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Research and prepare a SWOT Analysis for Asda company

Research and prepare a SWOT Analysis for Asda company

SWOT analysis entails recognizing the major reason of the company and understanding the internal and external features that are adverse to the company in an effort of accomplishing the main goals set out

  1. Opportunities

    Opportunities are elements which are exploited by business enterprise fully. The company chance is that the relationship between customers and the company is improved because of low price of a commodity with a superior quality. This will enable the company to progress on the opportunity by increasing the number of warehouses it possesses.

  2. Threats

    Sainsbury and Tesco are the key competitors of ASDA stores and as a consequence they possess threat to the company survival. The stock price of ASDA stores is 16.8% while that for Sainsbury ltd is 16.5%. This proportional analysis depicts a slight variation in market share and hence possesses risks to ASDA stores limited.

  3. Strength

    ASDA stores is advantaged with strong market situation and strong product brand name connected with the main objectives of providing products of different variety with low cost. Low product cost would lead to enhanced long-term affiliation between the company and the prospective customer’s hence superior business picture to the public contributed mainly by Humble and caring employees are the key characteristics employees of ASDA store

  4. Weakness

    There is lack of inflexibility by the company on few of the strategized product against the company competitors’ because of extensive variety of merchandise sold by ASDA stores. The company does not have branches in other countries which their competitors have. As much as the company is growing big and popular, non branch opening signifies some weakness on the company management as well as the marketing and product promotion team.

The success of ASDA Stores limited

ASDA stores appreciated various managerial features as well as technological attributes that lead to success of the company. a good leadership style and workers motivation are some of the key approach adopted by ASDA Stores limited in an effort of attaining the desired target output as well as the revenue. Some of the major factors that lead to success of ASDA stores limited are as follows.

1. Responsibility of operation manager

The major duties of ASDA stores operation managers are planning, organizing, directing, controlling as well as encouraging employees. A critical decision should be made on the product as well as strategic planning as well as getting workers motivated and have an improved working environment. This duties and responsibility bestowed on the operation manager of ASDA stores lead to improved customer satisfaction on the product as well as enhanced working environment of workers that lead to better and improved product quality.

Another role of operation manager of ASDA limited is to ensure technological management is up to date because the manager would need to provide service for marketing strategy. This strategy requires current technology in order to have a wide coverage as well as understanding the needs of the customers and putting this requirement into consideration in order to guarantee product acceptance in the market.

Tactical managing should involve an incorporated progression of planning, implementing and controlling and thus facilitated reduction in the production and operation cost making the ASDA stores limited a cost leader of the product in the market. Human resource management is vital to the success of the company in which ASDA stores incorporated that lead to success of the company because the employees were made aware of the company plans and intentions on the desired product level as well as giving them fare remuneration that made workers to have a positive attitude towards work.

Good public relation of the company with the general public is also enhanced by ASDA stores limited. An excellent relationship implies that ASDA stores limited is having humble environment of producing their products without interruption of disagreement with the community. Hence a comparative advantage on the basis of reduced cost based on efficient management is achieved.

2. Deployment of latest technologies

Latest technology would mean production of a high quality product, new designs as well as reduction in production cost. ASDA Stores limited appreciated latest technology in diverse segment and hence an improved product quality, invention of a new product and branding that draw many clienteles on the company’s products was depicted. quicker customer service and concern as well as connection of suppliers as a result correct information is expressed to the supplier concerning customer’s expectation and main stakeholders of the company is all brought about by the new technology. The only factor that differentiates a company is a unique management and products branding, pricing and quality standard.

Latest technology would lead to cost reductions due to the fact that the company uses machine intensive method of production. With this practice there is reduction in material wastage and breakings due to human error in handling the material. Also an economy of scale is enhanced because one machine can perform more work at a given time and thus produces more products that meet the desired quality and product branding. In general ASDA stores saved a lot of time and money due to employment of latest technology in its production. This led to success of the company and had its product being the price leader in the market.

3. Sustenance of good relation with the parent company.

ASDA store limited is utilizing its relationship with the parent company (Walmart) limited in an effort of bringing in latest technology and new in-stores to the United Kingdom. The companies also realized a positive relation in sharing the superior aptitude, performance as well as know how. Launching of Hybrid checkouts lead to reductions in cost and queuing time to its customers. The impact is that, there is improved customer relation as well as satisfaction.

Also leveraging the level and exchange power of walmart as well played its part in bringing in manufacturing principal investments. Reduction in selling prices and improved technology as well as intensifying prospects for its clientele to shop has facilitate the vendor to sustain its market position for the preceding quarter with a constant market price of 17.9%.all this measures has lead to growth of ASDA stores limited in recent years.

4. Functional strategy

Departmentation in an organization guarantee a close supervision as well as direct contact of operation managers with employees and thus the manger is able to understand the exact workers needs and state of their working environment. Also a direct contact with customers is enhanced leading to improved customer satisfaction and public relation of the company with the public.

In securing a comparative advantage, it is better if a Proper direction and improved functions exist as this would enable the company to attain maximum profit. The company fundamental functional role involves an extensive range of managing and controlling a variety of jobs concerned in providing services and making products hence planned development and improvement is attained.

ASDA tactical responsibility is to add to the question and consistency on the market in which to compete on the circumstances of safeguarding customers, increasing market and discovering a new market. In the last five years the company tried to put extra attempt so as it can compare itself with Tesco or Sainsbury limited with the major aim of becoming a company with the best value beyond customer’s necessities in Britain as well as having a zero damages to landfill by the year ended 2010.the director consequently in an effort of satisfying this task as well planned functions Are trying to make a come first in every steps of the business of ASDA stores limited.

The key occupation and purpose of ASDA stores limited director is to provide assurance that decision making, Cost minimization and human resource management is harmonized and controlled efficiently and thus integration of cost system should be upheld by the managers.

The strategic function of ASDA stores is to guarantee that the present clientele are maintained as well as attracting new ones by valuing productions and controlled using the latest technology. The ASDA stores ltd aspires at expanding and exploiting the market opportunities. The company operation manager is conferred with superior accountability of running and controlling the trading circumstances inside as well as enhanced public relations so as to uphold the company’s benevolence in an antagonistic market

Consequently, a number of general enhancements ASDA store limited should consider making are: by the year ending 2013 the company must be the principal firm in the market which can only be accomplished if the operation executive is mindful and considering customer’s requirements and being attentive on the excellence managing as well as Considering the external factors affecting success of the company such as possibility of merging with a competitor or diversifying the operation which would lead to risks reduction and improved operation and consequently creations of more returns to the company

The company should put into concern use of expertise as well as encouraging workers in an effort of increasing the height of production because intensity of amount produced cannot increase when the operational surroundings is unsatisfactory to employees and thus workers should be motivated as well as ensuring safety measures is enhanced. Presence of active human resource in the company would guarantee better working environment which would mean a high output level to the company. This measure was adopted by ASDA stores limited that lead to success of the company in the stiff market competition.

To achieve utmost proceeds, ASDA stores should reduce the expenditure on manufacture to a preferred echelon meaning that the corporation ought to guarantee that a well-organized inventory management system is put in place in order to ensure that proper stock management and valuation is properly accounted for in the company books of account. Any inconsistency is rightfully corrected as this would have an impact on the company cost of production and pricing strategy. All this can only be attained if an ASDA store limited appreciates the needs and importance of a cost accountant in the company.


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