Strategic Plan for Asda

ANALYSIS OF THE EXTERNAL AND INTERNAL ENVIRONMENT OF

ASDA

PART FULFILLMENT OF BACHELOR OF MANAGEMENT DEGREE

WOLVERHAMPTON UNIVERSITY

27 OCTOBER 2015.

INTRODUCTION OF ASDA

Asda is a British company founded in Leeds in 1949 as Associated Diaries and Farm Stores Limited.Asda is an acronym from Asquith Brothers when they merged their three supermarkets with the retail stores of Associated Dairies in 1965.The business has expanded from Northern England to the southern parts of the country.It was acquired by United States giant Walmart in 1999.

The mision of Asda is to be Britain’s Best Value Retailer exceeding customer needs everyday.Its Slogan is “Save Money and Live Better “ by being be low cost provider of a wide range of services that include groceries,financial services,mobile phones and furniture.

Asda enjoys 17% of the market share in United Kingdom.

DEFINITION OF STRATEGIC PLANNING

Asda needs to develop viable strategies for it to survive the competition under a constantly changing environment.

Johnson,Whittington and Scholes (9th Edition 2011) define strategy as a long term direction of an organisation.They say strategic planning involves analysing the factors outside the control of Asda and then making appropriate plans to survive given the Threats from the hostile environment,while also taking advantage of the Opportunities provided by the external environment.The External Environment is analysed by using Pestel Model and Porter’s 5 Forces Model.

PESTEL ANALYSIS OF ASDA

Conservative Government Pestel Analysis stands for Political,Economic,Social,Technological,Environment and Legal factors in the wider environment which have an impact on the business of Asda.Asda has no control over these factors,but it must analyse the factors so that it responds appropriately.

EXTERNAL ENVIRONMENT FACTOR | IMPACT OF PESTEL ON ASDA |

POLITICALEuropean UnionDevolution of powersImmigrationTaxesMinimum wage | * The Conservative Government has...