In this study, the selected organization is ASDA, one of the most successful retail companies in the UK and expands their business worldwide. The organization has the capacity to get its target benefits and hold market share. The diversity is found in their company among their employees and they confirm their workers’ demands, requirements and security. ASDA applies some distinctive and essential theories to accomplish their business and get competitive advantages. When they started their business they only rely on classical and neo-classical theory but according to the modernization of the business, they change their strategies and apply different modern theories and also use functional organization structure. To use these theories ASDA faces both advantages and disadvantages. The SWOT and PESTLE analysis are two important analyses that can identify the strength and weakness of the company and also some significant indicators that are competent for the company is discussed in this paper.
Table of Contents
2.0 Company’s Overview.
3.0 Literature Review.
3.1 Different types, sizes and scope of the organization.
3.2 Explain the interrelationship of functions on organizational structure.
3.3 Explain the impact of the internal and external environment on business operations.
3.4 Explain the influence of globalization on organizational strategy and decision-making.
4.0 Discussion and Analysis.
4.1 Explain with justification the type, size and scope of the selected organization.
4.2 Analyze the impact of the interrelationship of functions on the selected organization structure.
4.3 Impact of the internal environment and external environment on the ASDA.
4.4 Evaluate the influence of globalization on organizational strategy and decision making of ASDA
In the retailing sector of the UK, ASDA has a strong and established position. This company is very popular for their groceries products as well as some medicines and electronics goods. In this study, the overview of the company has been discussed firstly. Secondly, organizational size, perspectives and genera are understood by some theories like classical, neo-classical and modern organizational theory are discussed here. Thirdly influence of globalization on organizational strategy and decision-making of ASDA is discussed. For the affluent business strategies and proper business management systems the SWOT and PESTLE analysis are mostly needed (Lincon, 2019). Finally, these two are also analyzed here.
2.0 Company’s Overview
ASDA is the second most popular retail company which is first established by a group of farmers in 1965 (Ebbing, 2019). Now this company makes flourish and expand its business around the world. In UK they have about 400 outlets. At the initial period of their business groceries items such as food, drinks and clothes are their products but in 1999 the company was acquired by Wal-Mart Stores Inc and added some items in their business like pharmacies, opticians, and jewelry and photo department stores (Ebbing, 2019). ASDA has a good market share of around 16.8% in the UK retail market. The company has also online sales systems that play an important role to enlarge their sales and earn more profits and revenues. In the previous year, ASDA gained about £24 billion and hold a strong position in a competitive market (ASDA Annual Report, 2019). ASDA is one of the leading retail companies in the UK so they face several difficult challenges from their competitor’s companies such as Tesco, Sainsbury, and Morrison and so on. So to achieve competitive advantages ASDA tries to develop their employer’s and employees’ skills by encouraging them by providing rewards and advantages for their better performances (Larry, 2019).
3.0 Literature Review
3.1 Different types, sizes and scope of the organization
Every organization is different in its size, mechanism, activities and functions. It is not the fact that how large the organization is, it always has a practice division of labor both horizontally and vertically. Lots of organization exists in the marketplace. They are of different types and sizes. They can be small, medium, large in size and private, limited, public or government organizations, charities and NGOs. Some theories exist that can describe the size of the organization and applying these theories an organization can understand and predict the strategies and approach theirs business systems (Jonson, 2018). Different types of organizations have varieties of opportunities to remain and establish their business. Usually large and multinational business organizations get more chances and scope to develop their business than small and medium organizations. Small and Medium type organizations have faced several challenges and difficulties to remain as a firm position in the competitive market world.
3.2 Explain the interrelationship of functions on organizational structure
Organizational structure is the complete form, diagram, or model that emphasizes the interacting activities among the organization and their related individuals for example managing directors, workers, shareholders and customers and etc. Organizational structure is designed according to the company’s needs and requirements and able to resolve the problems based on some significant criteria. Some popular organizational structures are hierarchical organizational structure, matrix organizational structure, functional organizational structure, product organizational structure, customer organizational structure and geographic organizational structure (Godson, 2018).
There are different kinds of organizational structures such as hierarchical organizational structure, flat organizational structure and matrix organizational structure and so on (Godson, 2018). The hierarchical structure is mainly appropriate for the large business organizations that conduction depends on a chain of command rules. In a flat organization structure, middle management is ignored, works as directly. In a matrix structure, individuals depend on more than one leader and complete their activities (Godson, 2018). The classical theory is also known as the traditional theory that is based on the formal and previous structure of the organizations. This theory consists of six important elements such as division of labor, departmentalization, coordination, scalar and functional processes, structure and span of control (Jonson, 2018).
The relationship of function on the organization is very common that is mostly noticed. Some specific factors are related to the functional organizational structure such as human resource, accounting and management sections……..