Business Report: Analysis of Asda's Internal and External Factors

This report provides a comprehensive analysis of Asda, examining both its internal and external factors. The analysis covers various aspects, including political, economic, social, technological, environmental, and legal factors impacting the company's operations. It delves into the strengths and weaknesses of Asda, along with identifying opportunities and potential threats. The report also considers the impact of external factors like Brexit and economic conditions on Asda's business. Furthermore, the report acknowledges the importance of customer preferences and technological advancements. The report also highlights the importance of good relations with suppliers and investors. The references include books and journals to support the analysis.

Introduction to Business
Studies

Internal and External Factors
 There are number of macro as well as micro
factor that impact on growth of firm such as
changing political situation, suppliers relation
etc. It plays important role in framing strategy as
well as marketing play for Asda.

CONTINUE
 Political
1. United Kingdom’s political situation is stable which gives chances to every
industry to grow with proper policy and procedure.
2. However, BREXIT has decrease European Tourism which are primary customer
of Asda and hence decreases its revenue. COVID lockdown again effect on firm’s
business as well as on financial stability.
 Economical
1. Britain is economically powerful country in Globe and it gives every business to
grow and expand. COVID and BREXIT has increase inflation and unemployment
percentage which negatively effect on purchasing power’s of buyer’s.

CONTINUE
 Social
1. British customer’s taste and trend repeatedly changes and hence it
become important for organisation to remain prepare for it. Asda’s
provide range of goods in its supermarket which help in supporting
buyer’s one stop shopping habit as well as improves financial condition
of company.
 Technological
1. UK technological advancement help industrial sector to increase
efficiency, quality and productivity of work and hence support growth
of different business.

CONTINE
 Environmental
1. Organisation support conserving environment and
invest in various types of corporate social
responsibility activities in country. It also stop using
plastic bags which improves good-will in front of
stakeholders.
 Legal
1. Firm has implemented various types of British law
related to business which help in gaining
confidence of British customers and improve good-
will of Asda in Britain.

CONTINUE
 Internal Factor
 Strength
1. Organisation has good reputation among British customer as it support one stop shopping
habit and provide range of quality product.
2. Asda has good relation with number of investor as well as supplier which help in expanding
business and increase profit share of firm.
 Weakness
1. Changing Taste and trend of customers has highly effecting on firm’s business as large
number of stock remains unsold.

CONTINUE
 Opportunities
1. Firm can improved its supply chain management as well as open new
stores in different part of United Kingdom which help in gaining large
number of customers and increase market position of firm in time of
globalization.
 Threat
1. Talented and skilled workforces are migrated from firm because of stress
of training and development programs which can impact on its work.

REFERENCES
 Books & Journals
 Bentham, J., 2018. Business and Economics in the News–
Sainsbury's and Asda-the decade's mega-merger. Teaching
Business & Economics.22.(3).pp.11-12.
 Woo, K.Y., 2018. Price convergence in the UK supermarket
chains.