Below is a SWOT analysis for Asda plc. Between 1990 and 1994. Read the case and answer the questions underneath. Asda plc is the one of the largest supermarkets for packaged groceries in UK. It is part of the Wal-Mart family in the USA. Asda’s performance combines profitability, productivity and a sense of social purpose. The company has good positions and new opening opportunities in terms of site. It operates using the epos systems, a natural factor which Tescos and Sainsbury’s are also very strong. It is well noted for a flexible workforce (many part-time positions), a strong new management team and strong own label (Inc George). The vision of Asda can also be expanded by buying alliance with other European supermarkets and maintaining its existing strong links with own labels suppliers. Small store could easily be re-formatted with a discount formula to gradually compete with the growing influx of discount stores such as LIDL, ALDI and Netto. However, in addition to the lack of resources to fund large expansion program the strengths of its main competitors continue to compose trait. Meanwhile the company is much diversified in a single store (food, cloths, electrical, household goods, gardening e.t.c). Although it poses a strong management team, the depth for changes necessary is lacking and a general demoralisation following the recent redundancy. 1) What is your understanding of SWOT analysis?
2) What do the strengths and weaknesses of Asda represent?
3) Identify at least three each of the company’s strengths, opportunities, weaknesses and threats. 4) Evaluate the threats and opportunities face by Asda (support your answer with a minimum of three reasons) 5) Suggest two ways by which the threats can be built into new opportunities. 6) How can Asda either neutralise critical weaknesses or convert them into strengths.
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