Business & Business Environment: A Comprehensive Analysis of Asda

BUSINESS & BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................1
P2 explain the size and scope of various types of organisations.................................................3
M1 Analyze how the structure, size, and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................4
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions...................................................4
LO 2.................................................................................................................................................6
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................6
M2 Analyze the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have on the organisational structure......................................7
LO 3.................................................................................................................................................9
P4 Identify the positive and negative impacts the macro environment has on business
operations, supported by specific examples................................................................................9
M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organization..........................................................................................11
LO 4...............................................................................................................................................13
P5 conduct external and internal analysis of the specific organisation for the identification of
its strengths and weaknesses......................................................................................................13
P6 Explain how strengths and weaknesses interrelate with external macro factors..................13
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.......................................................................................................................................14

D2 critically evaluates the impacts that both macro and micro factors have upon business
objectives and decision-making.................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

LIST OF TABLES
Table 1: Difference between small, medium and large organisation..............................................3
Table 2: Advantages and disadvantages of interrelationships.........................................................7
Table 3: Positive and negative impact of macro environment........................................................9
Table 4: Application of PESTLE on Asda....................................................................................11
Table 5: SWOT of Asda................................................................................................................13
Table 6: Application of SWOT on decision making.....................................................................14
Table 7: Impacts of Micro factors.................................................................................................15
Table 8: Impact of PESTLE analysis on business.........................................................................16

LIST OF FIGURES
Figure 1: Different types of organisation.........................................................................................1
Figure 2: Legal structure of organisation.........................................................................................2
Figure 3: Different functional areas of business..............................................................................6
Figure 4: Pestle analysis framework..............................................................................................11
Figure 5: Interrelationships of SWOT and macro factors.............................................................14
Figure 6: PESTLE impacts............................................................................................................16

Introduction
Organisation works for earning profits and maximising the profits and also for enhancing its
customer loyalty. But these objectives achievement is not so much easy it requires huge efforts
and resources in terms of analysing the environment in which organisation operates. Business
environment has two categories macro environment and micro environment. These two
environments have lots of factors as SWOT and PESTLE these elements are so important to
analyse as they give the right and current position of the organisation. And all the tools which
give proper idea about these elements those tools are also very important to know.
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