ASDA Strategic Management: Concepts, Theories, and Analysis

1
PORTFOLIO
TOPIC: STRATEGIC MANAGEMENT
[Student Name]
[Student ID]

2
Executive Summary
The main aim of this portfolio is to discuss the strategic management concepts and
theories that connect with the real organisation ASDA and reflect how ASDA generates and
evaluates its strategic position and perspectives. ASDA is the second-largest supermarket chain
in the UK, built in 1965 and entirely owned by Walmart, one of the world's largest companies.
Further, this portfolio covered strategic position, current strategic options, contemporary strategic
management thinking and critical self-reflection and progression to evaluate the ASDA strategic
management in depth and critically analyse its different perspectives in the light of concepts and
theories. The swot analysis gave a clear idea that the ASDA company opportunities have allowed
it to grow in Europe and access international opportunities, engage customers and expand its
business internationally. Further, the TWOSC analysis identified that spending significantly more
on marketing and advertising strategies is necessary for Asda to thrive by building on its existing
brand identity. Thus, market penetration is a suitable strategy for ASDA to move the company
into international markets, engage more customer’s worldwide, gain profit, and take a
competitive advantage in the international market.

3
TABLE OF CONTENTS
Executive Summary.............................................................................................................2
Introduction..........................................................................................................................5
1. Strategic Position.......................................................................................................5
1.1 Analysis of Enteral and Competitive Environments..................................................5
1.1.1 Analysis of Internal Environment.......................................................................5
SWOT analysis............................................................................................................5
1.1.2 Analysis of Competitive Environment................................................................6
1.3. ASDA Financial and Stakeholder Analysis..........................................................8
1.2 Strategic Position and Strategic Capability...............................................................9
2. Current Strategic Options........................................................................................10
2.1 Identify Current Strategic Options with TOWS Matrix..........................................10
2.2 Analysis of Strategic Options with Ansoff Matrix...................................................11
2.3 Strategic Evaluation Options in SAF Framework...................................................12
2.4 Justification of Selected Option for Organisation....................................................12
3. Contemporary Strategic Management and Its Potential Impact on Organisation. . .13
4. Critical Self-Reflection and Progression.................................................................14
4.1 Introduction..............................................................................................................14
4.2 Gibbs Reflective Model...........................................................................................14
4.2.1 Description........................................................................................................14
4.2.2 Feelings.............................................................................................................14
4.2.3 Evaluation.........................................................................................................14
4.2.4 Analysis.............................................................................................................14
4.2.5 Action Plan........................................................................................................15
5. Conclusion...............................................................................................................15

4
References..........................................................................................................................17
Appendixes........................................................................................................................24
1. PESTLE Analysis.................................................................................................24
2. Porter’s Five Forces.............................................................................................25
3. VRIO Analysis.....................................................................................................26
4. SWOT Analysis....................................................................................................26
5. Generic Strategies................................................................................................27
6. Ansoff Matrix.......................................................................................................27
7. Financial Analysis................................................................................................28

5
Introduction
Strategic management is an ongoing analysis, planning and monitoring assessment in
which an organisation meets its needs in all strategic management requirements to achieve its
objectives and goals (Fuertes et al., 2020). Additionally, strategic management comprises five
basic strategies of an organisation that applies on mobile platforms and on-premise, and an
organisation can clearly understand its vision, mission, actions and values where accompany
wants to stand it. This portfolio aims to discuss the strategic management concepts and theories
that connect with the real organisation ASDA and reflect how ASDA generates and evaluates its
strategic position and perspectives. ASDA is the second-largest supermarket chain in the UK,
built in 1965 and owned by Walmart, one of the world's largest companies (Jones & Comfort,
2020). Therefore, this portfolio has four parts; strategic position, current strategic options,
contemporary strategic management thinking and critical self-reflection and progression to
evaluate the ASDA strategic management in depth and critically analyse its different perspectives
in the light of concepts and theories.
1. Strategic Position
1.1 Analysis of Enteral and Competitive Environments
An organisation points out its system that is constantly interacting in environments
(Hutchins, 2020). For gain a competitive advantage, it is imperious to analyse its internal
environment in a framework of SWOT analysis and then identify its competitive advantage that
is a task environment according to the Poster’s Five Forces model illustrates below.
1.1.1 Analysis of Internal Environment
SWOT analysis helps to identify the strengths, opportunities, threats and weaknesses of
ASDA's internal environment that leads to the company in the market.

6
Strength
 The value of ASDA's brand is one of its
primary strengths. With 17% of the
market, it ranks second only to TESCO as
one of the major brands in the UK (Bandy
et al., 2021).
 Its distribution over the entire UK has
benefited the business in gaining
economies of scale (Haydock and Smith,
2019).
Weakness
 ASDA has a webpage, but it has not been
able to deliver quality online services
(Newing et al., 2022).
 Less range of products is offered at the
company's store. As there are many
locations that its businesses do not serve,
ASDA's retail locations are not well
considered (v Brierley, 2022).
Opportunities
 The corporation can expand more by
adding additional locations (Rossi-
Hansberg et al., 2021).
 ASDA has the chance to grow in Europe,
where it may access international
opportunities and clients (Leach, 2022).
Threats
 Local grocery stores, which are expanding
daily, pose a serious challenge to ASDA
(Fung et al., 2019).
 TESCO and Sainsbury are gaining on
ASDA's consumer base, as they carefully
grow across the UK (Urquhart et al.,
2022).
The above SWOT analysis shows ASDA's strengths, weaknesses, opportunities, and
weaknesses in the UK market. In line with that, the strength shows how ASDA performs in the
UK market. The analysis demonstrated that ASDA distribution across the UK has economic
advantages and stands second after TESCO in the UK market. Moreover, the weakness of ASDA
is that the company needs to improve its quality online services and a range of products only
offered in stores and many locations of ASDA are not well for business. Moreover, the above
SWOT analysis identifies the opportunities for ASDA Company that the company has availed a
chance to grow in Europe and access international opportunities, engage customers and expand
its business internationally. Therefore, some threats ASDA has faced include a serious challenge
of local grocery stores. Thus, Sainsbury and TESCO are big competitors of ASDA that have
successfully grown across the UK.
1.1.2 Analysis of Competitive Environment
Rivalry, buyer bargaining power, supplier bargaining power, the threat of new errant and
threats of substitutes are Porter’s five forces that can help to view an organisation's competitive
environment (Baxter, 2019).