ASDA and it’s functions
This report will analyse ASDA the supermarket environment and outline the direct impact MACRO and MICRO environments have on the organisation. The report will then look at the strengths weaknesses opportunities and threats (SWOT) to the organisation to help form an overview of the organisation and it’s functions.
ASDA supermarket retails food, clothes, toys, entertainment goods and other general merchandise. The organisation formed in 1965 by a group of farmers from Yorkshire, who knew very little about the business world. Having created a firm foundation for themselves in northern British regions they soon decided to expand southwards. This expansion took its course by the 70s and 80s. In 1989 ASDA bought rival chain Gateways superstores for £705m and this is where most literature indicates that the organisation began to feel overstretched as they were selling too many products.
The CEO Archie Norman was recruited in 1991 just as their company was on the verge of going ‘bust’. He decided they needed to go back to their roots selling food and focusing on cheap prices which is when the infamous ‘ROLL-BACK campaign started. ASDA borrowed many ideas from American supermarket giant WAL-MART’ and in 1999 ASDA was wholly owned by Wal-Mart for $10.8 Billion becoming one of the world’s largest supermarkets.
To add to their recent successes they have now entered the financial sector by offering Credit Cards, Insurance policies and other services to customers promoting a ‘one stop shop’ concept.
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