BM461: Business Environment Analysis of ASDA using PESTEL

This report presents a PESTEL analysis of ASDA, a global business operating in over 130 countries. It examines the political, economic, social, technological, environmental, and legal factors impacting the company. The report highlights how tax structures, economic crises, changing consumer lifestyles, technological advancements, environmental concerns, and employment legislation influence ASDA's operations and strategic decision-making. It emphasizes the need for ASDA to adapt to these factors, conduct market research, adopt new technologies, and maintain a strong corporate social responsibility to maintain a competitive advantage. The analysis provides insights into how ASDA can navigate the complexities of its business environment and capitalize on opportunities for growth and sustainability. The report concludes by summarizing the key findings and offering suggestions for ASDA's strategic response to the changing business landscape.

BM461 GLOBAL BUSINESS
ENVIRONMENT CW1
PORTOFOLIO

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Business environment factors and key drivers of change............................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business environment means all the internal and external factors that affect how the
company functions including employees, customers, management, supply and demand and
business regulations
This report will cover case study of ASDA store Ltd and it will explain business
environment factors and key drivers of the changes through the PESTEL Analysis.
TASK
Business environment factors and key drivers of change
PESTEL Analysis of Hotel Marriott
Political factors
Asda company is an international brand, and they are operating their business in more
than 130 countries (Nurmi and Niemelä., 2018). Every country have its own tax structure which
affect the pricing of their services. It is also a key driver of the change because company have to
change because company have to follow the polices of the particular country, and they have to
pay taxes accordingly.
Economical Factors
Economic factor has huge impact on the Asda company, when unemployment in country
increase then people can be ready to work in lower wages while employment reach to its best
then employees demand for the higher wages, and they have to increase the salary of the
employees (Mole, North and Baldock, 2017). It is also an key driver of the change because
Economic crises affect the business of Asda company badly, then leaders and managers have to
make new strategies and implement new technicology to overcome from Crises.
Social factors
Lifestyle and taste of the people change with the time and It is necessary for the
marketing team of the Asda company to conduct market research and collect the information
relate so they can develop their services and satisfy the needs of their customers. It is an key
driver of the change because change in lifestyle of the people can also bring change in
companies way of work.
Technological factors
Technicology is an important part of the Asda company because it helps to satisfy the
needs and make customers experience more better (Pan, Chen and Zhan., 2019). It is also an

key drive of the change because technicology trends also change and company need to adopt
new technology to stay in a competition.
Environmental Factors
Environmental factors can be beneficial for the Asda company ad it can also be
positive change drive because support toward the society and environmental issues helps to
create good reputation in the market (Hasbi and et.al., 2020). So it is necessary for the Hotel
Marriott to understand their Corporate social responsibility, so they can create good image in the
market and able to gain customers loyalty.
Legal factor
Every country have the different employment legislation and according to their rules and
regulation company have to provide employment to their people, and they also have decided the
minimum wages which they need to provide, so they can create good relationship the
government and expand their business in that particular country.
CONCLUSION
As per the report has been explained the business environment factors and key drivers of
the changes through the PESTEL Analysis. Each factors have been explained properly and
provide suggestion to the company about positive use of those factors.

REFERENCES
Books and Journals
Hasbi, H. and et.al., 2020. Effect of strength of the external environment and Islamic business
ethics on the performance of Islamic finance companies with intellectual capital
mediation. Management Science Letters. 11(3). pp.993-1002.
Mole, K., North, D. and Baldock, R., 2017. Which SMEs seek external support? Business
characteristics, management behaviour and external influences in a contingency
approach. Environment and Planning C: Politics and Space. 35(3). pp.476-499.
Nurmi, J. and Niemelä, M. S., 2018, November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer, Cham.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering.35(1). p.05018013.
Online:
Impact of external business environment factor, 2020. [Online]. Available Through:
< https://www.mageplaza.com/blog/what-are-internal-external-environmental-factors-that-affect-
business.html>.