Strategic Management in Global Context: ASDA's India Market Analysis

This report provides a comprehensive analysis of ASDA's strategic management approach as it plans to enter the Indian market. It includes internal and external analyses using SWOT and PESTLE models to identify opportunities and threats, explores various market entry modes such as mergers, ...Read More

Strategic Management in
Global context

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Internal and external analysis to understand and explain possible opportunities as well as
threats related with the market of country...................................................................................3
Modes of the market entry..........................................................................................................6
To what extent selected business units are adopted by the country............................................8
Implement of Porter's generic strategy for formulation of competitive-edge.............................9
Strategic Business plan and methods to measure its success for improving company
operations and functions in future.............................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The term strategic management is explained as a process of managing and organising
organisational resources for accomplish of it's goals and objectives. Strategic management
engage or involve different steps such as to select and decide company goals, analyse of industry
competitive environment, evaluation of company strategies and to induce management strategies
in all departments of business. The selected organisation for this report is ASDA which is a well-
known retail organisation and it perform their business among all over the geographical areas of
Europe (Abdulmuslimov and et, al., 2021). In the present scenario, organisation is planning to
enter in the market of Asia especially, in market of India and for this management form various
strategies that aids to understand about the market and business environment of country.
Moreover, this report highlights on internal and external analysis model which are conducted by
organisation to identify threats and opportunities related with business. Modes to enter in the
market and also Porter's generic strategy will also included in this report for formulation of
competitive-edge in market.
MAIN BODY
Internal and external analysis to understand and explain possible opportunities as well as threats
related with the market of country
With understand of the surroundings or environment in which an organisation perform
their business operations and functions this is easy for management to formulate the effective
and appropriate plans. This also aids the management or organisation to generate policies,
strategies and programme through which threats related with business is minimised by
conducting internal and external analysis of company (Al-Zoubi, 2021). SWOT and PESTLE
model are induced by the management which aids the respective organisation for enhance their
market size through develop strategy according to internal and external perspective.
INTERNAL ANALYSIS
SWOT is identified as one of the most effective model and this is utilised by the
organisation for perform their work in an organised manner because it is simple to induce and
also powerful to develop appropriate strategy especially, by understand the internal environment.
SWOT model of ASDA is mention as follow:

Strength
 Wide range of product offering is one
of the effective strength related with
business.
 Amazing marketing campaigns and
customer delight also work as an
effective strength for ASDA.
Weakness
 Limited global presence as compare to
other organisation is one of the major
weakness related with business.
 The ability to sell prices restrict ASDA
entry in different country and this
results that business face problems to
enter in new country and market.
Opportunities
 To expand their business in developing
countries and also enhance in product
portfolio items for increase their size.
 With acquisition of small companies
organisation is able to grow in new
market.
Threats
 Price war with the local buyers and
business is identified as a major threat
related with retail business.
 Change in company policy due to
government rules and industry work
methods management face different
threat related with business
environment
PESTLE ANALYSIS

In this section, detailed PESTLE analysis of ASDA is mention and this is also identified
as one of the crucial framework related with strategic planning. Moreover, strategic planners
analyse the macro-environment through implement the PESTLE model. In context of ASDA,
PESTLE model is mention as follow:
 Political Factor- National as well as international regulations are concerned under the
political aspects of PESTLE (Alam, Masroor and Nabi, 2020). With analyse of the
political factor ASDA enter in a new market as this helps to understand the local tax
policy, consumer rights, etc. So with constant monitoring of political factor ASDA
management develop plans specifically, for identify right time to enter in company
market.
 Economical Factor- ASDA management consider economic factors to analyse pay level,
cost of credit, labour supply and demand, etc. With understand of all this economic
factors, authorities generate areas that leads to formulate pricing strategies according to
decided environment. In context of the developing country competitive-pricing strategy is
used by management in order to compete with local-rivals.
 Social Factor- Change within the social factors such as ageing population, healthy
lifestyle, celebrity following, etc. are concerned and relates with society factors. With
understand of social factor ASDA manager reduce all those products that impacts on the
social conditions of business.
 Technology Factor- Within this perspective of PESTLE technology is discussed as this
is one of the constant growing, superfast technical services that relates with overall prices
of business (Alvarez-Figueroa, 2021). Along with this ASDA utilise technology factor
for enter in new developing country because it helps to manage all operations and
functions in decided time-period.
 Environmental Factor- Pollution, Green-economy, carbon footprint and many more are
considered as important environmental factor and also they are important for ASDA to
understand because it helps management for manage their food sections. In addition to
the developing country, ASDA understand environment factor for develop its image as an
environmental friendly organisation in the market.
 Legal Factor- ASDA operations and functions are abide due to the rules and regulations
of country in which they perform their business. This results any unethical or abide of

law create punitive action against business. With understand and analyse of legal factor
management considered towards formulation of policy that make fair decisions for both
country and organisation.
According to the above internal and external analysis this is identified that retail market within
developing country is too dynamic. Also with change in geographical locations management
experience huge changes within business such as small size operator generate challenges as they
hold small size of market. Along with this due to high competition this is complex for retail
organisation to earn sufficient amount of profits (Barney, 2020). So ASDA management increase
their business size through inducing technology factor because it aids to make decisions in
minimum time-period as important information is exchanged easily between the departments of
organisation.
Modes of the market entry
Within this section global market entry modes that are suitable for an organisation will be
explored that are different as compare to the traditional-expansion entry mode. Importing and
international expansion is accomplished with help of exporting, licensing agreements, strategic
alliances, etc. as they aids business to owned and control subsidiaries in new market. Some
methods to enter in global market are mention as follow:
MERGER OR TAKEOVER
International retailing industry is identified as one of the biggest phenomenon and there
are various theories exists which are used by International retailers to enter in the new market.
Merger or takeover is identified as one of the most effective model and with this method large
organisation such as ASDA or any other purchase a small local organisation in the foreign
market of the country (Buccieri, Javalgi and Jancenelle, 2021). With this model an organisation
is able to control the existing business by buying business as now rights are transferred to the
other company that includes operational processes and control to place, exchange of technology
within a short period of time. Companies invest a large amount of capital so this is important for
ASDA or any other organisation to select right and appropriate model for business. Objectives
and Goals of the business perform an important role for business and this the management to
select those models that are actaully effective for the retail organisation and match with
requirements of business. Some of the advantage and disadvantage of Merger or Takeover is
mention as follow:

Advantage
 With induce of merger model an organisation is able to perform their business among the
foreign market by getting an instant access of local market. This work as a merit for
business because it helps to cover large market in small time-period.
Disadvantage
 Organisation require high level of knowledge to implement the merger or takeover model
and also this model is possible to implement only when an organisation has clear and
transparent goals and objectives related with business (Czinkota, Khan and Knight,
2021). Due to this it is complex for business to establish their footprint in new market.
JOINT VENTURE
The market of retail industry is developed and it is because they offer all those products
which is required by individuals on constant basis or for daily activities. Retail industry deals in
more products as they have large portfolio and they are offer for satisfy needs and wants of large
section of customers. Moreover, with induce of joint venture methods an organisation is able to
control the overall work in an appropriate manner because it helps to complete the work in an
organised manner through by managing all task in a favourable manner. Foreign brands perform
an important role and this varies on different basis that relates with local companies so with
adoption of joint venture model this is easy for management to expand their business at an
international level (Evers and Andersson, 2021). Moreover, long term success of the retail
organisation relates with different factors that are specific and aids management to recognise as
foreign brand.
Advantage
 One of the major advantage related with joint venture is that this aids an organisation for
perform their all operations and functions through engage more resources with in the
business.
Disadvantage
 Major drawback which is related with joint venture is that the probability of successful
joint venture is too low and this is because the product portfolio and policy of both
companies is different from each other.
WHOLLY OWNED SUBSIDIARY

Another way to enter in the market at global level is to induce strategy that aids
management as a wholly owned subsidiary within the organisation. Moreover, this is mostly
similar with the foreign direct investment but instead of offering or investing money in an
another organisation, management considered WOS as a most effective method because this aids
owners to control and run whole business in an easy manner by transferring rights in their favour
(Hoffman, Watson and Kher, 2020). Moreover, the process of establishing new and wholly
owned subsidiary aids management to complete all work with undertake the maximum control of
business. This define that firm acquire knowledge and also expertise within existing market
through performing all operations and functions in a manner that retain company business for
longer period.
Advantage
 One of the major advantage related with new, wholly owned subsidiary is that they aids
the management for earn high amount of profits through performing all operations and
functions with decided and controlled approach.
Disadvantage
 Cost to start the business or a new, wholly owned subsidiary this is too high and due to
this it is complex for management to invest such a huge amount in the new market. So
this is important that organisation acquire and understand all factors that discuss about
wholly owned subsidiaries.
With analyse the geographical conditions of market this is understand that there are various types
of products are offered by ASDA that are good in quality and also, organisation is already known
as a well-known global retail brand (Kim and et, al., 2021). So Merger or takeover is one of the
best option which is related with business because this aids to manage work within their control
through utilise company perspectives in an organised manner.
To what extent selected business units are adopted by the country
With understand of all over the world this is understand that each country is facing
similar problems of pandemic conditions that impacts on all the business operations and
functions. This refers that the management considered towards engage of all those factors that
are important to learn such as to introduce mask, follow Covid-19 guidelines, etc. because
majority of the retail operations and functions performed by ASDA relates with food-products so

this is important to ensure that all guidelines are followed for performing the organisation
operations in a safe-manner.
On the other side, exporting, importing and global sourcing perform an important role in
the international retail industry. Within this week ASDA announce that they introduce new
Covid marshals after the announcement of new government guidelines. This also refers that with
implement of decided guidelines this is easy for management to complete task in a legal manner.
It also ensure that management follow all guidelines among their stores and supermarket within
and also across the country (Régnier and Wild, 2021). One of the main reason to introduce this in
the company is that this will keep the safety of their customers as a key priority for business. It
also ensure that all individuals keep safe whether they are staff, customers and stakeholder of
another country. To keep safe from the pandemic atmosphere or environment ASDA is
implementing some of the additional perspectives in order to offer and encourage individuals to
complete work with safe approach.
Implement of Porter's generic strategy for formulation of competitive-edge
Michael Porter, an economic researcher examine and analyse the competitive-behaviour
of the individuals and this aids management for comprise successful business. Within the early
years of 1980 management introduce and maintain long term advantage through use of this
model and this aids companies to manage work by interconnect all steps which is related with
business models (Salehzadeh, Tabaeeian and Esteki, 2020). Some factors of the Porter's generic
strategy are mention as follow:
COST-LEADERSHIP
According to the name this is understand that cost leadership allow an organisation to
formulate a competitive-edge through manipulate the production cost. For induce cost leadership
within the organisation basically, there are two methods introduce by management which is to
charge low price for increase the market share and this is done for casting company as the low-
cost alternative and it results for increase both sales as well as company profile. Moreover, cost
reduction such as by control expenses on books, product research, etc. this is easy to implement
right cost-leadership strategy. In the context of competitive-edge cost leadership method is used
by management to control overall cost related with business. Also, low-cost attracts more
number of customers through build value-chain at low cost.
DIFFERENTIATION

Price is consider as one of the most important factor to attract the customers but,
differentiation method is used for develop product in an unique and attractive manner for engage
customers. ASDA utilise differentiation method to engage better services in business in order to
attend and fulfil customers requirements with more efficiency. Moreover, this method is used for
induce different concepts that are related with company approach and each of them is used to
understand and analyse the customer perceptions towards the customers. It is also used by
management for complete all task through generate of support systems specifically, those that
differentiate an organisation from the needs of customers (Sokolova and Sukhareva, 2020).
Within concentrated on differentiation strategy ASDA management introduce all those factors
that is used to differentiate products within different segments. Also, a large variety of products
promote and introduce different level of functions with new and unique value and it aids ASDA
to charge premium prices.
FOCUS
Both leadership as well as differentiation is used by the management to appeal more
number of customers and this results in enhancement of customer base. Moreover, with focus
approach management induce more efforts and it aids to enter in niche market by adopting all
those strategy which is related with risk aspects of business. With engage of all demographic
factors ASDA management ensure that organisation is able to formulate the attractive group of
individuals by conducting research in both perspective whether, they are internal or external.
Cost-focus and differentiation focus are the two specific strategy and also they focus on both
production cost and delivery factors as this make intend through which customers perform their
work in an unique manner (Vargas-Sánchez, 2021). ASDA management also aids to decide the
knowledge factors with induce of all those factors through which all opportunities are achieved
by management by identify the company segments more attractive as compare to competitors.
ASDA is one of the largest retail organisation that is performing their work among all
over the world and also, current perspective of business is to introduce the business in new
geographical areas. Differentiation strategy is used by the management because this helps in
completion of task with investigate of all those factors that make presence of ASDA unique and
valuable through increase quality of products in new market. Therefore, porter's generic strategy
perform an important role because this is one of the most appropriate framework that is simple

and effective to implement. Furthermore, this also helps to investigate all strategies and than to
select one which match with products and helps to dominate the market.
Strategic Business plan and methods to measure its success for improving company operations
and functions in future
Business planning is one of the most important factor or component for an organisational
success. They provide plans to the organisation for establishment of tools which are important
for track growth, establishment of budget and identification of change within the market. In
simple terms, strategic plan is a written document which pair company objectives with needs of
the market place (Wirtz, Müller and Weyerer, 2021). Moreover, steps of the strategic plan are
mention as follow:
VISION- The vision of ASDA is to enhance number of customers through offering better and
effective values among their products and services. Overall vision of organisation is to
understand who customers are and what they need.
MISSION- Management of ASDA is to build policies and procedures which are related with
customer values and company strategy both for accomplish of company goals and objectives in
an organised manner.
INITIATIVES- They are used to specify the key action and activities related with business as
most of them relates with accomplishment of company goals. Moreover, high level project are
completed by ASDA so with induce of the product initiatives management formulate strong
company strategy as this aids leaders to accomplish company goals and objectives in an
organised manner. PERFORMANCE IMPROVEMENT through use of REPORTING SYSTEM
is one of the major important function which aids to enter in the new market through inducing
clear and competitive-strategy for business.
MARKETING PLAN
Business plan helps the organisation or companies to identify the target market in an
effective manner so while formulation of business plan to enter into a new market. The
management of ASDA also understand and analyse all those factors that relates with customer
section and market requirements as they are used by companies to identify most appropriate
groups in which company products are more in demand (Zhou and et, al., 2020). ASDA
marketing plan aids to identify most common characteristic which are similar among majority
customers because this helps for market and manufacture products at large level.

FINANCIAL PLAN
Finance team or department perform an important role for the ASDA because it helps the
management for calculate the overall profits related with business. Net pay back period and
profit estimation are the two major concept which are concerned by management to calculate
company profits. With understand of both this method this is identified that respective
organisation ensure that project are completed within decided budget.
Particulars Amount (In million
pounds)
Rental charges for location 2000
Promotional cost 4000
Salaries to employees and other staff 1500
Service cost 200
Exhibit related cost 500
Total cost 8200
CONCLUSION
With understand of the above report, this is concluded that strategic management perform
an important role for an organisation to perform their task and actions in an organised manner. In
the present scenario, one of the major concept related with business is to formulate and induce
effective strategy and this helps to sustain in market for longer period. Along with this by
analyse of the internal and external environment management of a business identify all upcoming
opportunities and threats which are related with business operations and impact on the entry of
company with in a other country. Merger, Joint-venture, etc. are the specific methods which is
used by organisation for entering into the other country. On the other side, Porter's generic
strategy is also understand and this aids management to gain competitive-edge against rival
organisation through inducing the differentiation strategy among all departments.

REFERENCES
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