ASDA is usually conducting research to identify changes in the business environment and responding to the customer needs its research identifies.
Asda is one of the most prominent supermarkets in the UK. Consistent with most readings in the strategic management field, the external environment is viewed as comprising of the general environment, which is analysed using the PESTEL framework, and the task environment.
The competitive environment, a subset of the task environment, is scrutinised with the help of the five forces framework. On the strength of the analysis carried out, it is concluded that Asda faces a broadly favourable political and economic environment.
However, the legal environment is likely to increase compliance costs for the retailer. The technological, ecological, and socio-cultural environments provide threats that Asda must avoid, and opportunities it should exploit.
Asda also faces high rivalry, but low threats from buyer bargaining power, supplier power, potential entrants, and substitutes. Thus, the industry can be described as moderate to attractive for Asda. To attain sustainable competitive advantage, Asda needs to align its internal environment to the trends described.
To gain competitive advantage, it is imperative that organisations scan the external environment and calibrate their internal environment to achieve a fit with the external environment Nabyla, A brief conclusion is thereafter presented.
These factors include the rate of employment, the GDP, GDP growth rate, and the rates of inflation and interest, among others Henry, GDP trends in the UK. However, this growth has been muted and may not significantly increase retail demand.
After having grown by 1. Centre for Retail Research The rate of interest in the UK remains historically low, suggesting that consumers can easily take credit to finance consumption, boosting demand for retailers such as Asda.
These include the economic and political systems, political stability in a country, and factors such as trade agreements and barriers Henry, Here, private ownership of the property is guaranteed and demand and supply forces regulate both production and consumption and the allocation of resources.
This provides foreign firms such as Asda with the best economic environment, given that the market economy guarantees the protection of contractual rights and private property rights Williamson et al. The UK also follows a democratic system of governance CIA,which enjoins the strict observance of the rule of law and are accountability to citizens.
Therefore, this provides Asda with a more favourable environment for doing business as compared to, for example, an autocratic or constitutional monarchy system Williamson et al. The UK also has a long tradition of peaceful regime change and low levels of politically instigated violence. Consequently, it has been ranked among the most politically stable countries in the world.
This translates to low levels of political risk and minimises the cost of doing business for Asda Guardian, One of the notable trends is the rapid ageing of the UK population. This has been brought about by a rise in life expectancy levels due to factors such as better healthcareand a reduction in the rates of fertility.
Consequently, the fraction of senior citizens i. Corresponding to this is the reduction in the percentage of the youthful population in the UK.
ONS, See figure 3 below. ONS UK retail consumers are also increasingly demanding for convenience. This has been triggered by busier and increasingly complex lifestyles.
The upshot of this is that retail shopping has become increasingly fragmented Fagerhult, Another significant socio-cultural trend likely to impact Asda is the increase in the number of households headed by singles Barrett, The above socio-cultural trends are likely to affect Asda both positively and negatively.
The elderly segments are likely to trigger increased demand for anti-aging products, thus creating increased opportunities for sales in this area.
Simultaneously, the demand for technology, entertainment, and fashion products, which are mostly demanded by the youth, could possibly decline. This may reduce retail opportunities for Asda. The opportunities include expanding the scope of its markets and sales volumes without necessarily having to significantly invest in brick and mortar assets.
It also offers Asda the opportunity to save substantial costs through dis-intermediation of the distribution channels. However, the increased popularity of internet-enabled devices such as smartphones allows retail consumers to engage in comparison-shopping and in the hunt for bargains Fagerhult, Asda could lose price-conscious customers to lower cost rivals Fagerhult, Specifically, by adopting the use of RFID tags, Asda will be able to better track its inventory and promotions, thus enabling it to better control its promotional and inventory practices Davis, ‘Business’ and Its ‘Environment’ Introduction Every business organization has to interact and transact with its „environment‟.
The effectiveness of interaction of an enterprise with its environment primarily determines the success or failure of a business. Executive Summary.
This report analyses Asda’s business environment. Asda is one of the most prominent supermarkets in the UK. Consistent with most readings in the strategic management field, the external environment is viewed as comprising of the general environment, which is analysed using the PESTEL framework, and the task environment.
Here at Asda we believe that protecting the environment and saving people money go hand in hand. Working to make Asda a better business. Asda takes sustainability seriously . ASDA is the UK’s second largest supermarket chain, holding a % market share in the UK over / (Kantar Worldpanel, ).
It was purchased in and became a wholly-owned subsidiary of the US Public Limited Company, Walmart. In order to .
ASDA's responses to changes in its business environment Essay - Part 2. Task D1: ASDA’s responses to changes in its business environment - ASDA's responses to changes in its business environment Essay introduction. ASDA Group (ASDA) owned by Wal-Mart group company, is a grocery and general merchandise retailer in the UK.
ASDA is usually conducting research to identify changes in the business environment and responding to the customer needs its research identifies. One of the research models is PESTE (STEEP).
The PESTE model uses the five headings of sociological, technological, economic, environmental and political factors.