Global Business Environment Analysis: Asda PESTLE Report

This report provides a comprehensive PESTLE analysis of Asda, examining the external factors that influence its business operations. The introduction defines the business environment and its impact on companies like Asda, a British supermarket founded in 1949. The main body of the report delves into each component of the PESTLE framework: political, economic, social, technological, legal, and environmental factors specific to the UK market. The analysis highlights the UK's favorable political and economic conditions, while also addressing social considerations like consumer behavior and potential social issues. Technological advancements and favorable legal frameworks are also discussed. However, the environmental factors are considered unfavorable due to natural disasters and pollution. The conclusion summarizes the key findings, emphasizing the need for careful decision-making, especially regarding social and environmental factors. The report concludes with a list of references including books, journals and online resources used for the analysis.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE analysis.........................................................................................................................1
REFERENCES:...............................................................................................................................3

INTRODUCTION
Business environment are those factors which impacts a functioning of business (Widya
Yudha, Tjahjono and Kolios, 2018). It include both internal as well as external factors like
political factor, relationship between management and employees and etc. Asda is a British
Supermarket company which was founded by Noel Stockdale and J.W. Hindell in Leeds U.K. in
the year 1949. The following report covers PESTLE Analysis of Asda.
MAIN BODY
PESTLE analysis
PESTLE analysis is an external analysis of a company which tells what and how some
external factors impacts upon business. PESTLE analysis of Asda are explained below-
Political factors- This factor includes government policies, government stability, tax
policy, trade restrictions and many others (Nandonde, 2019) . UK has fair and stable government
which did not interfere in any corporate industry. Government made laws which have to be
followed by companies but beyond that they did not interfere in any business operations of any
company. There is no trade restrictions for UK based companies. Hence, political factor of UK is
favourable for Asda.
Economical factors- This factor includes inflation rate, exchange rate, unemployment
rates and etc. UK has a favourable economic conditions. The inflation rate is 0.70% and
unemployment rate is 4.12% in UK which is less than other countries. Hence, economical factor
of UK is favourable for Asda.
Social factors- This factor describes the behaviour of customer of a particular region
(Phan, 2021). It includes income distribution, age distribution, purchasing power of citizens,
their religions and many others. The UK people prefer high standard of living. Hence they are
ready to pay to live a better and qualitative life. On the other hand UK has to face few social
issues like strikes on inequality or discrimination among black and white people. Therefore,
Asda has to take careful decisions related to social factors.
Technological factors- It includes level of innovation, research and development,
automation and etc. UK is a developed and advanced country which is having updated
technology and innovative ideas to develop more in context of country's benefit. The rate of
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adoption of new technology is very high in UK which is good for the country. Hence, this factor
impacts positively upon Asda as they can use new technologies.
Legal factors- This factor includes laws of the country like employment law, safety law,
labour law and many others (Zahari and Romli, 2019). UK corporate laws are made for the
benefit of employees and workers like minimum wage is fixed, safety measures must be
followed by every company and etc. These laws are favourable for both organisation as well as
the employees (UK: Employment & Labour Laws and Regulations, 2020). Hence, legal factor of
UK is favourable of Asda.
Environmental factors- It include environmental forces of company like climate,
whether, pollution and etc (Phan, 2021). In context of UK, this factor is unfavourable for Asda
because UK is the country where natural disaster like storms occur many times in a year and air
pollution is high which cause 8.3% of deaths last year in country. Hence, economical conditions
are considered as unfavourable.
CONCLUSION
From the above information it has been concluded that political, economical, legal and
technological factors of UK are favourable for any organisation. Social environment is partially
favourable and environmental factor is unfavourable. A careful decisions must be taken by
companies in taking consideration of all this factors specially social and environmental factors
which are partially favourable.
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REFERENCES:
Books and Journals
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and
stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies. 11(5). p.1272.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.
Online
UK: Employment & Labour Laws and Regulations. 2020. [Online] Available through:
<https://iclg.com/practice-areas/employment-and-labour-laws-and-regulations/united-
kingdom>./
UK Inflation Rate. 2021. [Online] Available through:
<https://ycharts.com/indicators/uk_inflation_rate>./
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