Global Strategy: Analysis and Practice
BUSI1271 Global Strategy: Analysis and Practice
Individual Reflection Report on ASDA
Submission Date: 05/06/2023
Student Name: Tanzina Akter
Student ID: 0013044553
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Global Strategy: Analysis and Practice
Reflection Report on ASDA
Table of Contents
Sl No Content Page No
01 Introduction 3
02 ASDA’s Strategy 3
03 Macro Environment Analysis: PESTEL 3-4
04 Industrial Environment Analysis 4-5
05 Distinctive Resources & Competencies 5
06 Micro Environment Analysis 6
07 VRIO Analysis of ASDA 7
08 Main strength & weaknesses of Internal Environment 7
09 SWOT Analysis of ASDA 8
10 Conclusion 8
11 Individual Reflection 9-11
12 References
13 Appendix
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Global Strategy: Analysis and Practice
Introduction:
This report will discuss ASDA’s strategy in summarily. The external environment of the ASDA
like macro environment analysis, industry analysis will be evaluated using different types of
models like PESTEL, Porters five forces. Rather than these, the internal environment of the
company will analyze with VRIO framework. Lastly, I will make a reflection essay regarding my
learning by using Gibbs model.
ASDA’s Strategy:
ASDA follows cost leadership strategy, they offer low prices as well as a wide variety of
products to their customer (Anon., n.d.). They always has championed customers value by
listening to their customers and their aim is to save their customers money and also provide them
healthy food and service (Anon., n.d.). ASDA is the one of the largest super market chain in UK.
They are targeting mainly to reach every level of customers.
Macro Environment Analysis:
The macro environment focuses on the company’s external environment which they are not able
to control.
PESTEL Analysis:
PESTEL includes Political, Economic, Social, Technological, Legal and Environmental factors.
In table-1 it shows the analysis of ASDA’s:
POLITICAL ASDA has impact on national and international
regulations like any other organizations. Such as war and
instability also impact on its decision making.
Brexit has proposed some trade hindrance with EU which
is also a concern for ASDA (Anon., n.d.).
Windsor Framework between the UK and the EU has
been a source of both parties (Campbell, 2023).
ECONOMIC Economic factors like credit of cost, cost of living, pay
level, labor supply & demand etc. needs to consider by
ASDA (Anon., n.d.).
UK has the world fifth largest economy in terms of
exchange rate.
SOCIAL To maintain their social responsibility ASDA hire old
people or retired person who are looking for job.
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For customer demand organic, vegan food growing very
fast.
TECHNOLOGICAL ASDA try to developing and applying new technologies
to reach customers.
LEGAL Consumer Protection Act 2015 is aimed strongly at
protecting the customer’s interests and enforce quality of
service from service providers
Food safety and standards maintaining.
ENVIRONMENTAL Government has issued a strong emphasis over the
reduction of Carbon emissions and protecting the
environment.
There is a policy in effect in UK according to which the
government must reduce carbon emission by 100% till
2050 (Climate change committee, 2008)
Table-1: PESTLE analysis of ASDA
Industrial Environment Analysis:
For understanding the main competitive forces at work in an industry Porter’s five forces model
is an important tool. The figure-1 below will show the model.
Figure-1: Porter’s five forces model
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This model will used to analyze ASDA’s external environment in table-2.
Threats from the new market entrants: Retail industry within the UK is extremely
Medium strong as retail industry was worth £495.71
billion in 2022. (Statista, 2022)
Threats of Substitute: Medium It would be very hard to form an operational
structure as strong as ASDA.
Power of Customers: High The sell lowest price products.
Power of suppliers: Low Because of the high volume of the retailing
industry.
Industry Rivalry: High Other competitors such as TESCO, Sainsbury
and Morrison’s offer a decent competition
(skbthemes and Rahman, 2020).
Table-2: Porter’s five forces analysis of ASDA
Distinctive Resources & Competencies:
The main focus on ASDA is value system, aiming to beat out their competitors regarding on
price. ASDA commits themselves to adopt everyday low prices (EDLP) strategy as opposed to
adopting the traditional high- low price mechanism (Anon., n.d.).
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Micro Environment Analysis:
Micro environment analysis focus on company’s internal environment. In figure-2 below we will
see the internal factors.
Resources
Tangible Intangible
That must be
Immobile
Heterogeneous
Have a VRIO attributes to become
VRIO Resources
That Provide
Competencies
Figure-2: Internal Environment
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VRIO Analysis of ASDA:
VRIO analysis a tool for VRIO analysis of ASDA we will emphasis on table-3 below.
Resource Valuable Rare Intimate Organized Advantage
Tangible Y N N Y Competitive parity
Brand Y Y Y Y Competitive advantage
Reputation
Intellectual Y Y Y Y Competitive advantage
Property
Patents and Y Y Y Y Competitive advantage
Copyright
Franchise Y Y N Y Temporary Competitive
agreements advantage
Marketing rights Y Y N Y Temporary Competitive
advantage
HRM skills Y Y Y Y Competitive advantage
Table-3: VRIO Analysis of ASDA
Main Strengths and Weaknesses in Internal Environment:
Strengths:
ASDA has positive cash flow which is a great strength for them to compete in the market
(Anon., n.d.).
Brand image is very important for any organization. ASDA has a very strong brand
image.
They have lots range of products and services to serve their customers.
ASDA’s marketing team working very good to create network in every area to reach their
targeted customers.
Weaknesses:
ASDA has limited global presence.
They have some criticism too.
Some claims may create controversy.
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SWOT Analysis of ASDA:
SWOT analysis of ASDA (Anon., n.d.)., we will see in the table-4 below.
Strength Weaknesses
Brand image Limited global presence
Product variation Low discounts
Strong marketing team Often debt- ridden
Sustainability Weak merchandise
Opportunities Threats
Increase online connectivity Wide range of competitors
Expand globally Breaking the law
E-commerce Currency fluctuations
Table-4: SWOT Analysis of ASDA
Conclusion:
ASDA is one of the biggest retailer brands in the UK. Some uniqueness, tactics and customer
satisfaction make ASDA different from other retail brand. ASDA’s aims to reach all category of
customers, that’s why they focus on cost leadership strategy. They are also focuses on social
responsibility like “Greener at ASDA price”.
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Individual Reflection
Gibb’s Reflective Cycle will be used for this individual reflection. There are six different
elements in the cycle. We will see Gibb’s Reflective Cycle in Figure-3 below.
Description
Action plan Feelingd
Conclusion Evaluation
Analysis
Figure-3: Gibb’s Reflective Cycle
Application of Gibb’s Reflective Cycle in my learning
This application will be shown in table-5 below.
Description We were assigned by a group presentation on
a company according to our choice and
analyze its strategy, macro and micro
environment analysis, their distinctive
resources and also competencies. We were
seven members in a group. We all divided our
tasks so that we can present our presentation
on time and we can get feedback from our
tutor.
Feelings Work in a group is always exciting as well as
challenging for me. Because everyone has
their own perceptions and thought which is
different from others. As we divided our task
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earlier it was easier for us to collect
information about our topic and also it was
time consuming.
Evaluation From my point of view things went right as
we complete our task before deadline and we
were the first group in the tutorial class who
present their presentation. We got nice
feedback from our tutor and also we make
some mistakes which we corrected according
to our tutor’s directions.
Analysis Overall it was a great group work. From the
beginning of the task we do group meetings
several time through online and offline. We
discussed our thoughts, share our opinions
and problems too. We all were together to
help each other so that everyone from the
group ca understand the topics and assigned
task.
Conclusion It was a great idea to divide the task in group
members but it will be more accurate and nice
if we divide the task according to individual
competency. A lots of group discussion and
meeting is required for doing task correctly.
Time is very important for any group task to
submit on time by everyone.
Action Plan For upcoming projects, I will try to make
group according to our preference. Group
should be dynamic and active. We have to
focus on collecting information and resources
more. I will do more research work.
Table-5: Implementation of Gibb’s reflective cycle
Learning Experiences within the group: As a part of a team I have learnt a lot of things from
this group task. In the group we seven people were different countries with different cultures and
opinions. Communication plays a very vital role in any group work. Moreover, the discussion
regarding this assignment helped me to learn about how the business run in different corner of
the world.
Topic I liked the most & improved learning within the group: The topic I liked most from
this assignment was their cost leadership strategy, how they maintain lower pricing policy.
Rather than this, we were worked for macro and micro environment which helped us to learn
about lot of things regarding the company’s business, their policies, their strategies. Through
group discussion it became easier for us to collect data and information.
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Topic I want to learn further on: The topic I want to learn more on is the power of supply
chains and how companies maximize the potentiality of their resources to ensure their value from
the respective supply chain. I think it will help me to learn things and can be very useful.
Recommendations to group members: It was a pleasant experience to work with this group, all
were very active and helpful. One thing I want to add is more and more discussion about topic
and practice for presentation. Overall, group work is all about maintaining communications.
Bibliography
1. Anon., n.d. [Online]
Available at: Bhilwarawala, M. (2023). Asda Stores Ltd. SWOT & PESTLE Analysis.
SWOT & PESTLE.com. https://www.swotandpestle.com/asda-stores-ltd/
2. Anon., n.d. [Online]
Available at: https://corporate.asda.com/our-story/company-facts
3. Anon., n.d. [Online]
Available at: https://www.howandwhat.net/pestel-analysis-of-asda/
4. Anon., n.d. [Online]
Available at: https://thestrategystory.com/blog/asda-pestel-analysis/
5. Anon., n.d. [Online]
Available at: https://thebestwriter.com/asda-competitive-through-strategic-management-
of-its-resources/
6. Anon., n.d. [Online]
Available at: https://corporate.asda.com/our-story
7. Anon., n.d. [Online]
Available at: https://desklib.com/blog/swot-analysis-and-pestle-analysis-of-asda/
8. Asda.com - Online Food Shopping, George, & more. (2023).
https://www.asda.com/about
9. Bhilwarawala, M. (2023). Asda Stores Ltd. SWOT & PESTLE Analysis. SWOT &
PESTLE.com. https://www.swotandpestle.com/asda-stores-ltd/
10. Climate Change Committee (2008). A legal duty to act. [online] Climate Change
Committee. Available at: ttps://www.theccc.org.uk/what-is-climate-change/a-legal-duty-
to-act/. Corporate - ASDA. (n.d.). Asda to create 10,000 new jobs in convenience store
rollout. [online] Available at: https://corporate.asda.com/newsroom/2022/12/06/asda-to-
create-10-000-new-jobs-in-convenience-store-rollout.
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11. Powell, A., Francis-Devine, B. and Foley, N. (2020). Youth unemployment
statistics. commonslibrary.parliament.uk. [online] Available at:
https://commonslibrary.parliament.uk/research-briefings/sn05871/.
12. skbthemes and Rahman, M. (2020). Competitors of ASDA (ASDA Competitor analysis).
[online] howandwhat.net. Available at: https://www.howandwhat.net/competitors-asda-
asda-competitor-analysis/.
13. Statista (2022). Retail Sales Value in Great Britain 2005-2021 | Statista. [online]
Statista. Available at:https://www.statista.com/statistics/287912/retail-total-annual-
sales-value-great-britain/.
14. Sodry, S. (2023). PESTEL analysis of ASDA. www.howandwhat.net.
https://www.howandwhat.net/pestel-analysis-of-asda/
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