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In this paper it is going to discuss about the macro and micro environment has made a change in achieving the success or failure of Asda, the strengths, weakness, opportunities and threats of swot analysis of ASDA are discussed and the strategic process of ASDA has made a competitive advantage in the market.
ASDA is one of the biggest retail in a UK industry after TESCO, it has good economic growth as involving in the projects and it has established the stores in almost so many cities and towns throughout United Kingdom. It is providing job opportunities to so many people ,it is serving both related to food and non food items, it has been stated its own brand of products in the market. It is serving its needs in electrical,clothing,food,photo,financial servies,and petrol stations .George clothing is one of the famous brand as available in the asda as it became popular clothing showroom for the customers as its quality and the cost are excellent according to the needs of the customers. Online shopping is present in which the delivery is excellent as compared to other firms as serving more people with in less period of time. It is running other related clubs to the customers such as asda baby toddler club, asda club, it is running charities as helping so many people .It is running services in mobile industry as asda mobile, toys ,entertainment cds as available to all age groups. It runs certain discounts and coupons all round the year according to the occasions like easter,christimas,mothers day, valentines days as taking the opportunities to expand the firm still with more sales .
Environmental analysis is an important task as to develop the plan for strategic as based on the long term or short period of time. It is classified as two types internal consists of strengths and weakness and external consists of opportunities and threats as it is further classified as micro and macro.
Micro consists of customers, suppliers and competitors as this may leads to effect on only certain firm as applicable .The competitors should look after the strengths,weakness,objectivies as based on pcost,mixing of product,distribution,market segment. The suppliers should look after the raw materials, parts needed for the firm, capital as all must be produced at the time of the production. The competitors enter in the firm as based on quality,service,knowledge on the factors as related to the external world.
macro consists of economic,demographic,cultural,social,technology,natural,politaicl,legal this may leads to effect on all the firms .The economic condition is based on the area of local or overseas s based on the interest rates, foreign exchange,investments.The demography change leads as due to change in the people as with demand shifting to other products or services, monitoring should be done as based for a long or short period of time .The change in the nature as due to the pollution caused by air and water should check healthy and safety regulations. The technology change as due to advancement in area of telecommunictations,informattaion technology so naturally as per the technology the marketing,production,packing everything in the firm must be according to the technology as per the latest standard. The rules and regulations must be followed according to the law as described by the government. The cultural and social change is taking place the firms are mixing with the joint ventures as with other firms as with the contact with foreign companies.
The internal development specifies the strengths and weakness of the firms as based on the market effectiveness as based on the quality ,customer service,price,sales ,and the facilities of the production as related to capacity,time,ability based on the technology, the resources of finance ,human resources all are concern in this point of view.
The external development as to check regular basis on monitoring in a routine way by updating macro and micro keeps on varying in this ,the firms define their goals and objectives as according to the opportunities and threats ,it should look after the future expectations as based on economy,technology,demand in the market, regulations as followed according to the government. The strategic plans are set for five years then the environmental scanning should be done twice to that of strategic plans that is for 10 years .
The environmental analysis must look after the future trends as it must be shared between the corporate planning and with the senior department in the firm of the management. The data must be collected from the trade unions,internet,government authorities, professional publications . Havaldar. 2006
P stands for political
E stands for economic
S stands for socio-cultural
T stands for technology
It contains extra two factors as when compared to pest
E stands for environmental
L stands for legal
S stands for social
T stands for technology
E stands for economic
E stands for environmental
P stands for political
These all are used as to make use of opportunities and to make a plan for contingency as to avoid threats. To make use of these techniques as in the firm at the time of production as per this concern it must be updated and should be monitored as to keep the product up to date.
The sensitivities of the organizations are different in different levels all are based on the price as the price more it may cause of the risk .The political and the other organizational sensitivities are based on the culture as derived from the top hierarchy level of the management to different levels of management as existing in the firm. The firm must have open characteristics in the firm as it is able to identify and specify the access points as needed for the network as it indicates to find out the development of the firm and the future trends as required. Wendy Lomax.2006.
The porter's diamond analysis is focussed on the location of the production and the organization of the business area. The invocation and the modern methods are used in this technique as to obtain success, this technique is depended on the dynamic technology. The business strategy, structure of market and competition are interrelated on the production and the demand as this is depended on the supply as all are grouped together to form with success .The new products must be designed as with skilled and talented people as working from the phase of the first stage of the production of the business .
The porter's diamond using this technique it has certain plus pints such as the real world of the industry can be understood. It builds a strong and capable of new power. The knowledge can be collected from various firms as irrespective of area.
The porter's analysis is a tool as to draw completion and the dynamic system at the macro level as it must be worked in support with other tools as along with macro and micro levels then it yields perfect results.Craig Wright, Brian Freedman, Dale Liu.2009
The main need of the SWOT analysis is to recognizes the positive and negative factors of the firm about the product it serves as one of the best tool in developing the goals to the firm as to improve profits for the strategy ,the internal factors are strengths and weakness whereas the opportunities and weakness are external factors .Strengths describes about the positive attributes as all these are within the control of them it describes about the knowledge ,the background of the people ,skills and the reputation ,content as present in the firm. The tangible assets are present in the strengths which include the customers established before, the distribution channels, and the informatation about the systems and about other resources. The investors should be keep on finding the strengths as what plus points are present in the firm as comparison to other firms, the resources are available are not, as what role the investors are involved must be checked.
The weaknesses are present with in the business as it is due to resources shortage, lack of skill, service, and quality. In this investors must look after what further improvements must be done as to becomes success, what are the investors avoiding and what harm it is causing must be verified.
The opportunities comes under the external field it becomes as positive approach to the firm as occupying more market share as this leads to the change in the lifestyle, the issues as present due to present circumstances can be able to solve at this phase. The increase of demand of the product in the firm. In this the investors must look after and should a change according to change in the technology as taking place in the market. It should be checked as it going as per the rules and the regulations and policies as per the government.
The threats are not in control if arises as due to issues taking place in the firm. In this it should able to look after what are the obstacles that are faced, how as other firms growing more rapidly ,the change of servies,the cash loss as how it is effecting for the firm. Larry D. Stern.2006.
The swot analysis once done then it must look after types of strategy as taking place in the firm.
The corporate strategy must be very clear way as it gives certain directing steps as to deal within the firm. This type of strategy is best as when the firm is larger in size and more expansion needed as for the change.
The growth strategy in this the expansion is done as based on the swot analysis as it is done to change in the geographical place, that means for example the delivery system must be improved in firm as to attract more and more customers as it offers more sales in online stores, as with busy life people are preferring online shopping, if the delivery system is increased as done in time with quality then there increases more sales in online which becomes a plus point to the firm.
Internal growth in this the growth is developed in between the firm as by extending to already existing products further as to attract sales. For example if the clothes are selling for women then the products related to women's wear such as perfumes, fragences as related to women's wear must be provided as this leads to growth internally to the firm.
External growth in this the firm joints hands with other firms as the products of both are interrelating to each other. For example Merger of time inc and Wagner communciatation both the firms are joined and became as Time Wagner in the year 1989 but later on as with the change in time this style has changed with merging domestic and global firm as one unit. Marios I. Katsioloudes.2006
Five force frameworks are present in every organizatation but it is different from one firm to another. In this it consists of the following as listed below
New entry to the firm may leads to threats
If any product or service exists instead of substitute leads to threat
The buyers power in the firm
The supplier power in the firm
The disputes occurring in the firm
In order to free from the threats then the product must be available with less price as in this case then there is need to shifts of the customers or suppliers to other products. The firm must be in position as to define what exact firm need to them as needed according to their needs as it must look after as it comes under which phase as it is of type local, domestic, national or international level. The industry is changing so fast as shifting to other types of products manufacturing and sales like even though Kodak is famous in cameras it is yet to start Kodak phones as to still further expand its business among their customers. The complementary products are becoming more popular these days like dell and Microsoft are the complementary products needed for the buyers, because dell is the branded technology and according to present situation in its design, as to run dell it needs Microsoft so both are related to each other, the main thing is cooperatation plays a wider role in building such type of products. Gerry Johnson, Kevan Scholes, Richard Whittington.2008
The turbulence of environment has made a lot of change in the market as due to change in the economic, cultural, and social, technology, and geography, this may effect for an individual with this change and also to the firm. The business has divided into macro as well as micro environment, macro is independent as it does not depend on any other factor as it is not concern to external world, it lies in between the industry, the micro is based on the suppliers, competitors and the mediator's .It is related to external world. Colin Egan.1995
The strengths of asda are it is being in the number one position in selling the branded products. The profits are more. Good parking facilities with convenient opening times as needed for the customers.
The weaknesses of asda are it is big firm as to look after everything becomes a failure, the firm is launching its own products as not up to customer targets.
The opportunities of asda are it must still extend to other related business as close to the customers, online shopping.
The threats of asda are cost of the products as when compared to other firms are more, the wages to the employees are less.
The strategies are emerging ,maturity and decline competitive positions in the firm .
The emerging positions must ne new and it must be prove in the market as they are helpful to the firm, it must be according to the needs of the technology as to face certain and so many competitions ,there is less chance of the opponents to enter in such area ,the cost is reduced as the buyers are more as at the time of introductory due to the less price as offered by the firm.
The maturity is based on the demand and the share of the market as form time to time varying ,it leads to advantage with the competitor at this phase .The firm expands to so many areas irrespective of area as based on geographical location as this covers all parts of the country becomes familiar with the product launching as making use by all the people throughout the globe for this can add certain extra features as making it more modern, style and creativity to be added further it becomes more popular. The distribution of the product must be expanded further as to increases the sales to larger extend .
The declining phase where at this phase starts slowly vanishing from the market as due to the losing its quality ,service not up to customer satisfaction ,sales less as due to other product replacing the more quality than this as entry of new competition has increased.
The prescriptive strategy in this the elements related to main type are considered as before the start up of business, it must be defined in advance as by the organization before set up of new product that is going to establish in the firm. It is meant for long period of time this all are unique and the firm is look after by the department of head as related to the firm. In this the approach is based on the analytical and logical type as in this rises to new opportunities, the issues related to major or complex problems can be solved ,in this as per the situation the strengths are defined according to the criteria as occupying its position in the firm.
The emergent strategy is the one which goes according to the time as it decides or sets the objects as per the situation as per the requirement. It is not planned as it goes as per the criteria, it keeps on developing condition from its initial phase to final phase and keeps on developing from one phase to other phase. In this changes are done according to the reality ,the creativity plays an important role in this type of strategy.
One can conclude that ASDA is becoming popular among the market as it is maintaining the swot analysis in a perfect way as reducing its weakness and threats on regular basics and the it is becoming the leader in the retail and online shopping as making the competitive success in the market by name and popularity with good quality by following PEST ,PESTEL ,STEEP analysis as keeping updated as making proper utilization of the resources available with good management and employment team as quality and service as up to the range of customer satisfaction .