Comprehensive Analysis of Asda's Business Strategy and PESTLE Factors

This report provides a PESTLE analysis of Asda's business strategy. It examines the political factors such as trade barriers and government policies, highlighting their impact on Asda's operations. The economic factors discussed include economic stability, interest rates, and exchange rates, which significantly influence Asda's performance. Social factors, such as changing lifestyles and population growth, are also considered. The analysis further explores technological advancements, including emerging technologies and online shopping trends, and their effect on Asda. Legal factors like quality standards and competition legislation, along with environmental factors such as carbon footprint and environmental legislation, are detailed. The report concludes with a list of references to support the analysis.

Business Strategy Formative

Table of Contents
REFERENCES................................................................................................................................5

POLITICAL FACTOR
 Trade barriers: This is one of the most crucial factor which influence the Asda
company. The European Union in turn focuses on expanding business into various
European market which in turn creates a need to remove trade barriers.
 Government policies: Change in the government legislatives and political policies in
turn tends to have huge impact on the ASDA. Policies change on the taxation will in turn
largely influence the selling price of the products and services offered by ASDA.
ECONOMIC FACTOR
 Economic stability or instability: This factor plays a crucial role in influencing the
working of the Asda. The UK economy in turn has been experiencing economic problem
which in turn led to recession in the year 2008.
 Increase in the interest and exchange rate: Fluctuating interest and exchange rate in
turn has led to adversely affect the business operations of the Asda.
SOCIAL FACTOR
 Change in the lifestyle of individual: Taste and preference of the customers in turn are
continuously changing. It is very difficult for Asda to effectively analyse the need and
preference of the customers.
 Population growth: Increase in the growth of the population in turn eventually leads to
rise in the demand for the goods and services for the Asda. Frequent change in the
population in turn results in frequent fluctuation in the demand.
TECHNOLOGICAL FACTOR
 Emerging technologies: New range of technologies has been increasing at a very
increasing pace. This eventually leads to high degree of implementation cost for the Asda
company. Engaging with emerging technologies also results in increased training to use
the innovative technologies.
 Communicating with the right target market: This factor is considered necessary for
the Asda in order to identify the right target market. Large number of customers engaging

with the online shopping platforms in turn creates threat for Asda because it leads to
lower profitability and sales.
LEGAL FACTOR
 Quality and safety standards: Asda in turn is facing various concerns associated with
the quality merchandise and services. This in turn is mainly associated with stealing of
the design and pattern of the products and services of the Asda.
 Competition legislation: Asda in turn has been facing issues associated with various
retailers who in turn has been present in the market. Asda must comply with the
competitive legislations in order to function with utmost accuracy.
ENVIRONMENTAL FACTOR
 Carbon footprint: Supermarket chains are highly responsible for large carbon footprint.
Asda focuses on reducing carbon footprint. Asda shops are eco- friendly. 50% less
carbon dioxide and also 40% more energy efficient.
 Environmental legislation: There are various environmental policies and standards
within which Asda must comply in order to maintain and build company reputation.

REFERENCES
Books and Journals
Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's
mega-merger. Teaching Business & Economics, 22(3), pp.11-12.
Botes, J.A., 2016. Customer loyalty and employee enthusiasm: an eclectic paradigm for strategic
sales improvement at MB Silicon Systems (Doctoral dissertation).
Brunvall, K.L.J and et.al., 2016. Kiwi minipris: Export Marketing Consultancy
Project (Bachelor's thesis).
Debra Paul, D.Y. and Cadle, J., 2019. Business Analysis.
Warusawithana, T.M and et.al., 2017. Genetic Diversity Analysis of Traditional Rice
Variety'Pachchaperumal ‘Using SSR Markers.
Online
The Swot And Pestle Analyses Of Asda Marketing Essay . 2020. [Online]. Available
through:<https://icwhatsnew.com/1791-the-swot-and-pestle-analyses-of-asda-marketing-
essay/>