Business and Business Environment: PESTLE Analysis of Asda stores, Pentland group, and Macmillan cancer support

This report analyzes the impact of political, economic, social, technological, legal, and environmental factors on Asda stores, Pentland group, and Macmillan cancer support using PESTLE analysis.

Business and Business
Environment

Table of Contents
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART-1 ...........................................................................................................................................3
Overview of different types of organization................................................................................3
Background details of the organization.......................................................................................4
Products and Services..................................................................................................................5
Size and Scope of the Organization.............................................................................................5
Organizational and Legal Structure.............................................................................................7
Organizational chart of the organization......................................................................................8
PART 2..........................................................................................................................................10
Using PESTLE analysis to determine the various macro environmental factors and shows its
impact on the company..............................................................................................................10
2. SWOT analysis to identify the impact of the internal factors of PENTLAND Group and
interrelationships these have with the external factors previously discussed............................12
3. Critical reflection of key findings and evaluation on influencing the decision-making
process........................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment includes both external and internal factors of the business that are
employees, consumers needs and expectations, demand and supply chain, management
departments, clients, influential activities by the government, innovation under technology,
trends in market etc. These are some factors which affecting the operational processes of the
company. These factors also allows business to grab new opportunities, figure out new resources,
make better planning through analyse all these factors are increases productivity (Möller,
Nenonen and Storbacka, 2020).
In order to elaborate this report three organization are selected that are ASDA stores, it is
England based supermarket chain which is public listed company, Pentland group is chosen as
private company and voluntary organization is chosen as Macmillan caner support.
This report will cover types of organizations, their legal structure, size and scope, their product
and services which they are delivering, their vission, mission and objectives. Along with that,
difference between organization and inter relationship between different function, their
advantages and disadvantage. Further more in this report covers PESTLE analysis and SWOT
analysis, along with this decision-making process in the organization will cover.
MAIN BODY
PART-1
Overview of different types of organization
Asda stores ltd,, is UK based supermarket chain its headquarter is in Leeds and England.
The company was originated in 1949, when Asquith family merged their retail business with
Dairies company of Yorkshire. Expansion of the company started in mid 1970s to 80s from
Southern England and procured Allied carpets, 61 large Gateway supermarkets and other groups
such as MFI group (Sołoducho-Pelc and Sulich, 2020).
Pent land group is UK based company, that company was founded in 1932. It primarily
focused on the retail and wholesale business of the sports, outdoor and sport fashion. The group
majority shareholder of the JD sports, it operates 2420 stores across 19 territories. The group
controls Speedo, Berghaus, Canterbury of New Zealand, Edura, Boxfresh, Ellesse, Red or Dead,
SeaVees and Mitre.

Macmillan Cancer support is one of the largest British charities and provides specialist
health care, information and financial support to citizens that are affected by cancer. It can also
place campaigns for cancer and better care for cancer. Their main aim to enhances lifestyle of
citizens who has cancer in the UK. This organization comes to exist in 1911 by Douglas
Macmillan, due to death of his father from cancer. First its name is National Society for Cancer
Relief.
Background details of the organization
In early years, the Asquith family were belonged to butchers background from
Knottingley, Wakefield, West Yorkshire. First they expand their business to seven butcher shops
in nearby places. On the same duration in the 1920s, the group of West Riding dairy farmers
there are another two groups joined with that, and they are Stockdale family and Craven Dairies.
Later on, through acquisition company was created in 1949 that is Associated Dairies and Farms
Stores ltd. Asquith brothers merge their operations with Associated Dairies in 1965, as their
name made from here Asquith and Dairies.
Pentland group was family owned private business it was comes in exist in 1932, when
Berko and Minnie Rubin formed the Liverpool Shoe company. They start their operations from
selling footwear to retail shops in Britain. Liverpool shoe company was making huge variety of
footwear, from sports to formal, for men, ladies and for children. Boom comes for the company
in August 1981, when Pentland group acquires 55% share of Reebok, and after that company
were not stopped. They focused on to acquisition and make primary strategy to develop their
business (Nudurupati, Garengo and Bititci, 2021).
Macmillan cancer support was founded by young man Douglas Macmillan in 1911, he
saw pain and death of his father through hazardous disease that is cancer. So, he just made this
society for the cure and prevent from cancer and spreading awareness for cancer. Former it name
was National society for Cancer Relief, then it was changed in 1989 to Cancer Relief Macmillan
Fund, again it changed to Macmillan Cancer Relief and from April 2006 it named as Macmillan
Cancer support. Their main principles they are adopted “source of support” and a “force for
change.”

Products and Services
Asda is supermarket chain and in the supermarket most common product they are
delivering to their customers are food products. Asda is having 35,000 product lines and 60% of
it covers food and beverage products. Company is deal in various other lines as well, that
includes George clothing, Asda money and insurance, medicines and Asda mobile. These all
services and products are delivering by Asda to their customers along with fresh farm food and
meat. As the Asda also have petrol filling stations and depots in the UK boundaries (Bruijl, and
Gerard, 2018).
Pentland group is basically investing company that invest and acquire in companies
related to sports, outdoor and sports fashion. The company's highest stakes in JD-sports, through
JD sports company selling their sport products. They are generally selling accessories, apparels,
footwear and recreational products. Pentland is the parent company of Speedo, Berghaus,
Canterbury, Mitre and KangaROOS; Lacoste and Ted baker licensed brands for global footwear
and kickers as a licensed brand for the UK.
Macmillan cancer support is working to make better lifestyles of people who are
suffering from cancer, they are providing emotional, physical, practical and financial support.
Charity also raising fund through donations, funding and from support of government grants.
They also provide support health care professional with proper training and guidance with up-to-
date resources, tools, information and courses to help citizens which are affecting from cancer.
Group also runs public campaigns and generate partnerships and dominates decision policies
related to cancer in UK.
Size and Scope of the Organization
Asda is the second largest supermarket chain of the UK, it has huge number of 336 stores
with stock average of 35,000 products. Company have more than 145,000 dedicated employees
and huge customer base of having more than around 18 million people are shop from stores
every week. Apart from supermarket company offering loans and credit to citizens which are
making more opportunities for the company, with extra consumer base. Company having huge
scope for themselves, they are having more chances to grow in different sectors (Belás and et.al.,
2019).

Pentland group owns many companies, and they are working as global brand
management. They have more than 20,500 employees, managing child companies more than
2500 stores, and they have more than 2.9 billion euro sales They are operating their process
worldwide and huge reach to targeted customers. Day to day sports fashion market is getting
wider and company already invested in various companies and brands, there are huge scope for
company to grab new customers and new markets. Pentland's child companies are even owns
many other companies as well, which are overall beneficial for the Pentland group.
Macmillan cancer support is one of the leading charity organization, they have more than
five thousand employees in the employees they are diagnosed more than eight million people
which are affecting from cancer. They are raising funds and organizing events and campaigns
through which they are runs their practices. Organization have scope for growth, due to their
truthful services cancer patients are had trust on them, and they are still proving them right
(Krajnakova, Navickas and Kontautienė, 2018).
Vision, Mission and Objectives of Organization
Asda as the leading company in retail market of UK, so there main vision is to “make
products and service more affordable for customers.” They are trying to decrease product price
and making more affordable services to customers, they are just planning new strategies and
plans to decrease price. Their mission is “to be Britain's best-value retailer exceeding customer
need always.” Company want to be the top seller in the country with more reach of customer.
Their main objective is to reducing packing price which affects to customer, so they are trying to
sell farm products loose to customers (Betti and Sarens, 2020).
According to Pentland group 2032 is being centenary year for them, so they set vision
and mission is that, they help more than 100 million customer to live positive, sustainable and
active lifestyles. Their mission is to improve live of more than 1 million people. Their objective
is to become 'net zero' business, that means company reduces its emission. For that company just
focused on to take initiative on planting trees, restore forests and other planting process to reduce
emission.
Macmillan cancer support are delivering their service to patients from almost 60-70
years, there vision is to deliver services with holistic version. Holistic that comprises not only
focusing on particular disease but mental, emotional, social and financial supports. Their mission

is to focusing on to evolve and improve their functions, how they dominate decision and policies
in the UK in context of cancer (Črešnar and Jevšenak, 2019).
Organizational and Legal Structure
Asda organizational structure is hierarchical structure, there are lots of employees
working in different department of the company. Hierarchical structure of the organization
supports to communicate to different management which are working separately to each other. It
makes separated role for each employee, that make them focused on to their work and duty
which enhance profitability of the company. It is public limited company, which is also known
as Plc.
Pentland group have brand based organizational structure, company is the family of
brands. There are many brands so for smooth functioning, group focused on to brand based
decision. Company is private limited company and legal structure works as for private limited
functioning.
Macmillan cancer support is following flat organizational structure, there middle
management is not involved, organization is diversified into six different sections. Organization
having top most important management which makes decision and policies to run practices of
whole organization. Its legal structure is non-profit organization where all decisions are made on
the basis of NPO laws and legislations (Rimita, Hoon and Levasseur, 2020).
Organizational chart of the organization

Asda as leading supermarket chain, and they are following hierarchical structure under the
company. In the above image there is organizational structural is shown.
As company performs various functions to maximize profit and revenue, to grab more
customers. That are operations, human resources, distributions, marketing, finance and
accounting and customer services. Every function is interlinked to each other so there are some
points that are showing inter-relation under functions, that points are:-
 Human resource department performs functions to hire human capital and workforce in
the company. They trained, direct and guide new employees to perform their operational
role perfectly.
 Finance and accounting department make allocation of funds according to training and
recruiting practices of HR management.
 Operational process performs proper functions to maximize profit and marketing also
work to maximize sales, so overall result is maximization of profit only (Ślusarczyk and
UL HAQUE, 2019).
Advantages and Disadvantages of that functions
Functions are basically for smooths business processes, but there are many limitations of
these functions and there inter-relation as well.
So there are some advantages mention below:-

 Functions easily explain job role of each employee, which make more focused workforce
in the organization,
 Better processes are increases chance of developing in various departments in effective
manner.
 It makes easier for the management level to give command to respective management
and department.
There are some disadvantages mention below:-
 Employees are engaged within departmental goals, they don't know about organizational
goal. This leads to dissatisfied workforce.
 Not effective at all time, due to proper budget are not allocate every time. It creates
conflicts and chaos many times.
 Decision making process getting slower, due to higher authority making decision for each
department and it takes time and research critically.
Impact of these functions on the structure
These functions influence organizational structural, in positive and negative manner. It
smooths processes under business but creating conflicts as well. There are some points which are
in showing impact of these functions:-
 Makes conflicts and confusion under command chain, there are lots of employees in the
company in each department. Different department get different commands from the
management.
 It enhances profit for the company through making of better policies and effective
decisions.
 It creates healthy work environment, where each employee informed through their job
role.
 Employees are also get dissatisfied due to there preference is not valuable in decision-
making process.

PART 2
Using PESTLE analysis to determine the various macro environmental factors and shows its
impact on the company.
The PESTLE analysis in the context of the Pentland Group will help them to take any
strategic decisions in proper way, also identifies the positive and negative impact of them to the
organization.
Political factor- this factor includes some environmental regulations, taxation policies,
political stability of the country. It helps to determine the stage which is influence by the
government upon the organization. It may positive impact on the PENTLAND Group because
the country has government political stability which allows the authorities to create a strong
political structure as well as such institutions which help and support for the development of the
company (Castañeda-Ayarza and Godoi, 2021). For example- Government stability allows them
to expand their business internationally which create a trade relation between the countries. It
also attracts such investors which help to create a global image of the business. Such kind of
favourable policies allow the businesses to expand easily likewise it is in favourable in the
organization as well. Some desirable policies which help in the business growth and its
development.
Economic factor- the factor include the economic growth, inflation, unemployment
which have a direct influence to the company. This factor has a negative impact on the company
because by increasing the inflation rate which decreases the productivity of every company (de
Sousa and Castañeda-Ayarza, 2022). For example- The moderate inflation rate discourages the
organization to have a proper growth as well as negative work towards the decreasing the
consumer level as well. The average interest rate influence more organizations to take more
loans from bank with the average interest rates. These decreased employees spending level
which decreases the productivity of the company as well.
Social factor- this factor includes such change in the trends, consumer's health and diet
consciousness and growth rates. These are very helpful to the company to make better marketing
strategies which create a positive impact on the Pentland Group (Gerami and Hosseini, 2021).
For example- The higher portion of the young and adults creates a benefit for the company to
allow the bigger consumer base. The new trends including the increasing in the population who
are adapting the new sports wear which always encourages the people to increase the more

advantages for the company. Though to keep that in the mind the company has launched many
products which are related to the consumer's benefit and safety.
Technological factor- this factor includes the new innovations and development in the
country which directly influence the company's productivity. It may have a positive impact on
the company because the new technology up-gradations and innovations which help to develop
the efficiency of the business and its effectiveness. For example- The country have a very strong
infrastructure in the technology (Gharachorloo, Nahr and Nozari, 2021). It also includes the high
penetration of the internet which have a reflection on the educated populations which is very
beneficial for the company. By increasing and developing the social media platforms it is now
used to gathering many informations and customer data to increase the organization's
productivity. The business started using the more use of the social media in the purpose of the
recruitment as well this help to highlight the new changes which is increased by the trends in
respect to the social media. It helps to create the professional responsibilities as well which
create a better impact on it.
Legal factor- the factor includes the changes in legislations, laws and regulations of the
country which may have a negative impact on the Pentland Group. For example- Changes in the
certain laws with the strict regulations which are sometime not in the favour of the company.
Some employment law which can be in the favour of labours and workers, but create huge
impact on the company's productivity (Khiew and et.al., 2020). Changing in the health and safety
law of the employees decreases the productivity of the company because sometime the laws are
not always in the favour of the company but favourable for the employees. Any kind of breaches
in the organization might create the outcome which can lead into the punishment by the
authorities, it can be regarding employee or the business.
Environmental factor- this factor has a main concerned about the surrounding
environments which includes the environmental protection law, energy consumption law which
have a direct influence the country. It has a negative impact on the organization because sudden
change in these regulations deceased the production rate of the organization. For example- The
situation makes consumer more demanding and aware to use the recycling products which
reduced waste and protect to harm the environment of the country. This make company to be
more careful about their products which does not have related to any kind of waste. To survive

and retain its customers Pentland Group needs to develop more new strategies which help to
avoid these such circumstances which has to be faced by the company.
2. SWOT analysis to identify the impact of the internal factors of PENTLAND Group and
interrelationships these have with the external factors previously discussed.
The Pentland Group has a very strong market position. These SWOT analysis help to
know about the key strengths and weaknesses with the interrelationships they have a with the
discussed macro environmental factors:
Strengths-
 Strong market position- the company have a strong customers base which help to
maintain their market position.
 Innovative concept- it always focuses on the innovations on their continuous products
which help to enhance the customer satisfaction.
 Strong business model- organization knows about their competition which help to sell
products in the target markets.
Weaknesses-
 Lack of financial and technical resources- organization already facing the financial
crisis which creates the limitation of the company to expanding the business
internationally and run locally as well.
 Reduction of Mexican currency- the company is also facing the lot of devaluation of
the Mexican currency which has an outcome to the decreasing the financial stability
(Kolomiets, Grinchenkov and Vodenko, 2019).
 Lack of skill for operating in international market- it has a lack of experience which
result them not to understand the proper culture and operating business in the
international market.
Opportunities-
 Increasing the demand of the theme park- the company is obtaining the opportunity by
going in the international market in their entrainment industry where the demand of the
amusement park probably high.
 Higher internet penetration- as it is considering the higher penetration of the internet
which create chance for the organization to established more mutual digital platform.

 Increasing the use of the mobile phones- this creates a higher opportunity for the
business. It helps to create the maximum use of the mobile phones in the company which
reflects company's productivity (Leiber, Stensaker and Harvey, 2018).
Threats-
 Devaluation of the currency- organization is dealing with the several competitors in the
market which can be globally or domestic rivals which quickly change the trends which
decreases the currency (Zhou and et.al., 2019).
 Big domestic and international competition- the company is suffering from the lot of
the business competition, it has a different type of rivals which reflects its productivity.
 Decreasing financial stability- by increasing declining the Mexico currency the affects
the financial stability of the company which increases the low level of the production
costs.
Interrelationship with discussed external factor:
There are various ways in which the politics influences the business culture. On a very
large scale the government creates many laws which create weaknesses or threats to the company
which have a reflection on its productivity. If it creates a threat to the organization it may
disagree with the several laws which influences it. The threat can also increase by the economic
factors which includes the competitive pricing strategy, expenses and not minding the need of
the consumer's expectations. It heavily impacts when customers are not that much able to spend a
lot of money as to see the product pricing strategy which is increasing high and does not meet
with their expectations. It also affects the decisions in the organizations which creates the
competitive advantage. The opportunities create with the technologies as well as in the
innovative technology which help to increase the business credibility. Companies can not avoid
the external influences which affect them but it can be able to manage that. Customers are
counted in the external factor which creates a great influence on the operating organization over
globally. The company's internal factors that might be affected by which company decide to
operate. To better understands the goals and objectives of the organization both micro and macro
are necessary. Both these factors are creates an impact on each other which facilitate the changes
in an organization, to become more successful the company needs to utilize these factors into
each other.

3. Critical reflection of key findings and evaluation on influencing the decision-making process.
The decision-making process within the organization might impacted by the various
micro and macro environmental factors. Pentland Group is a British private company which
owns and invests in many retail and wholesale business which are related to the sports industry.
Thus, the internal and external factor both may influence the organization. The PESTLE analysis
shows that, it can be negative factors as well which influence the organization's overall
productivity. By overcoming this negativity the company can increase the sales and revenue
which help to overcome the country's factors which may reflected them.
The organization finds the weaknesses and threats which are affect the credibility of the
company. Pentland Group may further examine its various competitors which help to increase
more strengths in the competitive market. It also known that the company have various strengths
but also have weaknesses, which impacts the overall business in achieving the short term goals
and long term goals. The company is operating internationally as it is a multinational private
company so it may have a many opportunities to gain a business advantage. Organization is
operating its business to several countries as well but wanted to expand in many more countries
but have a threat of increasing the competition in that market.
The important factor is to adapted by the business as per the technological change in the
industry. Adapting many kinds of changes can lead to operate business successfully, but as if the
company has lack of skill to adapt any kind of change it can be take time for them to be more
successful. The company is leading globally so it should study first about the impact of the new
rules and regulations as well as new culture of the other country where it is going to locate next
time. More, the legal factors as well impact the organization as it not follow the laws which has
the government changes. Such environmental factors also reflects the impact which can be lead
by the environmental laws such as weather, pollution and global impact these are also impacts
the business globally. By understanding all these factors help the Pentland Group to create the
revenue and sale at the large scale.
CONCLUSION
From the above study, it has been concluded that to compete in the growth of the global
market there are the range of various types of businesses. The competition always depends upon
the business demands of the background details of the business which also depends upon the
size, supply, vision and mission of the organization. It included the legal structure as well which

reflects the company's performance in the competitive market. The study discussed on the
interrelated functions of the business with the advantages and disadvantages. Furthermore, the
study identify the impacts on the company by using the PESTLE analysis which is stated as a
great tool for the companies that can be created an advantage for the many purposes. It helps to
bring information about the possible impacts of the such six factors on a business. This makes
easier for the organization to resolve any problem which is caused by these factors. After doing
the SWOT analysis it helps to know the position of the brand and which helps to gain the
boundary over the competition. By identifying the strengths and some opportunities is like a
measure material to finding such ways to optimizing better chances for the market.

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