Analysis of Internal Capabilities & Environment of ASDA

Business Strategy

Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 Macro Environment................................................................................................................3
P2. Analysis of internal capabilities & environment of company by applying appropriate
strategies.......................................................................................................................................5
P3. Porter’s Five force model in relevance with organisation....................................................9
P4 Strategic Planning.................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategies are the tactics or the methods which are used by the organization so to
achieve their goals and objectives which they have decided for themselves. Business strategies
are made after evaluating or analyzing the internal and external environmental factors. The
internal factor may include mission, vision, objectives of business, employees, suppliers,
stakeholders and so on. All these factors are in control of a company. But in the case of external
factors, all these factors are out of the control of any organization. These factors mayinclude
economical, political legal, and technological and so on. These external factors do affect the
operations and activities of any organization. In the present report, ASDA is taken into
consideration.. ASDA is a British multinational company which deals in a retail business which
sells groceries, clothes, sanitary items and so on (Anwar, Shah, and Hasnu, 2016). The company
was established in year 1949 by Peter and Fred Asquith.
This report discuss about the internal and external factors which put impact upon the working of
ASDA. In external analyses PESTEL analysis is performed, whereas in internal analyses SWOT
analyses are performed. The report also includes the Porter’s generic model of ASDA.
TASK 1
P1 Macro Environment
The macro environment is concern with the factors which are independent in them and
does into get in control by any organization. These factors also called external factors which do
put impact upon the operational activities of a business. Some of the external factors may include
political, environmental, legal, technological, and economical and so on. These factors are out of
the control of any organization and they do bring risks into the company if these factors are not
followed up properly. The company has to consider these factors before taking any decision.
Macro environment is analyses through the evaluation of PESTEL analysis. It is a framework
which enables the organization or the user to analyze the external factors which affects the
working of any organization. PESTEAL stands for political, economical, technological, social,
environmental and legal factor. The PESTEL analysis of ASDA is as follows:

Political factor: This factor is concern with the rules and regulation which is been formed by the
government itself. If the government of the country keeps on changing the rules into the state
will also get change which could create instability into the operations of the business.
Impact and influence: As UK has the stable government, its rules and regulations which
are formed are also very much stable that works as an advantage to the company. The company
now does not have to bring change into their system and can focus on their other operational and
important activities.
Economic factor: The economic factor includes the factors which are concerned with the
economic growth and condition of a nation. For example: GDP, employment rate, disposable
income, lifestyle and etc. ASDA takes the factors such as creditability rate, relaxation rates,
rebates, taxes and so on under account. As UK is a financially stable country, the people living
there also are capable of living a good standard life.
Impact and influence: The companies establish in UK are very much wealthy and
profitable into their business. The company ASDO is also running successfully into UK.
Although the company did get affected by the Brexit law in 2016 which causes some loss to the
company also. As ASDO has many competitors like Tesco, Sainsbury and etc they has the
burden to perform economically well by bring required strategies.
Social factor: This factor considers the lifestyle, attitude, ideas, perspectives, behavior and etc of
the targeted market. This factor helps the organization in ascertaining the perspective of their
target market on a particular topic (Ghemawat, 2016). Any changes in the lifestyle of targeted
market put direct impact upon the products which the company serves. Over the years the
company has invested too much upon market search in which they conduct the survey for
acquiring the information about the taste and preferences of customers.
Impact and influence: This activity has helped the company in a lot way as they gets an
idea about which they can cater the market by providing the products and services which is
according to the need and desire of the customers.