Leadership and Operations Management Strategies in ASDA

This report provides a detailed analysis of leadership and operations management within ASDA, a major retail organization. It identifies key operational functions such as Six Sigma, continuous improvement, and Just-in-Time (JIT) inventory management, outlining the roles and responsibilities of managers in these areas. The report explains the value of these operational approaches, including appropriate production techniques, human and financial resource management, time management, and lean operations. Furthermore, it evaluates the impact of external business environment factors, using a PESTLE analysis to assess political, economic, social, technological, legal, and environmental influences on decision-making. The report suggests improvements in operational efficiencies through the implementation of contingency management theory and transformational leadership styles to enhance profitability, productivity, and employee engagement. The analysis concludes with recommendations for future improvements to be undertaken by ASDA to maintain its competitive edge.

LEADERS AND OPERATIONS MANAGEMENT
Page | 1

Table of Contents
Introduction to the key operations of the organisation....................................................................3
Details of each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions......................................................................................4
Explanation of the key operational approaches to operations management and their value...........7
An evaluation of the impact of external business environment factors that affect decision-making
by leaders and managers..................................................................................................................9
How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches....................................................................11
Conclusions and supported recommendations for future improvements to be taken by the
organisation....................................................................................................................................12
Reference List................................................................................................................................13
Page | 2

Introduction to the key operations of the organisation
Financial management, sales, marketing, operations management, customer service, research and
development, quality assurance as well as information technology are largely the core operations
of a business entity operating in the twenty-first century. Along with these basic operations, the
organizational management in ASDA is concerned with developing sustainability as it touches
all areas of their core management process (Asdasupplier.com, 2018). Whether it is decreasing
energy consumption, developing packaging system, tackling waste management, changing
transport procedure, ASDA is always looking for the best, sustainable ways to act. In this study
all the key operational functions within this organization along with responsibility of leader and
manager would be evaluated with supportive examples.
Page | 3

Details of each of the key operational functions, identifying the roles and responsibilities of
managers in the key operational functions
Key operational functions:
Six-Sigma
According to the statistical representation of the Six Sigma, performance level of an
organizational function is evaluated quantitatively (Sixsigmadaily.com, 2018). There are five
core stages through which a complete performance level analysis could be done effectively.
These five processes are define, measure, analyze, improve and control. As per the requirement
in this study, ASDA is focusing on developing higher level of sustainability more in their
organization (Asdasupplier.com, 2018). For this reason, they are applying Lean Six-Sigma
process in their business. Through this process, the operation management team in this company
is becoming helpful in many ways. They are able to reduce order fulfilment time for their
customers, helping in building a more responsive supply chain management process that is
capable of adapting to the changing needs of their customers. On the other hand, these processes
are useful in optimizing order fulfilment along with reducing waste. All these factors are
projecting the fact that, manager in this company is well responsive in communicating with the
operation management team in order to measure, monitor, analyze and controlling their present
supply chain management process (Schönsleben, 2016). Responsibility of the manager in
communicating the current requirement for Lean Six-Sigma process is effective enough to
exhibit their productivity and performance level. Communication process of managers in ASDA
is effective in delivering and conveying exact roles and processes that need to be taken while
undertaking a Six-Sigma evaluation model for rating success rate of present operation
management (Asdasupplier.com, 2018).
Page | 4

Figure 1: The Six sigma approach in ASDA
(Source: Sixsigmadaily.com, 2018)
Continuous improvement
Figure 2: The continuous improvement cycle in ASDA
(Source: Asdasupplier.com, 2018)
As per the above figure presented in this study for analyzing the continuous improvement cycle
in ASDA, it could be stated that management in this organization is effective enough to measure
streamline workflow, reducing project related costs and prevent overages, gaining flexibility.
The Lean improvement technique is helpful in saving more time and money along with
systematically working under management guidelines (Asdasupplier.com, 2018). The
Forecasting software is effective enough in delivering low cost project completion as well as
Page | 5

preventing overages. This method is helpful in introducing flexibility compared to the old
theoretical ways of project management. Through these descriptions, it is evident that project
manager as well as operation manger in this company is responsible enough in taking precise
decisions as well as goal setting. Precise decision making and Goal setting responsibility of the
manager in ASDA is focused through decisions in the field of cost management along with time
and work division included in their supply chain management (Asdasupplier.com, 2018).
Management is also efficient in setting short term goal for preventing overages and project cost
through continuous improvement process is appreciative.
Just-in-time (JIT)
The traditional just-in-time inventory management is a cost-reducing inventory method though
this could lead to stock outs. Main goal of this management strategy is to develop return on
investment by reducing non-essential costs of supply chain management in organizations.
Through this approach, the manager in ASDA provides a fruitful assessment of their financial
calculations and management (Kew and Stredwick, 2017) The operation manager in this
organization manages supply of raw materials for manufacturing goods as well as tries to reduce
costs related to supply, manufacturing, production, and delivering products to their customers,
just-in-time (The Balance, 2018). Through this entire management process, it is reflective that
responsibility of the operation manager in this organization effective enough in managing
financial as well as inventory cost levels involved their supply chain management. Through Just-
in-time approach, the project manager takes care about increment of inventory cost level and
how it is affecting the business profitability. The project manager suggests policies to tackle
deteriorating conditions if necessary.
Page | 6

Explanation of the key operational approaches to operations management and their value
The key operational approaches to operations management and their values are listed below,
Appropriate Production
The appropriate production technique is the initial requirement in the operational approaches to
achieve best results in operations management (textbook.stpauls.br, 2018). Through analyzing
some factors, an organization would be able to ensure appropriate production in their operations
management. These factors are identifying current level of demand, analyzing nature of current
market, comparative analysis of labour cost and capital, government rules and regulations and
main objective of the business. The operations manager in ASDA implements examination of all
the factors before selecting appropriate production method (Corporate.asda.com, 2018). Through
these steps, the production and operations management in ASDA become able to target trends
and assess demands of their customers and this process is helpful in achieving a more cost
effective supply management process in this company, which in turn is helpful in reducing
overall inventory cost in this organization.
Human and Financial Resource Management
Strategic human and financial resource management is an off-shoot of Strategic and human
resources management activities within organizations (Cascio, 2018). Effective human resource
management as well as financial management is helpful in achieving long terms goals of an
organization by reducing overall costing levels as well as increasing profitability of their
business. In ASDA, the operation management team follows effective strategies for managing
their cost levels and human resource management process as per the current requirement of the
organization and customers (Corporate.asda.com, 2018).
Time Management
The operation management team in ASDA follows six core time management activities in order
to manage and allocate all the important tasks to the concerned departments for achieving
effective and quick success in developing profitability and productivity (Corporate.asda.com,
Page | 7

2018). These six steps are defining all the activities, sequencing of activities, calculation of
required resources, calculating durations needed for all activities, developing and controlling the
project related schedule. All these steps are helpful in presenting a clear idea of tasks and
responsibilities required in the project. All these steps are helpful in achieving a cost effective
and efficient result from project management. This process is also helpful in reducing wastage of
time in the organization.
Lean Operations
Main contribution and aim of lean operations within organizations is targeted to produce best
possible quality output through utilizing the least amount of resources. Operations management
in ASDA is responsible enough for providing satisfaction to their consumers by introducing best
quality products as well as limiting other inventory and manufacturing costs along with using
limited resources as much as possible in production. Evidence of lean operation is the net income
level, which is around $13.643 billion as pert the financial analysis of 2017 (Corporate.asda.com,
2018). This net income level is reflective enough of their increasing profitability level as well as
productivity.
Page | 8

An evaluation of the impact of external business environment factors that affect decision-
making by leaders and managers
PESTLE analysis of ASDA is listed below,
Elements Analysis
Political Overall political conditions are stable In United
Kingdom, though there are talks about
developing government debt as well as
reduction of subsidiaries and implementation
of economic austerity programs in this country.
Though the former political position is
effective for ASDA, the latter one is affecting
for customer spending of this company as well
as in UK (Corporate.asda.com, 2018). The
latter political condition if persists for long
could affect the decision-making process of
leaders and managers in this company by
forcing them to change strategies.
Economic Current recovery from the financial crisis in
2009 affects on the employment level, which is
still low in this country along with an uncertain
consumer spending outlook
(Businessessays.net, 2018). All these points are
negative for ASDA’s profitability rate and
managers have to prepare plans for reducing
inventory cost level to cope up with this
situation in near future (Corporate.asda.com,
2018).
Social Customer satisfaction as well as quality
standards are the main concern in United
Kingdom as per sudden rise of living standards
(Muldrew, 2016). For achieving consumer
satisfaction level, this company needs to
produce goods that will reflect quality,
standard.
Technological Digital marketing, E-commerce as well as
online marketing are the main trends in retail
market as per the technological development.
ASDA needs to look for alternative ways of
promoting their products along with
Page | 9

developing flexibilities of online market
channels (Businessessays.net, 2018).
Legal Though ASDA is a legal business, there are
talks about misleading advertisements, using
suppliers through illegal employment practices.
If the management does not change their
concern in these matters, they could face
contingent liabilities in near future
(Corporate.asda.com, 2018).
Environmental As stated in the above part of this study,
ASDA is already concerned about
sustainability issue and this factor is quite
possible for their brand image and profitability
in future. Changes in the policies related to
sustainability could affect on the current
business policies of ASDA
(Businessessays.net, 2018).
Table 1: External business analysis
(Source: Businessessays.net, 2018)
Page | 10

How operational efficiencies can be improved to successfully meet business objectives using
appropriate management and leadership approaches
According to the above discussion regarding operational management and inventory
management of ASDA, it could be suggested that implementation of contingency management
theory would be effective in increasing profitability as well as productivity in future
(Asdasupplier.com, 2018). Effectiveness of contingency theory is listed below,
This theory reflects that organizational managers in ASDA should make decisions evaluating the
current situations at hand rather than a “one size fits all” method (Fiedler, 2015). The operations
manager, project manager as well as human resource manager in this company should take
appropriate actions as per the aspects that are significant to the current situation. The managers
need to manage inventory cost level as well as find strategies for implementing sustainability in
their company.
On the other hand organizational management should be careful in applying proper leadership
theory for achieving success in both internal as well as external business environment. The
proper leadership theory would be transformational leadership style (Nguyen et al., 2017).
According to this leadership theory, this kind of leadership in ASDA would inspire employees to
attain unexpected or significant results. This kind of leadership style would be helpful in
delivering employees autonomy over some specific responsibilities as well as the authority to
make decisions once they have been properly trained. This leadership style is helpful for creating
an effective employee engagement within their company. Through this leadership style,
employees would be benefitted as their efforts and responsibilities will be valued properly.
Managing internal workplace environment is equally important as developing profitability and
productivity level. Both the leadership style and management theory would be helpful in
achieving the aforesaid goals of this organization.
Page | 11

Conclusions and supported recommendations for future improvements to be taken by the
organisation
Therefore, this study is helpful in understanding the current as well as future concerns of ASDA.
The operation management is one of the core management processes in this organization, as well
as the strategic market position of ASDA is also cleared out through the previously attached
PESTLE analysis. All the information is bearing significance to managing as well as elevating
overall business approach of ASDA. On the other hand, future recommendations for this
company’s growth is explained below,
Being one of the leading retail organizations in the United Kingdom, this company should be
more concerned about implementing sustainability policies in their organization along with a
proper promotional campaign for consumer awareness. On the other hand, this company should
target to expand their business operations in emerging markets as soon as possible for achieving
more quick success in profitability. Additionally, this organization should implement Just-in-
time approach more effectively to acquire long-term business objectives in a more structured
manner.
Page | 12

Reference List
Asdasupplier.com. (2018). About Asda. [online] Available at:
https://www.asdasupplier.com/about-us/about-asda [Accessed 27 Jan. 2018].
Businessessays.net. (2018). Growth Strategies and PESTLE Analysis for ASDA –
BusinessEssays.net. [online] Available at:
http://businessessays.net/strategic-management/growth-strategies-and-pestle-analysis-for-asda/
[Accessed 27 Jan. 2018].
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Corporate.asda.com. (2018). Company Facts - ASDA Corporate. [online] Available at:
https://corporate.asda.com/our-story/company-facts [Accessed 27 Jan. 2018].
Fiedler, F.R.E.D., 2015. Contingency theory of leadership. Organizational Behavior 1: Essential
Theories of Motivation and Leadership, 232, pp.01-2015.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
Muldrew, C., 2016. The economy of obligation: the culture of credit and social relations in early
modern England. Springer.
Nguyen, T.T., Mia, L., Winata, L. and Chong, V.K., 2017. Effect of transformational-leadership
style and management control system on managerial performance. Journal of Business
Research, 70, pp.202-213.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Sixsigmadaily.com. (2018). Cite a Website - Cite This For Me. [online] Available at:
http://www.sixsigmadaily.com/lean-six-sigma-for-your-supply-chain/ [Accessed 27 Jan. 2018].
Page | 13

textbook.stpauls.br (2018). [online] Available at:
http://textbook.stpauls.br/Business_Textbook/Operations_management_student/page_20.htm
[Accessed 27 Jan. 2018].
The Balance. (2018). How Just-in-Time (JIT) Inventory Management Can Benefit Your Business.
[online] Available at: https://www.thebalance.com/just-in-time-jit-inventory-management-
393301 [Accessed 27 Jan. 2018].
Page | 14