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

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