Report on ASDA: Analyzing Business Environment through PESTLE

This report provides a PESTLE analysis of ASDA, a leading British retailer, to evaluate the impact of macro-environmental factors on its operations. It examines political factors like Brexit-related trade policies and increased taxes, economic factors such as reduced customer purchasing power due to COVID-19, and positive social impacts from venturing into vegan products. Technological advancements improving business efficiency, adherence to legal employment policies, and environmental responsibilities boosting brand image are also discussed. The analysis highlights the importance of adapting to political and technological changes, recommending expansion into stable regions and investment in cost-saving technologies. The report concludes that external factors significantly influence business operations and internal policies, affecting long-term development and production processes. Desklib provides access to similar solved assignments.

Business environment

Executive summary:
There are various macro environmental factors that affect the functioning of an
organisation in running its operations. Factors such as COVID-19 and Brexit have disrupted
production and caused change in customers preference. On the contrary, social and environment
factors have assisted in developing good customer relations and increase profitability.

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE analysis:...................................................................................................................1
Key drives of chance:.............................................................................................................2
Recommendation:...................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment refers to the external environmental factors that can affect overall
operations of a business. ASDA is taken into consideration to for the following report. It is one
of Britain's leading retailers established in year 1949. This report will include PESTLE analysis
for the respective company.
PESTLE analysis:
This analysis is a strategic framework which provides valuable information on external
factors that impact the organisation and gain macro perspective of industry environment
(Chofreh et. al., 2020). In context to ASDA, management use this analysis in order to identity
external factors that can affect the development of new products or services of their company and
reduce its overall performance. The following factors of PESTLE analysis are elaborated below:
Factors In context to company
Political In context to ASDA, the company has faced
various issues such as increased taxes and new
trade policies after Brexit which have disrupt
their overall supply chain and reduced
productivity (Gupta and Gentry ., 2018).
Economical In context to ASDA, the purchasing power of
their customers have reduced due to COVID-
19 pandemic which has reduced their sales and
resulted in decreased market share and
customers.
Social In context to ASDA, social factors have
positively impacted their business and have
enabled them company to venture into vegan
products to satisfy customers and increase their
profitability (McAleavy ., 2020).
Technological In context to ASDA, the company is able to
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develop and use new advance technologies in
their stores to better serve their customers and
improve business efficiency.
Legal In context to ASDA, the company follows all
rules and regulations such as employment
policies in order to keep their employees
satisfied and safeguard themselves from any
legal repercussions (Meister and Mauer .,
2018).
Environmental In context to ASDA, environmental factors
have helped the company to boost their brand
image by following environment
responsibilities and have assisted them in
developing environment-friendly products for
their customers (O'brien ., 2019).
Key drives of chance:
Political:
The changes in political factors such increased trade tariffs or political instability can
impact the business negatively as it would force them to incur unnecessary cost during their
production. Moreover, it would reduce efficiency of their overall supply chain.
Technological:
The chances in technological factors such as new efficient technological method of
producing products can have a positive impact on a business. It can enable a business to make its
operation efficient which will result in cost saving.
Recommendation:
 In order to minimize the negative impact of political factors the company should focus on
expanding its bushiness into a region with stable political environment.
 It is crucial for the company to invest into technological research and development in
order to develop cost saving production techniques to enhance their overall efficiency.
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CONCLUSION
It is concluded from the above analysis that external environmental factors play a crucial
role in affecting the operations a business both positively and negatively. These factors also
affect internal policies within a business which can impact its development and production
process in long-term.
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REFERENCES
Books and Journals:
Chofreh et. al., 2020. Covid-19 shock: Development of strategic management framework for
global energy. Renewable and Sustainable Energy Reviews, p.110643.
Gupta, S. and Gentry, J. W., 2018. Examining its micro and the macro perspective. Eco-friendly
and fair: Fast fashion and consumer behaviour.
McAleavy, T., 2020. The competing pressures paradigm: A tool for improving emergency and
continuity planning efficacy?. Journal of business continuity & emergency
planning, 13(3). pp.265-277.
Meister, A. D. and Mauer, R., 2018. Understanding refugee entrepreneurship incubation–an
embeddedness perspective. International Journal of Entrepreneurial Behavior &
Research.
O'brien, J., 2019. Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
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