Analysis of Macro Environment and Internal Capabilities of ASDA

Business strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Analysis the impact of macro environment............................................................................3
Analysis internal environment and capabilities of organization............................................5
Porter five force model to evaluate competitive force...........................................................7
Theories, concept and models, strategic planning..................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy play a crucial role in success of the business firm because it assist firm
in taking different actions and paths by using which problem can be solved in proper manner.
Business firms time to time evaluate business operations and accordingly take steps to handle
conditions. ASDA was founded in 1949 at London. Mentioned firm in the current time period
have totally 165000 employees and is operating its business from 633 locations (About ASDA,
2020). The report will apply framework for analysing impact and influences of macro
environment and their impact on business and its strategies. This will analysis internal
environment and capabilities of company for perform task. This will analysis competitive
advantage of company by using Porter five force model. At the end, report will cover strategies
and plan for introducing new strategy to increase growth and sustainability of business in
effective manner.
TASK 1
Analysis the impact of macro environment.
ASDA is the British super market chain of UK which operates at several locations. The
company offers different kinds and types of product and services to their customer for satisfying
needs of customers. Company is follows Hierarchical functional organizational structure for
providing guidance for completing work (About ASDA, 2020). This also will allow managing
director at the top of this chart to make the biggest decision to complete business task in effective
manner. ASDA has mission, vision and objectives which are discussed as follows: Vision: Main vision of the ASDA is to provide goods and services at cheaper price to the
general public so as to support them. Mission: Main mission of ASDA is to become one of the best retailer and exceeding
customers’ expectations in terms of availability of goods at the workplace.
 Objective: is to reducing packaging and considers every option to achieve their goals in
proper manner.
Business strategy provide effective opportunity to ASDA for get success at market place
(Evans and et.al., 2017). Firm is operating in the industry in which already there are well
established players like Tesco and Aldi etc. There is tough price competition in the market and it
became very important for the ASDA to prepare competitive price strategy. Micro and macro
environment need to be considered before preparing any strategy in the business because these

factors heavily affect firm business. For analysis the macro environment affects to business, here
is select PESTLE analysis and stakeholder analysis:
PESTLE analysis
Political factor: Political factor greatly affect any business performance. Political
environment basically refers to the political party’s business policies. In some nations party in
power have clear majority or less majority. In case party have less majority, it cannot take big
decisions easily. In the UK ruling and opposition parties both are business friendly and due to
this reason ASDA on this front do not have any problem.
Economical factor: Economic environment refers to the economic condition of the
nation and global economy. In the current time period global economy is not in good condition
and is still striving to recover from economic jerks. Domestic economy is also not doing well and
on this front UK is facing serious problems. GDP growth is very low and inflation is also very
low(PESTLE analysis of ASDA, 2019). Hence, due to less demand ASDA is facing lots of
problem in increasing its profit in the business. Moreover, cost cutting is very difficult task as
firm already take lots of steps of cost control. Hence, on this front firm is facing lots of problems
and it need to take lots of steps to improve its condition.
Social factor: The social factor is also affected to company and its growth factors which
is consisted with taste and preferences of customers that are changed as per current trends. For
example: as the customers become a more informed, there is increase demand of organic food
which can give negative impact on company, if ASDA is not provided organic food to
customers. On the other side, if ASDA is provided organic food to customers who are keen on
organic foods are created various benefits for company (Buckley, 2020). this impact to strategies
of company because management have to make decision for new planning of food.
Technological factors: Nowadays technology is more advanced, which affect to ASDA
because their various customers are uses advanced technology to reach out customers. For
example: company is not adopted e-marketing for fast shopping. In this case customers are
moved to another company because customers are like to shop online. On the other side, if
company use e-marketing and online shopping apps then customers easily booked their orders
and increase sales which is beneficial for company. This can give negative impact on company
strategy because add this technology in their strategy for meet the needs of company.