Global Strategic Management Plan for ASDA

This report discusses the existing strategy of ASDA and changes it requires in it. It includes a detailed analysis of internal and external environment with recommendations for improvement and contemporary strategic issues faced by the organization.

GLOBAL STRATEGIC
MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION ..........................................................................................................................4
Purposes.......................................................................................................................................4
Background..................................................................................................................................4
DISCUSSION ANALYSIS ............................................................................................................4
CURRENT STRATEGY ................................................................................................................5
INTERNAL ANALYSIS ................................................................................................................6
Swot analysis...............................................................................................................................6
EXTERNAL BUISNESS ANALYSIS............................................................................................6
Pestle analysis .............................................................................................................................6
PROS AND CONS OF EXISTING STRATEGY ..........................................................................8
Pros..............................................................................................................................................8
Cons.............................................................................................................................................9
IMPROVEMENT TO EXISTING STRTAEGIES.........................................................................9
DIFFERENT CONTEMPRORARY STRAEGIC ISSUES .........................................................11
CONCLUSION..............................................................................................................................11
RECOMMENDATION ................................................................................................................11
REFERENCES.............................................................................................................................13

EXECUTIVE SUMMARY
This report was aimed to prepare a constructive global strategic management plan by
highlighting existing strategy of the ASDA and changes it requires in it. Further a detailed
analysis of internal and external environment with recommendation of various strategies for
improvement and contemporary strategic issues faced by the organization has been discussed.

INTRODUCTION
Purposes
Global strategic management is related to expansion world vision which is considered the
possibilities of every locations as a market and as source of competitive advantages while
integrated with rest of firm. There is different type of global strategies used by firm in order to
expand their business such as export, standardisation, multi domestic and transnational. Further
report will have based on Asda and report will discuss by analysing different type of strategies
used by company with existing strategy used by company (Tucker, 2018). Then study on the
basis of internal and external analysis of Asda with the relevant framework such as SWOT
analysis and PESTLE analysis. Further, identifying pros and cons of existing strategy and then
improvement of existing strategy by analysing different type of contemporary strategic issues
faced by Sainsbury. Also, recommend the best strategy that can used by company for its global
presence or expand its market effectively.
Background
Asda, trading as largest chain of supermarket in the United Kingdom, founded in 1949 by
Noel Stockdale and JW Hindell. Now company was the largest UK retailer of groceries of 20th
century. There are three division of company such as supermarket, bank and Argos. In the year
2021, the largest shareholder holds shares of organisation with profit of 14.99%. Company
present at more than 6500 shops, in 27 countries. Company also present at online market in order
to expand the store as well as it help to attract large number of customer. Asda is global related
to discount retailer with global presence at Denmark, Slovenia, France, Benelux countries,
Poland, Switzerland, China, Austria etc. There are different types of strategies used by company
in order to focus on staying competitive within global food retailer industry. Also, this is
including slow or conservative international expansion approach which is based on cost
leadership and efficiency within firm.
DISCUSSION ANALYSIS
It has been discussed that there is different type of strategies used by company for its
global presence as well as it helps to expand their market in order to make it more competitive.
Also, company delivers the product to Austria in order to make the price more competitive as
wells’ s it helps to combine parcel from different UK retailers by having multiple items in single
delivery to Australia which can save for a lot from free shipping. ASDA is successful by

following agile approach to its development also there are different type of online projects which
are followed by company. Also, the project is related to first validated idea stage with customer
and colleague focus groups and user best experience workshops (Ferdous, 2018). There are
more than 633 ASDA location are present in UK and most of the number of location are in UK
England with 514 locations by which company gets 83% of all ASDA location in UK. Then
market share of company is related to 14.5%. There are different type of pros and cons of
strategy used by company but it is necessary to work on to be competitive as well as good brand
image of organisation.
CURRENT STRATEGY
There is different type of strategies followed by company in order to focus on market
analysis as well as it develop growth strategy which is combining expanding reach online and
physical stores are also increasing. It has identified that it is necessary to focus on innovation by
expansion in new market into increasing product range and expanding brand identity.
Strategy used by ASDA for its success is related to low cost products also this is one of the
cores competencies of ASDA plc in order to become cost leader and compared with its
competitors. Also, organization has offered its products at low price which can be compared to
its other competitors in UK, that is related to key success for ASDA. Further, there are wide
ranges of portfolio in order to believe in mass selling and also adopt product at cheap and
reasonable pricing strategy in order to attract customer in large scale. The main focus of
organization is to promote by low price strategy in order to create high sales volume and profit
margin. Then by understanding the low costs' agenda company offer lower price for it customer
and also committed by providing customers with outstanding value for money across its entire
range of food, general merchandise and clothing (Büyüközkan, Havle and Feyzioğlu, 2021).
There are large number of customer are increasing in order to attract with low price as well
as it help to allow organization in order to gain market share by attracting new customers by
spreading the word about the offering and enticing customers away from competitors. The main
goal is related to rapidly penetrate the market and eventually it helps to raise price without losing
those early adopters. Also, pricing is one of the important aspect which define different types of
value of product which are worth for making customer to use. This is based on tangible prices
point in order to let customers know whether this is work for time or investment.

INTERNAL ANALYSIS
Swot analysis
Strength-
 There are huge range of product are available in the market and different type of services
which attract customer for getting Asda smart price, George clothing, Asda money etc.
 Also, ASDA can attract large number of customer by providing them low pricing product
or services also it helps to get competitive advantages (Benzaghta and et.al., 2021.).
Weakness-
 There are large number of competitors are available for Asda in order to focus on
providing large number of product and services at supermarket such as Tesco, Sainsbury
etc.
 It can be said that there are limited global presence of company as compared to its
competitors.
Opportunities-
 To improve business operation Asda has opportunity of acquiring small business in order
consider better expansion.
 There are long term goal of ASDA in order to focus on target 100% by recycle package.
100% sustainability etc.
Threat-
 Pricing with other retailer
 Regular chaining policies by government.
EXTERNAL BUISNESS ANALYSIS
Pestle analysis
PESTLE analysis is the study of external factors such as political, economical, legal,
technological, environmental, social, which impacts the working of the organization. Let's
discuss a detailed pestle analysis of ASDA.
COMPONENTS PARTICULARS
Political factors These are the factors which are driven by the political authorities in the
country. UK's government move to leave the European union in 2016
which is also called Brexit has impacted the business of ASDA as it

imports the raw material from abroad. And such political action can
make the affordable imports very difficult for the company (Alanzi,
2018). Trade barriers have increased resulting in increased cost of
import which ultimately increases the prices of the end products.
Economical factors Factors like Rising cost of fuel (diesel and petrol) have risen the cost of
operations for the business leading to rise in cost of products. Further,
presence of so many strong and reputed players like Morisons,
Sainsbury, tesco etc. creates the high competition in the market which
makes business difficult for the ASDA. High inflation rate in the
country has reduced the purchasing power of the individual and
increased the cost of goods because of expensive raw material. This
entire scenario has made the operations really challenging (Doody,
2021). Covid-19 and the pandemic that was followed by it had severely
made the survival of business difficult.
Social factors A large part of revenue comes from the sales of fast food products, but
the recent shift of UK population towards the health conscious food
choices doesn't include the junk food items. It leads company to keep up
with the healthy product line in order to serve the customer and retain
them. Another vital challenge is the market share of younger generation
and there expectation of having customer centric products at affordable
prices (Haydock and Smith, 2019). Fair trade movement in UK has
pushed supermarkets to pay more to the farmers to support them but
these practices does not lead the profitability, and increase cost of
operations for the company.
Technological factor With the fast pace of technological advancement in the industry, it is
required of ASDA to have a strong database of its consumers and
potential consumers in order to provide people more customized
experience at the stores. As this can be a customer centric approach
where ASDA can serve customers according to their taste and
preferences. Keeping an updated online site of the company which

improves customers experience (Doody, 2021). Maintaining such
database makes company vulnerable to cyber threats and it further
requires ASDA to build a strong cyber security in the company, it
requires huge capital to undertake the process.
Legal factor ASDA needs to comply with various regulations made by FSA( the food
standards agency) to keep the quality of the food products authentic,
therefore, time to time keeping quality check on food products is an
important factor for the company. Abiding by the various employment
laws, regulations as in the past it has faced many legal actions by
women who claimed of getting less pay than male employees in the
organization, such factor negatively impacts the brand image of the
ASDA.
Environmental factor As consumers are very aware of impact an organization has on the
environment, ASDA needs to have environmental friendly approach in
order to maintain healthy relationship with the customers. Adopting
various eco friendly approaches like reduce, reuse, recycle, reduction of
carbon foot prints and using green energy are very important for the
company to have a strong brand image in the market (Michaud and
et.al., 2021). And having conscious way of working in the organization
leads to customer loyalty as well, this is something an organization seek
in the long term.
PROS AND CONS OF EXISTING STRATEGY
Pros
 Increased sales volume- In order to set low price for product and services help company
to increase sales volume as well as it increase position in the market by making more
beneficial. This strategy can work for company by following different type of strategy in
order to make customer base and also company focus on the basis of current trend
position in the market by presenting wide variety of product and services. This is
considering as the good chance for user that they can switch from competitor’s product.

 Reaching wider student- By remember about competitors it has been analysed that by
makings low price of product are help to improves its brands in order to focus on getting
good quality of products (Soltani and et.al., 2018). Then there will be no requirement of
marketing if company using that kind of strategy as well as it help to spread from mouth
by family, friends and peers that ASDA is famous for selling product at low price in
order to target audience by economy oriented and ready to purchase products which can
be offered so long.
 Decrease in lower cost- This is something probably when faster turnaround of your
inventory and then there were many products are need to keep them stored for long time
or placing storage cost minimum.
Cons
 Credibility- It has been analysed that there are some cons of low strategy pricing which
provides opportunity for competing on global level as well as it is downside of benefits.
Then, by operating in e-commerce it has been related to focus on the competitors that are
related to pricing as well as a hundred of thousand of competitors so that this is related to
situation in which company can be faced problems (Opreana, 2021). Also, there is issue
with low price product in order to focus on product delivery by charging high prices as
well as it can be said that sometimes company can not afford the low price because of
shipping.
 Perception of quality- the [perception of quality can be different while product sale at
low price because at that time customer are think that if the product sell at low price it
can be considered as company compromise with quality as well as it can be said that
there are difficult top sell products to this customer who are not believed at low price
because their expectation is much higher.
IMPROVEMENT TO EXISTING STRTAEGIES
Porter five forces-
 Competitive rivalry (high)- In the retail store it has been analysed that there are high
competitive market for grocery also existing player are doing good job. Then ASDA has
mains competition of Morrison, Tesco and Sainsbury each of these are working
differentiate itself. On the other hand, company make its presence by offer low pricing
product or services to attract customers.

 Threat of new entrants (high)- There are high threat of new entrant in order to focus on
huge capital investment required for make position in market. It can tough to stand in
market where there is already high market share company are present (Kovaleva, 2020).
 Power of buyers (low)- Customer are played major role in retail sector in order to
purchase the product from those market where they get discount or low pricing of goods.
That is why ASDA consider buyer has low price because company can attract large
number of customer by providing them discount or offer which help to increase sales.
 Power of suppliers (high)- There are large number of supper in market also they have
opportunity of supply their goods to any supermarket where they can get better rate. As
well as it can be impacted by company more focus on supply their goods to Tesco
because it sells product at high price as well as it attract supplier to get better price. Threat of substitute goods (medium)- There are number of supermarket at UK that is
why it almost sells same product which attract large number of customer.
Blue ocean model-
According to this model it has been described that company should use this strategy to
focus on strategy of innovation as well as it help to provide information regarding putting
emphasis on value and innovation. Supplements of ASDA are not only redefines the values but
also focus on providing proposition of existing customers by creating new value by targets
different customer. Value innovations can be depended on four major elements such as follows
 Buyer utility- This is help for focus on core values, features or utility ASDA
supplements services and products that deliver to buyer and get extras benefits to it
(Zanatta, 2019).
 Price- In traditional sceneries there were competitors that can compete in leadership and
management by following other traditional approach such offer customer more for less.
In this situation company face challenges related to profitability.
 Cost- Mangers of ASDA can use supplement related to innovation by which it can be
overcome all the limitations which are discussed in porter five forces. Also, With the help
of blue ocean model company focus on both strategies such as differentiation and low
cost.

 Adoption- If company use innovations it has been said that this is related to isolation of
value by which it helps to lead to very low level of adoption no matter how important
technological breakthrough.
DIFFERENT CONTEMPRORARY STRAEGIC ISSUES
Resource limitation- This has been analysed that due to pandemic company has faced
issue regarding resource limitation in order to consider it as not able to allocate resources
effectively by focusing on offering product and services. Then it has been said that at that time
customer has shifted to another supermarket due to improper supply chain (Trim and Lee,
2021).
E-commerce products- ASDA has followed low pricing strategy in order to focus in
different type of problem related to if customers order product at low price it might be impacted
through cost of delivery charges. It has been critically analysed that this issue can be solved by
focus on large number of product and services can be delivered on fix criteria of company.
Globalization- This is one of the major impact which faced by company in context to
competitive advantages as well as it has been faced by company during expansion of business as
well as it can be impacted by not following proper requirement of business, There are large
number of competitors are existed for ASDA.
CONCLUSION
The above report of “global strategic management” has comprehensively illustrated the
existing strategies of the ASDA. ASDA is a UK based super market chain. The report shaded
light on various internal and external factors of the organization that affects the strategy of the
business. Further various models, analysis, theories are used to prepare a strategic management
plan for the ASDA. For this purpose, SWOT analysis, pestle analysis and other important
measures have been undertaken to know the ins and outs of the management. At last various
crucial strategies which can enhance the business model of ASDA have been recommanded.
RECOMMENDATION
 It has been recommended that in order to competitive positioning entails by measuring
taken by an organization in order different services to company which can create value
as well as help to create good number of profit (Wang and et.al., 2021). Then to improve
technology is the best strategy for innovation by increasing productions which help to sell

product at low price. This is also help to give different type of enduring solution to
operational problems ijn orders to achiever information system that help for integration.
 Company should focus on gaining competitive advantages by which ASDA need to
identify gaps which can be related to internal business environment and other external
factors. Then following strategy related to focus on online market it will help to improve
marketing strategy as well as it help to attract large number of customers.

REFERENCES
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