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Asda is a British supermarket which retails an excellent mix of fresh food, grocery, clothes and home, leisure and entertainment goods. They also have a mobile network, called Asda mobile. Asda have 346 supermarkets across the UK. Asda have promoted itself under the slogan Britain’s Lowest Priced Supermarket, 12 years running.
Most big businesses have a mission statement, aims and SMART objectives.
A mission statement is a short statement written by a company or an organisation. This mission statement will provide a sense of direction and helps with decision making for all levels of management.
A mission statement contains:
- Purpose and aims of the business
- Products and services offered
- The businesses main stakeholders and clients
An aims is what a business sets out to do e.g. making profit, growth in the business or serving the community. In order to achieve aims the business sets out a time specific target know as an objective. Objectives influence business decisions and set plans. Objectives can be set for short term and long term. In the short term, maybe during a recession or starting up, survival may be vital. In the long term, a business may go for expansion or growth through selling more of what they do already and new products. SMART objectives are more specific. SMART stands for specific, measurable, achievable, realistic and timed.
The difference between a mission statement, an aim and a SMART objective is mission statement and aims are not as specific as a SMART objective. An example of an aim may be to double the rate of expansion and an example of a SMART objective may be to double the rate of expansion by five new superstores this year. As you can see a SMART objective is more specific.
Asda’s mission statement sets out its long term aims and is,
‘To be Britain’s best value retailer exceeding costumer needs always’.
Asda’s purpose is:
‘To produce goods and services more affordable for everyone’.
Asda’s values shows what the company have confidence in which includes,
‘Respect for in the individual, quality and costumer service’.
This is Asda’s mission statement which will help Asda gain more customers and be successful.
Asda also has a lot of other aims such as:
Asda aims to double its rate of Expansion
Asda plans to double its rate of expansion in Britain to an unprecedented 20 new superstores a year in the light of the Competition Commission’s inquiry into the £130 billion supermarket sector.
By doubling the rate of expansion Asda will attract a lot of customers also competitors will fail to keep up with the sales. Also by having a many stores Asda will gain more profit and so they could afford to cut prices to gain more costumers. Doubling the rate of expansion could also have a positive effect on the economy this is because a lot of jobs will be created and unemployment rate will decrease.
Asda aims to cut carrier bags with ‘bag on request’ scheme
Asda wants to reduce carrier bag use by 20% by forcing customers to request them from checkout operators from the beginning of June.
By reducing the use of carries bags Asda will help the environment. Plastic bags are usually thrown away after just one use and we also use more carrier bags than we need to.
Asda aims to create over 10,000 jobs
The supermarket chain Asda aims to recruit 10,000 people across the UK this year, in addition to the 5,000 jobs the group created in January.
By creating jobs Asda will help the economy to grow, unemployed people will be able to get a job at Asda and earn their own money instead of claiming benefits and therefore the government will have more revenue to spend on important things such as the NHS. Also by creating more jobs Asda will have more profit, they could invest it back into the business to train employees or to improve their technology or they could use the profit for expansion and this will lead to people buying more shares as Asda is a public limited company.
A business also has to have a SMART objective. An objective is a target that a business may want to achieve. It’s got to be more specific than an aim. An example of an objective could be to make a profit of a 100,000 this year. There are different types of objectives such as financial objectives, customer objectives, staff objectives and social & environmental objectives.
Customer objectives are objectives that are set out to find out what the customer needs and therefore to be able to design a better product.
Asda’s customer objectives are:
Since January 2007 we have more than doubled our range of organic products, with food, household, health and beauty products now on sale.
By doing this Asda will attract a lot of customers which will help them to expand their business.
Selling only 100% sustainably sourced fish by 2010.
63% of Asda’ ethnic customers have called for affordable authentic Asian clothing.
Consumers’ health needs, particularly those looking for lower fat foods, this expanding range currently consists of 230 lines.
Staff objectives are targets set out for the staffs who work in the business. These objectives will help the business to be successful and therefore attract customers.
Asda’s staff objectives are:
Asda is preparing to recruit 7,000 new staff later this year.
Staff will have the option to contribute £1.95 each week, which will allow them to claim money towards dental treatment, optical care and physiotherapy.
ASDA has invested over £1.5m implementing in-store occupational health clinics for its colleagues, including the 3000+ working in its 14 supermarkets in Northern Ireland.
Financial objective is an objective to do with money, it’s a business goal that can be measured in financial terms e.g. to increase profit by 25% this year.
As you can see on the table above a lot of people shop at Tesco but the growth between 2008 and 2009 has been slow.
Asda’s has the biggest growth between 2008 and 2009, consumer spending increased by £268024.
Asda’s has many social & environmental objectives. These objectives are set out to help the environment by recycling and reduce the waste. Asda’s environmental objectives are:
Back in 2006 Asda set itself an ambitious target of sending zero waste to landfill from all Asda stores and depots by 2010.
By using natural lighting it is estimated that the store will save approximately 142 tonnes of CO2 and 349,000 kwhrs of electricity per year. This equates to the same energy needed to power 3600 households for a week.
In existing stores we are on target to reduce our energy consumption by 20% by 2012.
If Asda could achieve these objectives, they would have a big impact on the environment in a positive way. Asda would also save a lot of money which could be used for other stuff such as expanding the business.
All these aims and objectives could get affected by external environment factors. External environment factors are unmanageable variables beyond the control of the business, external environment consist of four factors which are:
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