Global Business Environment Analysis: Asda Store Ltd, BM461

This report provides a comprehensive analysis of the business environment of Asda Store Ltd. It begins with an introduction to the concept of business environment and its impact on a company's operations, followed by an analysis of Asda using the PESTEL framework. The main body of the report includes a SWOT analysis, identifying the strengths, weaknesses, opportunities, and threats faced by Asda. It also explores key drivers influencing the business environment, such as changes in consumer lifestyles and technological advancements. The report further examines the operational impact of these drivers, particularly on marketing and research & development functions, highlighting how these factors influence strategic decisions and market positioning. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for strategic planning and competitive advantage within the retail sector.

BM461 GLOBAL BUSINESS
ENVIRONMENT CW2

TABLE OF CONTENTS
INTRODUCTION .........................................................................................................................3
MAIN BODY ................................................................................................................................3
SWOT analysis-.........................................................................................................................3
Key Drivers- ..............................................................................................................................4
Operational Impact Analysis-.....................................................................................................4
CONCLUSION..............................................................................................................................5
REFERENCES...............................................................................................................................6

INTRODUCTION
This introduction will be about Business environment which means all the internal and
external factors that affect how the company functions including employees, customers,
management, supply and demand and business regulations (Sarsby, 2016). The chosen business
is “ASDA store Ltd” which is a British Supermarket and it will explain business environment
factors and key drivers of the changes through the PESTEL Analysis. While using the PESTLE
analysis the SWOT analysis would be completed and identifying the key drivers for the
environment and understanding the key drivers impacting the change upon the business
functional areas as Marketing and Research & development on business organisation.
MAIN BODY
SWOT analysis-
The aim of Asda Store is to study the strength, overcome with the weakness, use the
opportunities for the growth of their business and counter the threat so that they can compete
with other organisation. There are four strategies to be studied in this as-
Strength- The Asda store is having a huge range of products and provides various
services like Asda supermarket, Asda mobile, George clothing etc. and build a strong brand
name (Wu, 2020). For making the method of technologies easy they monitor the performance of
the store so that they can make easy delivery method as they are focusing towards the good
quality of products provided to the customers and invest their time and provide training to the
employees so that their skills would be developed and they effectively perform their target.
Weakness- Asda has a few global existence as compare with the competitors and having
a positioning problem. As the company not having a good quality of products and it is viewed
as a cheaper retailer because they are having a parent company “Walmart” by which a lack of
control towards activities and this may effect to the business and leave it weak as the company
is not flexible enough like other competitors.
Opportunities-There are lots of opportunities for the Asda to grow into the UK markets
having an high potential and offer their services in other sectors like travel, broadband services,
and merge with other international retailers that are focusing towards the growth of the food and
non-food markets and get a benefit of that environment. Asda can create a opportunity for new
environmental policies to drive the advantage of new technologies and increase the market share

in the product collection (ZHAO and LI, 2019) . The Asda having a existence in online market
as the customers are exploring more to shop online. Hence, updating the technologies the Asda
can see a lot of opportunities for the grow of their business.
Threat- The policies of the government keep changing and the company has to follow
the policies of particular country, its an huge threat for every business. The competition level in
the retail store market increasing and they face an challenge of consistent price cut of the
products so that they can compete in the market with low cost of products having high quality to
grab the customers towards their brand and maximise their market share. For a company the
new environment regulations or polices having an impact towards the existing products as the
changes in technologies can change internal and external environment.
Key Drivers-
As the company has around 136 retail stores in the different market which means the company
having a key driver of an economy scales having a wide network for the customer in UK .
The changes in the lifestyle of the peoples may also change the company workflow as the store
must provide the goods as according to the occurrence of the society as an key driver of social
factor.
Asda can create a opportunity of new technologies and increase the market share in the product
collection.
Operational Impact Analysis-
An impact on marketing and R&D functional area-
Technological factor- New technicology is very important as to work effectively and counter
the niche and inflation rate of the business. The new machines can reduce the cost of production
and increase the capabilities of supplying the goods to various countries (Van Minh and et.al.,
2017). While adopting new technologies a company can improve their work and perform in best
possible way and focus towards the growth as this helps to increase the revenue and income of
the company. As the company also focus towards the buyers as what they look in a product and
by having an idea of this the company can ensure about the establishment of new product. And
by using the new technologies the organisation can promote their product in best possible way.

The changes in the technologies having huge impact towards market as entire work depends on
both.
New technologies is benefited for the research and development function as it helps the
department to bring something innovative , creative, and introduced it to the company so that
the firm can take it as a opportunity and adopt the changes to improve the quality of work. For a
R&D functional area they are focusing to make a decision that make their firm unique and
different from other competitors (Alalwan and et.al ., 2017). As the manufacturing technology
create huge amount of waste for reducing the wastage the R&D functional area helps them and
research towards the technologies and take a appropriate decision and use the technology as per
the requirement and remove the defects.
Social factor- It is essential to consider while creating and utilizing the market strategies
because every business depends on the aspects of the external environment and the needs and
wants of the customers, the changes in their lifestyle of the society. This factor included the
population growth, age distribution , career attitude and so on and having an direct effect on
how an organisation can understand their customers and what they drive them.
The impact of research included the development of the policy, construct legislation and
so on. Through research an employee can develop critical thinking as well as an effective
communication skills that are globally beneficial (Thornton, and et.al ., 2017). The social factor
impacting on the ,marketing strategies which are designed to improve the overall organisation
overall mission not just to create the brand name.
In case of Asda store Ltd the retailers focus towards the growth by adopting new
technology and modify their productivity. So that they can create a unique identity towards their
competitors and increase the market share in UK. The retailers also take a decision regarding
the changes occurred in the lifestyle of the society and update their trends so that more
customers can focus towards their brand.
CONCLUSION
As per the report has been explained the business environment factors and key drivers
of the changes through the PESTEL Analysis of Asda store Ltd. And study the SWOT analysis
by identifying the key drivers from the internal and external environments. This report is also
concluded that how the key drivers of SWOT analysis having an impact towards the functional
areas such as Marketing and R&D.

REFERENCES
Books and journals
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Hasbi, H. and et.al., 2020. Effect of strength of the external environment and Islamic business
ethics on the performance of Islamic finance companies with intellectual capital
mediation. Management Science Letters. 11(3). pp.993-1002.
Mole, K., North, D. and Baldock, R., 2017. Which SMEs seek external support? Business
characteristics, management behaviour and external influences in a contingency
approach. Environment and Planning C: Politics and Space. 35(3). pp.476-499.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Wu, Y., 2020, February. The Marketing Strategies of IKEA in China Using Tools of PESTEL,
Five Forces Model and SWOT Analysis. In International Academic Conference
on Frontiers in Social Sciences and Management Innovation (IAFSM 2019)(pp.
348-355). Atlantis Press.
ZHAO, S.M. and LI, Y.Q., 2019. Innovative Development of “New Retail” Service in 5G Era.
China Business and Market, (9), p.2.