Report on ASDA's Global Business Environment and Capabilities

This report provides an executive summary and comprehensive analysis of ASDA's global business environment. It begins with an introduction to the global business environment and then delves into a SWOT analysis, evaluating ASDA's strengths, weaknesses, opportunities, and threats. The report then examines the operational impact on ASDA, focusing on marketing and R&D departments. The marketing department's role in understanding customer requirements and the R&D department's role in product development are discussed. The analysis concludes that multinational organizations must expand their geographic reach to attract a wide range of customers. The report uses relevant references to support its findings.

Global Business Environment
ASDA

Executive Summary
Analysis of working capabilities of ASDA with the goal achieving capabilities is covered
in this report. With that evaluation of internal and external environment on the working
capabilities of ASDA has been done in this report with the analysis of external environment
through PESTLE analysis has also been analysed in the report.

TABLE OF CONTENTS
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BOODY................................................................................................................................4
SWOT Analysis...........................................................................................................................4
Operational Impact Analysis........................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Global business environment is the analysis of external sovereign country’s environment which
affects the working of a organization. ASDA is the chosen organization for the analysis in this
report; it is one of the largest retailers of the UK. Analysis of company’s working capabilities in
terms of working environment is done in this report.
MAIN BOODY
SWOT Analysis
The SWOT analysis of ASDA is done in this report which will provide a complete
understanding of its internal factors with the proper evaluation of the external factors which will
contribute in developing organizational planning for ASDA.
Strength
ASDA is having a strong geographic reach and because of which it is able to achieve a
high market share through which it has achieved a strong economic background and because of
which ASDA is able to achieve high level of brand awareness (Hassan and et.al, 2019). Through
this company is able to achieve high organizational customers count and also company’s reach in
other countries enables it to increase its reach in other geographic locations because of which it is
able to achieve high level of working capabilities. Due to high brand awareness and large
customer count ASDA is able to achieve high organizational sales and because of which it is able
to achieve high economical growth due to which it has increased the chances of goal
achievement.
Weakness
ASDA may be having its wide geographic reach but company is not able to extend its
reach into other locations because of which it is having limitations in its international market
share which has affected company’s economic growth. ASDA has increased its involvement in
social media marketing but since company is facing limitations in home delivery of products
because which it is having limitations in sales (Young and et.al, 2018). This has become more
crucial in the case of COVID-19 when customers are reducing their shopping through traditional
means and because of which ASDA is facing limitations in sales which is limited to physical
stores. Due to which organizational sales of the company has decreased and also chances of
brand switching at customer and employee side has increased.

Opportunity
Due to the negative impact of COVID-19 governments are providing special tax benefits
for boosting its economy and thus ASDA must use this special facility in such a way that
company is able to achieve high level of organizational sales. With that company must also tend
to sell its product through the means of internet by which it will be able to achieve high level of
organizational sales. Also with that company can increase its engagement in social media
marketing by which it will be able to achieve high level of organizational sales and thus it will be
able to achieve it targets. Increment in sales will enable organization to implement new customer
attracting schemes by which loyalty of existing customer can be increased and also new
customer can be attracted.
Threat
Market place is fill with some of the biggest competitors of the organization because of
which its market share is affected due to which brand switching can often be seen at customer
side because of which the economic growth of ASDA is affected (Laining, Usman and Syah,
2017). Customers are changing the ways of buying products and this can be seen in the case of
COVID-19 in which due to lock-down customer’s preference for buying products has changed
drastically which will make a negative impact on company’s sales. With that company also has
to provide training to employee as per new market conditions which will increase organizational
expenditures.
Operational Impact Analysis
ASDA provide products on the basis of psychological segmentation because of which it
provide products of the basis of customer requirements by which it is able to achieve high level
of organizational sales and thus increase the chances for goal achievement. Thus ASDA has to
make sure that it provides high level of products to its customer by which it will be able to
achieve high level of organizational sales. Thus the marketing department and R&D department
are responsible for develop organizational working structure in such a way that it is able to
attract wide range of products for high organizational sales.
Marketing
It has to make sure that company is able to provide product on the basis of customer
requirements, this can be achieved by marketing department of the ASDA because since

marketing department comes in direct contact with the customers because of which it is able to
provide products on the basis of customer requirement (Tan and Chintakananda, 2016).
Marketing department is responsible for maintaining efficient relations with organizational
departments because company has to work in such a way that it is able to provide products and
services on the basis of customer requirements by which customer’s engagement in
organizational working can be increased. This increased involvement of customer will reduce the
chances of brand switching resulting is allowing marketing department of ASDA to concentrate
on increasing its customer count by which high sales can be achieved.
R&D
R&D department is responsible for developing products on the basis of instructions
provided by marketing department, this is important because marketing department is
responsible for having direct contact with the customers and because of which products have to
be provided to the customers on that basis. Therefore, R&D has to develop a effective working
strategy in such a way that the developed product is having the advantages of previous developed
product and also having the advantages of newly developed product by which company will be
able to provide products on the basis of customer requirements (Thoumrungroje, Racela and
Chintakananda, 2019). Through this R&D make sure that the product is able to provide the best
in class and rare experience to its customers by which high sales can be achieved and also
company can implement premium pricing on its products because of its rarity. Thus through this
effective communication R&D will empower ASDA to improve its profit margin and by which it
will be able to achieve high goals.
CONCLUSION
From the analysis of this report it can be concluded that Multinational organizations have to
increase their geographic reach in such a way that they are able to attract wide range of
customers towards the organization by which organizational goals can be achieved.

REFERENCES
Books and journals
Hassan, S.M. and et.al, 2019. Hybrid APSO–spiral dynamic algorithms with application to
tuning of filtered PPI controller in a wirelessHART environment. Journal of Intelligent
& Fuzzy Systems. 37(1). pp.597-610.
Laining, A., Usman, U. and Syah, R., 2017. Nutritive value of copra cake meal fermented with
Rhizopus spp. and its use as a protein source in practical diets for rabbitfish (Siganus
javus). Journal of Applied Aquaculture. 29(3-4). pp.307-321.
Tan, B.R. and Chintakananda, A., 2016. The effects of home country political and legal
institutions on firms' geographic diversification performance. Global Strategy
Journal. 6(2). pp.105-123.
Thoumrungroje, A., Racela, O.C. and Chintakananda, A., 2019. Overcoming Knowledge
Stickiness in International Business Simulation Games. In The Palgrave Handbook of
Learning and Teaching International Business and Management (pp. 523-540). Palgrave
Macmillan, Cham.
Young, C.W. and et.al, 2018. Sustainable retailing–influencing consumer behaviour on food
waste. Business Strategy and the Environment. 27(1). pp.1-15.
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