ASDA Business Environment: A Report on Internal and External Factors

This report delves into the internal and external factors that significantly influence ASDA, a British multinational supermarket chain offering groceries, merchandise, and financial services. External factors, such as changes in technology, laws, regulations, and taxation stemming from political shifts, are explored in terms of their impact on the company's brand image and profitability, highlighting the need for adaptation and compliance. Internal factors, including plans and policies, human resources, financial and marketing resources, company image, labor management, forecasting, and interpersonal relationships, are discussed in the context of management's ability to control and mitigate their effects on ASDA's profitability. The report emphasizes the importance of understanding both internal strengths and weaknesses and external opportunities and threats for strategic decision-making and sustained business success. Desklib provides access to similar solved assignments and study resources for students.

Introduction
This report provides detailed information about the internal
and external factors which affect the overall business. Internal
factors can impact the operations of the business in a positive
and negative manner on the other hand external factors are
those which cannot be controlled by the management of the
organisation. In this report a company called Asda has been
discussed. ASDA is a British multinational supermarket chain
and deals in various groceries, merchandise and financial
services.
ASDA
External Environment
External factors are the outside factors in which management do not have
any control and this can directly impact the brand image and profit of the
company. These factors are customers suppliers competitors public
economics politics culture changes , changes in technology etc.
How the company impact
its context External
Environment
Company can get infected by external factors and
environment because when any changes happens in the
technology that it becomes mandatory for the company
that they also upgrade the technology and use modern
technologies so that they can provide more quality and
affordable products to their customers. Along with this
if any kind of changes happens in the laws regulations
and taxation due to the political changes then company
has to follow them as well.
Internal Factors
Internal factors are those factors which remain under the control of
the company and management can reduce the impact of such
internal. The internal factors which impact on profitability of Asda
is plans and policies human resources financial and marketing
resources. Along with this there are other factors such as the image
and reputation of the company labour management forecasting and
interpersonal relationship with employees are the internal factors
which can impact the profitability of this organisation.
References
Chu, K.M., 2018. Mediating influences of attitude on
internal and external factors influencing consumers’
intention to purchase organic foods in
China. Sustainability. 10(12). p.4690.