Comprehensive PESTEL Analysis Report for Asda's Business Strategy

This report presents a PESTEL analysis of Asda, a major UK supermarket chain, evaluating the macro-environmental factors influencing its operations. The analysis examines the impact of political factors, such as Brexit and its effect on supply chains and labor, and economic factors, considering the company's employment and international expansion. Social factors, including consumer behavior and the use of digital media, are also explored. The report further investigates technological advancements, such as the use of the internet and databases, and environmental considerations like recycling practices. Finally, it addresses legal factors, including adherence to health and safety laws. The conclusion emphasizes the importance of PESTEL analysis for making strategic decisions in a competitive market. References include various books, journals, and online sources.

PESTEL Analysis

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
CONCLUSION.....................................................................................................................................4
REFRENCES........................................................................................................................................5

INTRODUCTION
PESTLE analysis is the essential framework that assist the strategic planner to
determine the macro environmental factors such as Political, Economic, Social,
Technological, Environment and Legal which can affect the functioning of firm (Andrei and
Prisecaru, 2014). So these are the key forces that can help Asda company to determine the
direction on which it can function and expand the sales of its retail store.
MAIN BODY
Pestle analysis of Asda company
Political factor:It refers to the sudden change and fluctuation in political condition
which impact the operations of firm. Like, Brexit has somewhat negative effect that erodes
the profit margin of various Supermarkets like Asda and Sainsbury by making the market
unstable. This has further threaten the supply chain by leaving few choices served at higher
prices. As most of the foreign worker were unsure of their future due to Brexit which leads to
migration that resultant into labour shortage. Even most of the firm find difficulty to find
right candidate for the right post (Mkude and Wimmer, 2015).
Economic factor : This determines the impact of different economic factors like
recession within the firm operates. As Asda serve with the United Kingdom which currently
employee the largest number of personnel. This can lead company to fill vacancy post by
desired candidate and expand its operation. Similarly, if the company expand its operation
beyond its territory then the fluctuations in foreign exchange will sharply affect purchasing
power due to expenses import and cheaper Exports.
Social factor : This depicts the attitude or behaviour of the customer towards product
which change on the regular basis. Asda offer the platform where local resident can come on
weekly basis and conduct bulk buying activities. Along with that use of digital media to
promote the brand and engage traffic is highly practice to enhance livelihood of people.
Further, home delivery services within stipulated time are highly encouraged amongst people
(LEYVA and et. al., 2018).
Technology factor: It leads to the investment that helps firm to use productive and
efficient way to run the business. The increased use of internet has led Asda to experience
potential growth via the website of company. Additionally, the strong use of database system

of company assisted them to understand increase demand of certain product like organic food
items. This further used in conducting both retail and online merchandise effectively.
Environmental factor: To ensure the positive impact on environment, Asda company
uses environmental friendly approaches that preserve the interest of internal parties as well as
external surrounding (PESTEL analysis of Asda. 2018). Along with a that recycling material
within the packaging of especially food items is the better technique that is highly used by
firm for almost all products.
Legal factors: This signifies the intervention of legislation imposed by local
authorities and is mandatory for all the organisation to abide by such laws otherwise they
may have to bear negative implications like high fines or suing the license. As Asda function
with UK, so it adhere by all the legal lases such as healthy and safety law. This ensure no
fines are imposed by government (Song, Sun and Jin, 2017).
CONCLUSION
From the above report it has been determine that to sustain in the competitive
environment it is vital for all firms to use the pestle analysis. This help them, to make
desirable decision based on external conditions.

REFRENCES
Books and Journal
Andrei, V. and Prisecaru, I., 2014. The Use of Pestel Analysis in Development of the
Romanian Geological Repository. UPB Scientific Bulletin (Series C). 76. pp.247-
254.
LEYVA, M. and et. al., 2018. A framework for PEST analysis based on fuzzy decision maps.
Revista ESPACIOS. 39(16).
Mkude, C. G. and Wimmer, M. A., 2015. Studying interdependencies of e-government
challenges in Tanzania along a PESTEL analysis.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-
energy incineration industry in China. Renewable and Sustainable Energy Reviews.
80. pp.276-289.
Online
PESTEL analysis of Asda. 2018. [Online]. Available
through:<https://www.howandwhat.net/pestel-analysis-of-asda/>