Business and Business Environment Report: ASDA Case Study Analysis

This report provides a comprehensive analysis of ASDA's business environment, examining various organizational types, including private, public, and voluntary sectors, along with their legal structures. It delves into the size and scope of ASDA, NHS, and Oxfam, highlighting their visions, missions, and operational scales. The report further explores the interrelationship between different organizational functions within ASDA, such as human resources, marketing, production, sales, and finance, and their impact on achieving business objectives. It also discusses ASDA's organizational structure, including function-based, geography-based, and product-based approaches. Furthermore, the report analyzes the positive and negative impacts of the macro environment on business operations, along with internal and external factors, to assess ASDA's strengths and weaknesses. The analysis includes how these strengths and weaknesses are interconnected with the external macro environment. Overall, the report offers a detailed overview of ASDA's business operations and its interaction with its environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types and...................................................................................................................1
purposes of organisations; public,..............................................................................................1
private and voluntary sectors and...............................................................................................1
legal structures...........................................................................................................................1
P2 Size and scope of a range of various types of organisations.................................................3
TASK 2............................................................................................................................................5
P3 Relationship between types of organisational function and its link with organisational
function.......................................................................................................................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impact of macro environment on business operations........................7
TASK 4............................................................................................................................................9
P5 Internal and external analysis to analyse strength and weakness..........................................9
P6 Strengths and weaknesses interrelated to external macro environment...............................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business includes activity which are promoted for the purpose of earning profits. There
are policies which has to be considered by manager of company and this helps them to crate
good image in market. It is essential at organisation has to take acre of changes happening in
business environment, this helps to perform actions in effective and efficient way. Internal as
well as external environment can be done in effective and efficient way. In case of change in
business environment association has to apply changes so this helps to achieve business
objectives in effective and efficient way (Asif, Garvare and Ahmad, 2011). This report is based
on ASDA, which is British supermarket retail store having headquarter in West Yorkshire, UK.
Its main parent company are Sainsbury, Walmart. In this report there is discussion about types
and purpose of organisation, size and scope of various organisations, interrelation between
organisational functional, analysis of internal as well as external factors to know strength and
weakness of association.
TASK 1
P1 Various types and purposes of organisations; public, private and voluntary sectors and legal
structures
These days there is much trend of business and this increases competition also in society.
There is use of factors which help them to perform business activities. There are possibilities that
due to alteration in business goals they have to change policies. There is difference in their goals
and objectives. This activities are performed to achieve profits and this helps to work according
to targets. Types of organisation with their purpose are as under-
PRIVATE SECTOR ORGANISATION
Private sector companies are the organisation which have emphasise on earning profits.
This is effective for change in making changes in business objectives. There are various stake
holders which help to achieve targets in efficient way (Bhaduri and Ha-Brookshire, 2011). They
accept changes very frequently and then use techniques which are important for making good
profits.
ASDA is the best example of private organisation. This is the company which has good
image in market, as their main focus is to satisfy demand of customers.
Purpose
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 There main aim is to satisfy demand of customer and use approaches which are
significant in performing activities as per demand of society. They provides financial assistance to economy.
PUBLIC SECTOR ORGANISATION
Public sector organisation are the organisation in which more that 51% is the share of
government. They don not accept changes so frequently, hence in this case changes are not
accepted so frequently (Cavusgil and et. al., 2014). There is use of policies which helps to
improve status of society. In this case there is no competitors because they are working to serve
society rather than earning profits.
NHS is the example of public company which serve medical facilities to society. There is
interference of government which help to assist to improve health related aspects for country.
This is big organisation which provides services in various parts of UK.
Purpose
 To maintain good health of society. Improves living of standards.
VOLUNTARY ORGANISATION
Voluntary association works for some specific cause through which people of society and
suffering such as old age homes. Voluntary association is framed by company to know what can
be done through which condition of people residing in society can be increase. These
organisations have service motive.
Oxfam is one of the famous name in voluntary sector. They have around 20 charitable
trust which are covered under this. They provide services free of cost. In voluntary associations
there are some people which collect funds and use it for society welfare.
Purpose
 Satisfaction of people when some issues are arising.
 These organisation provides base to live good life (Chetwood and et. al, 2014).
Legal Structure of Private Firm
Partnership- When business activities are performed by two or more that two person
sharing profits and cost in predetermined manner. In these firm there is an agreement which talks
about use of terms and conditions related to partnership. In this type of business liability of
partners are unlimited.
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Sole trader- This business is run by single person. There is problems related to funds, as
there are less operations through which sole trader can arise funds. He/ she has unlimited
liability, so in case of problem they has to sell their personal asset too (Crane and Matten, 2013).
Limited company- Company can be farmed with minimum seven people, so iot can
registered under companies act. There is use of factors which are efficient in knowing actual
activities through which they can establish business operations. Company has perpetual session
and this helps to work as per legal aspects.
Legal Structure of Public Organisation
Central government- This is the superior power which work to perform business
objectives in effective way. In society, there are changes taking place, so it is essential for them
to work as per alteration in society demand.
State government- After state government, state government is head of whole sate.
Problems which can be solved by local government are promoted to them. They are link between
central and local government.
Local government- Local government works at lower level i.e. district level. This is
effective for knowing problems faced by people and them convey it to state government, so
corrective measure can be taken.
P2 Size and scope of a range of various types of organisations
Business has different factors which has to be considered by manager to perform
operational goals and objectives. There are possibilities that due to use of factors they can make
image in effective way. Due to change in business goals they have to work according to need of
society, this is effective with change in business policies. Every organisation has its own criteria
to work. Size and scope of selected organisations are discussed as under-
ASDA
Vision- Vision of ASDA is to provide best services and make good customer value
(Gharajedaghi, 2011).
Mission- There mission is to increase sales which can be possible with use of resources which
are cheap and affordable.
Size of ASDA- ASDA is a MNC which has large scale operations in retail market. ASDA has
headquarter in West Yorkshire, UK. This association was established in 1949. This is the second
largest company which works to achieve business objectives in efficient way. Grocery, financial
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services, etc. are services provided by company (Gilboy , 2016). There is requirement of policies
which has to be considered with change in business objectives. There are 642 retail stores which
work in various different parts of country. Profits of company are more than £ 2 billion.
Scope of ASDA- They have variety of products which are taking place in business in performing
business goals. Managers of ASDA works to analyse what can be done through which
satisfaction can be given. ASDA's parent association is Sansbury. They deals in household and
grocery product. These days they serve society with some financial services.
NHS
Vision- NHS wants to make good image in society by providing best quality services and gives
best value.
Mission- Mission of NHS is to provide best quality services everyday to every person.
Size of NHS- NHS is the organisation which has services related to medical services. It is
essential that organisation has to perform operations which help to run business in effective and
efficient way. This is the association which has to perform business in various parts of world.
Under NHS 135 Specialist trust, 17 non specialist trust, 54 mental trust, 35 communities which
assist health facilities, 10 trust that provides ambulance services. Around 1.6 Lakh workers are
working in NHS to assist society. There are 691000 nurses are working to know what can be
done through which society need can be satisfied.
Scope of NHS- NHS has centres in various parts of company, facilities like basic health related
assistance, eyes related services, dental care, etc. They provide services in various parts of
country such as UK, England, Scotland, Ireland.
OXFAM
Vision- Oxfam wants to create equality to people residing in society. They give full right to
people which has to be used to public's upliftment (Kian Chong, Shafaghi and Leing Tan, 2011).
Mission- Oxfam wants to provide solution to the sufferings of people residing in society. They
have global reach in market which helps to satisfy more and more sufferers.
Size of Oxfam- Oxfam is the organisation under which 20 organisation are covered under those
organisation. They work to remove problems in association. Oxfam is situated in England. There
is use of policies which are effective for growth of country. Food relief and poverty eradication
are main components which help them to serve society and hence perform business dealings ijn
effective and efficient way.
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Scope of Oxfam- There are many volunteers working in Oxfam through which they can satisfy
society and improves living of standard (Li, and et. al., 2011). There are various associations
associated with them to know what has to be done through which they can manage changes
which are happening in country.
TASK 2
P3 Relationship between types of organisational function and its link with organisational
function
In ASDA there are many departments which works collectively to achieve profits. There
are chances that due to alteration in business policies, they have to work according to it. It is
essential that managers of department has good communication, so there will positive results out
of actions. Various departments are as under-
Human resource department- This is the department which works for the welfare and
upliftment of workers. It is essential that manager has to know what is demand and requirements
and then actions must be taken to motivate them. ASDA operates in various countries, so it is
essential that policies must be farmed for welfare of association.
Marketing department- Marketing department of ASDA works for enhancing sales. It is
effective for making promotional events for educating society. This helps to improves sales and
production of ASDA.
Production department- There are many approaches which are used by managers of
ASDA to make product available on time. It is essential that manager of ASDA has to adopt
approach which assist in readily availability of resources and satisfy demand of customer
(López-Gamero, Molina-Azorín and Claver-Cortés, 2011). Resources must be selected from
cheap and readily available components, through which sales and profits gets improved.
Sales department- Sales department sales product which are produced by association, in
order to make changes in business ethics. As per alteration in demand, manager has to modify
their products and then sales personnel has to sale what is produced by production department of
ASDA.
Finance department- Finance department is the association which deals with change in
business policies and this helps to perform actions in effective and efficient way. There is
requirement of funds to perform business actions. Finance department sets budget for production,
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purchase, promotion, etc. which has to be followed by various departments (Meiners, Ringleb
and Edwards, 2014).
Illustration 1: Organisational Structure
(Source: Organisational Structure, 2018)
ORGANISATIONAL STRUCTURE
ASDA has some particular structure which talks about working system. They are
discussed as under-
Function based- There are different functions which has to be performed by managers
and then provides help to performing operations by employees.
Geography based- ASDA deals in various parts of company, so it is essential to know
what can be done through which actions are performed in performing operations as per need of
particular region (Sekaran and Bougie, 2016).
Product based- ASDA is the organisation which serves grocery product. But as there is
difference in demand of people, so it is essential to deliver as per requirement. This makes
difference in actions as per product.
Consumer based- Consumer is the key of association. There are factors which has to be
considered by managers to work as per consumer demand. As per variation in age of consumer,
then there is difference in demand also, some manager of ASDA must kept in mind.
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TASK 3
P4 Positive and negative impact of macro environment on business operations
Macro environment is not directly related to company but they are not internal
component of ASDA. These factors affect business adversely because thee are not in control of
Managers of ASDA (Tayur, Ganeshan and Magazine, 2012). So management of ASDA has to
alter their policies. There are some negative as well as positive points of PESTLE which affects
business operations. PESTLE of ASDA is discussed as under-
Basis Description Positive Negative
Political Political factor means
interference off
government bodies in
business operations.
As there is change in
governmental policies,
then actions of
business gets
impacted.
With the interference
of government, ASDA
will perform actions in
effective and loyal
manner. This helps to
make good mage in
market.
Due to change
government rules and
regulations, operations
has to be changed by
mangers of ASDA,
this affects their
regular working of
company.
Economical Economic means
financial factor which
help to perform
business operations.
There are various
sources such as loans,
equity shares,
preferences shares, etc.
which help them to run
business effectively.
When managers of
ASDA raise funds
from external sources
then there is some
burden on managers
and hence there is
improvement in their
actions.
If position of company
is not good then this
affects image of
ASDA in industry.
Stakeholders are not
interested in dealing
with enterprise.
Social Social factor means
society for which
company is preparing
In society, there is use
of policies which is
efficient for achieving
Society is the place
which has to be
considered by
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goods and services.
This is mandatory to
follow so ASDA can
serve society as per
demand.
business goals. There
is requirement of
policies through which
you can perform
operations in desirable
manner.
managers and this
affects business
operations. Workers
have to change their
actions frequently.
Technological Technology is the
factor which is
required to be
followed by managers
of ASDA to reduce
time and wastage. This
makes actions
effective and efficient
as per current
environment.
Through updated
technology workers
are aware of latest
trend and this helps to
perform business
activities in efficient
way. Employees
satisfaction can be
possible with use of
technology.
There are some
negative aspects also
such as change in
technology means
increase in time as
well as cost of new
technique. There is
need of training to
work in efficient way,
this affects business
operations also.
Legal Legal factors means
laws related
component which are
efficient and effective
way. So it is effective
for knowing actual
actions.
Through legal actions
of bushiness. There is
use of policies which
can be done in
effective and efficient
way, it provides
assistance to worker of
ASDA and managers
also work under legal
norms.
As change in legal
laws manger of ASDA
has to alter their
policies which affects
business operations.
Employees has to be
knowledge about
change in law related
terms.
Environmental Environment means
place where business
operations take place.
This helps to control
actions of company
and this helps to
Due to change
environment managers
of ASDA has to select
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These days thee is use
of techniques through
which they business
operations may get
affected. Such as in
case of rain grocery
product may get
affected.
achieve targets
effectively.
source of storage and
transportation which
are costly and this
affects profits of
ASDA.
TASK 4
P5 Internal and external analysis to analyse strength and weakness
To analyse internal and external factors ASDA can use SWOT technique to work as per
market. Through SWOT managers can work according to knowledge about environment and
actions can be taken to improve strengths (Türetken and et. al., 2011, June).
STRENGTH
ASDA is the company which has good
financial assistance. They have good image in
market. They use attractive and effective
promotional events. CSR activities of ASDA is
significant for performing business roles and
responsibilities. They have good number of
employees.
WEAKNESSES
There outlets are of traditional types. This
makes customers less attractive. They have less
global touch as compared to other competitor's.
They do not consider to take feedback from
customers. They have competition with local
vendor's which does not give make them
effective in their operations.
OPPORTUNITIES
ASDA can expand their services in various
other sector such as jewellery, clothing,
medical sector, etc.
ADSA has to use techniques which help them
to grow their business in lower economy
carrying states.
THREAT
Retail sector is the area where competition is
very much. It is essential for ASDA to keep
their cost low so customer does not switch to
competitive brand. Random change in
governmental policies affects business
operations.
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P6 Strengths and weaknesses interrelated to external macro environment
There is use of SWOT and PESTLE to know areas where actions can be performed in
significant way. There is use of policies through which managers of ASDA can use factors which
help them to get positive results in form of production and profits (Vaiman, Sigurjonsson and
Davidsson, 2011).
Basis Strength Weaknesses
Political Through use of factors, this
helps to know about change in
business actions and this
makes actions effective.
People may have to work
according to business
environment, this may divert
top level management from
actual actions.
Economical Economic factor is essential
for company to work as per
change in business policies as
there is change in their roles
and responsibilities.
ASDA is the association which
has good financial status so
there are possibilities of use of
such resources in improper
way.
Social Social factors helps ASDA to
make policies which are
frequent for achieving business
goals and it provides
satisfaction to customer.
This factor affects growth of
ASDA. In case of hurdle in
actions, then this affects
business operations. In case
ASDA does not serve product
as per requirement , then this
makes actions in significant
way.
Technological Through use of latest
technology company can make
good image and this provides
more satisfaction to society.
All technological changes are
not possible to adopt by
ASDA, so they have to
approach company and this
helps them to use changes
which are significant for
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performing business
operations.
Legal Legal factor helps to perform
business operations in proper
manner. This helps to take
actions in significant manner.
As per change in legal policies
company has to appoint
personnel which as complete
knowledge about current factor
and this affects business
operations.
Environmental This is helpful as it provides
knowledge about how to
product, what to produce,
when to produce, etc. This
makes product fresh and as per
appropriate temperature.
Environment affects
production of company and
this says that company has to
use appropriate measures
which affects business
operations.
CONCLUSION
From the above discussion it is clear that business environment is one component which
has to be considered buy manager and this helps to run business in smooth and effective way.
There is difference in aims and objectives of company that make difference in their activities
also. Manager has to keep in mind goals and objectives through which they can achieve targets
and hence this helps to work according to business environment. SWOT and PESTLE are the
techniques through which company can know about their strengths and weaknesses. It is
responsibility of manager to work to improve strengths and reduce weakness. There is some
relations between internal and external factors of business through which goals can be
accomplished. In business every aspect has positive as well as negative factors, so manager has
to emphasise on positive results and corrective measures must be taken.
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Online
ASDA SWOT Analysis, USP & Competitors. 2018. [Online]. Available through:
<https://www.mbaskool.com/brandguide/lifestyle-and-retail/2040-asda.html >.
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