Strategic Management Portfolio: Analyzing ASDA's Strategies

This portfolio provides an in-depth analysis of ASDA's strategic management, examining its strategic position, current strategic options, and contemporary strategic management thinking. It begins with an analysis of ASDA's internal and external environments, including SWOT, PESTLE, Porter's Five Forces, and VRIO analyses, to evaluate its competitive advantage. The portfolio identifies current strategic options using the TOWS matrix and Ansoff matrix, followed by a strategic evaluation using the SAF framework. A justification for the selected strategic option is provided, emphasizing market penetration to expand internationally and engage more customers. The portfolio also includes a critical self-reflection using Gibbs Reflective Model, discussing personal learning and future actions. Ultimately, the portfolio evaluates ASDA's strategic management in depth, critically analyzing different perspectives in light of relevant concepts and theories, highlighting the importance of stakeholder engagement and strategic capabilities.

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PORTFOLIO
TOPIC: STRATEGIC MANAGEMENT
[Student Name]
[Student ID]

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Executive Summary
The main aim of this portfolio is to discuss the strategic management concepts and
theories that connect with the real organisation ASDA and reflect how ASDA generates and
evaluates its strategic position and perspectives. ASDA is the second-largest supermarket chain
in the UK, built in 1965 and entirely owned by Walmart, one of the world's largest companies.
Further, this portfolio covered strategic position, current strategic options, contemporary strategic
management thinking and critical self-reflection and progression to evaluate the ASDA strategic
management in depth and critically analyse its different perspectives in the light of concepts and
theories. The swot analysis gave a clear idea that the ASDA company opportunities have allowed
it to grow in Europe and access international opportunities, engage customers and expand its
business internationally. Further, the TWOSC analysis identified that spending significantly more
on marketing and advertising strategies is necessary for Asda to thrive by building on its existing
brand identity. Thus, market penetration is a suitable strategy for ASDA to move the company
into international markets, engage more customer’s worldwide, gain profit, and take a
competitive advantage in the international market.

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TABLE OF CONTENTS
Executive Summary.............................................................................................................2
Introduction..........................................................................................................................5
1. Strategic Position.......................................................................................................5
1.1 Analysis of Enteral and Competitive Environments..................................................5
1.1.1 Analysis of Internal Environment.......................................................................5
SWOT analysis............................................................................................................5
1.1.2 Analysis of Competitive Environment................................................................6
1.3. ASDA Financial and Stakeholder Analysis..........................................................8
1.2 Strategic Position and Strategic Capability...............................................................9
2. Current Strategic Options........................................................................................10
2.1 Identify Current Strategic Options with TOWS Matrix..........................................10
2.2 Analysis of Strategic Options with Ansoff Matrix...................................................11
2.3 Strategic Evaluation Options in SAF Framework...................................................12
2.4 Justification of Selected Option for Organisation....................................................12
3. Contemporary Strategic Management and Its Potential Impact on Organisation...13
4. Critical Self-Reflection and Progression.................................................................14
4.1 Introduction..............................................................................................................14
4.2 Gibbs Reflective Model...........................................................................................14
4.2.1 Description........................................................................................................14
4.2.2 Feelings.............................................................................................................14
4.2.3 Evaluation.........................................................................................................14
4.2.4 Analysis.............................................................................................................14
4.2.5 Action Plan........................................................................................................15
5. Conclusion...............................................................................................................15

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References..........................................................................................................................17
Appendixes........................................................................................................................24
1. PESTLE Analysis.................................................................................................24
2. Porter’s Five Forces.............................................................................................25
3. VRIO Analysis.....................................................................................................26
4. SWOT Analysis....................................................................................................26
5. Generic Strategies................................................................................................27
6. Ansoff Matrix.......................................................................................................27
7. Financial Analysis................................................................................................28

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Introduction
Strategic management is an ongoing analysis, planning and monitoring assessment in
which an organisation meets its needs in all strategic management requirements to achieve its
objectives and goals (Fuertes et al., 2020). Additionally, strategic management comprises five
basic strategies of an organisation that applies on mobile platforms and on-premise, and an
organisation can clearly understand its vision, mission, actions and values where accompany
wants to stand it. This portfolio aims to discuss the strategic management concepts and theories
that connect with the real organisation ASDA and reflect how ASDA generates and evaluates its
strategic position and perspectives. ASDA is the second-largest supermarket chain in the UK,
built in 1965 and owned by Walmart, one of the world's largest companies (Jones & Comfort,
2020). Therefore, this portfolio has four parts; strategic position, current strategic options,
contemporary strategic management thinking and critical self-reflection and progression to
evaluate the ASDA strategic management in depth and critically analyse its different perspectives
in the light of concepts and theories.
1. Strategic Position
1.1 Analysis of Enteral and Competitive Environments
An organisation points out its system that is constantly interacting in environments
(Hutchins, 2020). For gain a competitive advantage, it is imperious to analyse its internal
environment in a framework of SWOT analysis and then identify its competitive advantage that
is a task environment according to the Poster’s Five Forces model illustrates below.
1.1.1 Analysis of Internal Environment
SWOT analysis helps to identify the strengths, opportunities, threats and weaknesses of
ASDA's internal environment that leads to the company in the market.

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Strength
 The value of ASDA's brand is one of its
primary strengths. With 17% of the
market, it ranks second only to TESCO as
one of the major brands in the UK (Bandy
et al., 2021).
 Its distribution over the entire UK has
benefited the business in gaining
economies of scale (Haydock and Smith,
2019).
Weakness
 ASDA has a webpage, but it has not been
able to deliver quality online services
(Newing et al., 2022).
 Less range of products is offered at the
company's store. As there are many
locations that its businesses do not serve,
ASDA's retail locations are not well
considered (v Brierley, 2022).
Opportunities
 The corporation can expand more by
adding additional locations (Rossi-
Hansberg et al., 2021).
 ASDA has the chance to grow in Europe,
where it may access international
opportunities and clients (Leach, 2022).
Threats
 Local grocery stores, which are expanding
daily, pose a serious challenge to ASDA
(Fung et al., 2019).
 TESCO and Sainsbury are gaining on
ASDA's consumer base, as they carefully
grow across the UK (Urquhart et al.,
2022).
The above SWOT analysis shows ASDA's strengths, weaknesses, opportunities, and
weaknesses in the UK market. In line with that, the strength shows how ASDA performs in the
UK market. The analysis demonstrated that ASDA distribution across the UK has economic
advantages and stands second after TESCO in the UK market. Moreover, the weakness of ASDA
is that the company needs to improve its quality online services and a range of products only
offered in stores and many locations of ASDA are not well for business. Moreover, the above
SWOT analysis identifies the opportunities for ASDA Company that the company has availed a
chance to grow in Europe and access international opportunities, engage customers and expand
its business internationally. Therefore, some threats ASDA has faced include a serious challenge
of local grocery stores. Thus, Sainsbury and TESCO are big competitors of ASDA that have
successfully grown across the UK.
1.1.2 Analysis of Competitive Environment
Rivalry, buyer bargaining power, supplier bargaining power, the threat of new errant and
threats of substitutes are Porter’s five forces that can help to view an organisation's competitive
environment (Baxter, 2019).

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1.1.2.1 Rivalry
The quantity of businesses in an industry is one element that determines how fierce the
competition is because high competition results from a significant number of companies. After
all, each one must compete for market share (Bozic et al., 2019). In the UK, there were about
190,000 retail businesses in 2012 and this shows the signals of intense industry competition,
which means Asda will face tough competition. The market expansion rate is another element
that affects the level of competition. It is anticipated that growth in UK retail sales will decrease
from 2.30% in 2014 to 2.0 % in 2015 and decline to 1.60% in 2016 (Young et al., 2018). Slower
market growth suggests that companies in the sector must work harder to retain or increase sales.
Subsequently, the differentiation of high levels between the many retail companies intensifies
this rivalry, while the industry's high consolidation somehow dampens it. For example,
Sainsbury, Tesco, Morrison, and Asda control up to 74.10% of the retail market in the UK. Thus,
Asda faces significant levels of industry competition overall.
1.1.2.2 Threats of New Entrants
The retail sector in the UK is open and free to enter (Hilmola, 2018). Nevertheless, entry
for new enterprises is challenging because of the high-level consolidation of industries, brand
differentiation, and the substantial economies scale that arrange through the large retail firms.
However, as internet technology and e-commerce have become more widely used, entry into the
business has become simpler due to decreased capital requirements and improved access to
distribution channels. Despite the industry's slowdown, significant retailers have continued to use
price as a tool of competition. As a result, there is a genuine risk that new competitors will face
retribution based on price and the threat of new competitors presents as modest.
1.1.2.3 Threats of Substitution
There are no comparable products offered by competing retail establishments because
most UK retailers have robust online services. Even though the expansion of retail online
platforms has been hailed as posing possible substitutive risks for a retail industry where the
threat is considered low and weak.
1.1.2.4 Supplier Bargaining Power
There are a lot of suppliers in the UK retail market but they are dispersed. Because the
largest retail chains have enormous price advantages above suppliers of up to 11.0% due to their

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size, and as a result, they significantly influence the suppliers. Hence, this gives the impression
that the supplier's negotiating position could be more assertive.
1.1.2.5 Buyer Bargaining Power
Retail shoppers now have an easier time comparing costs and looking for deals because
of the growth of online shopping, giving them more leverage over merchants. But
simultaneously, the purchasers are numerous and dispersed, which limits their influence over the
sellers. Thus, buying power is moderate and low and Asda must generally be comfortable with
intense competition and few challenges from suppliers, potential competitors, and replacements
(Moazzam et al., 2018).
1.3. ASDA Financial and Stakeholder Analysis
Moura (2021) reported that an efficient stakeholder engagement model with five
components in the forms of Framework, Annual Review, Systems/Process Integration,
Communication, and Training and Implementation. This model is based on a balanced approach
to addressing stakeholders' interests with firms' goals and ethical and socio-economic strategy.
Figure: 1 1Source: (Moura et al., 2021)

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An organisation can adequately handle each stakeholder's concerns and interests by
implementing this strategy (Farmaki, 2018). For this case organisation, ASDA stakeholders at the
heart of its strategy are its employees, clients, suppliers, shareholders, the community, and the
government. Despite paying attention to recognising external or secondary stakeholders, this
shows that ASDA gives internal or main stakeholders more excellent credit than external or
secondary stakeholders. From the traditional stakeholder perspective of conducting a company,
acknowledging employees, customers, suppliers, shareholders, and the community is
exceptionally standard. Although the company recognises governments as stakeholders, this
recognition is insufficient when ASDA take into account the extensive list of secondary or
external stakeholders, which includes ordinary citizens, the media, partners in the venture, past
and future generations, rivals, non-governmental organisations, trade unions, and trade
associations. Subsequently, it seems like the organisation needs a consistent strategy for meeting
the interests of both primary and secondary stakeholders.
Furthermore, internal stakeholders are often addressed in accordance with how they
contribute to the organisation's financial performance (Rosati & Faria, 2019). However, ASDA
must look further than that a balanced approach to stakeholder interests must be taken.
According to Kujala et al. (2022), who bring attention to two prominent recent trends in the
literature of stakeholder engagement, ethical engagement is implied through explicit situational
communication that is ensured to be free of influence divergence and strategic motivations. In
light of this context, it is advised that ASDA adopt the Sinclair (2012) Stakeholder Engage
Model, which consists of five parts: a framework, an annual review, systems/process integration,
communication, training, and implementation. Depending on the urgency and expectations from
both the inside and outside, the organisation may concentrate on a particular component.
1.2 Strategic Position and Strategic Capability
Asda stores are amongst UK’s leading retail stores with an annual revenue of nearly £
24.98 billion as of the year 2022. Being amongst UK’s top five general merchandise and grocery
retailers, they are spread across entire Britain. A business corporation's strategic position may be
characterised as the decisions it makes to generate value for itself and gain an advantage over its
competitors. According to research by Dickens et al. (2020), it was discovered that Asda, in
particular, employs a type of pricing strategy that ensures its customers receive the most utility
and benefit for their money. This is how the company generates its high-profit margins. Rio et al

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(2019) claim that this company provides its clothing products through a state-wide network of
convenience stores and franchisees. Asda's increased market share, compared to that of rivals
like Sainsbury's and Tesco, is mostly the result of two of these strategic position tactics.
Additionally, it is crucial to evaluate both the internal and external business environments so that
Asda may make informed decisions.
According to research by Faitel et al. (2017), Asda will be able to draw in more
consumers and boost sales even more by analysing aspects that affect or influence its strategic
development and financial performance. These elements include sustainability and ethical
considerations. Numerous elements have been identified as having an impact on the strategic
planning of the goods or services offered by a corporate organisation. Employee performance
management, risk management, evidence-based analysis, engagement, equity, and data analytics
are a few examples among many others. Corporate governance, and policies adopted by
competing companies like Sainsbury's and ASDA, in addition to UK regulatory requirements,
are some of the internal variables that tend to influence Asda’s business operations. These
elements may be favourable or unfavourable. On the other hand, Wood et al. (2017) claimed that
internal factors like brand image, competitive pricing, skilled employees and highly mechanised
means of business operations can prove to have positive impacts on their business activities.
According to Hole et al. (2018)’s research, sustainability lowers expenses and therefore could
tend to impact operational earnings by up to 62 %. Becoming sustainable significantly even
boosts the overall levels of productivity, as evidenced by research by Lee et al. (2019) the fact
that found 23 % more productive capacity as well as 28 % better profitability among
collaborative organisations. Consequently, sustainability and ethical considerations on the other
hand are known to be two of the most integral components while assessing the extent to which
Asda can prove to become benefit from its strategic position within UK’s retail sector, while
already being the market leader.
2. Current Strategic Options
2.1 Identify Current Strategic Options with TOWS Matrix
The TOWS Analysis looks on internal issues inside a company organisation. A TOWS
analysis might be adapted from the traditional SWOT analysis, which analyses threats,
opportunities, weaknesses, and strengths as well. A TOWS research identifies a business

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organization's strengths, weaknesses, opportunities, and threats in a manner akin to the SWOT
paradigm (Helms & Nixon, 2020). The main critique of the SWOT analysis is that it fails to
explain the connections between various categories and components. For instance, some dangers
might greatly increase the significance of deficits. To identify relevant calculated choices that an
organisation may follow, TOWS analysis balances both internal and external elements. It assists
businesses in maximising opportunities from the outside, lowering external risks, addressing
internal issues, and improving their internalized strengths [ CITATION Teo19 \l 1033 ]. The
TOWS is a commonly used calculative forecasting instrument which remains to be exclusively
designed for strategic preparation.
Asda faces external pressures from a variety of rivals that have historically had firmly
established strong market positions. As a result, the business has to be vigilant at all times to
ensure that it is offering the greatest services to its customers. One advantage, according to
Bonzaghpa et al. (2021), is that they provide their customers with some of the cheapest and most
fair pricing, enabling a rising number of customers to get their daily food from them in light of
the rise in inflation levels in the UK. As a result, their consumer base will become stronger and
more devoted, greatly improving their brand's reputation. The fact that Asda must always invest
more time and money in staff training and skill development is one of its weaknesses.
Unfortunately, this results in considerable cost increases and noticeably decreased profit margins
and may be a sign of the firm providing exceptional customer service, which might increase
client happiness and attract additional individuals to deal with it. As for their internal advantages,
they are the top retailer in the UK and a market leader, which improves their brand image and
strategic positioning. Thus, without needing to spend significantly more on various marketing
and advertising strategies, Asda may thrive even more just by building on its existing brand
identity.
2.2 Analysis of Strategic Options with Ansoff Matrix
The Ansoff Matrix, nonetheless, is a framework used by many company administrations
to assess as well as their planned strategies for optimising futuristic development (Lorediana &
E., 2017). This helps businesses investigate a wide range of effects of various choices or
selections regarding how they develop a product within the context of more recent or current
markets, as well as which of those preferences will work best for them. The four main tactics that
tend to work here are product development, diversification, market penetration, and market

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development. Among the best approaches for Asda to effectively develop and uphold an ideal
and future strategy for the expansion of their corporate institute is via the use of Ansoff's matrix.
Market penetration is regarded as one of the grid's safest possibilities among all four techniques.
With the use of this strategy, Asda may increase the volume of sales of any existing product (s).
In addition to saving them a tonne of time, Dawes et al. (2018) claim that it also ensures the
business won't have to spend as much on research and development as they may have had to
when launching a new product to the market. With a little research and effort, individuals may
easily find solutions to strengthen the areas where they fall short. For instance, they may reduce
expenses, improve packaging, or even increase marketing as many customers would first be
unaware of their operation.
2.3 Strategic Evaluation Options in SAF Framework
ASDA will make new products in the UK market and produce home appliances such as
microwaves, cookers and all home appliances. In continuance, ASDA plans to expand its
products in markets of different countries, increase customers worldwide, and gain profit and
future development for business. Therefore, the market penetration of ASDA is a strategic option
that fulfils the requirements of SAF framework options; feasibility, accessibility and suitability,
are illustrated below (Vinayavekhin & Phaal, 2020).
Feasibility: Feasibility is the best time for making new strategies in which ASDA can move from
local markets to international markets, which will help ASDA introduce its products into new
markets.
Accessibility: Strategies can make acceptable for stakeholders of ASDA business because they
will help increase company revenues, decrease expenses and also help to save time.
Suitability: Market penetration is a suitable strategy for ASDA to move the company into
international markets, engage more customer’s worldwide, gain profit, and take a competitive
advantage in the international market.
2.4 Justification of Selected Option for Organisation
In light of the SAF framework and the selected market penetration from the Ansoff
matrix, ASDA decided on a certain strategy direction for the company's future development and
to decrease the challenges that the company faces after the pandemic (Iacovidou & Voulvoulis,
2018). Because the right strategy is a crucial task that provides value and viability to the
company, market penetration is a suitable strategy for ASDA, and market penetration is the best