Business Strategy for Asda: PESTLE Analysis, Internal Environment Analysis, and SWOT Analysis

Faculty of Business and Management Studies
BTEC HND in Business
Business Strategy
UNIT 32 - GROUP E
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Table of Contents
INTRODUCTION...........................................................................................................................3
PESTLE analysis....................................................................................................................3
Analyse the macro environment.............................................................................................5
Analysis of internal environment...........................................................................................5
Analyse the Strengths and weaknesses ..................................................................................8
The analysis related to environment and competition to formulate valid strategic objectives for
company.................................................................................................................................9
Apply Porter’s five forces model to check competitive advantages .....................................9
Form appropriate strategies that improve market position and competitive edge that is based
on the outcomes....................................................................................................................10
Strategic Plan........................................................................................................................11
Produce strategic management plan ....................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES:.............................................................................................................................18
Books and Journals...............................................................................................................18
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INTRODUCTION
Business Strategy can be defined as the techniques through that are used by organizations
to attain the level of sustainable success in the future in quite a proper manner. It helps in
attaining competitive edge over players in the market (Ali and Anwar, 2021). Along with that, it
is important that the managers of the organizations are able to prepare a specific strategy so that
they can help in taking the organization further on the road of growth in the future. Thus, it
becomes essential that the focus can be put on ensuring that the use of the appropriate methods
for the attainment of growth can be done. Asda is chosen in order to carry on the report. It is a
British Multinational Company that was formulated in 1949. In this report, a detailed focus can
be put on the preparation of Business Strategy so that management of the different types of needs
and wants can be carried out in quite a proper manner.
PESTLE analysis
PESTLE Analysis: It is a model that helps to analyse and monitor environment of
business. It helps in building remedies for strategic management of industry. Asda is a company
in retail industry which uses this analysis to observe trade dynamics and influence of macro-
environmental factors for upgrading its business (Bigelow and Barney, 2021). PESTLE Analysis
of Asda is as follows:
 Political factors: Factors which affects operations of industry with government policies
and guidelines are termed as political factors. Political system of UK has strong stability
and its legislation system provides opportunities to many firms to trade freely without
any restrictions. With this stability, operations of Asda are influenced to freely trade at
global level which brings positive impact on company as it can expand its business by
trading universally (Perera, 2017).
 Economic factors: Those factors which influence performance of industry or economy
are referred as economic factors. UK has market-oriented economy with extremely
developed social-markets and helps firms in encouraging their business level. But due to
pandemic situation in 2020, economic lock down influenced operations of Asda as
company is facing lower employment rate because most people lost their jobs. It
negatively influenced company as reduced employment opportunities causes’ reduction
in shopping activities.
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 Social factors: Factors affecting social environment of industry are stated as social
factors. UK has well-defined social markets as well as fair and strong society. Changes in
social factors influence functioning of Asda in launching new products and services
according to social environment (Demartini and Taticchi, 2021). It impacts positively on
company as introducing modified products and services Helps Company enlarging its
business segmentations. By doing this, sales volume of company reaches at highest and
brightens company's financial statement which is good status for Asda.
 Technological factors: Factors which influence operations of industry with innovations
and development defined as technological factors. Technological sector in UK is
developed and upgraded (Shtal and et.al. 2018). Nowadays, utilization of technology is
increasing rapidly and positively influenced performance of Asda as company uses
superfast broadband and mobile apps for operations which made marketing effective and
convenient. This helps company in developing its business strategies.
 Legal factors: Those factors which affects legal environment of industry are calleds legal
factors. For example the laws formed by UK government such as employment legislation,
food law, consumer law, etc. (Christodoulou and Cullinane, 2019). Asda follows all laws
and legislation that are formulated by government. But sometimes frequent interventions
by government hampers functioning of its business in a negative way. In this situation,
company is unable to utilize its potential. Hence, there are chances of reduction in
operations which declines its sales volume.
 Environmental factors: Ecological or business factors influencing operations of
industry stated as environmental factors (Drucker, 2020). UK environment is hygienic
and temperate climate. The environmental factors such as green economy, less pollution
assists Asda in turning one of the most viable company of UK. It positively influences
operations of Asda as it uses electric vehicles for delivering its products and services to
control pollution as well as make environment pure.
It is analysed that there is need to analyse the macro economic factors so that the firm is
able to take effective decisions. The political stability in UK helps Asda to operate smoothly. It is
seen that that they take proper care of environment and that assist the company in establishing
strong image. If the company will not follow the laws and legislation than they have to face
issues. At the same time use of latest technology is important for the company. They will unable
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