Globalization's Influence on ASDA's Business Model

Desklib provides past papers and solved assignments. This project analyzes ASDA's response to globalization.

UNIT: 11 Research Project Themes 2018
Student Name:
Student-ID No:
GLOBALISATION ON ASDA

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Table of Contents
1. Introduction.............................................................................................................................................3
2. Literature review.....................................................................................................................................4
Case study...............................................................................................................................................5
3. Methodology...........................................................................................................................................6
4. Timeline of research activities.................................................................................................................7
References...................................................................................................................................................8

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1. Introduction
One of the aspects of globalisation of markets is that the dimension of the corporation is not
necessarily to be huge to build a worldwide market. Even the tiny organizations can build a
universal market (Lemert, 2016). Factors that influence the zone of manufacturing facilities
differ from nation to nation. They might be more positive in foreign nations rather than in home
nation owing to inexpensive labour or low taxes in overseas nations, which compels the firms to
set up manufacturing facilities in different nations. It is modernizing the ways in which nations
work together. State economies turn out to be integrated with the flow of products and
commodities expanding beyond the physical boundaries. In theoretical models, less trade
difficulties or restrictions or reduced transport expenditure brings enhancement in trade among
customers in another nation and manufacturers in the other. In the present environment, the
companies are more capable of segmenting their operations globally, expressing every stage of
manufacture in the nation where it can be done at the least expenditure, and communicating
designs for new goods and new modes of manufacturing goods all over the globe.
By using the case study of ASDA, this research theme focuses on considering what business
models have to be applied by global firms to stay applicable and competitive in the marketplaces.
With customer behaviour and buying power contrasting among nations and continents, it is vital
to understand the fundamental method that can impact trade.
In a extraordinarily quick-moving business setting like retail, each of the players in the supply
chain have to be ready to familiarize their business models to match the shifting requirements of
the industry and market. The title of the research is impact of the globalization on ASDA. The
aim of the research is to understand the impact of globalization on the retail segment and
therefore the case study of ASDA has been considered. The data has been gathered from the past
related research and examined literature and for making a valuable contribution to the topic. The
impacts of globalization are unpreventable, and that’s true for retail segment also. For capturing
the opportunities for worldwide sourcing, production, procurement, logistics, the retailers have to
be flexible. This study shows how globalization impacts the retail area of UK.

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2. Literature review
The procedure of globalisation has impacted the manner of carrying out Business and to a
Greater extent it has also impacted the retail industry all over the world point the procedural
globalisation has announced the way in which trade is done among various nations and these
nations have different legal systems point the organisations have come up with programs that
ensure that their systems are compatible and useful for enabling a feasible business environment
while enhancing international economic activities have influenced the capacity of the countries
and markets and brought lot of changes in various Industries wine therefore the retail industry is
also part of search impact and the globalisation has tried to integrate the systems of different
Nations with the Need for regulating these activities point with the growth of globalisation
demands the way of working has to be amended so that the businesses can feel finger constantly
changing demands of customers (Rohilla & Bansal, 2012).
The issue with the retail Industry is that there are continuous changes in the demands of
customers and therefore the consumer behaviour is also changing all over the world. The
amendment in the Global market environment bring opportunities for the Retail Industry also for
operating globally and therefore the local practices done to be irrelevant. This brings the
requirement for global exposure and training in this industry. Also there is a need of harmonising
the retail industries of various nations which function all over the world for or coming to an
acceptable working arrangement for all contributing nations. The changes in customer demands
and diverse cultures have brought an issue that has observed constant transformations in the way
of living of people. So it is important to understand the changes that are constantly taking place
in the Retail Industry as these have a straight forward effect on the social, political, and business
environment of the whole world therefore it has to be understood by everybody.
Globalization is the expansion of production and distribution of goods and services on an
immensely larger intercontinental scale. Specifically, globalisation and trending to the borderless
environment has impact on the organisations in new manner because the incidents that take place
in the external environment well the management to keep tracks and react to the external
environment. In short the procedure of globalisation has four different phases which are:
1. Domestic
2. Intercontinental or international
3. Multinational and

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4. Worldwide or global.
Usually the argument is there that bigger organisations have more of advantages as per
globalisation in comparison to the smaller organisations and these are in better position of
engaging into this four phases. However this might not be true and various researchers have
contradicted this statement (Carp, 2014). The Global reach of internet helps the organisations,
either big or small to get to the Global markets in a quick manner.
It has been laid stress that site of its consequences to be good or bad, globalisation has both the
direct and mediating impacts on different organisations. These impacts involve socio cultural
factors which have influence on the behaviour of customers and therefore the organisational
Global marketing strategies are also impacted. The digital revolution that has changed and
brought enhancement into globalisation is changing the way in which corporations and
customers behave. Because of the revolution there has been a huge competition, drop in pricing,
creation of new simulated organisations, the individuals selling products to each other at low cost
because of elimination of the middle men (Steger & Wilson, 2012). In this stage of new retail, it
is highly significant that the organisations reveal that there in the favour of clients and they focus
on making the lives quite easier for their customers. This is the basis of Trust which companies
have to build when they turn out to be model for the new businesses.
Case study
ASDA Store Ltd is also known as ASDA, and is a public limited organization which has been
originated in Britain. It is connected to the retail segment and lifestyle industry because it is
dealing into retail industry. It is a subsidiary of Wal-Mart. It came up in 1949 and among 2003-
14 it was given a ranking of the 2nd biggest supermarket chain because of its huge market share.
There are lots of businesses which are in direct competition with ASDA (ASDA, 2019).
ASDA is one of the top retailers which have huge numbers of products to offer. The past
research shows that globalisation is assessable phenomena considerable in experiential aspects
which has been widened to include what some modern economists assume are better sign of
globalisation that is the signals of globalisation. So, globalisation means:
- The creation of a global village: The closer contact among various regions of the globe,
with enhancing possibilities of personal trade, mutual perceptive and kinship amongst global
citizens.

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- Economic globalization: “Free trading” and rising relationships between the members of an
industry in various areas of the globe, resulting in a wearing off of nationwide sovereignty in
the economic area.
- The negative impacts of for-profit MNCs: the use of significant and complicated legal and
financial way to avoid the limits of local rules and principles, so as to getting benefit from the
labour and services of unevenly-developed areas adjacent to one another.
Globalisation has become recognized with several trends, a lot of which might have been there
from World War II. These consist of more international movement of goods, money,
information, and individuals; and the expansion of technology, businesses, legal systems, and
infrastructures to let this movement. The actual existence of some of these trends is debated.
Globalisation has turned out to be well known with various Trends and most of these trends have
been there from the World War II. These trends involved the Global movement of products,
money, information, individuals point with the technology getting expanded, the organisations,
legal systems and Infrastructures also help in expansion of this movement. The enhancement of
International Trade at a Rapid pace has brought Global development. Since ASDA is part of
Wal-Mart organisation which has outlets all over the globe however it is for the first time that
ASDA will move for globalisation. By globalisation, this organisations Global marketing can lay
stress on leveraging the Assets of the organisation, its experiences and goods all over the world
and it would be able to adapt what is actually unique and different in every nation (Sirisagul,
2012). Therefore this will help us to recognise cultural Universal and innovative market
diversities.
3. Methodology
This research paper is descriptive and analytical paper with explorer tree type of data. The
descriptive kind of paper is to the level that it keeps track of the present trending of the retailing
business of ASDA. It is analytical because it looks into the analysis and effect of the
globalisation on the conisation. It is exploratory in nature because the continuous exploration is
there for looking into strategies for sustained growth of the organisation. For finding out the
impact of globalisation on the nation and its global Marketing strategies, this research will utilise
the data gathered by the qualitative approach, in which the literature review will be collected

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from electronic and physical the details of the organisation. On the basis of the typical model the
factors which can be evaluated like:
- indication of homogeneous behaviour of clients in global environment,
- impact of global marketing strategy and effective which deals with the understanding the
behaviour of customers of ASDA in the Global environment
- What influence do these have on the global marketing strategy of ASDA
Evaluation of ASDA’s Factors would build trust and reliability and the assessment will lead to
understanding regarding the changes brought by globalisation into the retail segment. The case
study of ASDA has been used in which the organization's growth and amendments have been
seen along with the globalisation. The impact can be seen through the changes in the profitability
and revenues of the organization and the news and journals have been utilised to understand the
growth of this organisation. In this research the PEST analysis of ASDA has been performed for
the understanding of impact of globalization of the business along with the recommendations
provided at the end.
4. Timeline of research activities
This time horizon for the research project is created for understanding the feasibility of the
project point in this the simple way of Gantt chart is when utilised for preparing the time
schedule for the research task find the activities of the research are segregated into time divisions
helping the researcher to accomplish the tasks in systematic manner. The Gantt chart is produced
the show the timelines of the proposed research:

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References
Carp, L. (2014). Financial Globalization and Capital Flows Volatility Effects on Economic
Growth. Procedia Economics And Finance, 15, 350-356.
Corporate.ASDA. (2019). Company Facts - ASDA Corporate. Retrieved from
https://corporate.asda.com/our-story/company-facts
Lemert, C. (2016). Globalization. Taylor and Francis.
Mejía-Vergnaud, A. (2011). Effects of globalization. Society, 41(3), 66-70.
Rohilla, A., & Bansal, M. (2012). Globalization in Retail Culture: FDI in Retail, Opportunities,
Challenges to Democratic Element in India. SSRN Electronic Journal.
Sirisagul, K. (2012). Global Advertising Practices. Journal Of Global Marketing, 14(3), 77-97.
STEGER, M., & WILSON, E. (2012). Anti-Globalization or Alter-Globalization? Mapping the
Political Ideology of the Global Justice Movement1. International Studies Quarterly, 56(3),
439-454.