive work environment and contributing to the ethical, social, and cultural aspects of the business.

CONTEXT OF BUSINESS

Table of Contents
CONTEXT OF BUSINESS ............................................................................................................1
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Analysis of changing nature of business with global business environment..............................3
LO 2.................................................................................................................................................4
Identification of needs of individual and organisation in relation to various types of issues.....4
CONCLUSION...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business is dynamic in nature and keeps on changing every now and then. It get affected
by various social, political, cultural and legal factors in the country in which it is working as well
as globally. For better understanding of the report, the report will take Tesco as the base and will
try to solve the problems and impacts. Tesco is the leading retail store of UK which has its
branch in other coutures as well and has a huge base of employees and supply chain. The report
will contain changing nature of business along with the factors that create issues in managing
the need of individuals and organisation. It will focus on leadership style that the company uses
and how their culture and style of management affects the business organisation and at last
discuss design and development of organisation.
LO 1
Analysis of changing nature of business with global business environment
The business environment is changing constantly and is continuously improving by
adopting new technologies and innovative techniques. Globalisation in the world has encouraged
free movements of goods and services and break all the restrictions in moving goods and
services from one country to another. The recent developments in information technology has
introduced few new trends like cloud computing, mobile platforms, artificial intelligence, virtual
reality etc. (Hamilton, 2018). These technologies and new platforms are giving ample amount of
opportunities to the business by giving them strategic business and competitive advantage to stay
ahead of competition. In all this, who are getting the most benefits are the consumers. The
customers are getting updated technologies and products which saves their time and
productivity.
Recently, there are few companies like Marks and Spencer that are using VR technology
in which the customers can see the whole product like clothes and accessories from 360 degree
angle by just sitting at home which saves resources as well as money and time of the customers.
After they like the product they can just purchase it in one click (Kolk, 2016).
There are some micro as well as macro factors which leads to change in nature of
business. Macro factors include political, social, economical, legal and environmental factors.
These are some external factors which affect the sustainability of modern business. And micro
factors include suppliers, customers and stakeholder they also affect the business performance. It

is important for organisation to behave ethically and maintain sustainability in order to create a
positive image in the market. If the organisation behave ethically in accordance with social and
environmental issue than it can help the organisation to create an positive image in the market.
For example the Tesco recruit the people in the organisation from diverse culture so as to have
the perfect mixture of all the culture and knowledge of different countries. The company should
ensure to focus on limiting pollution and reducing the effect of harmful gases to the
environment(Saleem, 2017.). For example a Cisco system which is an multinational company
has taken various steps in order to reduce carbon footprint by introducing photovoltaic system.
And it has also created a platform which helps employee to work from different locations rather
than sitting and performing work from the office. The organisation should also indulge itself in
charities at local, national and international level.
LO 2
Identification of needs of individual and organisation in relation to various types of issues
It is the duty of individuals and organisation to manage various types of issues ethically
in order to sustain the organisation. The organisation can manage ethics in their workplace by
conducting ethics management program so that the employees can understand how can they
work by adding values and ethics tot heir work. Business ethics can solve cultural as well as
political issues but it need to be ethical.
Culture is comprised of values and norms along with different behaviours therefore
cultural assessment of individuals an be valuable when examining moral value in the
organisation (Prajogo, 2016). Various political factors can also affect the working of the
organisation.
Social responsibility and ethics of business are similar in nature , it means that business
need to return it back to the society what it has taken for its use. The role of business is to
maintain highly ethical practices in society which do not harm the individuals(Barkauskas,
Barkauskienė, and Jasinskas, 2015).
Companies should assist the employees or guide them in order to behave ethically and
respect the values and beliefs of organisation. The employee as well as organisation should
ensure that no personal or confidential data of consumer or any employee should not be shared

with any other third party. The company should try to teach people of the organisation about its
core values and should make them able to realise the importance of these values.
Ethical factor is one of the most important factor of the organisation it can affect the
working of the organisation as well. For building a good culture in the organisation it is
necessary to follow the various rules and regulations which is made by the government such as
health and safety law, anti - discrimination law, and other business related to governmental
laws(Testa, F. and et.e., 2016). The company should also indulge itself in CSR ( corporate social
responsibilities ) in order to act ethically. Therefore the company should ensure that all the
people in the organisation are treated equally.
CONCLUSION
The essay has described about the various micro and macro factors which affects the
global business environment. The study helps in understanding that how technology is affecting
the business environment and its impact on globalisation. The study also explain the positive
impact of technology. The study also helps in analysing the needs of an individual in relation to
various type of issues such as ethics, culture etc. The individual as well as organisation both are
responsible for managing a proper work culture in the organisation. The study also helps in
understanding that how employee can contribute to maintain the ethical, social and culture of
the business and the work environment in organisation.

REFERENCES
Books and Journals
Barkauskas, V., Barkauskienė, K. and Jasinskas, E., 2015. Analysis of macro environmental
factors influencing the development of rural tourism: Lithuanian case. Procedia-Social
and Behavioral Sciences, 213, pp.167-172.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space, 8(1).
Testa, F. and et.e., 2016. Factors affecting environmental management by small and micro firms:
The importance of entrepreneurs’ attitudes and environmental investment. Corporate
Social Responsibility and Environmental Management, 23(6), pp.373-385.
Online
Six Microenvironmental factors affecting business. 2019 [Onlilne] Available through
<https://smallbusiness.chron.com/six-microenvironmental-factors-affect-businesses-
78023.html>