Unit 1: Exploring business
Assignment 2
Examine the environment in which business operates
Asda
Asda is one of England’s leading retailers with over 632 stores across the country.
Asda was founded in the 1960’s in Yorkshire by peter Asquith and noel Stockdale
which led to the beginning of a fantastic retail partnership. Asda operates within 4
countries those being England, Scotland, Wales and Northern Ireland.
Pestle
A pestle analysis is a way to analyse external factors within a business. It is
important for a business to complete a pestle analysis because it helps them
understand all the factors of the world that they have to link within their business.
Political
By introducing new laws, the government, the government will act on the on the
activities of Asda and this will have a large impact on the business. For example, an
act which stops Sainsburys selling plastic single use bags.
Government
The current political party in government is the conservative party whom believe in
traditional British values. The conservative party has raised to the minimum wage to
£9.50 due to the current economic crisis. Taxes have also risen by 25%.
The UK government offer lots of funding for business’ start up successfully such as
grants, loans, mentoring and consulting are some of the things the government may
offer you when starting up a new company. Grants are awarded to certain business
and do not need to be repaid a grant can be applied for via the internet. Government
loans lend money to businesses to support the economy due to it being a loan the
money borrowed will have to be paid back to the government. When you start setting
up your first business the government may also send someone to help and guide
you through such a difficult stage for the business.
Support may be offered to ASDA when they are opening a new store in a specific
location, they may do this as they are providing lots of new jobs to the people in the
local area. These tax rises will lower the profit of ASDA greatly in the coming winter
meaning that they will lower the amount of revenue they will make in this last quarter
of the year.
1
,Unit 1: Exploring business
Assignment 2
Brexit/EU
The European union is a group of countries that create laws for those in the union
and allows ease of trade between the countries. The United Kingdom leaving the
European union will affect how Britain trades between countries and can affect the
prices of all goods we import and all the goods we export to different countries.
Due to Brexit and England no longer being a part of the European union which has
led to higher prices on imported products. due to this they have raised prices on their
products meaning they have lost consumers to cheaper supermarkets as well as
wholesalers. This is due to complications in talks between the UK and the E.U about
trade routes and pricing for the other European countries to export goods and have
them be delivered to the UK. as now they are no longer part of the EU they want to
charge a premium on their products.
Since leaving the EU the pound has fallen in value significantly compared to other
currencies. this has left a negative outlook on the UK economy and has driven away
a lot of foreign investors.
2
, Unit 1: Exploring business
Assignment 2
Covid-19
The worldwide pandemic had made it harder for ASDA to communicate with their
shareholders who are from different countries. This has helped them to realise
communication with shareholders is incredibly important as without them the
business may struggle to understand what is not liked within the business making it
harder to know what they will need to change. Due to the pandemic profit varied from
shop to shop and online shopping became more prevalent through the pandemic.
The pandemic caused some ASDA stores to close due to a lack of profit and
customers. Typically, this being the smaller stores which really rely on all their local
customers to keep the shop going. But there delivery service has kept ASDA alive
despite those troubling times.
Economic
Employment
The current UK employment rate in the UK is 75.7%. if the current employment rate
where to grow it would lead to more competition for jobs and would make the job
market even more competitive meaning that it would drive interest into any available
jobs at ASDA.
If the employment rate where to decrease this would lead to less employees and
less people wanting or having interest in any job ASDA would like to offer. This will
lead to a higher demand from current employees causing more stress which
becomes a downward spiral and leads to dissatisfaction from the employees which
may lead to strikes and other things of similar inconvenience to the business and to
the consumers.
unemployment
3
Assignment 2
Examine the environment in which business operates
Asda
Asda is one of England’s leading retailers with over 632 stores across the country.
Asda was founded in the 1960’s in Yorkshire by peter Asquith and noel Stockdale
which led to the beginning of a fantastic retail partnership. Asda operates within 4
countries those being England, Scotland, Wales and Northern Ireland.
Pestle
A pestle analysis is a way to analyse external factors within a business. It is
important for a business to complete a pestle analysis because it helps them
understand all the factors of the world that they have to link within their business.
Political
By introducing new laws, the government, the government will act on the on the
activities of Asda and this will have a large impact on the business. For example, an
act which stops Sainsburys selling plastic single use bags.
Government
The current political party in government is the conservative party whom believe in
traditional British values. The conservative party has raised to the minimum wage to
£9.50 due to the current economic crisis. Taxes have also risen by 25%.
The UK government offer lots of funding for business’ start up successfully such as
grants, loans, mentoring and consulting are some of the things the government may
offer you when starting up a new company. Grants are awarded to certain business
and do not need to be repaid a grant can be applied for via the internet. Government
loans lend money to businesses to support the economy due to it being a loan the
money borrowed will have to be paid back to the government. When you start setting
up your first business the government may also send someone to help and guide
you through such a difficult stage for the business.
Support may be offered to ASDA when they are opening a new store in a specific
location, they may do this as they are providing lots of new jobs to the people in the
local area. These tax rises will lower the profit of ASDA greatly in the coming winter
meaning that they will lower the amount of revenue they will make in this last quarter
of the year.
1
,Unit 1: Exploring business
Assignment 2
Brexit/EU
The European union is a group of countries that create laws for those in the union
and allows ease of trade between the countries. The United Kingdom leaving the
European union will affect how Britain trades between countries and can affect the
prices of all goods we import and all the goods we export to different countries.
Due to Brexit and England no longer being a part of the European union which has
led to higher prices on imported products. due to this they have raised prices on their
products meaning they have lost consumers to cheaper supermarkets as well as
wholesalers. This is due to complications in talks between the UK and the E.U about
trade routes and pricing for the other European countries to export goods and have
them be delivered to the UK. as now they are no longer part of the EU they want to
charge a premium on their products.
Since leaving the EU the pound has fallen in value significantly compared to other
currencies. this has left a negative outlook on the UK economy and has driven away
a lot of foreign investors.
2
, Unit 1: Exploring business
Assignment 2
Covid-19
The worldwide pandemic had made it harder for ASDA to communicate with their
shareholders who are from different countries. This has helped them to realise
communication with shareholders is incredibly important as without them the
business may struggle to understand what is not liked within the business making it
harder to know what they will need to change. Due to the pandemic profit varied from
shop to shop and online shopping became more prevalent through the pandemic.
The pandemic caused some ASDA stores to close due to a lack of profit and
customers. Typically, this being the smaller stores which really rely on all their local
customers to keep the shop going. But there delivery service has kept ASDA alive
despite those troubling times.
Economic
Employment
The current UK employment rate in the UK is 75.7%. if the current employment rate
where to grow it would lead to more competition for jobs and would make the job
market even more competitive meaning that it would drive interest into any available
jobs at ASDA.
If the employment rate where to decrease this would lead to less employees and
less people wanting or having interest in any job ASDA would like to offer. This will
lead to a higher demand from current employees causing more stress which
becomes a downward spiral and leads to dissatisfaction from the employees which
may lead to strikes and other things of similar inconvenience to the business and to
the consumers.
unemployment
3
