Strategic Analysis of Asda using PESTLE, VRIO, SWOT and TOWS Model

Global Business and
Strategy

Table of Contents
Introduction:.....................................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing the external market conditions of the company:........................................................3
Evaluating the internal business environment of the company:..................................................5
Discussing about the SWOT analysis of the organisation:.........................................................6
Explaining about the strategic approach of the company by using the TOWS model:..............7
Recommending strategic advice to the company based on the analysis:....................................8
Conclusion:......................................................................................................................................9
References:.....................................................................................................................................10

Introduction:
The term strategic management is defined as the business activity which is directed
towards making plans, procedures as well as objectives in order to increase the competitive
position of the company in market. The main aim of strategic management is to make sure that
staff and resources are deployed in the most effective manner. For this report Asda company is
taken into consideration. The organisation is one of the famous supermarket which is based in
UK. The company deals in various food items, clothings and many more. The report will
evaluate the internal as well as external environment of the company in order to gain insight
about current market trends. In relation to this, the report will also create a strategic plan by
using TOWS model. Moreover, the report will also strategically recommend the company based
on the analyses.
MAIN BODY
Analysing the external market conditions of the company:
In order to analyse the external market forces, PESTLE model is taken into consideration:
PESTLE analysis tool:
This strategic tool is undertaken by company to evaluate the external factors that can put
impact on the strategic decisions of the organisation. In context to Asda firm, this business tool
will support the firm to make accurate strategic plans in order to attain future growth objectives.
The following are the elements of PESTLE model:
Political force:

The factors which possess a greater risk for the goal attaining operations of a company
through risks associated with political instability ,corruption, export and import restrictions and
many more. In context to Asda, this corporate giant enjoys a great political stability in UK which
in turn helps it in attaining long term goals in effective manner (Lynch, 2018).
Economic force:
The factors which depends on economic factors of production ,interest
rates ,consumption level,supply and demand etc. that can play a important role in influencing the
decision of company in regards to their operations and supply chain policies and actions. In
relation to Asda, it considers various economic factors in its day to day to operations like labour
supply and demand , cost of credit, energy prices etc. These economic factors can impact the
pricing strategy of the company.
Social force:
The operations which are influenced by change in customer tastes and
preferences ,change in population ,education levels and income disparities known as social
factors. In context to Asda, It runs their operations taking care of different aspects like customer
demands and change of their customs. Thanks to the increasing standard of livings , It helps the
company to introduce a new product line in the market (Siegel and Leih, 2018).
Technological force:
The factors which cover technological and innovation changes over a period of time is
known as technological factors .In relation to Asda, the company understands the importance of
the technology and how to properly use it for attaining companies growth and objectives .For this
the company has developed 'one tap' delivery services app which is fast and convenient to use.
Legal force:
These factors include health and safety,equal opportunity, advertising
standards,consumer laws and rights,product labelling and product safety. In context to Asda, the
firm takes an action in accordance with law and regulations of the land in which its operating and
takes care of the consumer laws and rights of the country in which it is operating.
Environmental force:
These factors include weather conditions, temperature,climate change,natural disasters
etc. The company must prepare themselves for extreme weather conditions like tsunami in order
to to achieve their goals without interruptions. In context to Asda, the organization is increasing