Strategic Planning of ASDA

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Pestle Analysis........................................................................................................................3
LO2..................................................................................................................................................4
P2 Swot Analysis ........................................................................................................................4
LO3..................................................................................................................................................5
P3 Porter's Five Force model.......................................................................................................5
LO4..................................................................................................................................................6
P4 Strategic planning of ASDA ..................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business is an institution that performed varieties of activities for exchange of good and
service to earn profit and achieve objectives of the business. Various strategies are prepared by
the company for achieve of its objectives of the company in effectively way. ASDA is a British
super marketer retailer company that provide financial services and mobiles phone. This report
covers the impacts and influences of macro environment on organisation and its strategies. It
analysis internal environment and capabilities of ASDA using appropriate framework. It
identifies the competitive position of ASDA in the market by using Porter's Five Forces. By
using various theories, model and concept assist in understanding and interpretation of strategic
decision for an organisation.
MAIN BODY
LO1
P1 Pestle Analysis
Pestle is a marketing tool that is used by the marketer to analysis and monitor various
factors of environment that affect functioning of organisation. This tool is used by the marketer
at the time of launch of new product or expansion of market share for effective achievement of
company goals.
Political factor: It describes the level and extend to which government interfere in the economy
of particular country. Company has to considered all such policies, rules and regulation of the
government before launching of new product or expanding business in new market
(Venkatachalam, 2018). As ASDA is operating its business around the globe it needs to consider
political factor of different countries. ASDA is operating its business UK which is facing
political instability due to withdrawal of UK from EU and UK was one of the most trading
partner of EU. So, this policy has adversely affected trade of ASDA, its functioning and profit
margin.
Economical Factor: This factor help in determination of performance of economy in the
country such as interest rate, exchange rate, unemployment rate, purchasing power of customer's
and its growth. UK's economy is facing situation of recession that have been advantage to the
ASDA as it sales product at lower cost. Thus, influencing customers to prefer product of its
company instead of competitor product and thereby increasing profit margin of the company.

Social Factor: It represents custom, beliefs, value and demographic structure of the population
in which company operates its business. Company had to effectively analysis and evaluate all
such factor before expansion or new launch of product as it help in identifying customer's needs
and the way they it can be satisfied (Putter, 2018). ASDA is effectively able to maintained and
increase its market share by understanding customer's demand for organic product and including
it in product blends.
Technological Factor: It refers to present level of technology, various technological innovation
and its research and development department in order to bring economy of scale for achievement
of organizational objectives. Through innovative technology the company is able to effectively
manage its resource and timely supply of raw material to reduce delay in offering products to
customers. Thus, ASDA is able to provide effective personalized services and convenient
shopping to its customer's with the help of innovative technology.
Legal Factor: They are similar to political factor but yet they differ such as employment laws,
health and safety law, consumer protection laws and discriminative laws made by government tin
order to protect consumer and employees of the organization. All companies have to abide by
legal rule in order to achieve objectives of business in ethical manner. ASDA has adhered to all
rule of government while operating its business thus have build strong brand image and
competitive position in the market.
Environmental Factor: This issue has recently forefront due to increasing scarcity of raw
material and awareness for environment conservation among consumers (Satalkina and Shpak,
2018). ASDA has to ensure various environmental factor while operating and manufacturing of
its product to maintain its brand image and increase its market share. ASDA by offering organic
product in its product range is able to protect environment and satisfy the needs of customer's in
effectively way.
LO2
P2 Swot Analysis
Swot analysis help in planning business strategies on the basis of its current position in
the market. It also helps in identifying the areas in which the company excel and where it needs
to improve itself at the same time protect company from various threats and avail various
opportunities. Thus, swot analysis is very essential in determination of the company position and
achievement of company objectives.