Asda : Strategic Management

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
ASDA strategic directions...............................................................................................................1
TASK 2............................................................................................................................................2
Analysis of industry with using different models.......................................................................2
TASK 3............................................................................................................................................5
Strategic drift faced by organisation...........................................................................................5
Demand of mission and vision....................................................................................................5
Strategic capability of company..................................................................................................5
Canvass model............................................................................................................................6
TASK 4............................................................................................................................................1
Strategies which can be followed by ASDA to defend its core business....................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic management is very essential for any organization. It is the process of planning,
making strategy continuously in firm to achieve business goals. Strategic management is very
important for leaders, managers and owner of company. This process helps firm at the time of
facing crisis in industry through making new ideas and plan which is different to their market
competitors. Steps, components and meaning is the process of strategic management. It is a set of
strategy that has to be followed by managers in organization. It is long termed concept that take a
lot of time (Robson, 2015). Benefits of this planning are that it increase operational skills and
help in making business more successful in marketplace. ASDA is a British leading retailer
company in UK. It provides various range of products in their firm for people. It established their
headquarter in West Yorkshire, England and Leeds. They sell their grocery products by using
online services. In this report it defines strategic direction followed by company and its
contribution in developing within past 5 years. This study explains the process of analysis by
using different models which organization is included for operating its functions. It also analyzes
resource implication which is recommended that firm has to address.
TASK 1
ASDA strategic directions
ASDAs is very famous corporation in UK, they provide the best quality products and
services. It was founded in 1949. Andrew Bond, John Long worth, Judith McKenna are the
board of directors of company. They built their business for offering services to customers
according to their needs. It is owned by Walmart. During the 1950s to 1960s company expand
their business by establishing grocery store in many places. In the process of expanding their
business they faced a lot of problems, after struggling in market they raise productivity by
making good quality products in reasonable price (Hill, Jones, and Schilling, 2014). ASDA open
supermarket in UK for providing goods according to customer’s demands and requirements.
ASDA is one of the leading supermarket retailer industries. The company offers grocery
products including fresh foods and fruits, drinks in various flavors, beauty and health products,
clothing and home, frozen food; they also make baby products etc. Firm manufactures goods for
men, women and kids. It also includes other services through offering bedroom products, chest
of drawers, mattresses and pillows, bathroom products such as towels, bath mats etc. through
doing this effort customer attract towards their services in supermarket and grocery shops. It will
1

create positive behavior for company by customers, because firm made products according to
requirement and needs of people. Consumer Behavior help company to understand about their
like and dislikes. This process explain groups and individual customers products choice, use and
ideas about services of ASDA. It is very important for firm to get all information about client
behavior towards goods and services. The aim of this company is to satisfy their customers.
Organization used different types strategies in past for developing their business growth.
1. Marketing development strategy: ASDA followed marketing development strategy to
expand their business within existing products and services. It helps in developing new market
for company products but with same goods. This strategy focused on non buying client in recent
mark segments. Company used this function to spread their products services at every place in
country or state level (Hitt, and Duane Ireland, 2017). They want to attract new customers
towards their goods such as food and clothes, grocery, home furniture etc. this process also help
firm in expanding their business through including new uses for products. ASDA marketing
manager make this development strategy to raise business growth in all over the world. In this
activity it takes a lot of risk more than other strategic directions.
2. Market penetration strategy: Market penetration carries low risk in process of
business growth. ASDA follow this function to spread their business branches deeply in entire
world. Company used this process in the activity of selling their products and services. It helps
organization to increase their market share through buying goods by people.
ASDA followed marketing development strategy within past 5 years ago. It helps in
improving their position in marketplace against to its competitors. This strategy is very helpful
for company by searching market activity. It gets developed firm products and services within
new style of production according to people demands and needs.
TASK 2
Analysis of industry with using different models
1. PESTEL analysis: it is very important before making any decision on ASDA
organization. PESTEL help company to understand the effect of external environment in their
business.
Political factors: political factors effect process of productivity in firm. According to this
it is governed by government, ASDA pay taxes for serving their products in market place. They
need to follow all the rules and policy according to UK government to run their business. But on
2