Comparative Analysis: Impact of Change on ASDA and ALDI Strategies

This report provides a comparative analysis of the impact of change on the business strategies and operations of ASDA and ALDI, two major players in the retail industry. It examines how both companies are adapting to external factors such as online shopping, market competition, and changing co...Read More

UNDERSTANDING AND LEADING CHANGE
Leading change is a formation of continuous growth and
development by considering essential change in organisation and
business structure. This report compare the impact of changes on
business's strategy and operation with in two organisations. There
are supermarket organisations as Asda and Aldi taken to address
the requirement of this poster.
ASDA a British supermarket retailer having its
headquarters in Leeds, West Yorkshrine. It is currently the
third largest supermarket chain in the world. The dual brand
strategy of ASDA and Sainsbury will create the UK's
biggest supermarket group. The reason behind this merger
is that the merger will result in more competitive and
resilient. The impact of this merger will that the combined
business of Sainsbury and ASDA will contribute more to
the UK economy. Also synergies of £500m will be created
and the merger will help in attracting more customers. The
merger will provide unique and huge opportunities within
the retail sector.
ASDA restructured its management structure by cutting
jobs up to 2600 and employing 5670 new roles on a lower
pay scale. This affected 4100 managers. This restructuring
was done on the basis of who wants to leave the company
and who do not meet the selection criteria. The reason for
cutting the jobs is that people are shifting towards online
shopping and to manage the complicate e-commerce
business it has cut the jobs and selected new employees for
e-commerce business. The impact of change is that it has
reduced the overall costs. This has resulted in savings of
million pound. ASDA has been making strategies for
improving its brand. The core element that it has inculcated
in its strategy is make efforts towards in-store, online
grocery deals and its private brand. For this it has made
investments to improve the customer experience by
reducing the prices of everyday items.
INTRODUCTION
ORGANISATION'S STRATEGIES
The success stories of business contains high latitude of adopting
changes, new dimensions, strategies and plans. Most of the
developed and successful business organisations analyse the
changing business environment and introduced new dimensions of
change with in and outside the organisation. Changing business
trends affect organisation internally and externally.
It is important to consider all the essential changes that are
required for effective collaboration and execution process. Change
in business context is recognised as a process of change subject to
vary the organisation's structure, transformation of strategies and
policies, balances, plans.
IMPACT OF CHANGE ON ASDA IMPACT OF CHANGE ON ALDI
ALDI is a food retailer but it also deals in non-food items. It has its
headquarter in Germany and many of its shops are located in the
parts of European Union. ALDI has a plan of creating jobs and
aiming at opening 1000 stores by 2022. It will undergo an
expansion which for which it will infused an amount of £600m.
This expansion will increase its operational efficiency so that it can
go beyond the limits to meet customer expectations. It will result in
creating more jobs for young people in domestic market.
ALDI is giving strong competition to the Sainsbury-
ASDA' s low pricing everyday strategy. It has applied this strategy
with a combined promotional pricing with strong shelf pricing for
basic items such as flour, sugar, milk etc. This has increased the
number of customers. It keeps changing in its product mix in order
to retain its market share by producing variety of its products. It has
full-scale production department that is making 100 items. This
change in the product mix has resulted in fulfilling the diverse
needs of the customers. It will keep this working on the product
mix to provide the best quality products to sustain in the market.
ALDI has implemented a changed strategy concept which
has been made according to the high efficiency of operation and
management. For achieving this, ALDI has products with simple
design and decoration. This strategy minimized the costs of the
overall operations. With the increase in online shopping, it is
planning to expand its business online. The benefits of going online
which it got are the economic costs have reduced because search,
order, transportation, tracking and verification have become easier.

UNDERSTANDING AND LEADING CHANGE
COMPARISON AND SWOT ANALYSIS
Comparison of impact of change between ASDA and ALDI
Basis ASDA ALDI
Policy The company has changed its
structure from offline to online.
This has resulted negatively as
2600 jobs were cut.
It is aiming to create jobs in the coming
years for its expansion plan. The expansion
plan will create more jobs for young
people.
The company became third-
largest supermarket retailer after
the merger with Sainsbury. It
was second largest supermarket
chain but Tesco and Sainsbury
superseded it.
It became fifth largest retailer without any
merger. It was tenth largest earlier but
effectibe implementation of the policies
made it fifth largest supermarket in UK.
SWOT analysis of ASDA
Strength
 New strategies and senior business
management
 It is recorded that top down will help
in adjusting the economic changes
 Bottom up will lead the capability for
sustainable change. Best international leadership in UK,
China and Canada.
Weakness
 Lack of small and mini stores like
other organisations.
 ASDA has less credible image in
terms of quality products
 Leadership of organisation takes too
much time to process the factors in
viable manner.
Opportunities
 There is an opportunity to expand in
global or international market
 Opportunity to enter in online market
worth £600 to open 17 new
supermarkets. Opportunities to analyse the
comprehensive change to attain
organisational goal and objectives.
Threats
 Threat of competitive organisations as
Aldi, Tesco.
 Thereat of having low price cut due to
price cut in competitive organisations.
 Impact can affect the mind set and
behaviour of employees for working
effectively
 threat of dealing with casual factors
and analysis.
Employees have to go through various psychological phases subject to implementing the changes
with in the organisation. It will impact the confident ability of employees and the changes made in
organisational context. The phases are as follows;
Unfreezing: This phase is mainly related to initial stage subject to accepting the change which are
developed in organisation.
Changing: This phase will impact the changes in organisation subject to various sections.
Refreezing: In this stage the changes will be recorded as stable for long term continuity.
EXTERNAL FACTORS WHICH AFFECT LEADERSHIP, INDIVIDUAL
AND TEAM
External factors are outside factors of business that impact business of an organisation. Different
external factors effect potential of a business to accomplish its objectives and targets. These
involves political, economic, social, technological, environmental and legal factors. External
forces which affect leadership , individual and team are been discussed below:
Leadership Team Individual
With effect of external
factors on environment of
business managers and
leaders must change their
styles of leadership
according to the condition of
an organisation. Various
styles of leadership can be
adopted by them such as
autocratic, democratic and
many more to encourage and
direct workforce of a
company in an effective
manner.
To adopt changes in a
dynamic environment of a
company, managers are
required to make people
work in a team. But
collaborating with each other
can create different problems
since workforce are from
different backgrounds and
they have their own
perception or way of doing
tasks which lead to conflicts.
When changes are
implemented they affect
employees on individual
basis. Employees have
various characteristics and
skills so in case of
implementation of new
technology within a
workplace, they will insecure
on their part of job role.
CONCLUSION
As per the above report it is summarises that change is one of the important phase that impact
on organisation's strategy for better control and operation. With critical analysis of change the
internal and external driver of change illustrated and analysed that it affect the organisation;s
leadership, team and behaviours of others in both the organisations.
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