Asda's Business in Practice: Analyzing Internal and External Factors

This presentation provides an analysis of Asda's business environment, focusing on the impact of internal and external factors. It utilizes the PESTLE framework to evaluate macro-environmental factors such as political, economic, social, technological, environmental, and legal aspects affecting Asda's operations, including the impact of Brexit, technological advancements, and environmental concerns. The presentation also examines internal factors like corporate culture, staff members, and finance, highlighting their influence on Asda's performance. Furthermore, it discusses how Asda impacts the external environment through technology adoption, contribution to the economy, and adherence to governmental policies. The analysis concludes that a comprehensive understanding of both internal and external forces is crucial for Asda's success and sustainability.

BUISNESS IN
PRACTICE

INTRODUCTION
Business entity is the organisation that is being created by an individual to conduct the
business with the aim of generating higher profits. There are several aspects which are impacting
the overall working of the organisation that are cultural aspects, technological aspects,
government laws and rules and financial considerations. The business environment can not
survive in the confinement and helps in understanding the opportunities and threats of the
company. Asda is the chosen organisation for this presentation, It is the supermarket chain which
is headquartered is in Leeds, England. The company is founded in 1949 and the PPT poster will
cover the impact of internal and external factors on company and also evaluate the impact of
organisation on external factors.
TASK
Explain how internal and external factors is impacting on the particular business.
External Factors
These are the circumstances, influences and the certain situations that are not in the
control of the organisation and the decision making. PESTLE analysis is the framework that is
being used for the strategic planning by evaluating the macro environmental factors that also
affects the business. In context to Asda, These factors are explained as follows:
 Political- These are the factors that is concerned with the political environment and the
stability. UK is having stable political environment which benefited the Asda but due to
huge impact of Brexit, high certainty where the company must think about the future
supply chain in responding t Brexit.
 Economic- It also includes the pay level, demand, supply and cost of credit. In context to
Asda, this factor affects the pricing polices due to the huge impact of Brexit, there is high
uncertainty in which people lost their jobs which results in decreasing the overall sale.
 Social- It is related to the social change such as lifestyle, ageing population etc. By
making an understanding, company can introduce their products and services which can
helps in developing the segmentation strategies.
 Technological- It includes the technological advancement and Asda is engage itself in
superfast broadband and mobile application by which they can collect an collect the large
customer base.

 Environmental- It involves the environmental concerns which affects the ecology. Asda
must demonstrate itself as the eco-friendly company in which they are using renewable
sources of energy and also reducing carbon footprints.
 Legal- It includes the laws and legal consideration which must be followed by the Asda
and they are making sure to follows the employment law and other regulation in order to
run business effectively.
Internal factors
These are the aspects which can be controlled by the organisation itself and having full
consideration of the managers and the leaders. It is grounded as the strength and weakness of the
company which also influences the business operations in the positive and negative manner. In
context to Asda, impact of these factors are explained as follows:
 Corporate culture- It is the ways in which all the functions is being performed and the
norms, beliefs and attitude of the company are visible and evident ans shared by the every
employees. When the culture is developed in an organisation, there are more chances by
which productivity and performance of the workers is enhanced. On other hand, negative
culture can results in staff turnover, less productivity of employees. Positive culture helps
the Asda to achieve the business goal.
 Staff members- These are the people who are working for the company. Th overall
performance of the company is dependent upon the quality of staff and their efficiency. A
good and efficient staff can take the better decisions that helps in creating the polices and
can also influence the overall performance of the employees. In context to Asda, They are
having well trained and high performance employees which bring better outcome form
the available results and results in accomplishing the organisational goal.
 Finance- Every organisation is working with the sufficient funds and resources an these
are the basis of every organisation for running the business venture. This also helps in
meeting the challenges and the requirements of the business. There must not be budget
constraints as it may get affects the growth and success of the company. Asda is having
sufficient funds and running capital in order to meet the demand of the customers.
Explain the different ways in which the business can impact on the external environment.
The business plays major role in the development of the business environment especially
in the external environment in consideration to impact and its influence. A business cannot

control them rather it can reach it and take the better decisions that s the successful remaining of
the business. In context to Asda, There are various factors which is having impact on the
external environment and these are explained as follows:
 Technology- It is the necessary factors which is having great influence in the macro
environment as technology helps in battling the competition by accessing the capabilities
of the business so that they can be the market leader in the industry. Asda has sufficient
technology as they are offering self checkout terminals to their customer which makes
easy shopping and also have the easy working of the business.
 Economy- It is the way which impacts the external environment as the businesses are the
major contributor to the growth of the economy. These contributes in the economic
development thereby making economy strong. Asda contribute to the economy of the UK
economy as fluctuations of foreign currency rates ad employment rates.
 Governmental policies- The polices are made by the government influence as they have
mould their operations as per the rules and regulation of government. Such policies helps
in making the decisions of Asda which helps the government in making these polices and
their working.

CONCLUSION
It is concluded from the above PPT poster that business environment comprasis of two
factors which includes the external and internal forces that influence the overall functioning of
the company. Further, It can be said that economic growth, technology and government polices
are the external factors which impact the business.

REFERENCES
Books and Journals