Comprehensive Report: ASDA's Business Environment and Strategy

This report provides a detailed analysis of ASDA's business environment, focusing on its market structure, key responsibilities, and the various commercial, resource-related, and environmental dynamics that influence its organizational functioning. The report begins with an introduction outlining the scope and purpose of the analysis, followed by an examination of ASDA's internal and external environments. It incorporates PESTLE analysis to assess the impact of political, economic, social, technological, legal, and ecological factors on ASDA's operations. Furthermore, the report employs SWOT analysis to evaluate ASDA's strengths, weaknesses, opportunities, and threats. The analysis explores the interrelationship between organizational dynamics and the macro environment, highlighting how external factors influence ASDA's performance and strategic decisions. The report concludes by summarizing key findings and offering insights into the challenges and opportunities facing ASDA in the retail market.

REPORT ON BUSINESS AND BUSINESS ENVIRONMENT
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Executive Summary
Business Environment is the core constituent of the entire systemic architecture which forms the
basis of the effective and efficient management of any business process. Business Environment
is an integral part of the business scenario that determines the type of business process that could
gain the maximum traction in the existing concurrent market related imperatives. Both the
internal and the external stimulants in the form of financial implications influence and shape the
business organizational activities when such functionalities are performed in the context with the
product propagation responsibilities to launch and promote the sales percentage concerning the
product offerings under the targeted market segments. In this particular thesis study assignment,
the business environment of ASDA, a retail operative of the United Kingdom is analyzed with
respect to some of the factors such as Market structure, key responsibilities associated with the
company under consideration and the various commercial and resource related and
environmental dynamics that influence the organizational functioning of the entire business
entity, both on a short and on the longer perspectives.
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Table of Contents
Introduction......................................................................................................................................4
Assignment 1...................................................................................................................................4
An insight into the dynamics of the organisation............................................................................4
Task 1 (Refer to PPT)......................................................................................................................4
Task 2 (Refer to PPT)......................................................................................................................4
Assignment 2 Insight into macro environmental impact.................................................................5
Task 1 Positive and negative influence...........................................................................................5
1.1 Dynamics of macro environment upon business operations.....................................................5
Task 2 Outcomes of specific businesses..........................................................................................6
2.1 Environmental analysis of ASDA.............................................................................................6
2.2 Interrelationship between organisational dynamics and macroenvironment.............................7
Conclusion.......................................................................................................................................8
Reference List..................................................................................................................................9
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Introduction
This assignment covers the scope, arena, business purpose of organisations. This coverage helps
in analysing the contribution of the organisations in terms of customer satisfaction. As a matter
of specification, it proves beneficial in assessment of their functionality. Insight into the scope
enhances the corporate social responsibility of the organisations.
Assignment 1
An insight into the dynamics of the organisation
Task 1 (Refer to PPT)
Task 2 (Refer to PPT)
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Assignment 2 Insight into macro environmental impact
Task 1 Positive and negative influence
An organization’s operations and success is influenced by various factors that make or break its
internal and external business structure in terms of funds allocated or office environment. Macro
environment factors are external factors that influence business decision making process and
affects ASDA’s performance and strategies. To be successful, ASDA not only needs to identify
these macro environment factors that it functions within but also to understand them and forecast
changes. Macro environment factors cannot be directly controlled by organizations but can be
controlled and manipulated for growth and benefit and includes competitors, changes in tax laws,
government regulations, changing consumers’ tastes and needs, etc (Truelove et al. 2014, p.134).
1.1 Dynamics of macro environment upon business operations
The macro environmental factors can be identified by PESTLE analysis.
Political: Political factors are hidden from the general view and silently affect the business. It
can create opportunities for organizations while conversely also create obligations and threats. It
concerns both local and foreign policies and regulations on import or export. Legislations related
to minimum wages or anti discrimination laws, tax levied or imposed, trade agreements and
activities of NGO are factors influencing businesses in some order. Government intervention
defining Uber’s rate charge is politically motivated factor affecting its freedom of setting own
rates.
Economic: Economic factors that are driven by national or global economic growth or
breakdown affects business organizations such as ASDA. Local or global interests’ rates and
fiscal policy is set around current economic condition of the market. Economic recession
enforces Asda to cut operations cost or sack employees to sustain itself (Crane and Matten, 2016,
p.140 ). China is viewed as an important marketplace by electronics good industry such Apple,
Lenovo, LG, for its growing economy.
Social: Social aspects of society affect consumers’ attitude, interests and behaviour. Their needs
and desires are constantly changing under the influence of family, friends, colleagues and others.
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Social values define who or what they are, thus affecting the way they make purchases. People of
UK have been greatly concerned about their health and thus started avoiding processed foods
thus reducing the sales for fast foods and unhealthy meals (Dyllick and Muff, 2016, p.165 ).
Technological: Technology is ever changing and developing at an alarming rate enforcing
business setups to continually keep themselves updated. Technological development such as
wireless communication, speed transportation have increased information exchange thereby
creating opportunities but building pressures as well to meet increasing demands in limited time.
Legal: Legal factors entail regulations and legal obligations within which ASDA has to function
(Fleisher and Bensoussan, 2015, p.150). They define existing as well as new regulations in the
field of planning laws. Legal obligations of UK trade policy in the wake of Brexit have provided
greater opportunities for local businesses. While UK also has very specifically defined planning
laws that Asda has to comply with.
Ecological: Ecological factors influence business in the respect that business damaging the
surrounding ecology can draw negative public perceptions that can severely impact the business
organizations. UK directed all retail stores to ration the sales of vegetables in the wake crisis and
lower production of specific vegetables in countries UK imports from. In this aspect
organizations have monitor the impact on ecology such as reducing noise or air pollution
(Loorbach and Wijsman, 2013, p.25).
Task 2 Outcomes of specific businesses
2.1 Environmental analysis of ASDA
The internal and external analyses of ASDA can be formulated with the help of the following
analysis based on SWOT(Strengths , Weaknesses, Opportunities and Threats) based analysis of
ASDA:
Strength of ASDA: the strength of ASDA is based on the following merits in terms of ASDA
Company in concern. The capability and capacity to offer wide range wide range of goods or
commodities and services to the customers enabling in generation of huge amount of profits to
ASDA based organisation. It also has intense amount of advertising campaigns and product
promotion policies which is making it popular in the arena of management business and inter-
assocaited processes of management (De Medeiros et al. 2014, p.80). It is also seen or observed
that ASDA is efficient in making efficient the CRM(Customer Relationship Management)
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process more and more efficient in operations and its customer base is also improving widely in
terms of popularity of its business based ideals and principles of marketing management and
relevant procedures of work or principle. It is also efficient in serving employing a huge number
of employees of around 1,40,000.
Weaknesses of ASDA: Limited globalised presence and perspectives in terms of little globally
defined business makes it quite inefficient in the eye of business world is a major weakness and
loopholes and hurdle in the path of the organisation of ASDA (Pettinger, 2013, p.130).
Opportunities: Expansion of the area of market relevant to the goods or commodities produced
by ASDA is a huge opportunity cum advantage in the field of improving business environment
of ASDA organisation.
Threats: Pressures created in the market of ASDA for its low ability to create or design proper
price strategy of its products because of price war is hurdle in the path of business of ASDA.
Threats created in the market because of challenges of new competitors of similar patern are
another restraint in the path of profit maximisation by ASDA.
2.2 Interrelationship between organisational dynamics and macro
environment
The strengths and weaknesses of ASDA can be an important restriction in the way of business
performance which surely hurts the microenvironment of business world. The macroeconomic
infrastructure is dominated by various kinds of real and nominal variables of prices, interest rates
and output and investment or savings and they are connected with the SWOT analysis of ASDA
(Soni, 2016, p.147). For instance the price variable of the macro economy is related with the
business organisation of ASDA in case of the period of rising prices or inflation that is because
of the phenomenon of extra supply of money in the market the pressures on demand of ASDA
produce goods increase and so due to this abnormal condition of macro economy in terms of the
sales maximisation goal of ASDA by lowering of prices is not met and hence the repercussion is
felt in the entrepreneurial based strength or merit of ASDA (Collis and Hussey, 2013, p.144). In
terms of the threats faced by ASDA in terms of the entry of new competitors or rival firms in the
market process of ASDA, it will be forced to limit some sharing of its market because of the
place dominated by new firms of production and hence the SWOT analyses of ASDA is
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interlinked with the macroeconomic conditions of economy of country where ASDA dominates
or exists.
Conclusion
The point based on the theory of ASDA based business environment and climate of
administration has been fully analysed with identification and analysis of many kinds of business
based features and elements of market being determined by internal and external analyses in
terms of SWOT analysis and holistic market atmosphere based on business is being depicted in
the above analysis with utmost precision.
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Reference List
Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and
postgraduate students. Palgrave macmillan.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
De Medeiros, J.F., Ribeiro, J.L.D. and Cortimiglia, M.N., 2014. Success factors for
environmentally sustainable product innovation: a systematic literature review. Journal of
Cleaner Production, 65, pp.76-86.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization & Environment,
29(2), pp.156-174.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
Loorbach, D. and Wijsman, K., 2013. Business transition management: exploring a new role for
business in sustainability transitions. Journal of cleaner production, 45, pp.20-28.
Pettinger, R., 2013. Organizational behaviour: Performance management in practice.
Routledge.
Soni, Y.P., 2016. Organizational Restructuring. Xlibris Corporation.
Truelove, H.B., Carrico, A.R., Weber, E.U., Raimi, K.T. and Vandenbergh, M.P., 2014. Positive
and negative spillover of pro-environmental behavior: An integrative review and theoretical
framework. Global Environmental Change, 29, pp.127-138.
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