ASDA: Analysis of Problems, Issues, and Recommendations

This report provides a comprehensive analysis of the problems faced by ASDA, a major supermarket chain in the UK. It delves into issues related to reverse logistics, supplier connectivity, and inventory management, highlighting their nature, scope, and impact. The report includes a SWOT analysis, assessing ASDA's strengths, weaknesses, opportunities, and threats, and a PESTEL analysis, examining the macroenvironmental factors affecting the company. Based on these analyses, the report offers recommendations for ASDA's market operations and proposes an action plan for implementation. The report emphasizes the importance of improving reverse logistics, strengthening supplier relationships, and optimizing inventory management to enhance ASDA's competitiveness and sustainability in the international market.

Running Head: ASDA PROBLEM ANALYSIS
ASDA Problem Analysis
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1ASDA PROBLEM ANALYSIS
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Nature, Scope and Impact of Problems Faced by ASDA................................................................2
SWOT Analysis of ASDA (Based on nature, scope and Problems)...............................................6
PESTEL analysis on the Macroenvironment of ASDA..................................................................8
Recommendations for ASDA in their market operation (Based on identified issues)..................11
Action Plan for ASDA (Implementation based on Recommendation).........................................14
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

2ASDA PROBLEM ANALYSIS
Introduction
As compared to the operational aspect that is associated with the respective organization
ASDA, it is considered to be the supermarket chain situated in United Kingdom which comes
under the second largest category of supermarkets in the nation. The market share of ASDA as
per 2014 is where it holds 17.2% overall share in the market of United Kingdom. ASDA was
acquired in the year 1999 where the organization became a completely possessed subsidiary of
Walmart which is termed to be the public limited organization in US. The following report gives
more emphasis on conducting a brief analysis on certain problems and issues faced by the
company in their international operation.
The first part of the study analysis the nature, scope and impact of problems faced by
ASDA in the market. The other part of the consist of a clear understanding about the SWOT and
PESTEL analysis of the company. In order to make the report more effective and
understandable, there are certain recommendations and implementation strategies along with an
Action plan prepared to adopt some innovative factors which can be adopted by the company in
order to adapt some progressive action in the future to remain more competitive and sustainable
in their international market competition on all aspects.
Discussion
Nature, Scope and Impact of Problems Faced by ASDA
According to the functional aspects that are associated with the respective organization
ASDA in the market of United Kingdom, some of the major problems and consequences faced
by the company are generally categorized under three major heads. The problems related to the

3ASDA PROBLEM ANALYSIS
operational part of the company generally involves the system of Reversed Logistics, Supplier
Connectivity and Inventory management. There some of the major initiative required to be
adopted by the company to overcome the particular issue in order to remain more sustainable in
the part of building their reputation and Stability in the market of United Kingdom under all
aspects. Some of the major factors and regulatory measures required to adopted by the company
on the respective issues are mentioned below.
Issue of Reverse Logistics (ASDA)
As compared to the supermarket chain ASDA in the market, the system of reverse
logistics is considered to be the major part of operation which the company ASDA is facing in
the market of UK form few years (Singh, Shukla & Mishra, 2018). According to the market
operation of ASDA, they basically deal with wide variety of products which are termed to be the
consumable products in the market and several moderate guidelines associated with the product
generally facilitate consumers in the part of returning the defective product back to manufactures
or suppliers under all terms. Products which comes under the category of electrical appliances
are termed to be the bigger portion reverse for the company ASDA.
For the purpose of dealing with such products which are returned from the side of
consumers for repair or exchange, it is important for implementing and adopting a complex
procedure for ASDA on the system of reverse logistics (Tidy, Wang & Hall, 2016). Developing
strong contact with manufacturers and suppliers of returned products generally consume
demands for most of the time and the management. Several failures caused for the side of reverse
products has negatively impacted the organization ASDA regularly every year. It has also
affected the efficiency factor of the company on the part of delivery of repaired or exchanged
products to consumer on all aspects. It is understandable that the function of processing and

4ASDA PROBLEM ANALYSIS
maintaining reverse logistic is considered to be one of the core operational issue for the
organization ASDA.
Why Action Required on Reverse Logistics (ASDA)
ASDA on all aspects is considered to be one of the famous and giant supermarket chains
in United Kingdom in the part of maintaining strong and adaptive reputation among the
consumers both on the system of retail operation and online business process (Fisher, 2018). A
strong reputation required to be implemented from the side of ASDA on reverse logistics is
important for them in the part of developing strong reverse logistics initiatives in order to
develop better service standards for consumers in the market. It is important for them in the part
of engaging the existing customers in order to attract more customers in the market. An effective
mode of maintaining reverse logistics function can help them in the part of improving better
customer relationship and satisfaction in the market.
Issues of Supplier Connectivity (ASDA)
Second major part of issue faced by the supermarket chain ASDA in the market of United
Kingdom is associated with the function of adopting ineffective mode of connectivity with
products associated with the suppliers in the market. ASDA being an effective and competitive
supermarket chain in the market of United Kingdom, they generally deal with huge suppliers in
the part of ensuring better delivery of their product both in the external and internal market
operations (Mylan et al., 2016). Under this respective process the market of ASDA had a huge
failure in the part of maintaining and developing strong relation and communication with the
suppliers in the market.
This has completely hindered their delivery function associated with the consumer
products in retails and storehouses which completely affected their reputation in the mind of

5ASDA PROBLEM ANALYSIS
consumers on all aspects. Some of the major factors related to the respective brand such as
failure in following the Grocery Code of Conduct along with delayed payment system has made
ASDA ranked among the worst supermarket chain in the part of adopting better connection with
the suppliers in the market.
Why connectivity of suppliers needs improvement (ASDA)
Suppliers in the market generally constitute integral part associated with the company’s
operation. Better and adoptive mode of maintaining better relationship with the suppliers can
help the company in the part of increasing strong productivity and sustainability in the market
(Fatricia, 2016). Being a Supermarket chain, it is important for them to maintain innovative
mode of product delivery and service to consumers in the market. The process of maintain
adaptive mode of supplier connectivity is mandatory segment for ASDA to maintain better
sustainability and competitive advantage to enhance better performance in corporate retail.
Issues of Inventory management (ASDA)
As compared to the market performance associated with the company ASDA, they have
been engaged in the part of expanding their business operation from many years and this
respective part on all aspects has become one of the major complicated operational issue for the
company ASDA (Fatricia, 2016) in the part of managing distribution and inventory for fulfilling
demand associated with retail stores. It has regularly become a complex part for ASDA in storing
the food products which are susceptible to expiry in the inventories.
Why there in need for Inventory management (ASDA)
The wastage of foods products related to the storehouses can cost million of pounds to
company during every year. Several mismanagements caused within the inventory can hamper
the regular operation associated with the retail stores in the market. It can affect the sustainability

6ASDA PROBLEM ANALYSIS
of the brand along with the trust factor of the consumer on all aspects. It is important for ASDA
to maintain adaptive mode of inventory management function in order to establish strong and
effective operation in the international supermarket chain.
SWOT Analysis of ASDA (Based on nature, scope and Problems)
Some of the major factors that are associated with Strength, weakness, opportunity and
Threat factor of ASDA are mentioned below:
Strength
 ASDA in the market operational function
associated with the company generally has a
strong and innovative mode of service and
product offering including better financial
services.
 ASDA is generally known for their adaptive
marketing campaigns demonstrating better
mode of customer delight and services in the
market.
 In the part of maintaining better relationship
with suppliers and customers, they have
developed innovative mode of connectivity
through the online service provided by them.
 Strong backing from the side of Walmart
which is known to be their parent company
can be easily utilized to increased penetration
Weakness
 Compared to other major competitors in the
international market operation, the presence of
ASDA is not effective in the global market in
order to enhance strong competitive operation
in the market.
 The ability associated with them in the place of
selling prices restricted their entrance in few
countries, as the countries generally fear
adopting competition with local sellers.
 Supplier connectivity of the company enhanced
a weak part compared to other major
competitors in the international market.
 Their delayed payment system in the supplier
part has made them one among the worst
supermarket chain in the part of maintaining
adaptive relationship with the suppliers on all

7ASDA PROBLEM ANALYSIS
and business in the international market. terms.
Opportunity
 Maintaining better mode of relationship with
the suppliers can enhance them to remain
more sustainable and competitive in the
market (Filimonau & Gherbin, 2017). This
can help them to adopt innovative mode of
product delivery function along with
enabling effective mode of product delivery
system in the market.
 Adopting better mode of expansion under
various segments such as opticians,
pharmacies, photos and jewelry can make
help them to gain strong competitive
advantage in the market compared to their
competitors.
 Advancement in the function of reverse
logistic can enable them in the part of
building brand reputation and customer trust
factor in the both external and internal
market operation of United Kingdom on all
aspects.
 Adopting strong venture with other growing
Threats
 The first and foremost part of threat is related to
the factor of price war with many other brands
which are associated with retail chains.
 Delayed payment system is considered to be
one of the core parts of threat pertaining within
the internal environment of the organization.
 Issues associated with the system of reverse
logistic factor has decreased their demand and
consumer trust in the market.
 One of the major parts of threat is associated
with changing policies of numerous central
governments.
 Breaking certain guidelines which are
associated with Grocery Code of Conduct is
regarded as the key part of threat for ASDA in
their market operation under all aspects.

8ASDA PROBLEM ANALYSIS
markets such as India and China are a better
growth platform for ASDA in the future.
 Making Acquisition with other small
companies can make them more innovative
and advanced in their future operation.
PESTEL analysis on the Macroenvironment of ASDA
PESTEL analysis is considered to be the important framework used for strategic planning in
business. It is prepared for the purpose of analyzing and evaluating certain macroenvironmental
factors which generally affect the business under all aspects. Some of the major factors that are
based on the system of Political, Economic, Social, Technological, Environmental and legal
measure related to the organization ASDA are mentioned below.
Political
As compared to the market operational measures that
are associated with ASDA, European Union under all
aspects have demonstrated a better chance for ASDA
in the part of expanding their business operation in
European markets as per most of their barriers related
to trade have being removed.
On the other hand it is understandable that the
admission of Chinese to WTO (World Trade
Organization) have offered better and innovative
opportunity for ASDA in the part of expanding their
business operation in Chinese markets which have

9ASDA PROBLEM ANALYSIS
created a better and easier method for ASDA under
the area of importing their products for the purpose of
sale from china.
Economical
As compared to the economic factors, this generally
paly a major role under the area of failure or success
of ASDA on all terms. The economy of UK was
facing certain discrepancies due to recession under
which many people were jobless and there was huge
fall in the level of spending associated with the nation
(Mussa & Zhi Zhang, 2016).
This respective issue faced in the market of United
Kingdom was considered to be a better opportunity
for ASDA in the part of increasing their overall
revenue in the market. Customers who generally
performed expensive mode of shopping from other
retail outlets such as Marks and Spencer had no
option where they had to purchase cheap products
which was sold by ASDA in the market. This helped
the organization in the part of increasing their value
of market share at higher rate.
As the customers associated with the market become
more knowledgeable, under this respective aspect the
demand for organic food generally increased

10ASDA PROBLEM ANALYSIS
Social
implying where it was important for ASDA to ensure
that they had strong supply power of organic food
products for the purpose of meeting the need
associated with the customer, those who were much
keen on food products which were organic based.
Technological
In order to remain more competitive and sustainable
in the market operation compared to other
competitive markets, it is important for the
supermarket chain ASDA to ensure that they have
innovative and advanced mode of technology such as
electronic based marketing and online retaining
system.
Environmental
In order to adopt a positive impact on certain
environmental measures associated with the
respective organization in the market, they have
adopted a better friendly approach related to
environment under which they generally use
recyclable materials for the purpose of packaging and
on manty other major situations.
Legal Compared to the market operation associated with the
company ASDA, as they basically adopt advanced
operation in the market of United Kingdom, it is
important for them to ensure that, they clearly adhere

11ASDA PROBLEM ANALYSIS
to certain terms and conditions introduced by UK
government for the purpose of ensuring and
preventing unnecessary fines which are being
imposed on all aspects.
Recommendations for ASDA in their market operation (Based on identified
issues)
 It is important for them to adopt key initiatives in the part of developing certain
operational measures that are associated with the system of reverse logistic for the side of
customers in order to build advanced and innovative marketing standards along with the
process of building and developing the trust factor associated with the customers towards
the respective brand.
 In order to build strong mode of delivery standards in the market, they should try to adopt
and maintain better mode of communication system with the suppliers. This can help the
organization in the part of maintaining better and adaptive delivery standards compared
to their competitors
 The must try to adopt and implement key initiatives in the part of developing the system
of inventory management operation associated with the organization. This can enhance
them to prevent any mode of mismanagement caused in the inventory management
system of the company which may lead to gain adaptive sustainability and competitive
advantage in the market.
 As the company in the market of United Kingdom, under the current times have been
regularly facing certain debt issues which can lead them to the stage of bankruptcy under