Pearson BTEC HND: Global Operations of Business - ASDA Case Study

This report analyzes the global business environment of ASDA Stores Limited, examining the key factors driving global trade and commerce, such as technology, economies of scale, and security. It explores the benefits and challenges these factors present, including innovation, improved operations, job mobility, and potential loss of control. The report identifies specific challenges faced by ASDA in the global environment, including market dominance, cultural identity loss, currency fluctuations, and product price instability. It provides a critical evaluation of ASDA's global business environment, highlighting potential economic growth, business expansion, increased profitability, and greater economic efficiency. The report concludes with a discussion of the impact of operating in a global market on an organization's structure, culture, and functions, supporting its findings with relevant literature and examples.

Influence of Globalization
on Organization
With Special Reference to ASDA Stores
Limited
Student Details
10/7/2019

Contents
Analysis of Key Variables that drive global
trade and commerce
Influence of variables in terms of challenges
and benefits
Challenges faced by ASDA in global
environment
Critical evaluation of Global Business
environment of ASDA

Analysis of Key Variables that drive global
trade and commerce
There has been some factors which facilitates the global trade and
commerce of ASDA (ASDA Company, 2019) as well as other
organizations are as follows:
a) Technology
In this factor the technological changes must be considered by
organization in order to expand and run their business in global
boundaries.
b) Economies of Scale
This factor facilities the economic factors of the company that must be
considered by ASDA company while conducting its operations in
international boundaries.
c) Security and Safety
This factor helps in maintaining the operations of ASDA effective in nature
by considering security and safety issues. It is important for ASDA to
consider this while conducting business worldwide.

Influence of variables in terms of challenges
and benefits
Benefits:
Brining innovation: the identified factors can help ASDA
company in bringing innovation as well as creativity in their
operations, which in turn can help in advanced globalization.
Improved Standard of Operations: The factors can help in
improving the scale of organizational operations in order to
bring globalization(Körner, 2015).
Challenges:
Mobility of Job: The identified factors can influence the
mobility of job as ASDA plans to expands business in
international boundaries.
Loss on Control: The identified factors of globalization can
facilitate the loss of control over the operations of ASDA
company, which needed to be controlled in effective manner.

Challenges faced by ASDA in global
environment
The main challenges that are faced by ASDA in global environment are:
Dominance of Global Markets
Cultural Identity Loss of the products of ASDA
Insecurity of Job in international boundaries
Inefficiency in currency sometimes due to currency fluctuations
Instability of ASDA product prices in international boundaries
For e.g.: The if ASDA chooses to operate in India it has to consider the FDI
percentage while entering. It has to collaborate with other domestic business
of India in order to enter in the market as in India no full direct investments
are allowed.

Critical evaluation of Global Business
environment of ASDA
The globalization of market and operational
activities of ASDA can bring (D.D.Warrick, 2017 ):
Economic growth
Business Expansion
Increased profitability
Innovative organizational Functions
Greater Economic Efficiency and commitment

Bibliography
ASDA Company, 2019 b. About Asda. [Online]
Available at: https://www.asda.com/about
[Accessed 7 October 2019].
D.D.Warrick, 2017. What leaders need to
know about organizational culture. Business
Horizons, 60(3), pp.395-404.
Körner, M..W.M.A..B.J.a.G.A.S.., 2015.
Relationship of organizational culture,
teamwork and job satisfaction in
interprofessional teams. BMC health services
research, 15(1), p.243.

Thank You