Context of Business: Analyzing TESCO's Operations and Environment

This report provides a comprehensive analysis of TESCO's operations within the context of the global business environment. It examines the changing nature of business, highlighting the influence of micro and macro environmental factors such as customer behavior, competition, employees, investors, and regulatory agencies. The report further explores how social, cultural, economic, and environmental issues impact both individuals and organizations, emphasizing the importance of ethical business practices and corporate social responsibility. It discusses how TESCO adapts to these factors, including its strategies for customer retention, employee relations, and environmental sustainability, ultimately aiming for economic development and improved quality of life for stakeholders. The report concludes by reiterating the significance of considering these environmental factors as part of a business's corporate social responsibility to achieve sustainable growth.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Explain the changing nature of business within the global business environment.....................1
Explain the influence of social, cultural, economic and environmental issues on individuals
and organisations to behave ethically.........................................................................................2
REFERENCES................................................................................................................................1

INTRODUCTION
The exchange of product and services take place in the market. Business is an activity of
delivering goods and services for livings and profits to satisfy the needs of individuals (vom
Brocke, Zelt and Schmiedel, 2016). The business activities are operated in an ethical and
sustainable way it means by considering the factors such as human rights, environment, society
in which it functions. This assignment is taken in the context of TESCO, a British multinational
groceries founded by Jack Cohen in 1919. it is a retailing company which deals in supermarket
and hypermarkets. In this assignment it is studied that how an organization deals with the
corporate social responsibility to sustain in the market.
MAIN BODY
Explain the changing nature of business within the global business environment.
A business organization faces diversification in the market because of micro and macro
environment which affects the proper functions of company. So to cope with these problems
TESCO is changing its functions by adopting micro environmental factors that affects the
business such as:
Customers are referred as the king of market, Customers helps in operating the profits of
a company (Sprout and Sprout, 2015). The changing behaviour of consumer can affect the
profitability of business by shifting to other competitors because of consumers rights.
Advancement in technological products can be a future aspect in shifting of consumers. TESCO
retain its consumers by developing effective campaigns and also by generating revenue streams.
Level of competition can affect the economic livelihood of a business. If the level of
competition is high, the companies should focus on differentiating its services from newer. In
high competition the demand and supply increases so it is hard for TESCO to succeed with
sainsburry in long run by not generating enough demand for the products.
Employees are very important to maintain the services and technological factors for the
success (Phillips-Wren, and et. al., 2015). Employees produce goods to drive the business.
TESCO recruits qualified and motivates employees to operate highly technical business which is
necessary for global business environment to sustain.
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investors helps to operate the business by investing their funds. it is not possible to start a
business without funds so for this they shares the risk and also enjoys profits. The company with
good market shares attracts the investors to join their companies.
Regulation agencies refers to the agencies which helps to set the perimeters for an
organization that how the standards can be full filled to satisfy the consumers. TESCO also deals
in food and beverages so the food and drug administration of UK looks after the ingredients
measurements.
Explain the influence of social, cultural, economic and environmental issues on individuals and
organisations to behave ethically.
A organization should carry the business functions ethically for economic development
which in turn can improve the quality and lifestyle of the workforce and their families (Bell,
Bryman and Harley, 2018). Business organizations should focus on the local communities and
societies this can also be said as corporate social responsibility of a business organization. There
are some macro environmental factors that can affect TESCO's corporate responsibility such as:
A successful business has to follow all the corporate social responsibilities in the society
such as Social factor of environment which can affect the business in term of safety emphasis,
lifestyle attitude and health consciousness. Employees are considered as the part of society so the
companies should provided health insurance to maintain health and safety measures and good
working environment in the organization (Maylor, Blackmon, and Huemann, 2016). TESCO
satisfy its employees by maintaining their lifestyle through providing them fair income and
wages.
Cultural factor is also a part of macro environment which is important for business
growth opportunities, A society is full of different people from different background and
religion. Business is meant to deliver goods and services to satisfy the demand of economy so it
should be a key responsibility of business to meet all the cultural and societal needs by analysing
the various group requirements. TESCO is segmenting and targeting the market by research and
development because the company thinks it as a corporate responsibility which builds positive
goodwill of the company in the market.
Economic factor are the factors which contributes in the economy by enhancing the
growth of society. Business can contribute in the economy be increasing the GDP level through
rendering services to the consumers. If there is less competition the prices of products increases
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which in turn affects the consumers buying behaviour and can lead to inflation (Iivari and et. al.,
2016). Business organizations can provide employment opportunities to unemployed by
extending the markets. This will help the employees as well as the societies better lifestyle.
Environmental factor is related to the weather, climate and environmental policies. A
business should follow all the health and safety measures which protects the environment from
hazardous gases and emission of flames. Companies can not operate the industrial work in the
societies where nearby the population is living the factories and plants are executed in the
industrial areas allotted by the governments as RIICO. The organizations should not harm the
weather by manufacturing non-recyclable products which generates hazardous gases, this can
adverse a negative impact on the population of society. Companies can contribute in the society
by introducing eco friendly packaging materials.
Legal factor of macro environment includes some laws such as discrimination laws,
antitrust laws, employment laws, consumer protection laws, health and safety laws. These laws
should be followed by the business in order to carry the business legally. The business
organizations should treat the employees equal without discrimination (Crane and Matten,
2016). The workers from different cultures and societies work together in the industries so to
maintain the harmony they should be equally treated and equally paid for assigned jobs. The
supply of goods and services is the key source to retain the consumers, if the company frauds
them there are many consumer protections laws are introduced for customers interest.
Technological factor used in business organization with the purpose to enhance the
quality and designs of the products and services (Berger and et. al., 2015). The companies use
technologies to compete with the changing world because if there will be no technological
development takes place in the organization the business can not succeed in the emerging era. It
is the key responsibility of the business to update its customers with new techniques and
technologies.
CONCLSION
It is concluded from the above assignment that there are various micro and macro
environmental factors arises in the business which positively and negatively affects the business.
so to maintain the smooth functioning of the business the organizations should follow all the
factors related to the environment by considering it as corporate social responsibility. This helps
the business to attain growth in the economy.
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REFERENCES
Books and Journals
Bell, E., Bryman, A. and Harley, B., 2018.Business research methods. Oxford university press.
Berger, R., and et. al., 2015. Analyzing business-to-business relationships in an Arab context.
Journal of World Business, 50(3). pp.454-464.
Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Iivari, M. M. and et. al., 2016. Toward ecosystemic business models in the context of industrial
internet. Journal of Business Models, 4(2).
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
Macmillan International Higher Education.
Phillips-Wren, G. E., and et. al., 2015. Business An(vom Brocke, Zelt and Schmiedel, 2016)
(Sprout and Sprout, 2015) (Phillips-Wren, and et. al., 2015) (Maylor, Blackmon, and
Huemann, 2016) (Iivari and et. al., 2016) (Crane and Matten, 2016) (Berger and et. al.,
2015) (Bell, Bryman and Harley, 2018)alytics in the Context of Big Data: A Roadmap
for Research. CAIS,37. p.23.
Sprout, H. and Sprout, M., 2015. The context of environmental politics: unfinished business for
America's third century. University Press of Kentucky.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3). pp.486-495.
Online
Global Business Environment. 2019. [Online] Available
through<https://precollege.brown.edu/catalog/course.php?course_code=CEEC0900>./
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