ASDA: Analysis of Internal and External Business Environment

This report provides an analysis of ASDA's business environment, focusing on its internal and external factors. It begins with an introduction highlighting the importance of understanding the factors impacting a business, followed by an overview of ASDA, a UK-based multinational chain. The report then delves into ASDA's internal environment, outlining its strengths, such as a wide variety of products and extensive distribution centers, and weaknesses, like the lack of a global presence and competition from local vendors. The external environment analysis covers political, economic, and social factors, assessing their impact on ASDA's operations. The report also addresses how ASDA impacts its context and concludes by emphasizing the need for the company to adapt to survive and retain consumers. References to academic sources support the analysis.

Introduction
It is vital to note that there are number of factors
that have impact on the operations of business.
This poster is based on ASDA. It is a British
multinational chain that has its headquarters in
UK. It was established 72 years back in England.
ASDA And Its Environment
Name of the Student
External Environment
Political: It includes the policies that are formulated by the
government and it has direct impact on the working of a company.
As ASDA operates in many regions of the globe, it is clear that the
United Kingdom encourages free commerce, and as a result, the
company is able to function effectively in whatever part of the world
they choose.
Economic: It is important for ASDA to consider various factors such
as pay level, competitive pressures, cost of credit, energy prices,
labour supply & demand, etc. At the present time the economic
condition is not good and that has impact on the company
(Bakashbayev and et.al., 2020).
Social: Society is a crucial component, and the people who live in it
play a major role in the success or failure of an organisation. It is
critical to remember that businesses exist to serve their consumers. It
is the responsibility of business organisations to meet the
requirements and desires of their consumers. This is how social and
cultural elements affect an organization's business. It is vital for a
business to follow the trends in the market. The market for organic,
vegetarian, and vegan foods is rapidly expanding (Har S.M., 2019).
In the UK and many other nations where ASDA operates, there is a
significant demand for particular ethnic dishes. It's worth
mentioning that ASDA sells a wide range of items that appeal to a
diverse range of ethnic communities.
How the company impact
its context External
Environment
• It's worth noting that the way businesses operate
reflects the economy's general growth. It is critical to
evaluate the company's influence on the environment.
• There are number of competitors that are present in
the market as well as the company faces competition
with local vendors so it is important to use latest
technology it will help them. ASDA must adopt new
tactics to survive and keep consumers as a result of a
variety of other developments in the external
environment.
Internal Factors
Strengths
• There are varieties of products of ASDA that are
provided to its customers. The services offered are as
follows Asda Money, Asda Smart Price, George
Clothing, Chosen by You and Asda Mobile.
• There are 25 distribution centres in overall UK. This
helps to provide them goods and services as and when
required.
Weakness
• The company do not have global presence. This is the
reason they are unable to beat the competition. It is one
of the major weaknesses that are faced by the company.
• The company has to face competition from local
competitors as well.
References
Har, S.M., 2019. An Analysis of Corporate
Governance in Internal and External factors of Fiat
Chrysler Automobile.
Piligrimienė, and et.al.,, 2020. Internal and external
determinants of consumer engagement in
sustainable consumption. Sustainability, 12(4),
p.1349.