Evaluating ASDA's Environment: Internal and External Factor Analysis

This report provides an analysis of ASDA's business environment, focusing on both external and internal factors that influence its operations. The external environment is examined using the PESTLE framework, considering political, economic, social, technological, environmental, and legal aspects. Internal factors such as employees, finance, and organizational culture are also discussed, highlighting their impact on ASDA's performance. The report further explores how ASDA's activities can affect the external environment, emphasizing the interconnectedness of business and its surroundings. This analysis aims to provide a comprehensive understanding of the factors shaping ASDA's business landscape.

Introduction
Business organisations have to interact and transact with
the environment. Both the word business and environment
are interrelated and mutually independent. Business
environment refers to those aspects of the surroundings
which influence the operations of the business
organisations and determine its effectiveness. The
environment is always changing and uncertain. It is
dynamic in nature because it keeps changing in terns of
technology innovation and improvement, change in
consumer preferences, entry of new competitors, change
in market trends.
ASDA and its Environment
External Environment
There are various internal and external factors which can impact the
business organisations. For analysing the external factors for ASDA
the pestle analysis is used below:
Pestle- it is the tool used to analyse the external factors which can
affect the business organisations activities. Below are the factors and
its impact on the business is explained in context of ASDA company
• Political
• Economic
• Social
• Technological
• Environmental
• Legal
Internal Factors
These are the factors which are within the organisation
and can affect the business operations if not functioned
properly. Here below the internal factors are discussed that
can affect the company ASDA.
• Employees
• Finance
• Organisation culture
References
Nisula, K. and Pekkola, S., 2018. How to move away from
the silos of business management education?. Journal of
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Aydiner, A.S., and et.al., 2019. Business analytics and firm
performance: The mediating role of business process
performance. Journal of business research, 96, pp.228-
237.
Soumya, S., and et.al., 2017. Fractal analysis as a potential
tool for surface morphology of thin films. The European
Physical Journal Plus. 132(12). pp.1-7.
Impact of business on the external
factors
The activities of the company can also affects the external
factors in the environment which are as follows:
Technology
Economy-
Government policies