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Summary Of Asda Group Case Study Archie Norman

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Recommended: Asda strategic management

With the threat of bankruptcy looming, we recommend that Archie Norman starts off by focusing on reestablishing a specific position in the market for Associated Dairies, or Asda Group, and also prioritizing the restructuring of the organizational chart. Currently, ASDA is trying to be too many things to too many people. Diversifying is a good strategy for some companies, but ASDA is to the point where they are over-diversified and it is hurting their position in the market. They don’t know which business they are in anymore and they aren’t sure which customers they are targeting. We recommend taking the time to refocus the company since it will help to align their goals, determine the markets they are targeting, and help manage their financial …show more content…

The third challenge facing Asda Group is the saturation of the food retailing market. Food sales are only growing about 2% per year yet the retailers are growing much more quickly and expanding their stores to include a wider range of items to compensate for the lack of growth in the market and in an attempt to increase profit. The market already comprises a large portion of superstores and the only way to gain market share is to take sales from an existing store. High entry barriers make it harder for new competitors to enter the market but, nonetheless, the market is already saturated with too many large and competitive …show more content…

Finally, Asda’s internal company culture is going to determine the values and beliefs of the company and set the attitude and environment in which the employees will work. Their culture since the 1980s has been described as hierarchical and bureaucratic. Employees calling their bosses “Mr.” and being too afraid to speak up or give their managers bad news has become the norm around the offices. Departments don’t work or coordinate with each other while the trading department has become very large and overbearing. Asda’s atmosphere has stifled their innovation and creativity all while causing them to lose a lot of dedicated and proficient

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