Impact of Environmental Changes on Organisational Design and Management Function: A Case Study of ASDA

Foundations in
Management

Table of Contents
Introduction .....................................................................................................................................3
MAIN BODY...................................................................................................................................3
scope and purpose of management and organisations................................................................3
Contemporary issues impacting on management in organisations.............................................4
Applying Porter’s five Forces Model.........................................................................................8
Applying the Balanced scorecard to Simulation.....................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

How environmental changes have impacted on modern organisational design and the
management function.
Introduction
The external environment includes many factors that may posses a impact on the way
organisations are functioning. The first factor mainly includes external environment that is
related with the overall environmental stability. Internal environment is influenced by the
employee influence on the functioning (Macnamara, 2018). ASDA stores are one of the largest
British supermarket chains. Its headquarters are present in Leeds, England. It was founded in the
year 1949. Present report is based on making a detailed evaluation of the way environmental
changes have affected the way organisational design is being formulated and the overall
management functions.
MAIN BODY
scope and purpose of management and organisations
Organisation structure is defined the way organisation can achieve the objectives and
goals. There are different type of structures that a organisation can adopt as per requirement of
their functionality.
In ASDA it comprises of 10 members which is based on the hierarchical structure. At
store level they are having four layers of management it includes super stores, metro and extra
formats. Three or four management layers in the subtle store (Troup, 2020). The organisation
structure is at store level the main focus is on generation of collaboration and coordination
among various members. There are many advantages of having a hierarchy structure as it helps
in having clearly defined promotion plans and career paths with proper levels of control. Further
with changing customer needs as external factors there is encouraging of specialisation that leads
to serving customers in more effective manner. In ASDA there are approx 145,000 stores that are
dedicated to ASDA colleagues serving approx 18 million customers in the stores each week. The
estate has a range of formats that includes superstores and super-centres as smaller convenience
size supermarkets.

Contemporary issues impacting on management in organisations.
With the instances of rapid technological changes and globalisation over fast few times there are
many contemporary issues that are arising in the organisation. There is need of some specific
cognitive skills and organisation behaviour to enhance the aspect of critical thinking for the
purpose of producing efficient managers (Bak, Jordan and Midgley, 2019). In context of ASDA
being one of the large retail sector organisations it becomes more important to understand it as
per the way overall functioning of organisation is taking place.
STEEPLE analysis:
It is a model that is used for the purpose of analysing the various external factors that are
affecting the present functioning of business.