Business Context Analysis of Asda: Impact of Change and Culture on Workplace Conditions

This report analyses the external and internal environment of Asda and focuses on the impact of change and culture on workplace conditions. It discusses the components of the retail industry sector, applies relevant models to produce plans and objectives, and assesses the effectiveness of operational functions. The report also provides a client report on the benefits of planning and relevant models to aid in the management of performance.

Business Context

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
2.4 The impact and influence of change and culture...................................................................7
Part 2 Client report...........................................................................................................................9
a) Explain the benefits of planning when formulating strategy...................................................9
b) Apply relevant model to produce plan, objective, and future strategy to aid in the
management of performance.......................................................................................................9
CONCLUSION..............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:...................................................................................................................11

INTRODUCTION
The report aims to analyse the business context in terms of its internal and external
market environment. The business is focusing on beating great dynamic changes which has a
vast impact on the organisation performance, this environment includes society, people trends
competition and other unexpected factors. There is requirement of various strategies which will
help the company in order to gain the success. This shows that, there is requirement of creating
best strategy that will helps in completing organisation objective. This report is going to analyse
the external and internal environment of Asda (Bruijl, 2018). The company was established in
1949 and has a great name in supermarket chain industry. It is a multinational firm and has its
headquarters in England. The company is required to analyse its market to bring necessary
change in the company. It is very well known supermarket for selling grocery products,
merchandise and financial services. This report is going to talk about the impact of change and
culture in the workplace conditions. Also, there is requirement of creating best practice and
strategic planning for the development of best strategy that will help in taking change. The
company needs to bring change in their products and services to provide organic goods.
PART 1
2.2 An analysis of an organisations external environment
a) Determine the components of the industry sector
There are various key components which has much important in the retail sector. The
Asda is working under great competition and industry threats. Due to which, some of the
essential components of retail industry are described below:
Personalised experience: The retail industry has analysed the need personalised
experience for the customer in order to retain them. Customer wants to fulfil different demands
and needs as the way they like (Cepel, 2019). They want product and service that will have great
quality and desirable designs and look out.
Digitalisation: It is also an effective trend which impacting on the retain industry. All the
companies are working on digital platforms to attract large customer and provide convenient
services such as online bookings, solving their problems and provide deliveries.

Omni channel tools: This tool is most trendy in the recent retail industry which shows
how the company will be able to serve goods through different channel like physical and online.
The Asda is required to use this tools and methods to expand their reach.
b) Analyse the sector by applying relevant model(s)
Market size:
1.1 TAM
This model is used for getting understanding of the target audience of company. When
organisation is aware about their target customer, they could easily reach out to their problem.
The Asda mainly targets middle level income group people of every age group. It helps the
company to take product decisions as per the industry trends. When target audience is identified,
there will be smooth growth of the company and decisions will be fruitful (Hamilton, and
Webster, 2018). The Asda has large share which attain success in the UK market through
choosing right audience. This model is necessary to analyse the need of customers in the market
and sell product as per their age group, demographic conditions and physiological factors.
Therefore, target audience will help Asda to promote their brand name and create a positive
image in the market.
(i.2) business cycle analysis: In every business, all the activities and work perform in an
effective manner. It leads to expansion, peak, contraction and through all these stages form a
cycle which enables high quality control on the functions. Therefore, this cycle impact on the
GDP and development of the country. When retail industry moves down in contraction stage, it
impact on the demand and supply which affect money flow.
1.3 (a.i.3) Red Ocean: This strategy involves the decisions regarding coping up with market
competition. The company needs to analyse the rival’s strategy and then take actions for
company growth. Red ocean strategy focus on identifying potential competitors like Asda is
competing with Tesco, Morrison’s and Sainsbury's in the retail supermarket.
Blue Ocean strategy: As per this strategy, the company needs to always remain active about
market opportunities and take first advantage in order to grow in the market. This shows that,
creativity and innovation take place during application of this strategy and there is no threat of
new players (Hans, 2018). This shows that, it impact on the workplace culture and system that
Asda will bring new innovations in product through providing organic product range. The

company is required to take help in the competitive market and check on the cations of
competitors for reducing fear of competition.
The Asda is using blue Ocean strategy in order to fulfil their motive of bringing change by
developing organic products. This shows that, the company wants their change in necessary
work environment and gaining success. For that instance, it is necessary for the growth and
prospective of market share in which, they are able to take better decisions during the time of
Covid-19.
2.3 An internal environment competence analysis
a) Review the internal factors
Internal factors of business includes the functions and operations which are perform in
the organisation. There are many things that internally impact on company due to having poor
strategy and growth decisions. For example, employees, resources, investment are the key
internal factors that needs to be available in the market. Through focusing on these factors, the
Asda will be able to take competitive positioning and key growth prospectus. The asda has
employees capabilities and productivity which is a strength for the company to attain growth.
Also, quality products and large market reach is also strong in case of Asda that will help in
brining change at the workplace.
Apply appropriate assessment tool to identify challenges and opportunities
Mckinsey's 7 model
This model is the key area to focus on the overall functioning of the organisation. There
are many challenges and opportunities that helps In creating a company to take better changes
and analyse its potential. This model was developed through 1980 through McKinsey
consultants James. It is a suitable model to identify internal capabilities of the organisation.
There are mainly 7 components which helps in putting focus on internal functioning (Huang, and
et.al 2022). It is mainly used for assisting useful variety of situations and how other organisations
work together. It wills helps in taking decisions for the welfare of Asda by developing strategy
and implement it fruitfully. These 7 elements are discussed below:
Strategy: The strategy is necessary to carry out the functions in the organisation.
Strategies are important which shows a clear path towards attaining goals and objectives. There
are various plans, actions monitoring and controlling to keep an eye over all the operations of
business. The Asda use their strategy of pricing, competition and others to attract large

customers. The Asda will help in creating best business positions and provide organic product to
every customer by cutting down excessive cost of resources and production.
Structure: It helps in analysing the structure in which the company is working. It shows
a clear line of communication, work division and coordination. The employees will be aware
about whom to report and how they can communicate with them. A proper structure includes
people, their roles and position, authority and responsibility and hierarchy to assist employees in
proper manner. The Asda has clear roles for approaching to the senior management and decision
of work in order to create effective workplace.
Systems: It is all about a proper path and ways which helps in taking proper directions. A
system is necessary for day to day activities in which a particular management will be there.
When the work is done in systematic manner, the company will be much close to the success.
Asda has positive work system in which they have the entire department which perform clear
work roles and responsibilities (Khajeheian, Friedrichsen, and Mödinger,, 2018).. It follows the
system of hierarchy from manager to CEO.
Skills: The skills are required to use in every business which shows that the company is
in search of talent employee who could take the company on to next level. The Asda has target
of creating organic product range to solve the issue of unhealthy environment in the time of
Covid-19. The company require experts guidance and knowledge before making change in their
product varieties. The company has capability to provide training and career opportunities. This
shows that, it creates emphasize on the capacity of developing employees.
Style: this shows that how the company will adopt the changes of dynamic market and
influence others. It refers to the behaviour of managers and leaders and what leadership style
they use to motivate the employees. The leaders of Asda use participative style in which, they
ficus in taking participation of employees in decision making. It helps in smooth operations and
workflow in the company.
Staff: This component of company shows the staff engagement within the workplace
functions. It includes training, recruitment and development as a part of human resource
management functions. The manager of Asda perform all this duty to keep the staff aware and
informed about company functions.
Shared Values: It shows the company beliefs and values which they regulate in overall
departments. It has vision, mission and objectives.

2.4 The impact and influence of change and culture
a) Assess the impact of implementing of change on an organisation
The change can be implementing in an organisation through many ways. Employees need
to come out with their prior work system and try to adopt the new one.
2.4 The impact and influence of change and culture
a) Assess the impact of implementing of change on an organisation
Kurt Lewin's Change Model
As per this model the managers of the company will implement actions in order to bring
change. The Asda could follow all the stages in below stated manner:
Unfreezing: this stage is all about bringing new changes in the company. for that
instance as the needs to change the old behaviour and working structure into a new way to adopt
by the employees.
Changing: when old behaviours and actions are eliminated, the employees will find new
change and start working on it (Kozubikova, and et.al 2019). The managers of Asda could bring
new production of organic product in order to attract large number of customers.
Refreezing: when the new actions and work structure will be implemented, the
employees will get us to follow the same and they will continue to behave as per the new
instructions and guidance.
b) Explain the influence of culture on management decisions during transition
Culture creates much influence on bringing change into organisation. Asda will get
impact on following areas:
Power: the culture of HR is all about giving powers to the senior management
employees. These powers are not meant to be used unnecessarily. Therefore when the managers
do not make unfair decisions through power then only the change could be implement properly.
Role: they shows that the employees are divided in the task as per their role in
responsibility. The employees of are getting a specialised in their roles which also make positive
decisions.
Task: the task must be regulate in the company with proper guidance and training. These
tasks are provided among team members under the supervision of team leader.
c) Illustrate the effectiveness of operational functions

Operation function play a crucial role in managing business. When operations are going
right, all the other activities will be performance same manner (Nikitina, and Lapiņa, 2019).. In
order to analyse the operations function, TQM is a great theory of continuous improvement in
which the manager needs to keep focus on achieving highest quality product and service to
customers.
d) Stakeholder landscape
Stakeholders are the most important personalities which has their immense effort towards
organisation successful. In Asda, there are various kinds of stakeholders which are categorised in
different sections.
High power low interest: this people you have power of taking decisions where as does
not take interest in day to day functioning. Customer belongs to this category for Asda.
High power high interest: these people have influence on both the areas in decision
making and powerful . these Are investors of the company.
Low power high interest: employees belong to this category as they do not have power
to take decision but they are meant to take participate in day to day activities (Radović-
Marković, Salamzadeh, and Vujičić, 2019).
Low power low interest: this people are important but not much to remain informed as
like suppliers of the company.
e) Summarise relevant information and complete the industry report with a conclusion.
It is analysed that the business environment is dynamic. The company must research the trend in
market and follow them to achieve success. The stakeholders are important for the company and

it is important to keep them satisfied. There is need to manage the operations of the company so
that total quality of the company cane be enhanced.
Part 2 Client report
a) Explain the benefits of planning when formulating strategy
There are many benefits of planning while formulation of strategy. The strategy needs to
be plan according to the potential capabilities and requirement of organisation in the competitive
market. Planning makes the things easy and concise which eliminate any confusion and a lot of
options to choose (Rimita, , Hoon, and Levasseur, 2020). While making strategy for bringing
change in Asda , planning is crucial for collecting resources , engaging employees providing
training and identify the first mistakes in make sure to not repeat them again..
b) Apply relevant model to produce plan, objective, and future strategy to aid in the management
of performance
PDCA Model
This model is helpful in continuous improvement of company and making best strategy
for smooth functioning. It enhance the chances of being successful my implementing relevant
strategy in Asda. There are mainly 4 steps which are discussed below:
Plan: as per this step , the company needs to plan the strategies by undertaking effective
research customer demands and communicate with employees to find better options about issues
in company.
Do: once the plans got made, the as the needs to implement it by providing guidance and
training to employees for bringing necessary changes and apply strategies. All the work activity
will be guided in an effective manner.
Check: once the training will be provided, at this time to check all the functions
performed by employees to find any mistakes and solve them in initial level (Sołoducho-Pelc,
and Sulich, 2020).
Act: when there will be any mistakes and improvements are required, there is needed to
take action which will remove the issues and make the strategy successful.
c) Recommend suitable strategies and approaches for the selected business employed post-
pandemic and the long term.

 From the overall analysis the company needs to use quality resources and focus on
employee’s productivity to reduce cost of product and provide healthy organic substances
into market.
 The company must focus on the employee’s retention and training in order to make them
export and specialised in their field (Vlados, and Chatzinikolaou, 2019).
 The Asda needs to conduct proper research before taking any decision and grab
opportunities into market.
CONCLUSION
The report has concluded that, business environment is surrounded with many internal and
external factors. They impact on directly and indirectly on the functioning and productivity of
company. The factors mainly include market competition investor’s role, customer engagement
and many other areas. Therefore the report on analysed the internal structure for company to take
better decisions about bringing change. For this, there is application of effective change model in
order to make employees aware about dynamic business situation and adopt the changes.

REFERNCES:
Books and Journals:
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Cepel, M., 2019. Social and cultural factors and their impact on the quality of business
environment in the SME segment.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hans, V.B., 2018. Business environment–conceptual framework and polices. International
Educational Scientific Research Journal, 4(3), pp.67-74.
Huang, and et.al 2022. Assessing the role of financing in sustainable business
environment. Environmental Science and Pollution Research, 29(5), pp.7889-7906.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Kozubikova, and et.al 2019. The impact of political factors' perception on suitability of
international business environment: The case of startups. Economics & Sociology.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice, 17(1), pp.96-107.
Radović-Marković, M., Salamzadeh, A. and Vujičić, S., 2019. Selection of organization models
and creation of competences of the employed people for the sake of competitiveness
growth in global business environment. International Review, (1-2), pp.64-71.
Rimita, K., Hoon, S.N. and Levasseur, R., 2020. Leader readiness in a volatile, uncertain,
complex, and ambiguous business environment. Journal of Social Change, 12(1), p.2.
Sołoducho-Pelc, L. and Sulich, A., 2020. Between sustainable and temporary competitive
advantages in the unstable business environment. Sustainability, 12(21), p.8832.
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability, 9, p.25.