Influence of Globalization on Operational Strategy and Decision Making

This report examines the influence of globalization on ASDA's operational strategy and decision making. It discusses the size, type, and scope of ASDA, the interrelationship of functions on the company structure, and the external and internal influencers on business operations. Additionally, it explores the impact of globalization on ASDA's operational strategy and decision making.

BUSINESS REPORT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Size, type and scope of ASDA.....................................................................................................2
Interrelationship of functions on company structure...................................................................3
External and internal influencer’s analyses on business operations............................................5
Influence of globalization on operational strategy and decision making.....................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business report is an examination of specific problem, set of situations and financial
operations that relate to business activities and performance. It is form of response to an
executive of organizations. It also refers to type of project in which management analyzes overall
condition and applies business theories to make a range of recommendations for further and
current improvement as well.
The current study is based on ASDA, is one of the Britain’s leading and most popular
retailers. They have dedicated workers who are able to serve their consumers from network of
outlets and online services including superstores, living outlets, depots and other things across
United Kingdom
This assignment will discuss type, scope and size of company, interrelationship of
functions on company structure and internal as well as external influences on business
operations. Furthermore, this report will also explain influence of globalization on organizational
decision making and strategy.
MAIN BODY
Size, type and scope of ASDA
Organization stands for associated dairies, it was founded in 1949 and owned by Asquith
family merged with associated diaries firm of Yorkshire. ASDA is a public limited firm which is
also known as PLC. Wal-Mart is an American retailing firm who owns this company their
shareholders own firm and this causes ownership to always modify as share are constantly sold
and bought. According to the report of January 2017, organization superstores accounted for 330
of firm’s sum 631 UK outlets. ASDA supercentres are wider hypermarkets while firm
superstores are wider scale supermarkets with considerable range of adjacent services and non
food goods like petrol filling stations, cafes, dinners and other amenities (Seong and et.al., 2019).
Besides their outlet supermarkets firm also offers a number of other services, including mobile
phone and financial services provider that utilize existing EE network. Organization is number
three in supermarket share with more than 15.6% stake after leader Sainsbury’s and TESCO.

Firm have more than 145,000 dedicated ASDA workers serving and performing more than 18
Million buyers who shop in their stores every week.
Organization estate has a varied of formats including their biggest superstores and
supercentres as well as their few convenience size supermarkets. They also have their dedicated
living outlets across nation. It operates their business in more than 27 countries with skilled and
dedicated workforces who are able to serve its best to target market. Supercentres are the biggest
stores of this firm they offering extended range across George, food and non-food often
contributed by concessions such as banks, dry cleaners, food service offer and hairdressers.
Milton Keynes is their largest store measuring at more than 100,000 square. ft.
By describing the size and scope of ASDA it analyzed that their supermarkets are
smallest store and are deployed across United Kingdom from Newquay to their most northerly
outlet in Tain, Scotland. Smallest store of firm is Meanwood, Leeds which is 3,000 sq.ft. It
focuses on convenience and food and offers important non food products (McPherson and et.al.,
2019). Furthermore, it analyze that company living stores are dedicated to non food items,
providing a range of fashion, George home and general merchandise to their consumers. Along
with above things, their petrol filling stations also offer pay at kiosk and pay at pump services as
well as few convenience outlets that caters people with different food to go and travel friendly
items which in return gain attention of more buyers towards them.
Interrelationship of functions on company structure
Organizational structure of ASDA is formal hierarchical functional structure as company
has so many functional departments. With this structure organization gain several benefits as it
help them to run and operate many functions in effective manner. It also aid firm run their
business and earn profitability by grouping workers based on their expertise and skills. It caters
clear hierarchy and decrease confusion among staff who may be unsure who they are to report to.
Marketing, research & development, finance, human resource management, operational and
technology are varied types of functions within firm who are doing their role and accomplish
responsibility.
Interrelationship of functions on company-
Production connection with research & development-

Production is one of the best most important and useful functions of ASDA as they help
to promote services and products of company in marketplace. This department always works
more closely with R&D section because they provide information about target market needs and
preference to produce products accordingly. Research and development aid direct future of firm
because they cater important data and idea that help strategic decision making (Shaner, 2019).
Skilled applicants in research team were able to gather data and then cater it production
department. They both function work together for increasing productivity and profitability of
company rather than its competitors. Production department with data or information provides by
R&D produce products for consumers according to their needs which in return gain attention of
new buyers in effective manner.
Marketing relation with HRM-
Marketing department play vital role in ASDA they promotes business and drives sales of
their services and goods. With effective team and skilled applicants they cater essential
investigation to determine their target market and other people (Oakey, Cooper and Biggar,
2018). They promote other things in market regarding business such requirement of vacancies.
Marketing department works effectively and efficiently with human resource management to
increase productivity and sales of business by promoting unfilled position at workplace. To
require new applicants in company marketing team help HRM by creating job advertisement
content for them which makes them able to hire skilled workers in organization which in return
increase profit margin of business and contribute in achieving competitive advantages. It
analyzed that marketing and human resource management work effectively and they have good
interrelationship with each other.
Operations management and Finance-
Along with above functions, operations management is also important for ASDA. It is
administration of company practices to develop highest level of efficiency possible within firm.
It is concerned with converting materials into finished products or services as effectively as
possible to increase profitability of business rather than before (Udo and et.al., 2017). All it
happen when finance department allot funds to operations management. It makes them able to
purchase raw materials and then allow producing products according to market needs. In order to

complete overall procedure of production finance section provide money. It can be said that
operations and finance departments play essential roles in ASDA.
All above discussed interrelationship between functions increase operational efficiencies
and generate more revenue (Anderson, 2018).
External and internal influencer’s analyses on business operations
SWOT analyses-
Strength-
ASDA is a world famous organization or retailer they provide quality goods and services
to consumers (Haydock and Smith, 2019). Extensive distribution of organization is their strength
they has about 25 distribution centers across United Kingdom that distribute across network of
outlets. These are utilized basically to store clothing, ambient goods like carbonated drinks and
chilled foods. Firm with this network serves its best and increase their profit more than its
competitors. Organization has a wide range of items especially produced for middle and high
class of buyers. Along with this strength, firm also provide financial services to local people.
Weakness-
ASDA has certain week point that shows as its weakness that directly impact on
productivity and operations management of business. Firm has little international presence as
compared to their competitors in retail industry, it is a major weakness of their company. It does
not make them able to spread their business all around the world. Limited global presence
directly affect consumers base and restrict company to gain competitive benefits. They can lose
their market position as compare to other retailers in sector. This weakness reflects what barriers
are in firm which would let them achieve their aims.
Opportunity-
Global business expansion is one of the best opportunities ASDA can gain for increasing
their profitability and sales within retail industry (Chaffey, Hemphill and Edmundson-Bird,
2019). Emerging economies in varied nations are seeking for obtaining quality products and
services. When firm gain their chance they can server emerging economies and people who are

able to pay fix amount that increase sales and profit margin of ASDA. They can progress further
by opening new outlets and enter into new marketplace at global level. With this chance
company build their strong brand image within marketplace and all over the world in effective
manner.
Threat-
It is the last component to discuss in SWOT analysis in context of ASDA. It analyzed
that firm faces a number of competitors in United Kingdom. Other notable competitors are Lidl,
Waitrose and Morrison’s who are able to give tough competition to chosen firm. Intense
competition in market place between existing players create complex situation for ASDA as they
feel more pressure to adopt and implement strategic management plan that is impossible within
short term period. It is also worth noting that progress of independent online retailers is also
threat for company.
PESTEL analysis-
Political factor-
Trade regulations, taxation policy, political stability or instability and other factors
influence decision making and operations management of companies. It analyzed that European
Union presented a better chance for ASDA to expand their business into European markets as
most of trade obstacles have been removed. It allow firm to gain competitive advantages,
increase their profitability and productivity rather than before. With this opportunity company
can achieve set aims and objectives in effective manner and serve more people’s across national
boundaries. This political factor put positive impact on sales and success of firm and allows them
to become market leader.
Economic factor-
Unemployment rate is one of the economic factors that affects success and growth of
ASDA in positive manner. It gives company a opportunity to acquire applicants from talent pool
who are able to increase productivity by working according to the management needs and
accomplish day to day activities on timely manner. There are many people in this world who

always want a good chance, but when they don't get a chance, they go out of the city to do some
work for themselves. By offering job opportunities company can retain them for long.
Social factor-
As buyers become more informed and aware, there is an increased demand or
requirement for organic food products implying that firm has to assure that it has organic items
in their providing in order to meet needs of target market who are keen on organic goods. This
factor impact on ASDA sales positively because they are selling items according to market needs
and provide them organic products that is beneficial for buyer’s health and makes firm able to
retain them for longer.
Technology factor-
As utilize of technology is ever progressing, mobile applications and superfast broadband
along with click and pick delivery services are extremely and highly essential for company.
Technology development and advancement put positive impact on sales and productivity as well
as consumer services of company. It makes them able to produce items in timely manner,
response consumers queries via using many digital sites and enhance marketing activities rather
than before. It increases operational efficiency when company implements advanced technology
in production procedure which is quite beneficial in every term.
Environmental factor-
Government and consumers all around the world are concern about environmental safety
and sustainability they put pressure on many retailers to reduce carbon foot print which make
firms able to sustain for long within specific marketplace. This factor put positive effect on
ASDA business growth because they are using recyclable materials in different situations like in
food packaging of most goods that can protect environment from landfill. These activities of
company make them capable to gain attention of new consumers and also help them to retain
potential one for long.
Legal factor-

Rules and regulations related to employment put high pressure on many company to
change their business practices and comply with laws that are especially created for workers
safety and well fare. ASDA by providing equal growth opportunities to their workers create
positive and creative work environment around workplace that enhance their performance as
well as productivity level rather than before. By complying with and adhere to all laws they offer
positive work atmosphere to existing and new applicants at work area where candidates can work
effectively.
Influence of globalization on operational strategy and decision making
Globalization is word utilized to describe progressing interdependence of world’s
cultures, economies and populations, brought about by cross border trade in products and
services, flows of investment, technology and information. High ranging effects of this factor are
difficult and politically charged. As with major technology developments, it benefits businesses
as whole. In context of ASDA Company, Globalization influence organizations business
expansion strategy effectively and positively and makes them able to take better decision. It
connect different nations together outcome in expansion of global cultural, political and
economic activities (Pieterse, 2019). It increases global competition which drives firm to develop
their plan for gaining more attention of new consumers and it also help to create a wider variety
of choices for people. It allows ASDA to find lower cost ways to manufacture their items that is
appropriate for needs of buyers. It give company a best chance or access to drive towards
entering into new market where number of buyers are able to pay for quality items or services in
exchange for money.
ASDA develop their plan for business expansion and take decision accordingly because it
is really very important for them to become market leader. They gain this chance from
globalization, including diverse revenue streams and consumers. Firm interested in these benefits
look for innovative and flexible ways to progress their business oversees.
Furthermore, this element also influence decision making of company in varied ways for
example they can decide to hire new applicants into new marketplace who are capable to know
more about local people needs and desire as well as wishes they seek to obtain. Globalization
increase competitive environment at market which makes firm stronger to beat their competitors

at national level and strengthen them to reach at international level which in return increase sales,
productivity, profitability and consumers base more and more.
To again all benefits and advantages ASDA develop strategy work accordingly that is
beneficial for them and provide many benefits for longer period of time (Tarasenko, Yermakov
and Pchelin, 2017). By hiring more candidates company will cater their services in effective
manner more than before and it will also increase their sales. From all this discussion it can be
said that globalization put positive influence of organizational decision making procedure and
strategy development. By gaining all benefits firm build brand image in all over the world and it
will increase their reputation more than before.
CONCLUSION
From above analysis it has been concluded that ASDA is one of the best retailer in UK,
they cater quality products and services to consumers according to needs which in return retain
people with them for long and drive new one as well. By working together marketing, finance,
operational management, human resource administration and other departments increase
operational efficiency of business. Furthermore, it has been summarized that with strength and
opportunities ASDA effectively overcome their weakness and threat which in return enhance
their sales and revenue.

REFERENCES
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