Impact of Business Environment on ASDA

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 SWOT ANALYSIS.................................................................................................................3
LO2 Policy of government that affect business..............................................................................4
LO3 Impact of business environment.............................................................................................4
CONCLUSION...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global Business Environment is the environment in multiple sovereign countries that are
different from the environment of home countries and thus influence behaviour of organization,
the way the resources should be used. In this report ASDA has been taken as a company that is
supermarket retailer operating its business in British. This report explains about the internal and
external factors of business that affect the organization decision-making. This report also
discusses impact of government and changes in environment on the business organization.
LO1 SWOT ANALYSIS
Swot analysis help in identifying internal and external factors of business environment
that effect smooth functioning of business. SWOT Analysis of ASDA is as follows:
Strength: This describes the company is excelled or best in something that differentiates it from
other company in the market (Lohrke, Frownfelter Lohrke and Mazzei, 2018). ASDA strength
lies in its price promotional strategy as it provide quality products at reasonable price to its
customers. The company has wide, diversified and loyal customers due to good product
portfolio, offer wide choice to customer and have also patents its various technologies in order to
take competitive advantages.
Weaknesses: This is an internal factor that describes the negative attribute of the company or
the weak point where the company needs to improve its performance. ASDA presence in global
market is limited and few countries restrict it entry due to fear of increase competition. The
company use false advertisement such as “lower price on everything you buy” which negatively
impact on the company's image.
Opportunities: It such situation that put the company at a profitable position or stimulates
growth of the company. The company has various opportunities to expand its business oversea
and within its own the countries by making alliance with other companies. ASDA can grow its
business by selling products online, diversifying its product range that means can increase its
product range or its presence in financial services.
Threats: This includes all such factor that are not controlled by the company and can be proved
harmful or can cause damage to the company (Vigna and et.al., 2018). So the company should
identify such factor before its start or expand its business for the smooth functioning of
organisation. ASDA has facing increases competition from companies such as ALDI and LIDL
as they well known for discounts, so it may lead to decrease in market share of the company.