MBA Module: ASOS Company Sustainability and Business Review

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Added on  2023/04/22

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This presentation provides an in-depth analysis of ASOS, a British retail company in the fashion and cosmetics industry, focusing on its sustainability practices. It begins with an introduction to the concept of sustainability and its importance for companies like ASOS, which has faced sustainability issues in the fashion industry. The presentation offers a company description, detailing its product categories, revenue, and business model. It then explores ASOS's business sustainability, highlighting its use of sustainable management practices, efficient value chain, and customer-focused approach. The relationship between growth and sustainability is examined, including critical success factors and key performance indicators (KPIs). The presentation addresses business failures, specifically ASOS's challenges in the Chinese market, and proposes strategies to overcome these failures. An appraisal of the resilience of ASOS is also included. Furthermore, the Viable System Model (VSM) is applied to analyze ASOS's organizational structure and its ability to adapt to a changing environment, offering recommendations for future growth. The presentation concludes by summarizing the key points and emphasizing the importance of sustainability for ASOS's continued success.
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SUSTAINING THE BUSINESS
Asos Company Review
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INTRODUCTION
The objective of this presentation is to enlighten the reader about the
information of the company Asos in the target market and its sustainability
activities as well. The fact should be noted that sustainability refers to the
ability to manage change in such a way that balance in the environment is
created. With the depleting health of the world, it has become crucial for the
companies like Asos to take of the sustainability policies formed so as to ensure
environment health is considered in the market. Further, the company Asos is a
British retail organization present in the fashion and cosmetic in industry. Being
present in the fashion industry, the company many times faced sustainability
issues that hindered its growth in the current market. Furthermore, the
presentation is going to elaborate sustainability activities of the company along
with failures and critical success factors as well. A Viable System Model has
been used to elaborate the struggle of the company to implement sustainability
practices in the business. Further, more information about the sustainability
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COMPANY DESCRIPTION
The company Asos was formed in the year 2000
and provide four categories of products that are
clothing, beauty, shoes and accessories. In the
previous year, the company earned revenue of
2.42 billion. The company has shown consisten
profitability since the year 2012. The full form of
the company is As Seen On Screen. The name of
the company elaborates the brand message as
well as it says that the company provides
products and services same as the customer
have seen them providing on TV (Statista 2019).
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BUSINESS SUSTAINABILITY
Talking about sustainability the fact should be noted
that the company Asos effectively initiates the
sustainable management practices to maintain
sustainable growth for the company. The company
effectively utilizes physical and well as intangible
resources to maintain success of the business.
The efficient value chain system along with its
business model make the company sustainable in the
short term as well as long term. The business make
use of a model that is formed by the mixture of two
business process that are Inditex and Amazon as well.
The company focuses on the requirement of the
customer and then change the production,
manufacturing and logistics system to grow and
succeed in the target market (Nunnally, and Bernstein
2010).
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RELATIONSHIP BETWEEN GROWTH
AND SUSTAINABILITY FOR ASOS
The aforementioned slide explained the business sustainability of
Asos.com, further for the company like Asos it is important to
maintain tough critical success factors along with key
performance indicators to achieve the assumed growth for
business. Thus, the critical success factors and key performance
indicators of Asos are discusses below:
CSFs
Web Traffic
User Friendly Website
Development of Credibility
Clear Value Proposition
KPIs
12 per cent increase in annual sales
15 per cent increase in order size
Develop 7 per cent returning customer orders
Reduce Bounce Rate by 3 per cent
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BUSINESS FAILURES
The fact should be noted that due to efficient
operations of the company Asos.com, the
company has not failed in much of its operations
in the target market.
However, the company failed to operate its
business functions effectively in the market of
China. The company failed in Chinese market
because they were unable to effectively analyse
the demand of the fashion brand among Chinese
people.
The company was unable to position itself on the
e-commerce platform of China due to which they
struggled to create an identified position in the
target market due to which the Asos was
subsequently pulled out of China.
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STRATEGIES TO OVERCOME FAILURES
The reasons can clearly explain that the
company did not performed effective research
about the market of China due to which they
faced difficulty in adopting the new market
features of China (Eric 2012). Below mentioned
are the strategies that Asos.com should use to
grow in the target market:
Effective research of new market
Planning of strategies to enter
Effective marketing and promotion strategies
With the help of these strategies, the business
can easily overcome its failure in the target
market.
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APPRAISAL OF RESILIENCE OF
ASOS
For this they first identify the issues ,
problems and risks faced that are being
faced in across every area of the company
(Baker 2014).
After this the impact of the problem and
issue or risk is analyzed (Wilding 2011)
The company then takes various measures
to manage the problems and issue of the
firm are discussed
After this they are reported to the
management
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VIABLE SYSTEM MODEL
The Viable System Model (VSM) is a model of
organizational structure of that an autonomous
system is capable of producing itself. This model helps
in meeting the demand of surviving in a changing
environment.
This type of system helps the business in surviving
their growth in the diverse environments. In short, this
type of model analyse the viability of the business to
grow in difficult markets. This type of model balances
the internal as well as external environment of the
organization and takes out smallest detail in light
(Easterby-Smith, Thorpe, and Jackson 2012).
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APPLICATION OF VSM IN ASOS
The Viable System Model is a complete
package that can help a business to expand
their scope of business and sustain its growth
in the failing market as well. The VSM can
adequately help the company Asos.com to
not face the issues that they faced while they
were in China. Below mentioned are the VSM
functions that the company should apply in
order to grow:
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RECOMMENDATIONS
The company Asos.com is currently well in
the target market, however just like all other
organizations, the company has still a scope
of growth in the target market. So, the
company should effectively make use of
participatory leadership style to grow in the
target market. The fact should be noted that
the company has achieved the CSFs and KPIs
in the target market, so they should go on
expanding the areas without hampering the
triple bottom line (Freeman 2010).
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CONCLUSION
Thus, in the limelight of above mentioned
events the facts should be noted that the
above mentioned presentation elaborated
details about the company Asos.com and its
sustainability practices in the target market.
The presentation evaluates the financial and
internal working of the company as areas
where they need to improve. The presentation
evaluated business failures and strategies to
overcome along with viable system model for
the company.
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