Leadership and Business Environment: A Case Study of ASOS Company

This case study provides a comprehensive analysis of ASOS, a leading online fashion and cosmetic retailer, focusing on its leadership and business environment. It includes a SWOT and PESTEL analysis to evaluate the company's internal and external factors, examining how changes in PESTEL factors influence opportunities and threats. The report recommends a suitable leadership style, particularly the coaching leadership style from the Goleman model, to help ASOS meet its business objectives by focusing on team member development. Furthermore, it critically assesses ASOS's corporate social responsibilities, emphasizing the integration of social and environmental welfare into its business processes. The analysis also incorporates a TOWS matrix to illustrate how ASOS addresses its strengths to negate threats and weaknesses, ultimately affecting its opportunities in the competitive marketplace.

Leadership and Business
Environment – Case Study

Table of Contents
Introduction .....................................................................................................................................1
Part 1................................................................................................................................................1
Assess the SWOT and PESTEL analysis for chosen company..............................................1
Evaluate how the changes in PESTEL factors has influenced the Opportunities and Threats
business also how the business is addressing their Strengths to negate Threats and Weakness
affecting their Opportunities. .................................................................................................3
Recommend a suitable leadership style that will help in meeting their business objectives. 4
Critically assess the corporate social responsibilities in the processes using evidence from
your research..........................................................................................................................6
Conclusion.......................................................................................................................................7
Part 2................................................................................................................................................7
Reflection...............................................................................................................................7
References ......................................................................................................................................8

Introduction
Leadership is defined as the process of developing an organisational environment that is
strategic and visionary leading to rewards and engages its team members to develop growth
opportunities, and build a high effective performance culture. It is the capacity of the business
organisation to accomplish desired set of goals and objective and enhance overall performance of
the organisation (Ajayiand Olaniyan, 2019). For this report ASOS company is taken as the base
company. ASOS plc is one of the top online fashion and cosmetic retail company, selling over
850 brands as well as it own range of clothing and accessories in over 196 countries. It was
founded in 2000, headquartered in London, England, UK. This report highlights the detailed
analysis of the company's internal and external analysis, along with how changes in external
factors has influenced the opportunities and threat of the business. In addition to this the suitable
leadership style that will help in accomplishing business objectives is also highlighted.
Furthermore, the corporate social responsibilities considered by the business is also highlighted.
Part 1
Assess the SWOT and PESTEL analysis for chosen company
Business environment is defined as the sum of all the internal and external factors present
such as employees, customers needs and wants and so on directly impacting how the business
carry out their activity and operations effectively (Alrowwad and Abualoush, 2020). In context
to ASOS, to determine the internal and external environment the SWOT and PESTEL analysis is
mentioned below:
SWOT analysis: It refers to one of the essential frameworks used by the business organisation to
effectively determine the internal factors impacting the operations of the business. In context to
ASOS the SWOT analysis is mentioned below:
Strength Weaknesses
 ASOS is one the biggest independent
online and fashion fashion beauty retail
company in UK.
 Company has over more than 800
brands along with its own private label
 Increasing competition from form the
international retailers and online
platform will lead to limited market
share for the company.
 Another weakness of the company is
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of cloths.
 ASOS also has strong loyal customer
base of 4000 employees along with
effective international supply chain.
that it is effectively dependent on a few
countries for its major revenues.
Opportunities Threat
 Expansion of business into new
emerging market is the great
opportunities for the company.
 Increasing trends of consumers seeking
to spend more on unique products can
be opportunity for the company.
 Increasing competition in the
marketplace can create threat for the
company.
 Growing uncertain economic
conditions, fluctuating currency values
can also create threat for the company.
PESTEL Analysis: It is refers to one of the important frameworks used by the business
organisation to determine various external factors impacting the operations of the business (De
Roeck and Farooq, 2018). In context to ASOS, the PESTEL analysis is mentioned below:
Political factors: It refers to the extent to which the government policies and rules
intervenes in the functioning and profitability of the business. Any kind of change in the
government policies and rules leads to create unfavourable environment for the business
organisation. In context to ASOS, impact of Brexit is directly impacting the retail business in UK
also the changes in the digital sales tax policy in the UK is also influencing the functioning and
performance of the chosen company.
Economic factors: It refers to the change in the inflation rate, interest rate, employment
rate, GDP rate and so on influence how business carry out their activity. Due to the outbreak of
Covid 19 has lead to impacting the economy and retail business. In case of ASOS, any kind of
fluctuation in the demand and supply will directly impact the functioning of the company
(Ahmed, 2019).
Social factors: Another factor is the social factor, it refers to the behaviour, attitude and
culture of the company that directly influence an organisation. Satisfying the social needs of the
customers will helps organisation to enhance their effectiveness. There is growing popularity of
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shop-able social media post, there is also growing shift towards e-commerce market. In case of
ASOS, the company offers online services to their customers to satisfy their customers needs.
Technology factors: Any kind of technological changes can impact the profitability of
the company if not taken into consideration effectively. In case of ASOS, the company is
effectively adopting new and advance technology to attract large customers base. The company
focus on digital platforms for marketing, also uses international supply chain system through
technology to smoothly carry out their activity and satisfy their target customers around globe
(Kelly, 2018).
Environmental factors: It refer to working towards welfare of the environment to gain
competitive advantage in the marketplace. It is the responsibilities of each and every organisation
to work towards welfare of the environment effectively. In case of ASOS, the company focus on
sustainability of the environment also focus on reducing any kind of carbon footprints.
Legal factors: The last factor is the legal laws and legislation implemented, needed to be
followed by each and everyone for their smooth and effective working. For any online retail
market one of the greatest threat is the cyber threat and security of customers data. In case of
ASOS, company ensures that required laws related to cyber threat and security of customers data
is followed by the company to ensure the safety and security of their customers.
Evaluate how the changes in PESTEL factors has influenced the Opportunities and Threats
business also how the business is addressing their Strengths to negate Threats and
Weakness affecting their Opportunities.
The growth of the business directly depends on the various internal and external factors
present in the environment. These factors create large number of opportunities and threat for the
organisation. In context to ASOS, the factors like social, technological and environment create
opportunities for the company as company is working towards satisfying the social needs of the
customers, also uses advance technology to attract large number of customers (Sosik and Jung,
2018). In addition to this use of sustainability will create large number of opportunities for the
business. But on the other hand, any kind of political, economical and legal changes create threat
for the company. In order to determine how the chosen company effectively address their
strength to deal with threat and weaknesses affecting their opportunities available the TOWS
matrix is taken into consideration.
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TOWS matrix: It is defined as the technique used by the business organisation to effectively
evaluate, analyse, compare and choose the organisation strategies to accomplish their desired
goals and objectives such as higher revenue. It is one of the essential tool considered by the
business organisation to determine the strategic option of the company. In context to ASOS
company, the TOWS matrix is mentioned below:
SO
 Using strong brand image name to enter
into new emerging market.
 Using their online technology to
broaden their network of product line
and enhance their overall performance.
WO
 Use online campaigns and unique
products and services in comparison to
international retailers, leading to attract
large number of customers.
 Re-develop their strategies to enhance
their share market.
ST
 Use of well advance technology to
effectively deal with the increasing
competition.
 Redesigning their organisational
structure to minimise the impact of
various external factors.
WT
 To deal with threat and weakness the
organisation is focusing on their online
technology and online platforms. The
company is restructuring organisation
to gain competitive advantage in the
marketplace (Chen, Zhouand Klyver,
2019).
Recommend a suitable leadership style that will help in meeting their business objectives
The Goleman leadership style model:
According to Goleman leadership style, leader needs to have the capability to effectively
deal with the changing environment in the business organisation. As per him each and every
style has a different influence on the team of business, so it is essential to determine that there is
no right or wrong leadership style. This model mainly includes six leadership style. In context to
ASOS company, the suitable leadership style that will help in meeting business objectives are
mentioned below:
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Affiliative leader: The first kind of leadership style is the affiliative leaders, under this
the leaders is responsible for solving conflict among the group members through motivating
them to collaborate. The main aim of this kind of leader to develop a team where every team
member feel valued and satisfied (Bhattacharyya and Jha, 2018). In case case of chosen
company, this kind leadership style will help in maintaining and creating positive relationship in
the organisation.
Democratic leader: Another type of the leadership style is the democratic leadership
style, under the leaders are mainly dependent on their team members expertise. Also leaders
motivate their team members to contribute in every discussion, as well as participate in the the
decision making. In case of ASOS, this kind of leadership style will be helpful for the company
when there is proactive decisions needs to be taken (Shao, 2018).
Commanding leader: It also refers to as carrot and stick approach, under this kind of
leadership approach the where leaders assign a particular task to the employees and expect them
to not ask any questions and complete it without complaining. In case of chosen organisation,
this kind of leaders will create unfavourable environment for the team members, discouraging
them to raise any kind of queries.
Pacesetting leader: It refers to kind of leadership style, under which the leaders are
concerned about the results and high quality work only. Leaders only expect desired quality work
from their team members, also allow the team members to work independently. It can lead to
causing stress among the employees while handling complex assignment. In case of selected
company, this kind of leadership style is only suitable for short period of time only.
Authoritative leader: Another kind of leadership style is the authoritative leadership
style, under this the leaders continuously motivate their team members to accomplish desired
goals and objectives. The main purpose of this kind of leadership style is to continuously
motivate the team members, this kind of leaders finds themselves in the authoritative position
taking all the required decisions and expect each members to follow his or her lead. In case of
chosen company, this style will put the leader in dominating position, motivating team members
to accomplish desired goals (Mukherjee, 2020).
Coaching leader: The last type of leadership style is the coaching leadership style, this
kind of leaders focus on effective development of their team members. They generally attempts
to determine the strength and weakness of their employees and encourage the enhance their skills
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and capabilities. In case of ASOS, this will allow leaders to focus on long term objectives of the
organisation as well as motivating them to contribute to accomplishing desired objectives.
From the above it is analysed that the ASOS leaders should adopt the coaching leadership
style, this will helps them to accomplish desired goals and objectives and enhance their overall
performance. This kind of leaders focus of development of team members, also determining the
strength and weaknesses of their team members and accordingly offer them required training to
enhance their skills and capabilities. This will help the company to accomplish long term goals
of the organisation through motivating employees to effectively contribute in the process.
Critically assess the corporate social responsibilities in the processes using evidence from your
research.
Corporate social responsibility is refers to an effective management concept where the
organisation integrate social and environmental concerns in their business organisation
operations as well as interactions with their direct stakeholders effectively. Effective corporate
social responsibilities helps the organisation to gain competitive advantage in the marketplace
and create their positive image as well leading to attract large number of customers (Vijaybaskar,
2020). It is also organisation commitment to effectively deal with the social, environmental and
economic effects on their operations. It allow the organisation to fulfil their responsibilities
towards environment, it is basically concept that make the organisation realise that they has
responsibility towards welfare and sustainability of the environment. With increasing
competition and changing market trends it is essential for the business organisation to fulfil their
corporate social responsibility. It will help organisation to gain competitive advantage in the
marketplace leading to attract large number of customer’s as well. In case of ASOS, it is one of
the well established and top online fashion and cosmetic company, the company is effectively
focusing on their corporate social responsibility in order to continue to grow in the marketplace,
as well as to continue to enhance their effectiveness. The company is focusing on minimising
their impact on the planet, the company is planning to shift towards more circular systems.
The company is continuously working towards sustainability of the environment through
ensuring 100% of their products and packaging are made from sustainable or recycled materials
as well as also ensuring or prioritising circular modification, ensuring the effective product
recovery programmes. The company is moving towards more sustainability in order to attract
large number of customers and enhance their performance and profitability (Van Zyl, 2018)
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(Perkins, 2019). It also help the organisation to create strong brand image in the marketplace.
The company is continuously working towards becoming more sustainable and ethical and made
a important headway towards becoming a sustainable organisation as well. During the
Copenhagen Fashion Summit 2017, the company pledged to reduce their environmental impact
on the business as well as support the fashion to be more sustainable in future. The company has
taken required steps to lessen its environmental impacts in their distribution network across UK.
ASOS is also committed to reduce their greenhouse gas emission, using renewable at their
number of sites and providing sustainable garments. In order to reduce their carbon footprints
which is due to the transportation and delivery of goods. The company is directly working with
the suppliers to determine more efficient modes of transportation, and have introduced electric
vehicles effectively (Cole, 2018).
Conclusion
From the above report, it has been concluded that leaders plays an essential role in
managing and leading team members towards accomplishing desired goals and objectives of the
organisation. Proper leadership style help in improving overall effectiveness of the organisation
and implementing proper strategies to achieved desired goals of the business. This report helps in
analysing the internal environment using SWOT analysis along with the external environment
using PESTEL analysis. It is also analysed that change in pestel analysis influences the
opportunities and threat of the business. Also the suitable leadership style is also analysed using
Daniel Goleman's leadership model along with the corporate social responsibilities.
Part 2
Reflection
Writing this report allowed me to enhance my knowledge and skills in various aspects. It
offered me an opportunities to research about various topic leading to increase my knowledge. It
helps me to improve my knowledge regarding the internal and external factors used by the
business organisation to determine various factors impacting the overall profitability and
productivity of the business. Through this report I have analysed that internal factors can be
determined through using SWOT analysis which is one of the essential strategic frameworks to
analyse the strength and weaknesses of the business. Also the various threat and opportunities
present. In addition to this, to determine the external factors the PESTEL analysis can be used by
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the organisation. This report also help me to analyse that leadership plays an essential role in
leading and motivating employees towards accomplishing desired goals and objectives of the
business. Through the research I have identified various leadership style that can be adopted by
the leaders in order to create positive workplace environment, this research helped me to
determine the best leadership approach that can be used by the chosen company to accomplish
their objectives. The overall project helped me to enhance my research skills and analytical skills
which will further help me in my future growth and development effectively. The overall project
was helpful in enhancing my knowledge and skills.
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References
Books and Journals
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entrepreneurial leadership in business development. American Journal of Management,
19(3), pp.11-18.
Alrowwad, A.A. and Abualoush, S.H., 2020. Innovation and intellectual capital as intermediary
variables among transformational leadership, transactional leadership, and
organizational performance. Journal of Management Development.
Bhattacharyya, S.S. and Jha, S., 2018. Strategic leadership models and theories: Indian
perspectives. Emerald Group Publishing.
Chen, Y., Zhou, X. and Klyver, K., 2019. Collective efficacy: Linking paternalistic leadership to
organizational commitment. Journal of Business Ethics, 159(2), pp.587-603.
Cole, K., 2018. Leadership and Management: Theory and Practice. Cengage AU.
De Roeck, K. and Farooq, O., 2018. Corporate social responsibility and ethical leadership:
Investigating their interactive effect on employees’ socially responsible behaviors.
Journal of Business Ethics, 151(4), pp.923-939.
Kelly, R., 2018. Constructing leadership 4.0: Swarm leadership and the fourth industrial
revolution. Springer.
Mukherjee, A., 2020. Leadership for creating sustainability within the organization: An empirical
study. IUP Journal of Organizational Behavior, 19(3).
Perkins, K.M., 2019. Leadership and purpose: How to create a sustainable culture. Routledge.
Shao, J., 2018. The moderating effect of program context on the relationship between program
managers' leadership competences and program success. International Journal of Project
Management, 36(1), pp.108-120.
Sosik, J.J. and Jung, D., 2018. Full range leadership development: Pathways for people, profit,
and planet. Routledge.
Van Zyl, E., 2018. Peace Leadership. eBook Partnership.
Vijaybaskar, L., 2020. A new Leadership Model for Millennial Leaders in the Innovation Age.
Journal of Contemporary Management Research, 14(1), pp.1-17.
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