This report provides a detailed analysis of Asda's business strategy, examining its internal and external environments. The report begins with an introduction to business strategy and then explores the impact of the macro environment on Asda, utilizing tools such as PESTLE analysis and Ansoff's growth vector matrix to assess political, economic, socio-cultural, technological, legal, and environmental factors. The report then delves into Asda's internal environment and capabilities, employing VRIO analysis and McKinsey's 7S model to evaluate its resources, competitive advantages, and organizational structure. Furthermore, the report examines strategic planning, including the use of Porter's Five Forces to analyze the competitive landscape and strategic planning to achieve goals. The conclusion summarizes the key findings and the references provide a list of the sources used.