A Business Analysis of ASDA: Identifying Key Issues and Solutions

This report provides a comprehensive business analysis of ASDA, a leading UK retailer. It begins with an overview of ASDA, its market position, and operational structure. The report then summarizes the key issues the company faces, including intense competition from other supermarket chains like Tesco and Sainsbury's, changing consumer preferences towards healthier food options, and the impact of unemployment on hiring practices. The analysis delves into crucial areas of importance to ASDA, such as competitor analysis, target consumers, market trends, and external environmental factors. The report identifies and ranks the top three challenges: high competition levels, shifts in consumer preferences, and the unemployment rate. The conclusion emphasizes the importance of strategic planning and decision-making to overcome these issues and maintain a competitive edge in the retail sector. The report references relevant academic sources to support its findings and recommendations.

BUSINESS CONSLUTING

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
Client overview and summarize issue that they are facing..........................................................2
Analyze areas of importance to consumer...................................................................................3
Top three issues that client is facing............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business consulting is the procedure in which professional who analyses businesses,
develop solutions to issues and aids companies create effective plans for meeting their set
objectives and aims. With the help of taking guidance from business consultant companies can
overcome several challenges facing since for so long.
The current report is based on ASDA, is leading in UK retail sector. This study explains
company overview and summarizes issues that they are facing & affect business operational
effectiveness. It break issue down by presenting as well as critically analyzing areas of
importance to client such as market, competitors, target clients and influencing factors from
external environment. Furthermore, it study justified top three problems that client or company is
facing.
TASK
Client overview and summarize issue that they are facing
ASDA is one of the most popular and famous retailer in UK, it is also known as third
biggest supermarket chain and 2nd highest amongst competitors list of TESCO. It has a 15.7
percent market share and wholly owned subsidiary of Walmart. This company is considered as
client in this study which is known to expand its business year on year in number of outlets.
They own more than 604 stores but a majority of those outlets are supermarkets. It has certain of
the biggest hypermarkets in United Kingdom making it destination or place of choice for many
buyers seeking to buy quality products. It had a great plan of having more supermarkets but due
to several issues it impact negatively. A major flaw in company’s business plan is it has half
number of outlets as compared to Sainsbury and TESCO but has a effective revenue generation
methodology with their sales price. ASDA stands for associated dairies, it was founded in 1949.
It is one of Britain leading retailer with dedicated workers serve consumers from their network of
outlets & online services, including superstores, living stores, supercentres, depots across the
nation and petrol filling stations. In consider that more than 18 million individual shops with
company every week and 98% of local people in UK are served by their online site.

Run and sustain business for longer with positive outcomes is quite difficult for every
company as they face many issues that directly affect sales. In context of ASDA, organization
faces several problems that impact on productivity and profit margin of its business. Intense
competition among existing companies working within same market in which ASDA work since
for so long (Corbet and McMullan, 2018). Traditional supermarket chains in United Kingdom
are also facing same problem from specially grocery retailer and chains eating into their marker
share on higher end while discounts supermarket chains dig in on lower end.
Along with above issue organization faces another problem that also affects its overall
business practice as well as performance negatively. Consumer is key elements of success and
growth of business as they contribute in increasing sales by purchasing specific products from
supermarkets. But in recent time the presences and needs of people get changed according to
trend. Most individual prefer to eat healthy items instead of junk food because it make them fit
and healthy for every. These types of changes among customer’s preferences create issue for
ASDA Company to serve their goods and keep arrangement accordingly which is quite difficult
to do. It requires more efforts and extra workforce who are able to support in this situation.
Unemployment is another issue facing by ASDA that impact on its employment structure
and hiring procedure.
Analyze areas of importance to consumer
In above analysis, issues faced by ASDA company has been discussed that affect in
negative manner. Here, problems are break down by critically analyzing and presenting areas of
necessities to company such as:
Competitors-
In context of business, a organization in same retail sector which offers similar goods or
services to consumer (Gijsenberg and Nijs, 2019). Presence of one or more business rivals can
reduce prices of ASDA products as firms attempt to obtain a wide market share. This area makes
importance to company because competitors are able to impact on sales and production function
negatively. TESCO, Morrison’s, Sainsbury, Waitrose & partners and M&S are included in list of
ASDA competitors. All these competitors are capable to give tough competition to company by

offering quality goods to target consumer. It contributes to create intense competition within
retail industry that impact on ASDA business performance.
Target consumers-
Without targeting customers success and progress of business is not possible, it is one of
the most essential operational area conducted by skilled applicants working in ASDA (Nijssen,
2017). Selecting a target market or customers is really very essential because it allow
management to direct their resources to those audiences with high potential for sales growth,
interest in goods & loyalty to brand. But one the other hand it is quite difficult to target clients
for every product sell by ASDA and especially produce. It requires more efforts and time to
choose the right individual with right products.
Market-
The success and growth of ASDA business is depend on market, it consider as important
area in context of firm. This mean changes in market trends that impact on demand for
company’s products and accessibility as well as willingness of people to purchase. Healthy
lifestyle play vital role in life of people, they drive taking one step ahead towards healthy diet
that is quiet beneficial in every term. Without considering current market trends company was
unable to sustain within retail sector. As it directly affect productivity, profit margin and market
share to organization more than its competitors.
Influencing factors from external environment-
There are several external environmental factors available that impact on company and
considered as the most important are for them to focus on it in order to sustain within retail
sector for long period of time. Changing in taxation policies and increasing taxes is included
political factor that affect as always negatively because due to it ASDA had to pay extra tax for
each of their business activities conducted across boundaries. It is a part of conservative alcohol
policy governed by the government of UK. It put impact on pricing structure of drinking
products stored in supermarket for consumers who need it.
Top three issues that client is facing
High competition level-

From above analysis, it has been analyzed that is ASDA facing different problems which
impact its business performance and production activities. As it put high pressure on
management to make necessary changes that help company to gain competitive advantages
(Gordon, 2017). All its competitors mentioned above attempt to become a market leader with
skilled workforce who are capable to contribute in this act. This problem is ranked at the top
because it affects the most and may be lead to decrease business sales that is not suitable &
appropriate for company growth. Due to intense competition within current market place ASDA
feel more pressure from side of their competitors as their activities force company to make such
modifications that is really very important for them. Firm can lose their customers to its main
competitors as people choose to shop in outlets nearest to them.
Changes in consumers preferences-
This problem is ranked at second level because competitors impact on ASDA highly
more consumers. Firm could face customer backlash as it enforces decrease prices and offer
quality products according to needs that is beneficial for business in term of retaining target
market for longer (Dubois and et.al., 2018). Changing trends influence people buying and
purchasing behavior as they choose products especially eating items that affect health and
increase fat in human body. As customers become more informed and aware there is an increase
demand for organic food items implying that firm have to assure that is has all items in their
offering in order to meet demand of potential who are keep on organic goods.
Unemployment rate-
This issue is ranked at third position because it does not affect much to ASDA
employment related activities but still consider as essential problem facing by firm while
operating their business in UK. Most people in country are unable to get job after Brexit as it
increase unemployment rate (Momani, 2017). Government put pressure on organization to hire
more applicants or local people that improve living standard of individual better than before.
Firm feel pressure to recruit people who are unable to contribute in achieving set aims &
objectives of business that decrease productivity and sales.

CONCLUSION
From above analysis, it has been summarized that ASDA facing top three problems while
running business and conducting their practices in retail sector. By taking right action and
considering all the factors company can overcome above issues which is quite beneficial in term
of gaining competitive advantages, increasing consumers base and profitability rather than its
competitors. Furthermore, it has been concluded that target customers, market, competitors and
political factors are most essential area considered by company to gain benefits such to become
market leader. All the three issues ranked as top three problems facing by ASDA which has been
overcome by effective planning and strategic decision.

REFERENCES
Book and Journals
Corbet, S. and McMullan, C., 2018. Stock market reaction to irregular supermarket chain
behaviour: An investigation in the retail sectors of Ireland and the United
Kingdom. Journal of Retailing and Consumer Services. 43. pp.20-29.
Dubois, P and et.al., 2018. The effects of banning advertising in junk food markets. The Review
of Economic Studies. 85(1). pp.396-436.
Gijsenberg, M.J. and Nijs, V.R., 2019. Advertising spending patterns and competitor
impact. International Journal of Research in Marketing. 36(2). pp.232-250.
Gordon, A., 2017. Food safety–based strategies for addressing trade and market access issues.
In Food Safety and Quality Systems in Developing Countries, Volume 2 (pp. 21-46).
Academic Press.
Momani, B., 2017. Entrepreneurship: An Engine for Job Creation and Inclusive Growth in the
Arab World.
Nijssen, E.J., 2017. Entrepreneurial marketing: an effectual approach. Taylor & Francis.