BSc Business Management: ASDA Strategic Planning and Analysis Report

This report provides a comprehensive analysis of ASDA's strategic management, focusing on its business strategy, strategic planning, and the impact of internal and external environmental factors. It begins with an introduction to strategic management, defining key concepts and outlining the process organizations use to determine their strategies. The report then critically assesses the strategic planning process used by ASDA, including the application of SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. A critical evaluation is provided on the impact of internal and external environmental variations on ASDA's organizational strategy. The report also includes a review of ASDA's strategic plan and proposes an action plan based on changes in the internal or external environment. The analysis highlights ASDA's strengths, such as its brand image and multi-channel presence, while also addressing weaknesses, such as its limited global market penetration and supply chain challenges. The report concludes with a discussion of the implications of these findings for ASDA's future strategic direction. This report is a solved assignment contributed by a student on Desklib.

BSc (Hons) Business Management Top up
BMP6002 Strategic Management
Strategic Planning
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Contents
Introduction p
Definition of strategic management p
A critical assessment of the process used by organisations to
determine their strategy p
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy p
A review of an organisation’s strategic plan (Business Plan),
providing an action plan for the organisation on the basis of a
change in either the internal OR external environment. (The
Business Plan is included as an Appendix) p
Conclusion p
References p
Appendix p
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Introduction
Strategic management refers to development and implementation of the
primary objectives and the projects, by the business organization management on
the behalf of the shareholders who are the owners of the firm. Basically the
development of the strategy starts with the assessment of the resources which are
available, the analysis of the industry for assessments of the competitive
environments in which the firms operates and the assessment of the internal
operations(Ahmad, and Ahmad, 2019). By this entire assessment the strategy is
created for achieving the desired objectives and goals. Implementation of developed
strategy find to steer and align the firms with the main goals. The project is made of
the ASDA which is the British retail chain , situated in the Leeds, England. It was
established year 1949 by Peter and Fred Asquith, Sir Noel Stockdale. The report will
mention the critical classification of process which is the use by the firm for
determination of strategy. Further the critical evaluating of effect of the internal
and external environment changes over the strategy of the organisation. In end
review of the organisations strategic plan on basis of the alteration in internal and
external surroundings.
Definition of strategic management
Strategic management is known as constant monitoring, preparation,
analysis & assessment of entire requirements of the business organisation needs
for meeting the goals and objectives. Changes in the environment of the business
will need firms for constantly assessing the strategies for the success( Novikov, and
et. All., 2019).Strategic management process aids the firms for taking the stock of
present condition , chalking out strategies, implementing them & analysing the
effectiveness of implemented plan of action of the management. Strategic
management strategy includes the 5 primary strategies and may differ depending
on the environment of the surrounding. It applies in both the mobile platforms and
on premises.
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A critical assessment of the process used by
organisations to determine their strategy
According to critical assessment administration of the ASDA uses the
SWOT model and PESTLE model for identifications of internal and external
surroundings which aids in determination of the different strategies. All these
techniques aids the companies in formation and implementation of the various
strategies for the internal and external factors. These strategies aids ASDA for
growing the business and also give them long term sustainability in the market
place(Bryson, and Roering, 2018) .
Process of strategic planning plays the crucial role in the attainment of the
short and long term objectives of the business in the effective way. In context to
ASDA it has been analyzed that by the aid of the strategic planning process the firm
takes advantage of the PESTLE and SWOT model. By the help of the factors the
firm has identified the various internal and external causes which impact the
operations of the business organization. For development of the competitive
strategy for the changing environment the firm uses these models. PESTLE analysis
is used by firm for identification of the various external factors like the political,
social, economical,technical , legal and ecological which affects operations of
businesses in the antagonistic and positive manner. In context of the ASDA the
model not only aids the firm for determination of the various strategies of the
business but improves the whole productivity and business profitability. On the other
side the SWOT analysis is used by management of the firm for identification of the
various strength, weakness, opportunities and threat of firm. In context of ASDA by
the aid of the tools management of the company does identification of the strengths
and how to overcome by the weaknesses. With the tool aids the firm for
identification of the threats and opportunities which are available in competitive
market(Bryson, 2018) .
From above analysis it has been evaluated that ASDA which is dealing in
the groceries, food products and clothes and by the use of the strategies for
capturing the market in retail industry. These tools also aids the firm for
improvement in the market stability but also aids them in enhancing the image of
the brands in the consumer mind set and market. Theses tools identifies the
impact of the factor on the firm is negative or positive(Weston, 2020) . These factors
aids management of ASDAs in the effectively accomplishing the process of
decision making which enhances the growth and business performance.
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy
SWOT Analysis – It is the compilation of firms strengths, weaknesses,
opportunities and threats. Main objective of the analysis is for helpings the firms for
developing the full awareness of all factors which are involved in the making of the
decision of the business(Pour, Zadeh, and Zadeh, 2018). Performing the s SWOT
analysis before committing any action of the firm.
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Strengths
 Clear Image- ASDA positions the
goods in market a in front of the
customers as the premium
products. Positioning of the goods
as the high end value and target
the premium segment. Firms
brand image especially in clothes
sector is excellent(Sax, and
Andersen, 2019).
 Multi channel Presence- ASDA
has approximately more than 500
stores in the United Kingdom and
operates the business in online
platforms and by offering
franchises to other business mans.
Full fledged retail stores which s are
handled by business organizations
is around 350 stores(Kryvych and
Goncharenko, 2020).
 Large range of goods- ASDA
have the vast range of the goods
and services to the customers.
They also give the financial
services to the consumers. The
different services consists of the
ASDA smart price, George
clothing, ASDA mobile.
Weaknesses
 Penetrate in global markets- The
business organization has its
presence only in the United
Kingdoms market(Elliott-Engel,
Westfall, and Corkins, 2021). ASDA
is not been able for winning the
consumers hearts and minds of
consumers when they have opened
the stores in Europe and Asia due
to the western cloths design.
 Supply Chain- It is considered as
the main threat which is faced by
ASDA. By the aid of the online
stores the firms wants to grow the
business in whole globe but they
are unsuccessful in delivering of the
merchandise in all over the world.
 Restricted entry business- ASDAs
capability for selling the prices have
the restricted the entrance in few
nations as they fear the strong
competition by the local
vendors(Duhaime, Hitt and Lyles,
2021).
Opportunities
 New Segments:- As the firm deals
in clothing industry and fashion is
changing each and every day. For
the ASDA it is a opportunity for
them. There is great demand of the
traditional clothes in the whole
world.
 E-Commerce:- Online retailing is
the future of the retail and fashion
business market due to the crowd
avoiding by the consumers and very
hectic schedule(Stephens and
Martin, 2019)..
 Expansion in the new countries-
The firms may expand the
operations of the business in other
nations such as China, India and
Threats
 Government rules:- Norms and
regulations of governments
sometimes are not in the favor of
the firm. But due to the tax increase
and changes in the rules impacts
directly the profits and various
operations of ASDA.
 Competition:- It is the most
significant threat for ASDA.
Competitors of the firm are Marks
and Spencer, Tesco and if the firm
do not makes changes in the
policies then it will be difficult for
the firm to survive in the market
for the long time.
 Price cut by the rivals- The
constants cutting of the price
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many others. It aids them for
gaining the more visibility.
impacts the business of the firm.
PESTEL Analysis- It studies the main external factors which influences the
business organization. It is used in the range of various scenarios and provide
guidance to the professionals and senior executives in the strategic decision taking.
 Political factors: They ares those factors of the model which mainly deals
with the various kinds of the policies of the government and the norms of the
market. Uks government have developed the different regulations and rules
in market place which markets firms business organization. All the
strategies and regulations formulated by the government of UK have the
aim for promoting level of the c businesses in the organization.
management of ASDA is one of the most reputable firm in marketplace
which follows entire rules and norms in the marketplace(Bonsu, 2019) .
 Economical factor It is known as the factors of outer market which mainly
deals in the various kinds of the economic factors like the unemployment,
taxes etc. It is the crucial for the management of the business organization
for dealing with the challenges the business may running smoothly in the
marketplace.
 Social factors: Business is very well known of the abode having inflexible
stimulated by the various social factors like the society norms, values,
buying spend pattern , shared belief, inclinations. It is essential for
organization for looking at the demographic inclinations in proper than the
giving them the goods and services to the consumers . Now the consumers
of UK are using the on-line shopping for the electronic change which
allows the business firms to give the merchandise fast. . Spend pattern and
disposable income of the customers is very moderate in United Kingdom
which allows the organization in gaining the competitive advantages(Aithal
and Aithal, 2019).
 Technological factor: Technological aspects consists of the technological
innovations, diffusion of the technology, invention and extraordinary factor
which aids the employer for taking best picks and distinguish firms agency
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from the exceptional rivals. The business enterprise agency use the social
media marketing and merchandising research and technological inventions
for giving spreading the agency popularity between the considerable
marketplace and give better extremely good goods and services to the
customers. UK is the main research and improvement of the nation which
able the employer for performing the business operation with the entire
execution and financial help providing opportunity to the agency.
 Legal factors: There are many important pointers and norms which is the
made by the government of UK which the firms requires for the fulfillment
by the business organizations which they need for performing the manner
in the United Kingdom with the entire execution and skillfulness. Execution
and evaluation of the criminal pointers aids the business firms for avoiding
troubles and provides the competitive benefits. There are many criminal
pointers besides the customers protective covering criminal pointers,,
employee protection criminal pointers highbrow belongings criminal pointers
which permits the business firms for running the business enterprise
operations properly with the out handle the crook complexities.
 Environmental factors: Flourishing environmental attending in the
constant ever-changing climate and the environmental status making it
essential for the firm for knowing the factors of the environment in way. It
is very essential for the organization for examining the environmental
requirements and criminal pointers and pointers which exclude from one
market to the other. Business Organization opts the various strategies
which includes the recycling and waste manage renewable technologies,
techniques to beautify by usage of inexperienced cloth for offering goods.
It allows business organization to shield environment from dangerous
impacts and seek business organization for robust photograph in place of
the market(Hayes, Holiday, and Park, 2022).
A review of an organisation’s strategic plan (Business
Plan), providing an action plan for the organisation on the
basis of a change in either the internal OR external
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environment (The Business Plan is included as an
Appendix)
Aspects for the
evolution
Present
proficiency (Out
of the 10)
Desired
proficiency
(Out of 10)
Actions for improvement Time
duration
Use of new
advanced
technology
7 10 ASDA can use advanced
technology for the
developing of products. It
will help them for the firm to
put more emphasis on the
different aspects of the
product development.
6 months
Efficient human
resource
5 10 Skilled and efficient staff will
help ASDA in effective
functioning of the business
operations for achieving the
strategic objectives and
goals. For this purpose they
need to recruit professionals
who have experience and
knowledge.
3 months
Conclusion
It has been concluded from the above report that it is very essential for every
business to formulate various strategies and policies. This can make an effect on
overall success and evolution in industry. Strategy is crucial since if the
administration not formulate proper strategy, the business is not be able for
sustaining for a long period of time in the market. The report has highlighted the
explanation on the strategic management and it discusses process of the
preparation of the effective and efficient strategies for the business. The project
conclude that impact of internal and external environment of the business
organization and also concludes review of the strategic plan of action.
References
Ahmad, I. and Ahmad, S.B., 2019. The mediation effect of strategic planning on the
relationship between business skills and firm’s performance: Evidence from
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medium enterprises in Punjab, Pakistan. Opción: Revista de Ciencias
Humanas y Sociales, (24), pp.746-778.
Aithal, P.S. and Aithal, S., 2019. Strategic Management of Universal Technologies
for Redefining Productivity & Performance. International Journal of Applied
Engineering and Management Letters (IJAEML), 3(2), pp.81-95.
Bonsu, S., 2019. Strategic management: The concept of competing with self. Journal
of Marketing and Management, 10(2), pp.20-44.
Bryson, J.M. and Roering, W.D., 2018. Applying private-sector strategic planning in
the public sector. In Classic Readings in Urban Planning (pp. 202-219).
Routledge.
Bryson, J.M., 2018. Strategic planning. In Defining Public Administration (pp. 208-
229). Routledge.
Duhaime, I.M., Hitt, M.A. and Lyles, M.A. eds., 2021. Strategic management: State
of the field and its future.
Elliott-Engel, J., Westfall-Rudd, D. and Corkins, C., 2021. Engaging stakeholders in
Extension strategic planning. The Journal of Extension, 59(4), p.3.
Hayes, J.L., Holiday, S. and Park, H., 2022. Corporate social responsibility & the
advertising strategic planning process: a literature review & research
agenda. International Journal of Advertising, 41(2), pp.210-232.
Kryvych, Y. and Goncharenko, T., 2020. Banking strategic management and
business model: bibliometric analysis. Financial Markets, Institutions and
Risks, 4(1), pp.76-85.
Novikov, S., and et. all., 2019. Strategic planning and management of high-tech
developments and innovative technical solutions. Research in World
Economy, 10(3), pp.309-314.
Pour, M.J., Zadeh, Z.K. and Zadeh, N.A., 2018. Designing an integrated
methodology for knowledge management strategic planning: The roadmap
toward strategic alignment. VINE Journal of Information and Knowledge
Management Systems.
Sax, J. and Andersen, T.J., 2019. Making risk management strategic: Integrating
enterprise risk management with strategic planning. European Management
Review, 16(3), pp.719-740.
Stephens, E. and Martin, B., 2019. Business policy and strategic management.
Scientific e-Resources.
Weston, M.J., 2020. Strategic planning in an age of uncertainty:: creating clarity in
uncertain times. Nurse Leader, 18(1), pp.54-58.
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Appendix: The Business Plan
Executive Summary:
The administration of the ASDA comprise of good team of managers which have
used their skills and knowledge in making the company competitive in the market. It
is considered one of the most essential functions of the managers since it allows in
managing the organization and formulate strong and effective policies in the
business.
Vision: The vision of the ASDA is that it is trying to focus on enhancing the
communication skills and develop effective techniques of innovation. This will help
the company in becoming more competitive in the industry. The attention of the
organization is on establishing an effective and efficient R&D department within the
business which focus on innovation in the company.
Mission: The administration of the organization wants to become a leading company
in the world. The founders of the business focuses on gaining a competitive
advantage in the market.
Objectives:
 One of the important objective of the company is to improve the satisfaction
level of the employees and customers in an effective manner.
 To increase the revenues of the company by 5 percent in the next quarter
which assists in increasing the funds of the organization by a good number.
Strategic option of growth- ASDA is working for expansion of the business by
offering new goods to the consumers in the market. ASDA may use the product
development strategy by which they will capture more share in market and
enhance the brand image in market. It will also lead to increase in the loyalty of
consumers.
Marketing strategy- For marketing the new goods ASDA can use pamphlets
distribution for advertising and create awareness in new consumers. Further they
can take the help of social media platforms for reaching the consumers and offer
them new goods.
Funding sources- There are many options which are available to ASDA for raising
the funds for the new goods. From all the options available ASDA can use bank
loan which will aid them in getting funds with less rate of interest as compared to
to other available sources.
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