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Swot Analysis and Pestle Analysis of ASDA

   

Added on  2020-12-18

12 Pages3939 Words286 ViewsType: 286
Business DevelopmentLeadership ManagementPolitical Science
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Business Strategy
Swot Analysis and Pestle Analysis of ASDA_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Analysis, impact and influence of macro environment on a specific organisation and itsstrategies .....................................................................................................................................1TASK 2............................................................................................................................................3P2: Analysis of internal environment and capabilities of an organisation..................................3TASK 3............................................................................................................................................6P3: Applying Porter's Five Force Model to evaluate the competitive forces of an organisation6TASK 4............................................................................................................................................8P4: Application of theories, concepts and models, interpret and devise strategic planning foran organisation............................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
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INTRODUCTIONBusiness Strategy refers to different strategies used by an organisation in order toestablish the goals and objectives, increment of customers force, improve performance andstrengthening the market position. These strategies differ from organisation to organisation or theenvironment in which they are working (Brewster, 2017). For instance, a company working intwo different segments may establish different strategies in order to market and positionthemselves. In context of this report, a global company used is Asda Stores Limited. Asda is aBritish supermarket retailer store headquartered in West Yorkshire. A SWOT analysis, PESTLEAnalysis, Porter Five Force Model, VRIO Model and Ans off matrix will be covered in order tostate the various internal, external, micro and macro factors to implement the right strategy sothat the potential of the firm can be analysed.TASK 1P1: Analysis, impact and influence of macro environment on a specific organisation and itsstrategies Asda Stores Limited is a British Supermarket retailers. It was established in year 1949with the acquisition between supermarket owned by Asquith Family and Associated Dairiescompany of Yorkshire. It offers variety of products and services comprising financial and mobilephone providers. To understand the impact of macro environment factors on the workings ofAsda Stores limited, a PESTLE model will be implied. This model will help in studying all themacro environmental factor at one. PESTLE Analysis It is a framework used to analyse the various macro-environmental factors which caninfluence the workings of an organisation. This model is used for environment scanning that canhave an impact on the performance of an organisation. This model will be used to analysevarious factors, namely, Political, Economic, Social, Technological, Legal and EnvironmentalFactors (Cavusgil and et. al., 2014). These factors play a significant role in implementation of strategies in Asda Ltd. as theseare factors through which Asda Ltd is able to stand strong in the market. The emphasis of thesefactors on Asda can be seen like this:
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Political Factors: These are the factors which states the national and internationalregulations implemented on Asda Limited. These factors will help in analysis of political reformsbought up in the country. National, international and EU regulations plays a major role for Asdaas when Brexit was implemented, people lost their job and their spending power reduced andAsda also lost some of their potential customers. Also, United Kingdom enjoys a stablegovernment, that means the policies and regulations are not fluctuated too much, which is anopportunity for Asda as it will help them in implementation of their own policies for the long run(Chang, 2016). Economic Factors: It refers to economic policy of the country in which the organisationis working. Economic factors helps in establishment of various reforms in the organisation, like,labour policy, minimum wage, working hours and many more. Government as well is trying hardto take the control of Asda in order to establish the workings through which country can growmore is a threat to Asda as the government intervention will not give them freedom to workeffectively and efficiently.Social Factors: These factors refers to the social trends that can have an impact on theworkings of the organisation. One of the biggest social strategy applied by Asda is hiring oldstaff. Asda started hiring old people for the job as there are large number of retired peoplelooking for jobs, will help in increasing brand image of the company.Technological factors: These factors refers to the technological advancement created bythe company in order to get a competitive advantage in front of the competitors in the country. Itcan help in bringing innovation in the business and get profit maximisation out of it. Technologyadvancement of Asda includes Online portal and computer aided programs in order to grow aspeople are going more tech-friendly and it will help them in getting Asda products more fasterand easily through the portal. It will solves issues like when customers does not have time to goto store, then, they can simply order the product from Asda website. The threat of Social Factoris the imitation as any competitor can copy the idea and will take away the market share of Asda(Chen and Jermias, 2014). Legal factors: It refers to various legal elements surrounding the organisation. The legalforce comprising the legal factors of United Kingdom, includes the Planning Commission. Thisincludes laws that may results in delay of workings of an organisation. Asda keep a close eye onall the regulations of planning commission in order to be safeguard. These factors will help Asda
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