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Strategic Business Analysis Assignment

Question: The capstone project is "Strategic Business Analysis: Developing a Plan for Growth." It requires you to assess an organization's business strategy, leadership system, global prospects, code of conduct, and profitable growth opportunities with an ethical emphasis.

company Name - ASDA


Strategic Business Analysis: Developing A Plan For Growth


1.0 Introduction

Growth and success is the ultimate goal of every company and to achieve its target each business enterprise organizes a planning, which is often called a Strategy. Therefore, to follow a business strategy is utmost essential for every organization. ‘Strategic business analysis' means the procedure of exploring the external as well as the internal environment of a commercial firm. Here the researcher has discussed about the strategic business policies that are required for the success of the famous UK retailer ASDA.

2.0 ASDA's business strategy
ASDA is one of the eminent retailers in United Kingdom (Jones, Comfort & Hillier, 2015). This company is running more than 600 stores in Britain. Obviously, they adhere to specific business strategies to organize their commercial activity successfully.
• ASDA conducts their business with several multinational brands such as COCA COLA to attract the customers and provide them a large number of varieties.
• ASDA provides free sample to the customer to allure them.
• Selling the product that can be used in multi-purpose, is another brilliant market strategy of ASDA. In the way the company can gain new buyers at the same time, they can retain their old customers.
• The organization often promotes their offer to sustain in the cutthroat market.

3.0 The leadership system of ASDA
ASDA is a company that considers its workers is as the valuable asset. This rapid growing company contains a strong management team that provides their hard work to pave the organization to its ultimate success (Turker, 2018). The chief executive officer and the managers of the firm give the effort to stimulate their employees to achieve the target.

4.0 Global prospects of ASDA
The future of a company depends on its experience and hard effort. The company adopted the uniqueness of the products as well as the business ethics. ASDA bought Sainsbury and thus the company is able to contain an enormous number of the customers (Michalakeas et al., 2015). Beside UK, ASDA has also entered into the financial arena in Ireland, which proves that the company is quite ambitious about the future.

5.0 ASDA's code of conduct
The company follows the same rules and regulation for all its staffs, managers, directors as well as the thirds parties, Such as:
• All the employees have a clear understanding of the company's policy.
• The ethics related issues are escalated to the manager directly.
• In case of an investigation, the company needs to provide genuine information.
• The managers need to organize a direct meeting to revise the ethical rules.
• The priority is always given to ethics in case of every conflict within business objectives and ethics.

6.0 Weekly analysis of information on ASDA

6.1 Target market of ASDA
The target of ASDA is to catch the flow of the current market scenario. The use of information technology in marketing and identifying the various strategies of marketing is evident. The context is globally incorporated into the strategies of marketing.

6.2 Customer profile of ASDA
The ASDA targets people from all categories, be it high class of middle class. As the market is super cheap and affordable, people from all categories can shop from the supermarket. There are different members like doctoral members, delegates, speaker of house, presidents, vice presidents.

6.3 Marketing analysis of ASDA with regards to the following:

1. Marketing goals, objectives, and strategies

The ASDA have developed a new strategy for marketing that is of Euro 45 million, which is for the slogan of making the prices lower as much as possible. The new strategy started by ASDA is pay less and get more, the slogan of the organization is "More for you for less", though the company never compromise on the quality of its products. The food delivered by the company is fresh as well as the drink products are given in much lower rate if compared to the local market, without compromising to its quality. However, the market of ASDA dropped a little in the past year, making Sainsbury the best supermarket. The objective of the company is to increase the amount of the products freshly manufactured as well as making it affordable and cheap. The company also aims in offering products by taking raw products from the high suppliers who have high impact in the competition. To reduce the cost of packaging, ASDS uses its own brand name and its own packaging.


2. Customer analysis

The impact on a new venture is affected as a result of the market situation due to the support received from the growth plan of ASDA. The competitors are likely to consider the product line as competition becomes evident over several geographical domains and segments. Furthermore, the addition of each of the competitors of ASDA translates to a decreased market share for the organization. Hence, a tough competition may be considered for ASDA with the new entrants in the market.

3. Marketing mix (4 P''s)

Price, the strategy of lowering the price to increase the sells volume of the various products, the organization believes in over perception of price. The organization generally selects various festivals like Christmas, Thanksgiving and Halloween apart from the rest of the occasional sales and discounts (Zentes, Morschett & Schramm, 2017). ASDA records a very good growth with the help of introducing the price strategy. The promotion of the organization is also incredible for the promotional event. For its cost effectiveness, ASDA has been successful as well as popular in the recent years if compared to its competitors.

ASDA has made its presence in various places, because of the strategy that it follows that is Fresh and Simple. The place are always bigger so that the customers can feel spacious while shopping, though there are few markets which are little spacious if compared to the other stores (Lancaster & Massingham, 2017).

The promotional strategy of ASDA involves strategies, which are mainly focused on schemes and various discounts throughout the year. ASDA believes in value pricing of the products.
Due to the service-marketing brand, the other three Ps are made into 7Ps marketing mix in the case of ASDA.

Physical Evidence:
The size of the sheer, number of the stores, along with the location is subdivided into various categories. Like the division of the Supermarket which has segmented into stores that are small. The main business of ASDA though is limited to health and beauty products, toys and clothing, homewares and electronics.

ASDA mainly gives importance to the employees, because according to the organization the employees need to be valued (Leat & Ravoredo, 2016). The organization trains the people working with them and gives them most of the facilities to keep them happy at any cost.

ASDA was not into retail business before, but later it moved its focus to the business. The organization has shifted to selling meats, breads of different companies for the advantage of the local people. Kitchenware products have also been launched in the organization. ASDA has a very good market share in the business, including supermarkets.

6.4 Financial performance of the company

The financial performance of the company has constantly increased in the recent years. Apart from Tesco, Sainsbury, Morrisons, Netto, Waitrose and Booths in recent years the graph of ASDA has constantly increased. ASDA has always tried to get new opportunities for growth. Recently the ASDA has collaborated with TESCO and Sainsbury. The organization generates the ethical policies of the business, in the case of growth as well as the profit of the organization ASDA (Khoja, 2016). The organization ASDA generally maintains the ethics, the customer retention is also possible along with the collaboration of Sainsbury, and thus better development of market can be accomplished.


7.0 Applications of strategic parameters and improvement in performance

7.1 Organizational structure
ASDA is a business organization with a colossal structure and nearly 180,000 staffs including part-timer as well as full timer. The headquarters is situated in Leicestershire and Leeds. The Times newspaper has announced ASDA as ‘the best company to work for'. ASAD gives their employee 10 percent discount on the most of their products. However, the staffs do not get discount on tobacco, gift card, stamps and some other related items. There are several types of structure in the organization, such as the matrix structure, divisional structure, the flatarchy structure and many more (Johnson, Leenders & McCue, 2017).

The functional structure is further divided into tiny groups. The divisional structure is more flexible. Every organizational segment is independent and run their company. All of the divisions report to their higher authority.

Strategic Business Analysis.jpg

Figure 1: Organisational structure of ASDA
(Source: Johnson, Leenders & McCue, 2017)

Structure of management

The management in ASDA organizes a plan to catch the target of the company. The managers also lead their team member, supervise as well as control their work in order to get the success. The employees' efficiency, hard work and the proper utilization of the resources take the company to its ultimate goal. The managing director along with the other directors selects the senior manager in order to continue the commercial activity. ASDA has the following management structure.
• The regional manager
• Functional managers
• Departmental manager
• General manager

7.2 The decision-making process of the company
The main purpose of the decision-making division is to take practical decision that is effective as well as valuable for the firm. In order to organize their task the team gathers information and then come to the resolution in a sequential order.

8.0 Opportunities
ASDA has taken several types of growth opportunities to continue its progress. The firm acquired some supermarkets like TESCO in collaboration with Sainsbury. Hence, the company pays homage to it business ethics. Even the organization does not leave the path of morality to achieve success in the commercial field. This has been considered the underlying reason of the increasing popularity on the products of ASDA.

9.0 Recommendation
ASDA needs to focus on its competitors, how they are growing and the strategies used by the rival organizations in the particular field. Apart from that, new strategies need to be followed by the organization to remain in the high competition market following the Marketing Mix strategies.

10.0 Conclusion

From the above illustration it is clear that ASDA has seen ups and down in the commercial field like every other business organization. However, the obstacles could not hinder its progress. With the strong organizational structure and a powerful business, ethics the company is continuing is convocation in the international market. The other reason of its success is its employee friendly environment. Every shareholder, managers, leaders along with the staffs of ASDA has a profound knowledge about the vision of the organization, which eventually lead ASDA to its ultimate growth.


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