Strategic Management Report: ASDA Case Study and Analysis

This report delves into the realm of strategic management, emphasizing its pivotal role in fostering competitive advantages for businesses. It outlines the strategic planning process, detailing the crucial steps involved, such as defining a vision, gathering information, implementing tools like PESTLE and SWOT analyses, formulating strategic plans, executing them effectively, and continuously monitoring performance. The report uses ASDA, a prominent UK retailer, as a case study to illustrate the practical application of these concepts. It provides an in-depth evaluation of PESTLE and SWOT analytical tools, highlighting their significance in assessing both the internal and external business environments. The report also explores the importance of change management within corporate settings, emphasizing how tools like PESTLE and SWOT are used to identify the need for change. Through the analysis of ASDA's strategic approach, the report underscores the importance of adapting to external factors, leveraging internal strengths, and mitigating weaknesses to achieve sustainable success in the competitive retail market. This comprehensive analysis equips readers with a solid understanding of strategic management principles and their practical implementation.

Strategic Management

Table of Contents
INTRODUCTION......................................................................................................................5
MAIN BODY.............................................................................................................................5
Process to Determine Strategy................................................................................................5
Evaluation of Models and Tools.............................................................................................7
Application of tools................................................................................................................8
Importance of change management......................................................................................11
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
Strategic management plays very effective role in an organisation, because with the
support of strategic management a company or business can easily gain huge competitive
advantage in market (Mkansi and Nsakanda, 2019). The top-level management within each
company should take various steps towards effectively managing strategies in their business
environment. There is strategic management is too necessary in developing or innovating
different new business strategies. Currently almost all companies are investing huge fund for
properly managing strategic management in their daily operations. This report discusses
process which used by organisations to determine various strategies. Evaluation of different
tools and models also has included in this report which uses by various organisations to
determine their strategy. There are PESTLE and SWOT analysis of ASDA also has
mentioned in this report. ASDA is one of the most popular retail companies in the United
Kingdom. These are PESTLE and SWOT basically analytical tools which used by different
businesses or companies to analyse their internal and external environment.
MAIN BODY
Process to Determine Strategy
Top-level management of Asda has always required to choose a specific process to
determine their strategy. This process which different companies for determining strategy are
also known as strategic planning process. According to concept of planning process, existing
management within Asda need to prepare a productive plan for properly managing strategies
in their business environment (Ferreira, Fernandes and Ratten, 2016). There different steps
have included in this process which company need to use for determining their strategy. This
whole process has been discussed below;
Write a Vision Statement
This is the first step within process of determining strategy. In this step, management
of company has required to identify their main vision and mission behind development of
strategy. It is too necessary task to the company, because vision is a base of each business
strategy. Without a specific vision, business strategies are completely useless (Mankiw,
2016). By identifying actual vision, existing management of company is able to prepare a

specific plan to achieve their targets. In this situation, there is determination of strategy is the
main target of company.
Gather Information and People
After identifying vision, now management need to collect various resources to run
process towards developing strategy. There is gather people and information is second step
within this process, where management has highly required to collect various productive
information regarding to determine strategy from different sources. On the other side, it need
to organise a group of people or employees as well for this target (Downs, 2018). There is
main target of company is to prepare business strategies, so it highly need to some skilled and
talented employees in their business environment. The management is responsible to cover
this step in proper manner.
Implement Tools
Implementation of different useful models and tools the third step within this process.
Each business or company always need to use these tools to systematically determine various
strategies. There are various innovative tools and models are available to the company, like
PESTEL analysis and SWOT analysis (Rogers, 2018). These tools are very helpful to the
Asda to analyse their internal and external environment. Analysis of internal and external
environment is very important task to this company, because without analysis Asda can’t
properly determine their strategy.
Formulate Strategic Plan
After implementing various tools and models, the management need to formulate a
strategic plan. This is one of the most important steps within plan, because a strategic plan
always should effective, otherwise company can’t systematically determine strategy (Tench
and Topić, 2017). During this step, management should take advice from some business
experts, because with the support of expert advice the management is able to prepare a
productive strategic plan.
Execute Strategic Plan
In this step, top-level management of Asda need to properly execute their strategic
plan. Execution of strategic plan is the main step within this plan, because existing
management has required to systematically supervising whole procedure of execution of

strategic plan (Heath, 2018). During execution, the company need to use some highly
qualified employees, because company can easily execute a strategic plan through these
employees. In this step, company is capable to properly determine their strategy.
Constantly Monitor Performance
After executing strategic plan, next step is to monitor performance of their strategic
plan. This is too necessary task to use all business strategies in proper manner. When
company constantly monitor performance, then it will able identify major weaknesses and
strengths of their strategic plan. This step of process gives opportunity to company for more
improving their strategy.
Evaluation of Models and Tools
An organisation has always required to use different models and tools in process of
determine strategy (McMillan and Overall, 2016). There are various tools and models
available to a business or company to which can support to properly conduct process of
strategic management. PESTLE and SWOT analytical tools plays very effective role in Asda,
because these tools help in determining their strategy. Without these tools and models, a
company can’t develop various business strategies. Reason is these tools supports in
analysing internal and external environment of company.
PESTLE analytical tool, this is very important tool to Asda, because providing facility
to identify major factors of external environment. PESTLE basically includes six factors
called political, economic, social, technological, legal and environmental etc. These are major
factors of company’s external business environment which highly influence Asda in both
ways positively and negatively (Jones and Comfort, 2019). When a company wants to
develop some business strategies, in this situation that company has highly required to
analyse their external factors. These factors which has included in PESTLE affect business
operations of company, so existing management need to develop strategies according to
impact of these factors. For example; according to social factors of the United Kingdom,
local people are here always like to buy product and services from those companies or
businesses which time to time fulfil CSR (corporate social responsibility). In this situation,
management is responsible to consider this factor during developing various business
strategies. It needs to develop strategy relating to CSR, because this step will help to
company for positively influencing people in this country. That’s why this analytical tool
plays great role in determining strategy.

SWOT analytical tool, this is another important tool in terms of determining strategy.
Each company or business always needs to conduct this analytical tool while developing or
innovating different business strategies (Grant and Baden-Fuller, 2018). These all steps of
management completely come under strategic management. With the support of this
analytical tool, company is able to analyse their major factors of internal business
environment called strengths, weaknesses, opportunities and threats. Most businesses always
prepare their strategic plan on the basis of these factors. For example; currently Asda has
large customer base in the UK’s retail industry, it is one of the major strength of company. In
this situation, management enable to make some such strategies which can help in taking
huge advantages from this strength. Currently companies are taking many advantages from
this analytical tool. This tool highly supports to Asda in gaining huge competitive advantage
in this market. Reason is, SWOT analysis includes threat factor which always shows major
competitors of company. Top-level management has always required conducting this
analytical tool in each specific time period. This is necessary task to company for making
some effective business strategies. On the other hand, this tool gives opportunity to company
for increasing its performance level in the retail industry, because tool includes one factor
called opportunity. With the analysis of opportunity factor, company enables to identify
major growth opportunities in the market. That’s why top-level management of Asda should
always consider SWOT analytical tool in their strategic management practices.
Application of tools
Change management is an effective process associated with the corporate houses. In
order to being change in the corporate organisation tools such as PESTEL analysis and
SWOT analysis are assessed and evaluated to identify the effectiveness and need of change
for the company.
PESTEL Analysis
PESTEL analysis is considered as associated with external factor to the corporate
organisation associated with the business environment. This analytical tool comprises with
factors lie political, economical, social, technological, environmental and legal factors.
Political Factor: Political factor involve policies and strategies frame by government of UK
in regards to the retail sector. All government decision making in respect to retail sector put
an impact on the business operations of ASDA Company. Political stability is also a key
factor in this regards as if the country has stable government it will sustain the policies for

longer time (Zhu, Krikke and Caniëls, 2017). Sustainable governmental policies provide
opportunities to the management of ASDA Company to frame long term strategic planning
for the business operations. Government in UK are very much supportive in respect to the
growth and development of corporate houses and business environment as it contribute in
economic development of the nation.
Economical Factor: Economic factor also considered as the crucial external business
environment factor impact on the business operations of company. Economic factor involve
economic growth rate, GDP, purchasing power of people in society and other associated
factors related to the economy. The entire economic factor directly influence to the growth
potential of ASDA Company. Inflation in economy is also a crucial business environment
factor associated with the economical factor. Inflation in economy directly restricts to the
purchasing capacity of the potential customer base of ASDA Company. All the factors
involve in economic factor directly affect to growth and business potential of corporate
organisation.
Social Factor: Social factor is also a key business environment factor impact on the business
operations of the ASDA Company. Socila factors involve culture, religious values of people
in society, population diversification, and belief of people in society, attitude and other social
aspects. Current fashion and trend also crucial aspects involved in the business environment
which also associated with the social factor (Naidoo and Gasparatos, 2018). Fashion and
trend in society critically impacts on the sales of the ASDA Company across the globe.
Company also make marketing strategies based on the social factors as it enables company
management to get connected with the potential customers of company easily.
Technological Factor: Technological factor involve technological advancement and
development in the business environment. Over the period of time society has seen immense
transformation due to technological advancement which guides to further changes. In case of
corporate houses technology has become a crucial aspect of the business operations.
Management of ASDA Company also gives huge emphasis on developing technology so that
more opportunities of growth can be created for the organisation.
Environmental Factor: Environmental factors are also a crucial business environment factor
involve in PESTEL analysis tool. This factor is considered as the recent development in
PESTEL Analysis too after the increased social awareness towards the environment
protection (Woolley, 2017). Management of ASDA Company also gets involve in many

corporate social responsibilities as a part of the environmental factor in order to take
competitive advantages in the retail sector. It also improves the brand value of company in
the target market.
Legal Factor: Legal factor is also an important business environment factor involve in
PESTEL Analysis tool. Legal factor involve government rules and regulations opposed on
the corporate organisations. Many legislations like equality act and other legislation
applicable on ASDA Company is a part of the legal factor. Company also involved in global
business operations so legislation related to different countries is a part of legal factor.
All the above factors involved in the business environment enable company
management to assess the external aspects of the business environment.
SWOT Analysis
SWOT Analysis is also an effective tool used to analysis the internal aspects of the
company. In order to introduce change in the company it is essential to assess the internal
aspects of the company.
Strength of ASDA Company
 ASDA Company consists with effective brand image in the retail market.
Product range of the company is also well diversified (Young and et.al., 2017).
 Company follow the lost cost strategy to cater the needs of the potential customers.
Weakness of ASDA Company
 ASDA Company do not get much involve in research and development activity.
 Company also carry the low level of current assets as compare to current liabilities.
 Diversification in work force is also not effective in ASDA Company.
 Decision making of the company is also centralised in nature.
Opportunity of ASDA Company
 Business expansion opportunity.
 Product expansion opportunity.
 Market expansion opportunity.
 Repositioning of brand in the target market.

Weakness of ASDA Company
 Retail sector consider as the highly competitive sector.
 Product expansion is a huge challenge.
 Inflation in the economy.
All the above factors enable company management to analyse about the internal and
external aspects of the business environment for the ASDA Company.
Importance of change management
Change management is important aspects associated with the corporate organisation
that drives companies to cope up with the needs of the customers. Importance of change
management can be summarised in the following points. Management of ASDA Company is
also planning to introduce new technological advancement in the company. Change
management will play following importance to the company.
Improve growth potential: Change is a constant part of the business organisations. Change
management implement in the company so that corporate organisation can meet the
expectations of the potential customers of company (Dai and et.al., 2019). By coping up with
the expectations of the target customers change management supports companies to achieve
more growth in the target market. New technological advancement will not involve much
cost as CRM Application can be installed at a very affordable price but it will improve the
customer connectivity with brand. Risk is also consider as least in numbers as this will only
improve the feasibility of approaching potential customers of company. This application is
also sustainable for longer time.
Improve efficiency: Change management play an effective role for the company in
improving the operational efficiency. Main aim to implement change with the support of
change management is to improve the productivity of various operations of involved in the
functional role of company. New technology will improve the efficiency of many operations
like marketing, logistic activities and other operational functions of company. With the
support of new technology company management will try to expand the sales turnover. As
this application does not seek much investment so the risk of investment is also low and also
the application is sustainable for longer time.
Improve strategic outcomes: Improving outcomes of all the strategies form to grow the
business is considered as among the main aim behind implementing the change.

Technological advancement will support all strategies and policies frame by company
management in order to grow the business. Company will also enable to interact with all
existing customers as well as also to approach the new potential customers in the target
market (Dunn and Harness, 2019). Company will introduce customer relationship
management application that will improve the brand presence of the company in the target
market.
The entire above factor present the importance of the change in regards to the ASDA
Company.
CONCLUSION
This report has concluded the process like write vision statement, gather information,
tools require, strategy formation and other factors in order to determine productive strategies.
Report has also guided about the constant monitor process use to analysis the effectiveness of
strategic planning. Models has also summarised like PESTEL Analysis and SWOT analyse to
assess different aspects of the business environment. ASDA Company is also introducing
new technological advancement such as CRM application. Due to advancement importance
like improve growth potential, improve efficiency can be achieved.

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