Global Business Environment: Asda SWOT and Operational Impact

This report presents a SWOT analysis of Asda, a major player in the global business environment. It meticulously examines Asda's strengths, such as its focus on sustainability, customer interaction, and strong brand positioning, while also identifying weaknesses like limited global presence and lower qu...Read More

Global Business
Environment.
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Table of Contents
MAIN BODY..................................................................................................................................3
SWOT Analysis of Asda.............................................................................................................3
Operational impact analysis .......................................................................................................4
REFERENCES................................................................................................................................6
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MAIN BODY
SWOT Analysis of Asda
Swot analysis is the tool to identify the strength, weakness, opportunity and threats of the
organization. Through analysis these four aspects the organization can take better and effective
decisions regarding the factors that can affect the company's performance. Swot analysis of Asda
is as follows:
Strength – Asda aims to reduce the negative environmental impacts due to their operations and
people in most of the countries prefers and likes to consume products and services of the
organization which takes efforts for environment and society welfare. Therefore, their objective
of sustainability acts as a strength for them. Also, there are wide range of products for the
customers to choose from and their constant connection and interaction with the customer acts as
strength for them (Gürel. and Tat,2017). The marketing campaign of Asda is also very engaging
and customer delight which specifies about the product features and quality. The positioning of
the brand is also very strong in the market and skilled workforce adds a greater strength to the
organization.
Weakness – Asda also have certain weakness on which they have to focus and should try to
overcome them such as their limited global presence. Comparatively, the quality of Asda is less
satisfying than the other competitors and also the organization has been indulged into price
fixing which puts a bad impact on the customers and the organization can loose the market share
as the customers can shift to their competitors. Also, the organization is spending less amount on
research and development which will be term out to be a weakness for Asda as they will not get
a competitive advantage as compared to the competitors that are doing research and development
and introducing innovative ways to increase sales.
Opportunities – Introduction of new and advanced digital technologies in the market creates
greater opportunities for Asda. As these digital technologies helps in increasing the productivity
and performance of the Asda by increasing the presence on the digital platforms. Asda carrying
out sustainability, due to this reason it has a greater opportunity to expand into different
countries and into new segments as people prefer to consumer products and services of the
organization that do social welfare and CSR (Vlados, 2019). Therefore, there are higher chances
that their products and services will be accepted in the other countries. Also, there is greater
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opportunity for Asda as some countries and government give licence to those who can generate
employment opportunities in the country it want to expand.
Threats – Poor economic conditions of country is the threat to Asda as they cannot expand in
those countries as the organization will not be able to grow and will not be able to make stable
revenues and profits in that economy. Changing legal laws of countries is also a threat to Asda as
they have to comply with all the new rules and regulations which are being established by the
countries and also changes in certain environmental regulations can restrict the selling of certain
products categories. Price cutting by the competitors are also a threat for Asda as they also have
to reduce the prices which will leads them to loss.
Operational impact analysis
The ways in which the identified key drivers in SWOT can impact upon Asda's
functional areas such as social welfare and sustainability, use of digital technologies, poor
economic conditions of the countries and changing legal laws of the countries. The two
functional areas that are impacted are:
Finance – The functional area of finance in Asda gets impacted from the social welfare and
sustainability done the organization as there are lot of funds required for conducting the
activities and purchasing the environmental friendly machines which does not harm the
environment and contributes to sustainability (Esswein. and Chamoni, 2018). Also, social
welfare includes donations providing resources to the poor people and organizations which
requires money and funds and it can be received by the finance department.
Also, the advancement of technology impacts the finance department as money is needed for
installing new digital technology and also various equipments are needed to be purchased for
introducing the new digital technologies and the finance department sources the funds for it.
The poor economic condition of the countries impacts the finance department as funds are
needed for successful running of the organization and if the countries economic condition is not
good then the organization will not be able to generate profits and earn funds.
The changing legal laws of the country impacts the finance department as changing laws puts an
obligation on the part of organization to comply and for that sometimes funds are needed to
complete the formalities.
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Human Resource – The functional area of human resource of Asda gets impacted by the social
welfare and sustainability objective of organization as specialized people are required for
operating the new machines which are environmental friendly.
The advancement of technology adds new equipments in the organization and for their
operations and working separate human resource are required which can handle all the digital
technology and can work on them. The human resource department also have to provide training
to employees so that they can operate the digital technology (Yousefi. and Yousefi, 2019). Also,
coaches are required for training purpose and hiring coaches which are experts of the digital
technology is the task of human resource department.
Human resource department in case of poor economic condition of the country cannot provide
adequate salaries as they are not getting adequate amount from the finance department because
of poor operation. Also, qualified people required are also not available to the organization.
Sometimes to comply with the legal laws of the countries the organization has to hire and fire
certain human resource of the organization.
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REFERENCES
Books and journals
Esswein, M. and Chamoni, P., 2018. Business Analytics in Finance Department–A Literature
Review. Muticonferenz Wirtschaftsinformatik, Luneburg.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research. 10(51).
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Yousefi, M. and Yousefi, M., 2019. Human resource allocation in an emergency
department. Kybernetes.
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