Business and Management: ASDA and Tesco Performance Comparison Report

This report provides a detailed comparative analysis of two major multinational retailers, ASDA and Tesco. It begins with an introduction to business and management principles, then moves on to analyze ASDA's strengths, weaknesses, opportunities, and threats (SWOT), followed by a similar analysis of Tesco. The report then delves into the external environment using PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors impacting the retail sector. Porter's Five Forces framework is applied to evaluate the competitive landscape for both companies. The organizational structures of ASDA and Tesco are examined, highlighting their hierarchical approaches and decision-making processes. Finally, the report compares the organizational performance of both companies, including market share, financial strategies, and employee benefits, concluding with a summary of key findings and a comparative overview of their operational strategies. The report offers a comprehensive overview of the companies' approaches to business and management.

Introduction to business
and management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Introduction.................................................................................................................................1
TASK 2............................................................................................................................................2
The external environment...........................................................................................................2
TASK 3............................................................................................................................................4
The organisational structure........................................................................................................4
TASK 4............................................................................................................................................6
Organisational performance........................................................................................................6
TASK 5............................................................................................................................................7
Comparison ................................................................................................................................7
CONCLUSION ..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business and management is basically a discipline that is devoted and derived in prospect
of analysing, organising, planning and controlling of various operations and functions through
which success is attained in systematic manner. It induced as per advancement of managing and
running a business by which long term sustainability and perfection is induced in timely frame.
The management of business is only get processed with support of transferable skills and
knowledge by which continuous success and development is induced (Myers, 2019). The report
below is based on ASDA that is a multinational retailing company that was established in 1949
and it is also be associated with diaries companies of Yorkshire. The report comprise of
organisational structure, organisational performance and its comparison to maintain clear focus
about external environment in context of performance.
MAIN BODY
TASK 1
Introduction
ASDA is a trading business that is a British multinational retailer and that is having
headquartered in Leeds, West Yorkshire. In this the company also get merged with this they have
associated with the diaries. It has also be expanded South of England as during 1970 and 1980
that is acquired Allied Carpets, large Gateway supermarket and many others businesses as well.
The SWOT analysis of ASDA is as define below as:
Strength The company offered huge range of products as with support of extensive
distribution that promote strong connect and understanding of customers as
with this long term sustainability is attained in adequate mode.
Weaknesses Company having limited market presence and also face restriction in few
countries by which quality is getting disbursed.
Opportunities ASDA expands its business into different operations as in jewelery, pharmacy,
photo department and many others as well by which ability to attain long term
goals is accomplished with easiness (Allen, 2018).
Threat The competitors of company is biggest threat as government policies get
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changes by which consistent cost cutting is increases and profit share of
business get decreased.
Tesco is a multinational retailer that has worked within groceries and merchandise along
with this offered diverse range of products and services by which better accessibility is addressed
with perfection. The company was established in 1919 by Jack Cohen and have sold its produces
and services through supermarket, hypermarket, superstore and convenience shops. The SWOT
analysis is as define below as:
Strength Tesco offered numerous awards by which customer service, shopping
experience and retail excellence both get enhanced with this significant
modifications is processed by which brand equity is enhanced.
Weaknesses The global success has witness different operations by which understanding of
marketplace is managed in productive basis. It affects the decision making of
business in direct basis (Mendling and et. al., 2018).
Opportunities Tesco expands its working in different countries that increases its rate of
exploring through which higher benefits is attained in perfection.
Threat Tesco act as leader in market place and with this vigorous competition is faced
that reduces the rate of profit share.
TASK 2
The external environment
The external factors is having direct impact over the business working and its stability
with this rate of productiveness is managed. The Pestle analysis of retailing sector is as briefly
explained below as:
Political The revenue generation and profitability of a retailing industry is affected with
the induction of government policies that has direct impact over economic
generation, consumer habit and international trade. These regulations affect
exported, imported and solid stores by which all the health guidelines is
proposed and it create trouble for business (Easterby-Smith and et. al., 2018).
The antitrust issues also cause different issues related to operational cause that
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affect online services.
Economic A strong economy has direct impact over consumer buying behaviour by
which more of the investors get interested by which profitability of retailing
store is enhanced. Due to the time period of recessions by which global sales
is affected as it offer cutting of price that reduces profit generation.
Social In this industry maintain clear focus towards consumer preferences as public
get enjoy to purchase product at bulk as collecting food products, larger
quantities, clothing and electronics. In this continuous changing preferences of
customers has direct impact over productiveness.
Technological The retail stores make supportive usage of technological advancement by
which sales enhancement is increases and for that store adopt technicalities as
software, hardware and system. In addition to this streamlined services is
promoted by which higher benefits is offered in productive manner (Nuthall,
2018).
Legal The retailing store meet all the legislative conditions before expanding stores
as in this they have to follow labour laws, taxation policies etc. It assist to
overseas the offered products as by using intellectual properties such as
copyright laws.
Environmental Most of the retailing industry make supportive help of different products that
is offered by business as in this quality selection of products is managed. For
example, corporation fear of Soda tax enhanced its consumption and along
with this business has offered fatty foods and for that they have to pay higher
tax.
Porters five forces: It is a strategic framework that is used by the company to gave tough
competition to its competitors by which competitive intensity and its attractiveness is managed.
The analysis of Tesco and ASDA is as briefly explained below as:
Bargaining power of
the buyers
Tesco having a lot of competitors thus this power is lower for them
by which organised growth is attained by business. On the other hand,
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ASDA has reduces its price and offered products at affordable price
by which they attract more customers (Aleksandrova, Aleksandrov
and Vasiliev, 2018).
Bargaining power of
the suppliers
Tesco has 2500 suppliers by which significant modifications is
induced as with this company negotiate with supplier to manage its
profit margin. Whereas, ASDA remain intensify the war by which
better certainty is attained in easiest manner.
Threat of new entrants It has lower impact in retailing industry as it required higher capital
investments for that both TESCO and ASDA enjoy the economy of
scale by which better access of distribution channel is addressed in
better mode.
Threat of substitute It is also be lower in impact as both ASDA and Tesco both offer
wider range of products and services to customers and having a
strong connectivity with marketplace so that long term profit is
attained with perfection (O'brien, 2019).
Rivalry amongst
competitors
Both ASDA and Tesco has lot of competitors as Waitrose, Walmart,
Debenhams etc. and in order to overcome from this competition
company induces timely based strategies so that systematic success is
attained.
TASK 3
The organisational structure
It provide a better frameworks that is used by the business in order to process its working
standards so that working is performed in clear and sustained manner.
Organisational structure of ASDA
ASDA make used of hierarchical structure as they have many functional departments and
more levels and mediums by which it is working management become clear and transparent. In
this working unit is processed by making effectual coordination and suitable balanced by which
business goals and its objectives is attained with perfection. In this organisational behaviour also
get promoted and it promoted the collective efforts by which working performance and its
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productiveness is processed in better way (Klun and Trkman, 2018). In this all the employee get
aware about the satisfaction level so that strong encouragement and involvement is induced by
which ability to accomplish certain task and activities is increases by which long term
sustainability is attained with perfection. In support of this structure ASDA processed its
working with support of decision making that enhanced employee commitment and its
sustainability.
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Organisational structure of Tesco
Tesco make usage of hierarchical structure by which rate of working standards is
managed so that rate of working standards is enhanced in systematic manner. It actually induces
sustained performance by which employee get aware about their roles and responsibilities by
which people get specialisation in particular field. It also get related with the organisation culture
and structure so that better level of integration is processed as with this construction of
individual's personality is enhanced (Suša Vugec, Tomičić-Pupek and Vukšić, 2018). In support
of this structure management get processed its working with support of four layers through
which better illustration of working aspects is considered that reflect better proposition of
working through which working range is getting advanced in specific manner.
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TASK 4
Organisational performance
The performance of organisation is advanced with the collective support of perfect
balanced under which working credibility is addressed with perfection. The performance of
ASDA and Tesco is as briefly explained below as:
ASDA Tesco
The stores of ASDA is owned by Walmart plc
and worked within 633 stores with the market
share of 15.4%. and as per consideration of this
facts it become second largest supermarket of
Britain.
Tesco is the largest organisation that has
whooped the market share as in addition its
stores number also reached to 6800 (Ardito and
et. al., 2019).
ASDA offer george reward scheme by which
they offer schemes as by spending amount to
homeware and clothing by which effectual
count is addressed within shop stores.
Tesco offered clubcard schemes through which
higher victory is offered as with this different
options is opened with this valuable options is
offered as per spending.
In order to enhance the market performance
working standards of business get managed
under which they offer benefits and rewards to
To processed higher working standards Tesco
provide different benefits to its employee as in
terms of training and development that is
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customers under which credibility is addressed
with perfection within which long term
sustainability is attained in timely frame.
counted as non-financial prospect as with this
ability to make productive changes is
addressed in systematic manner.
In relation to financial performance ASDA
offered various financial benefits and facilities
with this probability to gain higher competitive
advantage and success is attained in timely
frame within this long term sustainability is
also be attained. For this higher amount of
changes is offered through which rate of
productiveness and profitability is enhanced.
As if employee get monetary benefits that they
get connect more with company operations and
also get retained within the business for longer
period of time (De Ramon Fernandez, Ruiz
Fernandez and Sabuco Garcia, 2020).
Tesco provide quarterly promotions to the
employees and it is directly based on the
working capabilities. In this company get
ensure that long term goals are accomplished
as with timely frame and under this they
offered higher wages to employee as per
according to working skills and experience.
For this employee get retained in systematic
form through which strong interrelation is
developed in productive mode.
TASK 5
Comparison
The working performance of the business is completely dependent on various factors that
is used by business in order to make supportive changes as with this rate of productiveness is
managed and controlled. For this direct focus is maintained towards the environment analysis
within which performance credibility is addressed in effective mode. It is as briefly explained
below as:
BASIS ASDA TESCO
Working
standards
The company believes to work
integrally by which culture and
structure of management is controlled
through which smooth working is
Tesco works with the purpose to provide
clear mission by which better help is
offered through which quality life is
promoted in easier manner.
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processed in systematic manner.
Factors to
increases
working
performanc
e
ASDA promote person credibility by
which dysfunctional working is
identifies by which job performance,
skills, attitude, knowledge, values,
awareness, abilities and experiences is
enhanced. It has positive impact over
improvement through which status quo
is better acceptance is developed in
ordinate mode.
Tesco believes to enhance training and
development by which short term goals
and improvement is induced in which
long term growth and potential is
enhanced through which working
standards get enhanced and working
culture also get promoted (Rikhardsson
and Yigitbasioglu, 2018).
CONCLUSION
It has been concluded from above report that business and its management get processed
its working as with this ability to attain both short and long term gaols and objectives is
processed with perfection. In this external factors are analysed through which working
sufficiency is enhanced and sustainability is attained with adequateness. In addition to this
organisation structure is used by which both cultural and functional basis get cleared through
which rate of productiveness is developed in constrained mode. Moreover, organisational
performance and its relevancy is derived through which business offered both financial and non
financial benefits to employee.
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REFERENCES
Books and Journals
Aleksandrova, S.V., Aleksandrov, M.N. and Vasiliev, V.A., 2018, September. Business
Continuity Management System. In 2018 IEEE International Conference" Quality
Management, Transport and Information Security, Information
Technologies"(IT&QM&IS) (pp. 14-17). IEEE.
Allen, P., 2018. Artist management for the music business. Routledge.
Ardito, L. and et. al., 2019. A bibliometric analysis of research on Big Data analytics for
business and management. Management Decision.
De Ramon Fernandez, A., Ruiz Fernandez, D. and Sabuco Garcia, Y., 2020. Business Process
Management for optimizing clinical processes: A systematic literature review. Health
informatics journal. 26(2). pp.1305-1320.
Easterby-Smith, M. and et. al., 2018. Management and business research. Sage.
Klun, M. and Trkman, P., 2018. Business process management–at the crossroads. Business
Process Management Journal.
Mendling, J. and et. al., 2018. Blockchains for business process management-challenges and
opportunities. ACM Transactions on Management Information Systems (TMIS). 9(1).
pp.1-16.
Myers, M.D., 2019. Qualitative research in business and management. Sage Publications
Limited.
Nuthall, P.L., 2018. Farm business management: the human factor. CABI.
O'brien, J., 2019. Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Rikhardsson, P. and Yigitbasioglu, O., 2018. Business intelligence & analytics in management
accounting research: Status and future focus. International Journal of Accounting
Information Systems. 29. pp.37-58.
Suša Vugec, D., Tomičić-Pupek, K. and Vukšić, V.B., 2018. Social business process
management in practice: Overcoming the limitations of the traditional business process
management. International Journal of Engineering Business Management, 10,
p.1847979017750927.
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