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I will talk about Asda which is a private limited company, and look at how it has change in response to changes in the business environment

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MD- Shakil Islam 12IB2 Unit1: Business Purpose Distinction tasks D1 Evaluate how a businesses organisation has responded to changes in the business environment Introduction For my distinction task I will talk about Asda which is a private limited company, and look at how it has change in response to changes in the business environment. ASDA is the second Largest supermarket chain in the United Kingdom, it offers food, and clothing and general merchandise and it is the subsidiary of the largest retail company the Wal-Mart. Asda response to changes in the business environment ASDA Group Ltd. operates as one of the largest food retailers in the United Kingdom. The company's stores sell a wide variety of merchandise including food and apparel, along with housewares, music, videos, and books. Asda has been wholly owned by Wal-Mart. Asda had been mirroring Wal-Mart?s strategy for some years before it happened. The takeover has far-reaching consequences for British retail as other companies react to it and find new ways to compete. ...read more.


To relieve the situation Archie Norman was recruited from Kingfisher as the new chief executive, and Asda returned to its roots as a food retailer, standing out from the crowd by being significantly cheaper than its three large rivals. This was achieved through concentrating on prices instead of loyalty schemes. In 2005, there was a report concerning within Wal-Mart about a slippage in market share, partially due to a resurgent Sainsbury's, Asda's chief executive, Tony de Nunzio left, and was replaced by Andy Bond. In 2005, Asda expanded into Northern Ireland by purchasing 12 Safeway stores from Morrisons. Asda was following and copying Wal-Mart practice through most of the nineties. So to understand the changes Asda is going through and their consequences we must take a look at Wal-Mart. Planning laws currently make it difficult to develop hypermarkets and Wal-Mart style supercenters in the UK. However, with businesses continually lobbying the government and finding loopholes in planning law, they are not out of the question. ...read more.


On the other hand, Asda supermarket stores as they now have become one stop shops for food, clothes, and electrical goods and so on. The reasons behind the changes are considered by customers. Conclusion ASDA is one of the retail giants in the UK; the company?s strengths include the fact that it already experienced being on top and being in the low therefore, the company is more flexible and can be able to surpass the incoming problem. Another is the strategy wherein prices of the products are being priced very low. However, the company also has its weaknesses such as it wasn?t able to saturate the whole UK and it also has internal problems with the employees. The threats of the company are its competitors because these companies are also following the steps that ASDA had undertaken and are more aggressive than ASDA. On the other hand, there are also opportunities such as the expansion of specialty department and the Georges the apparel of the company which has been growing in sales and even expanding in other countries. Read more: http://ivythesis.typepad.com/term_paper_topics/2009/07/business-report-examining-asda.html#ixzz1eHXVMrF6 Mr Naser Page ...read more.

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