Principles of Organization and Management - Essay Example

They have nearly 523 branches spread all across the world. ASDA recently purchased the famous Netto stores for ?778 million, with the sole aim of gaining an upper hand in the UK retail industry. ASDA has faced several problems in the past, to the level of collecting money from various sources including their shareholders to avoid bankruptcy in 1991 and 1993. It has emerged out successfully through various leaps and bounces in the past under the guidance of great leaders like Norman Archie. ASDA’s revival using various principles of organization and management under the leadership of Norman had been studied by various experts all over the world.

The paper explores the various strategies used by ASDA to overcome the cultural and economic barriers it faced during its grim past. It also lists the new set of challenges the new COO has to face in today’s highly competitive market and analyzes the scope for ASDA to overcome the new set of challenges. Literary Review ASDA was at the brim of declaring bankruptcy when Norman Archie came into ASDA as the only applicant for the CEO position of the company. He used various strategies to ensure the company became a successful leader in the retail sector.

Within a short span of time, he was able to transform a company at the brink of closing, into a highly successful one. Norman used three strategies reengineering, rewarding and doing it within a given time frame to achieve this impossible feat. Reengineering a company is no easy task. It is simply not enough to patch up the mistakes. The basic structure has to be changed completely by questioning the long time procedures (Hammer & Champy, 1993). Norman did exactly the same to ASDA. The company was highly hierarchical and the upper management used very traditional ways of management.

Most of the well paid senior officers were very bureaucratic, preventing any productive changes. He simply did not go about doing the same mistakes other CEO's did. He challenged the basic structure the company was working. He made every employee in the organization share the vision for reviving ASDA. He never stopped recruitment, treated the low level employees with respect and found out what exactly was lacking in the company. “The new view is that marketing is the science and art of finding, retaining and growing profitable customers (Kotler , 2008).

” Norman reinvented the marketing strategies to increase sales. He understood the core problem in ASDA was it was trying to sell too many things without focus. He streamlined the importance to food and clothing products. His new Spice Girls branded items and marketing during the 1997 Christmas did the much expected trick, increasing their sales considerably. Time is the basic essence. It is an important variable in formulating any strategy and implementing it (Tony Morden). Norman was very clear about what he wanted to achieve at what time interval.

Any company would be able to prove its mettle in the long run. But, its real capability can be measured only when the target is achieved in a given time even under huge pressure. Norman made this magic happen in three short years starting from 1996 – 1999 quite swiftly. "You get more of the behaviour you reward. You don't get what you hope for, ask for, wish for or beg for. You get what you reward." Michael le Boeuf Norman made it a point to involve everyone in the process of reengineering and rewarded each and every behaviour he found useful or appreciable.

The employees felt the