Business Strategy and Analysis of Asda: An Internal and External Perspective

Unit 32
Business strategy

Table of Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro
environment............................................................................................................................3
Pestle analysis........................................................................................................................3
Mission and objective of the company...................................................................................3
Pestle Analysis.......................................................................................................................3
Ansoff’s growth matrix..........................................................................................................5
Stakeholder mapping..............................................................................................................7
Analyse the internal environment and capabilities of a given organisation...........................7
SWOT analysis.......................................................................................................................7
Porter’s generic forces............................................................................................................9
Applying Porter’s Five Forces model evaluate the competitive forces...............................10
Applying a range of theories, concepts and models.............................................................10
Bowman Strategy.................................................................................................................10
Balance scorecard.................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

Introduction
Business strategy is the best strategy for the growth of plan to achieve their own
vision, prioritizing, objectives and accomplish for the growth of financial performance
through the business model. With the help of cost leadership, differentiation and make focus
for the growth of basic strategies. With the help of business model is a management for the
development new or make existing methods. It is helpful for growth to make describing value
proposition, consumers and finance. Asda is British supermarket chain, its headquartered is in
Leeds, England. The company is founded in 1949 and now the company is providing their
services in grocery, general merchandise and different financial services (Aldianto and et.al.,
2021). This report analyse company’s macro environment and their business strategy. It is
further discuss that organisation’s internal capabilities and environment are needed to be
discuss in an effective manners. Furthermore, porter’s five forces model provide the growth
to new market of the company. In last, models, theories and concepts are developed an
understanding for an organisation.
Main Body
Applying appropriate frameworks analyse the impact and influence of the macro environment
Pestle analysis
Mission and objective of the company
The mission of the Asda Company is to become one of the best Britain retailers that
actually exceed the customer’s need within the market. They wants to stakeholders of the
business and understand the stakeholders and complete their customer’s customer. Their main
task is to meet every customer’s demand and provide them for growth in terms of products
price. There are different strategy which are adopted by the company to make a strategic
intent and different direction places.
Pestle Analysis
This analysis is a strategic framework which provides valuable information on
external factors that impact the organisation and gain macro perspective of industry
environment. In context to Asda, it allows the company to create an impression in relation to
external factors that may affect in development of new products and service in the industry
(Alrousan and et.al., 2021). The following factors are given below:

 Political factors: These factors relate to government regulations which determine
extent of control government has on the industry or company. In context to Asda, the
company functions in a relative stable political environment and is promoted by the
government to provide affordable good and services to its customers.
Positive impact: Subsidies result in lowering the cost of products and services while
maintaining high quality ensuring both profitability and customer satisfaction for the
company.
Negative impact: Sudden changes in political climate can result in company policies
not being in line with the government regulations affecting its operations and management.
 Economic factors: These factors affect how an organisation will price their products
and services as economic factors have a direct relation with company’s long-term
objectives in the market. In context to Asda, factors such as labour supply and
demand, energy price, etc. are taken into consideration to develop effective strategy in
order to keep price relatively low (Azadegan and Dooley, 2021).
Positive impact: The understanding of economic aspects help the company to gain
leverage over its competition by developing effective pricing strategy and reduce product
price.
Negative impact: Due to COVID-19 the economy has been hampered with decline in
the purchasing power of customers resulting in diminished profits for the company.
 Social factors: This factor focuses on demographics and culture of the customers in
market to better understand its customer base. It provides help in developing segment
focus products and services and an effective marketing strategy. In context to Asda,
understanding social factors help in introducing new products and services in the
market curtailing to a targeted customer base.
Positive impact: Provided a sound understanding of the social aspects such as lifestyle
and Habits Company can develop market strategy for a target customer base capturing larger
market share.
Negative impact: The Company will fail in developing desired products and services
for customers without understanding the social aspects of the market (Bratianu and Bejinaru,
2021).