Business and the Business Environment: An Analysis of ASDA

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BUSINESS AND THE BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION....................................................................................................................2
LO1........................................................................................................................................... 3
DIFFERENT TYPES OF ORGANISATIONS, INCLUDING THEIR SIZE AND SCOPE....................................3
LO2.......................................................................................................................................... 9
THE INTERRELATIONSHIP OF THE VARIOUS FUNCTIONS WITHIN AN ORGANISATION AND THEY ARE
LINKED TO THE ORGANISATIONAL STRUCTURE.................................................................................9
LO3........................................................................................................................................ 14
CONTEMPORARY EXAMPLES TO DEMONSTRATE BOTH THE POSITIVE AND NEGATIVE INFLUENCE
/IMPACT THE MACRO ENVIRONMENT HAS ON BUSINESS OPERATIONS.........................................14
LO4........................................................................................................................................ 18
INTERNAL STRENGTHS AND WEAKNESSES OF ASDA AND THEIR INTERRELATIONSHIP WITH
EXTERNAL MACRO FACTORS...........................................................................................................18
CONCLUSION...................................................................................................................... 20
REFERENCES.......................................................................................................................21

INTRODUCTION
Business is work or some other activity as a part of our job. Business is a place where people
work with coordination to achieve business goals. Goals can be achieved by making and
selling goods and services in an effective manner. Business and Its Environment is an
important aspect of an organisation that helps to reform the productivity and performance of
the business. Business environment consists of all internal and external factors. In this report,
various types of organisations, their sizes and classifications of business environment have
highlighted. In addition, the legal structure and scope, as well as their stakeholders, are
included. In this assignment, learners will come to know about how to manage various
functions within the organisation and analysis of different functions by organisational charts.

LO1
DIFFERENT TYPES OF ORGANISATIONS, INCLUDING THEIR SIZE
AND SCOPE
Every organisation has different goals and objectives and all organisations are structured to
establish a good relationship between business activities and business members. There are 3
types of organisations described below–
Types of Organisations
PURPOSE AND LEGAL STRUCTURE
Private Organisations
Private organisations are those organisations which are run by individuals and companies.
Most of these organisations run the business to earn a profit. Private organisations are started
by own investments or funding from private sources. ASDA is a British supermarket retailer
and private company headquartered in Leeds, West Yorkshire. It is the second largest
company since 2019 in the UK. ASDA has started providing financial services and a mobile
phone provider also with the use of an existing EE network.
Legal Structure
Basically, ASDA follows the hierarchical structure because it has a large number of
employees working in several departments of the company. Therefore the store manager has
Types of
organization
Private
(ASDA)
Public
(Tesco)
Voluntary
(National Trust )

to wait for information until it doesn’t pass through many people before. There are many
levels in a hierarchical structure that is controlled by only one person (Eisenberg, 2017).
Public Organisation
Public organisations are those organisations which are not run by individuals or by any
company. These are government organisations and run by the government only. Tesco is a
British multinational groceries as well as general merchandise retailer which are
headquartered in England, UK. In 1960, Tesco diversified in other areas such as the retailing
of toys, petrol, telecoms, financial services, books, electronics, clothing, furniture, software
financial services and internet services.
Legal Structure-
There are 10 members in the Tesco board of directors. This is questionable that annoying
protocols could be generated within a store by these four layers of management. There could
be a poor effect on coordination and collaboration among managers. Therefore it is suggested

to reduce the layers of management to create a faster flow of information and more flexibility
(Bergmann et al., 2016).
Voluntary Organisation-
Voluntary organisations provide services to society. They are non- profit organisations. There
is less involvement of government. The main purpose of voluntary organisations is to
generate funds for charity purpose.
National Trust is one of the voluntary organisations. National trust enables a person with a
disability to live independently. It provides protection in case of death of their parents. It
evolves procedure for appointment of their guardians and trustees and facilitates equal
opportunities in society.
Legal Structure-
 Charitable trusts are governed by trust deeds.
 Anyone can apply for a wide range of grants.
 No members are there. Only volunteers work.
 There will be the result of donation for a specific purpose.
SIZE AND SCOPE OF DIFFERENT TYPES OF ORGANISATIONS
Every organisation has a different size and scope. The size of a private organisation could be
based on the total number of employees, yearly revenue generated and the market share. The

public organisation’s size can be analysed by their varieties of services that are offered to
their customers and the size of the elective organisations could be determined by offices and
trusts (Roberts, 2018).
Size and Scopes of Tesco
The Tesco brand appeared in 1924 for the first time and the first Tesco store was opened in
Burnt Oak, Edgware, and London in 1929. The first Tesco self-service store opened in 1948
in St Alban. Tesco mainly used strategies to build customer loyalty. Tesco focuses on long
term directions which help to fulfil stakeholder expectations and to meet the needs of
markets. In the 1970s, Tesco’s brand image was going negative although it was the largest
retailer in the United Kingdom by early 2005.
Size and Scopes of ASDA
The main motive of ASDA is ‘to be Britain’s best value retailer. Its purpose is just to make
goods and services more affordable for everyone. ASDA also follows a series of values such
as;
 Respect for every single person.
 Fight vigorously for excellence.
 Best services to customers.
ASDA is very specific in the employment of best candidates as per vacancies. It recruits
employees from the bigger pool and encourages them from different backgrounds and
cultures (Michalakeas et al., 2015). ASDA mainly focuses on equality of employees at the
workplace. Few outcomes came in a survey of 2013 that the opportunities are for everyone.

ASDA uses technology and implemented enterprise resource planning during the year 2010.
ASDA has created a website for customers so that they can shop online.

Size and Scopes of National Trust
The national trust may vary by region. National trusts are generally private non-profit
organisation. The first national trust in England is, ‘The National Trust for Places of Historic
Interest or Natural Beauty’ that was founded in the year of 1895. It is known in the UK as
National trust. The core ambition of National trust is to look for specific places for everyone
and forever. In the last 120 years, UK is serving the largest charity for historic properties. It is
also serving in the area of beautiful countryside. National Trust provides
Membership Benefits also that is starting from £63 for adults. Members can visit over 500
places in England, Wales & Northern Ireland and Free entry for children under age of 5.
THE STRUCTURE, SIZE AND SCOPE OF DIFFERENT ORGANISATIONS ARE LINKED TO THE
BUSINESS OBJECTIVES AND PRODUCTS AND SERVICES OFFERED BY THE ORGANISATION
ASDA is a British business firm with a large distribution channel. ASDA’s president & CEO
is Roger Burnley. ASDA’s Chief Customer Officer is Andy Murray. ASDA’s SVP retailer
operations are handled by Anthony Hemmerdinger. The main activity of ASDA for
promotion is their low price strategy to operate better income. ASDA’s is generating its
operating income in 638 million and around 175,000 employees are working over here. In
addition, ASDA has a very good facility which attracts the customer towards their services
that is customers can return their product if they are not happy with the product and the
amount will be refunded without any question.
ASDA mission, purpose and values
ASDA’s main mission is to be the best retailer with higher values in Britain by enlarging the
customers’ needs. ASDA’s purpose is to provide the goods and services to each and one of
them at a more reasonable price. ASDA has its values as well. They are-
 To respect each and every person
 To aspire for the excellence
 To serve the best to their customers.

Products and services
ASDA’s main products and Services are Grocery, general merchandise and financial
services. Apart from this, ASDA’s subsidiaries are Asda Mobile and Asda money (Roberts,
2018).
ASDA’s superstores
ASDA’s offers non-food items also in its superstores. Most of the superstores have dining,
petrol filling station and refreshment facilities for shoppers by which they add values to the
customers. There are customer cafes like McDonald’s franchise restaurants etc. In October
2003, ASDA launched ‘ASDA LIVING'. ASDA operated mobile phone network also which
is called ASDA Mobile in partnership with EE.
Distribution
Now ASDA has 25 distribution warehouses all covering the UK. There are warehouses for
chilled food, clothing, and ambient products like carbonated drinks and cereals.
Employee Relations
ASDA currently has 180,000 employees. They work with full-time and part-time positions in
the stores. ASDA is appearing Second place in ‘The Times’ newspaper list as a "Best
Companies to work for". ASDA offers a discount of 10% on most of the items to their staffs
as well.
Organisational structure and culture
In the management system, an organisational structure and culture are integrated that creates
a smooth operating organisation. However, an organised structure and strong culture play an
active role in the development of employees' Personality and the company’s growth and the
company's performances are completely dependent upon each and every employee working
in the organisation (Mohelska et al., 2015.).

LO2
THE INTERRELATIONSHIP OF THE VARIOUS FUNCTIONS
WITHIN AN ORGANISATION AND THEY ARE LINKED TO THE
ORGANISATIONAL STRUCTURE
Functional areas of Business operation
The ASDA is one of the UK’s leading supermarket chains. There are few distinct functions
are described below -
Human Resource Function
ASDA’s HR strategy is based on employees’ satisfaction, retention and succession.
Furthermore, The HR system of ASDA provides proper training to its employees as it
believes in house succession. For that ASDA is playing a great role in the encouragement of

the staffs so that employees can take an active part in work meetings and they could express
and discuss their views.
Distribution Function
ASDA is very focused on the decision-making process at the time of the whole distribution
process to maintain consistent product availability for customers because any kind of
breakdown in a distribution process affects the customer services and this situation could
demotivate the employees as they are the people receiving consumer complaints (Seelig, et
al., 2017).
Marketing Function
ASDA doesn’t make any compromises with proper training of employees. As ASDA has
faced many changes with consumer demands in competitive market ASDA decided to focus
on proper training of employees for better marketing. Also, ASDA started following
marketing and promotion on the dual aspects of quality at the right price to maintain a great
position in a market place (Olson et al., 2018).
Customer Services Function
ASDA is one of the companies which provide the proper customer care training to their staffs
to maintain a good relationship with customers. Somehow, customer services are directly
linked with the reaction of employees. In call centres, consumers are able to judge the
services instantly by the perception of the operator. At first, the operator should be excellent
in explanation and should have adequate knowledge of the product or service with proper and
polite reaction. It determines the satisfaction of the customer and loyalty towards the
business.
Production Function
ASDA has a legal contract with suppliers. Therefore, ASDA is having good communication
with suppliers for safety purpose and updates all the stock levels to them so that suppliers
could have a lead time for production and for delivery. ASDA’s production system is briefly
planned. They have a tracking system which helps to deliver the product on time and
payment issues can be solved (Martensen and Mouritsen, 2017).