Impact of External Factors, Leadership Style, CSR and Effects of Brexit and Covid-19 on ASDA

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discussing impact of external environmental factors over business ..........................................3
Recommending suitable leadership style that incorporates with desired business objectives ....4
Critically commenting on Corporate social responsibilities........................................................6
The effects of Brexit and Covid-19 pandemic in 2020/2021 on ASDA company and how the
ASDA has addressed this situation..............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Today, business needs various strategies in order to gain competitive advantage over
other competitors (Kumar and et.al., 2021). Business strategies act a path and gives direction to
the business in order to achieve goals of the company. ASDA is British multinational company
founded in 1949 headquarter in Leeds, England. Today, ASDA is one of the largest supermarket
chain operating in Europe. The report will be addressing external environment factors that
impact business and will also be discussing suitable leadership style to achieve their business
objectives. Further, role of corporate social responsibility will also be addressed. Lastly, the
report will be giving opinion about the effects of BREXIT and Covid-19.
MAIN BODY
Discussing impact of external environmental factors over business
External analysis concern with examining of the industrial environment of a company, it is
the procedure through which corporation objectively assess the changes within their industry
(Mahabir, and Pun, 2022). There are external analysis tools are present that works as strategic
planners for analysing the macro environmental factors that have potential impact over
organization. Pestle analysis of ASDA British supermarket chain is discussed below:
Political: This factor consists of international regulations, political aspects, consumer rights,
employment, changes in this make great influence over the industry. If there are any changes in
political structure, then it will give greater impact over retail industry. ASDA monitors the
political environment constantly; company is benefited by stable political environment in UK.
however, Brexit has imposed certain challenges for business, ASDA company must need to think
of their future proof supply chain in dealing with Brexit.
Economical: It concerns with interest, inflation rate, unemployment and labour supply, energy
prices, such factors directly impact the pricing strategies of the organization. UK has seen flat
quarter 4 of 2019 with their growth rate (revised) 0.5 percent where rate of inflation is measured
as 1.7 percent that has affected ASDA both positively and negatively. Additionally, due to
pandemic imposed lock-down challenges many people have lost their shopping interest that has
affected the selling of product of organization.

Social: Ageing population, consumer attitude, gender, job all demographic factor falls under this
category (Maroun, 2019). Celebrity following and health life style are most important factor for
the ASDA. Understanding in social factors assists in launching new products and services in
market. as demand in organic food is relatively high in UK, ASDA also sells the products which
cater to better amount of ethnic groups.
Technological: This factor is driving many changes in industry where it is continuously creating
lots of opportunities of business and have shown its greater influence over business functions. As
using of technologies is constantly growing where consumer always expect to place their order
by just one click. ASDA is also working on implementing such tools and systems in order to
meet their consumer requirement, also they need to keep their funds always ready to deal with
constant technological advances to remain strong in retail field.
Environmental: Green economy, pollution, hazardous waste and organic foods falls under this
category. As people now a day always prefers their buying through those firm who are
committed to environmental sustainability. It has put lot of pressure over organisations in retail
sector as to operate within an environmental friendly manner. Hence, Asda also need to
demonstrate that they are committed to their sustainable goals and working on reducing carbon
emission from its operational work.
Legal: Laws, taxes, country rules and regulation, punitive actions taken by authorities all comes
under this factor of pestle framework (Mikalef, Pateli and van de Wetering, 2021). According to
UK laws, it is said that employee cannot be pay less than minimum wages also they cannot be
dismissed unfairly. ASDA company also make sure that they are following all legal compliances
to avoid any miserable situation.
Recommending suitable leadership style that incorporates with desired business objectives
Leadership always plays a significant role for the organization, leaders makes their team
to stay committed to organizational goals and to try their best to make all goals achievable for
company. ASDA company is one of the strongest company in their retail sector, in such it is
important for them to remain in top position which is only possible if their workplace