ASDA Case Study: Impact of Internal & External Environments

This report provides an analysis of the internal and external business environments affecting ASDA, a major retailer. It employs PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors influencing ASDA's operations. Additionally, a SWOT analysis identifies the strengths, weaknesses, opportunities, and threats facing the company. The report emphasizes the importance of these factors in ASDA's decision-making processes, highlighting the need for proactive management to mitigate negative impacts and capitalize on opportunities. Recommendations include developing attractive customer offers, exploring healthy food segments, and leveraging social media for promotion to enhance market share and customer engagement. This analysis contributes to a comprehensive understanding of the challenges and opportunities within ASDA's operating environment.

Impact of external and internal
business environment on the
decision making process of ASDA

Table of contents
• Introduction
• PESTLE analysis of ASDA
• SWOT analysis of ASDA
• Conclusion
• Reference list

Introduction
This report evaluates about the significance of
internal and external business environment
for ASDA organization. The PESTEL and SWOT
analysis helps in providing the details about
the various factors that influence the decision
making process of the management of the
organization.

PESTLE analysis of ASDA- Political and
Economic Factors
Political factors
• The policies of the government and their legislations
have a significant impact on the business of ASDA.
• Economic Factors
• The economy of a country is vital for the growth and
development of the business in that country. The
stable economy of UK, allows its citizens to spend
more on their purchases, thus the sales of ASDA is
benefitted. .

PESTLE analysis of ASDA- Social Factors and
Technological Factors
Social Factors
• The change in the trends and taste of the citizens of UK has
major affect on the business of ASDA. The eating habits of
the people are changing; they are more inclined towards
healthy eating and prefer foods that assist them in staying
healthy.
Technological factors
• Technological advancements assist the organization in
increasing their business. The efficiency of the work
increases with the help of the technology and the chances
of error are highly reduced.

PESTLE analysis of ASDA- Legal Factors and
Environmental Factors
Legal Factors
• The legislations of the government are important for any of the
business organization. The legislations such as Health and
Safety Act, Disability Act and more such acts assist the
employees of ASDA to gain certain rights and benefits, thus this
helps in increasing the employee relation of the organization.
Environmental Factors
• The environmental factors must be considered by the
organization ASDA is taking various initiatives in order to reduce
their negative impact of their operations on the environment.

SWOT analysis of ASDA
Strengths
•ASDA is very well known in UK and has a very strong
brand image
•The company has a very strong management and thus is
able to manage their performance and deliver excellent
customer service
•The organization offers their consumers with products
that have value for money.
Weaknesses
•They do not offer any loyalty scheme to their customers
as offered by their competitors.
•The quality of their products are not up to the mark
•Need to invest more in order to implement new
technologies
•They do not have mini stores
Opportunities
 They should enhance their online presence, that will
allow them to attract more consumers
 They should expand in developing economies such as
China, India
 Develop new segment that will allow them in
increasing their sales
Threats
 They face major competition from other retailers such
as Tesco, Sainsbury’s and more
 Offers and discount provided by other competitors are
also a threat for ASDA
 Growth in online retailers is one of the major threat of
ASDA

The influence of external and internal environment on
the decision making of the ASDA
• The management of ASDA is required to initiative in order to reduce the
negative impact of all the various factors that have been identified with the
help of external and internal analysis.
• The organization should focus on developing interesting offers that will
help them in attracting more customers. Most of the retailers in UK offer
discounts due to which customers prefer to visit them and ASDA losses
business
• Management of ASDA needs to focus on development of new segments or
evaluate in healthy foods, as the eating habits of people in UK is changing it
will help them in increasing their business and increase their market share.
• They can advertise and promote about their products on the social media
platforms so that customers can be aware about their products and
services and associate with them.

Conclusion
This report helps in understanding about the
external and internal environment of ASDA. in
order to understand about the external
environment PESTLE analysis has been
conducted that provides details about the
different factors that affect the business
operations of the organization. The SWOT
analysis helps in understanding about the
internal business environment.

Reference list
• Asda.com. (2018). Asda.com - Online Food Shopping, George, & more. [online]
Available at: https://www.asda.com/ [Accessed 7 Mar. 2018].
• Kurečić, P. and Kozina, G., 2017, January. What Remains after Brexit? An Analysis of
the Political and Economic Developments. In European Union Studies Association
Asia Pacific Annual Conference 2017 The Roles of the EU and the Asia Pacific in the
Global Era–Politics, International Relations, Economics, Law.
• Metzger, K., 2014. Business analysis of UK supermarket industry.
• Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., 2015. PEST-
Analysis and SWOT-Analysis as the most important tools to strengthen the
competitive advantages of commercial enterprises. Mediterranean Journal of Social
Sciences, 6(3), p.705.
• Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and
business policy. Pearson Education India.
• Willard, B., 2012. The new sustainability advantage: seven business case benefits of
a triple bottom line. New Society Publishers.

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