People with good income, may want luxury products and Asda provides these to. At Asda, customers can pay by credit or debit card, cash and cheque too.
Asda also offers wide range of facilities, Such as:
- Offering credit
- Delivery o your home
- Internet shopping
- Car park (the big Asda’s)
I believe Asda is very successful at meeting its objectives. I myself shop from Asda and so does my family.
GOING TO DO SOME GRAPHS. COMPARING THE PRICE OF PRODUCTS FROM TESCO AND MY CHOSEN ORGANISATION, ASDA.
What information might it need to access its success at meeting its objectives.
Financial Overview
Asda will need all the above information to access whether it’s meeting its objectives. They can tell if they are meeting their objectives by looking at the annual report. The annual report table shows that the sale has been increasing every year. This is realty good because Asda is making good profit. I would say, making profit is Asda’s main objective.
The financial overview shows me that the annual sale has increased quiet rapidly over few years. Since2001, the annual sale has increased over 7000 million within 3 years. This is excellent because it means that Asda’s objectives are being met. Also, this must mean that the staff are hard working and must be fully trained to achieve all this.
The increase was not as much between 2001 and 2002, this must mean that Asda wasn’t as successful as it is now. This could also be because, Asda only opened up in the Uk in1999, and it is well known now.
It is very important for Asda to see how well they are working towards there objectives. Asda looks at useful information to see how they are progressing towards their objectives. Information that Asda might need to access its success at meeting its objectives are:
- To meet customers needs effectively by providing an outstanding quality and choice – in order to find if they are meeting this objective effectively, Asda could ask its customers based on the store, they could ask the customers if they are satisfied with the goods and services at Asda. Question such as, ARE YOU HAPPY WITH THE GOODS AND SERVICES AT ASDA? Personally, I think that Asda are meeting this objective quiet efficiently. But this doesn’t mean that they are meeting every single individuals needs. Only the person him/herself can say that.
- Deliver great service to its customers – in order to find out if Asda is meeting this objective, Asda could look at how many customers it attracts a day. If Asda attracts a lot of customers in one day than this means that Asda is achieving this objective. However if the number of customers decreases each day, than this means that this objective has not been achieved Yes, I think this objective is defiantly being met. This could be due to the fact that more and more people are getting there shopping delivered to there home.
- Competitive costs and market share – to find out if Asda is achieving this objective, Asda will have to research what prices other supermarkets sell the same product for. To find out the market share of other supermarkets, Asda could look at the website of the other supermarkets, such as, Tesco or Sainsburys. Yes, this objective has been achieved. I know this because Asda has got the highest share at the moment.
- To make profit – this information is not really difficult for Asda to find because the finance department records if a profit or loss has been made in a period of time. By looking at these records, Asda could easily see if this objective has been achieve or not. If a loss has been made than Asda has to take serious action as profit is very important and without it business cannot be repeated. This objective has been met successfully because Asda has expanded and opened up more stores with its profit.
- Provide shareholders with good sustainable financial return – Asda will have to look at the passed years records and see how much money has been given to the shareholders and how much will be suitable to give this year. I couldn’t find the relevant information to know whether this objective has been met, so I cannot judge whether it has or has not been met.
- Expansion – in order to achieve this objective the information that Asda needs is how they are progressing, this includes making a lot of profit, if Asda is making a lot of profit than expansion is possible. Asda has opened up 262 new stores in the UK since 1999. This shows that Asda is successfully meeting its objectives.
- Serving the community – Asda could do a research on what charities or what educational support need support or help.
Asda cares for its environment because it gives money to the ‘Tickled Pink’ breast cancer care. Asda has already raised over £1 million. In November 2002, Asda raised £1.2 million for BBC children in need. It is still continuing to support BBC children in need.
- Caring for the environment – in order to achieve this objective Asda could follow how its members of staff are keeping the environment clean, a manager could go around the areas of the store and see if the staffs are keeping the areas clean. Asda could also focus more on training staff to keep the environment clean and safe. This objective hasn’t really been met to the standard that I think it should be.
- To provide a working environment – Asda could focus more on the training and development section and see if they are doing any discrimination to the staff. Asda could also ask their customers questions about how they are treated in the store by members of staff. This objective needs to be concentrated on a little bit more.
Describe the main functions/areas in your business.
For this task, I am going to describe the main functions of Asda.
The functions that I will describe are as follows:
- Finance Function
- Production Function
- Marketing and Sales Function
- Human Resources Function
Finance Function- The finance department of Asda is responsible for financial record keeping. Money received and paid out, either in manual form or on computer file. The financial records maintained will be used to produce the financial statements for Asda. The financial department may also oversee the payment of wages and handling of cash by the cashier. The financial department is also responsible for the management accounts of Asda, showing how well Asda is performing in terms of income and expenditure in comparison with budgets prepares in advance. Also, this function prepares all final accounts from these records and monitors the income and expenditure of different departments against their budgets.
Production Function- If a business is manufacturing a product; the manufacturing process will need to be strictly controlled in order to:
- maintain quality and keep production on target
- monitor efficiently of production methods
- ensure purchasing obtains material from the right supplier, at the right time, at the right place, and at the appropriate quality
Asda makes its own food within the store. E.g. pizza, takeaway and pasta.
Marketing and Sales Function- Asda’s main objective is to satisfy its customers. They can do this by having their needs at the right price. It means researching what the customer wants, and investigating how the business can satisfy that need. Selling involves persuading the customer to buy the products the business has already produced. This function also promotes new products and advertises. E.g. Internet
In many successful businesses like Asda, marketing is considered much more than just a separate function. At Asda, the staffs are highly focused on fulfilling the customer needs. Staffs are also keen to find out what else they could do to keep customers happy and what additional needs the customers may have that the staff doesn’t even know about.
Asda always tries to be one step ahead of the customers and their competitive rivals by anticipating needs and fulfilling them. It also puts the customers at the top of its priority list in every single operation it undertakes which is very important factor in the future of the business.
Human Resources Function- The human resources function at Asda fulfils a number of needs. It is responsible for the hiring and firing employees, for staff training and development, and for dealing with matters relating to industrial relations. It is a very important department at Asda. This is because it is concerned with employees who work for the organisation.
Also, if an employee is not motivated or not really interested in working, then they will only do the minimum work required which means, Asda needs to train there workers more efficiently and make sure that the employees are working to there high standards. The senior person can always keep an eye on its workers. But, if an employee is very keen to do their best and is motivated, well trained and committed to the objectives of Asda, than Asda will defiantly become successful.
Finally, this department ensures that Asda is operating within the law in relation with employment and health and safety.
This is why human resources are so important to a large organisation like Asda.
Organisational Flow Chart
Finance Sales Customer Security
Service
Administration Marketing Human Resources Transport
Employment Training
Recruitment
This is an organisational flow chart for Asda (Wal-Mart)
How does each function/areas help the business to meet its objectives?
All of these four functional areas help Asda meet its objectives in some kind of way. The finance function helps Asda meet its objectives quiet successfully. This is because that particular function deals with all the money going in and out of Asda. It can clearly state whether Asda is making profit or not, or even how much and when. If it’s making good profit then this means that the customers are buying products of satisfaction quality.
The different functional departments interact with other departments to achieve the objectives of Asda by linking with other functional departments.
The finance department in most ways is the servant and the master of all the other departments in Asda. The function of arranging and controlling the supply of capital which allows the other departments to then carry out their own functions. Without capital, materials cannot be bought, this will result in goods not being produced, therefore revenue will not be earned because there will be nothing to sell.
The finance department meets quiet a few of Asda’s objectives, such as, increasing sales and market shares. Finance department meets this objective by keeping its employees happy at work; furthermore, they do this, by giving them good wages. Also, if the employees are happy, than they are more motivated to work and that way Asda makes more profit because of the effective work done by the employees.
There are also a lot of responsibilities in the finance department because, if on the other hand the production department fails to keep costs under control or the marketing department fails to attract sufficient demand for Asda’s products, it will be up to the finance department to identify the financial problems and demand that action will be taken.
This way finance department may help Asda to set and keep its objectives, particularly when these objectives relate to such financial targets as maximising revenue or profits.
Marketing links with other functional departments: -
- Human Resources: the number of different job types in the marketing department mean that human resources will be involved in recruiting the best people and retaining them.
- Finance: advertising budget can be a large part of Asda’s expenditure. The finance department will be keeping an eye out, looking for best value for money and cost effectiveness in advertising and promotion.
- Production: if an advertising campaign wants to be or is going to be successful, then the production department must be kept informed, so that they are ready to meet any increases in demand by the other departments.
- Administration department: without the administration department the day to day tasks of running a business would not be done and the company would slowly grind to a halt.
The production function has just about met the objectives of Asda. This is because it has started to sell fresh cooked food such as pizza. It provides good quality goods and services. Marketing and sales function has also met its objectives because there’s an obvious sale growth because of its good offers and prices. Also, its advertising is very effective and useful too. Asda can retain some of its profit if it advertises properly the first time round.
The human resources function has met its objectives. I know this for certain because it is employing more and more people. Also, the employees are satisfied and happy. This may be because Asda provides training, uniform and development.
Overall, all these four functions help run Asda smoothly.
Describe the business culture of your business.
Management Style
If a business is to succeed in achieving its objectives, it is essential that these are built in to its culture. They must be adopted by the entire work force, which is the task for the management of the business, which is Asda.
Management style can have a significant impact on the way people work. By adopting the right approach employees are likely to be more motivated and show greater commitment.
The correct management style will depend on factors such as the task, the people involved and the amount of risk. There is no one style, which is always appropriate. Therefore the context of the business case is relevant.
Autocratic style – the head office make all the decisions by keeping all the authority to themselves, they do not delegate much or share information with employees. Employees intend to be less motivated.
Democratic Style – The democratic manager allows the employees to take part in decision making. Employees tend to be more motivated and this style also suits a flatter business structure, which has many layers through which communication has to pass.
Laissez Faire style – The manager here allows the workforce to get on with whatever has to be done and has little input in the way of directions or control. Suites a small teamed structure.
The culture of Asda is built on manipulation to customers and some organisation. Advertising posters, adverts and the Website that Asda produces does this. Although, Asda may try to mislead people who work for them and some who shop from them by attempting to make them think it is a democratic style organisation, when in fact it is an autocratic styled organisation.
We know that in order for an enormous firm to work properly and efficiently, somebody has to be at the top of the triangle, and that is the Chairman of Asda.
This means that Asda is an Autocratic Style run firm, which needs a leader to declare when things need improving or changing.
To have an Autocratic Style based business like Asda, it should contain certain conditions such as:
- Managers always make decisions
- They are always obeyed by employees
- The employees are less motivated as they are told what to do and when to do so
- Hierarchical structure, there is a boss on the top and employees are structures at the bottom
Still, businesses that are run on a Democratic Style culture have a similar company working fundamental. Democratic style firms rely on the managers to make decisions but staffs are consulted on all decision making. Employees are more motivated and the hierarchical structure is more flatter than the Autocratic structure, plus Asda does not make decisions by itself, it discuses issues with other departments.
On the other hand, management styles like laissez-faire approach has less effect on the companies organisation skills and quality service. This laissez-faire approach will be sufficient in a corner shop. The employers make decisions by them selves, and tend to be unproductive. The structure is mainly accomplished as working as a small team.
Organisational Culture
An organisational structure shows how employees can cope individually within a firm relying on rules and guidelines given to them: -
Role Culture Hierarchical structures
- Reliance on rules and procedures
- Tasks are clearly defined
- A clear chain of command
Task Culture Matrix structure
- Task or project based
- No formal hierarchy
Power Culture Company with dominant chairman
- Strong central figure
- Decisions taken at the top
Person Culture Professionals
- No formal structure at all
- Back-up for an individual
I have analysed Asda’s stores and have realised that, although they may come across working as a Democratic working environment, they still function as role culture and power culture. We now know that Asda, as a working business has hierarchical structures, which tells us that it has an order of operation.
Describe the use of ICT in internal and external communication in your business.
Internal communication is communication that takes place within the organisation, while external communication takes place between the organisation and the outside world.
Both internal and external communications have been transformed by rapid developments in information and communications technology. The modern organisations like Asda have: -
- A linked internal communication system – an internal network
- Links with customers – a system with e-commerce
- Links with other businesses – e-business
Together these links create what is called the networked economy, which vastly increases the potential of business to connect with employees, customers, other businesses and shareholders.
The three main ways of communicating information inside an organisation are verbal, written, and electronic.
Verbal information – is communicated in face interactions, through telephone messages using answering machines and voice mail. Although verbal information can be obtained quickly it often needs backing up in written form.
Written information – will cover a range of paper documents that are exchanged within the organisation (including memos, letters, brochures etc) Written information takes time to process and often requires extensive filling and distribution system.
Electronic information – is rapidly replacing other forms of communication. E.g. a stock list can be transferred electronically from a supermarket to its head office. A large organisation like Asda uses an internal networking system.
Nearly all networks have an email facility and this is used to send documents in electronic form around the company.
Business and companies need to have a good communication link with many of their supplier’s shareholders and customers. This is done in one of two ways. These are the two types of communications, which are internal and external communication.
Internal communication
This type of communication is done within Asda. The main methods of internal communication are through meeting with the suppliers and other managers and departmental managers. These meetings ensure a smooth running of the business. The main types of internal communication are as follows: -
- Meetings (Monthly briefs) – These are good because the company bosses can sit down together and discuss the problems or whatever may be going on and if there are any questions, then they can be asked and hopefully answered. This will result in that question not being asked again and again. Also, if the boss wants to talk to all the employees, it is easier to hold a meeting before or after a shift and talk to everyone at the same time. At Asda, a briefing goes out to all colleagues, which take the form of a personal presentation. It starts with a five minute Asda News Video slot, where colleagues learn about top line performance. After the video, a briefing might be held if needed. In the briefing there will be a discussion of any issues, which require the input of colleagues at floor level, and not just management.
- Many businesses have their own private, internal websites. They behave exactly like Internet websites and rely on exactly the same technology. The difference is, they are not accessible to the world. They are far more significant than the more widely available Internet. Asda’s Intranet is totally customised to serve the interests of the company and can be directed to help employees perform their tasks more efficiently.
- E-mail – This is a good way o communicate when you want to send a large amount of data or want to type a short message. E-mail is an instant method of sending messages and can save a company large amounts of money as the cost to use the Internet is the price of a local rate phone call and most companies now have a dedicated internet line which is always on connection.
Eg:- NTL, BT line.
- Memos – This is a method I would personally choose to communicate within a business, as the message is likely to be read rather than E-mail.
- Notice board – This is also a good method of communication within a business as the notes can be pulled off the board when you have a message there. This means that the sender knows that the message has been received.
- Letter – This is a more formal way of communicating with employees and/or suppliers, it can be in as much detail as the writer wishes to put and is usually sent from boss to an employee.
- Telephone – This is possibly the best method of communication as the caller can speak to the person whether they ate in an office or out of the office with the use of mobile phones.
External communication
This type of communication is done outside the business and is done with the suppliers, shareholders and customers. The main types of external communication are as follows:
- AGM – Annual General Meetings, these are done between the shareholders and the company directors. This is a formal meeting where new directors are voted in for the next trading year, this helps the shareholders of Asda to have a better knowledge on the business and how it is operating.
- Fax – This is a method used to send data through the telephone line, it is good for sending order forms and invoices.
- TV Advertising - This is good for communicating with the customers, as the special offers will usually bring customers in to the store to buy. The customers also get to see the product that they want to buy.
- Internet – The Internet is a worldwide network of computer networks. Any computer connected to the Internet can communicate with any other. This powerful concept has become possible because of the wide spread availability of cheap computers and global adoption of common standards. The external customers can communicate with Asda through the Internet using many different things, such as. E.g. e-mail or msn. Asda has loads of different kind of information on its website. It is quiet interesting because it has information about Asda’s financial services, online shopping, customer service, recruitment and loads more. By having all this on there website, external customers can see what Asda provides and may just like to browse around on there website.
ICT is information Communication Technology. What it means is that it is the use of information technology to communicate. The main methods of the ICT in business today are the use of e-mail, database, spreadsheets, word processors, Internet and Intranet, fax, mobile telephones, mail merge and accounting software.
ICT has had a big impact on the way in which Asda runs, when communicating both internally and externally. Asda use a system called
EPOS, which they electronically order things from their suppliers, when it is running low. This saves time and money.
The main benefit of ICT to Asda is that once it is installed in the work place it makes life a lot easier for everyone. It makes the process quicker and is cheap and reliable. The only errors to come out of a computer are those that the human user enters in to it incorrectly.
The computer can store large amounts of money because it can do many jobs at any one time. This means that less staff is needed. The computers also do the jobs of manual workers (e.g. stock checks can be done by the computer, whereas before, a member of the staff would have to check it.)
ICT is also used when advertising, recipes and current promotions are put on Asda’s Website. This is cheaper than advertising on the television, although Asda could not rely on this alone. They also send e-mail addresses from those who have nectar packs. Computers make communicating wit people who are in the office quick and convenient with the use of e-mail. Main methods of ICT used by Asda are the following: -
- Electronic mail – the use of e-mail within Asda means that their systems are efficient and quick. E-mail means that they are able to communicate better with the rest of the business and are able to pass on jobs and ideas to each other with ease. This is a cheap and good use of communication, it is very effective for the employees to interact with each other. It is a more effective way of sending letters.
- Word processing – this method is used for typing letters to cancel or amend an order, records of letters sent can be kept on the computer for reference purposes or if a complication arises. Asda could use this to write letters to other employees, so a record of that can be kept if chosen to.
- Spreadsheets – this method is mainly used for handling numerical data; from the graphs produced budgets and forecasts can be predicted. Asda could use to keep statistical data and numerical data of the accounts.
- Database – This is ideal for storing customers and supplier’s data. Many different databases can be created for the employees, and for suppliers. The employee database can hold information on anything, mainly the salary and if the employee is due for promotion. Database can store customers details so each time the customer uses their loyalty card, it gets stored in the database.
- DTP (Desktop Publishing) – this is used for drawing or designing a product. The pictures, images and graphs can help make posters or just to display the financial reports.
- Enhanced Telephone System – this is a telephone system, which directs calls to different areas of the office. The oe4rator handles all the incoming calls. The telephone has 10 – 15 or more phone lines and can handle both incoming and outgoing calls.
- Fax messages – this is ideal when you want to send an order to a supplier or want information. It uses the telephone line to send papers and documents to the recipient. The same machine can also receive fax messages. Asda uses this to fax orders and receive invoices from the suppliers.
- EPOS – (Electronic Point Of Sale) – is used at Asda, it controls stock level and records new stock items when required, the computer automatically orders more. This has huge advantages, such as saving time and money, and even controls the number of transactions going through the till. Problems can arise if items are not scanned through the checkpoint properly. The introduction of EPOS means customers are getting served quicker because the barcodes on each item are different. Each transaction is recorded on the hard drive, all the data can be analysed, and this help Asda to see what products have been sold.
How has ICT helped or hindered internal and external communication in your business?
Internal
ICT has helped the internal communication at Asda by speeding up the whole process. The main advantage of using ICT at Asda, is that it speeds up communication and enables the workers at Asda to work more efficiently.
Also, the convenience of having ICT communication in the working environment is that many businesses can work more practically and
sensibly as advise and careful planning is in certain areas on the Intranet. E – mail communication adds up to be faster and less time consuming than memo’s, letters, and can be checked at free time whilst at work.
The disadvantage of using ICT within Asda, is that the Intranet system may crash or fail. If this happens, then it will be impossible for the internal staff to access their personal Intranet. This may result in many problems, such as: -
- can not access important information
- important data, information may not reach others on time
- an unorganised work environment
- lose important data or record/attachments
It could also be possible for someone outside the business to hack into their system, this can result in loss of data.
External
The advantage of using ICT to communicate with its external customers at Asda, is that it’s a lot cheaper, faster and satisfying.
Asda’s orders online, proves that shopping is much faster, convenient as it is your own home/work place. Also, on the Internet, there are loads more special offers and bargains, whereas in the stores, there isn’t as much.
The disadvantage of communicating using ICT with its external customers is, if the staff do not use the Internet to update customers on the latest offers than the customers may be mislead and this will cause loads of problems.
Also, Asda will be losing out because they wont be making as much profit as they should be.
From the office of National Statistics I found out that Asda is expecting to make a delivery every two seconds- two and a half times its normal rate of 12000 orders a week. However, on the Internet, hacking is a major problem for customers and there is a risk of loosing data when on the computer.
Evaluate how important organisational structure, business culture, management style and ICT are in achieving a business objectives and improving the performance of a business.
The objectives of staff in different parts of Asda may not always match the cooperate objectives because of personal interests or rivalries: -
- Sales staff may believe they do all the hard work while marketing executives merely dream up fanciful campaigns.
- Production managers may pursue products quality for its own sake rather than that required by the customers.
- Accountants will see budgets as an objective which others see as constraints
- Position power, for example that held by the chief executives personal assistant, may be used to filter communication. Informal groups may influence individual behaviour from formal objectives.
Asda’s success relies upon bringing staff together in a shared vision of what needs to be done and everyone’s role in achieving it. Diagrams of Asda’s hierarchical structure may give little clues about the reality of who is contributing most to business success.
The organisational formation that Asda (PLC) uses for its employers and employees are role culture and power culture. This is very important for Asda, as it is relying on a well-organised industry. However, if employees follow their position and the role given to them, then Asda will run smoothly. Also, if the customer service is good at Asda, then the customers will be happier. This will lead to repeat business and Asda will be making more and more money. (Profit)
This is the point when Asda is sure that they are meeting their objectives.
The management’s style and ability can have a significant impact on motivation and on how effectively resources are used. Good managers can bring about substantial productivity gains through well-organised work, the effective management of people and the coordination of resources.
Bad managers can lead to wastage, inefficiently and low productivity.
The management function that Asda uses to survive for its business such as, to please its customers on an accurate and well managed position satisfying all its trade and shareholders in one way or the other.
On the other hand, if the staffs at Asda are unhappy with the management in the stores, then this will lead to less motivation for many of the workers. The staff may show their lack of motivation by faulty body language, tone of voice and lack of eye contact. Customers with issues complain to the customer service and they may be able to resolve their situation/problem.
The autocratic style management mainly runs Asda (PLC) because it sincerely disciplines the workplace and presents the hierarchical structure throughout the business.
ICT helps Asda by communicating during working hours by making interaction easier as tasks are faster and more accurately done. The staffs at Asda are expected to work more efficiently with less hassle and show effectiveness in their work as fast as possible.
The fact that Asda’s best-suited organisation culture is role and power culture means, that all decisions are taken at the top and every individuals tasks are clearly defined. In this case, most of the top staff such as the manager is obviously the boss and the others have got to do what he/she says, which leaves them with no say. Personally, I feel that everyone should be able to have there say. That way the manager may get to know how to satisfy its employees as well as its customers. If the employees don’t work to the full potential, Asda may have to advertise for new workers. Again, Asda is spending money on something that could be avoided easily.
Describe it/how it works.
Adz/dis. Y its important
Different managemnt styles. Eg.auto dem
Y its guud/ not
Effect of it. Thennn
Adz dis of autocratic
Cus serv online. Y ict is guud
Way of communication/ faster
Adz dis of it
‘Structure, culture style and ICT do not really relate to performance.’
Evaluate this statement using your business.
I do not agree with this statement.
The reason for this is because; some people may say that some companies do not live up to expectations and certain targets that they have set themselves. Also, many people may disagree with the fact that Asda has made various adverts claiming the best offers around. This is misleading information for the customers and others. However, I think that Asda so far, has lived up to I good expectations and will defiantly realise if it hasn’t. If that is to happen, than Asda will take action and at the same time it will still try and keep its customers satisfied.
The structure that Asda (PLC) has chosen to run by has a big impact on the behaviour of the company and its survival. Its organisation structure is firm, that’s why I can clearly state that it’s a multi billion, fast growing organisation.
The business structure that Asda leads upon is the autocratic style discipline. Although, Asda makes sure that every trade is happy and always tries its best to ensures customers satisfaction. It still has a lot improve, on in its various departments. For example, Pharmacy, long queues, special offers and customer service.
The autocratic style management, guarantees that all workers do exactly as required although, Asda makes it seem like they are democratic style organisation at its customer service desk. Some people may argue that Asda gives the impression that they certainly are a democratic style company; this is because the workers and customers do not feel neglected towards one another and are politely dealt with. This also means that the manager is in charge of everything.
Asda originally is an American company by Walmart, which opened up in the UK in 1999. It has been very successful since opening up in the UK. It has opened up 262 stores since 1999 all around the UK. Therefore, communication is very important for the progression of the company. Internal and external factors remain a big part of communication. Asda has created stores in the wealthiest parts of the world, such as America, Hong Kong and England.
ICT is a major part in interaction with different departments internationally and not just locally. Videophone may be another way of communicating at Asda. This is an advanced technology, which is not really used, but can be. Internally, it is mainly email and intranet. Externally, it is the Internet, where the customers can shop online.
In conclusion, Asda (PLC) has shown remarkable progress over the past five years. This will benefit the company throughout its survival and Asda will keep on trying their best to keep customer satisfaction as their main priority. It will carry on competing against few other outlets, but I am sure they will always meet their objectives because, there I assume there more organised than others.
What does adding value mean?
How does the quality assurance control system help to add value to its products or services?
Adding value is one of the prime concerns of any business, it converts inputs and outputs (finished goods and services) to satisfy the needs of consumers.
Adding value to a product means making it more desirable to the final customer, so the customer is willing to buy more products at higher prices.
The quality assurance control system adds value to its products or services because the quality of a product or service is the most important factor in determining its success.
E.g., Buying vegetables from the stall at my local market is cheaper than buying it from Asda in most cases.
The consumer always defines quality, it is more important than price in determining demand for most goods and services. Consumers will be prepared to pay for the best quality. Value is added by creating those quality standards required by consumers. In the context of quality, consumers judge a good or service in terms of what they actually get, not by what the producer hopes to provide.
Asda has a very interesting quotation, which gives us a useful indicator of the importance of quality: ‘We judge ourselves by our intentions, but others judge us mostly by our actions.’
Asda emphasises the importance of total quality management, which involves taking quality to new heights.
The inputs used are all the various resources needed to produce the goods and services required – the output.
E.g.
These are the three stages in the development of quality: -
- Quality control
- Quality assurance
- Total quality management
Quality control: Quality control is concerned with detecting and cutting out components or products that fall below set standards. This process takes place after these products have been produced. Quality control is carried out by quality control inspectors.
Quality assurance: Quality assurance occurs both during and after the event and is concerned with trying to stop faults from happening in the first place. Quality assurance is concerned to make sure products are produced to predetermined standards. The aim is to produce with zero defects.
Total quality management: Total quality management is concerned with creating a quality culture, so that every employee will seek to delight customers.
Some Companies might add value to increase profit for the business. E.g. Asda charges more for a cake, freshly baked, for 40p, whereas in a bakery, the same cake is for 80p.
This is the production process of adding value. The added value makes the product more profitable because it makes the product more suitable and convenient for the customer, therefore, customers are willing to pay more. Also, it is a one stop-shopping trip.
Asda adds value to products for businesses profits and survival. Even though Asda is a large organisation, it still has to survive for future purposes and has to satisfy customers. This is mainly why Asda is manufacturing goods at different quality and at different prices.
Asda produces quality for their customers continuously in all their products and services, this can be said because customers are walking out of Asda with a smile on their face and its not long when you will see them back in the store doing more shopping. (Repeat business)
Asda attributes towards training for their store on a consistent base because of the labour turnover. They discipline staff and give staffs certain situations to deal with within the working environment.
Asda has its own inspectors, who do daily checks on the products at Asda. Once they have checked their products and services, they let the specific department know of the improvements needed its suggestions. By doing this Asda can maintain quality.
Another quality control Asda has within its organisation is customer hotline. This is open between certain hours on certain days.
Using an example of a quality assurance control system from another company or from theory, evaluate how it could affect your business performance, e.g. meeting objectives, the performance of functions.
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