Business and Sustainability - Essay Example

Also, Wal-Mart's presence in 13 international markets including the UK, Canada, Japan, Mexico, Brazil and China, it also allows Asda to foray easily into new markets. (Barnes 2004) The Wal-Mart umbrella not only provides Asda with a strong brand image but also fuels the company's top line growth. Asda's George apparel line started as a small unknown brand in 100 ASDA stores. It is now the second largest clothing retailer in the UK by volume selling in more than 250 stores in the UK. Furthermore, George now has a presence in five other countries including Canada, Mexico, Argentina, Japan and the US.

George products are available for men, women, and children and include apparel, shoes, handbags and even eyeglass frames in select stores. (DesJardins 2006) The George brand, known for style and quality, continues to grow in popularity as a favorite fashion choice across the globe. Strong brand image f George allows the group to extend the brand into other product lines. Asda is the second largest chain f supermarkets in UK with a market share f 16.8% as f February 2007. Furthermore, the company outperformed the rest f the retail sector for the first time in three years in terms f growth rate.

The overall growth rate f the company was recorded at 9% for the fiscal 2007. Asda's competitors on other hand recorded a low growth rate during the same period. (Thomas 2003)For instance, Sainsbury recorded a growth rate f 7.8%, Tesco (7.2%), Morrisons (3.9%) and Somerfield (-3.8%). This was primarily due to attracting one million new customers through its checkouts and re-evaluation f its customer offer and pricing strategy. Asda can leverage this growth to further enhance its revenues and profitability.

(DesJardins 2006)Evaluation f ASDA's non-financial reporting practicesAsda has recalled many products in the last year. In August 2007, Asda recalled 115,000 Chinese-made children's bottles in response to a customer complaint regarding the breaking f caps f the bottle. The yellow, pink and orange colored reusable bottles are aimed at children aged three upwards. The recalled bottles were initially priced at 1.25 each then reduced to 63p. Earlier in February 2007, Asda recalled its George kid's snow boot as due to a problem with the toggle that tightened it.

Additionally, Asda recalled all batches f its own-brand 500g packs f Simply Porridge due to possible cross contamination with nuts in November 2006. The affected packs contained nuts, which makes this product unsafe for individuals who are allergic to nuts. Product recalls such as these would adversely affect the corporate image and investor confidence.Online shopping has steadily grown in popularity in the UK. It has been estimated that by 2012 online sales will increase by 320%, to 60 billion per annum and would account approximately 20% f all retail sales in the UK.

Although the company provides online services, it has a significantly lesser market share than its peers. For instance, the company's biggest competitor, Tesco has 66% f the K's online shopping market. The company's weak presence in this stream f business denies it he opportunity to gain market share in this rapidly growing sector. (Fisher