Impact of Macro Environment on Asda: Analysis and Evaluation

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysis the impact and influence of the macro environment on selected organisation......1
M1. Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................3
P2. Analyse the internal environment and capabilities of a given organisation using
appropriate framework................................................................................................................3
M2. Evaluate internal environment and analyse the strengths and weakness of selected
company......................................................................................................................................6
P3. Applying porters 5 forces model evaluate the competition forces of a given market sector
for chosen organisation...............................................................................................................6
M3. Evaluate strategies to improve competitive edge and market position...............................9
P4. Apply a range of theories, concepts and models, interpret and devise strategic planning....9
M4. Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................11
D1. Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions.............11
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................14

INTRODUCTION
Business strategy basically means the actions and plans opted by senior management to
achieve organisational goal on time. Business strategies are made so that organisations get to
know whether they are going in a right direction or not for reaching their objectives by
measuring overall performance with strategies made by company (Agustia, Muhammad and
Permatasari, 2020). Asda is an British supermarket chain which is headquartered in Leeds, UK.
It is founded by Noel Stockdale and J.W. Hindell in the year 1949. Current Chief Executive
Officer of Asda is Roger Burnley. This report covers the impact and influence of macro
environment on Asda, Internal environment and capabilities of mentioned company, evaluation
of porters 5 Forces and application of some theories or models in chosen organisation.
MAIN BODY
TASK 1
P1. Analysis the impact and influence of the macro environment on selected organisation.
Mission, Vision and objectives of Asda are determined below-
Vision- To gain popularity among customers as much as possible by gaining their trust
by providing them less amounted products with good quality.
Mission- To become best retailing company of UK. by including customer satisfaction
and customer benefits.
Objectives- To provide only those product to customers which is affordable to customers
and which is in good quality.
Business strategies are those actions which includes major decisions of company which
help them to achieve their goal smoothly and efficiently(Alam and et. al., 2019). It is future
oriented also because strategies are made for future actions so that less time will waste upon
deciding what should be done and by whom within an organisation.
Macro environment are those external environment (PESTEL) of business which impacts
a company from outside factors which is uncontrollable. PESTEL analysis of Asda are explained
below-
Political factors- Political factors include tax policy, trade restrictions, political stability
and many others. In context of Asda, the political stability of London is strong. There is no
specific barriers or restrictions on trade in UK. Their is a rule which consist no interference is
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made by political parties in any private company in situated area. Corporate tax in UK is 19%
which is considered low as compared to other countries. Hence, political factor of UK is
favourable for Asda.
Economical factor- this factor includes inflation rate, exchange rates, unemployment
condition, GDP of country and many others (Aldea, Iacob and Quartel, 2018). In context of
UK, they are developed country with high GDP. Inflation rate is low which is 0.7% which is
lower than other countries but it is raised within United Kingdom from last few months.
Unemployment rate is 5.1% which is appropriate. Therefore overall condition of UK economy is
good. Hence, Asda have many benefits in UK economy.
Social factor- This are those factors which tells the standard of living of a particular
country. This factor includes education level, buying behaviour of customers, wealth and religion
and many others. In context of UK their social factors are considered as strong because their
literacy rate is 99% and most of the people have strong perception of buying qualitative goods
whether they have to pay little bit more for a product. The only disadvantage of social factor in
UK is that there are many conflicts and strikes related to religion and culture. So, it is
recommended for Asda to refuse manufacturing of some special products which specify or point
out a particular religion. On the other hand buying habit of UK people is very strong. Hence, this
is positive point for Asda.
Technological factor- Technological factors consist of mode of technology used by a
firm for production (Bentley-Goode, Omer and Twedt, 2019). In terms of UK they are developed
country with most advanced technology adaptation. They use new and updated machines and
equipments for production. Hence, in this context Asda is having favourable technological
environment in UK. Therefore company are able to use most updated machines for their
operational works which helps them to save their time.
Environmental factor- It consist of those factors which tells particular environment of
country such as weather, population, pollution control and many other components. Most of the
time this factor is considered as unfavourable for any firm in UK because whether and climate is
unstable and the rate of occurrence of storm or any other natural disaster is very high in UK. Air
pollution of the country is too high that 8.3% people die just because of asthma, heart diseases,
lung disease and etc. which is caused by air pollutants. Hence, environmental factor is not good
for Asda in London.
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