ASDA Business Report: Internal, External Factors and Analysis

This report provides an analysis of ASDA, a large British multinational company, focusing on the interplay of internal and external factors impacting its business operations. It begins with an introduction to the business environment and then examines ASDA's strengths, such as its strong dealer network and brand portfolio. The report delves into external factors like political and economic conditions, including the impact of Brexit and inflation. It explores how these factors affect various departments, including finance, HR, and marketing. The report emphasizes the importance of PEST and SWOT analyses for long-term sustainability and profitability. Finally, the report suggests strategies for enhancing customer base and overall business performance within a competitive market, supported by references to relevant literature.

Introduction to Business Studies

 Introduction
 Internal factors
 External factors
 Internal and external factors
 Conclusion
 References
Table of content…

 Business environment refers to the integration of internal and
external factors that will affect the operations and activities of
the business enterprise. This report is based on ASDA which is
largest British multinational company in UK. It includes the
external and internal aspects of organisation and how it impact
the business several departments. the main purpose of
developing this is to enhance the customer base.
Introduction

Internal factor
Strength
 The major strength is their
strong dealer community that
means the company promote
the effective culture between
distributers and dealers so that
they promote the products and
services for enhancing sales. It
has strong brand portfolio.

External factors
 Political factor- As political
condition of UK is stable and
tax rates for the organisations
are less because of this
operating business by ASDA is
beneficial. But because of
Brexit many uncertainties occur
that will affect the trading in
other European countries.

 Economical factor- It include growth rate, GDP rate,
purchasing power etc. As growth rate of UK is high can gain the
disposable income due to which they are capable of buy the
goods by ASDA. Enhances inflation rate affect the profit margin
in negative way. in this employees are also expecting high salary
this will major threat for company because expenses are high
and this will affect profits. But it will affect positively because
increasing salary encourage employees for good working.
CONTINUE…

 Finance department- This department is majorly affected by
the external factor that is political factor. it inculcates the affect
of Brexit on company profits because due to this firm face the
issue in dealing with other European countries.
 HR Department- This factor relates with the weaknesses in
which this department can majorly focus on increasing the
salary of their employees for motivating staff members so that
they will give the productive results.
Internal and external factors

CONTINUE…
 Marketing department- In this
effective technology can be
adopted by the marketing
department for promoting and
attracting the millions of
customers towards their goods
and services so that high profits
can be gained by the ASDA in
their long survival.

 From above report it is to be concluded that doing analysis
based on external and internal factors by firm helps in longer
sustainability and gaining higher profits within the
competitive business market. In this organisation can adopt
the use of PEST analysis and SWOT ANALYSIS so that
potential of the business enterprise can effective examine.
After that it can includes with the several functional
department of company so that smooth functions can be done.
Conclusion

 Policy, P., 2018. What is pestle analysis.
 Jenkins, W. and Williamson, D., 2015. Strategic management
and business analysis. Routledge.
References

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