Sustainability at ASDA Customer inserts his/her name Customer Inserts 1.0 Introduction The topic for this report is the incorporation of sustainability into the ASDA shopping mall project at Wolverhampton…
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Supermarkets in Europe are investing time and effort into the accomplishment of sustainability in their operations since this is the new competitive advantage they ought to possess. The paper discusses the drivers as well as the sustainability initiatives to be undertaken by ASDA in its shopping centre at Wolverhampton, keeping in view dynamics of the industry as well as social, political, legal, economic and other factors. Before delving into the concept of sustainability, it is useful to understand the nature of the grocery industry in the U.K. The U.K supermarkets industry was worth more than ? 150.8 bn in 2010 which showed considerable increase of 3.1% compared to the last year (Schnedlitz et al., 2010). Food and grocery expenditure accounted for 0.52% of retail expenditure (Schnedlitz et al., 2010). Of this 0.53%, 21% is roughly spent shopping for the same in convenience stores (Schnedlitz et al., 2010). The private label brands, including Tesco, Asda, Morrison’s and Sainsbury’s have their unique brand identity and are not me-too or imitations of their branded competitors (Schnedlitz et al., 2010). The U.K retail market seems to be on the maturity stage of its lifecycle, however, growth is still quite prominent. The market is on its verge to a 15% growth in the next 5 years (IGD, 2010). Economic dynamics such as rising interest rates and consumer prices, house prices as well job insecurity are only few of a plethora of factors affecting firms in this sector (IGD, 2010).The new government following the election in May, 2010 also seems to bear impact by way of its proposed contractionary fiscal and monetary policy which could mean tough times for the high end markets. The history of ASDA can be traced back to the 1920’s when farmers in Yorkshire created the Hindell’s dairies in 1920 (ASDA, 2011). The company was an instant hit and diversified and expanded to become the Associated Dairies and Farm Stores Ltd in 1949, hence the name ASDA (ASDA, 2011). At the same time, in 1958, two brothers came up with The Asquiths store which offered, to some extent, convenience shopping to customers at a single place (ASDA, 2011). In 1965, the Asquiths merged with Associated Dairies and Farm Stores Ltd. to create ASDA (ASDA, 2011). Thereon, the company was named as ASDA in 1970 when The Asquiths was acquired by Associated Dairies and Farm Stores Ltd (ASDA, 2011). Today, ASDA is known as a subsidiary of Wal-Mart, and is a merchandising and grocery retailing giant in the U.K. The company owns about 583 stores that stock various items ranging from grocery to apparel (ASDA, 2011). ASDA has its headquarters in Leeds, U.K and is home to approximately 178,000 workers (ASDA, 2011). The company is widely known for its staunch sustainability initiatives and has undertaken massive reforms in the same area in order to maintain its competitive edge over competitors such as Morrisons, Sainsbury’s Tesco and Waitrose. Sustainability is defined as the ability to survive or sustain. Popularly, the term environmental sustainability is being used to represent efforts to sustain and prolong the survival of all species and the ecosystem in the environment. A more comprehensive definition of sustainability encompasses all three foundations of sustainability, including the people, economy and the environment (Dunphy, 2000). The relation between these three foundations suggests that there exist limitations on the
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(Sustainability at ASDA Essay Example | Topics and Well Written Essays - 3250 Words)
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The purpose of the paper is to understand the reverse logistics issues in ASDA; recognise the issues of customer service in ASDA; know different aspects of supply chain management; apprehend the importance of better responsiveness in contemporary environmental context and understand the solutions to deal with the issues identified in ASDA.
Since the concept is embraced by planners, therefore sustainability balance favors the economy (Gunder, “Sustainability: Planning's Redemption or Curse”). It can be interpreted that the concept related to sustainable development recognizes that there is greater dependence of life upon the earth’s bio-physical support system.
The considerations that are related to business are based on the responses which are created from the environment and the way in which this is associated with other factors.The main ideology of ASDA is to create green shopping, in which individuals can find anything needed through an online shopping portal. The ideology is to offer low prices; however, this is done by cutting down on basic components, such as energy and uses of materials.
Wal-Mart’s sustainability strategy Introduction Wal-Mart is multinational retail chain that started its operation in 1962 in Rogers as a single store (Wal-Mart, 2012, p.3) with a strategy of reducing their prices compared to other stores thus increasing sales and revenue.
Explicitly, sustainability seeks to enable a business to enjoy a future level of consumption, wealth, utility and welfare similar to those enjoyed in the present situations. Therefore, sustainability and business overlap in the areas of business operations and social and ecological impacts.
It has successfully implemented Wal-Mart's low pricing strategy which is yielding positive results. Furthermore, Wal-Mart's robust financial performance (revenues reaching $348,650 million during the fiscal year 2007, an increase f 11.7% over 2006) would provide financial stability to the company.
What exactly were the problems that Archie Norman and ASDA faced The major problem is communication. The other problems will be resolved when communication between and among departments and persons will be fixed. Another problem is each person or department did not care about the needs or problems of the other departments.
Average room rate increased by 7.4 per cent to 95.03 in November, a similar rate of growth to the 7.2 per cent achieved during the year so far. In London, profit grew by 7.9 per cent to 82.19 per available room. London's hoteliers continued to achieve rate growth at near annual levels with an 8.9 per cent increase taking average room rate to a new high of 125.85.
Everything changed all of a sudden as Asda found itself with demoralized employees, slow growth in sales, and declining profits in 1991. It had been a 1 billion pounds cash surplus supermarket chain in 1987, and by 1991 it had a debt of over 1 billion pounds.
There are obvious global challenges related to sustainability which ranges from pollution and climate change to education, poverty, health and human rights thus various jurisdictions, regulations and standards of practice have been set up. The sustainability agenda sees human activities as the part of and dependent upon the natural world.
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