Strategic Analysis of ASDA: Evaluating Internal Business Capabilities

This presentation provides a comprehensive analysis of ASDA's business strategy, focusing on its internal capabilities. It employs several strategic tools, including SWOT analysis to identify strengths, weaknesses, opportunities, and threats, VRIO theory to evaluate resources for competitive advantage, and the McKinsey 7s model to assess organizational effectiveness. The analysis covers key aspects such as ASDA's wide range of products, delivery services, limited global presence, and potential for expansion. The presentation concludes by emphasizing the importance of understanding internal capabilities for strategic decision-making and achieving a competitive edge in the market. Desklib provides access to this and other solved assignments for students.

Business Strategy

INTRODUCTION
• Business strategy is merger of every decision taken in an organization and
activity perform by a business to achieve their goals or objective and
secure a position in competitive market. In simple words business strategy
is direct set of actions, plans and goals which highlights that how an
organization will compete in a market with the number of services and
products.
• There are three levels in business strategy they are corporate level,
business level and functional level. Corporate level strategy is developed
by top management whereas business level strategy is formulated by
managers (general manager) and functional level strategy is formulated by
supervisor or first line managers.

Organization’s internal environment and capabilities-
• The internal environment analysis of the organization is much important
for the companies to know as this will help them in making improvements
if required in the products and services of the
SWOT Analysis-
• SWOT analysis is the tool or the method which is used by the businesses
to identify as well as to analyse the internal strengths, weaknesses,
external opportunities as well as the threats of the company.
• These helps in shaping the present as well as the future operations of the
company and develops the strategic goals.

Strengths:
• Wide range of products
• Delivery and parcel services
• Good connection
• Awards
Weaknesses:
• Limited global presence
• Dairy price fixing
• Restricted entry of business

Opportunities:
• Expansion to new regions
• Acquiring of small organisation
• Operating at online platforms
Threats:
• Price with other retailers
• Changing policies of government
• Other online retailers

VRIO theory
• This is the analytical technique
which is used for the evaluation of
the resources of the organization as
well as the competitive advantage.
• This model mainly focuses on the
internal capabilities for influencing
the competitive advantage.
• The main purpose of this model is
to focus on the positive factors
which will provide the competitive
edge to the company.

Value
• This states the value of the resources and how these can be acquired in the
market. Asda company using this framework will help to evaluate the
resources value.

Rareness
• The rareness of the resource makes it more expensive. Asda company
using this dimension will help them to evaluate the rareness of their
resources.
• The rareness of the resource makes it more expensive.
Asda company using this dimension will help them to
evaluate the rareness of their resources.

Imitability
• This shows the difficulty for imitating the resource.

Organization
• The shows how the organization can use this resource effectively for
achieving the positive outcomes.

Mackenzie 7s
• The McKinsey 7s model is the tool which is
used by the organization to access the future
success of the company. Asda company can
use this model as this will them in evaluating
the success of the company.
• The soft elements of this are such as
• Shared values: These are the norms and the
standards which are followed within the
company. The Asda company must ensure
about using this framework.

Shared values
• These are the norms and the standards which are followed within the
company.
• The Asda company must ensure about using this framework.

Skills
• These are the skills which the company has the talented and the skilled
employees.
• Asda company has much talented and the skilled employees.

Style
• The leadership style of the leaders which will help them in influencing the
productivity level as well as performance.
• Asda company has effective leaders which influences the performance.

Staff
• This is the human resource of the company as it deals with how they are
motivated and trained.
• Asda company motivates the employees regularly.

Strategy
• This is the plan which is developed by the organization to lead in the
market by having the competitive edge.
• Asda company is planning good strategies which helps them to stay
ahead.

Structure
• The organization is made of the chain of command which helps in the
transferring the instructions from the superiors to the subordinates.

Systems
• The daily procedures as well as the workflow which helps in making the
decisions of the organization.
• Asda company using this strategy will hep them in remaining competitive
in the market.

CONCLUSION
• This presentation has discussed internal capabilities of the
organisation by using the models such as the swot analysis, VRIO
theory as well as the Mackenzie 7s model to analyse the internal
capabilities of the company.

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• Guangul, F.M. and Chala, G.T., 2019, January. Solar energy as renewable
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