Business Environment Analysis: Internal and External Factors for ASDA

This report provides an analysis of ASDA's business environment, delving into both internal and external factors that influence its operations. The internal analysis examines aspects like workforce, corporate culture, staff, and financial aspects, highlighting their impact on production and potential conflicts. The external environment discussion covers the impact of technology, governmental policies, ethical considerations, and economic factors. The report emphasizes the importance of these factors for decision-making and overall business performance, particularly using PEST analysis to assess the impact of various external factors on ASDA. The conclusion stresses the significance of understanding both internal and external elements for effective strategic planning within the organization, emphasizing the need for adaptability in response to evolving environmental conditions.

Introduction
The term business environment is defined as the mixture of various elements for instance people and all
the various sources which are beyond the reach and power of company. Such sources majorly impact the
process of production. It can also be said that there are numerous factors which operates outside the
company such as financial, governmental, cultural, technological and many others.
ASDA And Its Environment
External Environment
The analyses of the external environment are very effective that is also very
important part for the organization. These analysis is done with the help of the
PEST analysis framework for the proper research is to analyses the impact of
the factors. In context to the Asda, analysis of the external analysis is given
below:
Political factor
Social Factor
Technological factor
Economic factor
How the company impact its context External Environment
The external environment plays a major role in the business, it might be shows the positive and sometimes shows the negative
impact on the business. The external environmental factor has the major factors that can't be resolves in the house or inside of
the company. The management must have make the plans to resolve these type of issues. There are many factors that affects
the business in reference to the Asda company are mentioned below:
Technology- It is one of the factor, that influencing the macro environment of the company. It is very important factor that
directly affects the external factors in which the company tries to adapt the several modification and advancement in the
production of the organization (Wu and et. al. 2019).
Governmental policies: These policies are made and amend by the government of the particular country, the policies are made
with some rules and regulation that must be followed by the company or any organization. These policies are basically made for
the control and regulate the supply of the company.
Ethical Factor: It is also an external factor in which the company maintains and works on the ethical issues which helps in builds
the relationship and network with the another company. The management and the administration must have avoided the
behaviour of employees that directly affects the positivity into the company.
Economy: It is a major part that affects the external environment in the business or organisation. The economic factor is deriving
the most important factor which can relate with the company.
Internal Factors
Internal Analysis- Internal factors are also major factors that may have impact or increment in the
production of the company. These are the factors vary on the in house of the company. The company have
will power to resolve in the surroundings in the wall of the company (Malkin and et. al. 2021). With doing this
analysis company have enjoyed the advantage of high production and resist to creates the conflicts in the
internal environmental of the company. These are grouped as a strength and weakness of the company; it is
varying on the different aspects of the organization. Some of these internal factors are mentioned below:
Workforce
Corporate Culture
Staff members
Supplier
Finance
References
• Cao, H. and Chen, Z., 2018. The driving effect of internal and external environment on green innovation strategy-The moderating role of top management’s environmental awareness. Nankai Business Review International, 10(3), pp.342-361.
• Doan, C.D., Tavernier, I., Okuro, P.K. and Dewettinck, K., 2018. Internal and external factors affecting the crystallization, gelation and applicability of wax-based oleogels in food industry. Innovative Food Science & Emerging Technologies, 45, pp.42-52.
• Hahn, W., 2019. Assurance of learning: The impact of business core course reviews on students’ scores on the comprehensive business exam for both internal and external comparative purposes. Journal of Education for Business, 94(1), pp.40-45.
• Kozak, A. and Pindelska, E., 2019. Spectroscopic analysis of the influence of various external factors on ethenzamide-glutaric acid (1: 1) cocrystal formation. European Journal of Pharmaceutical Sciences, 133, pp.59-68.
• Liyu, X., Wan, H. and Qian, Z., 2020, May. Prediction of development investment of power grid company based on internal and external factors. In 2020 3rd International Conference on Electron Device and Mechanical Engineering (ICEDME) (pp. 134-137). IEEE.
Conclusion From the above PPT poster, it emphasizes that the business consists of
two economic factor in which the internal and external factor in which the company have
influences with these factors that can also affects the decision making into the company. The
external factors include technology, environmental, legal, social, political and many more. Where
the internal factor includes economical, workforce, ethical issues and management etc. In this PPT
poster also concluded that the impact of business on external factors these are the factors that
directly affects the external environment in the business as positive and negative. Some of these
factors are governmental policies, technologies, economic growth and many others.