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    R/508/0486 - Environmental Factors Over The Decision Making Of ASDA

    University: Regent College

    • Unit No: 9
    • Level: Undergraduate/College
    • Pages: 8 / Words 1995
    • Paper Type: Assignment
    • Course Code: R/508/0486
    • Downloads: 707
    Question :

    The scenario of this report determines influence of macro and micro environmental factors over the business practices and its decision making. In this regard, it is required for firm to construct an effective strategy in order to reduce negative impact of such factors easily.

    • Determine different type of organisation as well as their size and scope.
    • Evaluate interconnection between different functional division of ASDA.
    • Discuss positive and negative impact of external environmental factors over the decision making of ASDA.
    • Analyse strength and weaknesses of ASDA as well as interrelation with macro factors.
    Answer :


    A business organisation can be framed but to refrain a business successfully, it is the requirement of business resources. Factors of business environment are ever-changing and dynamic. Hence, a business environment can be termed as entire institution, individuals along with forces which influence the firm's sustainability and their entire performance standard. This depend on the competitors, supplier, media, state, consumer group, market condition, trends, technologies and other associations performing externally in the constitution of their business environment (Agarwal, Grassl and Pahl, 2012). Business is obliged with whole manoeuvre of relevant environment along with require negotiation in more obliged manner. It is significant for every company to outline main business determinants of operations including consumer, partners, worker etc. Such practices assist in managing competitive business environment along with accurate enterprise revenues. Hence, the purpose of referred assignment is to analyse discrete aspects as well as influence of Asda i.e. one of the largest global retailing segments dealing with numerous markets. It will also assess nature, size and scope of numerous organisation types. It will light over the major interlink between numerous objectives and functions of organisation. With the help of these, it will also highlight different intrinsic and extrinsic environments of business.

    TASK 1

    Covered in PPT

    TASK 2

    P3 Relationship between different organisational functions and its link with organisation objectives

    This is fundamental for business enterprise to carry out certain objectives and aims of company accordingly for the purpose of achieving them within certain time span. Hence, it is paramount for firm to design plans and structure of organisation to determine objectives and authentic targets conveniently (Aterido, Hallward-Driemeier, 2011). Hence, Asda is operating their business in international market among approximate 165,000 staff member. It is also knowns as a multinational supermarket chain which is dealing in various market segments such as general merchandise, grocery and other financial services.

    Hence, it order to carry out numerous functions by Asda such as marketing and sales, human resource management departments, accounting and finance, HRM departments etc. Whole functions can help in attaining objectives of business by performing numerous activities altogether in more paramount way, it is structure of enterprise are associated with firm's function that is followed in Asda which are mentioned here:

    Marketing Department: Marketing is one of crucial division which is maintained through each and every company such as Asda to trade their products and service as well as create proper consumer awareness. This department disseminate the brand message and information delivering to the consumer in effectively through creating a proper interaction bridge (Auzair, 2011). Thus, this is linked with numerous other department which can help the organisation in accomplishing the basics of competitive advantages of organisation building market sustainability among other competitor enterprises. Hence, this division through creating brand awareness and promoting service, assist whole company in achieving business objectives in more significant manner.

    Human resource department: Managing personnel is as crucial within Asda as other components because it can help company in attaining business objectives through performing the basic activities. Human resource departments is liable for managing the requirements of personnel along with satisfying their needs to get optimum outcome out of motivating employee (Mahmood, and Hanafi, 2013). Thus, understanding its influence it can state that firm more satisfied worker helps in performing designed programs in best manner leading to the programs or business objectives attainment.

    Production and Operations: This is another fundamental division of Asda i.e. operated by company to manufacture services and managing the practices as per the requirement. It can create coherent interlink between structure that can assist in delivering the set design (Avramenko, 2012). Asda is rendering service production after assessing market in order to create and supply best services quality to the consumer. Asda is popular for dealing value added quality products in cost effective prices that has framed different recognition of organisation. Thus, notion affirms the importance of management and operation relevance in context of achieving business objective.

    Accounting and Finance: One paramount function of Asda is developing interlink with transactions of finance incurred in the company on regular basis. Major purpose of managing finance and accounting is to allocate the funds to different organisational department demand to operate activities in systematic way (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). Thus, by availing maximum utilisation of financial asset, performing survey and reach as well as creation of asset, Asda can meet their determined objectives and targets gaining more revenues.

    Research and Development: It is significant to carry out proper markets and consumer evaluation within the environment of business in order to outline the basic parameters of markets (Adeoye, and Elegunde, 2012). This division assist in conducting these practices in more significant manner as it can help in expanding and launching new strategy in market in more significant manner which can structure outcome accordingly.

    Therefore, Asda can assist in developing more effective competitive business environment as company is obliged to achieve targetted market perspectives as well as can help in maintaining distinct company activities properly. Hence, it provide different worth to such practices assisting in accomplishment of competitive edge and enhance productivity in more significantly.

    TASK 3

    P4 Positive and negative impact of Macro environment on Business operations

    Various determinants that exists in the business environment can influence the operations of Asda needed to outline to control the practices. In this regard, business environment is distinguished into two types i.e. intrinsic and extrinsic that influence of practice of business. But, in relation to both of these environment, there is less control over the external factors of firm's management. Both practices have positive and adverse influence on different practices and operations of company (Bar-Isaac, and Shapiro, 2013). This can impact on rules and policies that are conducted by administration. In relation of Asda, manager design different policies in regard of reducing the negative influence of such activities over the operations of company. Policies are crucial part that helps in attaining the negative and positive influence. Here are conducted PESTLE analysis to demonstrate negative components of Asda discussed as beneath:

    Political Factor: As per this, numerous distinct terms and policies have developed by UK government which limit the operations of company. Also, different nations consist of different policies and faces consequences of their political condition which is essential for Asda to understand before executing programs in nation.

    • Positive Influence: This is assisting to conduct the operations of business fundamentally along with containing free policies of trading that enable cost reduction while outsourcing. After Brexit, numerous decision undertaken in country has influenced the commercial sector so as Asda.
    • Negative Influence: If the new terms and policies will be implied in Asda, organisation will not be able to get required resource in minimum prices that can proven negative influence for business (Burns, and Winter, 2011). Also, commercial activities and relations among two and more nations can lead to several negative consequences while operating business.

    Economical Factor: According to this, several factors can influence the activities of business such as growth, inflation or deflation rates of certain nation. Entire these determinants consist of many perspective according to the country and Asda run operations of business in numerous nations. In relation to this, the influence over sales and evolution  of organisation is fundamental while economy improve (Hamilton, and Webster, 2015). This is necessary for manager of referred organisation to evaluate entire required changes that are needed in the existing environment of firm.

    • Positive Influence: Positive impact of economical determinants are vital such as in case of inflation, funds flow will enlarge within the organisation. This can prove assisting in terms of emphasising sales and benefits level within the company.
    • Negative Influence: As per this, environment is dynamic which alter constantly that can create various complications that is faced by Asda management of organisation.

    Social Factor: Each organisation is demonstrating effective resource optimisation from the environment, hence its is needed to return this as well (Boons, and Lüdeke-Freund, 2013). The preferences and taste of customers vary within short span of time to manufacture the services and products on the ground s of consumer demands in adequate manner. This can assist in determining entire practices that are fundamental to conduct by the help of this.

    • Positive Influence: This elements is assisting in delivering numerous business opportunities through satiating demands of targetted people or society. By this, organisation can enable emphasised and enhanced productivity within the enterprise.
    • Negative Influence: Asda need to improve the services and product chain that are structured in the form of destructive trends of society.

    Technological Factor: This is essential for Asda to adopt and utilise modified technologies in the business organisation for emphasising better product quality, decreasing the cost and time of operated activities (Commander, and Svejnar, 2011). The company operate their operations of business by opting advanced technologies that can enable operations more effectively. With the advanced technologies assistance, they can interact with their targetted consumer at the competitive marketplace persuading them for making purchase decision effectively.

    • Positive Influence: If Asda will utilise more modified and advanced technologies, they can reduce their cost of production and distribution and create a unique recognition of organisation among their potential buyers and consumer.
    • Negative Influence: More services and product cost invested on technologies ca be harmful as well as the technology is modifying each and every day.

    Legal Factors: This element include laws and legislation that are enacted by the UK parliament to control and monitor the commercial activities incurring in country (Chow, and et. al., 2011). Entire legal framework are assisting in safeguarding the interest and rights of employee in firm. This is fundamental for Asda management to execute entire needed laws in organisation to functions according to the circumstances.

    • Positive Influence: Legal components can help worker in deliver protection and fundamental individual rights at workplace along with safeguarding firm itself from any legal procedure for future purpose. Hence, this components shapes the reputation of firm within the market.
    • Negative Influence: There are numerous times, when entire laws can be avoided by company's management due to disinterest to adopt the certain laws that can lead whole company to negative consequences such as crisis, siege etc (Halbert, and Ingulli, 2011).

    Environmental Factor: This element is require due to the enlarging pollution issues, scarcity of raw material, carbon footprints etc. In this, this is fundamental for organisation to follow ethics and make more ecological operation conduction in regard of sustaining in market. Its influence can be identified through observing or evaluating the surroundings of business.

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