Detailed Analysis: Asda's Global Business Environment and PESTEL

This report presents an analysis of Asda's global business environment, focusing on the application of the PESTEL framework to assess the external factors impacting the company's international operations. The introduction defines the global business environment and its influence on businesses. The main body utilizes the PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors and their potential effects on Asda's operations. Political factors such as government regulations and employment opportunities are considered, alongside economic conditions and their impact on profit margins. Social factors related to consumer preferences and welfare initiatives are also discussed, as well as the positive impact of technological advancements and the importance of environmental sustainability. The report concludes by emphasizing the importance of considering these factors for successful international expansion and change management within Asda. The report references academic sources to support its analysis.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PESTEL Analysis........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment is basically a platform to businesses of different countries to
conduct the business activities and operations at the international or global level. A business who
runs its operations globally, then existing factors of global business environment always affects
to that business in both manners, positively and negatively (Cumming and Zahra, 2016). This
report discusses global business environment of Asda. Asda is the UK’s popular retail brand,
headquartered in West Yorkshire, England, United Kingdom. The PESTEL analytical tool has
been used below for Asda to know which factors highly affects in global market.
MAIN BODY
PESTEL Analysis
PESTEL analysis is very helpful tool or framework to different companies in market
place, and this tool can support to Asda’s upper management to identify such factors which can
highly affect its business operations when this business will expand its business operations
globally. PESTEL term mainly indicate six major external factors of a business called; political,
social, economic, legal, technological and environmental, in which these all factors have been
discussed below.
Political factors: Political factors will highly affect to business operations of Asda, when this
business will be expanded its operations internationally. Currently governments within most
countries like to gives licence to only those MNCs which are capable to generate great
employment opportunities. In this situation, upper management of company have to produce
great employment opportunities to locals where it wants to expand its business operations. These
factors will influence to company for fulfilling taxation obligation also in the global market
place.
Economic factors: Economic factors of a country always affects its existing businesses. For
example; currently the UK’s economic conditions are negatively affecting to business
environment of Asda, because this country currently has poor economic conditions (Ślusarczyk

and UL HAQUE, 2019). So that, if Asda will expand its business in that country which has an
effective economy, then it will be enabled to gain huge profit margins in that country.
Social factors: Social factors of a new country in the international market will affect to Asda for
working in the social welfare, because people within most countries like to consume products
and services from such businesses which has taken steps towards working in the social welfare.
Technological factors: Technological factors will positively affect to Asda in the international
market, because currently such digital technologies available in market place which can
contribute in improving productivity and performance of the company.
Environmental factors: These environmental factors can impact to upper management of Asda
for not conducting such practices in its business environment which can negatively affect to
natural environment.
Legal factors: Top-level management of Asda has highly required to follow all legal and ethical
considerations of that country in global market where it wants to expand its business operations
(Ermakova and et.al., 2016). Each country has its own laws, in which the company have to
follow these laws in global market place.
CONCLUSION
It can be concluded currently many factors exists in the international market which will
definitely affect Asda when it will expand its business operations internationally. These factors
can drive change management system of Asda as well, so the management need to consider them
properly in the terms of gaining positive outcomes in the future.

REFERENCES
Books & Journals
Cumming, D. J. and Zahra, S. A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management. 27(4). pp.687-692.
Ermakova, N. Y., and et.al., 2016. Business administration as a basis for development of global
entrepreneurship.
Ślusarczyk, B. and UL HAQUE, A., 2019. Public services for business environment: challenges
for implementing Industry 4.0 in Polish and Canadian logistic
enterprises. Administration & Public Management Review. (33).