ASDA Private Label



ASDA Private Label

Introduction

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. According to  (2006) the company was established in the year 1965 when the Associated Dairies and the supermarket chain of the Asquith brothers merged. The ASDA Stores Ltd. is bound to offer the shoppers prices of the products that are permanently low. I9n the year 1999 ASDA became the subsidiary of the Wal-Mart company of the United States. The ASDA Stores Ltd. has a food pledge that was launched in the year 2002 which aims to reduce fat, salt and sugar levels in all of the food products of ASDA, at the same time, providing the consumers the nutritional information. The company also obtains 90% of the fresh food from British farmers. And aside from the products of the British farmers, ASDA also source local products such as biscuits and ice-creams. The food brands of ASDA include: Smartprice, ASDA Brand, Good For You!, Organic, Extra Special and Great Stuff. Aside from food, the ASDA Stores Ltd. also expanded to Specialty Areas such as pharmacies, opticians, jewellery and photo departments. Apart from the products offered, ASDA also boasts of great service, most of the ASDA stores have restaurants and café, baby changing facilities, pet shops and it also offers trolley for the young, old and disabled. The organization also has its website so that people can buy their groceries online. The main goals and objectives of ASDA includes the following: the company is committed in decreasing the carbon emissions by 80,000 tonnes in the year 2007, and the company have already done this by moving the freights to rail in which it decreased the number of road miles travelled by the fleet and the development of a £20 m import centre and the company is currently converting the entire fleet in order to use bio diesel.

 ASDA is facing a number of controversies, according to  (2006) ASDA Store Ltd. major issues are its exploitation of workers in the developing countries, damaging local companies and adoption of anti-union policies. Moreover, according to  (2006) ASDA has misses its targeted profit for the fourth consecutive quarter. This paper gives analysis on the Macro-environment and Micro-environment of ASDA Wal-Mart. It also discusses the management structure, culture and leadership of ASDA. Moreover, it examines the competitive environment of supermarkets in the United Kingdom and gives discussion on the major issues of ASDA. Finally, the paper provides alternative strategies and recommendation.

Internal Analysis    

ASDA is one of the largest retailers in the United Kingdom which became the subsidiary of the American retail giant Wal-Mart. The mission of ASDA is to be “Britain's best value retailer exceeding customers' needs- Always.” The main purpose of the company is “to make goods and services more affordable for everyone.” When ASDA became the subsidiary of Wal-Mart it employed the three core values of the company which are, ...