Business Strategy: Impact of Macro Environment on Asda and Strategic Management Decisions

Business strategy.

Table of Contents
Introduction......................................................................................................................................4
Main body........................................................................................................................................4
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies....................................................................................4
Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................6
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................7
Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities..............................................................................................9
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.......................................................................................................................9
Devise appropriate strategies to improve competitive edge and market position based on the
outcomes...................................................................................................................................11
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organization..................................................................................................................12
Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................14
Conclusion ...................................................................................................................................15
References......................................................................................................................................16

Introduction
Business strategy refers to a plan or set of plans that tells the company about the actions
that must be taken by the company in order to survive in a particular market. It determines the
clear set of goals and objectives which are needed to be fulfilled by the organisation. It has a
close check on the products and services of the company through which they are going to enter
the market and are going compete against their competitors. It is important for the companies to
make sure that these business strategies are flexible, adaptable and the research of the company
is up to date so that they can modify the strategy according to the dynamic environment of the
industry (Bhaumik and et. al. 2017.). In context to Asda, it is a British multinational supermarket
chain headquartered in England. The company was founded in the year 1949 by Peter and Fred
Asquith. The company is also in the business of payment services, insurance and mobile phone
provider. In this report, internal as well as external factors affecting the company and its
management is given. Factors that can affect the workings of the company are provided in the
given below report.
Main body
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
Vision and mission: The vision of Asda is to become innovative and independent while
fostering values like honesty and providing their customers a wide variety of goods at reasonable
price. The mission is to achieve long term objectives of business by maintaining a sustainable
position in marketplace exceeding its customers expectation.
Objectives: The narrow objective is to provide goods and services at relatively low
prices compared to their competitors while maintaining the quality of products (Boryshkevych
2019.). The board objective is to make revenue more than their expenses so that the organisation
can be benefited in long run.
Strategy: Strategy are the choices that are made by the organisation so that the whole
organisation can work smoothly and efficiently. Strategy helps to attain vision and objectives by
planned action such as launch a new product effectively, methods to increase margins and grow
market share.

Any organisation has a considerable effect of macro environment on its functioning and
strategies which can be analysed by using aforementioned frameworks:
Pestle Analysis:The external factors that may have positive or negative effect on
organisation has been listed below:
Political factors: Local, national and international level regulations related to tax,
employment and consumers safety impact Asda in positive or negative way like increase of tax
rates or minimum wage will reduce profit. An another example of political influence is Brexit
which severely effect supplying chains of Asda resulting in overall instability of organisation.
Economic factors: The economic factor that may effect Asda include income level,
employment rate, availability of capital and inflation rates (Boyd, and et. al.2017.). Due to lock
down in 2020 Asda experience a heavy loss as a lot of people loss jobs which reduce their
shopping activity eventually low margin to chosen firm. Inflation lead to boost the production
cost which impact profit and in long term availability of capital for future goals of firm.
Socio-cultural factors: Social factors helps to know the needs of customers and thus
facilitate organisation to come up with product or service that help to earn high margin. One
example is the demand of organic or vegetarian products as some communities restrict
consumption of non-vegetarian food items and to address this issue Asda sells a huge number of
such products. The frequent changes in the changing trends and taste of consumers in cloths
impact in negative way but also offering a chance to use it as a opportunity but this is very hard
to do so.
Technological factors: Technology is now used in each and every stage of business
process and Asda also successfully implementing it in delivery, promotion and innovation of
new products (Chatterjee, 2017.). As technology change every now and then so to keep up with
it Asda need to be ready with funds which is not a problem as excess margin gained can be used
for this purpose. The future lies in self check out stores that operates 24 hours a day with
minimum hurdles and more facilities can affect firm positively if firm planned in this direction.
Legal factors: Some legal aspects help an organisation to gain an image in society as it is
considered ethical as all laws are followed by them like environment safety regulations but it
became a catastrophic problem when there is unnecessary intervention that slow the functioning
of organisation like long process in obtaining funds from grants and banks.