SWOT Analysis Of The Asda Store Commerce Essay

SWOT Analysis Of The Asda Store Commerce Essay The aim of a SWOT analysis is to identify the extent to which the current strategy of a company and its specific strengths and weaknesses are relevant to, and capable of, dealing with the changes taking place in the business environment. It can also be used to assess whether there are opportunities to exploit further the unique resources of the organization. It should also be remembered a SWOT is only a snapshot of a specific point in time. Given the dynamic nature of the modern business world, organizations need to continuously monitor their strategic position to ensure that their long-term strategies and operational procedures remain relevant to the needs of the market. ASDA Internal Strengths Financial Resources and Economies of Scale ASDA was founded in 1965 by a group of farmers from Yorkshire. Since that time the company has undergone many changes. In the early 1990s the company was in financial difficulty but was rescued by the leadership of Archie Norman. From this point onwards the company flourished and was eventually bought by the US giant Wal-Mart in 1999. Wal-Mart is on the largest companies in the world with huge sales revenue ($316 billion). This provides ASDA with two internal strengths: Financial Resources Should ASDA wish to develop more stores or diversify into a new range of products and services, Wal-Mart could provide the necessary financial resources to fund these new developments. This means that ASDA would not have to rely upon external providers (e.g. banks etc) to provide the necessary funds for business expansion. Economies of Scale Being able to charge lower prices on a consistent basis, is a key factor in terms of securing a substantial share of any market. Give the massive purchasing power Wal-Mart possesses, it is ideally placed to negotiate substantial discounts on a very wide range of products and services. ASDA can take advantage of these discounts. Diversification The profit margins on food items tend to be relatively low (e.g. 10 to 20%) when compared with other goods and services. Asda, along with its three main rivals (i.e. Tesco, Sainsburys and Morrisons) have diversified into other products and services in order to bolster their profitability. ASDA is also involved with financial services, clothing and property development. Clothing has proved to be its most successful element of its diversification policy. ASDA has its own range of clothing known as George. This is marketed as quality fashion clothing at affordable prices. It is estimated that George is the fourth largest retailer of clothing in the UK, after Marks and Spencers, the Arcadia Group and Next. Diversification into other products, services and markets provides an internal strength because it protects ASDAs profit base from very intense competitive pressures in the grocery retailing market. Employee Satisfaction / Environmental Issues Both of these items are internal strengths for ASDA. In 2001, 2002 and 2003, the company was voted a top 10 UK employer by the Sunday Times Top 100 Employers Survey. The company recognizes the impact it has on local and global economies. ASDAs long-term aim is to source 100% renewable energy. It is committed to reducing fuel emissions by 80,000 tonnes by 2007. It has already reached half of this target. It is converting its entire fleet of trucks so that they run on bio diesel. ASDA Internal Weaknesses Being Part of Wal-Mart Being part of the Wal-Mart group is double-edged. As outlined earlier. ASDA is provided with internal strengths by being a Wal-Mart company. However, in the United States, Wal-Mart has been in receipt of major criticism from a variety of influential sources over a number of issues. These will be discussed in full under external threats. Any form of criticism generates negative press and television reports ultimately this wave of dissatisfaction could spread to the UK. This would reflect badly on ASDA. As Wal-Mart is the parent company it can ultimately override any decisions made by the ASDA board of directors. Thus Wal-Mart could force ASDA to introduce new working practices based upon its American operations. These working practices could be totally alien to a UK workforce and possibly prove very difficult to implement. Employee Dissatisfaction In 2006 the company was found to be in breach of the UK employment law with regard to trade unions and was find  £850,000. Also in 2006 there was trouble when some Asian employees working in their distribution centres were asked to produce their passports in order to prove that they were entitled to work in the UK. This action led to claims that ASDA was acting in a racist manner. In 2005, it was revealed that in a survey, carried out by the company that only 1 in 4 of its staff shopped in-store. ASDA External Opportunities External opportunities would be identified by completing a PEST analysis of the companys external environment. Social factors offer ASDA a variety of opportunities to expand upon the range of products and services they currently provide. Life Trends / Demographics Despite fluctuations in market and trade cycles over the last 30 years, the average disposable income per head of population in the UK has risen steadily during this period. In addition consumers have become much more sophisticated and demanding. They expect to buy top quality products at affordable prices. Clearly ASDA has managed to satisfy the expectations of its customers with its George range of clothing. Given that ASDA currently holds 17% of the grocery retail market, being second only to Tesco; it has established a very strong presence and brand awareness within the minds of its customers. It is well placed to take advantage of changes in lifestyle trends and demographics, in terms of its capability to develop new products and services to meet the rising expectations and needs of its customers. Consumer Attitudes and Opinions / Consumer Buying Patterns / Advertising and Publicity / Brand, Company, Technology, Image These areas are closely related to life trends and demographics. As disposable incomes increase, ASDA need to influence consumer attitudes and opinions, and buying patterns, by reinforcing its brand image and customer loyalty, through effective advertising and promotion. A key aspect of having a large customer base is to encourage cross selling. Thus the companys overall number of customers may remain the same but over time the sales and profitability per head will increase. This will be achieved as ASDA expands the appeal of its products and services to all segments of its customer base. ASDAs External Threats The Anti-Wal-Mart Lobby There is widespread resistance to the further development of new Wal-Mart stores. Why? It is argued that the company undercuts local retailers by having goods made in developing countries (e.g. China and Bangladesh) in sweatshop conditions and then selling them at prices, no one else in the local area can compete with. Ultimately the smaller stores are forced out of business and Wal-Mart gains a monopoly within that area. Wal-Mart also runs anti-union campaigns. Since taking ASDA over in 1999, Wal-Mart has largely left the UK management team to get on with the running of the company. However, if it attempted to use some of its more aggressive policies in the UK then, as evidenced by the American experience, this would result in a great deal of damage to ASDA in terms of lost customers and poor publicity. Office of Fair Trading Investigation In 2000 an investigation into the domination of the grocery retail market by the four big companies was turned out. Since then, all four companies have adopted aggressive expansion policies. They now control 74% of the market. This time there is a groundswell which suggests supermarkets will not escape regulation. Tough curbs on their ability to expand, or even rules forcing them to sell off stores where they dominate, could be introduced. Stakeholder Mapping In order to determine how ASDA should move forward in respect of the findings from the SWOT analysis, it is necessary to construct a stakeholder mapping. This is necessary in order for ASDA to understand the support and opposition it will generate for a planned change. Opposition Support Active Opponents Passive Opponents Fence Sitters Passive Supporters Active Supporters High Office of Fair Trading ASDA Shareholders Stakeholder Power Medium Anti- Wal-Mart campaigners in the USA Various other groupings opposed to new retail developments e.g. local communities, local authorities ASDA customers Food manufacturers Low Association of Convenience Stores Other grocery retail customers Stakeholder Power Stakeholders all have power, whether it is the formal power invested in a position or authority invested in a social power of being able to persuade others to support or oppose the change. Those with the higher power are going to be ASDAs most useful supporters or most dangerous opponents thus power analysis will help ASDA to prioritize its focus on its stakeholders. The Office of Fair Trading (OFT) is a fence-sitter as it must remain impartial. The Association of Convenience Stores is an active opponent. This is because its members are adversely affected when ASDA opens up a new store. The Association has low power because its members cannot compete with the big four retailers in the market place. However, by building an alliance, it is possible for an opponent to move upwards and into the high power box. This is because the Association has requested to the Office of Fair Trading that an investigation should take place. How Active Opponents With Low Power Can Increase Their Power Status The anti-Wal-Mart campaigners in the USA are listed because there is nothing to stop the anti-ASDA opponents from forming an alliance with them. Forging alliances between opponents helps to make them stronger because they can exchange ideas etc. Plus several parties, acting as one body provides a stronger focal point in terms of raising media interest and public awareness. It must be remembered that a stakeholders mapping is dynamic and the position of the various parties on the map are likely to change depending upon what ASDA decides to do. If the company adopts the same aggressive policies as Wal-Mart in the USA, this will convert passive opponents into more active ones. Also such action could convert passive supporters into passive opponents. ASDA must consider all of its options before proceeding to take action. A Pre-emptive Strike To Avoid OFT Sanctions Probably the most effective course of action for ASDA to follow is to sell off some of its grocery retail stores and become more active in diversifying its range of non-food products and services. This would be a proactive approach and could possibly help the company to avoid any sanctions the OFT could impose. If it did pursue a diversification policy it could meet stiff resistance from employees who do not like change. Management and Leadership Theory The main reason why employees do not like change is because it causes uncertainty. For example, will I still have a job after the changes are complete? Will I have new responsibilities? And so on. When an organization is faced with massive change it needs to engage with its workforce and explain the situation in full. A variety of forms could be used by ASDA to deliver this message. For example, a newsletter, a series of presentations by members of the senior management team, question and answer sessions etc. ASDA would need to explain the implications of doing nothing i.e. the OFT would probably force the company to sell off some its stores. Such action will probably result in staff redundancies. By being proactive in terms of expanding its diversification policy the likelihood is that all of the staff would be redeployed within the companys new non-food retail outlets. Herzbergs Motivators and Hygiene Factors theory could be used to facilitate this change. The first stage involves hygiene (or maintenance) factors: Status Security Relationship with subordinates Personal life Relationship with peers Salary Work conditions Relationship with supervisor Company policy and administration Supervision The employees need to feel secure and confident about the changes that are going to be implemented. These are the hygiene factors which need to be addressed. They are merely a launch pad for more developmental work when these factors are damaged or undermined no platform for progress exists. The second stage involves using the following motivators: Achievement Recognition Work itself Responsibility Advancement Personal growth These items are used to encourage the staff and make them feel positive about the changes that are going to be implemented. In other words the staff should see how they are going to benefit from the new direction the company is pursuing. The process of motivating the staff to embrace change will be improved if they are actively engaged in developing the content and responsibilities that their new position will entail.

Reflective Paper Organisational Dialogue

Huhtamaki – Reflective Paper During the interview, the Chief Executive Officer (Brad) and plant manager (Simon) devoted a considerable amount of time to our communication analysis of their plant. I hadn’t expected two executives to become so involved with a University case study, and to discuss their credo, mission statements, strategies, and—of critical importance to me—internal communication strategy, in so much detail. Gerard & Ellinor (2001) stress that authentic leaders need to practise and execute dialogue, and to me, this was what Brad and Simon were doing: showing their authentic leadership through dialogue.I thought this may have been purely for our benefit, but after four hours, beginning with introductory meetings and followed by interviews and a shop floor tour, it became apparent that management was striving to develop a learning culture. I began to understand that management is about creating an environment to communicate through different me diums: verbal and visual in varying forums; formal meetings, face-to-face meetings, and graphical representations of key messages on the shop floor and around the offices.This essay will reflect my case study experience of the role of dialogue as a tool within Huhtamaki for fostering dialogic communication and developing a learning culture within the organisation. Furthermore, I will highlight the limitations associated with dialogue and with resistive employees who refuse to engage. I had a preconceived idea that management would have a top-down hierarchal structure, with a ‘closed door’ communication policy based on research from Swink & Way (1995), Downs & Adrian (2004) and Clarke (2006).On the contrary, I found management offered an ‘open door’ policy. For example, Brad and Simon understand that organisational effectiveness is dependent upon communication across subcultural boundaries. Therefore, they offer an open door policy, where any employee could approach them to discuss any issues without consequences. Given the traditional hierarchal structure of a typical manufacturing plant with leading hands, supervisors and union delegates, I thought allowing shop floor employees to communicate directly with management an unconventional approach.Schein (1993) states that dialogue begins with creating a sense of equality, and this is what Brad and Simon are striving to achieve within their organisation. According to my understanding, they are creating an environment where employees feel comfortable in communicating, and moving away from the erstwhile problems associated with communication via union delegates, which has often caused industrial disputes and created subcultural differences between management and shop floor employees. Amy (2008) states in her research study that management needs to adopt an informal and approachable communication style.I found it interesting that this is the strategy that Brad and Simon have adopted to aid in changing the organisational culture. In order to move away from a ‘them and us’ attitude, they focused on creating an open, trusting environment which fosters learning. Simon in particular encourages employees to be upfront, and to discuss problems or issues. However, he does not merely provide solutions: he fosters dialogic communication by engaging the employees with questions until they come to realise the answers themselves. I thought this might create awkward situations if the employees could not find answers.But my concern was dismissed; Simon coaches and mentors employees to think about issues or mistakes, and ensures they develop a solution for themselves, thus creating a learning environment. Management’s ‘open door’ policy was not the only means for communication. Management scheduled a daily team meeting, weekly production meetings, and monthly ‘tool box’ meetings, where organisational issues were discussed in more detail. My first impression was that there were too many meetings. When would employees have time to get any work done, if they were continually involved in meetings with colleagues from different departments?I soon learned that this was a necessary step, as not all employees have access to email. Management has to rely on face-to-face verbal communication to ensure that messages are communicated, received, and most importantly, understood. Furthermore, to communicate with employees with no access to email, management used the hallway between the cafeteria and shop floor as a ‘communication corridor,’ posting organisational information alongside safety, quality, production efficacy and operational information.I recall seeing very detailed graphs, charts and statistics, and wondered whether the average shop floor employee would be able to interpret and analyse this data. Simon stated that it was necessary to communicate the same messages continuously in order to engage employees , both verbally in meetings and visually around the work place. I discovered that during most meetings, unless an employee was directly involved in the conversation, he or she would not engage in dialogue. This concerned me; as Schein (1993) states, leaders need to motivate to engage, as employees may not volunteer to engage in dialogue.I now struggled to understand why was it so difficult to engage the employees in dialogue. They would not engage in dialogue during formal meetings and relied on informal face-to-face meetings, where quite often, they needed to be coached to engage in a two-way conversation to find solutions. I felt that management was providing every possible opportunity for employees to be able to communicate with employees, but nonetheless, a communication culture had not successfully been created.Gerard & Ellinor (2001) state that dialogue is not something that can be forced upon employees; they need to participate willingly, and if dialogue is introduced into a hostile environment, it can fail. I could see that management was creating a safe environment in which to communicate, but soon realised that other parts of the workplace provided a different type of ambience. Part of our communication analysis was a tour around the shop floor, and one of the first things I noticed was the difference in body language between various employees.It was very evident as we walked past their workstations that some employees were open and approached management, while others ignored our presence, creating a feeling of tension. It was obvious that although management was trying to dilute the ‘them and us’ attitude, some employees were still bitter from past experiences of management. I now started to fully comprehend the views put forward by Gerard & Ellinor (2001): that dialogue is a tool that requires time and knowledge of the working process. It needs to grow within the organisation.Although Brad and Simon have created a safe environment, the y now need to focus on educating their employees in the process of dialogue and the benefits of dialogue in order to create a learning culture. Furthermore, I support the recommendations of Dixon (1998) for management to engage employees and involve them in the decision-making process. I would expect the employees to thereby see their input as valid and valued; consequently, they would have a personal interest in creating a greater understanding of issues and solutions.In consideration of the fact that Simon has had some success with the ‘open door’ policy, and that Brown & Isaacs (1997) propose that learning is not happening during scheduled meetings or organised forums, but in less formal places, I still recommend developing dialogue during formal scheduled meetings. Management needs to focus on encouraging honest dialogue and transparency within formal meetings, as per Mazutis & Slawski (2009). I feel this is a valid point, as face-to-face meetings are limited to cer tain employees with whom management has good rapport.Employees who are resistive to change and still foster a ‘them and us’ attitude will simply not approach management. I came to believe that Brad and Simon are authentic leaders, and have the capabilities to shape the culture of their organisation through dialogic communication. Reference List Amy H. Amy, 2008, ‘Leaders as facilitators of individual and organizational learning', Leadership & Organization Development Journal, vol. 29, no. 3, pp. 212? 234. Brown, J. & Isaacs, D. 1997, ‘Conversation as a core business process', The Systems Thinker, vol. , no. 10, pp. 1? 6. Clarke, S. 2006, ‘Safety climate in an automobile manufacturing plant: the effects of work environment, job communication and safety attitudes on accidents and unsafe behaviour’, Personnel Review, vol. 35, no. 4, pp. 413? 430. Dixon, N. M. 1998, Dialogue at Work. Making Talk Developmental for People and Organizations, Center for Creative Leadership, London. Downs, C. W. & Adrian, A. D. 2004, Assessing organizational communication audits, Guilford Press, New York. Gerard, G. & Ellinor, L. 001, Dialogue at Work: Skills for Leveraging Collective Understanding, Pegasus Communications, Waltham, MA. Mazutis, D. & Slawinski, N. 2008, ‘Leading organisational learning through authentic dialogue', Management Learning, vol. 39, no. 4, pp. 437? 456. Schein, E. 1993, ‘On Dialogue, Culture and organizational learning', Organizational Dynamics, vol. 22, pp. 40? 51. Swink, M. & Way, W. 1995, ‘Manufacturing strategy: propositions, current research, renewed directions’, International Journal of Operations & Production Management, vol. 15, no. 7, pp. 4? 26.

What is Truly Going on with Challenges Essay

What is Truly Going on with Challenges Essay The Number One Question You Must Ask for Challenges Essay Dedicate an idea to a single paragraph only, therefore it is simpler to perceive. There are a lot of essential challenges. Make your very first order at this time and find the help you need whenever possible. Unless you are exceedingly wealthy and is able to compose a personal check, then you'll come face to face with financial challenges. Challenges Essay for Dummies Let's examine some of the qualities of individuals who become negative and panic versus those who respond positively and energetically. Perhaps there's a leap of faith you've put off making a risk it's time to take. Some people told me you can't begin a business if you don't have seed money, if you don't own a network, unless you happen to be a certain age, unless, unless, unless. They seem to meet every challenge with confidence, while others struggle to overcome them. You can discover a lot about the end result of the challenge. You may pick a different suggestion or click the original word to revert. If your aim is to educate, select a subject that you've already studied. If your aim is to persuade, pick a subject that you're passionate about. There's, clearly, a limit on the range of pages even our finest writers can produce with a pressing deadline, but usually, we figure out how to satisfy all the clients seeking urgent assistance. Try to remember, no reader wishes to be lectured at. A whole lot of students face the exact same problem with writing. The issue is that all too frequently you may find yourself faced with the very same challenges over and over again, and that's when you begin to eliminate motivation to handle the problem and you drop sight of the prospective lesson. Search for a challenge which will make a potent narrative for your prospective audience. While there are a few sensitive issues you should make certain your conclusion won't offend. Pick a challenge you've overcome, and be sure your topic is something which you truly feel proud of and are interested in. Facing different challenges may be the hardest thing that you do in life but should you push through the end there'll be serious learning points and many added benefits. If You Read Nothing Else Today, Read This Report on Challenges Essay If you choose to make an outline, write your topic at the peak of the webpage. If you're given the subject, you ought to think about the sort of paper that you wish to produce. You do not have a thing to be worried about when ordering from our internet site. A good example might be the subject of Recycling bins in my city. If a student is caught employing the phone in class, they should be excused for the remainder of the day. If he needs to answer the phone during an emergency, he or she can step out of the classroom to do so. If he is on call for work, he or she will need access to a phone. In the event the students would like to get a great grade they must study and that usually means staying up late too. The Hidden Treasure of Challenges Essay To work, an essay must adhere to a logical sequence. You've just written a distinguished essay. You consider the essay prompt. You look over your essay prompt. Touch on the most essential facets of your essay then leave the reader with something to consider. Needless to say, essays are only effective if they're readable. If your essay is describing a process, like how to make a huge chocolate cake, make sure your paragraphs fall in the proper order. Whatever They Told You About Challenges Essay Is Dead Wrong...And Here's Why Successful entrepreneurs aren't terrified of failure. Dieting is really very easy. Failures are the pillars of succeeding. Entrepreneurs ought to be able to administer and supervise the company activities of both. They need to constantly motivate managers and employees to achieve organizational goals. They should be responsible for any impact that may occur. Top Choices of Challenges Essay Unfortunately, stumbling in the TMI zone of essay topics is more prevalent than you believe. Sometimes conversation appears to be a meaningless, confusing ritual. Aristotle first utilized the designation of special regions of knowledge. You will ideally address a single topic in 1 paragraph. New Ideas Into Challenges Essay Never Before Revealed When good financial conditions, business is going to be developed and constantly evolving. Entrepreneurs will need to appear smart for orientation times, identify and make the most of the surroundings through the projection procedure and continuing monitoring. A prosperous entrepreneur is generally a person who has experience a nd understanding of technology and market conditions which he operates.

Hydrothermal Vents and the Marine Life They Support

Despite their forbidding appearance, hydrothermal vents support a community of marine creatures. Here you can learn the definition of hydrothermal vents, what theyre like as a habitat and what marine creatures live there.   How Hydrothermal Vents Form Hydrothermal vents are essentially underwater geysers created by tectonic plates. These huge plates in the Earth’s crust move and create cracks in the ocean floor. Ocean water enters the cracks, is heated up by the Earth’s magma, and then released through the hydrothermal vents, along with minerals such as hydrogen sulfide, which end up forming volcano-like projections on the seafloor. The water coming out of the vents can reach incredible temperatures of up to 750 degrees F, even though the water outside of the vents can be near freezing in temperature. Although the water coming out of the vents is extremely hot, it isnt boiling because it is unable to under the high water pressure. Due to their remote location in the deep sea, hydrothermal vents were discovered relatively recently. It wasnt until 1977 that scientists in the submersible  Alvin  were amazed to discover these undersea chimneys spewing hot water and minerals into the cold waters thousands of feet below the ocean surface. It was even more surprising to discover these inhospitable areas teeming with marine creatures. What Lives in Them? Living in a hydrothermal vent habitat presents challenges that prevent many marine creatures from inhabiting this hostile environment. Its inhabitants need to contend with total darkness, toxic chemicals, and extreme water pressure. But despite their intimidating description, hydrothermal vents support a wide variety of marine life, including fish,  tubeworms, clams, mussels, crabs, and shrimp. Hundreds of species of animals have been identified in the hydrothermal vent habitats around the world. At a hydrothermal vent, there is no sunlight to produce energy. Bacteria-like organisms called  archaea  have solved this problem by using a process called chemosynthesis to turn chemicals from the vents into energy. This energy-creating process drives the entire hydrothermal vent food chain. Animals in the hydrothermal vent community subsist on products produced by the archaea, or on the minerals in the water produced from the vents.   Types of Hydrothermal Vents Two types of hydrothermal vents are the black smokers and white smokers. The hottest of the vents, the black smokers, got their name because they spew a dark smoke composed mostly of iron and sulfide. This combination forms iron monosulfide and gives the smoke its black color. The white smokers release a cooler, lighter material composed of compounds including barium, calcium, and silicon. Where Are They Found? Hydrothermal vents are found at an average underwater depth of about 7,000 feet. They are found in both the Pacific and Atlantic Oceans and concentrated near the Mid-Ocean Ridge, which winds its way along the seafloor around the globe. So Whats the Big Deal? Hydrothermal vents play an important part in ocean circulation and regulating the chemistry of ocean waters. They contribute nutrients required by ocean organisms. Microbes found at hydrothermal vents may also be important to the development of medicines and other products. Mining of minerals found at hydrothermal vents is an emerging issue that may allow scientists to learn more about hydrothermal vents, but may also damage the seafloor and surrounding marine communities. References Cowan, A.M.Deep Sea Hydrothermal Vents. National Geographic.Pfeffer, W. 2003. Deep Oceans. Benchmark Books. 38pp.Viders, H. 2011. Hydrothermal Vents. Alert Diver Online.Woods Hole Oceanographic Institution. What Are Hydrothermal Vents?