Leadership and Management Strategies at ASDA Stores Limited

This report examines the leadership and management practices within ASDA Stores Limited, a major British supermarket chain. The report begins by differentiating between the roles and characteristics of leaders and managers, illustrating their application in various situations within ASDA. It then explores several leadership theories and models, such as situational leadership and contingency models, and analyzes their relevance within the ASDA context. Furthermore, the report contrasts the roles of leaders and managers by applying these theories, highlighting their impact on decision-making, risk-taking, and conflict resolution. The second part of the report focuses on operational management, examining key approaches and their role in achieving business objectives. It also addresses factors impacting operational management, including the business environment and decision-making processes. The report concludes with a critical evaluation of operational management and its influence on the wider business environment, providing insights into how leaders and managers can improve operational efficiencies and achieve business success.

Management
&
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Different roles and characteristics of leaders and managers .................................................1
b) Way in which role of a leader and the function of a manager is applied in different
situations within ASDA Stores Limited......................................................................................2
c) Theories and models of leadership approach within ASDA Stores Limited .........................3
d) Difference between role of leader and function of manager by applying theories and
concepts in respect of ASDA Stores Ltd.....................................................................................4
e) Strengths and weaknesses of different approaches to situations within the working
environment .............................................................................................................................5
f) Critical analysis of different theories and approaches to leadership ...................................6
TASK 2............................................................................................................................................6
a) Key approaches to operations management and the role that leaders and managers play......6
b) Importance and value of operation management in achieving business objectives................7
c) Factors within business environment which impacts operational management and decision-
making by leaders and managers................................................................................................8
d) How leaders and managers can improve efficiencies of operational management................9
e) Different factors affecting business environment and wider community............................10
f) Critical evaluation of operational management and factors impacting wider business
environment...............................................................................................................................11
CONCLUSIONS ...........................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management and operations are the two terms which can be considered as the backbone
for any organisation. Leaders and managers play a vital role in the management and various
operations of business. This report has been framed on management and operations of ASDA
Stores Limited. It is a British supermarket retailer which is having headquarter in Leeds, West
Yorkshire. It has become a subsidiary company of American retail company, Walmart. In
between the year 2003 to 2014, ASDA stores Ltd was the second largest supermarket chain in
retail sector. Besides this, primary business in supermarket retail sector. This company also
offers financial services and mobile phones by using EE network.( Arnold, K.A. and Loughlin,
C., 2013) Management operations is the area which considers designing and maintenance of
business strategies and operations. The basic objective of management and operations is to
maintain good human relation in business environment. It also considers developing
management skill among all employees so that they can manage various operations of
organisation.
TASK 1
a) Different roles and characteristics of leaders and managers
Managers and leaders are those individuals who have the responsibility for every task in a
business organisation. Their responsibilities start from acquiring raw material for the production
and end at selling and distribution of finished goods. Leaders and managers applies the actual
mind behind all these activities. (Baldwin, J.S., Allen, P.M. and Ridgway, K., 2010) The hard
work of workforce who are employed to convert the raw material into finished goods can’t be
ignored but management and leaders frame such strategies and imply such methods and
techniques so that the workforce can get better results with less efforts. Leaders and managers
both need to make targets and strategies to achieve those predetermined targets. Leadership is a
practical effort for the solution of direct efforts. (Barratt, M., Choi, T.Y. and Li, M., 2011)
On the other hand, managers need to assist employees on different levels to manage their
tasks. As per usual concept, leadership is the inborn quality of a person. However, managerial
qualities are those which a person learns through various situations which he faces. The very
basic difference between leadership and management is that leaders have their subordinates who
follow them. But on the other hand, managers have subordinates or employees who work for

them. Some people play the role of both; leaders and managers. This is the reason; it gets so
complex to make out any difference in them. If an owner of a business enterprise wants to make
his business a successful one, then he needs to be a good manager as well as a good leader.
Managers generally have task to react in front of surprising situations. It is their responsibility to
react in a positive way to the situations which arise during the course of business operations. On
the other hand leaders creates changes. (Brandon, C.J. and Mullan, P.B., 2013)
2

Leaders have the responsibility to find a new way to do any work. On the contrary,
managers have good ideas but the person who is responsible for implementing those ideas is the
leader. Generally, managers communicate their ideas to subordinates but on the other hand,
leaders pursue those ideas. In an organisation like ASDA stores Ltd., managers need to give
direction to the group of employees but in case of leaders, they build their team and then leaders
motivate and inspire them to take any decision and to do any given task. As ASDA is one of the
leading brand names in retail sector, it employs a huge work force. So, its management team and
leaders who need to fulfil the requirement of their duties so that ultimate business objectives can
be achieved.(Chin, J.L., 2010)
b) Way in which role of a leader and the function of a manager is applied in different situations
within ASDA Stores Limited
Managers and leaders have various roles and duties which they have to perform in a
business organisation. Management considers maintaining an entity's performance and its
standard in the market. However, leaders have predetermined goals in their mind so they find
new ways to get those objectives. ASDA has its stores at various places of UK which are 30%
bigger than the stores of its rivals. Further, ASDA Stores Ltd. offers more than 30000 products.
Because of maintaining such a huge working environment, everything needs to be in a proper
format so that each and every activity takes out the positive results.(Cho, J. and Dansereau, F.,
2010) So, the responsibility to manage such a huge supermarket chain is on the shoulders of
leaders and managers of ASDA stores Ltd. Role of leaders in various situations are as follows : Decision making: Decision making can be said as choosing the best alternative out of
given alternatives which is beneficial for a particular situation. The team of various
members can make different decisions which are beneficial for ASDA Stores Ltd.
Decision making is a time consuming process as it includes research over the situation.
After research, members of ASDA stores will need to find out various alternatives to
bring out the solution for situation. Once they get the required number of alternatives,
then they need to find the best alternative out of available options. The leaders and
managers of ASDA Stores Ltd. needs to find the best alternative so that they would make
the best decisions which will help them to achieve ultimate and predetermined objectives
and goals of ASDA Stores Ltd.(Dekker, R., Bloemhof, J. and Mallidis, I., 2012)
3

 Risk Taking: Managers and leaders need to take risk if they want to get success in their
task. Accepting the opportunities and making effective decisions against those
opportunities will provide the way to get success to any organisation. Expertise in
anything can’t be generated unless any person will not take risk. Leaders and managers of
ASDA Stores Ltd. need to take risk during the course of business. Solution of Problems: Managers and leaders of ASDA Stores Ltd. have the responsibility
to bring out solution for any problem. It is the responsibility of leaders and managers to
find out the best solution for problems so that its working environment can work easily
and without any complexity.(Haider, M.H. and Riaz, A., 2010)
 Management of Conflicts: Conflicts are the usual factors which arise during the course of
business but they can be a material aspect in destruction of any business. So, leaders and
managers need to find the solution for conflicts.
c) Theories and models of leadership approach within ASDA Stores Limited
A leader provides new and inspiring way to meet the various opportunities and to get
best and possible results from those opportunities.(Krajewski, L.J., Ritzman, L.P. and Malhotra,
M.K., 2013) There are various leadership theories and models which can be applied by ASDA
Stores Ltd. In their business process. These theories and models are mentioned below :
 Situational Leadership : This theory mention the concept of situation analysis. According
to it a leader needs to seek the information regarding the situation and after getting
information about situation. Leaders needs to find the way to deal with the solution.
According to this theory , the style to deal with the situation should be changed in
accordance with the situation. Situational leadership helps in developing working
environment as well as it also develops the personal skills of employees.
 System Leadership : It is basically an improvement model which is based on a concept to
understand the organisation system. Better understanding of the system of organisation
will assist leaders and mangers for framing the best strategies and to take best decisions.
To make the organisation process in systematic way, leaders also needs to manage their
leadership system. If leaders will provide guidance to their subordinates in a systematic
way then they can easily make their subordinates to bring out the best in them.(
Kuruppuarachchi, D. and Perera, H.S.C., 2010)
4

 Contingency model : This model of leadership deals in contingency which occurs in a
business environment. It is closely linked with the situational theory. It gives importance
to the skills and personality of a leader as well as it also emphasizes the situations in
which leaders deals. Contingency model contains two task, first one is task motivation
which means, leaders needs to motivate their subordinates for doing the task related to
business operations. And second one is Relationship motivation, it deals with
interpersonal relationship. A better interpersonal relationship among the employees helps
to remove conflicts and to reduce the stress. ASDA Stores Ltd. Needs and its leaders
needs to maintain contingency model to manage good interpersonal relationship and
motivational stuffs in business environment.(Lin, H.E. and McDonough III, E.F., 2011)
d) Difference between role of leader and function of manager by applying theories and concepts
in respect of ASDA Stores Ltd.
Role of leaders by implication of theories :
 Trait Theory : Trait theory deals with personal character of a person. It describes that how
a leader can react towards a situation and deals with it in his style. Trait theory is based
on the characteristics of various leaders. This theory actually deals with the personality of
a leader. Role of leader in ASDA Stores Ltd. as per this theory, is that a leader needs to
apply his own way and style to get out of the situation and to bring out the best results out
of it. Leaders of ASDA Stores Ltd. Possesses various qualities like good motivational
style and inspiring the subordinates with their own act.(Mayer, D.M., Kuenzi, M. and
Greenbaum, R.L., 2010)
 Behavioural Theory : This theory deals in implication of focus over the personal
behaviour of a leader. Behavioural theory gives influence over personal behaviour of a
leader in respect various situation which he faces during the course of business operation.
There are various leaders in the organisation who has different behaviour qualities.
Behavioural theory gives marketing potential to the leaders. Leaders of ASDA Stores
Ltd. Needs to bring out their potentials to get leadership success.(Morgeson, F.P., DeRue,
D.S. and Karam, E.P., 2010)
Function of leaders by implication of theories :
 Human Relation Theory : Human relation theory assist leaders for a better organisational
performance. Through using entity's managerial structure and its mechanism. Human
5

relation theory is all about motivation and inspiration. As per this theory the function of
leaders is to motivate his subordinates for removing the confusion out of their minds. As
well leaders needs to inspire them through the acts of themselves so that subordinates can
get the better give their best. Maintaining good human relation in ASDA stores Ltd. Can
help it to directly interact with the employees to remove conflicts.(Müller, R. and Turner,
R., 2010)
 Chaos Theory : Chaos theory can assist leaders of ASDA Stores Ltd. For the appropriate
functioning of the organisational activities. This theory shows that how numerous and
small changes can effect business enterprises to a great extent. It also assist the leaders to
find out effective to deal with the unwanted situations in a business environment.
e) Strengths and weaknesses of different approaches to situations within the working
environment
Leaders and managers of cited entity can use various theories, models and approaches to
deal with situations which arises in a business environment. These theories have certain strangth
and weaknesses. These are mentioned below :
 Trait Theory : Trait theory is describes its concept completely on the basis of personal
traits of a leader. There are certain strength and weaknesses of this theory, like trait
theory is based on personal traits of a leaders so it requires a lot of research over the traits
of leaders, so this theory gives some reliable results.(Salahuddin, M.M., 2010) This could
be classified as the strength of this theory. On the other hand the weakness of this theory
is its complex. Hence it gets hard to understand it and to perform in accordance with it.
 Behavioural Theory : This theory has the basic strength that it concentrates over
motivation and inspiration of subordinates by the managers and leaders. Because of this it
gets easier for an entity like ASDA Stores Ltd. To achieve their goals and objectives. But
it has certain weaknesses also. Predictions about the behaviour of work place is not an
easy task so its really gets tough to work in accordance with this situation.
 Human Relation Theory : This theory has certain strengths and is also possesses certain
weaknesses. By following this approach the managers and leaders of ASDA Stores Ltd.
Can get more equipped with tools of marketing by good human relation. But its weakness
is that it overemphasises the human relations on the cost of official operations.Morgeson,
( M.M., 2010)
6

 Chaos Theory : The basic strength of this theory is its scientifically approved. Which
makes it reliable and further this theory can easily be implied. In addition to this strength
the other benefit of this theory is its widely acceptable 21st century because of its
technological aspect. But its weakness is its parameters which are hard to get.
f) Critical analysis of different theories and approaches to leadership
Analysis of various leadership theories are as follows :
 Situational Theory : this theory has a concept which explains that leaders needs to get fit
in every situation which they faces in the modern world. The leaders needs to be very
acceptable. Leaders of an organisation needs to search various opportunities so that can
help to find the various alternatives to give solution for the organisational problems.
Leaders should observe each and every situation and then he should analyse the situation
accordingly. (Schyns, B. and Schilling, J., 2011)
 Contingency Leadership Theory : Through the implication of this theory ASDA Stores
Ltd. Can get success in various contingencies in the task of business operations. As per
this theory leaders needs to sufficient research over the various situation to find better
sources to deal with those situations. Flexibility of organisational structure is very
necessary so that it can be mould as per the situation. Research over contingencies will
help ASDA Stores Ltd. in long run.
TASK 2
a) Key approaches to operations management and the role that leaders and managers play
Various approaches to operation management are as follows :
1. Dynamic Approach : This approach can assist ASDA Stores Ltd. For management of
operations. It deals with some elements like solving the problems , learning, knowledge
and contingencies. (Sheu, J.B., 2010)Dynamic approach helps in improvise the efficiency
by the help of technology. It emphasizes technology. When the managers and leaders of
ASDA Stores Ltd . Go through all above points then that will help them to increase the
efficiency of their business. Further this will help organisation and its management to
accept the new situations and adaptation of these situation in business enterprise.
(Shondrick, S.J. and Lord, R.G., 2010) System Approach : ASDA Stores Ltd. Can get success in achievement of their
predetermined goals if they would opt for a systematic approach. This approach is
7

generally used to evaluate market elements which can impact the profitability of a
business. Evaluation of those elements allows leaders and managers of an entity to find
the better tools to deal with them, so the profitability wont get adversely effected.(Tayur,
S., Ganeshan, R. and Magazine, M. eds., 2012) Role of leaders in operation management : The main role of leaders in ASDA Stores
Ltd. Is to link and reconcile their personal goals with the goals and objectives of cited
entity where they work. They need to frame such strategies so that they can achieve their
personal goals as well as the goals of ASDA Stores Ltd. Can also be achieved.
Operational management depends on the work of leaders and managers. If they work
efficiently then that will ultimately effects the working condition of ASDA Stores Ltd.
 Role of managers in operation management : There is a vital role of managers in
management of operations. Managers of ASDA Stores Ltd. Needs to do a lot of job in an
enterprise. Managers of ASDA Stores Ltd. Needs to find the better sources of finance
which are cost effective. Further they have responsibility to manage them and also they
need to frame such strategies through which they can exploit the financial resources of
cited entity.(Ward, J. and et. al., 2010)
b) Importance and value of operation management in achieving business objectives
Importance of operation management in achieving business objectives : Now a days
management of operation has become very different. It is a set of various elements which
includes planning, organising, leading and controlling of organisational objective. As all the
important aspects are comprised in management operations. So it clearly visualize the
importance of operation management in business environment. It is factor which can lead an
organisation to achieve the immense success but if it has been ignored then it would lead to a
complete destruction. Earlier it was believed that operation management is important for
manufacturing industry. As in manufacturing industries there are a number of processes. So this
belief was supported with this fact that manufacturing industries has numerous processes like
obtaining raw material from supplier and then converting that raw material into finished goods.
The process not ends here. It continues till selling and distribution of finished goods to
customers. But now there are also numerous processes in other industries also like service
industry and retail industry. Hence it can be said that operation management has importance in
8

an entity irrespective of industry from which it belongs.(Wilson, K.S., Sin, H.P. and Conlon,
D.E., 2010)
Value of operation management in achieving business objectives : For the
achievement of goals and objectives of ASDA Stores Ltd. Leaders and managers as well as their
subordinates which means other employees of organisation also needs to follow the norms of
operation management. Operation management secures a high value in ASDA Stores Ltd.
Through operation management leaders and managers can get better resources for finance.
Operation management has two objectives which are utilization of organisational resources and
customer service. ASDA Stores Ltd. Has the main objective of customer service. Because it
doesn't worth if strategies are formed properly and plans are executed efficiently but customers
are not satisfied. For the generation of revenue and increment in profitability satisfaction of
customer is necessary. So operation management concentrates over customer satisfaction. And
the other objective of operation management is to utilize the financial resources in an efficient
way. Further it concentrates over cost effectiveness of financial resources. Better utilization of
financial resources helps an entity to make correct investment in projects.(Wong, C.A. and
Laschinger, H.K., 2013)
c) Factors within business environment which impacts operational management and decision-
making by leaders and managers
There are certain factors in a business environment which makes impact over the working
efficiency of operational management. (Hong, P. and Modi, S.B., 2011)Those factors also effects
decision making of leaders and managers. Some of the factors are described below :
 Internal Factors : it includes various factors which belongs from entity itself. The
important aspect about internal factors affecting operation management is that they can
get controlled with effective strategies and plans. Internal factors like organisational
structure of management and staffing impacts decision making. Further funding, financial
resources and its utilization can also impact operation management and decision making.
Further financial variables also influences the decision making and operation
management(Haider and Riaz, 2010). Elements like sources of income and investment
opportunities are some factors which can impact the decision making process. As if an
organisation cant get a better source of finance then managers and leaders needs to
implement such financial resources into such project through which they can get return
9

which can cover the initial cash outflow through its regular inflow and also it can cover
the cost of finance.
 External factors : These factors comes from outsides so it gets tough to manage them.
Hence these factors has been given more importance. So these factors can make a
significant impact over decision making and management operations. Suppliers are the
external factors which impacts business operation and decision making. Industry acquires
raw material from suppliers. So if they provide raw material of best quality in affordable
price then that would be helpful in generation of better revenue. Competitors are the other
external factors which influences decision making. Leaders and managers through
making strategies in operation management can get over the competitors(Dekker,
Bloemhof and Mallidis, 2012). ASDA Stores Ltd. can frame such policies through which
they can provide best products and services to its customers. This will remove
competitors from the race which will help the ASDA Stores Ltd. To acquire huge market
share in target market.
d) How leaders and managers can improve efficiencies of operational management
Leaders and managers improves the quality of operation management in an entity.
Leaders can make team and motivate them to get the task done in the right time and with the
right quality. Further they can inspire them through their activities. All the employees and the
employers need to follow a certain guidelines so that the business objectives could be achieved
easily. Further co-ordination is very usual aspect in an operation management. As co-ordination
brings faith and loyalty in mind of workers(Cho. and Dansereau, 2010). If good human relations
are maintained by leaders and managers of an organisation then it will become possible for an
entity to achieve its goals and objectives. As because of good human relation in business
environment it will become easy for employees to interact with their superiors. Further it also
helps to get perfect result for their solution. The employees of ASDA Stores Ltd. Can get interact
with leaders and managers easily if it maintains good human relationship. Further leaders and
managers are responsible for many other work in cited entity. By operation management leaders
and managers of ASDA Stores Ltd. Can maintain the quality of its products and services which
will help an entity to achieve the goal of customer satisfaction. Leaders and managers needs to
make proper decisions regarding selection of financial resources so that they can get financial
resources which are cost effective. Further they are also responsible for better optimization of
10

financial resources(Chin, 2010). As if they apply the financial resources in the project which can
give the better results then it would be considered a better choice. Further they also have the
responsibility managing the process of acquisition of raw material and selling distribution of
finished goods.
e) Different factors affecting business environment and wider community
There are certain factors which affects business environment and wider community.
ASDA Stores Ltd. Can go for PESTEL analysis for the analysis of factors affecting business
environment. These factors are mentioned below :
 Political factor : The government policies, taxation policies, instability of government
affect the business objection. The organisation have to make rules and regulation
according to government policies to satisfy the customer needs and wants.
 Economic factors : Economic factors like fiscal policy, monetary policy, inflation, and
recession are few factors which can make impact over business environment. ASDA
Stores Ltd. Needs to concentrate on such economic factors to manage its business
environment effectively.
 Social factor : The main social factor which affect the business entity is that they have
increase the diversity for the consumer. health consciousness and other factors which are
directly related with the society are some of the factors which influences business
environment(Brandon and Mullan, 2013).
 Technological factor : ASDA Stores Ltd. Needs to concentrate over technological
factors . As the consumers are now become technology freak hence ASDA Stores Ltd.
And its leaders and managers needs to concentrate over bringing out the best
technological updates in their products.
 Legal Factors : ASDA Stores Ltd. Needs to frame such policies which are in accordance
with the legal policies of the country. If any policy of ASDA Stores Ltd. Gets contradicts
with the legal policies of the legislation then in that case the reputation and goodwill of
ASDA Stores Ltd. Will be affected adversely.
 Environmental factors : ASDA Stores Ltd. Has its responsibility towards the environment
also. As everything which ASDA Stores Ltd. Uses belongs to the environment and
society. Hence if the ASDA Stores Ltd. Misuse the environment and makes adverse
11

impacts over it(Barratt, Choi and Li, 2011). Then this will leads to revocation of its
license to exist in business environment.
f) Critical evaluation of operational management and factors impacting wider business
environment
Operation management is area of entity where leaders and managers needs to do a lot of
work. Like they need control the process of production as well as they also need to redesign the
process of managerial operations. Leaders and managers of ASDA Stores Ltd. Requires to do
such acts so that the sales of ASDA Stores Ltd. Gets increased which leads to high revenue and
high profitability. Financial cost refers to the cost of financial sources which are used by ASDA
Stores Ltd(Baldwin, Allen and Ridgway, 2010). To carry out its operations. Financial cost is one
of the crucial factor which impacts operation management and wider business environment.
Leaders and managers has the duty to find cost efficient financial resources. Leaders and
managers has to use appropriate models so that quality of working environment and good human
relations can be developed in business environment. As these are some other factors which
induces the business environment.
CONCLUSIONS
From the facts and concepts mentioned in above report, it can be concluded that leaders
and managers are the two elements which carries out different task. And they have certain
responsibilities of business which needs to carry out effectively. Otherwise that could be the
reason of destruction of an enterprise. Further it can be observed from the above report that by
applying the concepts behind various theories like situational theory, contingencies theory, chaos
theory and human relation theory. ASDA Stores Ltd. Can get the results which they want.
Further this report also explains the factors which influences an organisational structure and it
also provides the techniques and methods through which leaders and managers of ASDA Stores
Ltd. Can get rid of such factors.
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