Analysis of Macro and Internal Environment for Strategic Management Decision

Business strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of macro environment to identify and inform strategic management decision............3
Internal environment analysis by using appropriate tools...........................................................6
Porter's five forces model to develop strategies..........................................................................9
Apply concept, theories and models of strategic management and develop strategic plan.......10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business strategy refers to set of competitive actions or moves that a company uses to
gain attention of their target market and to achieve organizational aims. It outlines how
organizations can be carried out to reach at their desires ends. It also defines what companies
need to do to achieve all their goals which can be aid guide decision-making procedure for
resource allocation and recruiting. The present assignment is based on ASDA, which falls under
category of the best retailer, online groceries provider and leading supermarket chain in UK.
This study will critically analyse macro environmental factors by applying appropriate
tools to identify its impact on strategic management decisions. Beside this, it will also critically
evaluate internal environment of company by using relevant frameworks such as SWOT.
Furthermore, this report will explain strategies development by using Porter's five forces model
to improve competitive boundary and market position. At last, it will describe appropriate
strategic management plan that has tactical strategic objectives as well as priorities for company.
MAIN BODY
Analysis of macro environment to identify and inform strategic management decision
PESTLE analysis-
Political factor-
Brexit is one of the political factors that impact on decision-making process of ASDA
and its management (Shaw and Shaw, 2019). Due to this factor when England leave EU retails
sector lose their main trading partners that can affects on their sales and productivity. Without
trading partners ASDA and other retailers cannot be able to supply their products, as it put
negative impact on business practices. Administration can develop trade partners by following
some rules according to current scenario.
Economic factor-
These factors play essential role in growth or failure of ASDA (Stouraitis, Harun and
Kyritsis, 2017). Economic growth is one of the key element that affects strategic management
decision negatively because the factor in UK as compare to previous year going down which
means company has to adjust their current business practices which makes them able to generate
revenue. GDP growth rate as compared to last year in UK was 1.41%. So, it clears that firm need
to improve services and activities that can be increase GDP more than now.
Social factor-
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Health and welfare awareness among people drive them towards purchasing healthy
products which put high pressure on ASDA to keep their inventory according to market needs
(Flaherty and et.al., 2020). It put positive impact on strategies' management decision of firm as
they already consider buyers requirement and provide fresh as well as organic food products.
This act can increase profit margin and sales of company.
Technology factor-
Technology development gives ASDA the best chance which they can use to gain
attention of buyers and retain exiting consumers with product purchase for long (Loon, 2017). It
put positive impact on management judgement as they can create own application to take order
and deliver it at mention address by client. It can make workers able to build strong bond
between potential customers and business. It also allows firm to take buyer feedback via using
app which make them capable to consider possible changes.
Environmental factor-
Government and buyers concern towards environment safety put high pressure on ASDA
to keep business practices sustainable (Urquhart and et.al., 2017). It also makes positive impact
on firm strategy as company develop Eco-friendly environment in outlets. They besides
instrumental as retail firm in back upping C decrease. Their outlets are 40% more energy
efficient and emit 50 percent less Carbon Dioxide than standards new physique outlet. ASDA
already work with their providers to cut down total of C emitted which makes them able to
achieve better outcomes.
Legal factor-
Regulations and rules of nations in which ASDA operates and wants to operate can be
put positive impact on decision-making of management when they follow it (Greenwood, 2019).
Laws related to employment can put negative impact on firm because every nation has different
terms and conditions according to economy. To operate in other country company have to pay
employees accordant to rule that goes to be quite difficult to do.
Stakeholder Matrix-
It is another framework used to identify external factors that affect strategies employed
by ASDA. Organization wants to establish their business US which makes them stronger to
reach at global level.
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