STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

Company Overview

ASDA or ASDA Store Limited is a subsidiary of Wal-Mart. It is a retail chain catering its customers with grocery and general merchandise with in the United Kingdom. The company has 377 stores across the country which sells apparel and groceries. The company employs approximately 170,000 people and has its headquarters situated in Leeds.

ASDA recorded revenues of $31.2 billion as a subsidiary of Wal-Mart for the fiscal year ended January 2010. This revenue was almost 8.2 % lower than the company earned in 2009. This was a result of fluctuations in the currency exchange rates during 2010 (Pearce and Robinson, 2010, pp. 700-705).

Business Description

ASDA is amongst the leading retailers of the United Kingdom. Amongst the 377 stores the company runs across the company, 8 are used as recycling centres. The breakup of these 377 is as followed.

26 ASDA Supermarkets

29 ASDA Superstores

297 Compact Hyper markets

25 ASDA Living

In a week, ASDA serves an approximate of 18 million shoppers. Moreover, the home shopping business of ASDA serves 97% of UK households.

The company specializes in retail business, and sells a broad array of food and non-food item; however, ASDA gives emphasis to fresh food. Thus, the company has its own butchers, bakers and green grocers working inside ASDA's stores. The non-food items of ASDA comprise of apparels, homeware, entertainment products, photo processing products and toiletries (Davenport, 2006, pp. 390-400).

History

ASDA Stores Limited (ASDA) was formed in 1965 by a group of farmers from Yorkshire UK. Led by brothers, Fred and Peter Asquith, ASDA established a shop to sell its fresh produce. Through a slow process of acquisition and shop building, the company grew from one shop into a chain of supermarkets. ASDA merged with MFI (Mullard Furniture Industries) in 1985. Two years later, the company sold MSI in a management buyout for GBP500 million (approximately $739.6 million).In the year 1990, ASDA launched its first range of apparel. The George range of clothing was offered in a selected number of stores but soon became a feature of nearly all ASDA stores (www.corporatewatch.org).

In 1999, ASDA was acquired by Wal-Mart for GBP6.7billion (approximately $9.9 billion) and became part of the world's biggest retailer. In the following year, ASDA opened a first ASDA Wal-Mart supercentre at Patchway over 93,000 sq feet. In line with Wal-Mart's plans, ASDA announced a plan in 2002 to deliver 12 new, refurbished, or extended stores within the M25 area.

In 2003, ASDA began to offer home, travel and motor insurance in all its stores. The company also launched a dedicated e-commerce site at asda.com through which shoppers could also take out policies online. In the same year, ASDA opened its first standalone George store in Leeds. The first ASDA Living store was opened in Walsall, in 2004. In the same year, the company opened its 100th photo centre at Tamworth. ASDA launched 30 new photo centres in 2005.

In 2006, ASDA's George brand moved into homeware. ASDA launched its online business, ASDA Electricals in ...