Impact of Globalization on ASDA Stores Limited (Unit 18, 2019)

This report examines the influence of globalization on ASDA Stores Limited, focusing on how operating in a global market impacts its organizational structure, culture, and functions. It explores the effects of globalization on ASDA's governance, leadership, and decision-making processes, including the various routes to internationalization and associated barriers. The report analyzes the advantages and disadvantages of ASDA's organizational structure and functions in a global context, applying relevant theories and models such as Liberalization Theory and Marxism Theory. It also evaluates global strategies like global standardization, localization, transnational, and international strategies, offering recommendations to enhance ASDA's organizational decision-making process, including the adoption of different organizational structures and in-depth environmental analysis. The analysis includes critical evaluation of business structures, interrelationships of organizational functions, and internationalization strategies, providing a comprehensive view of ASDA's global operations.

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

Table of Contents
Introduction.................................................................................................................................................3
Organizational structure and functions relationship.....................................................................................3
 Impact of globalization on leadership, governance, functions and structure of ASDA Organization
4
 Impact of ethical as well as sustainable process of globalization on organizational functions at
ASDA Organization................................................................................................................................4
 Global market influences in application to appropriate theories and models relating to
organisational structure and culture within ASDA Organization.............................................................5
 Advantages and disadvantages of Organizational structure and Organizational Functions..............5
 Globalization and Decision-Making Process...................................................................................6
 Determine and articulate the various routes to internationalization, including key barriers.............6
Critical analysis of business structures and the interrelationships of the different organizational functions 7
 Business Environment Global Strategies.........................................................................................7
 Recommendations...........................................................................................................................7
Bibliography................................................................................................................................................9

Introduction
Globalization is the process in which the management of the organization decides to operate on
much larger scale beyond national boundaries of the country. The organizations as well as
entities develop international relations and scale their operations internationally in the process
(Albrecht et al., n.d.). The scale of spread of organizations in international boundaries depends
upon the type of organization is and the investment it is making in the expansion. It is affected
by many factors as well as can influence the performance of organizations on very large scale in
positive or negative manner according to various conditions. In this study, an attempt is made to
research the influence of globalization on the operations of ASDA Stores Limited of UK (ASDA
Company, 2019a).
The research questions of this study are:
 In what way operating in a world market impact ASDA company’s culture structure as
well as functions
 What is the impact of globalization on strategy as well as decision-making process of
ASDA Organization’s?
The research Objectives of the study are:
 To identify the impact of Globalization on organization structure of ASDA company,
Governance as well as Functions.
 What is the impact of the Globalization process on the decision-making process of the
ASDA Organization?
 To identify barriers in global decision making process of ASDA Organization
 To analysis the strategies adopted by ASDA Organization in Global World Operations
 To recommend efficient organizational decision making process according to appropriate
structure
Organizational structure and functions relationship
The structure of any organization is considered one of the core factors of its operations. It
influences the operations directly, as the big the structure is the scope of operations is vast and
vice versa (Cameron, 2015). In this report, the influence of organizational structure is going to be
analysed in following paragraphs:

 Impact of globalization on leadership, governance, functions and structure of ASDA
Organization
The structure of organization is the layout inside as well as outside of the organization. It is the
blue print, which discuss the way in which activities are going to be conducted in an
organization. The way in which the governance of ASDA works with various supervising
techniques of the organization (ASDA Company, 2019 b). In this report, the influence of
globalization and its factors is analysed with respect to organizational structure of ASDA
organization of UK. The influence of globalization on:
a) Governance and leadership of ASDA organization: It helps in increase in sales,
demands and processing of operational information in ASDA organization. In this way,
the governance of ASDA gets affected which in turn influences overall working and
operations of the company.
b) Structure and Functions of ASDA: The structure and various functions of the
organization is directly or indirectly affected by the operations of the organization
whether they are conducted within international boundaries or outside them (Muthusamy,
2019). The change in structure and operations take place when ASDA plans to expands
its operations in other countries.teh influences can be related to technology, production,
planning, functional, etc departments of ASDA. These all can be influenced by
globalization of organization.
 Impact of ethical as well as sustainable process of globalization on organizational
functions at ASDA Organization
The globalization is a vast concept, which is related to conducting operations on a larger scale
beyond national boundaries. There are many factors considered in the process of globalization or
operating business in global world (Tidd & Bessant, 2018). Among various affecting factors of
globalization there is one of the most important factor is the ethical considerations the business
have to consider while taking their business beyond local boundaries. These ethics must be
considered before and while conducting operations in international boundaries (Manzoor, 2012).
It is an important factor to be considered as it directs the behavior of the employees of the
organization as well as operations of the organization in international boundaries.

 Global market influences in application to appropriate theories and models relating
to organisational structure and culture within ASDA Organization
The influence of globalization on organizational structure of ASDA can be analysed in many
ways. Among those methods, one of the productive methods is the application of theories and
models in understanding the influence of globalization on organizational structure of ASDA
Company of UK (Turner & Holton, 2015). The considered theories and analysis of impact of
globalization on structure of organization is described in following lines:
a) Liberalization Theory: This is one of the top theories of globalization as it acts as the
basis for globalization of organizations. The theory of liberalization talks about the
modernization of economy as well as organizations of a country. It is related to making
the economy liberal for facilitating various operations of internal as well as external
organizations of the country. According to this theory, the organizational structure of
ASDA organization must be liberal enough to accept the new policies, challenges as well
as regulations of the international countries in which the company plans to expand its
business.
b) Marxism Theory: The Marxism theory of globalisation helps the companies in
establishing their codes of conducts in international boundaries for their employees as
well as for the operations of the company. According to this theory the globalization,
affect the organization in terms of its production, exploitation of available resources of
the country, environmental considerations by the company, etc. In many ways, the
globalization according to Marxism theory affects ASDA.
 Advantages and disadvantages of Organizational structure and Organizational
Functions
In global world, when the company plans to expand its business it has to consider some factors
that may affect the structure of the organization as well as its functions in drastic ways. The
organizational structure is considered the top most priority of an organization as all the
operations and resources of ASDA depends on its organizational structure (Gillespie, 2015). Still
there are some advantages and disadvantages that ASDA encounters with respect to its global
organizational structure as well as functions (Körner, 2015). The main advantage is that ASDA
can make use of efficient employees from different countries by involving them in their structure

of operations. On the other hand, the main disadvantage is that the change in structure as well as
operations due to globalization can make people to resists, which can impact functions of the
organization. This needed to be taken care by ASDA organization in effective manner.
 Globalization and Decision-Making Process
Decision-making is the process in which organization go through a set of steps and accumulate
some alternatives with response to some external stimuli (BRETOS & MARCUELLO, 2016).
Among those selected alternatives, managers select the best one to accomplish their task in
effective and efficient manner. In globalized operations, the ASDA can adopt certain methods in
making decisions:
a) Environmental Analysis: The analysis of the environment both internal as well as
external can influence the operations of organization and its structure in many ways.
b) Employee Involvement: The involvement of employees in the decision making process
of the ASDA organization can help company in getting to know various factors faced by
employees in global world while detailing with their customers. This can help in better
decision making (Holten & Brenner, 2015).
 Determine and articulate the various routes to internationalization, including key
barriers
The organizations can expand its business worldwide in many ways. It is the responsibility of
ASDA organization to identify and analyze certain ways of internationalization of their business
activities or operations such as exporting the products and services, opining branches in other
countries, providing franchises to people in different countries, collaboration among ventures,
etc. In above-mentioned ways, the ASDA Company can expand its business internationally.
While expanding business the company face many barriers such as the barrier of entry, lack of
environmental knowledge, lack of control, no full exposure to countries resources, fear from
competitors or corporate giants already established in that foreign country, etc. in order to be
productive and run operations smoothly ASDA organization needed to take required measures
(ASDA Company, 2019a).

Critical analysis of business structures and the interrelationships of the different
organizational functions
The critical analysis of impact of globalization on organizational structure, the functions as well
as employees are discussed in above lines. It is the responsibility of ASDA to bring efficiency as
well as effectiveness in the functions of the company globally in order to make profit in the end
and be competitive in nature.
 Business Environment Global Strategies
There are some internationalization strategies that can be adopted by companies I expanding
their business worldwide. The strategies that can be adopted by ASDA Company can be:
a) Global Standardization Strategy: As the name suggests the global standardization
strategy focuses on keeping same organisational functions, structures, marketing in all
over the world. This enforces the follow up of same strategy by organization in all over
the world. It helps the company in establishing their standards (Gillespie, 2015).
b) Localization Strategy: Under this strategy of globalization, the companies focus on
making their products according to the cultural values, tastes, preferences, etc of the
country in which they are targeting to expand their business.
c) Transnational Strategy: This strategy of globalization helps the companies in
establishing and maintaining their structure in such a way that can help the company in
conducting operations internationally. It helps them in making their structure competent
to global world by following proper planning and commitment.
d) International Strategy: In this type of strategy, the company chooses to opt for the best
international strategies, which are prevailing in teh market of the domestic country, as
well as the country to which the company is trying to globalize (D.D.Warrick, 2017).
 Recommendations
The organizational structure plays a very important part in proper functioning of an organization.
it is important for ASDA to bring efficiency in its organizational structure which can be possible
if it can opt for one or all of the following recommendations:

a) ASDA can opt for different type of organizational structures such as functional structure,
divisional structure, matrix structure, etc. It depends upon the prevailing situations, based
on that the appropriate structure can be adopted by ASDA internationally.
b) The decision-making process of ASDA can be influenced by the prevailing conditions,
which can be identified by conducting in-depth external environmental analysis of the
particular country in which the company is planning to expand its business (Cummings &
Worley, 2014).
c) While expanding business globally, ASDA can consider some changes in their
organizational structure based on technology, target market, marketing practices, etc. It
can be done in order to bring innovation and creativity in operations of the organization
(Polder et al., 2010).
d) The decision making process is a very crucial process, which stimulates each, and every
function of ASDA in domestic as well as international countries. The company can bring
changes in its decision making process by involving specialised human resources from
around the world. It can also influenced by effective communication among various
international as well as domestic branches of ASDA Company to bring consistency and
togetherness in operations.
e)

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