Business and the Business Environment: Task 3 & 4 Analysis

This report provides a comprehensive analysis of the business environment, focusing on the application of PESTLE and SWOT frameworks. It begins with an introduction to the business environment, emphasizing the significance of both internal and external factors in influencing business activities. The PESTLE analysis is then thoroughly examined, detailing the impact of political, economic, social, technological, legal, and environmental factors on business organizations. The report further explores the internal and external analysis of a specific organization, likely Asda, using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The interrelation of these factors with macro-environmental aspects is also discussed, highlighting the impact of micro and macro factors on business objectives. The conclusion summarizes the key findings, emphasizing the importance of analyzing the business environment for successful business operation and profitability. References to academic sources are included to support the analysis.

Business and the Business Environment
Task 3 & 4

Table of Content
 Introduction
 PESTLE analysis and its impacts on business organizational
 Appropriately application of PESLTLE model
 Internal and external analysis of specific organization
 Application of SWOT
 Impact of macro and micro factor on business objectives.
 Conclusion

Introduction
Environment is the collection of factors that covers internal and external situation f
business and influences the business activities. Whenever any business is going to start
and running by business concern, it need to focus different element which helps to
maintain the production in order to get outcomes (Aithal, P 2016).

PESTLE analysis and its impacts on business
organizational
PESTLE analysis is a framework which is very important for business organisation
and make strategic planning. In business organisation, this is used by strategic
planners to analyse the factors which can affect a business whether positively and
negatively (Apăvăloaie, 2014). This framework is used to know the impact of
external factors that is defied as:

Cont..
Political factor – This factor comprises with Bureaucracy, corruption level,
Tariffs, Data protection law, tax rates, interest rate, inflation rate etc. that can
impacts on business operation of Asda which is defined as:

Cont..
Economical factor: This factor comprises with unemployment and interest
rate, labour cost, inflation rate, growth rate, population growth;, dilatation,
exchange rate etc. that may affect the business of Asda supermarket in
diverse manner:

Social factors
Social factor: This factor is connected with social needs and wants which are
satisfied by business organization This covers culture, value, beliefs, change
in lifestyle, taste and customers preference that has impacted on Asda
organization:

Cont..
Technological factor : Every business company wants new innovation and
technology in their business which helps to continue a business and
increase production and profitability. The positive and negative impacts
are as defined:

Cont..
Legal factor: This factor comprises with laws, regulations and rules such as
employment laws, health and safety, equal pay, anti discrimination and food
safety regulation which may affect the business operation of Asda company
that are impacted positively and negatively as defined:

Cont..
Environmental factor: This factor comprises with environmental rules, biological changes and other
factor which impacted on Asda's business positively and negative defined in notes:

Appropriately application of PESLTLE model
PESTLE model is used by Asda company to know which factor can impact negatives and
which one positively. Such factor can not be control because they are external factor but
it can be overcome by analysing that helps to take further steps in order to perform well
(Quinlan, Babin, Carr and Griffin, 2019). Asda is a supermarket that uses PESTLE
analysis to know impacts on operation which helps to run a business effectively.

Internal and external analysis of specific
organization
Internal analysis of business organization is need to analyses the strength and
weakness of business. This is used by all corporation to know the strength
and weakness that can be control by organization The SWOT analysis of
Asda super market is stated as:

Cont..
Strength:
 Asda is big super market that create a good culture between distributors and dealers
which helps to promote business.
 It has good and successful track record that attracts customers towards itself.
Weakness:
 Gap in product range that can switch customer for other brand.
 Asda is not focusing on employees needs so there is high attrition rate (Shehu and
Mahmood, 2014).

Cont..
Opportunities:
 Support of government for opening new market that increase productivity.
 Focus and adoption of new technology in supermarket.
Threats:
 New rules and regulation in context to product safety and maintaining standard
 Habitual of customers for other brand

SWOT analysis with example –
SWOT analysis with example – Asda is super retail market that is running
business by providing groceries, merchandise products and services and
financial services to customers at retail prices which attracts customers and
encourage them to buy, is strength for organisation. Weakness for such
organisation are lot of competitors such as Tesco, Sainsbury, Morrisons etc.
selling similar products at retail prices, changing in government regulations
and tax rates which can increases cost of organisation.

Application of SWOT
SWOT analysis is a tool which is used by business entity to increase the business
performance and make effective regulations to overcome the weakness and threats. In
the business organization there are various element which can affect the business
industry and maintain the profits.

Strength and weakness interrelation with macro
factors
Political factor:
Strength: Political stability and tax rate is strength for Asda as it can increase
the production and profits by selling the products (Wood and Logsdon, 2017).
Weakness: Changes in government regulation can reduce the productivity of
Asda because new regulations are need to follow by Asda.
Political factor Strength: Political stability and tax rate is strength for Asda as it can increase the production and profits
by selling the products (Wood and Logsdon, 2017).
Weakness: Changes in government regulation can reduce the productivity of Asda because new
regulations are need to follow by Asda.
Economical factor Strength: Decrease in interest and inflation can be strength for business organisation as it helps to
increase the business activities by increasing customers.
Weakness: Increase in interest rate impacted business activities negatives as it has to pay extra charges
which reduced the production level.
Social factor Strength: The needs and interest of customers increase business activities and performance which helps
to maintain the profitability.
Weakness: Asda faces many problems due to changing in culture and interest of people that is negative
point for Asda.

Interlink of strength and weakness from macro
environmental factors
The strength and weakness of Asda organisation are interlinked with macro
factors as sometime it may affected by outside factors. Strength and
weakness are identified as opposite factors that may give power and
weakness to business organisation. In context to Asda organisation, political
factor such as government pressure and changes in regulations increases
weakness for business because due to pressure it cannot work properly.
Social factors may also affect negative as it increases burden of CSR that
directly impacts on profitability of organisation.

Impact of macro and micro factor on business
objectives.
Micro and macro factors are those factors which arises in business
organization in order to run and increase business performance. In business
industry there is needed to analyses the different factors during taking any
decision that can impacts on overall business performance of organization.

Conclusion
Micro factors such as SWOT analysis which states the positivity and opportunities to
Asda organisation which helps to remover the obstacles and increase profitability. To
run a business successfully and independently there is need to analyse the business
environment which states the production and profit level.

References
Wetherly, P., 2014. The business environment: themes and issues in a
globalizing world. Oxford University Press.
Wood, D. J. and Logsdon, J. M., 2017. Theorising business citizenship. In
Perspectives on corporate citizenship (pp. 83-103). Routledge.
Chungyalpa, W. and Bora, B., 2015. Towards Conceptualizing Business
Strategies. International Journal of Multidisciplinary Approach &
Studies, 2(1).