In 1965, a group of dairy farmers from Yorkshire (North of Britain) formed ASDA. During seventies and eighties, the company expanded to South. In 1989, this expansion bough rival chain of Gateways superstores for £705 million. But unfortunately, this expansion went against the company because, selling too many different products, was not an easy task for them. Hence in 1991, the company recruited a new chief executive from Kingfisher named Archie Norman. After ASDA returned to its roots as a food retailer, comparing to its three large rivals, ASDA’s strategy to be cheaper highlighted. Afterwards, rather than involving in loyalty schemes, ASDA began to concentrate on keeping the price low. During next few years under new leadership, the company
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They have supported ASDA to get the right policies in place and make appropriate changes to business which benefits ASDA’s customers, suppliers, employees and the environment. ASDA’s work on timber with World Wide Fund (WWF) is a great example for that. To make a real difference in communities as well as local environments around their stores, offices and deports, ASDA also works along with charities at local level.
Response
This report is giving a clear picture about how ASDA has started their journey to use their scale for good. They have shown how they going to tackle their main goals and how to strengthen their work. They have address to all stakeholders of the company and tried to put maximum effort their essential communities.
Even though in my readings, I have found out some criticism on ASDA.
In 2005, the company has fined a total of £22,000. One of the employees was buried under 72 frozen chickens and another employee received an electric shock while working at Kingswood store in Hull (Anonymous, 2005). These incidents shows that ASDA needs to pay more attention on health and safety in stores. Though company involved in many social events and doing a great job in society, these kinds of incidents will damage the company’s brand image and it will lead to negative impact on company’s social
They have supported ASDA to get the right policies in place and make appropriate changes to business which benefits ASDA’s customers, suppliers, employees and the environment. ASDA’s work on timber with World Wide Fund (WWF) is a great example for that. To make a real difference in communities as well as local environments around their stores, offices and deports, ASDA also works along with charities at local level.
Response
This report is giving a clear picture about how ASDA has started their journey to use their scale for good. They have shown how they going to tackle their main goals and how to strengthen their work. They have address to all stakeholders of the company and tried to put maximum effort their essential communities.
Even though in my readings, I have found out some criticism on ASDA.
In 2005, the company has fined a total of £22,000. One of the employees was buried under 72 frozen chickens and another employee received an electric shock while working at Kingswood store in Hull (Anonymous, 2005). These incidents shows that ASDA needs to pay more attention on health and safety in stores. Though company involved in many social events and doing a great job in society, these kinds of incidents will damage the company’s brand image and it will lead to negative impact on company’s social