Analyzing the Impact of Macro-Environment on Business Strategy

This report analyzes the impact of macro-environment on business strategy, focusing on ASDA store in the retail industry. It covers the PESTLE analysis, stakeholder analysis, and application of Porter's five forces model. It also discusses the internal environment and capabilities of ASDA using the SWOT model.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysing the impact and influence of macro-environment on organisation and it's strategy
....................................................................................................................................................3
TASK 2............................................................................................................................................6
P2 Analyse of internal environment and capabilities of an organisation....................................6
TASK 3............................................................................................................................................1
P3 Application of porter's five forces model for evaluation of market sector of Uber...............1
TASK 4............................................................................................................................................2
P4 Application of various models and theories to construct a strategic plan for UBER............2
CONCLUSION...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business strategy is explained as a combination of all decisions, action and steps which
are performed by an organisation for accomplish of organisational goals and objectives in
specified time-period. The main motive of business strategy is to acquire a competitive position
within the market. In simple terms, business strategy is recognised as a roadmap which support
organisation for obtaining desired goals by formulating a well-planned strategy. This report is
written from perspective of ASDA store and it is recognised as a British supermarket chain that
operate it's business in retail industry (Cho and Song, 2017). Moreover, this report highlights on
framework for analysing the impact and influence of macro-environment of an organisation and
their strategies. Internal environment and capabilities of an organisation with use of SWOT
model will also included in this report. In the last, range of different theories, concepts and
models to generate appropriate strategic planning is focus in the upcoming report.
TASK 1
P1 Analysing the impact and influence of macro-environment on organisation and it's strategy
PESTLE analysis is recognised as an important framework for formulation of a strategic
plan. ASDA management utilise PESTLE model for formulation of strategic programme through
analyse of all macro-environment factors such as political, social etc. that impacts on
organisation. PESTLE analysis and it's implement within context of ASDA is mention as follow:
 Political factor- National rules, international regulations, consumer right, tax etc. impact
on ASDA and they all are formulated by government. So political factor of a country are
uncontrollable factor due to which sudden changes is faced by respective organisation.
ASDA gain benefits within UK because of stable political environment. So the positive
aspect of political factor relates with stabilized business environment which helps ASDA
to gain competitive-edge against international organisation (Homburg, Jozić and Kuehnl,
2017). Political conditions also influence ASDA to generate a future-proof supply chain
to manage challenges related with Brexit by making deals or agreement on organisation
level. Further, negative aspect of political factor define in case of Brexit a lot of
uncertainty also raised because it allow all organisation to trade easily in UK.
 Economic factor- ASDA or any other organisation consider pay level, cost of credit,
labour supply etc. within economic factor. Economic factor impact on pricing strategies

of an organisation. Due to Brexit, a lot of price is changed that directly impacts on the
operations cost of business. ASDA face changes and it results profits of organisation is
reduced. A lot of individual also lost their jobs due to which number of shopping
activities is reduced. The impact of economic factor on ASDA define that to minimise it's
influence economic factor management reduce number of jobs to manage work in proper
manner.
 Social factor- Social change example ageing population, healthy life-style, celebrity
following and many more is recognised as an part important of ASDA. Understand of
social factor helps to introduce new product/services within market (Hsu, Moore and
Neubaum, 2018). This also aids an organisation to formulate appropriate segmentation
strategies that match with society needs. The demand for organic, vegetarian food is
growing with rapid speed. So it's influence management of ASDA to perform their work
in an organised manner to manage all task in an appropriate manner. In order to
overcome from the negative impact of social factor management of ASDA formulate
strategy according to social trends.
 Technological factor- The term technology is the major important factor of an
organisation and this define all operations undertake aspect of all terms that is related
with growing of market. Mobile application, website, e-business platform etc. are the
major terms that is used for collecting different delivery services through use of
technology within business. All big supermarket including ASDA constantly work to
utilise technology in their favour by approaching a lot of individuals with minimum cost.
Technological factor also impact on ASDA because it's helps management to sustain in
market for a longer period.
 Environmental factor- Green economy, carbon footprint, hazardous waste, organic food
etc. are important aspects of ASDA (Kamranrad and Darabi, 2020). With understand of
current scenario, this is understand that in the present scenario, individuals are aware
about the environment factors and this aids organisation to manage their work according
to current environment in order to manage business within an environment friendly
manner. ASDA must demonstrate about all policies which aids to perform work in an
environment friendly manner. This influence the management of ASDA to complete their

work by analyse of environment and it's policies to generate long term strategy as it helps
to obtain sustainability in market.
 Legal factor- ASDA formulate rules and regulations that is related with country in which
they operate their business. Due to any breach within contract this is complex for ASDA
to perform all work in an appropriate manner (Maklan, Antonetti and Whitty, 2017).
Like, UK government generate new regulations and according to this now organisations
has to pay approximately 4% more wages to labour. This impact on ASDA profits
because now management has to share it's profits with other persons. Moreover, ASDA
was fined approximate £300,000 for breaching the contract of food safety within London.
This also impact on organisation because it reduce brand value within market.
Stakeholder analysis of ASDA
The detailed analysis of Stakeholder ASDA aims for examine about internal and external
stakeholder of ASDA. This also aim for identify about analysis of all stakeholders to analyse
about biggest supermarket retailers to manage all work in an appropriate manner by formulate of
appropriate coordination between internal and external stakeholder.
 High power and high interest- Stakeholder that relate with this section has ability to
influence decision-making process by taking interest in business activities of
organisation. With relation of ASDA, business authorities such as shareholders aids to
focus on complete work in proper manner.
 High power and low interest- Consumer base of ASDA is included within section of
analysis aids to perform work in an organised manner (Namazi, Dehghani Saad and
Ghoohestani, 2017). Food delivery market of ASDA towards establishment of consumer
for purchase of right retail products within industry.
 Low power and low interest- Supplier are included in the category of low power and
interest within ASDA. Within context of respective organisation, management manage
all supplier by purchase of raw-materials at a large level.
 Low power, high interest- Due to change in government authorities the tax from ASDA
is depended on firms. This also aids management to perform their work with analysis of
government authorities to influence appropriate decision-making in business activities.

For formulate of appropriate strategy business of ASDA generate and understand about develop
of appropriate plans through analysing needs of an organisation that match with individual
interest and organisation strategy.
TASK 2
P2 Analyse of internal environment and capabilities of an organisation
ASDA is recognise as a popular or well-known retail organisation and this was formed in
the year 1949 which headquarters is situated in Leeds, West Yorkshire. At present scenario,
ASDA format it's organisation in different formats that include ASDA supermarket, superstore
and many more with managing appropriate internal environment within organisation (Palgrave
Macmillan, Cham.Mohd-Ramly and Omar, 2017). So to understand ASDA internal environment
SWOT model is understand that is mention as follow:
 Strength- High range of products it determine that a large variety of products and
services that is offered to customers work as a major strength for organisation. Moreover,
financial management of ASDA is also strong that aids to generate appropriate results by
managing business within a decided cost.
 Weakness- The presence of ASDA within global market is too low and this define that
most of sales come from UK market only. So it work as a weak point for organisation
because it restrict business to generate more sales. Moreover, ASDA ability for sell
prices is restricted due to strong competition from local vendor. So it also work as a weak
point for organisation.
 Opportunities- To expand business within new domains is a major opportunity that aids
ASDA to perform their work in different region. This results that sales of products is
increased which also enhance ASDA profits in an appropriate manner (Umar, Sasongko
and Aguzman, 2018). Presence in online market is another opportunity and this aids
management to add more customers by offering products in an easy manner.
 Threats- Change within government policy is a major threat for organisation as
uncertain change in organisation aids generate threats that impact on business. Like,
reduce in demand of non-veg products create complexity for ASDA to store them for a
longer period.

TASK 3
P3 Application of porter's five forces model for evaluation of market sector of Uber
In support of this ASDA make sustained level of growth and development as with this internal
competency and market presence both get enhanced (Venkatesan, Petersen and Guissoni, 2018).
The porter’s five forces are being used to advance strategical framework that aid to attain
competitive advancement through which market growth and its development is induced with
better manner and it is as explained below as:
Porters five forces analysis
Threat of new entrants: It is force that is weaken in power as ASDA is a well-established brand
with larger market share with this its ability to advance the level of investment and capital
growth both is enlarged that is not easy for the new entrant to match. In this management of
ASDA ensure to foothold its market possibility with this change in customer demand is
analyse and fulfilled in timely frame.
Threat of substitutes: It is a force that is more likely towards the customers and their finding
within the marketplace about its own requirement and demand. In induce potential impact
over profitability of the business and act as a biggest threat for the business. In order to
manage and control this ASDA ensure to implement certain level of changes and innovation
with this working ability is improvised with perfection.
Bargaining power of suppliers: ASDA deals within retailing sector and with this having a lot of
market suppliers thus this power has lesser impact over the working and task
accomplishment of business (Witell and et. al., 2020). For this management of ASDA ensure
to purchase the raw material from the suppliers those are feasible to the business as it
advance the probability of profit margin with adequateness.
Bargaining power of consumers: The customer always have higher in power thus this factor has
strong influence over the working of business and its growth. For this ASDA ensure to offer
varied range of products and services within the marketplace with affordable prices as with
this ability to attain better profit credibility is attained with perfection. In this capability to
advance potential customers base is increases that has direct impact over business
productiveness.
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Industry rivalry: There are lot of market competitors of ASDA such as Tesco, Lidl, Marks and
Spencer, Debenhams and many others and they all worked to attain higher competitive
advantage for this provide better services with better quality (Yasmeen and et. al., 2020).
Thus this factor has higher impact over the business working and affects the market growth
and share as well. In this ASDA ensure to induce favourable changes that is for to fulfil the
market demand and requirement as with this only capability to attain customer attractiveness
is increases on continuous basis.
In this ASDA also ensure to advance diverse range of portfolio as with this not only market
attractiveness but ability to retain more of customers is increases that aid to advance profit
credibility and profit generation in balanced mode.
TASK 4
P4 Application of various models and theories to construct a strategic plan for UBER
Porters Generic Strategies
It reflects the strategy through which company make adequate changes within the working
aspects so that better competitive advantage is attained in timely frame and that is as explained
below as:
Cost leadership: It is an approach that is used by the business in order to maintain
leading position within the competitive marketplace and for this ASDA ensure to provide better
quality products and services with affordable prices so that a larger number of workers get
attracted in better manner.
Differentiation strategy: In support of this strategy organisation make adequate level of
changes and alteration as per the requirement and demand of marketplace (Zhao, Nie and Shao,
2017). In this ASDA make adequate level of modification within the offered product and
services on repetitive basis.
Focus strategy: It is a strategy that is used by the business in order to satisfy need and
demand of the marketplace and for this ASDA provide different services to its customer so that
they have attain long term sustainability as compare to its competitors.
Bowman's Strategic Clock
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In support of this model, ASDA induce strategic implication in business operation in
order to attain better position in aggressive marketplace. In this various strategic position is as
explained below as:
 Low Price and low added value: It is a strategic with this ability off business to advance
profit is increase and for this low price services are provided at wider volume.
 Low price: In support of this business has provide low price products and services in
order to gain higher benefit with this better profit margin is attained in timely frame.
 Hybrid: In this business offer low price product and services to attain higher profit
credibility as with this quality based outcome is attained with perfection.
 Differentiation: In this adequate solutions are provided through which larger customer
base is developed and with this profit margin also increases (Zolkiewski and et. al.,
2017).
 Focused differentiation: In this business make supportive changes to induce unique
level of product and services for this promotional strategy is implemented to attain
potential customer base.
 Risky high Margins: For this business reduce the difference in between offered price
and operational cost that aid to attain higher advantage in timely constrained.
 Monopoly Pricing: In this sustained monopoly is induce as with this product are offered
with sustained price in adverse of market competition.
 Loss of market share: It is a position through which unflavoured result is attained with
this customer base also get reduced and it has direct impact over decreased market share.
In relation to ASDA, lower value and higher risk margin is attained as with this ability to
induce long term market survival is increases in balanced mode. For this rate of profit generation
and market credibility both managed as per concern of profit generation. To induce better
business strategy business has maintained clear goals and objectives and that is as briefly define
below as:
Mission: ASDA worked for to aid customer about “save money and live better”.
Vision: To be the most honest and innovative cooperative through which wider range of
product and service is attained in reasonable price.
Objective: ASDA works with the objective to be the most trusted retailer and along with
this worked to help others in planet too.
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Strategy: For this ASDA worked with growth strategy as by combining both physical and
online as with this expanded range of brand identity is attained in better mode.
Tactics: In this ASDA make better infrastructural advancement and with this market
reach and global presence is attained in favoured manner.
For this inner capabilities and external working surround is attained and with this
working standards of business is achieved with adequateness and with this higher competitive
advantage in marketplace is attained in balanced mode. In this ability to attain long term success
and higher sustainability is accomplished with better manner.
CONCLUSION
It has been analysed from the above report that business strategy is being used in order to
gain higher competitive advancement and with this capability to induce sustain advantage and
future benefit both enhanced in prominent manner. In this external and internal capabilities is
attained with support of PESTLE and stakeholder analysis as it assists the business to attain
sustained strategies under which working capabilities and its credibility both get enhanced with
supportive manner. Further, SWOT analysis also aids organisation to generate appropriate
internal environment which helps to expand business in different regions.
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REFERENCES
Books and Journals
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