Business and the Business Environment: A Comprehensive Asda Report

This report provides a comprehensive analysis of Asda's business environment. It begins by outlining the different types of companies: private, public, and charity, along with their respective sizes and scopes. The report then delves into the various departmental functions within Asda, such as Human Resources, Marketing and Sales, Research and Development, and Administration, highlighting their roles and responsibilities. A significant portion of the report is dedicated to a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting Asda's operations. The report also includes a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. The analysis considers how these elements are interconnected and how the macro environment influences them. The report provides valuable insights into Asda's strategies and challenges within the competitive business landscape.

Business and the Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Purpose and different types of companies: private, public and charity............................1
P2 Size and scope of private, public and charity....................................................................2
LO2 .................................................................................................................................................3
P3 Different functions of departments...................................................................................3
LO3..................................................................................................................................................5
P4 Impact of macro environment in Asda..............................................................................5
LO4..................................................................................................................................................7
P4 SWOT analysis of Asda....................................................................................................7
P6 Strength and weaknesses are interrelated with the macro environment............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are several companies which are having varied rules and policies in order to run
their business. There are namly three categories :private , public and charity . Each category
have different rules and regulations in their organisation . Every company have innovative
strategies and approaches to enhance their performance in a market .Asda gives satisfaction to
their customers by providing them good quality food and grocery products. It has good grand
value in the market .Each department of the company have certain roles and responsibility to
give effort to get achieve their desried goals and objectives. This report includes the goals ,types
of company ,funtions of departments, PESTLE and SWOT analysis .By providing the perfect
gudiance to an employee entity can get enhance their performance in the market.
LO1
Organizations has different types of legal structure and rules to run a business in the
market. Basically,there are three types of firms namly private, public and chairty, All are having
varies rules, policies and plans to run an organisation in the world. The company follows
different types of strategies and approaches to enhance their productivity and also increase their
overall performance in the market. Each entity has different legal structure to run a companyin
an industry. The firm have different objectives to increase their performance and productivity in
the market (Agarwal, Grassl and Pahl, 2012).
Private firm: Asda
Private entity has various rules, regulations and policies to run a company in an industry.
They are not follow any government rules to run a firm in an industry. It has their own rules and
regulations to get desired objectives. Asda provides good quality food and grocery products to
their customers. On the need of their consumer they will provide appropriate products to the
cilent, Asda maintain their brand value in the market. They have own rules and regulations to
run a firm in an industry. They provide innovative products by applying different types of
strategies and approaches in existing products. They need to register from the authorized
committee in the industry then only they can sell their product to the customers (Boons and
Lüdeke-Freund, 2013).
Public firm: NHS
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Public firm has different and effective rules of the government to enhance their
performance in the market. Government provides appropriate and innovative plans to the
company to expand their business in an industry. In public firm the National health care servies
provides health care services to their customers in the world They have main goal to provide
good quality services and expand their business in the market. They only follow government
rules to run an entity in an industry (Chow and et.al., 2012).
Charity firm: The calico group
Charity firm also have various rules to run a company in the market. They provide social
profit to the customers rather than financial profit.It also follows various government rules and
regulations and their own rules and regulations to run a company in an industry. Main objective
of The calico group is to provide social benefit to the customers. Chairty firm satisfied their
clients by servies an appropriate servies to get higher performance in the market.
P2 Size and scope of private, public and charity
Each entities have various rules and regulations to run a company in the market.. They
follows different strategies and approaches to enhance their overall performance in an
organisation. There are mainly three types of companies in the market private, public and charity
and each have various size and scope in the market. All these follows different types of plans
and policies to increase their performance in an industry. They need to follow innovative
strategies and approaches to increase the performance and expand a business in their existing
products. There are some size and scope of private, public and charity entities as follows;
Private entity: Asda
Asda satisfied their customers by providing different and good quality products. Based on
the client needs they innovate an item to increase product to increase their productivity in the
market. Size of Asda is big in an industry because they have many shareholders, customers,
employees in a market. They also follow different and effective strategies to innovate the product
for the clients. Huge number of shareholders helps to enhance their performance and also help to
expand a business in the market. Main goal of this firm is to maintain brand recognition in an
industry. They also serves an appropriate and good quality products to their customers to
increase the overall productivity of the firm in the market. In the company the shareholders helps
to enhance their performance in the market.
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Public entity: NHS
NHS provide health care services to their customers. It applies government
rules ,regulations and plans to increase their performance in an industry. Government has
provides an appropriate and effective terms and policies to expand a business in the market. This
is a huge firm in the world because they have their own shareholders and they also have 50% of
government shareholders in the market. It helps to expand business in industry and also help to
expand a business globally. The main goal of this firm is to provide an appropriate health care
services to the customers. It helps to enhance their productivity and also their performance in the
market.
Charity entity: The calico group
Charity firms take donations from the other business in the market and provide
appropriate services to the customers. Main objective of The calico group is to provide social
profit rather than financial profit to the other companies. This firm has large size in UK because
they have many shareholders and employees in an industry. It provides higher performance in
the market and also help to expand their business in a market. The calico group combined with
the other business to make social profit not a financial profit in an industry (Kolk, 2016).
LO2
There are various types of departments in the company and each have various roles and
responsibilities to get desired target in a market. They also need to manage and handle the firm to
get higher performance in an industry. They also have the responsibility to provide more
contribution to get higher productivity in the market. There are various types of departments in
the Asda such as HR, finance, marketing, finance, research and development. They all have
different characteristics and responsibilities to get desired objective. HR manager have a
responsibility to provides an effective and open environment to satisfied their employee so that
they can work together in an apppropriate manner to get higher performance in a market.
Marketing manager only responsible for the packaging, promotion and selling. They must apply
pricing and promotional strategies to increase the productivity in a market. Each department has
roles and responsibility to get desired goal of the company in an industry (Lee, Olson and Trimi,
2012). If departmental functions are well managed in the firm then entity will get higher
performance in the market.
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Departmental functions of Asda as follows:
Human resource
HRM is the base of the company they manage entire firm activities. HR manager has a
responsibility to provide open environment, policies, plans, incentives, bonus etc. By providing
different and effective service to an employee so that they will give more contribution to the
work. It helps to enhance their productivity in an industry. They provide effective employment
legislation policies to an employee that helps to protect the employee in a firm. It also has a
resposibility to give a proper training and development to their employee so that they can esaily
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Illustration 1: Departmental chart
Source: ORGANIZATIONAL CHART

innovate a product to enhance their overall performance in the market. innovate a product to
increase overall performance in the market (Onetti and et.al., 2012).
Marketing and sales department
Marketing department has a responsibility to introduce their product in the market to
increase their productivity . They follows various types of pricing and promotion strategies to
sell the product in a market. Asda follows mail, ordering and social media to promote their
product to increase their productivity in an industry. Main responsibility to package, promote and
sell the product in a market. They follow different types of strategies and approaches of
promotion which helps to increase productivity as well as the performance in the market.
Research and development department
This department provides different and innovative strategies to the employee so that they
can easily produce innovative productivity. Manger of this departments research the actual
company condition in the market and based on the market condition they will give their
appropriate solution to the employee. By providing appropriate and effective techniologies to the
employee so that they can easily produce an item in the company. They also have the
responsibility to provide number of ways and new technologies to produce a good quality
product for a client (Prajogo, 2016).
Administration department
Administration department has a responsibility to provide an appropriate solutions to the
customer based on their queries. They manage the company resources and provide innovated
resources to an employee so that they can easily produce new item in the market. They handle
the queries by phone and mail. It provides tools and techniques to an employee so that they can
easily manufacture a product effectively.
LO3
PESTLE analysis help to identify the actual condition of the company in an industry. It
helps to identify which all are the factors that affects the overall firm performance in an industry.
Asda need to follow the latest technologies to improve their performance in the market. They
follow different and perfective policies to increase the productivity in a market. It also follows
different types of government policies which help to expand a business in an industry. By the
PESTLE they can easily know the factors that affects the company performance in a market. UK
governments provide various types of rules, plans and policies to the firm which help to increase
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their performance and also help to expand a business in the market (Saleem, 2017). PESTLE of
Asda as follows:
Political factor
Recently UK government increase the tax that affects the company performance in an
industry. Increment in taxes has been announced as the part of the conversations' alcohol policy.
The alcohol policy concerns about the previously commented that the increment in taxes start by
the minimum pricing is the most appropriate policy wand that help to prevent supermarkets from
the tax increment on alcohol as a loss leaders. Asda planning to the strategies to decrease the
prices of the particular product. What are the positive and negative effects of each PESTEL
factor?
UK government increases the tax rate so that the companies have loss. Asda need to pay extra
tax according to the government policy. They planned to reduce the cost of each product so that
they will get higher performance in the world.
Economic factor:
Asda has many big competitors such as Tesco and Sainsbury's that affects the overall
company performance in the market. These companies avoid the tax and they improve the
functionality of the product to increase the overall performance in the market. Asda continuously
decreases the prices of the grocery item to compete with other companies in an industry. 11% of
the family spend their income on food and this rise to 15.9% for those on the lowest income.
There is one suggestion for the Asda firm they should decrease their prices of food to improve
the performance in the market (Schneider and Spieth, 2013).
Some of the customers not spend much money on the foods. Food products of Asda firm is too
high so that they need to reduce the price of the items and services so that it has negative impact
on the firm. company will not get higher performance and also not get desired goal in an
industry.
Social factor:
In UK, there are a lot of changes in social trends that affects the demand for Asda's food
products and the availability and willingness of the individual to work for it. In UK there is one
trend affects the company performance that is growing pool. This pool for retired employees that
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able to work to supplement their pensions.. Asda also stared to recruit employees to involve into
this growing pool.
From this growing pool has negative impact on the ageing population they have demand for both
food and non-food items such as medicines and glasses from its optical shops.
Technological factor
There are different types of new technologies that help s to increase overall performance
in the market. Online shopping and computer design helps to increase the productivity in an
industry. Asda use online delivery to increase the productivity and also help to enhance their
performance in the market (Sena Ferreira and et.al., 2012).
Technologies are changing day to day so Asda need to adopt new and advanced technologies in
the company so it will increase the operational and financial cost of an entity.
Environmental factor
Asda supports carbon reduction in the most of its stores or shoes. They have eco-friendly
stores, 40% more energy is more efficient and emits 50% less carbon dioxide than the standard
new build store. Asda is a part of institute of grocery distribution, a think-tank and research
entity for the particular sector that work with the British standards to provide appropriate
methods of supply chains.
Asda provide online delivery of the products so that the vehicles are used for the transportation
so that it creates the pollution in an environment. This is the negative impact on the company.
Legal factor
Asda need to plan for permission regulations and ensure that continued stores expansions
challenges with the planning regulations. It helps to enhance overall performance and also help
to expand a business in the market (Zeng, Li and Duan, 2012).
There are barriers and negative impact about Asda having unfair challenging advantages over the
SME's retailers. Government provides innovative laws for the company so that Asda need to
change their policies according to the laws.
LO4
Asda is the biggest retailer in the world. On the basis of cilent needs they provide
appropriate and good quality items to the consumers. It has main objective to maintain brand
identification in an industry. It follows various types of strategies and approaches to increase the
productivity in the market. They also provide innovative products to the customers to expand a
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business in an industry. Main strength of this entity is to provide good quality product to the
customer and also expand the business in the world. SWOT analysis of Asda as follows:
Strengths
Main strength of Asda is they have good brand recognition in the market. It also has
many shareholders in an industry which help to enhance the productivity and also help to
enhance the overall performance in a market. It has many competitors including its use of
information technologies to support and enhance their operations. They follow different and
innovative strategies to increase their performance in the market. It also uses different and
advanced technologies to expand a business in an industry.
Weaknesses
Asda has many challengers that affects the company performance in the market. Other
companies like Tesco follows different approaches and strategies to increase their productivity in
an industry. Asda products has high prices so that it affects the overall entity performance in a
market. To maintain brand identification in the industry they need to decrease the prices of
particular foods (Siewiorek and et.al., 2012).
Opportunities
Asda has many supply chain in the world that help to enhance their performance in the
market. It has a lot of shareholders in an industry which helps to increase efficiency in a market
and also help to expand a business in a market. It also has opportunities to take over, merge with
the other business and create appropriate strategies with alliance with other global retailers, that
focusing on the growth both its food and non food products. They can also open new
supermarkets in different areas to expand a business in the market. They can easily expand a
business in a market by forming different types of strategies with various global retailers.
Threats
Food product of Asda has high price in the market so they need to reduce to increase their
productivity in an industry. Some peoples cannot spend that much money on the particular
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products so they need to decrease their prices to increase the overall productivity and
performance in the market (Yayla and Hu, 2012).
Strengths Need to link with opportunities and threats
Main strength of the Asda is that it maintain brand recognition in the market. They apply
various and innovative strategies to enhance overall performance in an industry. To maintain
brand identification in the market they need to use advanced and enhanced IT technologies. They
use different and enhanced promotional and pricing strategies to increase the productivity in an
industry. Technological factors helps to improve their overall performance in a market because
Asda use different and innovative IT systems to promote and sell their product to the customers.
Based on the consumer needs they provide innovative products to a client.
To increase the overall performance they need to use advanced technologies' for selling
process. Asda also use enhanced technologies such as online food delivery, computer
technologies which help to increase productivity in the market. Technological factor has positive
impact on the company performance. It also uses social media to promote their product in the
market. It helps to enhance overall productivity and also help to enhance their performance in an
industry (Van Vuuren, Roberts-Lombard and Van Tonder, 2012).
Based on the consumer needs they need to provide appropriate and good quality product.
Asda maintain brand identification in an industry because it provides good and efficient quality
product to the client. To maintain brand recognition in an oraganisation they need to follow
various tuyes of strategies and approaches in the product. It helps to enhance the productivity
and also help to increase productivity in an industry. They promote their product by using the
social media and computer services to increase the productivity in the market.
Asda has good brand image in the world. They have an opportunity they can easily tie up with
the other business to create innovative strategies to sell their product globally. They have many
stores in different countries so that they can easily merge with other bushiness to get higher
performance in a market. Food products of Asda has high rate of food products so they ned to
reduce the price which help to get higher productivity in a market.
Weaknesses Link with opportunities and threats
Food products of the Asda is very high in the market so they need to reduce their prices
to increase overall performance in an industry. They should provides innovative products to the
customers which help to increase their productivity in a market. They should provide appropriate
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offers, scheme with existing products to attract the customers in the market. It will give more
enhancement to the business and also help to increase their productivity in an industry. They
should improve the quality and also need to reduce the cost of a product to increase overall
productivity in a market (Wilden and et.al., 2013).
By satisfing customer by poviding an effective and good quality product the company
can expand their business in the market . Asda has many competitors in an industry so they need
to apply different and innovative strategies and approaches. HR manager has a responsibility to
provide appropriate training and development to an employee so that they can easily produce a
product based on the customer needs. By providing effective and appropriate training to an
employee that helps to increase overall performance of the firm in a market.
Asda firm products and services has higher cost in the market so some of the peoples cannot buy
it. They need to reduce a cost to increase the productivity in the world. To overcome the threat
they need to provide innovative product at cheaper rate which help to increase the productivity in
a market. They also need to provide appropriate training to the employees so that they can easily
innovate an item.
CONCLUSION
Effective business environment helps to increase the overall performance and also help to
expand a business in an industry. There are different types of companies in the market such as
private, public and charity. Each has different rules and regulations to run a company in an
industry. Asda provide good quality grocery and food products to the clients. Based on the
consumer needs they provide the particular product to increase the overall performance in a
market. Asda has a brand recognition in the market because it provides appropriate and good
quality product to the customers. Department of the company has a responsibility to give more
contribution to get desired goal. By applying advanced technologies they can easily get higher
performance in an industry.
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Van Vuuren, T., Roberts-Lombard, M. and Van Tonder, E., 2012. Customer satisfaction, trust
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Online
ORGANIZATIONAL CHART 2016. [Online] Available through
<http://www.wscc.nt.ca/about-wscc/governance/organizational-chart>.
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