...ASDA Market share: 2014: 17.2% (second highest behind Tesco) http://www.statista.com/statistics/279900/grocery-market-share-in-the-united-kingdom-uk/ 2013: 17.2% 2012: 17.6% http://www.theguardian.com/business/2013/nov/19/britain-supermarkets-market-share-fall-tesco-sainsburys-lidl 2011: 17.1% 2010: 17.6% http://www.theguardian.com/business/2011/aug/16/supermarkets-market-share-kantar 2009: 17% http://www.economicshelp.org/blog/6288/economics/uk-grocery-market-share/ The table on the right shows ASDA’s market share from 2009 to 2014, as you can see they have had a mixture of growths, at times the growth declined. Currently their market share is at 17.2%, which means they have the second highest percentage, they are only behind Tesco. ASDA’s newest news on what’s going on within the company would be the false advertising, this has been a big problem for them. The problem was that they stated in their advertisement that they had many products cheaper than Argos, although that may be true the way the stated it was wrong. They had said to have around 139 products that were cheaper than the ones sold In Argos and they also said that an independence price checker found out this information. However this figure that ASDA had generated and advertised was completely wrong. In fact Argos had much more cheaper products, Argos had claimed to have around 336 products which were cheaper in their stores compared to ASDA. Due to this problem, it caused many ASDA...
Words: 790 - Pages: 4
...ASDA Case Stephany Mejia 1. What problems of motivation did Archie Norman discover at ASDA? Archie discovered that beyond the immediate financial crisis ASDA had organizational and cultural issues. These issues created a problem of motivation. ASDA’s top executives had offices in a separate part of the headquarters and were isolated from the rest of the company, one manager explained that executives seemed more interested in “hunting and partying” than in addressing serious issues faced by the company. ASDA had become more bureaucratic and hierarchical. The bureaucracy had reached a point that made it difficult to get anything done. With the financial crisis people feared losing their jobs, so they didn’t want any attention to themselves and this stopped any innovation. There was little integration or interaction between the classes. Executives came mostly from the upper class while lower level employees came from working class. There was clearly a communication issue and subordinates were intimidated by their superiors and thus afraid to tell them anything other than what they wanted to hear. There was also an issue of communication between different departments such as buying, marketing and finance and this made coordinating activities particularly difficult. Since employees were not allowed to do anything and were so afraid this caused them to lack motivation for ASDA. 2. What do you think Archie Norman should have done on his first day on the job? ...
Words: 929 - Pages: 4
...businesses, the business I have chosen are Tesco and Asda. Also I will be talking about the interest of owners, customers, suppliers, employees, trade unions and shareholders have in the businesses. Another point I will be talking about is why business have to consider local communities and pressure groups when operating their business. Tesco and Asda key Stakeholders are; Customers: Customers want good quality products and services for affordable prices, customer want to shop at Tesco and Asda and receive well experience whenever they shop there. Also Tesco must always understand that meeting customers needs and expectations are very important, otherwise they will lose customers are profits. Suppliers Tesco would buy resources that they have needed of to produce goods and services from suppliers, so Tesco and Asda needs to have an effective relationships with their suppliers in order to get quality resources at reasonable prices which intern will help Tesco and Asda to sell products cheaper if they get it cheaper this means Tesco and Asda will then make their customers more happy because they are getting good quality products and services for affordable prices, but this is a two way process as suppliers depend on the business they supply to earn money. Owners Owners would want the business to run smoothly and earn from it so the interest they would have in the operations of the business would be that they will like to earn as much money as possible from the business. However...
Words: 319 - Pages: 2
...motivation did Archie Norman discover at ASDA? ASDA was one of the most successful retail businesses in the United Kingdom. It had a competitive advantage due to its unique superstore structure and its low price leadership in the market. Everything changed all of a sudden as ASDA found itself with demoralized employees, slow growth in sales, and declining profits in 1991 due to many years of lack of interest from previous managers. It had been a 1 billion pounds cash surplus supermarket chain in 1987, and by 1991 it had a debt of over 1 billion pounds. This was the situation that Archie Norman encountered at ASDA when appointed Chief Executive Officer (CEO). The main reasons of the problems that ASDA and Archie Norman had to face were due to complex organizational inefficiencies. The employees had lost the ability to act independently and got used to be told what to do after many years of controlling management. ASDA had become a bureaucratic and hierarchical institution and as a direct result of this rigid functioning structure in the company any kind of innovation was stopped from being encouraged or implemented. Without any innovation ASDA was unable to keep its competitive advantages in the retail market in the United Kingdom. So ASDA and Archie Norman had to face the challenge of transforming the superstore in relation to its management style of doing things as well as implementing a sense of culture based on the core values of ASDA. Management and leadership had to change...
Words: 1331 - Pages: 6
...FOUNDATION TO BUSINESS STRATEGY ALDI ALDI is one of the world’s leading grocery retailers with more than 7,000 stores across 70 countries. The company originates from Germany, where it was founded in 1913 as one of the first retailers to offer self-service. Since opening its first store in 1913, ALDI has established itself as a reputable retailer operating in international markets including Germany, Australia, UK, and the U.S. What distinguishes ALDI from its competitors is its pricing strategy without reducing the quality of its products. In fact, in some cases ALDI’s products are 30% cheaper than those offered by its competitors. ALDI can do this because the business operates so efficiently. ALDI has operated in the UK since 1990, and now has over 500 stores in the UK and Ireland employing in excess of 20,000 people. ALDI’S POLICIES: ALDI does not have a clear defined Vision and mission statements, however it has clearly defined policies based on which it could create its competitive position in the market. ALDI’S Policies are based on ‘What if a grocery store challenged the typical retail business model?’ALDI’s business model enables to provide the customers the highest quality products at the lowest possible prices. This value stems from the numerous efficiencies and innovations instituted at every level of ALDI’S operation. The following are the cost saving strategies that ALDI adopts: * Customers bring their own bags or buy our reusable bags to save money ...
Words: 2377 - Pages: 10
...Kingston university | Three Firms: Changes in Their Business Environment. | Business Economics | | Bienia, Patrycja | 3/12/2015 | Table of Contents 1. Introduction 2 2. European Telecoms: Going mobile Again- The Economist Dec 20th 2014 2 2.1. Ryanair Warns Plunging Oil Price Will Hurt Profits–The Guardian Feb 02nd 2015 3 2.2 Aldi and Lidl set to win holiday season again as shoppers shy away from Asda, Tesco, Morrison and Sainsburys- The Guardian Dec 16th 2014. 5 3. Conclusion 6 4. References 8 1. Introduction This report aims to recognize key economic factors that are affecting three different firms and provides a clear link between the discipline of economy and real life examples. The first story focuses on the merge between BT Group plc and EE that could result in economies of scale and scope as finalisation of the purchase would create the UK's biggest fixed and mobile operator that offers a multiply services. Further benefits of merge give the company a possibility to eliminate rivals therefore the firm is becoming close to achieve a monopoly. The second story concentrates on the drop of oil price caused by increased supply against demand. The organisation involved is RyanAir which is budget airlines. Budget airlines are able to offer cheap fares by reducing their operation costs mainly by hedging fuel; however economic and political factors affected the forecasts of future fuel rate in disadvantage for the company. This company has hedged...
Words: 2506 - Pages: 11
...What problems of motivation did Archie Norman discover at ASDA? I believe all the problems stemmed from upper management’s lack of focus on the purpose of ASDS’s existence. Had they remembered that ASDA was a people servicing company who’s main objective was to serve customers, to meet their basic need of grocery shopping then they might have never failed. Unfortunately directors were isolated from each other and other managers creating lack of communication between everyone. By the time Archie arrived at ASDA, the company had become highly centralized and bureaucratic. Morale was very low and the culture was risk averse. Directors and upper management did not seem to care about the company as opposed to store employees who did care but felt intimidated to make suggestions or voice their opinions. Store managers felt ignored and had no input on decisions. As a result this lack of communication, appreciation and respect for employees reflected in the their attitudes and service to customers. What do you think Archie Norman should have done on his first day on the job? What is the financial status of ASDA? How should the company be re-structured? What changes would you make? Please review some of the video clips about how ASDA promotes itself ( now being part of Walmart), how common people seem to love to hate ASDA, and how the chain has evolved since the ASDA case was written, then answer the following: (a) What do you think are the most important concerns...
Words: 1566 - Pages: 7
...UNIT 17: MARKETING INTELLIGENCE Written By: LO1: UNDERSTAND BUYER BEHAVIOUR AND PURCHASE MAKING DECISION 1.1 Describe the main stages of the purchase decision-making process for an individual consumer (i.e. business-to-consumer) Buyer Behaviour and Decision Making Process Customers go through five stages of decision making process in any kind of purchase. The diagram below summarises it. The above model is essential in making marketing decisions. Customer buying process starts with “Need Recognition”, in which buyer identify a need or a problem (hungry, fever). Some times in these stage customers respond to a marketing stimulus (aroma of chocolate muffins and coffee while passing the coffee shop). The next stage is “Information search” in this stage if the need is very strong then customers do not search a lot of information and buy product or service close to hand, if not then customers obtain information from family, friends, neighbours, advertising, TV, radio, retailers or by handling and examining or even testing. In the third stage “Evaluation of alternative” customers uses the information gathered and chooses between alternative brands, products or services. After evaluation, customer makes the purchase. The last stage is “Post-Purchase Evaluation”, this stage make a customer feel either satisfied or dissatisfied with the purchase, if customer feels satisfaction then they will stick to the brand, product or service in not then they will switch to...
Words: 3132 - Pages: 13
...nahide, a 3rd year students in SUP DE CO MARRAKECH. In the third year the internship is a part of the program at our school. But for the two of us, we didn’t do an internship because we shose to go for a summer school programme in LONDON, UNITED KINGDOM for two weeks at the LONDON SCHOOL OF BUSINESS AND FINANCE (LSBF). The objectives during this journey were to improve our level in English language, to Discover a new culture, to visit a lot of places that we wanted to see and also to meet a lot of different people from different countries. Studiying in LONDON was a wonderful experience that we wont forget. for that, we would like to give some thanks to all the people that helped to gave us the chance to go for this programme. Without forgeting a special Thanks to our English Teatcher M.EL FOUADI KAMAL for this opportunity. Last, but not least, we would like to thank our parents and family for supporting our stay in LONDON financially and emotionally. INTRODUCTION ...................................................................................................2 SECTION 1 : TESCO……………. .........................................................................4 1-BUSINESS DESCRIPTION…………. ......................................................5 2-HISTORY .................................................................................................6 3-CORE VALUES ......................................................................................7 4-VISION...
Words: 9552 - Pages: 39
...Organisational Structure and Culture Introduction: Tesco plc founded by Jack Cohen in 1919, is the biggest supermarket chain with market share of 30% compared to that of its rivals Asda 17.1% and Sainsbury 15.9%. Tesco Ireland is a planned international expansion of Tesco group. It currently controls 28% of Ireland’s grocery market after being formed in 1997. The initial chain stores acquisitions started in early 1980’s in Ireland. All it’s strategic decisions are being taken in the UK. Tesco’s profit margins in Ireland are the company’s highest in the world according to retail industry analysts in London. Organizational behavior is about the impact of individuals, groups, culture and structure on the business. It relates to expected behaviors of individuals within the organization as every single individual is different. And people tend to behave differently in a same situation. As people are the one who work in the organization, the performance of organization depend on the performances by employees so managers should make the list of expected behaviours of employees within organization and it is necessary to know how to deal with it. The value system, emotional intelligence, organizational culture, structure, job design and the work environment are important in determining human behavior. An appropriate culture can change the behavior of individuals. Organizational structures Organizational structure is a system used to define a hierarchy within an organization...
Words: 306 - Pages: 2
...change as a process with three phases: (1) unfreezing—behavior that increases the receptivity of the client system to a possible change in the distribution and balance of social forces; (2) moving—altering the magnitude, direction, or number of driving and resisting forces, consequently shifting the equilibrium to a new level; and (3) refreezing—reinforcing the new distribution of forces, thereby maintaining and stabilizing the new social equilibrium. Lewin also suggested that although common sense might lean toward increasing driving forces to induce change, in many instances this might arouse an equal and opposite increase in resisting forces, the net effect being no change and greater tension than before (Spector, 2010). The Situation at Asda...
Words: 890 - Pages: 4
...INTRODUCTION Asda had its modest beginnings in 1920 by a group of dairy farmers in Yorkshire County for a means to sell milk. Before going public in 1949 Asda expanded by acquiring and diversifying into bakeries, meat processing plans, and non-food businesses. Asda Stores Ltd. business philosophy was to always have the customer in mind and therefore have low prices goods. With this notion Asda started setting stores in suburbs and targeted value-conscious customers. In 1981, Asda wanted to increase profits by reducing costs and offering higher-priced products. With this change, Asda lost the price-leadership position and started to lose its customers. In 1991, the £4.5 billion organization had a debt over £1 billion and Asda’s stock price had crashed from over 100 pence to below 30 and had become highly bureaucratic and hierarchical. Archie Norman was offered the position as the chief executive who hired Allan Leighton shortly after. During 1991 – 1997 they turned an organization nearing bankruptcy into a profitable one. In 1999 Walmart bought over Asda for 8 times the price at 1991. How did Norman and Leighton do this? This was achieved by simultaneously integrating Theories E and O effectively they were able to implement a successful approach to the organizational change. Listed below are changes that were made to the respective dimensions using the integration of the Theories O and E to improve both Economic Value and Organizational Development....
Words: 878 - Pages: 4
...The supermarket retail sector in UK has started as a fundamental part of the retail industry, that leading the food retailing (Shitti et all, 2006, P.94). The supermarket sector has an essential influence on the retail industry. The UK supermarket sector is led by few companies, Tesco, ASDA, Sainsbury, Safeway, Morrison and Co-op Group that control over 50% of grocery retail. A shift in consumer lifestyle has changed retail industry to offer a diversity of services. (Agriculture and Agri-Food Canada)) The UK grocery has been classified with a wide range of formats including Hypermarkets, Superstores, Discounters and Convenience stores. Generally, food retailers were developed from a highly simple source then they established a sound successful business, interspersed by failure (Williamson et al. 2004). The UK competing supermarkets in the retail industry are; 1. Morrison The supermarket was established in 1899 by William Morrison. In 1962, he purchased the Victoria Supermarket out of town. The growth of Morrison went steadily to increase their stores from 45 in 1990 to 81 in 1996 located in towns that close to main roads. It has been regarded as a leader in Sale-Based Ordering (SBO). Customers consider Morison chains as price competitive. Morrison is considered as the pioneer in feature of Market Street 2. Tesco It is classified as the market leader in grocery retailing that reached 545 outlets by 1996 guided by formula ‘pile it high, sell it cheap’. Tesco...
Words: 1115 - Pages: 5
...company Recommendations * CVF – where should Tesco be Conclusions TESCO AND GLOBALISATION This Essay would contain information on Tesco as an industry and organisation. It would also analyse Tesco using the four models; PESTLE, SWOT, Porter’s 5 forces and the competitive value framework (CVF). An in-depth look into the term globalisation, its advantage and importance as well a the global challenge Tesco is currently facing, its competitor and how they have reacted to globalisation and recommendations on how to handle their global challenge this paper would contain. Jack Cohen first formed Tesco. This happened in the year 1919 when he first opened up a stall in the East end of London. Tesco started out as a very small business and it did so on the platform of sole proprietorship however today, Tesco is one of the world's largest retailers with a clear, proven growth strategy. It has over 492,000 employees and about 5,300 stores across 14 markets Tesco has its headquarters in Chestnut, United Kingdom. It was originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified its product range and is currently into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services, telecoms and internet services; DVD rental; and music...
Words: 3488 - Pages: 14
...Analyse The Wal Marts Case Study Management Essay ukessays.com /essays/management/analyse-the-wal-marts-case-study-management-essay.php Wal-Mart Stores, Inc. opened in 1962 by Sam Walton and his brother. Nowadays, it is ranks as the largest corporation in the World. In early 1990s, the company announced that it would initiate the international operations, which commenced in 1991 in some countries like Canada, Puerto Rico, Argentina, China, etc. (Reference for Business, 2012). PEST Analysis In order to analyse the Wal-Mart's case study we are going to apply the PEST analysis which is 'A type of situation analysis in which political-legal, economic, socio-cultural and technological factors are examined to chart an organization's long-term plans' (Business Dictionary, 2012). II.1. Political Factors When a firm desires to undertake businesses in a foreign country there are some factors to investigate before taking a final decision, for example, the system of the government, law and local trade unions, language, religious and ethical values. Wal-Mart faced numerous complications on the legal and political front in many countries. For example, in Mexico the company participated in an aggressive lobbying campaign to amend the long-standing U.S. anti-bribery law that the company might have violated. The 1977 law, well-known as the Foreign Corrupt Practices Act, prohibits U.S. firms from offering fees or gifts to foreign officials to advance corporate interests (Hamburger, Dennis & Yang...
Words: 1692 - Pages: 7
