Business and Business Environment Analysis Report: ASDA Case Study

This report provides a comprehensive analysis of ASDA's business environment, examining both internal and external factors that influence its operations. It begins with an introduction to the business environment and then delves into an analysis of ASDA, a British multinational company. The report covers the different organizational functions within ASDA, highlighting their roles and objectives. It then explores the positive and negative impacts of the macro environment, including political, economic, social, technological, environmental, and legal factors, on ASDA's operations. Furthermore, the report conducts a SWOT analysis to assess ASDA's strengths, weaknesses, opportunities, and threats. It also examines the relationship between macro and micro factors in the business environment. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for organizational success. The report references various books and journals to support its analysis.

Business and
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 and P2.....................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisation functions and its main objectives....................1
TASK 3............................................................................................................................................3
P4 Explain positive and negative impact of macro environment on business operations..........3
TASK 4............................................................................................................................................4
P5 External and internal analysis of chosen organisation...........................................................4
P6 Relationship between macro and micro factors of business environment.............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment defined as the analysis of both external and internal factors which
directly impact on business operations and its functions in proper manner. This will explained
the combined relation with different organisation and analyse various factors that will affect the
firm activities and functions (Gharajedaghi, 2011). All the required functions are affect the
enterprise profitability and increasing growth and success within an organisation. All the
important elements which influence various firm operations and its functions in effective
manner. ASDA store is the British multinational company which is establish in 1965 and its
headquarter is situated in Leeds, West Yorkshire. An organisation expand their market area for
targeting more customers towards effective products and services. The main motive of this
project is to explain various organisation scope, types and size which shows the actual position
of the company. Also highlight the SWOT and PESTLE analysis which analyse its business
objectives and targets in better way. Report will also address the interrelationship between micro
and strength and weaknesses.
TASK 1
P1 and P2
Covered in PPT
TASK 2
P3 Relationship between different organisation functions and its main objectives
ASDA is the multinational organisation which is based in United kingdom. The main
objective of this firm is to serve grocery products and services among large number of customers
and also build strong relation with other person (Hamilton and Webster, 2015). They also
develop innovative and creative goods and items which offer in the large market area. An
enterprise is mainly popular for their unique products and services which help in gaining
attention of buyers in proper manner. They focus on satisfying demand and requirements of
buyers which assist in increasing profitability and productivity within an organisation. The main
objective of the firm is earn maximum profit by attracting large number of customers towards
their goods and services.
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There are various department which assist in smooth running of business functions and
operations that are as follows:
 Finance- This is the main department which control and maintain all capital budgets and
its company funds. Firm will maintain their budgets according to the situation of firm
investment and revenue status. Finance is the main part of every organisation which assist
in adopting latest techniques and methods for increasing growth and success.
 Research advancement- It is necessary for an organisation is to find out whole market
before developing and creating effective products and services (Iskanius, Page and
Anbuudayasankar, 2010). ASDA analyse the information and data which are related to
the competitors and as per the investigation, company will develop their new goods and
gain maximum profit.
 Human resource management- It is the backbone of every organisation which control
and manage all required functions and activities within an enterprise in effective manner.
HR main aim is to hire those employees who have accurate skills and knowledge which
required for managing work (Craig and Campbell, 2012). They also analyse whole
behaviour of employees in proper manner towards work.
 Production department- This is the major division where production team will develop
and make innovative products according to the demand and wants of customers. Before
making goods, marketing team will identify actual need and desires of buyers than
produce creative products and services and serve in the large market place.
 Administration- This is that department which manage and maintain whole firm reports
and files that includes campaign, events, budgets, activities and functions which are
conducted in the organisation.
 Logistic department- Company will provide home delivery services of various types of
products to their desired customers in proper manner. The department can managed and
control by import and export team members which try to achieved all goals and
objectives which relates to delivering in appropriate manner. The main motive of this
department is to distribute various goods at right time at correct location to the right
consumers.
 Information technology- It is an important department for create awareness of company
products and services through online basis. The team members of division is work for
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post ads and video of firm products in internet which directly attracts long distance
people. Also domestic as well international customers desires to purchase these goods
and commodities (Klapper, Lewin and Delgado, 2011). This will also support in doing
marketing activities such as make campaign templates, events, etc. for gaining attention
of buyers towards their items and services in effective manner.
As per the above department all the different functions and activities of organisation will
conduct events in proper manner. These department works for gaining attention of customers
towards firm products and services. There are various staff members who works for achieving
desired goals and objectives of the company. All the divisions are get the required results and
outcomes by increasing profitability and productivity properly.
TASK 3
P4 Explain positive and negative impact of macro environment on business operations
An organisation focus on increasing development process fro trading marketing and firm
in the international level (Carroll and Shabana, 2010). It will influences the business operations
and its functions in straight manner. In the below, the positive and negative impact of macro
environment that are as follows:
Political factors- Government are made various laws and regulations which need to be
implemented in the organisation is must and also they should follow all the rules and norms. Positive impact- All the standard laws and regulations are equally executed in both small
and large organisation.
 Negative impact- There are few guidelines which should be made boundaries for trading
products in international level (Osterwalder and Pigneur, 2010).
Economical factors- The economic growth are is always fluctuating with the change in
political party and it will also influence on the business operations and its functions. Positive impact- The free exchange policy convince the existing corporation by
expanding the import and export actions.
 Negative impact- International price rate will especially impact the previous dealing of
trading products and services.
Social factors- It is important for the firm is to make innovative and creative items in the market
and analyse the latest trends which attract large number of customers towards company goods.
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 Positive impact- They are acquiring new market area when product is dynamic.
 Negative impact- When international products are enter in the country than ASDA goods
sale is reduces.
Technological factors- ASDA try to adopt latest techniques and methods for increasing growth
and success of business and also help in developing reputation in the large market place (Storey,
and Greene, 20). Positive impact- Advanced tools and techniques help in satisfying desired goals and
objectives.
 Negative impact- The difficult strategy can not grasp by employees within an
organisation.
Environmental factors- This is that factor which directly influence the surrounding of the
business locations in proper manner. Positive impact- The raw material assist in developing common assets (Zikmund and et.
al., 2013).
 Negative impact- There are limited assets which directly impact on activity of sections.
Legal factor- It is that factor which directly affect the company laws and regulations which are
made by manager and it is the duty of firm is to follow government made norms in effective
manner. Positive impact- This will help in protecting companies works and administration
activities and functions.
 Negative impact- Laws and rules are always change according to the government or
authorities for performing different functions.
TASK 4
P5 External and internal analysis of chosen organisation
ASDA is the fast growing enterprise which is British multinational and it is situated in
UK. Marketing strategy help in promoting different products and services in all over the world
(Teece, 2010). In an organisation, the managers are try to extend their company division in other
locations and also gain trust of customers whether it is domestic and international. SWOT
analysis of ASDA which are as under:
Strength Weakness
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 Satisfying the common requirements of
customers
 Offers qualitative products and items
 Located at prime and city areas where
target customers are survive Develop innovative and creative goods
 In this organisation, there are lack of
communication flow among employees
 Improper coordination between staff
members and employers
Opportunities
 Increasing range of modern and
advanced technology expand business area in other location
Threats
 Large number close substitutes
 Huge competitors such as ALDI,
Sainsbury etc.
P6 Relationship between macro and micro factors of business environment
Business environment refers to that factors which directly affect on its buyers and sale of
product in the large market place (Trkman, 2010). There are two factors that includes micro and
macro which impacted on business operations and its functions in effective manner. Micro
factors are controlled within an organisation and it is easily managed. On the other hand, macro
factors can not controlled by organisation so managers will make strategies to manage all
functions and activities. The relation between micro and macro factors in different way are as
follows: Political and legal factors- As per the legal and political forces will change the business
and it affect on managers for making effective policies, regulations and rules (Public
sector, 2017). This will also impact on suppliers and marketers which help in changing
rules and regulations according to the business situations and capabilities. Social and culture factors- These are affect on each other because latest trends and
fashions brands are impact on consumers behaviours according to the needs, wants and
taste can be changes. Technological factors- The technology is flexible and dynamic in nature which generate
income and attracting large number of customers by adopting latest techniques and
methods in effective manner (Ullah and Lai, 2011). By this various number buyers are
attracted towards their goods and services. Different techniques and methods works for
achieving desired goals and objectives in proper manner.
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 Economical factors- It is the large force company which directly affect on the
surrounding such as internal and external factors of an organisation (Wild, Wild and Han,
2014). Such factors includes interest rate, growth rate, exchange rate, inflation, income
generation and some other forces.
CONCLUSION
From the above mentioned report it can be concluded that business environment help in
analysing internal and external factors which directly or indirectly affect the business operations
and its functions in effective manner. ASDA is the fast growing enterprise which is British
multinational and it is situated in UK. There are two factors that includes micro and macro which
impacted on business operations and its functions in effective manner. The main objective of this
is to earn maximum profit for satisfying all desired needs and wants of the customers. There are
various department which assist in smooth running of business functions and operations. They
also develop innovative and creative goods and items which offer in the large market area. An
enterprise is mainly popular for their unique products and services which help in gaining
attention of buyers in proper manner. An organisation focus on increasing development process
fro trading marketing and firm in the international level.
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REFERENCES
Books and Journals
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Iskanius, P., Page, T. and Anbuudayasankar, S. P., 2010. The traditional industry sector in the
changing business environment–a case study of the Finnish steel product industry.
International Journal of Electronic Customer Relationship Management. 4(4). pp.395-
414.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Storey, D.J. and Greene, F. J., 2010. Small business and entrepreneurship. Financial
Times/Prentice Hall.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Ullah, A. and Lai, R., 2011. Modeling business goal for business/it alignment using requirements
engineering. Journal of Computer Information Systems. 51(3). pp.21-28.
Wild, J. J., Wild, K. L. and Han, J. C., 2014. International business. Pearson Education Limited.
Zikmund, W. G and et. al., 2013. Business research methods. Cengage Learning.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management
reviews. 12(1). pp.85-105.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Online
Public sector. 2017. [Online]. Available
through<http://www.geodomisi.com/en/index.php/clients/clients-public-sector>.
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