Busines Strategy

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. PESTEL and Porter's five forces analysis to find out opportunities and threats.....................1
2. Capability analysis of the company........................................................................................4
3. To analyse internal environment conduct SWOT analysis.....................................................5
PART 2............................................................................................................................................6
1. Evaluate different types of strategic directions available to the companies...........................6
2. Justify and recommended the most appropriate growth strategy for organisation.................7
3. Produce a strategic management plan.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy refers to those plans of action which are devised and formulated by the
management of the company to deal with the business issues and problems. It can be those
strategies that are formulated by the management of the company to operate its business in
competitive sector to gain rivals' benefits (Boyd and et. al., 2017). This assignment is based on
ASDA which is a British supermarket retailer which operate its business in different nations with
the help of its different products like grocery, general merchandise and financial services etc.
This written document will discuss about the impact and influence of macro environment and
assess the internal environment and capabilities. Further, will explain about Porter's five force
analysis to evaluate competitive force. Different models, concepts and theories will also define to
devise strategic planning for the company.
PART 1
1. PESTEL and Porter's five forces analysis to find out opportunities and threats
PESTEL analysis
It is a tool and framework which is used by the company7 to analyse and determine
macro environment factors that affect and influence the business of a company (PESTEL
Analysis. 2016). To analyse and evaluate the impact of these factors, management of ASDA can
use this analysis and description of it is as below:
Political- This factor consist government policy, political stability, corruption, trade
restrictions, foreign trade policy, taxation policy and others. In context of ASDA, European
Union has presented an effective growth option for respective firm because the company can
make expansion of its business in EU markets cause of most of trade barriers have been
removed. In UK, change are occurred in taxation policies so it affect the business of ASDA in
unfavourable manner.
Economical- It include exchange rate, economic growth, inflation rate, interest rate,
unemployment rate and others. This factor play and effective role in growth and failure of ASDA
when economic condition of UK affect due to recession (Chen, Eshleman and Soileau, 2017). In
UK people are preferring online shopping due to which employment is increased and
maximisation also increase in sales which positively affect the company in term its economic
condition. Corona virus negatively affect the economic condition of the nation in term of
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economic slowdown. Because due to this, people are not coming out from their home and do not
prefer to shopping form stores like ASDA as comparison to normal previous time. Due to which
the economic condition of different nations affect in negative manner.
Social- This factor involve culture, beliefs, living standards, needs, wants, taste &
preferences etc. In UK, people prefer online shopping because most the population of this nation
is working. So this factor positively affect ASDA because the comp nay also use online way to
deliver its product to its customers (Grayson and Hodges, 2017). Change in consumer demand is
a factor which affect the business of respective firm. There is an increased demand for organic
food because people are more health conscious so this factor influence ASDA in unfavourable
manner. Corona Virus also create negative impact in social term and unfavourably affect the
business of company like ASDA because business people and employees are not coming outside
and prefer to meet customers which negatively affect the business of retail companies.
Technological- It indicates to level of innovation. Technology incentives, automation,
advance technology, use of artificial intelligence and research & development etc. ASDA use
and adopt different technologies its business like online retailing and e-marketing so this factor
favourably affect organisation. Because by using these kind of techniques, firm offer its products
to its potential customer in amended way.
Environmental- This component consist ecological and environmental components like
climate change, weather, environmental offset and environmental act that are development by the
national authorities like environmental act, pollution act and others. In order to assure that ASDA
has positive effect because the firm usage recyclable materials in different substitutions alike in
packaging of the products. This favourably affect the company because it effectively follow
environmental act.
Legal- It is the last factor of PESETL analysis and it consider those laws and legislations
which are developed by the government of the country for the effective or legal business
operations of organisations. This component consist employment act, discrimination act, heath
and safety law and others. In UK, ASDA does not pay nay employee less than the minimum
wage so this factor positively affect the business of the firm.
Porter's Five Force Analysis
It is a business management model that determine the strength and weakness of an
industry. Also, it enhance the level of competition and profitability of a company in order to gain
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