Business Environment Analysis Report: Asda's Strategies and Operations

This report provides a comprehensive analysis of Asda's business environment. It begins with an introduction to the business environment and its impact on organizations. The report then examines the relationship between different organizational functions, such as marketing, human resources, production, finance, and research and development, and their link to organizational objectives, using Asda as a case study. It then delves into the positive and negative impacts of the macro environment on business operations, employing PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors affecting Asda. Furthermore, the report includes internal and external analyses of Marks and Spencer, using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Finally, it explores the interrelation of strengths and weaknesses with external macro factors, providing a holistic view of Asda's strategic position within the market.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and its link with organisation
objectives ....................................................................................................................................1
TASK 3 ...........................................................................................................................................3
P4 Positive and negative impact of Macro environment on Business operations.......................3
TASK 4............................................................................................................................................6
P5 Internal and External analysis of Marks and Spencer............................................................6
P6 Interrelation of Strength and weakness with external Macro factors....................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business organisation can be framed but to refrain a business successfully, it is the
requirement of business resources. Factors of business environment are ever-changing and
dynamic. Hence, a business environment can be termed as entire institution, individuals along
with forces which influence the firm's sustainability and their entire performance standard. This
depend on the competitors, supplier, media, state, consumer group, market condition, trends,
technologies and other associations performing externally in the constitution of their business
environment (Agarwal, Grassl and Pahl, 2012). Business is obliged with whole manoeuvre of
relevant environment along with require negotiation in more obliged manner. It is significant for
every company to outline main business determinants of operations including consumer,
partners, worker etc. Such practices assist in managing competitive business environment along
with accurate enterprise revenues. Hence, the purpose of referred assignment is to analyse
discrete aspects as well as influence of Asda i.e. one of the largest global retailing segments
dealing with numerous markets. It will also assess nature, size and scope of numerous
organisation types. It will light over the major interlink between numerous objectives and
functions of organisation. With the help of these, it will also highlight different intrinsic and
extrinsic environments of business.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions and its link with organisation
objectives
This is fundamental for business enterprise to carry out certain objectives and aims of
company accordingly for the purpose of achieving them within certain time span. Hence, it is
paramount for firm to design plans and structure of organisation to determine objectives and
authentic targets conveniently (Aterido, Hallward-Driemeier, 2011). Hence, Asda is operating
their business in international market among approximate 165,000 staff member. It is also
knowns as a multinational supermarket chain which is dealing in various market segments such
as general merchandise, grocery and other financial services.
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Hence, it order to carry out numerous functions by Asda such as marketing and sales,
human resource management departments, accounting and finance, HRM departments etc.
Whole functions can help in attaining objectives of business by performing numerous activities
altogether in more paramount way, it is structure of enterprise are associated with firm's function
that is followed in Asda which are mentioned here:
Marketing Department: Marketing is one of crucial division which is maintained
through each and every company such as Asda to trade their products and service as well as
create proper consumer awareness. This department disseminate the brand message and
information delivering to the consumer in effectively through creating a proper interaction bridge
(Auzair, 2011). Thus, this is linked with numerous other department which can help the
organisation in accomplishing the basics of competitive advantages of organisation building
market sustainability among other competitor enterprises. Hence, this division through creating
brand awareness and promoting service, assist whole company in achieving business objectives
in more significant manner.
Human resource department: Managing personnel is as crucial within Asda as other
components because it can help company in attaining business objectives through performing the
basic activities. Human resource departments is liable for managing the requirements of
personnel along with satisfying their needs to get optimum outcome out of motivating employee
(Mahmood, and Hanafi, 2013). Thus, understanding its influence it can state that firm more
satisfied worker helps in performing designed programs in best manner leading to the programs
or business objectives attainment.
Production and Operations: This is another fundamental division of Asda i.e. operated
by company to manufacture services and managing the practices as per the requirement. It can
create coherent interlink between structure that can assist in delivering the set design
(Avramenko, 2012). Asda is rendering service production after assessing market in order to
create and supply best services quality to the consumer. Asda is popular for dealing value added
quality products in cost effective prices that has framed different recognition of organisation.
Thus, notion affirms the importance of management and operation relevance in context of
achieving business objective.
Accounting and Finance: One paramount function of Asda is developing interlink with
transactions of finance incurred in the company on regular basis. Major purpose of managing
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finance and accounting is to allocate the funds to different organisational department demand to
operate activities in systematic way (López-Gamero, Molina-Azorín and Claver-Cortés, 2011).
Thus, by availing maximum utilisation of financial asset, performing survey and reach as well as
creation of asset, Asda can meet their determined objectives and targets gaining more revenues.
Research and Development: It is significant to carry out proper markets and consumer
evaluation within the environment of business in order to outline the basic parameters of markets
(Adeoye, and Elegunde, 2012). This division assist in conducting these practices in more
significant manner as it can help in expanding and launching new strategy in market in more
significant manner which can structure outcome accordingly.
Therefore, Asda can assist in developing more effective competitive business
environment as company is obliged to achieve targetted market perspectives as well as can help
in maintaining distinct company activities properly. Hence, it provide different worth to such
practices assisting in accomplishment of competitive edge and enhance productivity in more
significantly.
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
Various determinants that exists in the business environment can influence the operations
of Asda needed to outline to control the practices. In this regard, business environment is
distinguished into two types i.e. intrinsic and extrinsic that influence of practice of business. But,
in relation to both of these environment, there is less control over the external factors of firm's
management. Both practices have positive and adverse influence on different practices and
operations of company (Bar-Isaac, and Shapiro, 2013). This can impact on rules and policies that
are conducted by administration. In relation of Asda, manager design different policies in regard
of reducing the negative influence of such activities over the operations of company. Policies are
crucial part that helps in attaining the negative and positive influence. Here are conducted
PESTLE analysis to demonstrate negative components of Asda discussed as beneath:
Political Factor: As per this, numerous distinct terms and policies have developed by UK
government which limit the operations of company. Also, different nations consist of different
policies and faces consequences of their political condition which is essential for Asda to
understand before executing programs in nation.
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 Positive Influence: This is assisting to conduct the operations of business fundamentally
along with containing free policies of trading that enable cost reduction while
outsourcing. After Brexit, numerous decision undertaken in country has influenced the
commercial sector so as Asda. Negative Influence: If the new terms and policies will be implied in Asda, organisation
will not be able to get required resource in minimum prices that can proven negative
influence for business (Burns, and Winter, 2011). Also, commercial activities and
relations among two and more nations can lead to several negative consequences while
operating business.
Economical Factor: According to this, several factors can influence the activities of
business such as growth, inflation or deflation rates of certain nation. Entire these determinants
consist of many perspective according to the country and Asda run operations of business in
numerous nations. In relation to this, the influence over sales and evolution of organisation is
fundamental while economy improve (Hamilton, and Webster, 2015). This is necessary for
manager of referred organisation to evaluate entire required changes that are needed in the
existing environment of firm. Positive Influence: Positive impact of economical determinants are vital such as in case
of inflation, funds flow will enlarge within the organisation. This can prove assisting in
terms of emphasising sales and benefits level within the company. Negative Influence: As per this, environment is dynamic which alter constantly that can
create various complications that is faced by Asda management of organisation.
Social Factor: Each organisation is demonstrating effective resource optimisation from
the environment, hence its is needed to return this as well (Boons, and Lüdeke-Freund, 2013).
The preferences and taste of customers vary within short span of time to manufacture the
services and products on the ground s of consumer demands in adequate manner. This can assist
in determining entire practices that are fundamental to conduct by the help of this. Positive Influence: This elements is assisting in delivering numerous business
opportunities through satiating demands of targetted people or society. By this,
organisation can enable emphasised and enhanced productivity within the enterprise. Negative Influence: Asda need to improve the services and product chain that are
structured in the form of destructive trends of society.
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Technological Factor: This is essential for Asda to adopt and utilise modified
technologies in the business organisation for emphasising better product quality, decreasing the
cost and time of operated activities (Commander, and Svejnar, 2011). The company operate their
operations of business by opting advanced technologies that can enable operations more
effectively. With the advanced technologies assistance, they can interact with their targetted
consumer at the competitive marketplace persuading them for making purchase decision
effectively. Positive Influence: If Asda will utilise more modified and advanced technologies, they
can reduce their cost of production and distribution and create a unique recognition of
organisation among their potential buyers and consumer. Negative Influence: More services and product cost invested on technologies ca be
harmful as well as the technology is modifying each and every day.
Legal Factors: This element include laws and legislation that are enacted by the UK
parliament to control and monitor the commercial activities incurring in country (Chow, and et.
al., 2011). Entire legal framework are assisting in safeguarding the interest and rights of
employee in firm. This is fundamental for Asda management to execute entire needed laws in
organisation to functions according to the circumstances. Positive Influence: Legal components can help worker in deliver protection and
fundamental individual rights at workplace along with safeguarding firm itself from any
legal procedure for future purpose. Hence, this components shapes the reputation of firm
within the market. Negative Influence: There are numerous times, when entire laws can be avoided by
company's management due to disinterest to adopt the certain laws that can lead whole
company to negative consequences such as crisis, siege etc (Halbert, and Ingulli, 2011).
Environmental Factor: This element is require due to the enlarging pollution issues,
scarcity of raw material, carbon footprints etc. In this, this is fundamental for organisation to
follow ethics and make more ecological operation conduction in regard of sustaining in market.
Its influence can be identified through observing or evaluating the surroundings of business. Positive Influence: In this ecological service can lead to positive influence on operations
of business shaping the portrayal of company. This can reduce the danger of social
disinterest and create proper branding of organisation. This is assisting to reduce red-
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tapism issues along with carrying out the operation of business in more significant
manner.
 Negative Influence: Asda need to adopt lead production procedure to reduce the waste
issues and emphasise over the environment factors in more significant manner.
TASK 4
P5 Internal and External analysis of Marks and Spencer
While studying intrinsic analysis, company need to conduct proper SWOT analysis on
the basis of PESTLE evaluation through conducting analysis of external factors of Asda (Cronan,
and et. al., 2011). SWOT evaluation of Asda is discussed in this report that can created
numerous practices discussed as beneath:
Strengths Weaknesses
 Wide product range offer wide range of
service consisting financial services.
 This has more than 1,40,000 worker
performing in more than 500 stores.
 Company perform CSR activities that
has created unique recognition.
 It is known for its marvellous
marketing campaigns.
 Limited international presence in
comparison to their other competitor.
 Selling price ability refrain them from
entering in few economies worldwide.
 Asda have less consumer loyalty and
dedication in comparison to their
competitor such as Sainsbury or Tesco.
 Product quality can claimed as not
better from Waitrose and other similar
brand in the company.
Opportunities Threats
 Expansion in existing or new region
such as jewelry, opticians etc.
 venturing into new economies and
grow in market such as India etc.
 Online and new media market render
numerous development opportunities in
the marketplace.
 Cost war within other retail brands in
UK market.
 Pressure of managing new costs.
 Ever modifying policies of numerous
central state.
 Huge market competition from smaller
and larger market retailers is major
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threat for organisation.
 Independent of growth online retailer or
supermarket is one of the biggest threat
of enterprise.
Hence, this can be claimed that numerous benefits are availed to organisation through
understanding business environment of enterprise which is leading to more benefits to the
company (Dahan, and et.al., 2010). Thus, on the presented SWOT analysis, it can be claimed that
PESTEL analysis is required for organisation to undertake that is discussed as below:
Components EXPLANATION
Political  Organisation is deliver constant altering environment in political
term.
 Creation of frequent modification and new policies are leading to
change.
 Policies linked with taxation.
Economical  It represent the rise in income among people of United Kingdom.
 Rendering opportunities of employment in society.
Social  Focus over constant changes among consumer.
 It build strong brand reputation by implementing guidelines.
Technological  Changes in technologies are rendering positive economical
influences.
 Organisation need to render several information and communication
solution.
Legal  It consist of packaging policies standards and are use for ecological
material.
Environmental  This is fundamental to aim on waste administration.
 Organise CSR activities for nature pollution management.
P6 Interrelation of Strength and weakness with external Macro factors
It can be notified that the business environment is developing several operations i.e.
influence outcomes of Asda. Enterprise is maintaining more strengths and weakness that are
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significant for outlines and considering the management (Fernando, 2011). M&S are leading to
maximum enterprise revenues from UK that enable more strong international recognition.
Through company has faced numerous issues and menace after Post-Brexit period that has
restrained the expansion of organisation in business region. Such extrinsic elements evaluate in
the mentioned report are leading to new alternations in Asda's market condition directing to
financial expenditure along with attainment of demands at the same duration.
Asda has very strong brand equity. Cause of this, firm has been able to develop such huge
market position and presence in the international marketplace. The organisation has highest
buying power and economic growth rate among individuals which is emerging each and every
day (Gebauer, Paiola and Edvardsson, 2010). The external elements are helping Asda in the
organisational investment presentation in minimum time period. They are functioning the income
enlargements for middle and lower class of people along with premium quality of service that
created numerous accessible expenditure. Asda is continuously increasing their revenues as well
as can deploy at open economies like India. These external components are helping Asda in
developing more efficient plan of expansion as well as creating significant business strategy
enable sustainability and development.
CONCLUSION
The mentioned report summon that business organisation can be framed but to refrain a
business successfully, it is the requirement of business resources. Factors of business
environment are ever-changing and dynamic. Basically, these are eliminated into two key
segments i.e. public and private organisations. Another essential and renown aspects of
companies is non-benefits enterprise, also called as voluntary organisations. This can be claimed
that market has dynamic nature, that deliver different types of benefits that are fundamental for
managing organisational operations which is functioned in systematic way. Whole functions can
help in attaining objectives of business by performing numerous activities altogether in more
paramount way. Business environment is distinguished into two types i.e. intrinsic and extrinsic
that influence of practice of business. While studying intrinsic analysis, company need to
conduct proper SWOT analysis on the basis of PESTLE evaluation through conducting analysis
of external factors.
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SWOT Analysis of Marks & Spencer. 2017. [Online].Available
through:<https://businessteacher.org.uk/swot/marks-and-spencer.php>.
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and Winter, 2011.Boons and Lüdeke-Freund, 2013Chow and et. al., 2011 Commander
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