Business Environment Analysis

Business Environment Analysis

INTRODUCTION
 Business environment analysis means examine and gather
information of all internal as well as external factor of the business
that effect the smooth functioning of a business.
 ASDA is a British supermarket retailer in UK and in this report
ASDA has been taken as company.
 This report present PESTLE and SWOT Analysis of ASDA and the
way it affects the functioning of the company.
 At last this report explain the way key finding and evaluate of
analysis influence the decision process of the company.

PESTLE ANALYSIS
 Political factor: It refers to the government policy and practice such as new legislation
that influence or effect the industry or economy of the country. It includes laws related to
labour, environment or trade restriction, tariff that effect business operation of company.
 POSITIVE IMPACT : ASDA has expanded its business in Chinese market and at the same
time can import certain product due to political factor.
 NEGATIVE IMPACT: European Regulation in national and international market has
impact on ASDA company policy, to its employee and war and instability has also effected
the decision-making.

Cont.
 Economical Factor: This factor helps in determination of economic position of a country or
performance, it effects the purchasing power of the customer and thus will impact the company
performance in long term. So, in order to be success it is necessary to keep watch on its economic
factors that are beyond the control of the company. It includes employment or unemployment, tax
rates, exchange rates and inflation.
 POSITIVE IMPACT: Due to recession in 2008 in UK, ASDA revenue increased as customer shifted
their shopping from expensive retailers to shop at cheaper rate which was offered by ASDA
company.
 NEGATIVE IMPACT: Due to recession the price of raw material price raised, credit crunch, more
competition in the market so it impacts the pricing strategies of the company.