Wal-Mart's ASDA Shuffles Strategy to Shore up Sales
Evaluate the different approaches to management used
by ASDA to that used by British Airways
ASDA is known to take quick business decision because
of the autocratic leadership style followed within the company. The strategic
decisions are taken by the Board of Directors to formulate new business
strategies. The General Managers and Branch managers ensure tactical decisions
are taken to implement new business strategies. The first level manager i.e. the
supervisors make sure that the tactics are implemented into operations on daily
basis. Thus, in ASDA, all the three levels function cordially together.
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Business Decision Making
The human resource management team makes sure that the
social needs of each employee are taken care and transparency is maintained.
The collaboration of ASDA with Wal-Mart in the year 1999 is an important
example to show how people were aware of the changes in the structure and
culture of the company and the merger took place very smoothly. The main reason
was that the leaders at ASDA have always been firm believer that employees of
ASDA should be aware of new strategies and management practices. However, after
the collaboration, things have changed because Wal-Mart doesn’t share the news
of new business strategies with their employees and likes to maintain secrecy.
This has been one of the important reasons why employee retention rate at ASDA
has gone down after the collaboration.
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Business Skills for E-commerce
On the other hand, British airways are more focused on
conducting training programs so that employees are trained to develop their
skills. Since, British airways is a service based organization, it is important
that each employee is well versed in communication. The employees have to
interact with customers directly and have to act instantly to their unique
demands. Thus, the employees in British airways are given the responsibilities
to take decisions.
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Market Orientation for Organization
The human resource management team at British Airways
make sure that the employees are rewarded for not only the efforts put in by
the employees but also make sure that recognition is given to those who carry
out their responsibilities efficiently. In British Airways, the management does
not believe in promotions and distributed way of rewarding as followed in ASDA
following on Maslow’s theory of hierarchy of needs. In British airways, rewards
are only shared on the basis of output and performance delivered by the
employees i.e. in accordance with Vroom’s expectancy theory.
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