Case Study Of Asda Company (Essay Sample)

Introduction
Decision-making is the process of maintaining the performance of the company and also providing the proper identification. A company created a decision-making process for gathering information, collecting data, and many more alternative resolutions. This process also creates step-by-step for providing proper and informative information about the company. A company also developed its performance and strategy by implementing the decision-making process. By using this process a company can implement a new strategy and plan for increasing productivity. This context described the internal and external analysis, strategic leadership process, value chain model, Ansoff growth strategy and many more about the Asda company.
Discussion
Background of the company
Asda is the largest retail company in the British market and the concerned company provide grocery products. This company started their business on 19th February 1949 in Knottingley, England, U.K. At the current time, they are doing business in 633 different places. The founder of the concerned company is Peter and Fred Asquith and the headquarters of the concerned company is Leeds, U.K. The employee structure is the most essential for a company and the concerned company has approx 145,000 employees in the current year 2022. This company provides high-quality products and also delivers customer satisfaction products to attract costumes. For this reason, th respected company also increases their revenue structure and the total revenue of the concerned company is approx 22.90 billion British pounds (asda.com, 2022). Asda company also implement a strategy for developing the business culture and productivity and the main strategy of the concerned company is to provide a high-quality product at a low cost. The respected company sells products approx 23,555 million US Dollars in the year 2022 and sales also increases compared to the previous year 2019 (statista.com, 2022). The respected company sold grocery products 23,092 in the year 2019 and this is the most vital for the concerned company.
Figure: Sales structure of Asda Company
(Source: statista.com, 2022)
SWOT
Strength
* Product quality
The product quality is the most important for any company and the concerned company also provides high-quality products and this is the most important aspect and positive side of the company (Wei et al., 2021). Customer wants high-quality product at a low cost, and the concerned company also maintain this product quality for attracting customers.
* Wide product
The concerned company also delivered huge products in one place and this is the most vital factor for the company and for this reason the concerned company also gain the customer. The management system of Asda company also determines a wide range of product services to maintain better responsibility.
* Demand for product
Asda company also creates the products demand tn the local market and this also increases the marketing structure and procedure (Wilshaw 2018). This is the most vital aspect for increasing the products of the company.
* Employees and service
The employee structure is the most important factor for a respective company and this also increases the structure of the company (Firdaus and Rahmanillah, 2022). The respected company also increases productivity and customer satisfaction by implementing a new strategy of product-related. It is the power of the concerned company for attracting customers.

Weakness
* Product cost
The concerned company also delivers many products and they have multiple price range products. This price range is also expensive for some customers and this is the most negative point for the respected company (Jones and Comfort, 2020). A lot of customers want huge discounts and offers. The respected company is also unable to provide a proper discount for a product and this is the most negative point of the company.
* Increasing huge debt
The concerned company also face debt issue in the marketing structure and this also reduces the product quality of the company (Dabin 2022). The concerned company has approx 3.4 billion debt and this is to reduce the economic balance of the respected company.
* Lack of R&D
The respected company also faced a lack of research and development process in the market and for this reason, the concerned company cannot implement a proper marketing strategy of the company (Kuijpers et al., 2018). For this reason, the concerned company cannot implement the innovation process in the market.
* Lack of technology
The concerned company also faced a lack of advanced technology and development process. This also reduces the decision-making process for the concerned company.

Opportunities
* Capture online market
The respected company should capture the online market for increasing productivity and customers. The online platform is the most important for any company (Fletcher 2020). Asda can spread its online market system throughout the whole world.
* Satisfaction of employees
Thee respective companies can use new strategies and rewards for providing employees satisfaction and this process also increases the productivity of the company (Langendorf 2021).
* Global expansion
The respective company can increase their market strategy in the whole world and this is the best opportunity for the concerned company.

Threats
* Competitors issue
In the market Asda company face competitor challenges and this will reduce the sales structure of the company. This will be the main threat to the respective company.
* Huge rules and regulations
The respected company maintain rules and regulations and this is the main drawback for the respective company (Jones and Comfort, 2020). The company will lose customers for the hygge rules and regulations.
* Breaking Laws
Asda will reduce the growth of the company for online retailers. The respective company has broken rules for competing with competitors.

PESTLE
Elements

Considerations

Political

In the market of the UK, the retail industry acquires benefits from a political environment which is relatively stable. Brexit creates significant uncertainty and the concerned industry also has to think about the future-proof production chain as a result of Brexit. Free business policies like Brexit deal sometimes add field measurement of the level playing (BBC, 2022). The current agreement between the UK and the EU is a crucial factor that creates worth to do retail business in many companies of both countries.

Economical

The GDP rate of the UK has been fell by around 1.0% in the month of June after a rise of about 0.5% in May 2022 (ons.gov, 2022). The retail industry is impacted by this key factor in a positive as well as negative way. The industry is getting the benefits of growing GDP as with the less employment rate, the rate of consumers is increasing on a daily basis. On the other hand, the outbreak of COVID-19 affects the sales rate of retailing negatively because of the growing unemployment rate and that is portrayed as a drawback in the economy of the global as well as domestic market.

Social

Various social factors like social development in terms of changing trends, change in demography, and many more affects the retail industry of the UK. The government of the UK managed expenses of about 1100 billion individuals in 2021 which is more than 100 billion pounds as compared to 2019 (Statista, 2022). Most of the population in the UK is young and they are the targeted consumers for the concerned company, and with the increased competition in the market, the preference type has also shifted. Eventually, the growing demand for vegan food is very prominent in the market of the UK where the concerned company operates.

Technological

The continuous change in digitization and automation affects the business growth of the concerned industry. The retail industry uses the latest technologies to grow its production with a reduction in waiting time for consumers.

Legal

The retail industry of the UK is abide by a significant number of laws and policies that helps the industry to operate within certain rules and regulations. For example, the industry has to pay the minimum payment in the UK to the individuals, not less than that, employees can not be terminated unfairly, and many more.

Environmental

Most industries are concerned about the environment because of the increased rate of pollution and global warming. For these, the concerned industry focused on the green economy with organic food and control of carbon footprint with waste management.

Strategic leadership
A company can increase their business structure by using the proper leadership process and this is the most vital factor for the respective company. Asda company maintain a leadership process for determining the decision-making process and culture. The respective company also follow the democratic leadership process for maintaining the decision-making structure and providing proper collaboration among the group members. Democratic leadership style is ideal for maintaining any group and is aslo important for group working. This leadershi...