Strategic Management and Leadership in ASDA: A Comprehensive Report

This report examines the intricate relationship between strategic management and leadership, using ASDA as a case study to illustrate key concepts. It explores how strategic decisions, influenced by various leadership styles and management theories, impact ASDA's operations and market position. The report delves into the significance of effective leadership in implementing strategic plans and achieving organizational goals. It analyzes the impact of different leadership styles, such as democratic and transformational, on employee motivation and decision-making processes within ASDA. Furthermore, the report discusses the application of theories like contingency, systems, and behavioral theories in shaping ASDA's strategies. The analysis also covers methods for reviewing leadership requirements, such as 360-degree feedback and GAP analysis. The report concludes with a development plan to meet ASDA's future requirements, emphasizing the need for adaptable leadership and strategic alignment to overcome challenges and drive success.

STRATEGIC
MANAGEMENT AND
LEADERSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1...........................................................................................................................................1
1.2...........................................................................................................................................3
1.3...........................................................................................................................................4
TASK 2............................................................................................................................................4
2.1...........................................................................................................................................4
2.2...........................................................................................................................................5
TASK 3............................................................................................................................................6
3.1...........................................................................................................................................6
3.2...........................................................................................................................................7
TASK 4............................................................................................................................................8
4.1...........................................................................................................................................8
4.2...........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The decision making of the corporates are purely based on the formulation and
implementation of initiatives taken by the top management. In order to attain strategic
management, leaders play a crucial role to make plans. The analysis of market situations is done
where the firm evaluates the pros and cons of practical conditions. However, the company takes
initiatives to implement the strategies which lead to attain organizational goals and objectives of
the corporates. In order to gain the subject knowledge, ASDA is taken into consideration. The
cited is a supermarket chain of different stores which includes variety of products. The renowned
corporate is also known for its fine services in the financial sector. The present document is
prepared with the purpose of defining the link between strategic management and leadership.
Simultaneously, it is going to depict the impact of strategic decisions on the environment of
ASDA. Further, a development plan is prepared to meet the future requirements of ASDA.
TASK 1
1.1
Strategic management plays an essential role in decision making and formulating plans
and strategies for the companies. The cited process provides assistance to the corporate to
evaluate the needs and requirements of market. In addition to it, a firm can make comparisons of
strengths and weakness with the help of strategic management. It leads to attain company’s
objectives. On another side, leadership is considered as the most required tool in the
organization. With the changing time and technologies, the operations of companies are also
diversified. In order to meet the same, the establishments require effective leadership. It assists
companies to manage and attain its team goals. For the same, the leadership pipeline model has
been taken which helps a leader to develop him by using six leadership transitions (Hill, Jones
and Schilling, 2014).
The two stated terms i.e. strategic management and leadership are interlinked with each
other. To run corporates effectively, it is crucial to make a balance between leadership and
management.. It is seen that strategic management includes various acts such as setting goals,
evaluating strategies and identifying the competitive market. However, the process is based on
forming plans and strategies. In context to it, setting plans is not only required but implementing
the same is crucial. For the same, effective leaders are essential who can make theoretical plan

into practical implementation. In different situations, some leadership practices are required
which assist the management to get the things done. The management is required to make sure
the use of appropriate leadership so that it can remain helpful for the firm (Goetsch and Davis,
2014).
Illustration 1: Leadership pipeline model
(Source: Stead and Stead, 2013).
For an instance, the strategic decision taken by the top management of ASDA are further
implemented by the leaders. In this company, there are various departments like accounts,
billing, operations and recruitment and staff development. However, the top management of
cited firm has planned to open a new departmental store. For the same, the company requires
different resources and support of employees. At this point, the firm needs to have leaders who
can accomplish the work by employees. For example, at operational level, an autocratic leader is
required because the subordinate of this level has to adopt the decision taken by the top
management. . In addition to it, at middle level the cited firm needs to have a leader with
democratic style because middle level manager are important for the company. The top
management of ASDA requires leader who can help its team members (Rothaermel, 2015).
1.2
To attain strategic decisions making of the firm, management and leadership styles plays
the most important role. The significant decisions have been made by keeping in mind the
expectations of the company. However, the stated plans and policies are always adopted by

employees of the company. At ASDA, use of different styles leaves various impacts on the
strategic decisions of the firm. For an instance, if the company adopts democratic leadership it is
necessary to consult and discuss the opinions of other employees of the firm. It would help the
organization to increase in motivation level of staff of the cited firm. In addition to it, the
strategic manager of the firm is responsible for the critical decisions in relation with the future
context. Both management and effective leadership help the company to grow and expand at the
global level. The vision of managers and leaders leaves a great impact on the performance of
ASDA. However, using appropriate style plays an important role in decision making of the firm.
Therefore, the firm must adopt effective styles which changes with the situations (Swayne,
Duncam and Ginter, 2012).
1.3
To cope up with different situation, the management of the company needs to adapt
required styles. It should be in a way that helps employees to get proper direction and
motivation. At ASDA, various leadership and management styles have been adapted by the
organization. The company has mainly adopted democratic style of management and leadership.
The cited firm has different retail stores which are required to be managed effectively. The top
management of the organization aims at making good relations with the whole staff. The adopted
leadership of the company has the capability to understand situations and take corrective actions
for the same. For an instance, the stores of ASDA remains open for late where the employees are
required to perform their duties Hitt, Ireland and Hoskisson, 2012).
In addition to above, there may be some situations where the staff may feel hesitate to
attain operations at the stores. It is seen that the managers of the cited firm supports the staff
which leads them to feel motivated. It has also analysed that the middle manager of the cited
company provides assistance to employees in form of providing relaxations. It helps the workers
to gear up their interest towards the operations of the company. However, the success of the firm
is dependent upon how the staffs work. Their hard work and sincere efforts assist the company to
achieve its goals and objectives )Vaccaro and et.al., 2012).

TASK 2
2.1
The mission and vision of ASDA is to respect the interest of individual customers and
serve excellent services to the customers. In addition to it, the management of the company
forms such strategies that remain useful to achieve the mission and values of the organization. In
order to achieve the same, the cited supermarket needs to adopt effective leadership and
management theories which aids in setting organizational strategies. Certain leadership and
management theories are stated below which can be adopted by the company.
Contingency theory: As per this management theory, the decision making is done on the basis
of present situation instead of taking common measures. However, ASDA is a big supermarket
where it includes various stores. The managers of the firm takes decisions in accordance with the
current situations of the individual store. It assists the company to get reasonable returns from
various departmental stores (Davies, 2004).
System theory: The motive of this theory is to determine the impact of working environment on
the workers. However, system consists of different departments with people of different
backgrounds. With the use of this theory, the manager of ASDA examines the tasks and events at
the company. It assists the manger to manage the operations to attain overall mission of the firm.
Transformation theory: It is a leadership theory which helps in implementing the high level of
motivation in the working environment. According to it, the leader with this style involves the
ideas and suggestions of the team members. It helps the employees to increase their interest and
integrity towards the organization. ASDA focuses on providing innovative products and services
to the consumers. For the same, they need to have transformational leaders who involves the
ideas of employees.
Behavioural theory: As per this theory, leaders can be made, rather than are born. With the use
of this theory, the company can analyse the behaviours of its employee which will help the firm
to achieve its organizational objectives. All these theories will leave varied impact on the
organizational strategies. With the consideration of contingency and situations theory, it will help
the company to achieve its goals and objectives. However, it will also assist the managers of the
company to control working of the cited firm. It can be concluded that with the changing
situations, the use of different theories is essential to grow the company (Maddalena, 2012).

2.2
ASDA is one of the leading supermarket in UK which has several stores in different parts
of the world. The cited firm has gained good number of market share with the help of effective
leadership. It helps in providing defined direction to the company. In addition to it, the
organization is diversified in the different parts. But it is seen that the cited organization is facing
the decrease in the sales. There may be different reason behind decrease in the sales of company
such as hiring wrong people, minimal sales training and unrealistic forecasting. To overcome the
issue of sales the cited firm needs to adopt effective leadership style that can help the company to
resolve the stated issue. In order to resolve the problems faced by the company it is important for
the firm to change its leadership style. It leads to offer appropriate direction to the company and
its staff. It has been stated above that the operations of firm may get affected by the use of
different leadership styles (Sikavica, 2015).
The company is going through the issue of decrease in sales. However, the management
of the firm needs to adopt a leader with transformational leadership theory. Adoption of the cited
theory will result into achieving the goals and objectives of the company. In context to it, it can
also remain fruitful for the manager of all the branches to analyse the problems that has been
raised. It allows individual to get motivated and hike their interest towards the firm. In addition
to it, the cited firm will also be able to maintain a level of discipline at workplace. With the use
of appropriate style, the employees will be aware of positions and designations where they will
also be known with their responsibilities. Therefore, the use of particular style will may be odd
but it is required for the particular situations. Proper implementation of the same is the most
important task to be done by the company.
TASK 3
3.1
In order to attain the goals and objectives of the company, it is essential to have skilful
and talented leaders that can work effectively. In addition to it, having such leaders can motivate
the workforce so that the goals and objectives of the company can be achieved. An effective
leader requires having effective vision towards future of the company. It leaders the cited firm to
grow and expand itself in those parts where its stores are not there. In order to review the
leadership requirements, it is necessary to adopt different method. It will help the firm to analyse
the impact of various leadership styles (Stead and Stead, 2013).

360° feedback: This technique can be useful for the cited organization in terms of taking
feedbacks. The motive behind using this technique is to analyse the strengths and weakness of an
employee or a group of the ASDA. This process may include self assessment questionnaire that
helps in knowing the perception of the individuals. This approach will assist the company to
resolve the weakness of the cited firm (Carmeli, Tishler and Edmondson, 2012).
GAP Analysis: this can be considered as the useful method that can be adopted by the
management of the mentioned company. It can provide an assistance to the company to review
all the theories and leadership styles. In this method comparison of actual performance with the
standard ones is done. If any deviation found between the actual and set performance then the
management of the company will be required to take corrective actions. It can help the company
get its desired objective efficiently.
McGregor's Theory X and Theory Y- An organization can follow this Theory X and Theory Y
to review the current requirement of leadership. In theory X, authoritarian type of leadership
style is being adopted by the management of the company where tight control and no
improvement of worker is seen. Because of this style, employees feel very neglected and are
usually seen depressed On the other hand in Theory Y, there are very liberating and
developmental type of control. Needs and wants of people are fulfilled in appropriate manner.
There is continuous achievement and development in company that empowers the culture of
giving responsibility to employees.
In addition to above para, reviews can be taken with the help of communication with the
employees. In order to ask for interaction, the management of the cited firm can conduct the
sessions where they subordinate and managerial authority can express their ideas and views. It
can help the management of the company to know the perception of the other staff members.
3.2
It is a characteristic of a good leader that he needs to get ready for the future challenges.
In addition to it, a leader must able to get innovative ideas and thoughts so that the pros and cons
of the situation can be analyses effectively. It is seen that time never remains same it changes.
However, the cited firm may face issues and problems with the changing time. For the same the
company is needed to deal with the future situations that can happen. In addition to it, there are
situations which are stated below that may occur in future at ASDA (Stead and Stead, 2013).

Decrease in sales: It is seen ASDA is facing the issue of decreasing sales from last year.
However, it may have different reasons behind the fall of sales. The demand of the products is
tended to decrease which result into decrease in the profitability of the company. In addition to it,
decrease in sales can affect the market share of the cited company. To overcome this issue, the
firm needs to take effective measures so that the problem may solve effectively. For this the firm
can hire talented and skilled people who can help the company to grow. The company needs to
analyze the real market condition and on that basis the cited organization needs to have talented
employees.
Merger and Acquisition: On the basis of current position of the company it may happen that the
firm may get merged in order to enhance and improve its operations. It may remain a tough
decision for the company and for the same it is necessary to make proper calculations and
evaluation of the current market conditions. Adopting the appropriate process of evaluation can
result into overcoming the issues and problems.
Recession- The operations of the company may get affected due to the another scenario i.e.
recession. It is a major issue that is being faced by UK which left worst impact on the corporate.
In order to overcome the same, it is essential for establishment to manage and properly analyses
its budgets from all the corners. In the difficult times, democratic leadership style will aid the
cited organization where the leader will be capable to control the operations with clear and
appropriate policies (Stead and Stead, 2013).
Adaptation of new technology- IT is the most important step that the cited firm is required to be
taken because of its bad performance at global level. The management needs to take corrective
actions in order to improve its current technologies. The organization needs to adapt the
innovative ways which can remain useful for future context. It can also happen that the
subordinates may not be able to work with the advanced technology as they resist to change.
However, the company needs to provide training to the employees so that they can leader the use
of innovative technology. In this case, organization can go for transformation leadership theory
as it will permit direction to change perception of people so that they will be able to accept the
changes.

TASK 4
4.1
In reviewing the current case scenario, The leader needs to prepare himself for any
unfavorable circumstances such as decrease in sales, recession, mismanagement, increase in
work load, etc. So leader plays integral role in guiding and directing the employees of the
company so they should be efficient in accomplishing their roles and responsibilities. ASDA
may undergo many changes in the organization system and practice and leader plays important
role in reducing the resistance level of employees and helping them in adjusting to dynamic
environment. So leader should consistently work on to improve its leadership skills by
undertaking following tools and techniques as given below:
 Self help technique- Leader acts as a bridge between the management and the staff
member so they should possess the quality of dictating the strategies and its
implementation in such a way that the employees are convened by the leader, further they
should guide and motivate the workforce to reduce the percentage of resistance among
the workforce. These skills can only be improved by adopting self help technique in
which they can analysis the strengths and weaknesses as a leader and should work on it to
overcome the weaknesses. They can also take the feedback from the team members and
can also realize his or her mistake. He or she should consistently monitor the work
performance of the employees in order to improve it (Akingbola, 2013).
 Job-rotation- It is one of the method that assist the leader in developing desired
leadership skills. In this method, the leaders needs to hold expertise in many fields and
should have enhanced knowledge of different areas and sections. So in this method, the
leader should himself take initiative to participate in different activities to expand his
knowledge base so can guide the team members in the better way and can be considered
as the ideal person for them. It will help the leader to improve his personal and
professional skills. Executive coaching- The leader can request the higher department to provide executive
coaching to him. The executive coaching is the one to one relationship between a
professional coach and the leader in which the professional coach will analyses the areas
of loopholes and will provide training to the leader to overcome the weaknesses. The

goals of this coaching is to improve organizational performance along with developing
the skills of a leader. It will help the leader to manage the stress and will be able to take
viable decision for the team.
 Seminars: the leader can attend the seminars that will help him to discuss out his
weaknesses with the expert and come out with ways to improve those weaknesses. It will
assist him to enhance knowledge regarding coordination and corporation among the team
members.
4.2
To overcome the above stated issues, the management of the cited organization needs to
adopt different leadership skills. With the changing time, the organization requires coping up
with the situation. In order to overcome, the company must adopt certain methods and techniques
so that the leaders of the company can build required skills. In above para, certain methods have
included such as job rotation, seminars, self help techniques and executive coaching. However,
using these methods has helped the management of the cited firm. The managers of ASDA can
set benchmarks in order to implement the changers. In addition to it, adoption of self help
technique can remain fruitful in terms of individual employee. It can assist them to review what
are they doing and what they are required to be done. It can also assist them, to analyze their
performance and can also improve the same. It will force them to learn from their mistakes from
different perspectives (Akingbola, 2013).
Using seminar and workshop will allow the top management of ASDA to interact with
the lower level employees of the firm. It leads to develop the listening skills of the mangers of
ASDA. In addition to it, the manager of the firm will be able to develop coordination and
integration with several departments. In context to it, job rotation will assist the employees to
learn variety of work. The task and operations of individual will get changed with the change in
job. It can make an individual diversified into varied areas and fields. Adopting all these
techniques will assist the management of ASDA to work effectively with the help of employees.
At last, executive coaching can remain helpful in enhancing the skill of critical thinking. It will
aid the manager to understand the working environment of the cited organization. In addition to
it, with the use of all these methods, the firm will be able to attain its goals and objectives. It will
also help the firm to increase market share (Keupp, Palmié and Gassmann, 2012).

CONCLUSION
It can be concluded that Strategic management and leadership plays crucial role in the
success of an organization. Manager and leader analysis of the internal and external environment
and helps in designing SMART objectives for the organization. The leader adopts situational
leadership style in which they adopt combination of leadership style as per the situation and
circumstances. The management have adopted different method to review the requirement of
current leadership. The leader needs to keep themselves prepared for any future uncertainty by
undertaking method to develop their leadership skills.