Impact of Internal and External Factors on ASDA: SWOT and PESTLE Analysis

This article discusses the impact of internal and external factors on ASDA, a leading UK supermarket, through the use of SWOT and PESTLE analysis. It also explores different ways in which ASDA can impact the external environment.

BUSINESS IN PRACTICE
The aim of this brand is to enhance the satisfactory level of customers and
retain them forever which enable to increase profitability and sales. While
operating under retail industry it may efforts to sustain for longer time in
market.
Pestle analysis is another strategic framework that has been used in the
context of several brands, just to make assure that they may determine key
factors that put negative or may positive impact on their businesses as depend
on nature of each element. This model may contribute to determine external
factors that affect internal environment of organizations and drive workers as
well as other stakeholder attention towards strategic plan formation.
Business expansion is a excellent way to widen global presence of a company
in effective and systematic manner. It enables a firm to be competitive and
gain benefits by holding at top position in market where competition between
existing brands reach at high level. Asda may grab do so in term of using this
method.
SWOT analysis it the best tool that help marketer to identify their
organizational strength and weakness as well as opportunities and threats.
Each element may relate to a brand and allow individual to make good
understanding about ASDA which enable them to work accordingly in term
of using strengths to overcome weaknesses and grabbing opportunities to deal
with threats.

INTRODUCTION
Business practices are defined as the most effective ways which individual person such as owner or manager conduct to do
achieve their strategic aims and objectives. The current assignment will be based on ASDA, which falls under the category of leading
supermarkets in the UK. The study will define how external & internal factors impact company and how firm may affect on external
environment.
MAIN BODY
Describing how internal and external factors effect a specific venture
A business encompass set of varied factors that may put direct impact on venture activities, operations management and other
functions, whether in term of negative or positive. In order to determine each, specific tools and models may utilize in the context of
ASDA that are;
PESTLE analysis-
Political factor-
Change regarding any political factor such as political stability, trade policy, taxation rate, etc. may directly affect a company
and their overall performance level (Thomas and et.al., 2021). For example, in case of ASDA, Pandemic is one of those reasons that
drive the attention of national to international governance to take strict action in term of Lock-down that change entire terms,
conditions and rules & regulations related to business, it may put negative impact on supermarket growth in form of revenue or sales
decline. It may lead to decrease sale and profitability of firm which is not good at all for its continuous success within retail industry.
Economic factor-
Fluctuation in the context of unemployment rate, education extent, economic growth and development may influence a
particular venture or company. For example, ASDA business may get affect positively due to high unemployment rate in market or
geographical areas where it has operated its venture. It may do so in term of hiring local people in cheaper rate because individual

person need a job to enhance their living standard and by grabbing job opportunities in fair pay they may do so. It gives organization
chance to hire skilled and experienced people who are able to contribute to make business more successful.
Social factor-
Emergence of key market trend, education level, and buying patter of customers are those social factors that may affect
organizations. In the case of ASDA, online shopping and veganism are those two market trends that currently accepted or adopted by
people in bulk, which may put positive impact on organization progress and success within retail industry. It affects positively,
because firm may already effort to full its inventory stock with vegan items and also attempt to offer online service, which in return
help to increase its profitability, productivity and performance level. This external factor may contribute to generate great revenue of
brand.
Technological factor-
Technology advancement is one of those technological factors that drive the attention of marketer towards using advance
digital marketing technologies like Instagram through which they may obtain competitive edge and achieve strategic aims in excellent
manner. For example, by using chosen social media tool or platform, marketer may grab change to generate brand awareness
worldwide because millions of individuals has created their accounts on this channel, which make promotion easier to them. It may
put positive impact on ASDA growth and allow to continuously get success. Just because of this factor, company may become
competitive for long run within retail industry.
Legal factor-
Changes in legislations such as minimum wage act 1998, Equality Act 2010 and health & safety Act 2019 may drive the
attention of companies towards making change within their existing policies and practices. For instance, change in National Minimum
Wage Act 1998 may put a lot of pressure on ASDA to comply with new terms that may updated in this law. It may drive concentration
of management towards paying workers not less than minimum wage, and especially during pandemic half salary may paid to each

worker. It may affect negatively upon company in term of increasing work pressure and reformation of employment policies (National
Minimum Wage Act 1998, 2020).
Environmental factor-
As individual person and government are quite concern about environmental safety and sustainability, ASDA may feel much
pressure on conducting its venture activities by considering these things. This external factor may put positive impact on
organizational progress and success because it may already take initiative to conduct sustainable and ethical business practices in
varied manner just to make assure that environment become pollution free. Furthermore, organization may also take initiative to be
sustainable by using recyclable materials for purpose of packaging products and offer to target market. It may efforts to become an
environmental friendly supermarket, which is quite beneficial for its rapid success in sector against key rivals that operate in similar
market.
SWOT analysis-
Strengths-
As internal factor, wide range of goods accessibility within ASDA may influence positively upon sales and profits margin of
brand, in term of increasing its productivity and enhancing customers satisfaction. It may have huge range of items that people prefer
to purchase according to their choice, which in return help to increase the profitability of company. Firm may utilize this strength in
the context of gaining competitive advantages.
Excellent marketing campaigns is another key strength of brand which support to increase its customer base and build wider
one more than its rivals that has operated in retail industry. It may enable firm to gain the attention of new customers and promote
venture at global level where varied profitable investors may accessible and are capable to make further investment in productive
brands like chosen one.
Weaknesses-

It is quite important to a company to build their presence at high peach. In case of ASDA, limited global presence may put
negative impact on its success in retail industry. It may create barriers to get firm more successful in this competitive world, where
each organization may efforts to be competitive and gain competitive benefits. Due to this weakness, supermarket may face challenge
to gain its set aims.
Lack of transparency is another weakness of ASDA that may affect negatively upon its customer base and brand image in
retail industry. Instead of including workers in decision-making and awaring them about organizational change, firm may take
initiative to implement its plan which may lead to decrease individual performance level.
Opportunities-
Development of digital marketing platforms such as Instagram may put positive impact on organization. It may provide
chance to marketer to grow venture continually by gaining attention attention of new target audience via using this tool. They may
advertise firm and its products globally, which is one of those key approaches throughout company may reach at expected outcomes.
Furthermore, emerging market trend may also offer marketer and organization chance to be competitive in retail sector by
selling each item according to trend and as per the need as well as expectations of customers. It helps to generate great revenue and
maximize the profitability of brand, more than other supermarkets.
Threats-
Intense competition in retail industry may put negative impact on ASDA success, it may lead to decrease management
productivity in term of driving their concentration on strategic planning and implementation.
Fluctuation in governmental regulations due to pandemic is another threat that also affect negatively upon organization and
its current management practices.
Discussing different ways in which ASDA can impact on external environment
In the world of business there are several ways accessible that has been utilized by many companies to overcome the impact of
external as well as internal factors.

For example, during period of lockdown that is governmental decision, organization may effort to provide home delivery and
start selling its item online, which saves customers time and provide value to each. With this approach firm may retain potential
buyers and drive the attention of new. Throughout this method, it may overcome the negative impact of political factor and grab
opportunity to become competitive in term of offering online shopping service to local people which enable them to stay at home and
buy everything which they want.
Just like above factors, ASDA may impact on external environment in term of complying with laws by accepting current
changes and making management ready to do the same in the future. It is one of the best techniques that supermarket may utilize to
gain benefits that may exist in retail market (Dorlach, 2021). Furthermore, in order to overcome the negative impact on weaknesses, it
may take initiative to expand its venture and build global brand presence by using specific business expansion approach such as joint
venture, direct investment, etc.
Along with above, by conducting market research, firm may get all information about current market trend, change in
regulations and other essential subjects which it may utilize currently to gain advantages in the future. It may effort to be innovative
and creative that it useful and beneficial for rapid growth.
CONCLUSION
From above analysis, it has been concluded that organization has overcome the negative impact of certain factors by taking
appropriate decisions as well as actions. It has utilized advanced technologies for purpose of increasing operational efficiency and
effectiveness. Company has gained competitive edge by offering quality products and also by considering current market trends that
affected buying behaviour of individual customers.

REFERENCES
Books and Journals
Dorlach, T., 2021. Business interests, conservative economists, and the expansion of noncontributory pensions in Latin
America. Politics & Society. 49(2). pp.269-300.
Thomas, P.J.M. and et.al., 2021. A PESTLE analysis of solar home systems in refugee camps in Rwanda. Renewable and Sustainable
Energy Reviews. 143. p.110872.
Zima, K., Plebankiewicz, E. and Wieczorek, D., 2020. A SWOT analysis of the use of BIM technology in the polish construction
industry. Buildings. 10(1). p.16.
Online
National Minimum Wage Act 1998. 2020. [Online]. Available Through: <https://www.legislation.gov.uk/ukpga/1998/39/contents>