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M6A1 Capstone Project Update: Internal Environmental Analysis 

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. 

The capstone project will require you to construct a detailed and well-thought-out analysis of a real-world business that employs many of the business theories, concepts, and relevant strategic analysis tools studied in the MBA program. 

In Module 5, you analyzed the company's( company Name ASDA). organizational structure and performance. In this module, you will use and apply concepts related to internal environmental analysis. 

Continue to gather information about your selected business organization( company Name ASDA). Write an analysis that includes the following: 

1. Conduct a SWOT (analysis of strengths, weaknesses, opportunities, threats) on the company's internal environment. 

2. What are the organization's core competencies and competitive advantage? 

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The paper mainly focuses on the business strategies which have been adopted by ASDA Stores Ltd. The headquarters of ASDA is located in Leeds, West Yorkshire. ASDA is the second largest supermarket chains in all over UK. the supermarket was set up in the year of 1949 by the Asquith family. In the year of 1999 Walmart took over ASDA. They have been the second largest supermarket chain from 2003 to 2014. The mission statement of ASDA is “ to be Britain’s best-value retailer exceeding customer needs always”ASDA sells over 30,000 different products in their stores. ASDA has over 600 stores which are extended all over the United Nations like Chester, London, Bradford and so on. 

ASDA’s business strategies

Swot analysis

ASDA is a leading retailer company and has a recognised position in the market and it can be analysed thoroughly with the help of the SWOT Analysis of the internal factors. 

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Table 1: SWOT Analysis of the internal factors of ASDA

Competitive advantage

ASDA has very challenging competitors all over who are affecting their sales and growth simultaneously. This can be understood most effectively with the help of the Porter’s five forces where all the competitive challenges and procedures are observed. This model will help in understanding the core competencies of the organization. The five forces are:

1. Competitive Rivalry- a lot of competition is incurred by the retail industry. ASDA’s chiefchallengers are Morrison, Sainsbury and Tesco. These three retail industries have their own uniqueness and are standing out to be challengers for ASDA. 

2. Threat of new entry- in the supermarket industry the new entrants are turning out to be great threats for ASDA. ALSI and Co-op are the new entrants with whom ASDA is facing a tough competition. 

3. Buyer power- consumers are the key to any successful business. Whenever any consumer buys a product they verify the products which vests them with the power of decision making. ASDA has been successful in providing the best quality products at the cheapest price to their consumers(Scott, Lundgren and Thompson, 2018). 

4. Supplier power- ASDA sells over 30,000 products which makes them to have over 500 suppliers who as a result helps them to provide the best quality products to their customers. 

5. Threat of substitution- it has been seen that there are different substitutes and brands for a single product. The amount of every product differs from one another. Here ASDA faces a quite strict competition. 

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Value chain analysis and benchmarkinganalysis for ASDA

The value chain analysis is an effective form of analysis which helps in describing the different operations that take place within an organization like ASDA. the competitive position of ASDA can be evaluated with the help of Porter’s value chain analysis:        

1. Inbound logistics- ASDA is the cheapest retailer among other competitors. ASDA is capable of selling the products at a low cost as well as make profits because of their effective ordering system and its economies of scale.         

2. Operations management- several effective strategies have been adopted by ASDA to make sure that the company’s operations are run efficiently. Like the implementation of enterprise resource and planning by ASDA resulted in an effective and efficient operations throughout the organization. 

3. Outbound logistics- ASDA has introduced online shopping which helps them in expansion and also reaching out to their consumers who do not have the access to the physical store.

4. Service - ASDA provides various kinds of services to their customers other than just providing groceries. This helps in attracting various types of customers like the living stores which sells various kinds of clothing(Nygaard et al., 2017). 

5. Technological Factors- the development of ASDA has been significantly influenced due to the introduction of the technologies in the whole system. Like the introduction of RFID in the ASDA stores stood out to be extremely beneficial as the customers were delighted.                                                                                                                                                                             

The benchmarking analysis between ASDA and TESCO are evaluated below: 

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Table 2: Benchmarking Analysis for ASDA

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Table 3: Benchmarking Analysis for TESCO

Based on the benchmarking analysis it can be evidently seen that TESCO has been advanced in several fields than ASDA like they have in advanced in Brand image, Marketing, Innovation and customer service which has resulted in providing them with the leading position. 

Leadership system of ASDA

The company ASDA has adopted different ways in leadership to overcome the control of allocated piece of work in an organisation. The basic goal of the organisation is to allocate the correct job role of leadership to the employee. The employees are important and relate as the strength of the ASDA company. The main aim of the leadership system is to aim for the goal, vision and mission in an organisation(Souza-Monteiro and Hooker, 2017). The senior managers and the CEO of the organisation motivates their employees to gain success for the company. The company ASDA has adopted leadership style such as transactional and democratic for the success of the organisation. 

Global prospects of ASDA

The global prospects are the possibilities of future achievement of an organisation. The company ASDA has been concentrating on the growth of their firm in the future. Every country has different rules and regulation in regard to the business of the organisation and the company ASDA has adopted all the prospective to run the company policy(Khoja, 2016). The ASDA has a great opportunity for the growth of the customers as they are buying Sainsbury and it will help the company to grow in a large prospect. The ethics and the uniqueness has been adopted for the company’s internal growth.

Code of conduct of ASDA

The company ASDA has generated a code of conduct to maintain a proper ethics in the organisation. The rules and regulations are made by the organisation to maintain in a proper and mannerly way. The code of conduct is made for the employees, board of directors and the third parties. 

The laws need to be followed by the employees and if anyone is not abiding the laws of the organisation manager need to report it(Hilmola, 2018).

The basic objectives of the policies needed to be adopted by the employees

The encouragement of open communication need to be done.

The unethical deeds need to be reported to the higher authority.

Profitable growth opportunities of ASDA

The company ASDA is trying to gain opportunities for the growth of the organisation. ASDA is collaboration with Sainsbury which will take over TESCO and other super market. The company generate their own ethics in the long run of the business in regard to the growth and the profit of the organisation ASDA(Khoja, 2016). The company ASDA follow their ethics and if they incur a profit with a huge margin or loss. The customer retention is possible with the collaboration of Sainsbury and it will generate a better development output in the market.


This paper has been done on the various business strategies of ASDA. the business strategies, the leadership system of ASDA, the global prospects od ASDA, the code of conduct of ASDA and the growth opportunities of ASDA has been elucidated in this particular assignment. ASDA has adopted theseorganizational strategies which are making the company attain the number one position in the retail industry in UK. 

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