Assessing The Economic Performance Of Asda Business Essay

ASDA Group Ltd is UK number one largest food retailers. It sold variety of items like food, books, outfits, CD's, electronics and house hold items. Earlier they may have began as just superstore and today they have broadened themselves internationally.

Goal of ASDA

The primary goal of any business is to endure or exit in the market. because of this they have confidence in Value for money - Competitive prices - Meeting Consumer needs - Progressive returns on investment. ASDA is designed to make goods and services less expensive for folks.

Mission affirmation of ASDA

The mission affirmation of ASDA is to be the "Britain's cost effective dealer exceeding customer needs always". It shows which it value a whole lot for the respect of the average person, customer support and superiority.

Marketing strategy of ASDA

ASDA is playing on low price/low cost strategy in the market. They have decreased down their operating cost as well as carbon foot-printing with the help of sustainable development programs. They are using the strategy in which they are trying to use the very best quality products but with the decreased price so that maximum amount of customers can be seduced. They have tried out their best to maintain a good marriage with the customers. They have improved a lot in the customer services. They have got played a strategy of ASDA price make sure to succeed the trust of the clients to a big extent.

Organization behaviour

Organizational behaviour essentially handles the deep research of the impact of all activities of individuals and categories within the behavior of the business. It also handles the analysis of the impact of organizational composition on human behavior. In organizational behaviour there is a integration of several other studies like sociology, psychology, social psychology and economics. Organizational behaviour aims with the analysis of contribution of individual behaviour towards attaining greater efficiency and development of the business.

Organization behaviour can be explained as "systematic analysis of actions and attitudes that individuals exhibit within the organization" (Stephen P. Robin)

Taking the impact of different fields on the organization behaviour it's seen that the study sociology handles the group dynamics. It shows the effect on the group behaviour to a huge extent. It also handles the roles enjoyed by the individuals in the organization, power, status, communication, conflict management, group techniques, formal organizational ideas, group decision-making and norms.

Psychology has impacted the organization in studies like job-satisfaction, management, specific decision-making, performance appraisal, and work stress and ego state. With the help of study of psychology it helps the business to improve the attitude, increasing personal skills and making positive approach for the introduction of the organization. Even psychology is also considered very important to the selection of the employees as it helps in reading your brain of the person, doing the dimension of the personality aptitude and frame of mind.

As the business need to keep an eye over the federal government rules and regulations. Political technology helps the business in knowing the positioning for financial investment, employment and development and doing the advertising of international business. Friendly mindset is the blend of the psychology and sociology to obtain better human behavior in the business. It contributes to the power of the people in the organization, maintenance of the interpersonal norms, group decision-making and handling the change. Anthropology takes into account the ethnic and environmental framework for the individuals behaviour research.

People, structure and technology are the three main components of the organization. For the achievement of the purpose of the company they need to give attention to these three factors. The company should fulfil the required needs of their workers as well as maintain a good relationship with them. Clubs and groups also play essential role in attaining goal of the company. The organization might well have formal and casual framework. The formal constructions do have some proper group of objectives set to priories whereas informal structure doesn't have any such objectives to be taken care of.

So basically corporation behaviour includes the study that involves the management of interpersonal relationship, id of the needs of the people and application of the correct strategies to obtain the best end result.


Organization culture of ASDA

Organization culture reflects the personality of an organization. ASDA believes they have an extremely unique culture. They have defined their prices with their customers, employees and also to do best of them. For ASDA their customers are the main entity for the kids. They try to create an understandable and positive environment because of their customers. The employees are also permitted to openly present their views for the betterment of the business. The employees participate in different programmes organised by the ASDA in order to very well combine up among themselves and with the very best level management. ASDA always try to motivate their workers giving different techniques and trips. So ASDA have a good culture with some guidelines and regulation made to achieve the aim of the company. in addition they follow all the legal laws and regulations and try to produce good variety of product remember the health of their customers.

Organizational change in ASDA



Kurt lewin suggested a three level theory of change known as unfreeze, change, and refreeze.

Stage 1

The unfreezing level is one of the key stages for any organisation. This stage is about getting ready to change. It is basically sense the occurrence of necessary change to be produced in the company and getting ready to move from current safe place. It is stated that the more we believe that change is necessary, the more immediate it is, and the greater motivated we live to help make the change.

Unfreezing and getting motivated for the change is focused on weighing the 'pro's' and 'con's' and deciding if the 'pro's' outnumber the 'con's' before you take any action. This is actually the basis of what Kurt Lewin called the Push Field Research.

Force Field Research is a pretty way of stating that we now have several different factors for and against making change that people need to be aware of. When the factors for change outweigh the factors against change we'll make the change. If not, then there's low motivation to change of course, if we feel forced.

Stage 2: Change - or Transition

The next step after unfreezing is the change or transition. It's the inner activity or trip we make in reaction to an alteration. This second stage occurs even as make the changes that are needed. It is said that is the hardest step as people are uncertain or even fearful.

It's not a easy time as people are studying the changes and have to be given time to understand and use them. Customers are being backed by providing a full training and training. Using role models and allowing people to develop their own alternatives also help to make the changes. It is also really beneficial to keep communicating a specific picture of the desired change and the benefits to everyone in the organization.

Stage 3: Freezing (or Refreezing)

Kurt Lewin refers to this level as freezing although a great deal of people make reference to it as 'refreezing'. As the name suggests this stage is approximately establishing stability after the changes have been made. The changes are accepted and become the new norm. People form new interactions and become comfortable with their routines. It could take a great deal of the time.

In the modern world of change another new change can happen in weeks or less. There is just no time to settle into comfortable routines. The rigidity of freezing will not match modern considering change being truly a continuous, sometimes chaotic process in which great flexibility is demanded.

Organization change in ASDA

ASDA was the second largest supermarket store in britain in 2005. ASDA has placed itself as a affordability store on the market. Slowly they extended themselves into attire, catalogs, CD's, groceries, and other various household items. Within the same calendar year they got award for the cheapest price supermarket. The competition of ASDA like Tesco and J. Sainsbury were also seeking to raise the market position by increasing themselves in to the financial products, newspaper, pharmaceutical products, clothes and petrol. ASDA were getting the hierarchical structure. There have been eight levels up to the CEO of the store. These were layered like staff members, supervisor, department director, general store manager, regional businesses controller, section director, procedures director, joint managing director and leader.

ASDA were having the formal way of managing culture of the organization. They were using the bureaucratic way of management. The staff members are stored in separate part of the headquarters to the most notable executives. The major issues were handled by the very best executives only. It had been seen that the communication pattern between the hq and the stores was one of many ways with top-down management style. They were using the centralised distribution but still there customer amount was declining quickly. Regarding the grade of food that they had tried their best to provide fresh food to the customers but still these were not able to convince the customer up to the expected levels. So these were facing the complexity problem in the management. ASDA did focus on recognising their durability through using well IT, up to date effective syndication system and good operating management.

To increase the ASDA management they tried out to remove the way too many tiers of the management and creating thin structure to better understand the organization. They generate many changes in the business like:

They started focusing on increasing the purchase price competitiveness

Redirection the number and breakthrough in store productivity

ASDA started creating the higher amounts to improve in conditions of trading

Restoring the customer flow

They tried to reduce the permanent cost % to sales and raise the traffic delicate purchases


As the market is not stable, it's changing every day. The organization needs to be such versatile which it can maintain steadily its position on the market. Considering the ASDA they may have well established themselves. With the changes throughout the market these are changing their strategy and rivalling on the market. Analysing the competitor's strategy ASDA has adopted the several strategy of low price. They may have stabled themselves in creating higher volume of products with low prices to get majority of the client on the market.



McGregor Theory

According to McGregor, director of firm posses two different assumptions about the real human nature. He explained these two assumptions in two different theories: Theory X and Theory Y

According to theory X

The human being has always being inherited for the disliking of the task. They always stay away from the work either they can do or not. Corresponding to him, managers always feel that their workers are lazy. Manager has to compelled, direct and manipulated his people to do work. On this management, usually managers use to punish and threatened their workers to get the work done. They curently have thinking that individuals avoid taking the duties for the task.

Whereas theoretically Y the manager uses a positive way of approach to get the task done. Relating to them just the external threatening and punishment is not just the best way to bring efforts to attain the objectives of the business. They have a mind set about their workers they are accountable for their work plus they take the duties by themselves.

Leadership in ASDA

ASDA believes in developing its people. They provided tons of opportunities to its people to develop the command quality. They believe in McGregor theory y. They totally have a good strategy towards their staff handling. ASDA arranges many programmes for the development of their people. They create awareness among their employees to assemble information about different fields. The employees working as ASDA either singularly or working as a team learn to face challenges. The different method adopted by ASDA is that they make different teams and make them competition among themselves by giving the same process and therefore see their performance by the results gained for the betterment of the business. So such as this ASDA do plenty of work in bringing their workers the self-esteem.

Critical analysis

Looking at the solutions used by ASDA to get management quality in their workers maybe it's analysed that they are working for folks. They are successfully achieving their aim for of earning the earnings, good image and relationship using their customers as well as employees.



Frederick Herzberg was a well well known American who proposed the idea behind the managers thinking about drive at the job. He has given a content theory which points out the factors of a person's motivation by identifying their needs and desires, what satisfies their desires and needs and by building the goals that they pursue to meet these needs.

He aspires to determine work situations where in fact the subject matter were highly encouraged and satisfied somewhat than where in fact the contrary was true and his research was later matched with many reports including a broader sampling of specialists. Herzberg separated his factors of desire into two parts called Cleanliness factors and Desire factors.

The Cleanliness factors can de-motivate or cause dissatisfaction if they're not present, but do not very often create satisfaction when they can be found; however, Drive factors do motivate or create satisfaction and are rarely the reason for dissatisfaction. The two types of factors may be outlined as follows as a way worth focusing on:

Hygiene Factors (leading to dissatisfaction):

Company Policy


Relationship with Boss

Work Conditions


Relationship with Peers

Motivators (leading to satisfaction):



The work itself




The dissatisfiers are hygiene factors in the sense that they are maintenance factors required to avoid dissatisfaction and stop employees from being miserable, but do not create satisfaction in themselves. They can be avoided by using 'hygienic' methods to prevent them.

From these It really is clear that the factors in each are not actually opposing i. e. the satisfiers aren't the opposite of the dissatisfiers. The opposite of satisfaction isn't dissatisfaction but is 'no satisfaction'. Both lists contain factors that lead to desire, but to a differing extent because they fulfil different needs. The Health factors have a finish which once fulfilled then stop to be motivating factors while the Desire factors are much more open-ended and this is excatly why they continue steadily to motivate.

He also developed the concept that we now have two distinct real human needs:

1) Physiological needs: staying away from unpleasantness or discomfort

2) Psychological needs: the necessity for personal development fulfilled by activities which cause one to grow.

Herzberg believed that the Hygiene factors creating no satisfaction are not applicable to the duty a worker undertakes but are external to that task. They will be the Adam part of the concept where a motivation may be attributed to a fear of punishment or increase in discomfort or as he phrased it 'A Kick the Ass' (KITA). He thought these have work but only as short term motivators e. g. constantly increasing someone's salary to inspire them will basically cause them to become look for another wage climb and nothing at all else; however, salary may also be a de-motivator where the worker perceives it to be too low or low compared to that of their peers. The permanent motivators will be the Abraham part of the concept that lead to satisfaction and are intrinsic to the work itself and the work design.

It is important to comprehend that the two types of factors aren't mutually exclusive and that management must make an effort to fulfil both types of need for an employee to be truly content with their job. After the Hygiene factors have been satisfied providing more of these won't create further inspiration but not gratifying them may cause de-motivation; unlike the Drive factors where management may well not fulfil most of them however the staff may still feel encouraged. Major companies have recognized this situation when designing their methods of reward and reputation.

Probably one of the most crucial ideas that Herzberg postulated based on his studies of satisfaction is that of 'job enrichment'. This is actually the addition of different tasks to a job to provide increased involvement and discussion with this job. It really is obviously a continuing management process:

The job must use the entire capability of the employee and provide them with sufficient challenge

Any staff who demonstrates a growing level of potential should be given correspondingly increasing degrees of responsibility

If a job cannot be designed to use an employee's full ability management should think about utilizing someone of smaller skills or perhaps automation of the duty. If someone's skills cannot be used fully they'll experience issues with motivation.

Motivation at ASDA

The employees at ASDA are being encouraged intervaly. The business makes sure that that all the needs of the associates are fulfilled and they're satisfied in order to work properly without the concern with demand of the economy. The ASDA provides worker on job training which tell them more about the new technology being used and helps in building their self-esteem. In case the people self-esteem is achieved the person has a thinking that he has gained in his life all the needs he want.

Critical analysis

ASDA has done good job in motivating its employees but it might do more by giving many options in front of them. They are able to motivate their employees more by increasing the slary time to time and in line with the level of the work done by the person. They are able to give various gifts to their employees which can only help ASDA to make good marriage with the employees.

Well I believe Tesco possessed done a great job in terms of motivating their employees. If the essential need of a person is fulfilled properly the guy can perform well at his/her work. Tesco is making their full work to fulfil their employees need by providing them various techniques and gifts. For this reason their employees will work properly.

Training and development

a)Theory behind training and development

Frederick W. Taylor. Taylor was the first modern efficiency expert in world background. Throughout the Twentieth Century, he formalized the concepts of Scientific Management and developed a set of ideas made to get employees in making industries to produce more productivity. Scientific training is one of the most crucial principles of technological management. Corresponding to Taylor an organization should trained its employees more of scientifically rather than departing it to themselves because Personnel do not by natural means enjoy work therefore need close guidance and control. Taylor's procedure matches with the idea of an autocratic management style (professionals take all the decisions and give purchases to those beneath them) and Macgregor's Theory X method of workers (employees are considered lazy and desire to avoid responsibility). It seeks to unearth and cultivate workmen's endowment, let them hold the best performance in their work and acquire the highest efficiency farthest. At crew level there is considerable preliminary and ongoing training that is regularly applied to everybody in the business, whether part, full time, hourly paid personnel or salaried professionals having their compulsory restaurant training? Scientific management has turned into a more powerful advantage for a company to increase its efficiency.

Training and development at ASDA

ASDA has a strong notion on providing training to its employees. It offers always tried to build up some new skill in the worker such that it can do its best in the foreseeable future and becomes the person in the company because of its betterment. When a new staff is hired there is a proper induction program held where the employee is released to the organization also to the other users. Then there's a 12-week on job training provided by ASDA trainer who will try to generate the correct skills necessary to do the various job in the store. Even during the training the worker was created to take a seat with the administrator and observe how they work in the company. once the training of this department of the individual is completed the trainer makes sure that the worker is also ensure about the other valuable knowledge required to become the area of the company. After the worker is trained, ASDA don't believe that the job is performed it tries to update their workers on the standard basis and see how they are executing. For the development of individuals, several programmes are presented by the business.


ASDA is spending a great deal on providing training to its employees. They may be taking training and development as an important part of these business. With the help of proper training and development its employees are more comfortable with the surroundings and they're able to handle the customers very well.


I believe to begin with customers create some expectation of value and then they commence to make a purchase on the idea that whatever they perceive the merchandise or service, must provides benefit in conditions of the full total cost involved. This might include not only enough time, but may be some initiatives and challenges. Therefore a much better customer value is provided when the customer is favorable in the merchandise received from us in comparison to the same product with the competitors. And ASDA has proven this in comparison with Sainsbury or tesco.

Taking into account the goals of ASDA I sensed that to a large extent that they had fulfilled their aims. As one of the important objective is to be internationally accepted by the clients. They are placing a good image in front of the customers by preserving a good relationship and remember the fitness of their customers as goal.


I examined the organization and the type of the work in the ASDA stores, the career romance and the characteristics of the labor force in U K.

After doing research on the organizational behavioural issues at ASDA I really believe they must more highlight on human requirement and performance standard because that could help human reference to make better job explanation and job specification. Increasing transparency can help clarify rumours and invite visitors to understand the ASDA perfectly.

As significantly as I've seen ASDA is using craze analysis way for future forecasting if computerized forecasting is done instead of it, they could save time as well as they would know better about their employees through computerized system.

Moreover the recruiting and selection process in ASDA is very fine but nonetheless I believe while recruiting communication skill of the staff should be the first goal as it's a field where communication with customer's needs a lot in making good romance with customers.


ASDA has always tried to fully capture the major market by focusing on the lower category and middle class people. By using this strategy they could contend with the other major player in the market like TESCO. Most of all the greatest gain is the eyesight or the desire with that your company was started. Sustaining this desire through the years is any companies' most significant advantage. A brand usually revolves around this eyesight sustaining this eyesight and employed in lieu with it is a great SCA. The vision was to provide quick service, cheap products and quality satisfaction. Although the task offered at ASDA have some positive elements, but frequently people choose work there in context of having few attractive options. ASDA manages the employee's romance with a complete spectrum of adjustments, from simple, direct control buttons to the management of subjectivity.

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