Global Business Environment Report: ASDA SWOT and Policy Impact

This report provides a comprehensive analysis of ASDA's business environment. It begins with an introduction to the global business environment and its influence on organizations, using ASDA as a case study. The report conducts a SWOT analysis, identifying ASDA's strengths, weaknesses, opportunities, and threats. It then delves into the impact of government policies, including political stability, taxation, and regulations, on business operations. The report further explores the effects of the business environment on various functional areas, specifically the marketing and operational departments, considering political, legal, economic, social, technological, and environmental factors. The conclusion summarizes the key findings and emphasizes the importance of considering environmental factors in business expansion and strategic decision-making.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 SWOT ANALYSIS.................................................................................................................3
LO2 Policy of government that affect business..............................................................................4
LO3 Impact of business environment.............................................................................................4
CONCLUSION...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global Business Environment is the environment in multiple sovereign countries that are
different from the environment of home countries and thus influence behaviour of organization,
the way the resources should be used. In this report ASDA has been taken as a company that is
supermarket retailer operating its business in British. This report explains about the internal and
external factors of business that affect the organization decision-making. This report also
discusses impact of government and changes in environment on the business organization.
LO1 SWOT ANALYSIS
Swot analysis help in identifying internal and external factors of business environment
that effect smooth functioning of business. SWOT Analysis of ASDA is as follows:
Strength: This describes the company is excelled or best in something that differentiates it from
other company in the market (Lohrke, Frownfelter Lohrke and Mazzei, 2018). ASDA strength
lies in its price promotional strategy as it provide quality products at reasonable price to its
customers. The company has wide, diversified and loyal customers due to good product
portfolio, offer wide choice to customer and have also patents its various technologies in order to
take competitive advantages.
Weaknesses: This is an internal factor that describes the negative attribute of the company or
the weak point where the company needs to improve its performance. ASDA presence in global
market is limited and few countries restrict it entry due to fear of increase competition. The
company use false advertisement such as “lower price on everything you buy” which negatively
impact on the company's image.
Opportunities: It such situation that put the company at a profitable position or stimulates
growth of the company. The company has various opportunities to expand its business oversea
and within its own the countries by making alliance with other companies. ASDA can grow its
business by selling products online, diversifying its product range that means can increase its
product range or its presence in financial services.
Threats: This includes all such factor that are not controlled by the company and can be proved
harmful or can cause damage to the company (Vigna and et.al., 2018). So the company should
identify such factor before its start or expand its business for the smooth functioning of
organisation. ASDA has facing increases competition from companies such as ALDI and LIDL
as they well known for discounts, so it may lead to decrease in market share of the company.

LO2 Policy of government that affect business
There are various internal and external factors of environment that affect the business
such as political, economic and legal which are related to government policies and rules and
regulation. These rule and regulation affect the business most adversely so the company should
consider such factors for smooth running of business. The government policy can affect business
are as follows:
Political Stability: Stable government encourages more companies to establish and expand their
business and promote foreign investors (Bassi and Duffy, 2016). If, the country’s political
system is not stable the economic growth decreases and will affect the business environment
negatively. So, it can be stated that political stability has an impact on decision-making of
business.
Taxation policy of government: The government imposed taxes on the produced goods or
services in order to raised revenue for expenditure. Any increases in tax rate discourage
investment as company are unwilling to invest in such countries due to less availability of profit
margin or there profit decreases. So, taxation policy of the government also affects the
functioning of business of ASDA Company.
Regulation: These all are related to government rules and regulation that affect the business
decision-making process (Agarwal, 2017). It includes Employment law, Health and Safety law,
trade and tariff regulation and various requirement of licence or permits for a business. So,
ASDS is also abided to follow such rules in order to run their business smoothly. However
effective and fair regulation promotes growth and successful operation of the business.
Economic environment: The policy of the government impact on the buying behaviour of the
customer, help in distribution of income and thus affect the company decision making. The level
of income and purchasing power help the business in setting of price, which product should be
offered etc.
LO3 Impact of business environment
Business environment consist both internal and external factor that effect the company so
a manager should undertake various such factor before planning its strategies.
Marketing department: There are certain factors that are beyond the control of marketing
department of ASDA so marketing strategies should be adapted as per the changes in the factor

as it may be a threat or opportunity for the company. So, how such factor affects the business
can be explained through (Głodowska, 2017).
Political and legal factor: It affects the marketing department of ASDA as the marketer has to
consider various policy and rules for preparing marketing strategies.
Economical factor: These factor affect also ASDA marketing department due to slow economic
growth customer spend less amount and the effort of marker increases to influence the
customers.
Social factor: It impacts the marketing department of ASDA as the marketing manager has to
make or change its strategies as per the need of the customers.
Technological factor: Any change in technology the marketing department should also have to
change its way of promotion or use updated method to promote product of the company.
Environment factor: This factor also affects the marketing department as by keeping in mind this
factor the marketer will promote products that are not harmful for the society.
Operational department: This department plan, organize and supervise the manufacturing
process or production process (Glavan and Vukšić, 2017). The way environment factor affect
them are as follows:
Political and legal factor: The production department should ensure that all rules and regulation
are followed during manufacturing of products or services.
Social factor: The operational department of ASDA should consider social factor as it help in
identifying needs of customer and thus satisfy them in the best possible manner.
Economical factor: This factor affect the operational department as it will help it in setting price,
minimizing cost of product etc.
Technological factor: This factor also affect operational department update its technologies to
use it in the operation and thus reduce cost of product.
Environment factor: It guides the operational to maintain the quality of product and ensure
health and safety of customers while manufacturing products.
CONCLUSION
From the above file it can be concluded that the business should consider various
environment factor before it expand its business across the world. The business should also
identify its strength, weakness, opportunity and threats in order to gain competitive advantages.
At last this report conclude that the environment factor effect the business organization.

REFERENCES
Books and Journals
Agarwal, A. K., 2017. How Can the Government Affect My Business?. In Business Leadership
and Law. (pp. 19-35). Springer, New Delhi.
Bassi, S. and Duffy, C., 2016. UK climate change policy: how does it affect
competitiveness. Policy Brief, Grantham Research Institute on Climate Change and
the Environment and the Centre for Climate Change Economics and Policy, May.
Benefits beyond Climate: Environmental Tax Reform. 57.
Glavan, L. M. and Vukšić, V. B., 2017. Examining the impact of business process orientation on
organizational performance: the case of Croatia. Croatian Operational Research
Review. 8(1). pp.137-165.
Głodowska, A., 2017. Business Environment and Economic Growth in the European Union
Countries: What Can Be Explained for the Convergence?. Entrepreneurial Business
and Economics Review. 5(4). pp.189-204.
Lohrke, F. T., Frownfelter Lohrke, C. and Mazzei, M. J., 2018, July. What Kinds of
Opportunities are We Providing Students? A SWOT Analysis Review with
Recommendations. In Academy of Management Proceedings. (Vol. 2018, No. 1, p.
15303). Briarcliff Manor, NY 10510: Academy of Management.
Vigna, I., and et.al., 2018. Phase change materials in transparent building envelopes: a strengths,
weakness, opportunities and threats (SWOT) analysis. Energies. 11(1). p.111.
Online
Frank Williams, 2019. The Effects of Government Policies on Businesses. [Online]. Available:
Through: <https://smallbusiness.chron.com/effects-government-policies-businesses-
65214.html>.