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Asda Swot Analysis

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Internal sources: • Retained profit – this is the profit kept by the company after the first profit has been given to the shareholders. In Asda, this profit could be used to give bonuses to employees, to charity, or it could also be used to finance possible changes in company strategy. • Savings – this is the amount of money left over when the manufacture costs have been subtracted from the main profit. An advantage of retained profit is that it allows more money to be available to expand Asda in other countries; this investment could mean an increase in returns and shareholder equity when such projects are successful because it means that there would be more profit. A disadvantage of this is that if the retained profit is higher, Asda would have to pay more taxes to the government, which could sufficiently decrease their retained profit, not having enough money to pay for projects. …show more content…

• Loan – this refers to the money borrowed by the company, for example, for productions costs. This money is expected to be paid back to the lender with interest. • Mortgage – this is a legal agreement between a building society and Asda where the society lends money in order for the company to buy a building, in the condition that the money lent is paid back with interest. Asda usually doesn’t have these as they may use their own company money to build/renovate buildings for their stores. • Hire purchase – hire purchase is a system where if Asda uses a certain equipment from another company, they must pay back the cost of this equipment in regular instalments. This could include the self-service kiosks that Asda has available in their stores. • Share/equity capital – share capital defines the part of Asda’s company that is funded by shares while equity capital is when the organisation is free of any

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