Marketing and Marketing Environment Analysis Report

This report provides a comprehensive analysis of Asda's marketing environment, examining both internal and external factors. It begins by defining the purpose and types of organizations, including public, private, and voluntary sectors, as well as legal structures like sole traders and partnerships...Read More

Marketing and Marketing
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1- Type in purpose of organisations..........................................................................................3
P2- Size and scope of the range of different type of organisation...............................................5
LO2..................................................................................................................................................6
P3- relation between organisational function and how they are interlinked..............................6
M1 – How structure scope and size of different organisation link the business objective and
product services offered by organisation.....................................................................................8
M2- Advantages and disadvantages of Inter relationship between organisational functions.....8
LO3..................................................................................................................................................8
P4 Pestle Analysis........................................................................................................................8
LO4................................................................................................................................................10
P5 Internal and external Analysis..............................................................................................10
P6 How strengths and weaknesses interrelate with external factors.........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The marketing environment conclude the internal factors like customers, retailers and
distributors, employees an shareholders, similarly external factors like political, technological,
social, economical factors have huge impact on the marketing operations of the company.This
report will cover case study of Asda, Which is British supermarket retailer who is having
headquarters in England. Services provided by the Asda are, Asda living, Asda mobile, George
And as the money. This report will explain the purpose and types of organisation including their
size and scope. It will explain the different type of functions at the workplace of Asda and how
they are interrelated with each other. this report will identify the positive and negative impact of
macro Environmental factors through the PESTEL analysis and it will also conclude external
and internal analysis of the specific organisation in order to identify the signs and weakness. in
the end of this report will explain how strength and weakness interrelate with the external macro
factors.
LO1
P1- Type in purpose of organisations
There are various type of organisation not have different way of doing their business and
different goals and objectives. mainly cover public private voluntary and legal structures, data
type of organisation.
Public
The term public sector or the enterprise refers to the government owned companies or the
nominees are by the government side represent the interest of the government on the board of
public sector enterprise. the public sector enterprise usually compete with the private sector
enterprise and the domestic as well as international markets. Asda is also an public sector
enterprise who are operating their business in national and international bought the market and
having a great reputation in the retail industry (Saura, J.R., Palos-Sánchez, P. and Cerdá Suárez,
L. M., 2017). Their main aim is to unprofitability but they usually work for the public and
provide them services and product that can add value in their life.

Private sector organisations
A private sector organisations are the part of economy that run by the companies or the
individual to earn the profit and they are non- state controlled. This kind of companies are
independent and mainly and to earn profit and grow their business effectively. Owner of the
business take all the decisions and they are responsible to select board member of the company.
The private sector companies can also collaborate with the government run agencies in
arrangement called public private partnership. Iceland food Ltd is on British supermarket chain
who is privately owned company and having 2.2% shares of UK food market. Sir McCallum
Walker he is the founder and chairman of the company and owned by himself.
Voluntary
Voluntary forms are non profitable organisation who are only work to provide benefits an help
the society. this type of bodies get donations from the people and government organisations and
they gave their support toward the society. Organisations within this sector can provide services
like Helping children’s, or old age people and people who don't have home or money
(Cusimano, S. and Sterner, B., 2019). It can include NGOs, civil society organisations and 3rd
sector organisations. British heart foundation Is the charity organisation in United Kingdom who
Raised a fund for people who are suffering from the heart problems and can't afford their
treatments. this kind of organisation help people through the charity.
Legal structure
Legal entities are various structures under which people may create a Corporation like soul
traders, private limited company and partnership.
Sole traders
Sole traders are the businessman who self employed or own the business with their own product
and services. A sole business Do not have any legal entity separate to its owner, leading me to
say that as sole trader they are only the business. Sole traders put their own capital within the
business to start a new business and they only share all losses and profits Which their business is
making.
Partnership

A partnership is the arrangement where the two parties or more than two partners agree to
cooperate to advance there mutual interests (Kotler, P., and et.al., 2017). Be partners in a
partnership may be individual, interest based organisation, business, school government and
combination of others businesses.
Private limited company
A private limited companies are the type of entity where the owner of the company have full
rights and control over the organisation. their main goal is to maximise their business
profitability and expand their business in other countries to grow their businesses. May
normative of companies too sell their product and services to earn probability in their business
and achieve success.all the profits a shared by the McCallum Walker who is the owner of this
business. the net income of this company in year 2019 was around 157 million pound.
P2- Size and scope of the range of different type of organisation
Each and every organisation have their own size and scope that provide benefit to them and help
them to grow their business. Entrepreneur scan start their business according to the scope and
size and type of their business. Here are different type of organisation including their size and
scope.
Public company size and scope
Public organisations have huge scope and business becausr they get charity from the state
government an employees who are working within the company can get the surety of their jobs.
They walked toward the public welfare and their main motive is to fulfil needs an demand of the
customers and add some value in their life. Asda is operating there business in various
locationsGlobally including the Middle East , China etc. currently more than 165000 Employees
are working under them and helping the company to expand Business.
Private company size and scope
Private companies within the United Kingdom has huge scope becausr millions and billions of
people having their own private company where they are all owners and share the oil profits.
they do not need to share their profits with others and expand business without any problem
(Gupta, C.B. and Nair, R., 2020). Size of this organisations, private organisation can expand their

business globally an employees limits can reach around 250000 Employees. Iceland plc is having
around Of locations within the United Kingdom and around 30,000 employees are working for
them. all the profits a shared by the McCallum Walker who is the owner of this business. the net
income of this company in year 2019 was around 157 million pound.
Voluntary company size and scope
Besides end scope of the voluntary company is limited becausr their main motive is to satisfy the
needs and demand of the society by helping them and fulfil their basic needs like food, shelter
and their treatment of diseases. This kind of companies work to help society and they are non
profitable and they're all charity money goes to the society for their welfare. Size off the
company is not limited becausr people who want to join this kind of organisation can attached
with this kind of organisations and give that support toward the society.
LO2
P3- relation between organisational function and how they are interlinked
Each and every function within the workplace of Asda are interlinked with each other, some of
the important functions of the company are marketing, operations, human resource management,
finance Department, sales and production Department. this all functions work together to provide
benefits to the organisation and help them to grow effectively. They all are interlinked to each
other and here is reason how –
Marketing
Marketing is the most important part of the organisation, that help Asda to identify their
customers who can buy their product and services and satisfy their needs. finding a customers
means expanding a business for the Asda. Marketing Department is also interlinked with the
other Department of the company like human resource Department, production, finance etc
(Saura, J. R., Palos-Sánchez, P. and Cerdá Suárez, L. M., 2017). For example- When finance
manager unable to find the sources of find for the company then they take help of the marketing
Department because they're having all information about the market And also having a good
relation with the investors who can invest for their company.

Finance Department
Finance Department is the Department who provide fund and budget to each and every
Department within the organisation, finance Manager is responsible to identify the sources of
funds for the company and they make budget according to the needs of every Department within
the Asda. this shows that this Department is interlinked with other important Department of the
company.
Sales Department
Sales Department is responsible to sell the product and services to the customers so companies
can earn profitability and grow their business. This Department is also interlinked with the other
functions of the company like marketing, marketing help the sales Department to identify the
customers , which increase the sales of the company and company can achieve their sales target
(Toklu, M. C., 2018). sales Department work is too sell the product to the right customer and
selling of goods means Achieving the objective for other important function of the company.
Production Department
Marketing Department and production Department are helpful for each other becausr marketing
Department collect the information from market related to the interest of buyers. Operational
Department interpret the necessary information and use that information too develop new
product and services according to the needs and demand of the customers. This is how both
Department are interlinked with each other and helpful for each other to achieve their goals and
objectives.
Operational Department
An operational Department ensure that the production process is completed from start to finish.
this production process need to line up with the goals and functions of the other Department
within the Asda company (Camilleri, MA., 2018). This is how this Department is also connected
with the other Department of the company and help as that to achieve their goals and objectives
within the business and satisfy the needs and demand of the customers.

M1 – How structure scope and size of different organisation link the business objective and
product services offered by organisation.
The structure scope of the different organisations are interlinked with the business
objectives and service becausr the main aim of the organisation is to Unprofitability an company
can only earn profitability if they are selling their product and services and able to satisfy the
needs and demand of the customers. In exchange of product and services company earned
profitability, which is there main objective (Petrunia, Y. And at.al., 2019).When finance manager
unable to find the sources of find for the company then they take help of the marketing
Department because they're having all information about the market And also having a good
relation with the investors who can invest for their company.
M2- Advantages and disadvantages of Inter relationship between organisational functions
All the functions of the organisations are interlinked with each other and help each other
to achieve their goals and objectives. there are some advantages and this word advantages of the
Inter relationship between those functions. advantages of the interrelation between the function is
that it help company to achieve success in their business on the other side disadvantages off
interrelationship between those function is, if any of the function failed to achieve their objective
than it also affect the other function of the organisation (Gollay, I. N. and etc.al., 2016). It is
necessary for the company to work all the function of the company equally and they have to
achieve their goals and objectives to make their company successful.
LO3
P4 Pestle Analysis
Political- This environment includes impact of government policy and political decisions on
Asda. Asda is a British supermarket political decisions and regulations of UK and political
stability in UK affect Asda and its operations. Brexit is one of the element that is included in this
environment of Asda and it is likely to have a negative impact on organisational performance.
This is because brexit created uncertainty in politics (Perera, 2017). However other than this UK
a has been considered as a politically stable country and this has positive impact on country as
well as business is operating in country.

Economical- economic factor or element is that affect and influence economic condition of an
organisation. Concern with political impact of this element UK has a strong economy and is
characterised by high GDP high purchasing power and all these are favourable for an
organisation and its success. However because of brexit has created unstable economic condition
because of which value of currency also reduced and cost of import increased. This also creates a
difficulty in importing material and goods from countries of European Union.
Social- social environment includes impact and influence that is mainly created by customers of
a organisation. Social environment of Asda cultural diversity of UK has a positive impact
because of which organisation gets several opportunities to serve different market segments and
attract customers from those market segments (Nandonde, 2019). Because of high skilled
manpower and educated population Asda can also employee skilled manpower which contribute
in effective realisation of organisational objectives. However increasing changes in consumer
behaviour and buying differences has negative impact on Asda.
Technological- this environment includes technological infrastructure within a country. UK has
one of the most developed and advanced in infrastructure and this has positive impact on Asda.
Infrastructure are very important for organisations and because star does not have effective
Technologies and because of this it cannot serve and sale its products to International customers.
Because of ineffective at inadequate Technology Asda is also likely to face difficulty expansion
of its business in other countries. Retail organisations are also focusing on improving online and
offline customer experiences and Technology plays important role in this.
Legal- this includes laws and regulations that govern and regulate business organisations. Laws
and regulations that are required to follow are employment regulations, fair trade practices,
taxation policies . This regulations and policies help organisations in maintaining and effectively
in maintaining and effectively carrying out there practices. However there are several policies
and regulations that can affect smooth operations of the organisation and can create difficulty for
organization and this is a negative impact of this environment.
Environment- This is concerned with physical environment and increasing emphasis on
sustainability and protection of environment has created and requirement for organisations to
carry out its practices without causing any kind of harm to environment (Haydock and Smith,
2019). Positive impact of which is that several sustainable practices that are employed by Asda

can positively affect it’s practices and also can have favourable impact on its cost. But on the
other hand because of environment sustainability and its protection organisations are requiring to
compromise with their conventional practices and this can lead to reduction in productivity and
increase in cost which is a negative impact of this environment.
LO4
P5 Internal and external Analysis
Internal and external analysis is concerned with analysing factors that exist within organisation
for all concerned with organizational effectiveness. Internal analysis also helps in identifying
what opportunities and threats are there in external environment of organisation. With the
purpose to identify strength and weaknesses of organisation SWOT analysis can be utilised.
Swot analysis of Asda is as follows-
Strengths
Wide range of product offerings- Asda offers several products and because of this company
Can attract customers from wide range of segments.
Effective marketing practices and promotional campaign- promotional campaign and
marketing practices are very important for success in present business environment. Asda has
effective practices for marketing and promotional campaigns of Asda are also effective and
appealing to its customers.
Socially responsible organization- Asda is socially responsible organisation and this is very
important to create a positive image of company in its market (Fisher, 2018).
Strong brand recognition- Company has a strong brand recognition and this is very important
for long term success of organisation.
Extensive distribution- Asda has several distribution networks across UK that distributes to its
stores in UK. This is also a strength of Asda because of which it can distribute products on time
while maintaining their quality.

Varied format of stores- this is another strength of Asda in which company e offers different
format of stores like Asda Super Stores, Asda super market, Asda living, George stores and Asda
essentials.
Effective connect with customers- this means that undertake several practices to maintain
constant touch with its customers. This is also important strength of organisation.
Weaknesses
Limited global presence- Asda have strong position in UK market but in context of global
market it has Limited presence. On the other hand some of the competitors of enter has a strong
presence in global market (Woo, 2018).
Critics- this means that Asda have negatively affected by critics regarding its quality and this is
a big weakness in which companies image got negatively affected.
Opportunities
Global expansion- This means that it has strong opportunity in which it can expand its
operations in global market. Strong image and students of UK can favour it in a global
expansion.
Acquisition of small organisation- This means that Asda can acquire small organisations.
These acquisitions will help in increasing its presence and will also reduce its competitors.
Increasing its presence in online market- online marketing getting very strong and customers
on online market are also increasing. Because of this it has a strong opportunity in online market.
Increasing demand for natural and vegetarian products- increasing demand of natural
products is also an opportunity to attract customers towards Asda (Vlados, 2019).
Threats
Economic recession- reception has a strong threat for Asda because it has affected purchasing
power of customers.
Frequently changing consumer behavior- frequently changing consumer behaviour is also a
threat for organisation because it creates challenges in coping up with consumer behaviour.

Increasing and intensifying competition- competition in Retail Industry is increasing and
getting more in intensified. In such competitive environment it has become very difficult for
organisations to survive and grow (Phadermrod, Crowder and Wills, 2019).
P6 How strengths and weaknesses interrelate with external factors
Strength and weaknesses of organisation has significant interrelationship with external
factors. This is because external factors offer opportunities and threats and in order to avoid
impact of threats organisational strength can very important. Along with reducing impact of
threats it is also important to have identified strength so that organization can utilise
opportunities that are there in external factors and enhance organisational performance. Incontext
of Asda it has a opportunity in form of expansion of if operations in in international market. This
opportunity can be utilised with its strength to perform with varied format of stores and also by it
effective marketing practices and promotional campaigns (Dandage, Mantha and Rane, 2019).
However there is an opportunity for a start to grow its business in online market but because of
limited technological development within organisation this opportunity cannot be effectively
utilised by Asda. This means that weakness of organization can affect its ability to utilise
opportunity and also create difficulty in realisation of opportunity. Weaknesses of organisation
can also increase impact of threats that organisation has in IT external environment. It is very
important that organisations by identify strengths in its external environment develop strategies
to avoid or reduce their impact. Strengths can also help in in reducing impact of threats such as
even though consumer behaviour is frequently changing but strong brand recognition of Asda
can help it in retaining customers of organisation. In order to understand relationship between
internal and external factors of organisation TOWS Matrix can be utilised. Application of TOWS
matrix for Asda is as follows-
Internal Factors
External factors
Strengths Weaknesses
Opportunities Wide range of product offering and
global expansion
Brand image and brand recognition
and global expansion
Extensive product offerings and
brand recognition can reduce
impact of critics
Opportunity in online marketing
can be affected by limited
technological development of

organisation
Threats Effective marketing practices can
help in dealing with increasing
competition
Wide range of product offerings can
help in dealing with frequently
changing customer behaviour
Critics can enhance impact of
threat from increasing
competition
Limited global presence can
also increase impact of
recession affecting financial
condition of organisation
This Matrix suggest that factors of internal and external environment are strongly related to each
other and also contribute in either in enhancing impact of positive factors and also so in
increasing impact of negative factors (Mugo and et.al., 2017). Strength and opportunity are
complementary for each other and having right strength to utilise opportunities can be very
beneficial for an organisation. On the other hand weaknesses and threats can significantly
unfavourable for Asda because these elements together can cause difficulty for organisation.
CONCLUSION
As per the report has been explained the purpose and types of organisation including their
size and scope of various organizations. it has been discussed about the different type of
functions at the workplace of Asda and how they are interrelated with each other and help each
other to achieve success for the company. this report has been identified the positive and
negative impact of macro Environmental factors through the PESTEL analysis and it also has
been concluded external and internal analysis of the specific organisation in order to identify the
signs and weakness. In the end of this report has beenexplained how strength and weakness
interrelate with the external macro factors.

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