Pestle Analysis of ASDA Supermarket

The assignment provides an in-depth analysis of the external environment facing ASDA Supermarket Ltd, using the PESTLE framework. It examines the company's business operations and identifies key factors that affect its performance. The report highlights the importance of Pestle analysis for organizations to understand their external environment and make informed decisions.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.Business environment of ASDA :...........................................................................................1
2.Government structure ..............................................................................................................1
3.legal factor of organisation.......................................................................................................2
CONCLUSION:...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Pestle analysis is define as the tool which is used to identify the external forces facing by
an organization. This letter stand for political, economic, social, technology, environmental and
legal. ASDA store Ltd (Lewis and et. al., 2017). Trading as ASDA , is a British super market
retailer. Headquartered in west united kingdom. The company was founded in 1949. In this
report PESTLE of ASDA describe below:
MAIN BODY
1.Business environment of ASDA :
 Political environment: this is define as the rules and regulations which affect the ASDA
. This is determine the extent in which government and non government policy may
impact ASDA . In this organisation national and international and directives affecting
employment, customer right ,taxes. ASDA benefits from a relatively stable political
environment in UK.
 Social environment: This focus on emerging trend. This help in understand customer
need and want in the market. In ASDA social changes like ageing population,health and
lifestyle are more important. its very helpful for this organisation to understand social
factor and its also develop its segmentation strategies.
 Economic environment: This focus on the the profitability of organisation. In this factor
included raw material cost and foreign exchange rate. ASDA need to consider all
this factor of pay level,raw material cost energy price etc.
2.Government structure
 Technological factor: This is related terotechnological innovation and development that
could affect market and industry. They focus on development only in digital technology
but also consider new method. This is very important for ASDA to be in the use of
technology and mobile apps along with click and collect delivery services are extremely
important .
 Environmental factors: this affect the surrounding environment and effect on ecological
aspect . This includes carbon,footprint and waste disposal. Pollution, carbon all this are
important for ASDA (Popescu, 2013). This organisation should be demonstrate that it is
an environmental friendly company.
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3.legal factor of organisation
 Legal factors: In this ASDA should understand the territories they operate. ASDA
should be aware about the changes in legislation and impact of thin on business
operations. This environment include the factor of consumer law and safety. ASDA must
be remain by the rules and regulations of the countries in which they operate their
business. ASDA can not pay any employee less than minimum wages in the UK (Savrul,
Incekara and Sener, 2014). In this ASDA can not dismiss an employee unfairly.
employee concerned can take ASDA to an employment tribunal.
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CONCLUSION:
From the above mention report it has been conclude that for every organisation it is very
important to use the PESTLE analysis. This analysis help in understand or identify the external
factors. For Company it is very important to use this analysis. In political factor Company
should analysis all the rules and regulation. Social environment help in understand needs and
wants of the customer. It very important for Company to use different new technology in the
organisation. In legal factor organisation should know about the all the legislation change .
Organisation should know about all the employment law.
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REFERENCES
Books and Journals
Lewis, H. and et. al., 2017.Design+ environment: a global guide to designing greener goods.
Routledge.
Popescu, G. H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice, (2), pp.170-176.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
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