PESTEL Analysis of ASDA: Impact of External Factors on an Organization

This report analyzes the impact of various external factors on ASDA, a British supermarket retailer, using PESTEL analysis. The report covers political, economic, social, technological, environmental, and legal factors that affect the growth and expansion of ASDA. It also discusses the importance of staying updated with technological changes and developing a waste management system to protect the environment. The report concludes by highlighting the significance of PESTEL analysis in examining external factors and ensuring steady growth in dynamic market conditions.

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Executive summary
Global business environment is that kind of environment that helps in identifying of
factors which impacts business at global level. Such environment consists of external and
internal factors. In this report PESTEL analysis is to be done. This analysis has been helping an
organization to cover those factors that helps in making an organization deal with external
factors like politics, economic, social, technological, legal and environmental. PESTEL analysis
majorly focuses over making an organization deal over issues relating with external factors as
they impact growth of an organization. In this file ASDA has been taken for PESTEL analysis.
From this report impact of various external factors is analysed over an organization like ASDA

Table of Contents
Executive summary .........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
PESTEL analysis....................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERNCES ..................................................................................................................................6

INTRODUCTION
PESTLE analysis is that kind of framework which is related to framework of macro-
environmental factor that is being used within an environment that makes strategic management
possible within an organization. Organization taken for PESTLE analysis is ASDA that is a
British supermarket retailer and has its headquarters in United Kingdom.
MAIN BODY
PESTEL analysis
PESTEL analysis is a tool that has been helping in making analysis of external factors of
an organization possible. As per this model covered that impacts growth of H&M in market.
Further they are explained as follows:
Political factor: These are the factors related to government intervention. As expansion of
business is to be done by an organization changes in policies of government is required to be
checked. ASDA can expand its business in Europe as tax policies does not change frequently that
gives them benefit and make growth of ASDA possible (Bhagra and Sharma, 2018).
Economical factor: In these factors various things related to economy has been covered like
inflation rate, unemployment, population and other elements that impacts economy of an
organization. Organization like ASDA deals with safer currencies like euros and dollars. This
help in gaining sustainability within the market. Another factor is price differences in different
countries due to different custom duty and tax rates which may become a hurdle in capturing
market share of any country.
Social factor: This factor includes trends, taste and needs of people living in that particular
society. ASDA is required to changes in preferences of customer and develop its products
accordingly. It improves organization's hold over various new market in which expansion has to
be done (Gandhi, 2017).
Technological factor: These are the factor that is related to technology which changes on daily
basis and an organization should keep updated about technological changes taking place. In order
to achieve this social media marketing can be used by ASDA that has increased feasibility for
customers (Gandhi, 2017).
Environmental factors: These are the factors that is related to environment and involves
elements required for making an organization protect environment. ASDA is required to develop

waste management system to dump its waste. This makes ASDA develop sense of
responsibility towards environment (Kasemsap, 2018).
Legal factors: legal factors include those rules and regulations that has been formed in order to
protect brand. ASDA is required to secure its patents in order to avoid copy right issue over its
product which can drastically impact goodwill of ASDA in market.
CONCLUSION
In the above file concept of PESTEL analysis has been done that is a tool to make sure
that external factor is being examined with its impact over an organization. Further in this file
ASDA is taken for PESTEL analysis. This help an organization to do expansion and help them
gain steady growth under dynamic market conditions.

REFERNCES
Books and journals
Bhagra, A. and Sharma, D.K., 2018. Changing paradigm of employability skills in the global
business world: A review. IUP Journal of Soft Skills. 12(2). pp.7-24.
Gandhi, L., 2017. Human resource challenges in VUCA and SMAC business
environment. ASBM Journal of Management. 10(1). p.1.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Keivanpour, S., Ait Kadi, D. and Mascle, C., 2017. End-of-life aircraft treatment in the context
of sustainable development, lean management, and global business. International
Journal of Sustainable Transportation. 11(5). pp.357-380.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and Technology
Conference" FarEastСon" (pp. 487-499). Springer, Cham.