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Organizational Structure of Asda and Tesco

   

Added on  2020-12-29

15 Pages3410 Words277 Views
ASDA Stores Ltd vs TESCO PLC.

Table of ContentsINTRODUCTION.................................................................................................................................4MAIN BODY.........................................................................................................................................41)The external environment..............................................................................................................42) Organizational performance..........................................................................................................63)Organizational structure.-...............................................................................................................74)Comparison of the two companies-...............................................................................................9CONCLUSION-...................................................................................................................................10REFERENCES.....................................................................................................................................11

INTRODUCTIONBusiness and Management refers to managing the different types of operations of the company. Itincludes all the methodologies, applications and systems that are used by the companies to satisfythe changing needs of the targeted customers through developing innovative products. So that,business can ensure competitive advantage over its competitors. Asda Stores Ltd. is a retail Supermarket. It belongs to retail industry. It was founded in 19thFebruary. It's headquarter is in Asda House, South Bank, in West Yorkshire. Founders of thecompany are Sir Noel Stockdale, Peter and Fred Asquith. Its main products are general merchandise,grocery and financial services.Tesco Plc. Belongs to retail industry. It was founded in 1919 in England, United Kingdom by JackCohen. It's headquarter is in England. Key products of the company are Hypermarket, Convenienceshops, Supermarket etc. We have chosen Asda Stores Ltd. to compare with Tesco because, both are the largest privateretailing companies of retail sector of United Kingdom. To compare the external environment,organizational structure, organizational performance of Asda Stores Ltd. with Tesco Plc.MAIN BODY1)The external environment.External environment includes all the forces that are outside the business and affects theoperations of the company. Business cannot control external factors. PESTLE ANALYSIS-Asda Stores Ltd :Political Factors- There are many political factors that are affecting the working of Asda. Whencompany wants to open any store in any city or country it has to take the permission of local council.European Union has removed all the trade restrictions for Asda. It has provided an opportunity to thecompany to tap the global markets. Government of China has also permitted Asda to import goodsfrom the country. Economic Factors- There are various economic factors that can impact the working of Asda. Like,level of employment, competition in retail industry etc. National factors like, level of employment,rate of inflation etc. also impacts the operations of company. There are some European factors thatcan also affects the company like, policy of government related with investments. Example:

government provides subsidy to farmers due to which company has to keep the cost of supplyinggoods lower.Social Factors- Nowadays, customers are becoming more and more health conscious. So thedemand of organic food is increasing. Asda has to ensure that, it is supplying better quality oforganic food to satisfy the needs of customers. People of U.K. are having engaged life schedule so,company has to consider this factor in opening and closing timing of the stores. Technological Factors- Competitors of Asda are using Electronic Commerce as a marketingstrategy for marketing their products. Asda has started investing huge amount of funds for marketingand distributing its products through online channels.Legal Factors- Asada has its operations in U.K. So, it has to comply various rules and regulations ofgovernment of the country. Company has to follow the standards of trading, regulations of foodstandard authority etc. Company also follows all the laws related with labour protection atworkplace.Environmental Factors- Consumers are becoming more and more aware regarding environmentalissues and ethical issues. So, company is focussing on recycling the packaging of products. Tesco Plc : Political Factors- Tesco has its operations in different countries so, it has to follow various rules andregulations of the government of those countries. Certain factors that are affecting the working of thecompany are political instability, rate of taxation, economic development of the country etc.Example- Company imports certain goods from countries other than U.K. On which company needto pay import duty this has increase the price of goods of the company(Pidd, . 2015).Economic Factors- There are many economic factors like, cost of labour that affects the workingcompany. Cot of borrowing funds in U.K. also have impact on cost and profits of Tesco.Unemployment condition impacts the performance of company in domestic as well as globalmarkets.Social Factors- Trends of buying goods are changing constantly. Tesco should consider the concernof consumers regarding obesity. Company is making efforts for satisfying the need of organic food.Tesco is considering the attitude and beliefs of consumers while marketing and distributing thegoods.

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