Business Environment Analysis: ASDA and Hilton Hotel Comparison

This report provides a comprehensive analysis of the business environments of ASDA and Hilton Hotels, examining their contrasting business activities, purposes, and organizational structures. The report delves into the influence of various stakeholders, including employees, customers, and owners, on the companies' objectives. It further explores the impact of economic, political, social, and legal factors on ASDA's operations, comparing the challenges faced in different economic environments. The analysis includes strategic planning, organizational structures and the effects of changes in economic, political and social factors on business strategies. The report concludes by highlighting the importance of effective business activities in achieving organizational goals and adapting to changing external environments.

The Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ASSIGNMENT 1.............................................................................................................................3
TASK 1............................................................................................................................................3
1. Describing contrasting businesses activity and purpose .......................................................3
TASK 2............................................................................................................................................4
1. Describe different stakeholder influence the purpose of business of ASDA and Hilton hotel4
2. Different stakeholders seeking to influence the aim and objectives of firms..........................4
3. Evaluating influence that different stakeholders exert at ASDA ............................................4
TASK 3............................................................................................................................................5
1. Comparing and contrasting the chosen firms...........................................................................5
TASK 4 ...........................................................................................................................................5
1. Achieving aim and objectives..................................................................................................5
ASSIGNMENT 2.............................................................................................................................6
TASK 1 ...........................................................................................................................................6
1. Describe the influence of two contrasting economic environment on business activities.......6
2. Compare the challenges of business activities in two economic environments......................6
TASK 2............................................................................................................................................7
1. Describing the way in which political, social and legal factors affect business activities.......7
2. Evaluating the way in which future changes in economic, political and social factor may
affect the strategy of business......................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business environment is a combination of internal and external factors that influence a
company's operating situation. In the present report, chosen organization is ASDA and it is one
of the largest retailers in UK. Reason behind the success of ASDA is their ability to create basic
structure of their own business. Report is based on the description of business activities and
business purpose to meet their aim and objectives. Further, in this report, impact of political and
legal factors on organization are studied.
ASSIGNMENT 1
TASK 1
1. Describing two contrasting businesses
Business activities of ASDA are as follows:
 Marketing: Marketing is an ongoing daily activity by keeping the business name in front
of its customers. There are different types of marketing such as online, traditional,
relationship, etc. Through online marketing, ASDA earns higher profits by making
company’s website of their business.
 Hiring employees: Hiring employees for organization is an important operation for
future expansion (Adeoye and Elegunde, 2012). ASDA hires employees to sell their
products in the local and global market. Employees are important because they work a
lot for company to achieve specified goals.
Purpose of ASDA is to ensure that all business activities are carried out efficiently. It is
important to achieve the predetermined aim and objectives of company and increase market
demand of their product. ASDA is basically private limited company. While, on the other hand,
Hilton hotel is a public limited firm. Their key stakeholder are shareholders, business partner,
employees, etc. Organization’s ownership is not shared by others because it is private limited
company.
Business activities of Hilton hotel are as follows:
 Customer service: Hilton hotel’s main activity is to provide the best service to customers
for their satisfaction and to retain them. Company offers luxury room and free service to
their customers so that they would come again in their hotel.

 Interior planning: Interior decoration of company should be attractive and beautiful so
that customers will feel happy by coming in their hotel.
Purpose of Hilton hotel is to achieve its set goal and provide high quality services to
customers for earning higher revenue. They give training to employees so that they would treat
their customers in a well manner and solve their problem. Key stakeholders of Hilton hotel are
customers, competitors, intermediaries, etc. Ownership of Hilton hotel is held by different
partners because it is a public company
TASK 2
1. Describe different stakeholder influence the purpose of business of ASDA and Hilton hotel
Many stakeholders are there that influence the purpose of business of ASDA and Hilton
hotel. The major one among all are as follows:
 Employees: Employees of ASDA and Hilton hotel are important for achieving its
objectives and goals as without their efforts, it would not be possible. This is the reason;
they are considered as the most valuable assets of company.
 Customers: ASDA and Hilton hotel are required to meet the demands of customers.
They are the key to gain success in organization (Chang, Ittner and Paz, 2014).
Customers are indirectly linked to corporation and they seek for the information related
to new product and offerings of the same. Owing to this, they gather information related
to latest offers and other updated products in order to meet their own expectations.
2. Different stakeholders seeking to influence the aim and objectives of firms
Major stakeholders of ASDA and Hilton hotel that are seeking to influence their aim and
objectives are:
 Owner: Owner of ASDA and Hilton hotel are the individuals who have invested their
finance to set up the business. He has the power to utilize the revenue and profit of
company in any manner for achieving specified aim of company.
 Customers: ASDA and Hilton hotel aims to provide best services and products to their
customers (Dowling and Moran, 2012). They also ensure that the product that is
delivered to customers is of good quality.

3. Evaluating influence that different stakeholders exert at ASDA
Stakeholders that influence ASDA are as follows:
Employees are the internal stakeholders of ASDA and they are important because they
have direct contact with customers (Iskanius, Page and Anbuudayasankar, 2010). It helps in
bringing more customers to buy their product. Employees can influence the success of ASDA by
increasing their productivity and efficiency in job.
TASK 3
1. Comparing and contrasting the chosen firms
Comparison between ASDA and Hilton hotel is as follows:
BASIS ASDA HILTON HOTEL
Purpose Purpose of ASDA is to provide
high quality of products and
services at cheap price to
everyone.
Provide luxury services to
customers to earn higher
revenue.
Ownership organizational
structure
Hierarchical structure has been
adopted by ASDA.
Organizational structure of
Hilton hotel is of matrix
structure.
Strategic planning Establish objective and
formulate a plan to achieve
success.
Implementation of innovative
strategy to render high quality
services to buyer and creating
competitive edge of business.
TASK 4
1. Achieving aim and objectives
Organizational structure helps to achieve purpose and aim of business effectually by
properly organized functions. Tasks are divided among employees according to their skill and
position so that they would perform their best for ASDA. Organizational structure helps to
delegate the tasks in an effectual way.

Strategic planning helps to formulate a systematic plan to achieve the set goal within
stipulated time period and in the desired manner. This planning ensures to determine right
activities for achieving success (Juščius and et.al., 2015). Through strategic planning, activities
which are performed on daily basis will be decided and implemented.
ASSIGNMENT 2
TASK 1
1. Describe the influence of two contrasting economic environment on business activities
Two economic environment that have influence on business activities are financial
growth and recession which are explained as below:
When economic growth of the nation in which ASDA is operating increases, more goods
will be produced for earning higher profits (Keillor, 2013). At the time when economy is in
sound condition, customers want more products as they can spend higher money on the same.
However, ASDA does not make any profit at the time of recession. They manage by
offering products of their company at cheap price to customers for surviving in the market. Time
of recession is very difficult for ASDA because consumers cut down their spending on products
as their cost of living increases but wages do not. Company struggles a lot in this situation. They
have low budget that has to be spent carefully so there will be no negative impact come on the
image of business.
2. Compare the challenges of business activities in two economic environments
Availability of raw material and labor of ASDA are impacted by economic environment
because there is less readiness of raw material which makes it difficult for company to meet the
demand of costumers. Firm also has to make sure that whether they are producing a product in a
cost effective way or not. Sometimes, raw material required to make product is available in the
market at higher price or not in the budget in which they want to buy. This impact can affect the
stability of organization in market. Company is required to forecast the way in which they will
manage their business activities in the coming months.
When economy is stable, firm can borrow finance for expanding their business in an easy
way as constant economic condition means that they can take decision effectually as there is not
risk of fluctuations that may occur in the economic condition on frequent basis.

TASK 2
1. Describing the way in which political, social and legal factors affect business activities
Factors that have their impact on business activities and the stakeholders of ASDA are as
follows:
 Political factor: Political factor includes taxation that has great impact on ASDA. This
company operates in retail sector which is a huge industry. So it has to pay higher tax to
the government. It reduces the amount of dividends of shareholders as profit of company
gets decreased due to paying higher taxes. Furthermore, trade barriers and other related
regulations tend to affect business performance to a great extent.
 Social factor: Customer’s tastes and preferences along with attitude and demographic
comes under the social factor. It influence the business activity in a positive and negative
way. For this purpose, corporation conducts research activities in order get update from
buyers so that accordingly, product can be modified on right time.
 Legal factor: There are many types of laws made by the UK firm which affect business
activity. For this purpose, corporation need to abide by all regulation set by government.
It facilitates to ensure ethical conduct of business with increased rate of return. In case of
non-compliance of regulatory framework business performance can be affected
negatively.
ASDA's regular business activities and operations are highly affected by the internal as
well as external business environment. Therefore, it is essential for managers to meet the
objectives of different stakeholders by taking appropriate actions. Its managers are following UK
environmental laws and principles to provide safe and secured environment to the public. With
this respect, waste management, reuse of scrap and reducing carbon emission are the several
steps taken by company to assure environmental security for community (Koufteros, Peng, and
Peters, 2014). Moreover, in order to satisfy the social needs, firm takes into account customer’s
preferences and their tastes and accordingly, design the product for them. In addition to this,
investment in research and development enables the business to launch a new product as per
customer’s requirement which in turn results in higher consumer satisfaction.
Further, ASDA is also complying with the regulatory rules and regulations in their
business practices. For instance, they file their taxation return timely and pay appropriate amount
of taxes on their net earnings. Along with this, it also performs their operations legally, ethically

and in public interest. Furthermore, company is strictly abiding with the workplace safety
principle, minimum wages act, equal employment opportunity act, no discrimination policy, etc.
which help in fulfilling the objectives of personnel. Besides this, training and development
programs also give advantages to the workers to enhance their skills and knowledge to become
experts.
2. Evaluating the way in which future changes in economic, political and social factors may
affect the strategy of business
If UK government reduces the tax rate then ASDA will earn higher profits. With the
support of government, organization can make efforts for reducing the poverty from country
because government made changes in their laws such as minimum wages rate, discrimination
act, etc. On the other hand, social factors such as changing tastes and preference of buyers also
affect the business strategy because company requires to change it products and services
accordingly.
CONCLUSION
From the above report, it can be articulated that if business activities are performed
effectively, it help in achieving the targets on time and in the desired manner. Stakeholders such
as employees, shareholders and customers also have a great influence on the success of business.
Further, report has shown that organizational structure and strategic planning also affect the aim
and objective of company.

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