IMA7002: Business Development - ASDA's Ventures and Market Analysis

This report provides an in-depth analysis of ASDA's business development process, highlighting its significance and impact on real-world enterprises. It examines the company's approach to idea creation, feasibility determination, target customer identification, and strategy planning. The report also assesses the positive and negative impacts of business development ventures, such as the joint venture with Just Eat, on ASDA's market share, brand reputation, and resource utilization. Furthermore, it discusses the potential for international market expansion and the importance of aligning external environmental factors with internal capabilities. The analysis concludes with a comprehensive overview of ASDA's business development strategies and their implications for the company's growth and sustainability in the retail sector.

IMA7002 Business
Development
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Understanding of business development process and its significance........................................3
Significance of business development process............................................................................6
The way business development venture has impacted on real world enterprise.........................7
Discussing how the opportunity was identified and benefits of the business and identifying the
business development strategy as recommendation....................................................................8
Justification of how the venture will be developed in an international market.........................11
Systematic assessment of the external environment within the international market aligned
with the internal capabilities of the firm....................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Business development is creation of long-term value through delivering qualitative products
and services to customers, strong relationship with them and making best use of available
opportunities. In another words, it is set of ideas, initiatives and activities that are used by
business or company to make its operation better and enjoy good market share in external
environment. Companies in current scenario through formulating venture with other firm is able
to easily expand its business operation and attained its goals in limited time frame.
ASDA is British supermarket chain having its headquarter in Leeds, England. Company
have initially started its business operation on 1949 and currently having operation in around 632
location that contribute company in earning around £22,899.2 million of revenue through
meeting customers expectancy. Furthermore, the organization is planning to further develop and
grow its business through formulating venture with other companies in order to enjoy more profit
margin and sales volume.
This report has depicted crucial information pertaining to understanding of business
development process and its significance. The way business development ventures impact on
real world enterprise, the way opportunities are being identified and utilized by company. It also
contains detail related to the way venture will be developed in international market and
systematic assessment of external environment, the way they are aligned to internal capabilities
of the firm.
MAIN BODY
Understanding of business development process and its significance
Business development encompasses a wide scope of ideas, activities and initiative that are
taken by the owner of business and management in order to achieve the end objective in effective
manner. It includes many objectives likewise growth in sales, effective formulation of
partnership strategies, planning for growth and expansion of business and increasing profitability
through delivering qualitative services to customers beyond their expectancy level (Ramadan
nnd et.al.,2017). Idea creation, determination of feasibility of idea, take a decision, target
customer and selecting of marketing channel and strategy to attract customers are all process
pertaining to business development that has been used by ASDA to grow and expand its business
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in external environment. The key business development process of company can be illustrated in
detailed as follows:
1. Idea creation: First, steps that will be taken related to business development process is
idea creation in which the manager of company lay efforts on creating or finding out new
and creative idea that could be used by business to achieve growth and success in future
circumstances. Likewise, ASDA has put effort on finding out idea to formulate venture
with other companies so that it can easily enter into international market and earn more
profit margin (Pokrovskaia, Khansuvarova and Khansuvarov, 2018). At the same time,
company is well known for providing products and services to customers at discount
rates that has contribute in adding more and more customers within the firm.
Furthermore, in recent scenario, ASDA has formulated venture or have partnership with
Just eat to create grocery delivery services. In this partnership, there are two stores have
100 product lines that will be shared by between two brand to earn profit. Therefore, the
idea of venture with another company has contributed in enhancing market share,
profitability and customers.
2. Determination of feasibility: Second element that is considered in business development
process is determination of feasibility of idea that company has selected in order to grow
and expand its business in external environment. Likewise, ASDA has conducted study
related to whether the idea of new business venture with Just eat is feasible or not through
pursing cost- benefits analysis, evaluation of actual benefits or gained that company will
achieved through making use of venture. Along with it, the associated risk with the
business is also determined in order to effectively study the feasibility of business or idea
of new venture for benefits of firm (Prodanova and et.al., 2019).
3. Take a decision: Finally on the basis of feasibility study, the company take finally
decision to formulate venture with Just eat to have more market share and high revenue.
The decision of venture has helped company in attracting existing as well as new
customers’ base within the firm.
4. Set target customers: After the deciding of business venture, the process involved in
business development is setting of target customers. Such as ASDA through making
partnership with just eat has planned to target all individuals i.e. from adult to children,
people belonging form high income group to low and whether men and women
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(Flammini and et.al., 2017). So, targeting of customers has helped company in planning
appropriate strategy that could be used by firm to attract and retained customers in the
organization for longer time frame.
5. Planned strategy: Finally, it is another business development elements in which
company such as ASDA planned strategy or set of action, procedure that can be
undertaken by firm to form venture with Just eat to grow and survive in external
environment. Likewise, it has decided each party will be equally sharing all the profit and
losses related to the specific areas in which they have formulated partnership (Gebauer,
Haldimann and Saul, 2017). Such as ASDA will be responsible for delivering groceries
to customers while Just Eat will make best use of technology platform in order to
delivered groceries products to individuals in limited time frame.
6. Explore marketing channels: After that, efforts are lead on understanding the marketing
channels that could be used by ASDA to promote its new venture and type of services
that are delivered by company to its customers. Likewise, company has decided to make
use of digital platform such as social media marketing, email marketing to generate,
create awareness and build strong relationship with customers. Therefore, use of
different marketing channel by ASDA to connect with customers has contributed
company in adding million of customers and enjoy more profitability.
7. Established KPI: Then steps are being taken by company for business development
process is developed or establishment of key performance indicators in order to monitor
overall performance of business, outcome of new venture and many more. Client
retention rate, profit Margin, customer satisfaction, financial performance Index are
several KPI that has been used by ASDA in order to monitor and control the set of action
related to venture (Bocciarelli and et.al., 2017). Such as the profit margin has helped
company in understanding and comparison the total profit that it has enjoyed because of
framing venture with another company. Similarly, client retention ratio and financial
performance index has also helped ASDA in improving its actual performance and
gaining best outcome from venture.
Significance of business development process
Business development process is foundation for both long term profitability and growth of
organization in international market. Furthermore, it is important in terms of varieties of other
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function ranging from sales to brand reputation. The different reason that highlighted importance
or significance of business development process can be explained as:
1. Cultivate relationship: Business development process is important for company
such as ASDA because it is able to effectively formulate and maintained
relationship with numerous individuals in society. Likewise, ASDA through
business development process can formulate relationship with new customers, have
more talented employees that are ready to work for growth and development of
firm (Rehse, Dadashnia and Fettke, 2018). So, efforts have been lead by company
to create and maintained strong relationship with different individuals.
2. Boost brand reputation: Another significance of business development process
for ASDA is that it contributes in boost brand reputation. Such as ASDA and Just
eat are two brands that have their respective brand image so after the venture of
both companies. They will enjoy high market share, profitability and reputation in
hearts and minds of millions of customers residing in the society.
3. Discovering of growth opportunities: Moreover, another importance of
undertaking business development process by company is that it is able to identify
various growth opportunities that are available in external environment. Thus, on
the basis of that find alternative method that could be used by the firm to make
optimum use of available growth opportunities to stay ahead in retail sector of
United Kingdom. For examples: ASDA with a motive to grow and developed has
continuous analysis what is happening in external environment that has contribute
company in identifying the key opportunities and threat.
4. Open up option for company to expand into new market: At last, it can be
stated that another benefits of making use of business development process for
company is that it get to know about opportunities related to international
expansion of business. Company is able to understand key market in which it can
easily expand to enjoy more profitability, customers satisfaction and outcome
(Bocciarelli and et.al., 2017). Therefore, through business development process it is
able to find out lucrative opportunities and growth strategy that could be used by
business to have differentiated positioning in retail industry of United Kingdom.
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The way business development venture has impacted on real world enterprise
From the above analysis it can be that business development venture has positively and
negative impacted on real world enterprise. In current scenario, business development venture
contribute company in easily grow and expand its business operation in international market.
Likewise, ASDA through formulating joint venture with Just Eat with an motivate to expand its
operation in international market and stay ahead in competition. Furthermore, it can be stated
that improved new products is another benefits of Joint venture as company through partnership
with other company have develop new products that can be delivered to customers in order to
make them happy and satisfied. At the same time, the venture lead in increasing overall
resources of the ASDA that could be used by firm to earn high profitability margin, fulfill their
requirement in best possible manner (Lopez and Seligson, 2019). Company also have
opportunity to enter into international market to attract more and more customers in the firm
through forming joint venture with local company. As it will provide opportunities to ASDA in
entering different market or countries as local firm known more about the taste and preference of
customers, policies of government and technological development. This has helped company in
staying ahead in competition and sustain its operation for longer time frame in international
market. Firm is able to know about the market condition, thereby plan appropriate strategies that
could be used by it to attract and retained customers in the organization.
In addition to this, company also has capabilities to adapt to new technologies that could
be used by it to delivered qualitative services to customers beyond their expectancy. As through
joint venture or business development venture, companies have opportunities to make optimum
use of new techniques as well as method to attract and retained maximum number of customers
within the organization. Moreover, it can be stated that the business development venture lead in
brining innovation in the company thus it positively impact on sales volume and profitability of
firm. Both the firm will try to find out more differentiate idea that could be used by firm to meet
customers expectancy beyond their wants (Nailer and Buttriss, 2020). So, company will have
more sources of earning capital through attracting million of customer residing in different parts
of the world. Therefore, it can be summarized that Business venture yield in improving brand
image, resources and market share of company in retail sector of United Kingdom.
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Furthermore, it can be evaluated the joint venture or business development venture may
have negative impact on real world enterprise. Such as if any company have bad management or
reputation that venturing with the same may result in causing harm or negative impact to the
company. At the same time, it lead in increasing overall cost of ASDA as for business
development venture, company need to invest huge amount of capital and take higher risk that
results in threat to smooth operation of company in external environment. Moreover, the overall
profit and loss of the company are shared in equal or specified ratio between the two companies
that is ASDA as well as just eat. Therefore, it can be summarized that joint venture contribute in
providing benefits as well as have some negative impact on real world enterprise such as ASDA.
Discussing how the opportunity was identified and benefits of the business and identifying the
business development strategy as recommendation
Just Eat British online food order and delivery service which was started by ASDA identified
this business opportunity by collaborating with the brand and promoting its products and services
by partnering to create effective and efficient grocery service which is serving the customers at
large scale. This opportunity is being identified by ASDA which helps the business in creating
the value of the products and services which are being served to the customers in the market
(Bloom and et.al., 2018). Benefits of this business which is in partnered with Just Eat will help
the business of ASDA in growing majorly on the scales of what are the aspects through which all
the prior business processes are being run into the market. Benefits of Just Eat business which is
taken into consideration will help ASDA in growing its customer scale which will further initiate
the growth and development through which aspects of being in the business is analyzed and
evaluated. With the help of this online food delivery service, ASDA will grow its customers
alongside by offering them the products and services which are required and in need by them.
This helps to know more about what is the basis through which the business can grab the
opportunities and strengths from the market structure. Along with this, major benefits of this
business are described as follows –
 ASDA shoppers will get grocery delivered in 30 minutes with Just Eat and it has
extended its services by delivering pizza at the doorstep (Busco and et.al., 2020).
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 All the supermarket shopping will be now available with the collaboration of ASDA
which will help in grabbing the customers’ attention towards the services and products
which they are availing to the customers.
 The ASDA kitchen menu offers a feast of lovers with the venue into the fast - food
market.
 Along with this, the main thing which is being observed is that the company is expanding
its scale of business into the eatery items which helps in making and framing the business
into more diverse forms.
These are the major benefits of the business which has been taken into consideration as this
evaluates the perspective of customers and their requirements in building up the business at large
scale in an effective and efficient manner. This opportunity of ASDA partnering with Just Eat is
making the measure of how effectively the aspects of business are being developed significantly
(PG, 2018). Apart from this, business is now scaling up to form and deliver the services through
which all perspectives of what are main aim and objectives of business are evaluated and
fulfilled. The online food delivery services of Just Eat helps in knowing the scale of customers
within the market and competing with the other online food delivery services such as Swiggy,
Zomato and Uber Eats etc. They have increased the business competition which has made
products and services compete in the market strictly at large scale. Therefore, benefits of Just Eat
has made the market of ASDA has grabbed the opportunities within market.
The business development strategy of ASDA for Just Eat to exploit the opportunity is
described as how the business has grabbed the market and is promoting its business at large scale
so that it reaches maximum number of customers (Schroeder and et.al., 2019). The business
development strategy of ASDA applied for Just Eat to run the business more in market is done
through cost leadership strategy which helps the business in gaining the competitive advantage
and helps in increasing the sales and profits within the business of Just Eat as well. This helps in
knowing the low pricing strategy which is being followed by the company for the business which
it is in partnered with. Cost leadership business strategy involves the selling of services and
products which are delivered through the Just Eat online food services delivered to the
customers.
The company sells its products and services at lower prices to the customers than its
competitors. This helps in attracting more customers’ at large scale and through this they are able
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to take initiative against the strategy which is being framed in competition with the other
companies in running their business. This also helps in maximizing the profits and sales of the
products and services which reach the customers at large scale in the market structure (Tworek
and et.al., 2018). The use of cost leadership strategy which ASDA follows for its partnered
business Just Eat to run successfully has helped in knowing more about the business which is
created and evaluated for the sake of delivering the services and products to the customers and
grabbing the target market effectively and efficiently. This strategy also helps in selecting the
suppliers so that high and standard products and services are being delivered to the customers
through the cost of reasonably affording the suppliers. Another cost leadership strategy function
which ASDA is taking into account is that the company is establishing well planned and proper
distribution channels that help in lowering the cost of the finished products of they are damaged
while transmitting.
There are various recommendations which are provided for the business to grab the
opportunity from the market. These are described as –
 For making the business of Just Eat reach the scale, it becomes very important to analyze
and evaluate the market structure so that the main competitors within the market are
known (Dunderdale, 2018).
 It is recommended that all the possible facts and information about the business should be
known in prior so that the details are not missed and the business works accordingly.
 Various other types of strategy apart from cost leadership strategy should be framed so
that there are different measures through which all the aspects of business are covered
which requires different ways in establishing the Just Eat business run successfully
partnered with ASDA.
 Varied forms and different customers perspective should be known so that the products
and services are known and this helps in knowing that online food delivery services are
reaching the customers as per their needs and requirements and is being fulfilled (Son and
et.al., 2019).
Thus, these are the major recommendations which ASDA should consider which helps in
enhancing the business at large scale and through this the Just Eat business is also evaluated and
scaled up in progressive manner. This will also help in growth and development of company in
effective way.
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Justification of how the venture will be developed in an international market
Just Eat venture within ASDA is deciding to develop in an international market which will
help in initializing the scale of products and services. This will help in engaging the customers at
large scale through which all the perspectives of creating how effectively the business will take
place within the international market (Natorina, 2020). This will help in engaging suppliers and
the vendors to make the products and services reach the large scale of customers within the
international market. For increasing and expanding the business in the international markets
there are different ways which helps in creating value through which the services are to be
provided to the customers who are demanding and are in need of necessary products and
services. This will also help in increasing and diversifying the market area by knowing the target
market and the customers who are in need of the services which are being framed for them to
effectively incur the services of Just Eat. The Just Eat principal developer has spoken about the
advantages of modular app development at the recent event. There has been development of the
apps which will provide the Just Eat products and services to the customers in UK (Bojkova and
et.al., 2019). There are two distinct teams which are handling the apps. One team is dedicated to
UK where the company began its business with varied customers’ at large scale. While the other
apps are being handled for the international markets. This helped the business to run effectively
within the diversified markets and enabled the customers to make available the services and
products at large scale which helped in evaluating the perspectives of how effective and in
appropriate manner the sales and profits of the business in the international markets are being
calculated.
The main aim of expanding the business in international markets is that it helps in knowing
and analyzing the perspectives of customers as to what are the needs and requirements are
concerned of. Just Eat venture will be developed in the international markets with the help of app
instalment which will help the user or the customers to order the products and services online
through the apps which are being used by them through networking channels made available
(Lundberg and et.al., 2018). As the developers were expanding the scale of business through the
application installed for the products and services to be made available in the international
market structure, they decided to take the modular approach which helped in moving the app
forward as it was expanding rapidly at large scale. They laid strong foundations for the app
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development so that there is no misuse and failure while the app is being used by the customers.
There were various improvements which were made in reference to app which was being
installed as per the convenience of the customers’ at large scale. There are various features which
are provided in the app which helps the customer’s order their food and other eatable items at
large scale. The Just Eat app offers menus from various other regions.
Systematic assessment of the external environment within the international market aligned with
the internal capabilities of the firm
The external environment within the international market aligned with the internal capabilities of
the firm are described in the manner which helps in diverting and expanding the scale of business
by making the products and services of Just Eat from the ASDA to be provided to the large scale
of customers. The external environment is assessed with the help of PESTEL analysis which is
described in the following manner that it gets aligned with the internal capabilities of the firm.
The PESTEL analysis is explained as below for the Just Eat business which is taken into
consideration as –
Political – The political aspects such as risk of military invasion within the international market
can be the main reason for the product to be launched in the international markets and this helps
in knowing that there are some legal frameworks which are to be considered importantly for the
Just Eat products and services to be made available to the customers within the international
market. Along with this, taxation policies are important points are to be concerned within the
international market (Gregory and et.al., 2019).
Economic – Economic aspects are important to be considered which affects the international
markets and the Just Eat market is initializing the base to invent the products and services in the
international markets. The exchange rate and stability are the major factors which affects the
products and services if they are introduced in the international markets. The economic growth
rate is rapidly increasing and decreasing which affects the products and services of Just Eat when
introduced in the international market.
Social – Social aspects are also impacting the international market which also is considered for
the Just Eat products and services when ASDA will promote its products and services in
international market at large scale (Park and et.al., 2020). There are different cultures which
affects Just Eat business at large scale when the products and services are introduced in
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