The Business Environment

This report discusses the different types of organizations, their purpose, scope, and size. It explores the functions of organizations and their link to organizational objectives and structure. The report also includes a PESTEL analysis of ASDA, examining the impact of political, economic, social, technological, environmental, and legal factors on the company.

The Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
LO1..................................................................................................................................................4
P1................................................................................................................................................4
Public sector (National Health Service)...........................................................................................5
P2.....................................................................................................................................................7
ORGANIZATIONS SCOPE AND SIZE:...............................................................................7
P3.....................................................................................................................................................8
ORGANISATIONAL FUNCTIONS AND LINK TO ORGANISATIONAL
OBJECTIVES AND STRUCTURE........................................................................................8
P4...................................................................................................................................................10
PESTEL ANALYSIS OF ASDA............................................................................................10
P5...................................................................................................................................................11
SWOT ANALYSIS OF ASDA...............................................................................................11
P6...................................................................................................................................................12
STRENGTHS AND WEAKNESSES INTERRELATE WITH EXTERNAL MACRO
FACTORS OF ASDA.............................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Organization is main element of any management. Organization is nothing but a group or
people or individual who work together to achieve their individual as well as collective aim of
the people. ASDA is one of the largest retailer and superstore of the UK which was establish in
UK in 1999 in Britain. It is the second largest supermarket chain in UK and has 631 branches
across the UK with the capacity of 165000 employees. (Clement,. and Puranam, , 2018.)
In these report we understand the different types of organization, purpose, scope and size
of different organization. How organization is support the management to work smoothly. In this
report also consist of different functions of the business which will impact the business in longer
run. Also what are different strength and weakness of the company is having interrelation of
external factors of organization. This report also helps to understand the different roles and
responsibilities of the organization. It helps to understand the overall analysis factors with are
affecting the business.
MAIN BODY
LO1
P1.
Organization is a group of people who wants to associate together to achieve their aim.
Organization is a kind of entity like a company, institute, and association. It is structure
framework of roles and responsibilities which is done by many people who wants to achieve
their goals. Organization is backbone of the all the company or management because without
effective management cannot perfume its duties well.
Purpose - organization purpose to associate people in a such manner so they deliver the work,
also it help to create vision and mission of the company through various process like moving,
guiding, making strategies
Types of organization:
There mainly three types of organization such as public, private and voluntary organization.

Comparison of organizations and their legal structure:
Basis of
comparison
Private sector
organization (ASDA)
Public sector (National
Health Service)
Voluntary organization
(Macmillan Cancer
Support)
Definition This particular sector is
driven or controlled by
group of sector or
ASDA company to
make higher revenue.
This sector is controlled
by the nation’s central,
state and local
government.
It’s known as non profit
organization as they are
different from both of
the organization but it
collaborated with one of
them for specific time
period.
About
company
ASDA Company is the
largest supermarket of
the UK.
It is governed the UK
govt only to provides
best health services to the
public. It is very cost
effective.
It is the largest British
charity organization who
provides best cancer
treatment which is
founded in 1911.
Mission It is a business activity
and run by ASDA only.
Public sector follows the
rules and regulation of
the govt.
It’s mainly for the
welfare of the society. It
is works in partnership
with cancer research
centre and NCRI
Vision ASDA’s main vision to
become number one in
the supermarket channel
and establish its brand
across the world.
Their vision is to serve
health issues in UK in
affordable prices. They
only need to pay some
standard charges.
Earn profit is not their
objective. Their main
purpose to help the
public to understand
cancer through their
different awareness
program, And provide
cancer treatment to the
people who need the

services.
Operating
scope
ASDA Company have
321 superstores which
includes grocery stores,
general merchandise,
financial services which
providing lowest prices
in UK.
Public sectors arrange
capital through public
earning like taxs,bonds,
duties
As it collaborated with
public or private
organization they mainly
focused about the
welfare of the public and
provide charity to the
individuals.
Size ASDA has 165000
employees and 18
million consumers and
321 stores.
NHS has established in
1948 and largest health
organization.
It is founded in 1911 and
largest cancer specialist
and cancer relief
provider.
Legal
structure
They have hierarchical
structure which is driven
by different leaders and
departments.
( Egeberg, ., Gornitzka, .
and Trondal, ., 2016)
In public organization are
(LLC) limited liability
company and each and
every department have
separate committee
Their structure of non
profit organization is
association, community
interest company,
provident fund society
etc. It is for provide
awareness about the
cancer and its treatment
through various social or
offline.

P2
ORGANIZATIONS SCOPE AND SIZE:
ASDA Public sector (National
Health Service)
Voluntary organization
(Macmillan Cancer
Support)
Size ASDA is the largest super
market channel in the UK
which have 321 super stores
and 209 supermarkets in
more many different
countries like UK and US.
National Health Serice is
established by the Govt of
united kingdom to provide
best and affordable health
service to the normal
public of UK.
Macmillan Cancer
Support is almost 110
year old organization
which was created to
provided the best
cancer treatment
financially and
emotionally to the
person who needed the
most. They have approx
Scope: They are the developing
part of the nations as they
also add value to the
countries. They have more
opportunities for the society
as well. Currently they are
come up with low pricing
strategy which declare that
they have the lowest prices
and also they are currently
producing its own dairy
products and organic
products to its customers.
They also assure to protect
UK govt pay $197 billion
dollars to NHS to provide
best health services to the
people. They provide
service to each and every
person in UK without pay
single penny from their
pocket. This service is
available for the person
who is permanent resident
of UK.
They are maximizing
their scope by creating
awareness about the
unknown cancer and
also preserve them
from different disease.
They have approx 5000
employees including
nurses doctors etc.

the farmers and supporting
local.
Structure ASDA has so many
branches available so they
have many departments and
each department and
function in interlink with
each other. They make sure
to provide cost effective
products to the customers.
NHS maintained and run
by the Department of
health. This structure is
well created and running
organization in UK to
provide health services or
care to people. They have
5500 staff and more than
10 outlet in UK for
different issues.
Macmillan Cancer
Support function is run
in London only. They
have flat structure in
this organization as
there is no middle
management.
P3
ORGANISATIONAL FUNCTIONS AND LINK TO ORGANISATIONAL OBJECTIVES
AND STRUCTURE.
ASDA includes many functions to run the business like setting the goals, sales,
manufacturing, sales, research, marketing, research, finance, HR, operations, and customer
service. It also defines the different roles and relation of each function with each other.
Organization structure is made of the different elements and cycle of communication and
opinions.
Marketing- marketing is the major function of ASDA as it helps to identify the process how
company will work to get higher revenue. ASDA invest large amount of their revenue to
marketing and advertisement department. This department established the goals, planning
strategies, how strategies will implement, controlling and monitoring and supply the product to
its relevant customer. They are also responsible to provide a clear and powerful brand image in

customer mind. It also help to understand the methods through which company can find the
active participation to customers.( Ajibola, ., Alarape, . and Oyinade, 2020)
Finance- finance is ASDA’s main and core function as without money no one can operate the
business. Its financial function help the management to keep physical and electronic records of
fund or money received and pain by the company through various process or expenses and
incomes. This function helps to provide the budget to the suitable process and reducing the cost
effective process or work. It helps to develop the various statements, reports for tax purposes
and legal requirements for the ASDA Company. This information helps the senior management
to how the plan is going and reviewing the business strategy. Finance department also credible to
supervising the employee’s expenses and salaries. For salaries finance department need to take
account statutory deduction form tax.
Human Resources function- these function is liable to recruits, select and training and
development of the individuals with company vision mission procedure and legal regulations. It
helps to improve their potential to achieve the organization objectives. As ASDA is the largest
supermarket and has 1650000 people staff currently. To manage all the employees together its
very difficult. ASDA’s Human Resources create policies for the company and maintain the
balance in employees also taking follow up, make reports and give rewards to the capable one.
They maintain the relationship between internally and externally. It's also a medium through
worker can coordinate with their superiors.( Pontefract, 2016)
Operations- Operation is core part of ASDA as they produce its own products. It includes the
whole process from manufacturers to delivering the product to right customers. ASDA has large
no of suppliers and they need to maintain the relationship with them. While operation department
is responsible to fulfill all the product or service requirement of the suppliers as well customers
on time. It includes production of the product, design and price of the product. It is also
responsible for manufacturing the product with efficient use of resources. Production function
forecasts the sales or event with the help of past data.

P4
PESTEL ANALYSIS OF ASDA
There are so many elements in the macro-environment that will affect the decisions of the
managers of the organization. Like tax changes, trade barriers, new laws, demographic
fluctuation and government policy changes are all examples of macro change. To analyze these
factors in detail managers can use the PESTEL model. (Quinn, . and Thakor, ., 2019)
Political factors- Political factors determine the fact which has large impact on business
because of central or local government. If government changes the rules and regulations, it will
directly hit the micro environment. In this case ASDA need to understand the fact that what
products and services Govt. wants to manufacture and which are helpful to company in to get
subsidiary in tax. Apart from the tax benefits it includes the business support. Due to the political
decision changes with time it impact the cost of the product, health, education and infrastructure.
Due to these factors sometimes ASDA changes its prices very often.
Economic factors:- Economical factors include interest rates, taxation alteration, inflation,
economic growth, and exchange percentages. In case interest rates are increase that will impact
the investment of the each individual. If inflation increases than the people's income getting less
income in their hand they spend less. Higher notional income also increases the demand for the
products. Economic factors include the changes the current economy situation. As ASDA is
largest retailer in case the price of petrol increases it will impact the delivery of the goods as well
increase the prices.( Pontefract, 2016)
Social factors: Regular Changes in social trends can affect the demand for the products. And
also changes in requirement of people is also impact the sales of any firm. ASDA is one of the
largest retailers in UK, so that most population of the UK has been in old age.. This has
impacting the cost for firms who are committed to get pension payments for their employees
because their staff is living longer. ASDA have started to recruit older employees to tap into
this growing labour pool. The ageing population also has impact on demand: for example,

demand for sheltered accommodation and medicines have increased whereas demand for toys is
falling. PESTLE analysis involves these all factors such as cultural implications, the gender and
connected demographics, the social lifestyles, the domestic structures. All of these are need to
studied by companies to understand the market and the consumer behavior.( Liang, and Chen,
2020.)
Technology factor: As year is passing use of technology is ever growing, superfast broadband
and mobile apps along with click & collect delivery services are extremely important for ASDA.
All big supermarkets are frequent working on how to provide best services to the customers.
Environmental- Green economy, pollution, carbon footprint, hazardous waste, organic foods are
the very important part for any super marketer. They have to focus on good and hygienic food
and quality of the product because people are more concerned about the health and quality of the
foods. So to provide eco friendly products are in demand. ASDA Cmpany has modified its
practice in such manner that it also involve into different corporate social responsibility like
practices.
Legal factors: ASDA must have to accept the rules and regulations of countries to produce
the goods and services, If rules and regulation change of the company can cause the sales of the
country and well if ASDA want to open new branch in other country then due ti strict policies
and regulation it want be possible. ASDA cannot pay any employee less than the minimum
wage in the UK. Likewise, the company cannot dismiss an employee unfairly. Should it happen,
the employee concerned can take ASDA to an employment tribunal.
P5
SWOT ANALYSIS OF ASDA
ASDA is a leading super market grocery and merchandise retailer in the UK. ASDA
has 60% sales of retailers.

Strength- ASDA is a strong retail brand of UK. It has a significant value for money and provide
a wide range of products to all its store. ASDA primary focus is on protecting money and
keeping prices low. The company has a core competence pertaining to its use of information
technology to benefit its operations. It can see how individual products are performing store-by-
store at a glance. Where NHS has no competitors in the market as they are totally driven by the
govt only. As it is established in 1948 its has reputation in the market and continue to expanding
is business.
Weakness: ASDA weakness is its absence of smaller supermarkets and convenience stores.
Britain has ordered to take sharp restrictions on construction of marts in suburbs and rural
regions. In this situation all the ASDA stores includes in this category.
NHS do not able to deal with the increasing demand of its services due to population.
And govt need to focus on the management of the organization.
Opportunities - ASDA can expand its business projects into various new areas such as
pharmacy, jewelry and many more. ASDA can merge it's organization with other companies to
enhance its business or they can open new stores in other countries.
Where NHS need to create strategies to fulfill all the requirement and raise the profit.
Also welcome new investors.
Threats – With the changes in customer’s preference and requirements can impact the overall
revenue of the company. Due to so many retails are available in the market prices can also
impact. There are so many If Government keeps changing the policies that directly has huge
threat to the business. After this consistent price cut by their competitors would also impact the
business. ( Nurdin, , 2018)
In NHS biggest threat is their reputation is effecting by the work contracts and their staff
turnover is high so they need to take care of this .
P6
STRENGTHS AND WEAKNESSES INTERRELATE WITH EXTERNAL MACRO
FACTORS OF ASDA

Internal and external factors are the part of the organization. It helps the organization to give
idea about the strength and weakness of the company. This analysis help to understand what are
the new opportunities and threats are available for a company or business. Internal factors
evaluate the internal weakness of the company, what is the area to improve and Challenges
Company can take that will lead to achieve the overall goal of the company. Strengths and the
weakness are linked to the micro factors externally, because business can affect by internal or
external. Sometimes companies are not able to identify the actual factors which are affecting the
management decisions directly or indirectly. ASDA has very large and so many departments
and to manage all the function smoothly it is a difficult process. To identify the micro factors
organization can take the help of external factors. Strength and weakness are providing in depth
view of company's capability and deficiency. To analysis of the both of factors can give the help
organizations to achieve the desired result. These both of the factors are internal related with
each other and it can increase the risk of the external macro factors. Macro factors are evaluated
by the help of PESTEL. Political factors cause the organization in political ways as fluctuations
in government Trading policies, Employment Law and changes in Taxation can impact the
company.( Arnis, N and et.al ., 2016)
UK has been targeting the foreign direct investment. The business capitalists around the
world can have directly invested in many Industries which are emerged in the UK And can
impact the legislation, consumer rights of employment and taxes. Social factors may impact on
the business in negative way, all the business are liable to the CSR responsibility social good.
Organizations are liable to provide the social activities, employment activities. The community
of the UK is getting older rapidly which have an unfavorable effect on the labour market of the
country as well as influence the Healthcare industry. The living standard of the country is high.
Therefore, the ASDA will manufacture the high quality goods and services to the control the
demand of the consumers in the UK market and in the technological factors externally impact the
organization. UK based company ASDA is satisfy the need of the overseas consumers also
through online business, they does not have proper infrastructure to utilize super-fast broadband
and mobile app capabilities that can enable the consumers to accumulate the delivery services
quickly than ever. There are some other factors are also impacting the organization environment
externally like legal factors. It cause the company policies due to changes in the rules and

regulation related to the manufacturing, product demands on other country. As ASDA is very
well known and largest store in the UK they are trying to reach to the other countries as well.
CONCLUSION
With the help of the above report we can conclude that ASDA can improve their business
through various research and advertisement. These report also conclude the how the outside
factors have a huge impact on organization behaviour. The report explains the modern trend of
market and different ways to identify the strength and weakness of organization. The study
identifies different objectives of organization and tries to accomplish the demand of consumers
in the organization and evaluate the overall performance of organization with the help of
PESTEL and SWOT analysis. (Pontefract, 2016 )These tools to help to identify the factors that
affect the business internally and externally like political, economical, technological,
environmental and legal. This report determine the different different the strategies that
company can adopt to achieve the goals of the company and also help the business to sustain in
the market.

REFERENCES
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of governance. Edward Elgar Publishing.
Liang, L. and Chen, C., 2020. Organization, Function, and Development of the Mouse
Retinogeniculate Synapse. Annual Review of Vision Science, 6, pp.261-285.
Nurdin, D.M., 2018. Analysis of factors affecting business success of micro and small
enterprises: a study of food and beverage enterprises in Banda Aceh. Russian Journal of
Agricultural and Socio-Economic Sciences, 12(84), pp.113-117.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
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Pontefract, D., 2016. The Purpose Effect: Building Meaning in Yourself, Your Role and Your
Organization. Elevate Publishing.
Quinn, R.E. and Thakor, A.V., 2019. The Economics of Higher Purpose: Eight Counterintuitive
Steps for Creating a Purpose-driven Organization. Berrett-Koehler Publishers.
Raharjo, H. and Eriksson, H., 2017. Exploring differences between private and public
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Online
Scanning the Environment: PESTEL Analysis 2016 [ONLINE] available through
< https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>
ASDA SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP 2020
[ONLINE] available through <https://www.mbaskool.com/brandguide/lifestyle-and-retail/2040-
asda.html>