Asda's Motivations and Success Factors

This assignment analyzes the motivations behind Asda's entry into the retail sector. It highlights factors such as strong leadership, potential for high profits, and a deep understanding of retail techniques. The document also examines Asda's innovative distribution and selling strategies, customer loyalty programs, and expansion into financial services to meet public demand. Finally, it discusses the importance of legacy and long-term impact in motivating entrepreneurial endeavors.

Summer 17
Effectiveness in the Business World (EBWO3001) – Resit Portfolio
Name:
Student Number:
Lecturer name:
Assessed Learning Outcomes:
1. Demonstrate an understanding of the concept of the organisation and the
environment in which it operates, including determining the competitive advantage
for an organisation.
2. Identify and analyse organisational operations, responsibilities
3. Discuss the needs of the consumer and people who work in a business.
4. Recognise a range of issues related to business and how they interlink.
Week Contents Learning

Page outcomes
Week 3
LO2
Choosing one business from the list, OUTLINE with
the aid of a diagram, the organisational chart for the
business and describe the key features of the
organisational structure (e.g. flat or tall and functional
areas) and responsibilities.
3 LO2
Week 4
LO1
1. Briefly discuss the importance of the Porter's five
forces framework to any given business.
2.Using your knowledge of the framework, conduct an
environmental analysis of your chosen company in
task
4 LO1
Week 5
LO4
Choose an organisation from the list provided and state
the industry it belongs to.
Discuss how the company has adapted to the changing
needs of the workforce or in response to pressure from
it.
5 LO3
Week 6
LO3
Describe an organisation that has had to adapt to
changing customer demand. How did they do it? How
successful were they?
6 LO3
Week 7
LO4
Select an entrepreneur in business of your choice.
Provide the link to the source and date published.
1. Briefly describe the type of entrepreneur are they.
2. Discuss the reasons andFiske, S.T. and Taylor, S.E.,
2013. Social cognition: From brains to culture. Sage.
their motivations for becoming an entrepreneur.
7 LO4
Total word limit: 1500 words (+/- 10%)

This Portfolio is a working document that MUST be completed over the 11-week course. For
some of the tasks, you are required to apply concepts and theories discussed during lectures
to business news stories.
By the end of the 5 week course, you should have completed 5 tasks. You will also be
required to work on your Portfolio during your weekly tutorial session.
Below are some companies you may choose to discuss and news sources that can be used to
find information about them.
Please note that you cannot resubmit work from previous semesters. You should
choose different examples of companies, organisations and entrepreneurs from any
written about previously on this module.
Possible Companies to Discuss:
Possible News Sources:

ASSESSMENT - PORTFOLIO
Week Task 1 Word
Count
Week
3
LO2
Choosing one business from the list, OUTLINE with the
aid of a diagram the Organisational chart for the Business
and describe the key features of the organisational
structure (e.g.
flat or tall and functional areas)
300
Words
Business:
An organisational structure should be sound in terms of structure. There are five
main features that a good structure has:
1. Clear line of Authority.
2. Proper delegation of work.
3. Fewer managerial levels.
4. Proper emphasis on staff.
5. Unambiguous and Flexible.
Clear line of Authority: Structure adopted can be in any form, but there should not
be any ambiguity in the structure. Running from higher level to lower level there
must be clear line of authority. Implies that what is to be achieved from the
organisation should be very clear and what official relations are to maintained by
them. Frictions and inefficiencies occur when there is unambiguity in clarifying
lines of authority. (Hong and Lu, 2016.)
Proper delegation of work: When the authority is divided properly it would be
effectively explained as the concept of ultimate authority. It is the authorization of
powers to different managerial persons in order to make decisions for the
organisation.
Fewer managerial levels: As far as possible it should be taken care that there are
less managerial levels in the organisation. If there is longer line of communication,
it would create problem in communication process. Delay in communication would
lead to, delay in implementation of decision making process.

Proper emphasis on staff: Line and staff functions should be separated from each
other, particularly in large organisations. Line staff purposely serve the
organisational objectives for example production activities.
Unambiguous and Flexible: There are changes in the environment from time to
time, thus the structure once prepared cannot be rigid. Organiser makes structure not
for today (present) always it considers the tomorrow (forth coming) aspect as well.
As such continuity is there in the organisational operations the circumstances which
are not fixed requires to incorporate changes. That is why structure should be
adaptable so that it is easy for the organisation to incorporate the new and
demanding changes in the organisation.

Week Task 2 Word
Count
Week
4
LO1
1. Briefly discuss the importance of the Porter's five forces
framework to any given business.
2.Using your knowledge of the framework, conduct an
environmental analysis of your chosen company in task 1
300
Words
Business:
Five forces model was introduced by the
Michael Porter for the assessment of the
industry. The five forces are viz. competitive
rivalry, barriers of entry, threats of
substitutes, bargaining power, suppliers
power.
Competitive Rivalry: Retail sector is
beyond any doubt very complex, for all the
companies whether new or existing. So
every retailer has to come up with new ideas

to avoid failure in the strategic management.
(Rock, 2014)
Barriers of Entry: In retail sector there are
many barriers that a new entrant has to face.
It requires lot of investment which is the
most significant barrier, along with creating
the brand image and product loyalty.
Threats of substitutes: There are always
new innovations in the sector, and not every
rival can put same efforts in the
organisation. Asda has only threat of other
supermarkets present in the sector. Thus, it
has to only focus upon how to predict future
damages at early stage.
Bargaining Power: Power from buyers
increases when there is existence of
competitors that sell the same products. The
difference can only be from customers in
terms of price and loyalty. Economic
stability is another factor that consumers
keep in their mind in order to find suitable
product for their family.
Supplier Power: Problem occurs when the
supermarkets do not sell their products,
consumers will shift from their loyalties and
this enable the suppliers to become
powerful.
Environmental analysis of Asda (SWOT).

Asda has strengths in its strong
management, Walmart is the parent
company of Asda has made senior
management changes. Another strengths are
its Innovative culture and economise of
scale. Weaknesses of Asda are it does not
hold stores like Tesco and Sainsburry's.
Additionally, it does not have loyalty card
for retaining customers.
Opportunities for Asda are its online
marketing and its expansion outside UK.
Threats for the company are the fierce
competition it is facing from other retailers
and consistent price cuts by other rivals.
(Chhokar, Brodbeck and House, 2013.)

Week Task 3
Week 5
LO3
Choose an organisation from the list
provided and state the industry it belongs
to.
Discuss how a company has adapted to
the changing needs of the workforce or in
response to pressure from it.
Business:
ASDA belongs to the retail industry of UK and it is second largest chain of UK in the
mentioned sector. There are several product lines that are offered by the ASDA at its
retail stores. Currently, huge competition is going on in the market as small retail
players like Lidl and Aldi are giving stiff competition to ASDA in the market (Georgi,
Wirtz, Xiao and Tang, 2017). Thus, there was pressure on workforce of the retail
chain. As it become difficult for the employees to determine the products where they
must make sales of the product to generate more and more revenue for the business
firm. Managers feel huge pressure while preparing business strategy (Retail
innovation, 2017). On other hand, employees find it difficult to choose products that
must be specially targeted to the customers. Thus, firm failed to earn huge amount of
profit in its business and pressure consistently build upon employees to increase sale
of the product. Thus, in order to remove pressure from the workforce firm adopt
analytic solutions. Under this regularly data is collected and send to the analytic team.
Relevant employees make use of different data mining techniques to analyze the data.

Among these techniques market basket analysis is one that is used to large extent by
the business firms. Under this, firm make use of market basket analysis and by using
this method it is identified that if certain product is purchased then what other product
customer may probably purchase. Thus, combination in which people are purchasing
products from retail stores is identified by using analytic tools. On the basis of these
identified combinations firm determine the products on which offers must be given in
order to increase sale of the product. It can be said that due to usage of this method
decision making process of individuals become simplified and burden of making
tough and effective decisions reduced to managers to great extent. It can be said that
there is huge importance of the analytic tools for the business firms because by using
same data can be analyzed in proper manner by the business firm. Currently, there are
number of business firms that are focusing on developing there in-house
infrastructure of data management and analytics.(Caldwell, Caldwell, Hayes, and
Hayes, 2016) Main aim is to ensure that reliable prediction will be made by the team
and decisions will be made in right direction and no one will be able to steal data.
Hence, it can be said that there is huge significance of analytics for ASDA in terms of
reducing pressure from workforce.

Wee
k
Task 4 Word Count
Week
6
LO3
Week Task 4
Week 5
LO3
Choose an organisation from the list provided and state the
industry it belongs to.
Discuss how a company has adapted to the changing needs
of the workforce or in response to pressure from it.
Organisation:

Asda is supermarket retailer and it has to fight with changes in the
environment. Company has 95 percent of fresh products, risking from climatic
changes as per the supermarket study. Asda, whose parent organisation is Walmart,
brought consultants to evaluate its entire worldwide fresh produce supply chain
against the models being used by the Intergovernmental Authorities on Climate
Change. (Alrabeei and Scott, 2014)
Company has been asking suppliers for discounts and cash contributions in
order to fight to the rise of discounts. Asda has become the most powerful giant in
retail sector facing heavy competition from faster grown discounters. The
organisation has been collaboratively working with the suppliers, in order to ensure
that right costs and quality for their products. Company has been viewing the
products in order to manage environmental change pressure.

Wee
k
Task 5 Word
Count
Week
7
LO4
Select an entrepreneur in business of your choice. Provide
the link to the source and date published.
1. Briefly describe the type of entrepreneur are they.
2. Discuss the reasons and their motivations for becoming
an entrepreneur.
300
Words
Asda is British supermarket retailer in United-Kingdom, headquartered in Yorkshire.
Founded 68 years ago in 1949, when the diaries associated merged with supermarket owned
Asquith family. Currently dealing in Grocery, general merchandise. Company has 631
locations as on 31st January 2017. Other than supermarket business the company has been
offering financial services and a mobile phone company using the existing EE network.
Company has subsidiaries of its own named Asda Mobile and Asda Money.
Asda motivations and reasons for becoming a retailer were its leadership qualities in
retail sector and it wanted to earn higher profits due to that competent ability. Company was
having good financial strength and knowledge of retail sector as well. There motivations
were from the profit margins that companies in this sector are earning. The quality of
leadership that company posses is a strength to company in successful market share. It has
come up with new innovations in distribution and selling strategies to attract customers.
Company has great knowledge of techniques that can be used to keep customers loyal
towards company for long term.
Another factor that has been motivating to company was increasing consumption for
consumables by the public. Due to increase in population the need for food and clothing
product were increasing. Additionally, it has invested in financial sector to satisfy people's
demand for finance as they need money for their necessitation fulfilment. Further, company
realized that not only finance but banking services can also be provided by them to satisfy
their needs of banking.
Legacy is factor that is always motivating to become an entrepreneur, every

businessmen ain't aim for money. Some want to become face of brand or taste of people for
longer term. Simply put, they target to leave behind something that people appreciate them.
Since it lasts for more time period creating something that is going to outlast for them.

REFERENCES
Hong, J. and Lu, J., 2016. Assessing the effectiveness of business incubators in fostering
SMEs: evidence from China. International Journal of Entrepreneurship and
Innovation Management. 20(1-2).pp.45-60.
Rock, D., 2014. Quiet leadership. HarperCollins e-books.
Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the
world: The GLOBE book of in-depth studies of 25 societies. Routledge.
Georgi, D., Wirtz, J., Xiao, P. and Tang, C., 2017. Effectiveness of Customer Referral
Reward Programs: The Mediating Role of Metaperception. In The Customer is NOT
Always Right? Marketing Orientationsin a Dynamic Business World (pp. 723-723).
Springer, Cham.
Alrabeei, H. and Scott, J., 2014. The Effectiveness of Business Support in Overcoming
Barriers Facing Bahraini SMEs: The Development of a Business Support
Effectiveness Index.
Caldwell, C., Caldwell, C., Hayes, L.A. and Hayes, L.A., 2016. Self-efficacy and self-
awareness: moral insights to increased leader effectiveness. Journal of Management
Development. 35(9). pp.1163-1173.