Analyzing SWOT and PESTLE of ASDA and Evaluation of Capabilities and Resources

UNIT 32: BUSINESS STRATEGY

Table of Contents
INTRODUCTION.....................................................................................................................................2
PART A......................................................................................................................................................2
Analyzing a detailed and considered SWOT and PESTLE of ASDA and evaluation of its capabilities
and resources...........................................................................................................................................2
Analyzing and critically examine competitive environment by using Porter’s five forces model............9
Identification of ASDA’s existing and potential competitive benefit....................................................10
Devising valid tactics and tactical objectives to achieve overall strategic objectives............................13
PART B....................................................................................................................................................13
Critically evaluate varied types of strategic directions accessible to ASDA..........................................13
Justify and suggest the most suitable growth tactics and platforms.......................................................15
Evaluating ways and means by which chosen strategies can be monitored to assure success................15
CONCLUSION........................................................................................................................................16
REFERENCES........................................................................................................................................17

INTRODUCTION
Business strategy defined as long term plan of action that design to achieve specific aims
or set objectives. It is a great map that allow management to take action and drive their attention
towards success. It helps organizations to carry out their strategic aims and get better success.
The current assignment will be based on ASDA, which falls under category of leading
supermarket chains in the United Kingdom. Its aim is to be the most faithful and trustable
retailers in the retail industry. Business objectives of this company is to source the best quality
items locally to offer customers fresh and healthy food items. The study will explain strategic
implementation of SWOT and PESTLE as well as other strategic models in the context of
supermarket. It will explain porter’s five forces and justify potential and current competitive
benefits. Furthermore, the report will clarify suitable strategies, types of direction, growth
platforms and tactics & ways to monitor success.
PART A
Analyzing a detailed and considered SWOT and PESTLE of ASDA and evaluation of its
capabilities and resources
External and internal analysis is considering as process of determining those elements
that may put direct impact on leadership and management practices of a company (Qiu and et.al.,
2021). It may contribute to evaluate key competencies, resources, threats and opportunities in
regard to organizations such as ASDA. In order to conduct both types of evaluation, PESTLE,
SWOT, Value chain and Stakeholder analysis as strategic concepts or models use below;
Pestle analysis-
This model is included in category of macro environmental analysis framework that help
analyzing external factors that are;
Political factor-
Changes related to any political factors such as taxes, trade, etc. may influence strategic
planning and practices of companies. For example, just because of COVID-19, in the UK tax rate
may increase more than 2019 that may put negative impact on trading related tactic of company
and drive their efforts to restructure everything accordingly.

Economic factor-
Pandemic raise unemployment rate worldwide, which may put positive influence on
ASDA strategy relate to selection and recruitment as it gives them chance to hire local people in
cheaper rate without conducing too much efforts for job promotion (PESTLE Analysis of The
Retail Industry, 2021). Just because of job requirement individual person may already apply
where they find vacancy.
Social factor-
In recent time certain changes happen in the context of this factor, due to emerging
market trend such as healthy lifestyle concerns among people and veganism (Wagner, Marcon
and Caulfield, 2020). These may put direct impact on ASDA inventory management strategy and
marketing practices negatively. It drives the efforts of store administration to develop new plan
and make all arrangement according to market trends or needs.
Technology factor-
Digital technology advancement may put positive impact on ASDA growth tactics in
term of driving attention of marketing and departments towards developing tactic to use advance
machines in term of technologies or tools such as social media for purpose of generate brand
awareness.
Legal factor-
Due to current economic development status and living standards of people that affect
due to COVID-19, in many nations government may take decision to pay half salary of workers
and guide companies to do so. It may put negative impact on ASDA strategies in regard to pay as
it may decrease its financial performance.
Environmental factor-
Government and customers concerns for environmental safety may put pressure on
ASDA to reduce its carbon foot print. As it influences its CSR strategies in positive manner by
driving focus of management towards developing new tactics that boost their performance that
outcomes in creation of sustainable business image in market.