Review and Analysis of Strategic Management Resources

This assignment involves reviewing and analyzing various resources related to strategic management, including academic journals, handbooks, and online articles. The resources cover a range of topics, including business models, dynamic capabilities, and SWOT analysis. The assignment requires the student to summarize and analyze the key concepts and findings from these resources, providing a comprehensive overview of the current state of knowledge in strategic management.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic direction and thinking for future..................................................................................1
TASK 2............................................................................................................................................3
Analysis of industry....................................................................................................................3
TASK 3............................................................................................................................................5
Fulfil demand..............................................................................................................................5
TASK 4............................................................................................................................................7
Possible strategies.......................................................................................................................7
TASK 5............................................................................................................................................8
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management of all strategies should be done by employees of business entities as it
assists in attaining targets. When they do proper management then this will include formulation
along with implementation of goals and according to that initiatives needs to be taken by higher
authorities of business entity. Along with this they have to adopt appropriate resources and on
the basis of that assessment can be done whether it is internal or external environment so that
they can attain success in high competition (Barney and Hesterly, 2015). Strategic management
is an identification along with description of all strategies so that managers can carry out proper
research which will assist in boosting their performance as well as productivity when employers
are facing high competition. Present report is based on ASDA as it is a subsidiary business entity
and operating income of firm is £1 billion. In below mentioned report, strategic direction of firm
in past years as well as strategic thinking has to be demonstrated.
TASK 1
Strategic direction and thinking for future
Strategy refers to plans and that should be taken into action with a proper designing so
that managers of ASDA can attain their goals. Strategy is a direction along with a scope of firm
in reaping their success for long term. Along with these employees should use appropriate
resources so that they can meet demands of markets as well as expectations of stakeholder. For
reaping success in market, for each and every business entity consumer loyalty is necessary.
Mission statement is made by company for a long term and it is to deliver better quality
products which will assist them in becoming successful in attracting large number of consumers
(Bettis and et. al., 2016). Purpose of ASDA is to made merchandise according to consumers and
also at a reasonable price so that everyone can afford.
Vision statement of ASDA has to be prepared according to service users and for that they
have to make correct judgement on the basis of their suitability and according to that they are
attaining their goals in past years. Vision of the firm always be strong so that employees can
develop their culture and improve financial strength.
SWOT analysis of ASDA
Strength Weakness
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 Company having approx. 16.8% market
share.
 ASDA is selling different products and
having a brand image in competitive
market (Buckley, Burton and Mirza,
2016).
 Two much staff members are working.
 If ASDA wants to boost productivity
then products and services of company
may decrease their values as well as
quality.
Opportunities Threats
 Business can be expanding in
international market.
 Increase their range of products and
also can launched distinctive
merchandise.
 Proper support can be provided by
regulatory authorities and also assist in
decreasing or reducing tax.
 Consumer taste changes.
 Labour cost raises on the basis of
production.
 Increases in new along with substitute
products and services.
In managing each and every aspect of business entity, correct decision making is
necessary. They are making correct judgements for a long term which help them in increasing
their investment in terms of finance. There are some steps which employers adopting for making
correct decision which includes that they are setting their goals and objectives and according to
that information collected by them. After that employees need to identify and analyse alternative
solutions. Then all options which they gathered should be evaluate and among these best option
should be opt by them (Carraher and Paridon, 2015). Strategies which ASDA is using in past that
managers have to analyse in a proper manner. Strategic direction and thinking sometime creates
gap among allocation as well as integration of resources which they are using. Gap which created
have to analyse properly by determining, documenting as well as approving variance among
business requirements along with current capabilities.
Owner of company would have worried about success by using strategy. If these
strategies become successful, then for future development some feedbacks can be taken and
according to that they can make strategies.
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In ASDA working culture is different. In a team, all members work in a appropriate
manner and offer best products. For business entity, consumers are a main part and they have to
provide merchandise at a affordable price (Carroll, 2015). While they give their best
performance than at that time, huddles come around and for that proper conversation needs to be
done. Managers of ASDA should make changes according to strategies and for this relevant and
appropriate resources should be utilised. Along with these staff members have to put more
efforts as well as time for making changes. Managers has putting more efforts for make correct
and relevant strategies as well as attain targets.
TASK 2
Analysis of industry
ASDA is a largest chain of supermarket and they are having a approx. 17.2% market
share. ASDA is a subsidiary business entity as well as they have to analyse along with the
evaluation of environment in firm. For doing analysis of their competitors or external
environment PESTEL can be adopt.
Political Factor: ASDA having a good opportunity so that they can expand their business
in international market which will helps in resolving barriers. This will help in increasing the
sales of company and generating more profit. Instability having an impact on the decision
making of manager in business entity (Chiarini and Vagnoni, 2015).
Economic factor: These are the factors which play an important and essential role to reap
success in UK economy. When economy of UK facing recession then they are having a majority
of people which lost their jobs which having a less power on spending. ASDA generating more
and more revenue by selling their consumers.
Social factor: These are the changes which includes ageing population as well as healthy
lifestyle are important and essential for ASDA. They have to understand some social factors
which helps in introducing new merchandise along with the services in competitive market. It
assists in developing their segmentation strategies.
Technological factor: Managers of ASDA have to use or adopt updated technology which
will help in adopting technological innovations which includes online retailing as well as e-
marketing so that they become successful. All supermarkets are working on a constant basis on
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the updated technology so that they can attain their goals and objectives (Demil and et. al.,
2015).
Environmental factor: It having a positive impact which is related to environment. Along
with this they have to provide environment friendly environment to their employees so that they
cannot face any issues in expanding market and attaining targets. There are some factors which
are important and essential for ASDA which includes hazardous waste, pollution, carbon
footprint as well as organic foods etc.
Legal factor: Managers and employees of business entity have to follow appropriate rules
and regulations as well as laws and policies which are made by regulatory bodies so that they can
implement those and provide better products and services to their consumers.
Porter’s five forces of ASDA is mentioned as below:
Threat of substitute products: As per this, manager of organization has threat of similar
items, which are produced by their rivals. People can easily purchase goods from marketplace
without pay extra cost. In context of ASDA, they offer various sorts grocery items to their clients
and their prices are varying from other firm’s merchandise (Dess, McNamara and Eisner, 2016).
Thus, it is essential for them to maintain quality of their products so that they can compete their
competitors in commercial center.
Competitive rivalry: In UK, there are lots of competition as there are too much firms
which provide grocery items to people. Along with this, there are likewise threat of new entrants.
The main competitor of ASDA is Tesco in marketplace. Thus, it is essential for enterprise to
develop an effective strategy so that they can take advantages from their competitors. Along with
this, they can create new products with best quality and at a reasonable price for them.
Threat of new entrants: There are various major players in retail sectors such as
Sainsbury, Tesco and so forth. Thus, if any new entry take place into market then there will be
tough competition. There is too much capital required in retail sector and if any new entry is
there in market then it is essential for them to have lots of experience. Along with this, it is
necessary for them to capture market share as well as clients trust (Helfat and Peteraf, 2015).
Power of buyers: If any enterprise wants to survive in commercial center, then clients are
very essential part. Demands of buyers are varied as per their tastes and preferences. Thus, which
firm accomplish their needs as per their choice lead in market.
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Power of suppliers: It is necessary for enterprise to maintain a healthy relationship with
their suppliers, it will assist them to survive in marketplace as well as compete their rivals.
ASDA has approximately 500 suppliers who are working for them and also provide them goods
so that they can accomplish demands of their purchasers timely (Karepova and et. al., 2015).
Scenario planning refers to different approaches which allow in making correct decision
so that they can make analysis in a better manner of drivers of change in their environment
which is related to business. It is a process and includes some steps:
 Manager have to identify drivers which helps in doing changes.
 After that analysis needs to be done by adopting distinctive methods that is SWOT or
PESTEL. Then competitive analysis needs to be done by different clients.
 After doing external analysis, employer should do internal analysis and on the basis of
that they can check the reality that how they are delivering their products and how much
profits they are generating.
 Then employees and managers should do planning for the uncertainty so that any type of
issues cannot be faced by them.
 They have to use different sources so that they can do proper planning for making
scenario. For using source appropriate process should be used which includes date,
information, knowledge, intelligence, actionable intelligence as well as action which they
have to take for making best scenario and then they have to do work on that which will
helps in attaining success in competitive market (Luo and et. al., 2015).
 After that they have to implement plans on the basis of appropriate pattern which affect
directly firm as well as their stakeholders which includes staff, suppliers and professional
networks. They have to deliver their current and future clients so that they can offer best
products and services.
TASK 3
Fulfil demand
Managers of ASDA have to make correct and relevant decision which will help
consumers in making best choices. The mission, vision along with values of firm assist in
fulfilling demands. Purpose of company is to save money of their consumers. Along with this
ASDA having a belief that is to provide services to their service users. They have to respect their
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customers. The business entity having a series of values and they are having some statements
which assist in determining decisions along with actions in marketplace (Morschett, Schramm-
Klein and Zentes, 2015). Supply as well as demand is an economic model which is depend on
price, utility along with quantity in a competitive market. ASDA is fulfilling demand of
consumer as they are having an ability to pay and willingness to buy by service user. There are
many factors which affect demand of products which are sell by ASDA. It having an effect of
price on quantity demand as well as economists so that other factors remain unchanged.
Individual consumers have to make plans so that they consume merchandise as well as
individual business entity have to make plans of production which is based on changes in market
prices. Mission and vision statement as well as their values of ASDA are made on a basis of
consumers’ needs and wants. Business entity is willing to follow requirements along with desires
of consumers as well as have to fulfil their basic needs so that they can help them in improving
and fulfilling need whether it is big or small. Manager of ASDA is taking best actions which will
help in fulfilling promise of consumers. Employer of business entity is doing proper research and
identify needs and wants of consumers (Nahavandi, 2016). According to that they have to deliver
products and services which will aid in satisfying them. In ASDA, there are having a clear
assignment between their vision, mission as well as strategies. ASDA attain their long as well as
short term goals by offering products and services according to desires which will aid in
attaining goals. Business entity having their own and best vision and mission statement and this
will be achieved by delivering merchandise. Demand of individual refers to quantity of goods
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and it is willing to buy by consumer at all prices but within a specified period of time. In graph, it
has been shown demand and supply of products of ASDA and this will helps in fulfilling their
mission and vision statement (Percy, Elliott and Rosenbaum-Elliott, 2016).
The company having some strategic capabilities and they are using some strategies which
includes:
 Resource based strategy: This strategy asserts that they are having some competitive
advantage as well as improving performance in competitive market. They have to
appropriate resources machines, buildings, products, patents etc.
 Redundant capabilities: They are having less relevant as it helps in making changes
(Rothaermel, 2015).
 Dynamic capabilities: It is an ability of ASDA so that they can renew as well as recreate
its strategic capabilities so that they can meet needs of environment which is changing in
nature. It helps in analysing new opportunities and sensing opportunities along with
threats (Slack, 2015).
TASK 4
Possible strategies
There are some strategies which can be used by manager of ASDA so that they can
defend for its core business. Strategies includes:
Consumer focused growth strategies: This strategy is also adopted by manager of ASDA. This
process assist in identifying and analysing growth opportunities which are profitable in nature so
that they can deliver best products and services in a geographical area. This helps in analysing
and evaluating core business which involves measuring as well as benchmarking profitability.
Along with this it increases the rate of revenue growth and maintaining the firm's reputation in
competitive market. This overall process takes more time and having a renewed commitment
which will helps in doing operational experience within the core business (Strumickas and
Valanciene, 2015). They have to do proper and appropriate conversation according to growth
potential of core business which they are doing in market. They have to make changes by
making plans so that they can expand growth. This strategy is also depending on consumers and
having a high impact on the value propositions for new consumers and managers of ASDA have
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to do sub segment according to their old and new consumers. There are some key elements of
this strategy which ASDA is using includes:
 The company is doing sub-segmenting according to their consumers and these groups is
based on discovered needs, buying patterns or plans along with contribution to profits or
revenue which they are generating.
 They have to create innovative products as well as services and this having an impact on
high value.
 Field testing on propositions according to new value of merchandise. They have to make scale on the basis of their results (Wilden and Gudergan, 2015).
Defensive strategy: This option of strategy can be used by managers in different parts of
business. This strategy helps in defending in market and also assist in attaining success at the
time of high competition. It includes BCG matrix that is Boston consulting group so that they
can increase their market growth rates and it is divided into four categories:
 Stars: This section helps in growing or expanding market and also having market share.
 Cash cows: This includes the stable as well as shrinking market and it also having a high
market share (Digital SWOT analysis: What is it and why you should care?, 2017).
 Question mark: It involves the growing market as well as having a low market share.
 Dogs: It includes stable along with shrinking market and this section also includes low
market share.
It is important for ASDA that they have to protect their business and also helps in protecting
their interests. Along with this company having some weakness and for removing those
appropriate strategies should be used by them (SWOT Analysis, 2017).
TASK 5
Recommendation
Managers of ASDA have to use appropriate strategies and on the basis of that they have
to do direction along with thinking so that implementation can be done. Strategic analysis should
be done in an effective manner by using appropriate methods and tools. According to vision,
mission as well as values have to be made and fulfil needs and wants of consumers. Along with
this appropriate strategy should be used by them so that they can defend their core business. If
ASDA wants to increase probability of success. Manager of employees of ASDA have to
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increase or strengthen their infrastructure and execute as well as implement appropriate strategies
so that they can become successful in increasing their investors and generate more and more
revenue. They have to achieve their requirements and for that they have to eliminate or reduce
departmental as well as regional areas. Along with this they have to utilize their all available
resources and leading indicators as well as performance drivers which assist in aligning their
strategy. They have to provide motivation or encouragement to leaders at all levels so that they
can grow managerial as well as non-managerial.
They have to use appropriate process so that they can identify strategies which having a
high probability for success. They have to grow their core business and also by segmenting their
consumers. Along with this they have to grow their opportunities which will assist in providing
innovative products and services to the consumers which will helps in attaining their goals and
objectives as well as expanding their market share.
CONCLUSION
After summing up assignment, it has been interpreted that they have to use appropriate
strategies and this to be directed and implemented on a proper manner so that any type of
obstacles cannot face by them. Staff members of ASDA have to deliver better products to their
consumers which will assist in boosting performance and productivity among its rivalries in
market. Business entity having their vision and mission statements so that they can offer
merchandise according to demands in marketplace. Staff members and managers of firm have to
use their capabilities and attain targets.
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REFERENCES
Books and journals
Barney, J. B. and Hesterly, W., 2015. Strategic management and competitive advantage concepts
and cases. Pearson.
Bettis, R. A. and et. al., 2016. Creating repeatable cumulative knowledge in strategic
management. Strategic Management Journal. 37(2). pp.257-261.
Buckley, P. J., Burton, F. and Mirza, H. eds., 2016. The strategy and organization of
international business. Springer.
Carraher, S. M. and Paridon, T. J., 2015. Entrepreneurship journal rankings across the discipline.
Journal of Small Business Strategy. 19(2). pp.89-98.
Carroll, C. E., 2015. The handbook of communication and corporate reputation (Vol. 49). John
Wiley & Sons.
Chiarini, A. and Vagnoni, E., 2015. World-class manufacturing by Fiat. Comparison with Toyota
production system from a strategic management, management accounting, operations
management and performance measurement dimension. International Journal of
Production Research. 53(2). pp.590-606.
Demil, B. and et. al., 2015. Introduction to the SEJ special issue on business models: business
models within the domain of strategic entrepreneurship. Strategic Entrepreneurship
Journal. 9(1). pp.1-11.
Dess, G. G., McNamara, G. and Eisner, A. B., 2016. Strategic management: Creating
competitive advantages. McGraw-Hill Education.
Helfat, C. E. and Peteraf, M. A., 2015. Managerial cognitive capabilities and the
microfoundations of dynamic capabilities. Strategic Management Journal. 36(6).
pp.831-850.
Karepova, S. G. and et. al., 2015. New approaches to the development of methodology of
strategic community planning. Mediterranean Journal of Social Sciences. 6(3 S6).
p.357.
Luo, X. and et. al., 2015. Corporate social performance, analyst stock recommendations, and
firm future returns. Strategic Management Journal. 36(1). pp.123-136.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management.
Springer.
Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
Percy, L., Elliott, R. H. and Rosenbaum-Elliott, R., 2016. Strategic advertising management.
Oxford University Press.
Rothaermel, F. T., 2015. Strategic management. New York, NY: McGraw-Hill.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Strumickas, M. and Valanciene, L., 2015. Research of management accounting changes in
Lithuanian business organizations. Engineering Economics. 63(4).
Wilden, R. and Gudergan, S. P., 2015. The impact of dynamic capabilities on operational
marketing and technological capabilities: investigating the role of environmental
turbulence. Journal of the Academy of Marketing Science. 43(2). pp.181-199.
Online
Digital SWOT analysis: What is it and why you should care?. 2017. [Online]. Available through:
<https://boagworld.com/digital-strategy/swot-analysis/>. [Accessed on 14th July 2017].
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SWOT Analysis. 2017. [Online]. Available through: <https://www.pinterest.com/explore/swot-
analysis/>. [Accessed on 14th July 2017].
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