Context of Business Assignment PDF : ASDA

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Company Background.................................................................................................................1
Rationale ....................................................................................................................................2
Vision .........................................................................................................................................2
Leadership style .........................................................................................................................2
Management Practices ...............................................................................................................3
Management Strategies ..............................................................................................................3
How this achieved and implement in ASDA ............................................................................4
Recommendation for future improvement .................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Context of business is the most important tool that is use in the organisation. It helps the
organisation to improve the performance of the employee's. It helps to analyse the environment
in which the business operate. The present study is based on ASDA which is the leading retail
industry in UK which provide various product and services such as groceries, financial services
and mobile. This report will cover the background of the company and also the reason to choose
the company. Further it will cover the vision of the ASDA and different leadership style,
management practices and management strategies. And also it includes the implementation of
ASDA and at last it includes the recommendation that should adopt by the ASDA to improve the
working of the organisation.
MAIN BODY
Company Background
ASDA is the leading British supermarket retailer. Its headquarter is in Leeds, West
Yorkshire. The company was founded n 1949 when the supermarket owing Asquith family
merged with the Associated Dairies company of Yorkshire. And also ASDA is one of the oldest
retail industry with 70 years of services. ASDA is also listed on the London stock exchange until
1999 when it was acquired by the American retail giant Walmart for £6.7 billion. ASDA 's
business is supermarket but besides this it offers many services such as financial services and
mobile phone. ASDA is very famous for its quality as it offers high quality with low price and
promote itself under the slogan ' save money . Live life' . ASDA also has various subsidiaries
such as ASDA mobile and ASDA money. ASDA rapidly expanding to open large superstores in
edge and out-of-town locations and build stores with district centre smaller towns. ASDA has
16,5000 employees who work hard to achieve the objective of the company . Also, ASDA serves
various products such as grocery, general merchandise and financial services.
The key people of ASDA are Roger Burnley who is the CEO of ASDA and Andry Murray who
is the chief customers officers of ASDA. And also ASDA has 633 number of location as on 31
January 2019 (Souto, 2015).

Rationale
The main reason to choose ASDA is for its outstanding performance and also facing so
much up and down ASDA give tough competition to its competitor. Also, ASDA has £21,666
million revenue and operating income up-to £791.7 million which is the great figure. Also,
ASDA uses effective leadership style which helps the organisation to run in the better direction.
And also uses management practices and management strategies which help the employees to
run in the right direction. ASDA has various opportunities to expand the business and earn better
profit. And ASDA is planning for the diversification of its product to master in many areas. Also,
ASDA focus on its employees and give them excellent facility and also motivate them to work
hard and achieve goals of the organisation. By all the attribute ASDA become first in the retail
industry and also it is famous for its high quality services which are offer in low prices.
Vision
The main vision of the company to provide satisfactory services to the customers and also
become one of the leader in the retail industry and run the business for the long time. And also
earn loyal customers and win the trust of the customers.
Leadership style
Leadership style plays a major role in the organisation as it provides direction,
implementation, plans and helps to motivate the people to work in better way. Leadership style
are the behavioural pattern that the leader adapt to influence the people that is the way he directs
its subordinates to fulfilled task and the organization objectives (Bell, Bryman and Harley,
2018). By the help of proper leadership style the employees perform in outstanding way with
innovative ideas and skills. There are mainly three leadership style which are been explain
below-
Autocratic Leadership style
This style is also known as Authoritarian leadership style in which leader provide clear
structure of what need to be done, when to be done and by how it should be done. There are clear
division between the leader and the member. In which the leader decide the rules and regulation
and the subordinates has to follow it. They are not allowed to take part in decision making
process. The leader independently take the major decision of the organisation.
Democratic Leadership

This leadership style is one of the most effective leadership style in this the leader
involve the whole group for the decision making process and also provide guidance for the
problems. And also it helps to improve the decision making power of the subordinate and
enhance the creative and innovative skills of the employees .
Transformational leadership style
It is one of the most desirable leadership style, it is all about creating friendly work
culture with effective communication in team. This leadership style focus on setting up of high
goals with deadline to achieve those target . And also leader challenge subordinates so that better
result will be obtain .
Management Practices
There are various practices which are being perform by the manager to improve the
working of the member and also to improve the efficiency and effectiveness of the employees by
continuously motivating them and providing them right direction. These practices help the
employees to improve their performance . There are various practices that are being perform by
the manager which are explained below-
Reward efforts – One of the best practices that the manager should perform is giving
recognisation to the employees as no one likes their work to go unrecognised. Recognisation of
efforts help the employees to work in the effective way. And also rewards helps people to
achieve more and helps to build company loyalty (Yahaya and Ebrahim, 2016).
Performance monitoring – this is the most effective way of monitoring all the aspects of the
business. By monitoring the performance of the employees and providing them feedback about
their performance employees will work in the better way and also it will improve the
performance of the employees.
Clarity – the third practices that are performed by the manager is established a clear and specific
performance goals for the people's job. It is important to communicate clearly with the
employees. It provides a link between team's daily work and organisational strategies.
Management Strategies
Management strategies are the techniques used by the manager to direct and control the
organisation so that to achieve the goals and objective of the company. Strategies gives direction
to the company and also helps to achieve the desirable goals (Arnold and et.al, 2015). There are
various strategies which are being use by the manager such as-

Decision making – the first and foremost strategy that is use by the manager is involving
employees in decision making process and also allowing their innovative ideas and crating skills.
That will improve the efficiency of the company and improve the decision making process.
Culture – The second strategy use by the manager is to respect the culture of the employees and
provide good environment culture so that they work in the positive manner and also there will be
fewer chance of conflict between the member of the company.
How this achieved and implement in ASDA
The leadership style, management practices and different types of strategies affect the
whole working of ASDA. It is important to select the best type of strategies so that it become
very easy to attain the goals of the organisation. And it is very important to implement the
leadership style and the practices in the postivbe manner . This all practices and style helps the
employees to work in the effective way and also helps the organisation to run in the right
directions (Albrecht and et.al, 2015).
ASDA is the leading industry with excellent profit figure. This all achieve by the great
workforce who support ASDA to emerge as a leader in retail industry. The leader of ASDA
adopt democratic style which help the company in many ways. As this leadership style help the
employees to come up with the best innovative ideas and creative skills . And also this provide a
platform for the employees to share the ideas. In this leadership style the leader allow the
employees to take part in the decision making process . This will improve the decision of
ASDA . And by adopting this leadership style the morale of the employees also increases. This
will help employees to work in the team and overcome the barrier which they feel in the growth
of their business .
ASDA use reward efforts as a management practices. As it consider as the tool for the
success of business. As ASDA believe that by giving recognition to the employees and giving
various rewards for their achievement it will motivate them to work hard and also they will show
more committed towards the work and the company . ASDA gives various rewards to the
employees to improve the effectiveness and efficiency of the employees (Campbell and Reyes-
Picknell, 2015).
ASDA uses decision making strategies to improve the working of the organisation. As
these strategies helps ASDA in many ways . As this will help to encourage the employees to
work in the better ways, as it open the door of innovative ideas and creative skills and allow

employees to take part in the decision making process. By these employees will feel that they are
the important part of the organisation and also they will feel confidence . By this ASDA will
improve the decision making process by allowing fresh blood to take decision .
Recommendation for future improvement
ASDA is one of the leading retail industry and adopt a suitable leadership style,
management practices and strategies that will help ASDA in many ways. But also there are many
recommendations that ASDA can adopt of the betterment of the company.
It is recomendent for ASDA to use transformational leadership style to work in the better
way. As this leadership style is most desirable style . In which the leader focus on the effective
communication of the company . Effective communication helps the company to imp[oves its
working. As in this style the leader set very high goals in the organisation and motivate the
employees to work even harder to attain the target of the company (Litman, 2018).
It is recommended for ASDA to use performance monitoring practices along with the
rewards efforts. So to improve the working of the employee. The basic motive of performance
monitoring is to monitor the performance of the employees and give them feedback about their
performance of the employees and giving them chance for improvement. And also appreciating
the employees about their performance. So that employees work in more effective way .
The third recommendation for ASDA is to provide good culture in the business and also
to respect the behaviour, attitude and culture of the employees. So that there will be a positive
environment in the company and fewer chances of conflict and members work in the team and
take corporative decision in the organisation (Noe and et.al, 2017).
CONCLUSION
From the present study it has concluded that the leader and manager plays a vital role in
the organisation and also if the function perform well by the both than it will improve the
working of the company. From the above report it has concluded that democratic leadership style
is effective leadership style and also used by most of the leader. Further manager uses rewards
efforts as a management practices and decision making as a strategy to motivates the employees
and enhancing their performance. Further, in these report it has cover the various
recommendation for the company such to use transformational leadership style , performance

monitoring as practices and culture as strategies to improve the working of the company and run
the organisation in the right direction.

REFERENCES
Souto, J. E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management.51.pp.142-155.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
review. Journal of Management Development. 35(2). pp.190-216.
Arnold, K. A and et.al, 2015. Leadership styles, emotion regulation, and burnout. Journal of
Occupational Health Psychology.20(4). p.481.
Albrecht, S.L and et.al, 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance.2(1).pp.7-35.
Noe, R .A and et.al, 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Campbell, J.D. and Reyes-Picknell, J.V., 2015. Uptime: Strategies for excellence in maintenance
management. Productivity Press.
Litman, T., 2018. Parking Management Strategies. In Parking Management Best Practices (pp.
86-225). Routledge.