Asda Strategic Management Essay

3237 words - 13 pages

Contents
I. Introduction 2
II. Content 2
1. The wider environment in the UK. 2
Political 2
Economic 2
Social 3
Technology 3
2. The competitive environment within the UK. 3
The threat of substitute products 3
Bargaining power of buyers 3
Threat of new entrants 3
Bargaining power of suppliers 4
Existing rivalry between competitors 4
3. Asda's strategic position within the UK. 4
Strength 4
Weakness 4
Opportunities 5
Threats 5
4. The competitive strategy of Asda. 5
5. Future development strategy of Asda. 7
III. Recommendation 9
IV. Reference 10

I. Introduction
Asda was first formed in 1965 by a group of Yorkshire farmers and originally sold only grocery ...view middle of the document...

Executive power is exercised on behalf of the king, but in the hands of actual government. The head of government is the Prime Minister. The Prime Minister is the leader of the majority party in the House of Representatives seat (Williams, 1998). Generally the British political system little changed. Even the legal system of the State policy also does not change much
Biggest concern of businesses is the continuity of the rules and principles of conduct whether any of the parties are in power. A change in government, whether by election or coup not always mean changing the level of political risk. Contrary to the fundamental change in policy could create major instability. A sudden change in unpredictable government policies can also hinder business activities of the enterprise, regardless of the changing cause.So,for political factor, in the future years and current, Britain basic political situation is stable. This situation is good for British supermarket industry to grow in strength.

Economic
In the early 20th century, the global economy has made profound changes due to the volatility of the political situation in the world. The world economy achieved high growth rates in the 2000s and began to decline sharply after terrorism of 9/11 in America (Colin Grahame Bamford, 2002). The volatile world economy has profoundly affected European countries such as the U.S., Japan ... but the UK economy remains sustainable.
UK also is an attractive market for foreign investors because the UK has many advantages, such as the financial centre of the world currency, infrastructure development, and tax is lower than the EU other, skilled workforce with relatively low labour costs compared with developed countries. Currently, the UK is attracting foreign investment (FDI) in most EU regions. In 2008, the UK accounted for 30 % FDI in the EU, accounting for 9.3 % of world FDI. As predicted, in 10 localities FDI only leading the world in 2001-2005, England was ranked 2nd after receiving the U.S. with an average amount of FDI per year is estimated at 82.5 billion dollars. UK is also investing abroad largest EU. In 1998-2005, an annual average of UK investment abroad amounted to U.S. $ 119.4 billion, private investment in 2008 totalled nearly $ 250 billion (ONS, 2012) . The more important is the UK is The UK is the fifth largest economy country in the world, the second largest exporter and the third largest importer of commercial services, eighth largest exporter and fifth largest importer of merchandise.
Social
In 2007, the UK population was reached 61 million.UK is one of most densely populated countries. Growing of UK population isabout nearly 400,000 one year. Population growth tended to influence retail trade. More and more potential customers will be faced by ASDA in the future. The increasing population can give ASDA good opportunity for making more profit.
Technology
Science and technology is developed in the UK now.By 2008 in the UK,there is...

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