Impact of Market Oriented Practices on Corporate Governance and Performance of Company

Market orientation and
corporate strategy

Table of Contents
Topic: To determine the impact of market oriented practices on corporate governance and
performance of company. A case study on ASDA..........................................................................3
CHAPTER 1: INTRODUCTION ...................................................................................................3
Background of the study ............................................................................................................3
Research Aim .............................................................................................................................4
Research Objective .....................................................................................................................4
Research Questions ....................................................................................................................4
Problem statement of study ........................................................................................................4
Rationale of research ..................................................................................................................5
CHAPTER 2: LITERATURE REVIEW ........................................................................................5
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................9
Research Philosophy...................................................................................................................9
Research approach ...................................................................................................................10
Research method ......................................................................................................................10
Source of data collection...........................................................................................................10
Time frames and activities........................................................................................................11
CHAPTER 4: DATA ANALYSIS................................................................................................14
Interpretation and review of collected data ..............................................................................14
CHAPTER5: RECOMMENDATION AND ACTION PLAN .....................................................26
Recommendations ....................................................................................................................26
Action plan ...............................................................................................................................26
Reflection..................................................................................................................................28
Conclusion................................................................................................................................28
REFERENCES .............................................................................................................................30
APPENDICES ..............................................................................................................................32

Topic: To determine the impact of market oriented practices on corporate
governance and performance of company. A case study on ASDA.
CHAPTER 1: INTRODUCTION
Today's era of marketplace is being highly competitive and globalised which directly
impact over customer taste or preference and market trends in order to acquire higher level of
satisfaction. Hence, the aspect of market orientation plays a important part within organization as
it lead them to cope with all current or emerging marketplace needs in an efficacious mode. The
concept of market orientation is refer to an approach which enable an organisation to identify the
need as well as desires of consumers and take corrective course of action by introducing the
product with an intention of rendering high level of gratification to targeted audience in an
improved manner. Moreover, with the adoption of market orientation inside firm it impose
several benefits to company such as enhance consumer loyalty, improve brand image, enlarge
market size and many more (Arrigo, 2018). Apart from this, the element of market orientation
has three alternatives which an enterprise can implies within its business function i.e. sales ,
product, production orientation. Hence, it can be stated that market orientation practices
influence company's overall performance and its corporate governance in a positive or negative
way. In context of this research, Asda company has been regraded as it is leading and reputed
retailer in UK retail industry by covering the product range of grocery, financial service, general
merchandise all over the world. In this research report, it encompasses research aim, objective,
rationale, questions as well as gathered different scholars opinion and presented in the form
literature review. Furthermore, make use of various research methodologies for creating relevant
report in present marketplace. Finally, interpretation of collected data by utilising appropriate
software and recommended suitable views to organisation for enriching its proficiency ratio.
Background of the study
For understanding the concept of market oriented practices within an organisation and its
influence over its performance Asda company has been considered. Hence, Asda is one of the
well recognised and branded retailer in UK retail industry (Bello, Halim and Alshuabi, 2018). It
is founded in the year of 1949 and subsidiary of Walmart. Along with this, it deliver grocery,
general merchandise, financial service across the globe by keeping high quality. However, the

industry where Asda function its functional unit is highly competitive and challenging in terms
of acquiring technologies, marketing tactics, dealing with industrial or market trends and so on.
Due to which, it directly affect over establishment capability in fulfilling its sales target in a
prescribed time limit. Hence, with the application of market orientation enable organisation to
determine the customer demand or need and also to offer best quality of products for obtaining
profit maximisation in a amended mode. Furthermore, it also drive organisation to put its brand
in an combative and competent place by keeping best quality in delivering products or services
and imposing affordable price as per marketplace trends or competition (Duan, Cao and
Edwards, 2020).
Research Aim
The aim of this research is “ To study the impact of market oriented practices on
corporate governance and performance of company” . A case study on ASDA.
Research Objective
 To identify the usefulness of market oriented practices in Asda
 To investigate the influence of market oriented practices on performance of the company
 To study the relationship between market orientation and corporate governance.
Research Questions
 What is the usefulness of market oriented practices in Asda?
 What is the influence of market oriented practices on performance of the company?
 What is the relationship between market orientation and corporate governance?
Problem statement of study
In this current era of marketplace, every form of organisation are attracted towards the
concept of globalisation as it lead them to introduce their market division without any trade
barriers (Dina and Cahy, 2018). On the other hand, it also impose huge challenge over
organisation in regard of fulfilling the existing or emerging customer trends and demands in an
amended manner. Due to such challenges, it impact negatively over the potentiality of
establishment in placing its brand in a better perspective and also to create positive response
among targeted audience within desired time frame. Additionally, as the market trend changes it
modifies consumers taste or preference which threat establishment to obtain high level of
satisfaction from desired population in nan improved mode. Henceforth, proper usage of

resources empower Asda to improve its overall brand reputation as well as can enrich sales
performance among rivalries.
Rationale of research
The core reason behind choosing current topic for current research study is that for
attaining sustainability in terms of productivity and profitability among competitors the aspect of
market orientation is regarded as one of the important element. This is because, it assist
organisation to identify the customer demand or need and also motive them to apply accurate
strategic decision with a purpose of enhancing market share or size in an positive manner. Along
with this, by conducting such study it enable researcher to evaluate the degree of threat or
competition between companies in order to modify overall performance in a improved style.
Furthermore, by organising such research, it also empower researcher to understand and
discover the relation between market orientation and corporate governance for improving the
proficiency ratio of establishment in an effectual mode. However, it also aid investigator to
examine the potentiality of competitor and also to take corrective course of action for attaining
competitive edge in an amended way. Apart from this, organising such research report, it motive
researcher to understand different research methodologies in order to develop a valid and reliable
report in a specified time duration in an efficient way.
CHAPTER 2: LITERATURE REVIEW
To identify the usefulness of market oriented practices in Asda
According to the views of Brian Hill, 2019, In the existing scenario of industry, there is
an intense level of opposition among companies in regard of placing the brand in a better
position, acquiring advanced technologies, generating market strategy for accomplishing the
business goal in an amended manner (Glaveli and Geormas, 2018). However, to deal with such
competition or rivalry in an efficient way, the aspect of market oriented in companies is viewed
as an integral determinant. This is because, it is an organised or systematic approach that
empower firm to determine customer need or trend and also motive them to impose appropriate
strategies or tactics which lead them to receive high level of satisfaction and loyalty from
consumers towards brand. In addition to this, the market oriented practices involves meeting out
the expectation of consumers, developing relevant marketing tactics on the basis of industry
trends or competition, implementing innovative technologies and etc. Hence, the core purpose of

market orientation is to bring increased level of customer satisfaction to gain competitive edge
over competitors in an effectual way. Along with this, the term market orientation is centred
upon three major dimension which assist establishment to accomplish its sales target like
customer, competitor orientation and inter-functional coordination. With the amalgamation of
these three element, it support Asda to enhance its profit margin ratio and also can take best
strategic decision to face dynamic nature of business environment. Apart from this, as per
scholar opinion it has been signified that the market oriented based business are characterised by
several attributes which impact over its potentiality to acquire positive response from consumers
for a long term (The Importance of Market Orientation for Emerging Firms, 2019). However, the
practice of market orientation is viewed as a useful aspect in Asda because it drive them to
conduct market research to examine customer need, aid them to introduce novel product or
services, empower to utilise product innovation methods and so on. Due to such role, it help
Asda to make or accept any sort of modification and changes into its current marketing tactics
without any hindrances as it lead them to achieve impressive style of success among rivalries in
an improved way.
In the view of Sam Ashe Edmunds, 2020, For attaining sustainable growth and
development, an organisation requires to introduce such products and services which is capable
of generating consumer loyalty in an improved mode as well as help them to acquire aggressive
position among competitors in a stipulated time duration (Herman, Hady and Arafah, 2018). In
this relation, market oriented practice plays a important role as it is concern with identifying
customer demand or need and developing suitable products or services in order to improve sales
performance within current industry. In addition to this, it drive Asda to analyse targeted
population potentiality and willingness to consume the particular products and on the basis of
that firm will be able to set affordable pricing strategy with an intent of maintaining long lasting
relationship in an amended manner (The Importance of Market Orientation for Emerging Firms,
2020). Along with this, it also drive Asda to understand the accurate scenario of industrial
competition which assist an organisation to make use of various promotional techniques like
sales promotion, public relation, personal selling, online or digital marketing, direct sales and so
on. With the utilisation of these promotional activities, it aid Asda to enlarge its market share or
size and also to cover wide range of population in an innovative style without any hindrances.
Apart from this, the practice of market orientation is to investigate or analyse the degree of

opposition between companies and also to anticipate the factors of existing business environment
in order to enrich the capability of Asda to obtain profit maximisation in an efficacious way.
Henceforth, for surviving inside industry for longer time frame and also to build healthy
relationship with customer the application of market oriented practices help Asda to accomplish
its pre determined objective as well as can meet high margin sales among focused consumers in
an amended mode (Jacoby, 2018).
To investigate the influence of market oriented practices on performance of the company
According to Dawit Tsegaye Sisay, 2017, As per current market analysis it has been
examined that an effective and productive market oriented practice is an essential component.
This is because, it aid an establishment to deliver the product or services on the basis of
customer demand or requirements in an effective manner. However, the concept of market
oriented define as a customer centred approach as its primary concern is to anticipate the
consumer preferences and make best strategic decision for maximising the profit margin and to
satisfy the population in an improved mode. Along with this, there are main different
determinants that involves under the aspect of market orientation are customer, product,
production, supplier, competitor orientation and inter-functional cooperation. Hence among
these various determinants of market orientation, customer orientation is considered as a key
factor to drive an business to improve overall performance in a better way (The influence of
market orientation on firm performance and members’ livelihood in Ethiopian seed producer
cooperatives, 2017). However, application or usage of market orientation inside organisation's
functional unit it influence its performance in a positive way. This is because, it support Asda to
retain its desired audience for longer time period towards brand by producing best quality of
commodity in an affordable price. Additionally, it also empower Asda to analyse its internal and
external factors such as political, economical, social, legal, technological and etc. in order to
enrich the capability of enterprise to gain competitive advantage among rivalries in an
expeditious manner (Luu, 2019). The another influence that Asda acquires with the application
of market oriented practice in its business function is that adoption of innovative or advanced
technologies as there is a huge demand among UK population regarding automated or artificial
intelligence inside business premises. However, it drive Asda to attract the attention of large
number of population towards brand by developing some online services like creation of
webpage, official websites, internet booking and many more. Henceforth, such contribution of

market oriented practice, it help Asda to place its brand in an aggressive or competent position
and also can attain sustainable growth in an effective way within prescribed time limit.
According to Ajayi M. Oluwatoyin, 2018, The aspect of market orientation enable an
organisation to create long lasting satisfaction and value among customer towards brand in an
impressive style. In this context, with the proper utilisation of available resources such as
promotion of product, pricing strategy, quality of commodity, placing in best location, following
simple procedure for delivering it enable Asda to stay competitive within the existing uncertain
business environment (The Impact of Market Orientation on Performance of Selected Hotels in
Ondo State, Nigeria, 2018). Henceforth, on the basis of overall understanding of the term market
orientation it has been identified that its is positively related to Asda performance. This is
because, it aid company to analyse the consumer demand and market competition as well as lead
them to make best contribution in order to obtain maximum level of consumer satisfaction and
generate affirmative outcome among targeted audience in a stipulated time period.
To study the relationship between market orientation and corporate governance
According to Georgios Batsakis, 2017, Market orientation is represented as a major
marketing strategy in which primal concern is about understanding and satisfying customer need
or demand in an effective manner in order to reach competitive edge (Corporate Governance
and Tobin's Q as a Measure of Organizational Performance, 2017). Hence, the usage of market
orientation is regraded as an important component as it enable establishment to offer value and
also to empower them to enhance its business performance consistently in an amended mode.
Moreover, in current business environment majority of the products are available within fierce
market which has direct interaction or affect over firm's profit margin. Hence, the only way that
help organisation to remain competitive is that optimum utilisation of available resources and
also can fulfil the customer requirements in an efficacious way (Molander, Fellesson and Friman,
2018). However, the concept of market orientation aid company to maintain parallel
communication inside cross departments as well as can motive firm to react with market changes
in an impressive or productive style in an expeditious mode. On the other hand, the term
corporate governance is define as the combination of policies, procedures, rules, process, laws
through which an organisation are operated, governed, directed and controlled with an aim of
accomplishing pre defined goal in an amended way. Therefore, it has been determined that there
is strong and healthy relationship or connection among market orientations and corporate