Context of Business

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Executive summery

The study of this reports provides a vast analysis of British retail giant ASDA’s business
functions, managerial practice, leadership style, organizational culture etc. ASDA’s modern
market-oriented decisions and strategic management techniques has made them one of the largest
brands in the world. Initially starting with supermarket business ASDA now have more
diversified their business criteria into other businesses like mobile operator, financial services,
optical products etc. Recently they have the second most sales in UK after Tesco and before
Sainsburys.’ They belief to serve their customer at least cost and give them the highest utility.
This belief has been successful enough in creating a large community of loyal customers which
also reflects their successful business strategies. Without that ASDA also have a large workforce
working for them days and nights and also comes up with new ideas and strategy which proves
their highly innovative and friendly organizational culture and strong management body
controlling their large business functions all over the Europe.
Contents
Introduction......................................................................................................................................4

ASDA’s vision, leadership style and management practices and the organizational culture......6

Analysis of ASDA’s organization culture and management styles influencing their business
functions and strategies................................................................................................................8

Recommendations........................................................................................................................9

Conclusion:....................................................................................................................................10

References......................................................................................................................................10
Introduction

There are many countries in this world they have different names and culture but when we come
in term of trade or business the difference no longer remains as an obstacle. Every business in
this world has common belief of wealth maximization through making profit. But to keep a
business operational all the business must have to go through some business functions and
fundamentals. A business organization might be a small or big, new or experienced but all the
business organization has the same goal, which is to serve the market which it demands. In the
eye of economy those business serve best to the market are that much of successful in attaining
their goal.
ASDA

ASDA, Europe’s one of the biggest British supermarket retailers with an excellent product mix
of fresh food, cloths, grocery and leisure, home and entertainment goods. They also provide
mobile network services named ASDA mobile. Across the UK ASDA have nearly 350
supermarkets serving the customer on regular basis. They have promoted themselves under the
sayings “Britain’s Lowest Priced Supermarket.”

ASDA Stores Ltd which is also known as ASDA. ASDA is a British market retailer firm. The
organization was established in 1949 when the general store owning Asquith family united with
the Associated Dairies organization of Yorkshire. It ventured into the south of England during
the 1980s, and gained Allied Carpets, 61 giant Gateway Supermarkets, and different
organizations, for example, MFI, at that point auctions off its acquisitions during the 1990s to
focus on the stores. Until it was bought by Walmart in 1999 for £6.7 billion. ASDA was the
second-biggest general store chain in Britain, somewhere in the range of 2003 and 2014 it fell
into the third spot. From April 2019 it became able to regain its second position, behind Tesco
and in front of Sainsbury's. Besides it’s supermarket business ASDA also provides financial
services and also provide service as mobile operator. ASDA also has it’s very own mission
statement for their market which is “Save money. Live better”

I have selected ASDA over other firms as it is one of the most emerging British supermarket
retailers. Without that ASDA is also globally recognized through its unique brand value. They
supply their pharmaceutical products, optical products all around the world also provide their
financial services, mobile services, grocery services globally. Which made one of the UK based
retail firm that I choose.
ASDA’s vision, leadership style and management practices and the organizational
culture.

Every management of an organization must have to do strategic planning in addition to set the
importance of tasks, allocation of scarce resources and also to ensure everyone is working to
achieve common goals and objectives (Birkinshaw, 2014). To make a strategic plan more
effective every organization needs its very own mission and vision statements. This serves as a
rulebook of the organization for making goals and objective of the organization. Usually, vision
statement is being described by the management how the business will do or desires to do or will
try to achieve in the long run which also describes what the organization hopes to become in the
future (Eliot and Ashton, 2018). It likewise conveys the motivation behind the organization to
the representatives and different partners and furnishes them with the motivation to accomplish
that long-term goal. A mission statement portrays the present condition of an organization and its
essential objectives or goals. It gives all the essential data about what the association does, how it
does it, and who it does it for (Miller, 2018). On the other hand, the vision statement, it is short-
term in type. In spite of having significant differences the mission statement which outlines the
primary goals and objectives which help the firm to achieve the organization's future target
which is broadly known as the organization's vision. So as one of the biggest retail firm ASDA
also have its very own mission and vision statement. ASDA’s mission is “to be Britain's best-
value retailer exceeding customer needs always” which also signifies their purpose or goal which
is “To make goods and services more affordable for everyone.” As the biggest supermarket
retailer ASDA’s mission is to meet the need of the British market and to do that, they have to
make their goods and services more affordable and sufficient to their customers. The mission
statement of ASDA defines the purpose of the organization which is to become Britain’s best
value retailers by meeting the customers need, more effectively and efficiently. These statements
also help the employees to understand their work and management to align the resources of
organization to achieve those significant goals. Finally, the mission statement of ASDA provides
the organization with a transparent and effective guide for creating choices, whereas the vision
statement of ASDA ensures that each one the choice created are properly aligned with what the
organization hopes to attain.
In every business organization leadership is that the position that leads and motivates individuals
to realize the structure goal (Williams, 2019). Leadership motivates others to require the suitable
action. In a company there ought to be a frontrunner to guide the individuals or team. They take
accountable of their individuals and support them through coaching and development so as to
encourage effective contribution toward meeting structure objectives.

ASDA employees and staffs are the company’s most vital asset and supply of competitive
advantage. Its success depends on the strength their management, that build from manage with a
disciplined method lead by the CEO and also the senior leadership team. staff are working
seriously going higher than and on the far side the decision of duty to induce the work done
below leadership. each department contains a sensible team leader to guide the worker in an
exceedingly correct manner towards the organizational goal. Since ASDA is hierarchical in
nature, it follows Autocratic kind of leadership wherever the choice making is done by the senior
and experienced members of the firm who are specially trained for it. the leaders at ASDA are
adaptable in nature. The expertise and extremely competitive atmosphere demand
transformational leaders who is able to drive the changes and act quickly. However, there are
heap of risks involved adaptable leadership style and needs that the staff ought to fully trust their
leaders and managers. This has been eminent in ASDA as a result of their extremely clear nature.
the staff are alert to the selections taken by the corporate and therefore the changes are enforced
swimmingly.

The management practice of ASDA also inspires a lot of firms to follow in maintaining their
firms. ASDA has their very own board of management which fix the organization’s target and
goal also provides mission and vision statements. They also control employee’s activity and tell
them what to do, how to do and when to do. This practice helps them a lot to be the biggest retail
supermarket firm all over the Europe. ASDA also have strong organization culture that they are
maintaining from their very beginning. Organizational culture is characterized as the
fundamental convictions, assumptions, qualities and methods of interacting that add to the
significant social and psychological environment of an organization (Klein and Coffee, 2011). At
the center of ASDA’s success is its organizational culture that has been designed over time. This
defines in what way people at work behave at ASDA. It ranges from in what way they treat
customers and other external stakeholders to how they treat one another. ASDA’s culture of trust
pervades all that happens inside all parts of ASDA’s operations. ASDA could be a company,
dedicated to doing the correct thing for its customers, employees and communities.

Analysis of ASDA’s organization culture and management styles influencing their

business functions and strategies

Organization culture is the thing that holds the organization’s beliefs, assumption, values
together to achieve organizational goal (Williams, 2009). Organizational culture also contains
vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. Under this
set of definitions, organizational culture may be a set of shared assumptions that guide what
happens in organizations by process appropriate behavior for numerous things. organizational
culture affects the approach individuals and teams move with one another, with purchasers, and
with stakeholders. Also, organizational culture could influence what proportion staff establish
with their organization (Richards, 2013). On the other hand, ASDA’s prominent management
style also influence its business functions and strategies.

Business functions are processes or operations that make sure the correct functioning of a
company (Appannaiah, Narayana and Ramanath, 2011) . In general, startups and small
firms hire those who will perform many functions instead of hiring specialists. For instance, a
marketing professional employed by a small inventive agency is also liable for copywriting,
content marketing and SEO. Because the company grows, its managers can hire specialists for
every of those activities and created many business departments such as Accounting & Finance,
Sales & Marketing, Human Resource, Information Technology, Customer Services, Production
etc. The management style organization culture affects these business functions in many ways.
For instance, if the firm’s culture is to appoint experienced employee over skilled employee the
management will tell the human resource department to intake only experienced employee, for
another example if the management style of any organization wants less production than the
market demand then it may control the production function to do so. Here are some business
functions of ASDA discussed below:

Human Resource Management: ASDA’s Human resources management is one amongst the
foremost important business departments of them with a big range of staff. Their HR specialists
are liable for attracting talent, screening potential candidates, managing worker relations and
maintaining optimum operating conditions. They additionally have to guarantee compliance with
labor and employment laws, address worker inquiries and solve conflicts. In ASDA, these
consultants develop coaching programs for new staffs to assist them get aware of the company's
culture and values.

Sales and Promotion: These 2 business functions of ASDA are usually administered by a
similar department. The role of sales and promoting departments is to push the business and
reach out to prospects, potential and existing partners, investors and a lot of. Its ultimate goal is
to get sales and increase whole awareness. Sales and promoting specialists are answerable for
researching the market and audience, observance the company's image on social media, making
advertising campaigns and effort new customers. they will additionally design brochures and
different promotional materials, write web site content and reach out to reporters and journalists.

Recommendations

Though ASDA is operating its supermarket business for a very long time but still there are some
spots that can be improved. As ASDA’s organization structure is hierarchical that’s why they
prefer to autocratic leadership style. In which the employees have follow the order that their
superior make. The employees of ASDA have no say in the management. But in this era every
successful business firm follows democratic leadership style which also engage the employees of
the firm in decision making process. As the employees of ASDA are more connected to the
market than the management. By this ASDA can easily able to come up with more customer and
market-oriented ideas that can give them a big breakthrough.

Without that ASDA can enroll an interactive session with their employees or the customer to get
to know their needs and demands. Also, frequent training sessions of the new and old employees
separately can make the workforce more professional, effective and efficient. This also make a
sustainable business environment that preserves ASDA’s very own organizational culture and
management practice.
Conclusion:

ASDA a well-known customer oriented retailer company which is now considered as one of the
biggest British brand. The company started its journey in the early 1949 and after so many years
they still managed to work as the customer’s favorite retailer store with their effective leadership
style, unique vision, various management practices and their own organizational culture.

Behind this company’s glorious success their employees and staffs plays a very crucial role. And
in return ASDA also facilitates their employees and staff with many benefits and special care.
The management practice of this retailer company is highly appreciable. No wonder why they
inspire so many other firms to follow them. Their organizational cultures are also a very
important part of the company. Them believes, assumptions, values have become the undividable
parts of them. Despite of being one of the largest brands they still try to stick to their vision and
try hard to fulfill the company objective with all heart maybe that’s what make them different in
the market.

References

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Harman, W. and Porter, M. (2017). The new business of business. San Francisco: Berrett-
Koehler Publishers.
Jeremy, D. and Tweedale, G. (2015). Business history. London: SAGE.

Klein, W. and Coffee, J. (2011). Business organization and finance. New York, NY: Foundation
Press.

McGee, J., Thomas, H. and Wilson, D. (2016). Strategic management. [Limerick]: McGraw-

Hill.

Miller, A. (2018). Strategic management. Boston, Mass.: Irwin/McGraw Hill.

O'Shaughnessy, J. (n.d.). Business organization.

Richards, M. (2013). Business organization. Manchester: NCC Blackwell.

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