Asda – a Chain of Supermarket in Uk
Asda is a British based chain of supermarket that sells general electronics, financial services, clothing as well as food among others. The supermarket chain is owned by American based retailer Wal-Mart which was named Forbes, as the world’s largest retailer.
In the perspective of UK retail market, Asda is the second largest supermarket in terms of market share with the market leader being Tesco. As of December 2010, the retailer’s share of the entire UK grocery market was said to be 16.5%.Currently, Asda has 160,000 employees in more than 500 superstores and supermarkets across United Kingdom. Asda records more than 18million shoppers on a weekly basis with an average yearly turnover of 20 billion pounds.
Asda organization structure is that of hierarchical type. Asda hierarchical structure has many levels. Each level is controlled by one person and instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure. If there was a problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where it is supported to be.
Corporate Social Responsibility
For over half a century Asda has delivered value for our customers through great prices that dont compromise on quality. Also Since 2005 they have reduced energy use in their existing stores by 33% and in new stores by 45% meaning they are saving energy and they also have reduced their travel length to 8 miles cutting the carbon out of the air providing a more clean and healthy environment. As much as pollution ASDA is also getting rid of wastes from creating landfill, by charging for any plastic bags, also making bags that are more durable, so people don’t have to buy plastic bags over and over again.
In the act of competitive with other stores it says that ASDAs sales has fallen 4.5% in the three months to the end of September, compared with the same period last year, by this this is apparently the worst case of dropping down of sales within the last 50 years of them running ASDA.
Advantage is that ASDA now has introduced the feature online shopping to customers making it an advantage and also standing out in some places where there are not a lot of competitors and having a delivery cost from- £3 and £5.50.
Influences for ASDA
ASDA always check for 4 things Food waste, Energy, ASDA and British farming and Carrier Bags. They are more depended on recycling and saving energy, making them Environmentally Friendly. They get their supplies from healthy and more fresh ingredients and Items for Customers.
ASDA has 15.2% of the market share in the UK. The low Price of ASDA is impacting them pretty hard , sales has dropped In the 12 weeks to 21 June, Asda’s sales fell 3.5%, making it the worst performer in the sector, according to figures from Kantar World panel.
Business Effects in the Future
Effects on ASDA is meant to be improving as some news says, ASDS has been recovering from some of the hugest let down in the past and they are trying to improve the future for them and their customers, after the store recorded its first quarter-on-quarter sales rise in three years. Among the “big four” supermarkets, Asda has been the worst affected by the rise of the German discounters Aldi and Lidl. These have chipped away at its market share.
Effects of the business environment
ASDA has takes a number of changes during the last 65 years of them in the UK, ASDA is usually is searching and conducting for changes in the company keeping everything up to date in the business environment, and also by responding to customers. The (PESTE) model which uses the hidings of Social, Economic, technological political and Environmental Factors. Also Chances in the Macro-Environment such as- New laws, trading changes, trade barriers and also the government changes which may effect ASDA.
Internal, external and competitive environment
In the perspective of Asda’s human resource policies, ASDAs recruitment system is designed to seek and select the best possible individual for the vacant jobs in order to ensure that the right person who will help the organization achieve its objective is employed. Making them have different skills to solve problems that might come in their ways like – communication, a sense of direction, organised and others, by doing this they can provide the best help for customers if they need it.
When compared to the whole of UKs stores and competitors, ASDA is one of the cheapest retailors there is, ordering system as well as the company’s economies of scale plays a great role in ensuring that the company is able to sell products at low prices and be able to make profits.
For ASDA is one of the cheapest retailors so it need to have strategies to be able to keep the customers happy as well as them gaining profit to improve their business, so they have adapted to changes to ensure that the company is making profit and everything is in effect.
From the past ASDA has added new items and food in their stores to suit their customers needs, there are different sections, there are food and ingredients from different countries so customers from all around the world are happy. for services there are applies like different extra services for example Café, food place etc which is joined in with ASDA, so customer can buy some food or they can grab a drink while they are shopping.
While UK was still in the EU, it gave ASDA a good opportunity to expanded its business and their superstores, getting most of the trade barriers removed from the companies way to expand more. As it expanded the Chinese government allowed ASDA to expand in their country by the rule of the world trade Organisation.
When ASDA first open in the UK it made sure to cover and check all the rules and regulation are in place so the company doesnt get charged any fines from the government.
If there is a big supermarket there will not be as many competitors but the Competitors will be there to challenge each store, so stores like- Tescos, Sainsbury’s, Co-Operative and Morrisons, will be drawing customers with different offers with cheap but useful product, or their online shopping is cheaper, or their Staff are helpful and more. So to be in the part of the competition ASDA must like up to the high standards.
As for ASDA, the strength is that the number of Superstores that they have currently in the UK, making the company more famous, and also over 100 retail stores means it will be more noticed by the economy, making them even more now than other stores.
Some people might say that the weakness of the company is that ASDA is known as a cheap Retail store that might make people that that if they are charging less the quality of the item or food might not be as good as the other shops. Also ASDA stores are Huge, you can’t see ASDA as like a regular corner shop, it’s a huge store, so over 500 of them in UK it can be difficult for the company to manage all the stores if problems keeps occurring.
ADSA is struggling because of how fast other superstores are growing, for example they are getting troubled by Lidl and Aldi in the UK. To match up to their competitors ASDA had to cut prices from there ‘Everyday Basis’
Supply and Demands
ASDA is a huge company with over 500 stores in UK, so people will have high demand for items and Food, it also owns a Faison/ dress company called George, as of ASDA there target is to make items and food cheaper for the customers, if the items are cheaper there will be more demand for it, and if they are running of that item, they might put the price up for it, thus making the company profit.
Environment and Corporate Social Responsibility
As for now ASDA is doing well for business to improve their stores and staff so they can help their customers 100%.
ASDA is growing after a period of 3 years , as being the 3rd largest supermarket in the UK, this is because ASDA is cutting off more prices and they are also focusing on store improvements.
They think that the improvement was because of all the Easter training.