Introduction to Strategic management
Strategic management consists of the analysis, decisions and actions an organization undertakes in order to create and sustain competitive advantage. The main purpose of strategic marketing management program is to focus on appraising go market programs and designing integrated and strategic marketing plans (Buckley, 2002). The present research has been made with the purpose of comprehending the need of strategic management and how it helps in managing the overall functions of organization. The entire research will be emphasizing on the deep analysis of Asda and what strategies they have used to reach towards the vision, mission and corporate objectives. Asda is the largest retail organization in UK market and it renders number of services to the customers which. The firm has been operating business in more than 35 countries all across the world which is the main reason of its high profitability. The study will be separated into basic two parts in which the first one will present all the things in presentation and the second part will be prepared in report format. Goals and objectives of Asda will also be included along with the processes which the firm has undertaken for enhancing business effectiveness. Apart from these, description will also be included related to the processes for monitoring and evaluating the attainment of goals and objectives. Moreover the concept of business and strategic planning will also be stated in the current study.
Business planning and strategy used in the organization
Asda, being a largest retailing organization promotes all sorts of services amid different customer segments and this is the main reason which builds the life cycle of business. Business needs to plan each and every facet as this reduces the degree of uncertainties and hence develops some measures to encourage the growth and success rate (Varadarajan, 2010). The company has expanded product line by the means of customer satisfaction and this usually ensures competitive advantage. The business always tries to make the customers feel a valuable part of the organization hence it results in customer retention and which also promotes word of mouth publicity. These are the major goals and aims of business and amongst all; the core element is the enhancement in profitability ratio.
Mission: Asda’s mission is to make goods and services more affordable to people and also to enhance customer satisfaction with delivery of quality products.
Vision: Asda’s vision is to grow the business in retail market and also to enhance competency ratio.
Values: Under the value statement, Asda respects for individual, strive for excellence and best service to their customers.
Aims and objectives: The business of Asda has been emphasizing on major aims and objectives through which only the firm is now able to reach towards long term goals and objectives. Here is the list of all aims and
objectives of Asda:
- To acquire market share with 21%
- To raise customer base
- To increases profitability ratio with new developed products
- To raise technical competency
In order to reach towards al the goals and objectives, Asda has been planning to develop several sorts of strategies. Strategic plan is termed as guidelines that deploy the resources of business to attain pre determined goals and aims (Thompson and Martin, 2010). Asda has been emphasizing on strategic planning concept as that stabilizes the terms and conditions of business. Here is the detailed analysis of the strategic process which Asda has enforced to get towards corporate aims and goals.
In today’s highly competitive business environment, budget oriented planning or forecast based planning methods are insufficient for a large corporation to survive and prosper. Asda is observed to be engaged in strategic planning process as that through this, it clearly defines objectives and helps in assessing identifying both internal and external situation to formulate strategy (Brooks and Simkin, 2012). Through this effective strategies can be formulated which helps the business to stay on a particular track. Asda formulates each and every activity with the help of strategic planning process and thus it assist in managing all processes effectively.
Mission and objective: The mission statement of Asda describes company’s business vision which includes unchanging values and purposes and that also looks forward towards the visionary aspects that guides the pursuit of future opportunities (Badur and et.al., 2011). All the activities are highly determined by the mission and vision statement and that also assist in improving different types of financial projectors. Strategic objectives are related to the firm’s business position and that may also include some measures such as market share and reputation.
Assessing internal environment: At the next level, Asda analyses internal and external business conditions with the help of SWOT and competency analysis. This usually assists the business to develop several types of strategies and techniques and thus increases opportunities to reach towards vision and mission. Asda at this stage also consider PEST analysis as through this, the impact of external forces can be evaluated and considering this framework, environment scanning can be done (Proctor, 2013). At such level, Asda also considers industry analysis with the application of Porter’s five forces and the framework assist in evaluating entry barriers, suppliers, customers, substitute products and industry rivalry.
Goal formulation: Asda is focused towards several types of goals and objectives as that ensures success criteria. It is the success ratio only that assists the business to reach towards long term goals and objectives (John and Rohit, 2000). Moreover it also works in determining specific direction to the employees; therefore it assists enhancing the opportunities to reach towards long term vision and mission. Goals are necessary to develop as that helps the business to determine a proper and specified approach for business management.
Strategy formulation: At that stage, the business must have to frame several types of strategies and this is the only reason that helps in reaching towards long term visions and missions. Asda has been formulating diverse strategies in the field of marketing and that also assists the business to develop competency factor (Cole, 2003). As per the opportunities and threats, market scenario can be changed and this is the only way to develop firm’s resources. Hence to develop market strategies, it is crucial for the organization to involve all the employees in decision making process as that enhances the efficiency of decisions and thus increases the opportunities of growth and progress.
Implementation: At the final step, Asda implements different types of strategies by the means of programs, budgets and procedures (Witcher and Chau, 2010). The way in which the strategy is implemented can have a significant impact on whether it will be successful. To reach towards long term goals and objectives,
Evaluation and control: Asda is seemed to control each and every activity with the help of several measurement tools. Business must have to facilitate evaluation and controlling process as this ensures identification of roadblocks and errors (Varadarajan, 2010). Hence the entire process is considered by Asda for the purpose of reaching towards organizational vision and mission statement. Since many years, the company has been focused towards the concept of strategic planning.
Identify goals and value processes of Asda
In many researchers, it has been found out that Asda considers ethical, cultural, social and environmental aspects into account as this is the only facet which helps the business to get community support (Proctor, 2013). The business values it customers so that to strive for excellence and this also ensures achievement of aims and objectives. Goals are the long term dimensions which facilitates the manager of Asda to retain the interest of stakeholders and that also develops attainment of competitive advantage.
Ethical concerns: Asda always considers ethical practices into account as through this only; employees are restricted to get involved in unethical considerations. The business always undertakes ethical and legal actions into consideration and for that they provide appropriate and accurate information to the customers (Benson and Barclay, 2000). All the advertisement of Asda when promotes the products provides only authentic and relevant information to the customers as protects the interest of potential consumers and this directly promotes the value of business another markets. Moreover the higher authority has also directed the employees to consider only ethical aspects into account since it also develops the brand image of business in other markets.
Cultural concerns: In order to reduce cultural related issues, it is quite essential for Asda to integrate with the cultural aspects of all the employees as through this, employee interest could be retained for longer period (Badur and et.al., 2011). It has been observed that all the employees of Asda are allowed to put their advices and opinions in decision making process which motivates and encourages them further to give their best in organizational productivity. To manage cultural balance, it is essential for the organization to organize several types of events so that can share their feelings and values. It is the cultural part only that helps the firm to integrate the business processes with the needs and demands of customers. Asda has been protecting the interest of customers by focusing on their cultural beliefs (Benson and Barclay, 2000). The cultural facets help Tesco to reach towards the long term goals and objectives. Asda is able to acquire long term market share only through the way of fulfilling the needs and preferences of customers.
Environment concerns: Asda is highly concerned about environmental protection and this is the main reason that helps the company to get huge support from society people. Moreover, the company has banned the use of poly and plastic bags as that has been increasing the ratio of pollution in society (Brooks and Simkin, 2012). Further to show concern towards environment, Asda has also promoted many campaigns and events and thus through this, range of customers are getting persuaded towards the products of company. The company is also allocating huge amount of resources in CSR activities which encourages the employees also to render quality services to the customers. Along with Asda, government and other ruling bodies are also contributing in environmental protection and thus it enhances the brand image of firm in different competitive market place (Buckley, 2002). Since many years, Asda has been focusing on environmental concepts and this is the only reason which aids the business to maximize the opportunities of business expansion and diversification.
Social concerns: Being a largest retail organization, Asda needs to emphasize on social factors as these are the major facets which hampers the development opportunities of business. Social factors are directly concerned with customers and market forces and that highly impacts the business scenario (Cole, 2003). Asda researches market conditions so that to identify the level of competition and also the structural facets. The firm has allotted diverse roles and responsibilities to each and every workforce which is the main reason that the business is focused towards the expectations and preferences of customers. Through such concern, Asda has been getting huge support from the customer segments and therefore it enhances the value of business from different contexts. All the stakeholders of Asda get several types of benefits and advantages which directly retains them for longer span of time. In order to satiate the needs and demands of customers, Asda has been focusing to maintain direct as well as frequent relationships with that, since it also develops accomplishment of long term goals and objectives (Graham, 2008). It has also been observed that to retain the customers for longer period, most of the time Asda delivers different types of amenities and discount schemes to the customers.
Business objectives: Asda is focused towards the long term business objectives and to attain all such objectives, it is crucial to manage business processes in appropriate manner. For such purpose, the company has been involving all the employees to give equal contribution which further assists in managing value processes (Jeffs, 2008). The above mentioned part has covered all the business aims and objectives and thus it ensures appropriate delivery of services. Under the business objectives, Asda always tries to differentiate the business from the identity of competitors as through this; long term sustainability as well as competitive advantage can be accomplished. The main motive of the business is to consider the interest of customers by the means of protecting their value. Hence these are the major concerns that lead Asda to grow in competitive world.
Identify how the organizations monitor and evaluate its objectives, strategies and goals
Each and every aspect of business needs to be monitored by several processes and tools which ensures identification of roadblocks and omissions. Asda has been monitoring business processes efficiently as through this only, efficacy of strategies can be found out. Asda is using several types of techniques such as regular inspection, frequent monitoring and especially balance score card (John and Rohit, 2000). All the employees of Asda are directed to achieve strategic objectives and this is the major reason that helps them to reach towards long term sustainability and competitive advantage. By adopting the view that quality monitoring is a strategic process rather than a tactical one, companies will begin to see an improvement of their customers experience and their customers therefore becoming their strongest champions. The below mentioned description will be including the specified process of monitoring of Tesco which also aids in identifying the effectiveness of formulated strategy (Johnson, Whittington and Scholes, 2011). By monitoring quality across multiple channels, organizations can learn from their customer interactions, leading to better decision making, service and processes.
In the process of monitoring, the first step is the setting up of standards which help the business to identify prevailing roadblocks in business processes. Moreover the manager initiates the process on appropriate timely basis as that regularly maintains evaluation of strategy (Proctor, 2013).
Next Asda directs all the employees to follow pre determined guidelines so that errors and omissions can be found out. The business may also determine feedbacks of employees so that effective decisions can be taken as per the requirements.
At the next level, Asda actually starts with the process and this particular stage, the business reviews achievement of aims and objectives which shows how much the firm is concerned about attainment of goals and objectives (R.J. Trim, 2004).
Timely monitoring is very much crucial as that helps in determining the facets which are not appropriate for the business and which needs to be eradicated from business process.
The business has also developed some of the measures through which effectiveness of strategy could be find out and that also helps in regular of further processes. Nonetheless, Asda is also evaluating previous records of the strategy implemented as that helps in identifying previous records (Ranchhod and Marandi, 2012).
At the next level, Asda accumulates all the roadblocks and errors and at the same stage, the business identifies alternatives to overcome such issues.
Hence this is the current monitoring process which Asda has been following and that also assists in identifying the areas where improvements can be facilitated for business efficiency. The business also evaluates the efficiency of strategy by measuring its contribution in organizational development and strategic processes (Richard and Colin, 2005). The ratio of increased customer base as well as profitability could reflect the efficiency of business and competent strategies. Moreover monitoring can also be facilitated by getting advices from the colleagues and other people working in same aspect. Earlier Asda is also found to make use of balance score card; however due to some aspects, the business changed the approach.
Monitoring and evaluation are both highly systematic procedures which analyze the progress of the ongoing strategies and spot the constraints if any. Asda has been employing the approach of Balance Scorecard from a very long time now for this purpose (Thompson and Martin, 2010). Balance Scorecard is basically a strategic planning and management system which is deployed by the organization extensively for aligning its business operations to the strategy and vision, enhance external and internal communications, and lastly monitor performance of organization against the strategic objectives. Through this approach, the organization is viewed from four perspectives i.e. the customer perspective, the business process perspective, the learning and growth perspective and the financial perspective.
In addition to this, strategy maps are also utilized by Asda. These maps are communication tools used for telling a story of how value is developed for the company. They present a rational, step-by-step connection between the corporate objectives in the shape of a cause and effect chain (Varadarajan, 2010). In simple terms, augmenting performance in the goals identified in the Learning & Growth perspective allows the firm to perk up its internal process perspective objectives, which eventually permits the corporation to develop desirable outcomes in the financial and customer perspective.
Besides the above mentioned techniques, there are certain indicators against which the progress of both objectives and the strategies is measured. These are process indicators, output indicators and outcome indicators. The first set of indicators is employed to measure progress in the change processes (Witcher and Chau, 2010). They are essentially utilized to explore how something has been done and not what has happened as a consequence. The second set measures the output which emerges as a consequence of the processes. The last set of indicators measures the eventual results of the strategies employed. These indicators are seen as a minimum set to be accomplished.
Hence from the entire report, it can be concluded that Asda has been following effective strategies for its growth and expansion. The objectives set by the company are in alignment with the corporate vision and mission. The retail giant follows suitable measures to monitor its progress.
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