This presentation covers an analysis of both micro and macro environment through an application of PEST and Porter's five forces model in respect to the company Asda. It highlights the importance of competitive advantage and business environment knowledge. The PEST analysis comprises form the part of external business environment which talks about the organisation's political, economical, social and technological environment. The Porter's five force helps in the analysis of company's position in a competitive market as well as its strengths. The internal environment for an organisation Asda is highly fruitful and is providing greater business opportunities with a healthy culture.