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Strategic Marketing

Unit 6.5Level 7Student NameStudent ID

1.1 Current issues that impact on ASDAASDA Group Ltd is UK number one largest food retailers. It sold variety of items like food, books, apparel, CDs, electronics and house hold items. Earlier they have started as just superstore and today they have expanded themselves globally.Goal of ASDAThe main aim of any organization is to survive or exit in the market .for this they believe in Value for money - Competitive prices - Meeting Consumer needs - Progressive returns on investment. ASDA aims to make goods and services more affordable for the people.Mission statement of ASDAThe mission statement of ASDA is to be the Britains best value retailer exceeding customer needs always. It has shown that it value a lot for the respect of the individual, customer service and excellence.Marketing strategy of ASDAASDA is playing on low price/low cost strategy in the market. They have lowered down their operating cost as well as carbon foot-printing with the help of sustainable development programmes. They are using the strategy in which they are trying to use the best quality products but with the lowered price so that maximum number of customers can be attracted. They have tried their best to maintain a good relationship with the customers. They have improved a lot in the customer services. They have played a strategy of ASDA price guarantee to win the trust of the customers to a large extent.Organization behaviourOrganizational behaviour basically deals with the deep study of the impact of all the activities of individuals and groups within the behaviour of the organization. It also deals with the study of the impact of organizational structure on human behaviour. In organizational behaviour there is a integration of many other studies like sociology, psychology, social psychology and economics. Organizational behaviour aims with the study of contribution of human behaviour towards achieving greater efficiency and growth of the organization.Taking the impact of different fields on the organization behaviour its seen that the study sociology deals with the group dynamics. It shows the impact on the group behaviour to a large extent. It also deals with the roles played by the individuals in the organization, power, status, communication, conflict management, group processes, formal organizational theories, group decision-making and norms.Psychology has impacted the organization in studies like job-satisfaction, leadership, individual decision-making, performance appraisal, and work stress and ego state. With the help of study of psychology it helps the organization to change the attitude, improving personal skills and generating positive approach for the development of the organization. Even psychology is also considered important for the selection of the employees as it helps in reading the mind of the person, doing the measurement of the personality aptitude and attitude.As the organization need to keep an eye over the government rules and regulations. Political science helps the company in knowing the position for financial investment, employment and expansion and doing the promotion of international business. Social psychology is the blend of the psychology and sociology to obtain better human behaviour in the organization. It contributes to the ability of the people in the organization, maintenance of the social norms, group decision-making and managing the change. Anthropology takes into account the cultural and environmental framework for the human behaviour study.People, structure and technology are the three main components of the organization. For the achievement of the goal of the company they need to focus on these three factors. The company should fulfil the desired needs of their employees as well as maintain a good relationship with them. Teams and groups also play vital role in achieving goal of the company. The organization could have formal and informal structure. The formal structures do have some proper set of objectives set to priories whereas informal structure does not have any such objectives to be taken care of.So basically organization behaviour includes the study which involves the management of interpersonal relationship, identification of the needs of the people and application of the appropriate strategies to obtain the best result.1.2 Various issues involve in ASDA VARIOUS ORGANIZATIONAL BEHAVIOUR ISSUESOrganization culture of ASDAOrganization culture reflects the personality of an organization. ASDA believes that they have a very unique culture. They have defined their values to their customers, employees and to do best of them. For ASDA their customers are the main entity for them. They try to create an understandable and positive environment for their customers. The employees are also allowed to freely present their views for the betterment of the company. The employees participate in different programmes held by the ASDA so that they can very well mix up among themselves and with the top level management. ASDA always try to motivate their employees by giving different schemes and trips. So ASDA have a positive culture with some rules and regulation made to achieve the objective of the company. they also follow all the legal laws and try to produce good variety of product keeping in mind the health of their customers.Organizational change in ASDARESEARCHLEWIN MODEL OF CHANGEKurt lewin proposed a three stage theory of change known as unfreeze, change, and refreeze.Stage 1The unfreezing stage is one of the crucial stages for any organisation. This stage is about getting ready to change. It is basically feeling the presence of necessary change to be made in the company and getting ready to move from current comfort zone. It is said that the more we feel that change is necessary, the more urgent it is, and the more motivated we are to make the change.Unfreezing and getting motivated for the change is all about weighing up the 'pro's' and 'con's' and deciding if the 'pro's' outnumber the 'con's' before you take any action. This is the basis of what Kurt Lewin called the Force Field Analysis.Force Field Analysis is a fancy way of saying that there are lots of different factors for and against making change that we need to be aware of. If the factors for change outweigh the factors against change we'll make the change. If not, then there's low motivation to change and if we feel pushed.Stage 2: Change - or TransitionThe next step after unfreezing is the change or transition. It is the inner movement or journey we make in reaction to a change. This second stage occurs as we make the changes that are needed. It is often said that this is the hardest step as people are unsure or even fearful.Its not a easy time as people are learning about the changes and need to be given time to understand and work with them. Members are being supported by providing a full training and coaching. Using role models and allowing people to develop their own solutions also help to make the changes. It's also really useful to keep communicating a clear picture of the desired change and the benefits to everyone in the organization.Stage 3: Freezing (or Refreezing)Kurt Lewin refers to this stage as freezing although a lot of people refer to it as 'refreezing'. As the name suggests this stage is about establishing stability once the changes have been made. The changes are accepted and become the new norm. People form new relationships and become comfortable with their routines. It could take a lot of time.In todays world of change the next new change could happen in weeks or less. There is just no time to settle into comfortable routines. The rigidity of freezing does not fit with modern thinking about change being a continuous, sometimes chaotic process in which great flexibility is demanded.Organization change in ASDAASDA was the second largest supermarket store in the United Kingdom in 2005. ASDA has positioned itself as a value for money store in the market. Slowly they expanded themselves into apparel, books, CDs, groceries, and other various household items. In the same year they got award for the lowest price supermarket. The competitors of ASDA like Tesco and J. Sainsbury were also trying to increase the market position by expanding themselves into the financial products, newspaper, pharmaceutical products, clothes and petrol. ASDA were having the hierarchical structure. There were eight levels up to the CEO of the store. These were layered like staff members, supervisor, department manager, general store manager, regional operations controller, division director, operations director, joint managing director and chief executive.ASDA were having the formal way of organizing culture of the organization. They were using the bureaucratic way of management. The staff members are kept in separate part of the headquarters to the top executives. The major issues were handled by the top executives only. It was seen that the communication pattern between the head office and the stores was one way with top-down management style. They were using the centralised distribution but still there customer number was declining rapidly. Regarding the quality of food they had tried their best to provide fresh food to the customers but still they were not able to convince the customer up to the expected levels. So they were facing the complexity problem in the management. ASDA did work on recognising their strength through using well IT, up to date effective distribution system and good operating management.To improve the ASDA management they tried to remove the too many layers of the management and creating narrow structure to better understand the organization. They bring in many changes in the organization like:They started working on increasing the price competitiveness

Redirection the range and breakthrough in store productivityASDA started generating the higher volumes to improve in terms of tradingRestoring the customer flowThey tried to reduce the fixed cost % to sales and increase the traffic sensitive purchases2.1: Internal and external environment analysis of TescoAsda Internal and External AnalysisInternal Analysis An internal analysis as discussed by Cowe et al. (2011) examines a given organizations operations with its strengths and weaknesses. In that perspective Porters value chain analysis will be used to conduct Asdas internal analysis.A value chain analysis as describes different operations that take place in a given organization in perspective of the competitive position of the given organization (Sekhar, 2009). According to Bensoussan and Fleisher, (2008) most organizations mainly adopt differentiation or cost leadership strategies in order to ensure that they have a competitive advantage in the market place.Inbound LogisticsWhile compared to other competitors, Asda is among the cheapest retailers in the UK (Reuben, 2011). Among others, Asdas efficient ordering system as well as the companys economies of scale plays a great role in ensuring that the company is able to sell products at low prices and be able to make profits.Operations ManagementAs far as operations are concerned, Asda has adopted various strategies that ensure that the companys operations are efficient. For example, according to Sahota (2010), Asda has implemented an enterprise resource planning in place that ensures the company achieves efficient and effectiveness in all its operations.Outbound LogisticsApart from only relying on its physical stores, Asda has an online presence that ensures that customers who prefer to shop online or have no access to Asdas physical stores do their shopping online (Asda, 2012).ServiceUnlike in the past where Asda just offered groceries, the company has added more products and service to its offering in order to ensure that it appeals to various types of clients. For example, the company now has cafes in most of its stores implying that instead of customers just shopping, they can also enjoy a cup of coffee or meals at most of Asdas stores (Asda, 2012).Other Supporting Services

Some of the other strategies that Asda has adopted in order to ensure that it is successful in the competitive retail sector includes establishing close relationships with various manufactures which ensures that the company is able to get products at low prices which means that the company is able to make good profit margins even though the products are sold at cheaper prices (Asda, 2012).External AnalysisTo conduct Asdas external environment analysis, PESTLE analysis and Michael Porters five forces framework will be used.PESTLE Analysis PESTLE as mentioned by Abraham (2006) stands for political, economical, social, technological, legal and environmental factorsPolitical factorsThe European Union has presented a good opportunity for Asda to expand into European markets as most of the trade barriers have been removed (BBC, 2009). In addition, the admission of China to the World Trade Organization (WTO) has made it possible for Asda to expand into the Chinese market while also making it easier for Asda to import products for sale from China.Economical factorsAs far as economic factors are concerned, they play a great role in the success or failure of Asda since if the UK economy was experiencing difficulties like was the case in 2008 when the economy was under recession, majority of people lost their jobs which meant that they had less spending power. Nevertheless, the recession as noted by Daily Mail (2008) and Murchie (2009) favored Asda as the company experienced increased revenues as customers who normally did their shopping at other expensive retailers such as Marks and Spencers were left with no option but to shop for cheaper products that were being sold by Asda.Social factorsAs customers become more informed, there is an increased demand for organic food implying that Asda has to ensure that it has organic food in its offering in order to meet the needs of the customers who are keen on organic foods.Technological factorsAs is the case with any other organization, Asda has to ensure that it adopts various technological innovations like online retail and e-marketing in order to be successful.Legal factors

Since Asda operates in UK, the company has to ensure that it adheres to various rules and regulations put in place by the UK government in order to ensure that no fines are imposed.Environmental factorsIn order to ensure that Asda has a positive impact to the environment, the company has put in place an environmental friendly approach that has seen the company use recyclable materials in various situations like in packaging of most products.Michael Porters five forces analysis Porters five forces analysis as discussed by Paul (2011) is an analysis technique that aims at establish the position of an organization in a given industry in perspective of five different forces. The five forces are threat of substitute products, bargaining power of buyers, bargaining power of sellers, competitor rivalry and threat of new entrants.Threat of substitute productsAccording to Lamb et al. (2010), the threat posed by substitute products is normally high in situation where customers can easily access the products without having to pay extra costs for the products. In the perspective of Asda, convenience stores commonly referred to as corner shops, organic shops and off licenses can be said to be the substitute products. The threat posed the these types of stores can be said to be low since they only stock certain types of products implying that customers would still have to frequent supermarkets in order to fulfill their shopping needs.Bargaining power of buyersAs discussed by Shimizu (2011) and Stonehouse et al. (2004), buyers are said to have high bargaining power in situations where they can have an impact on a sellers sales terms mainly because they buy in large quantities. From that perspective, Asda customers can be said to have a low bargaining power as they make purchases as individuals in small quantities.Threat of new entrantsThe threat posed by new entrants to Asda can be argued to be low since it would require any new entrant a lot of capital investment for any new entrant to establish presence in the market. Nevertheless, it would also take the new entrant a lot of time before the entrant can be considered to be on the same footing with Asda, Tesco and other established retail supermarkets in the UK.Bargaining power of suppliersSuppliers have high bargaining power in situations where they are only few in numbers (Stonehouse et al. 2004). The bargaining power of Asdas supplier can be said to be low since they have to supplier products according to various supermarkets terms as explained by Renton (2011).

Existing rivalry between competitorsThe existing rivalry between the competitors can be said to be very high as the five main supermarkets (Asda, Tesco, Morrisons, Sainsbury, Waitrose and The Co-operative) adopts various strategies in order to ensure that they appeal to the public who are their customers.Asda SWOT analysis SWOT analysis as discussed by Kotler (2011) is a situational analysis tool that is used to analyze an organizations internal strengths and weakness and at the same time used to analyze the external threats and opportunities.StrengthsAsdas strengths can be argued to come from a wide network of numerous stores throughout United Kingdom that has ensured that Asda has a strong brand name. In addition, the fact that the company has over 136 retail stores means that the company benefits from economies of scale. Since Asda is owned by Wal-Mart, this can be argued to be strength to Asda as it can easily adopt a concept that works in America in UK.WeaknessAsda main weakness can be argued to be the fact that it is viewed as a cheaper retailer which might at times imply that the company sells poor quality products as noted by Renton (2011). In addition, the large size of the company can be said to be a weakness as it can be at times difficult to manage and coordinate all the activities.OpportunitiesThere are a lot of opportunities for Asda to exploit. Since UK belongs to the European Union there is an opportunity for Asda to expand into European markets that have high potential. In addition, the company can also diversity its service offering into other sectors such as travel, insurance and broadband services.ThreatsThe main threat to Asda can be argued to be the increasing competition posed by other competitors such as Tesco and Morrisons that are in the market. In addition, as noted by Renton (2011) German based Aldi and Lidl have also been gradually gaining market share in the UK retail sector implying that they also pose a threat to Tesco.2.2 ASDA approaches to positioning in the marketplaceFOUR DEVELOPMENT STRATAGEMS IN THE MANUFACTURED GOODS/MARKET NETWORK:1. Marketplace Perception. Retail additional of the similar products or facilities in existing marketplaces. These approaches or stratagems generally attempt to amendment related consumers to systematic consumers, as well as consistent consumer into substantial consumers. Distinctive organizations are dimensions concessions, with promotion to bonus cards offering also Consumer Affiliation Administration. Stratagem is frequently to accomplish financial prudence of gauge from side to side more effectual industrialized, further effective delivery, more buying influence, slide membership.2. Marketplace Improvement. Trade further along with the equivalent produces or facilities in fresh marketplaces. These stratagems frequently attempt to demand consumers away on or after participants or present standing produces in overseas marketplaces or familiarize innovative trademark labels in a marketplace. Different marketplaces can be topographical or well-designed; such as while the company trade the equivalent manufactured goods for alternative persistence. Insignificant or minor amendments might be required. Be cautious of traditional metamorphoses.3. Product Improvement. Trade original produces or facilities in existing marketplaces. These stratagems repeatedly attempt to trade other produces to (consistent) consumers. These can be trappings, attachments, or absolutely fresh produces. Cross-selling. Every so often, prevailing announcement frequencies are castoff.4. Modification. Trade original produces or facilities in existing marketplaces. These stratagems are the furthermost dangerous category of stratagems. Repeatedly there is a reliability emphasis in the announcement to illuminate why the concern entered into different marketplaces with fresh produces. On the other side modification stratagems also can lessen hazard, for the reason that a huge organization can supper convinced hazards if it drives on other than some marketplace. Modification can be complete in four different behaviours and methods: Horizontal modification. This ensues when the corporation purchases or progresses novel produces that possibly will demand to its present consumer collections although those new-fangled produces might be scientifically dissimilar to the obtainable manufactured goods appearances. Vertical modification. The business exchanges into the corporate of its dealers otherwise into the occupational of its consumers. Concentric modification. These outcomes in original manufactured goods appearances or facilities that have technical as well as/or marketing collaborations with present creation appearances, although the merchandises might demand to the other consumer crowd. Parent company modification. This happens as soon as there is neither hi-tech industrial nor selling cooperation and this entails accomplishment other consumer assemblies. Occasionally used by enormous corporations pursuing ways to steadiness a recurrent collection with a non-recurring one.Though the Manufactured goods/Market Network of Ansoff is previously decennia longstanding, it residues an appreciated perfect design for communiqu from place to place corporate division approach methods and occupational progress. Thus the Matrix system is also acknowledged as: the Ansoff Matrix, the Manufactured article Market Expansion Network, and the Evolution Vector Matrix. Derek F. Abell has recommended that another new model called 3D-Business Designationis longer to the Model of Ansoff. According to that model ASDA implements and improve the markets as well as the growth of ASDA is very impressive and so exhausted with management.ASDA is the one of the largest British supermarket which is currently possessed by (Wal-Mart). For the centuries ago wherever the well-founded is in the hazard of forfeiture for the reason that they have amassed a quantity of financial mortgages and sum of million in commitments. The existence of attentiveness is alternative influence in the eventual forfeiture where it raised sophisticated. In the meantime, the corporation's bit fee demolish precipitously. As portion of the resolution, the structural modification is greeted. As a result, the alteration of exertion consumed remained a day-to-day restraint for the business which assists the impression existence theme to association in altering or renovating the complete stockpiles. Amount of the administrative alteration is directing on rearrangement the corporation investments.

2.3 How integrate internal and external analysisIntegration of the internal and external analysesBoth internal and external environment have an impact on the success of an organization. The responsibility of the management is to analyze the inherent factors that require solutions and corrective/preventive actions in order to allow developing of efficient and effective marketing strategy. At ASDA there is learning and development activities which aim at fostering skills and competencies in line with the business requirements. To mention a few, there is promotion and increased take-up rate of new e-learning suite of courses and drug control officers accredited in two workshops. More so there is staff satisfaction which is a key aspect and a driver to ensuring that issues raised by staff will be addressed. Community responsibilities are never ignored and a balanced lifestyle for all staff is upheld enabling all employees to balance their workplace, community responsibilities and family. Its my advice to all strategic managers to not only consider the present state of the environments in their industry but also be able to predict its future positions.

3.1 Analysis of decisions and choices to be made at a corporate levelWell justified decisions and clearly defined objectives are crucial if an organization is to achieve its goals and objectives. Making of specific choices involve a great deal of understanding the underlying bases that guide future strategy and generating the best strategic options for purposes of evaluation and selecting from among the available list. At the corporate level,decisions and choices are made in respect to the mission statement which distinguishes it from other firms and within the boundaries of operation. Every decision made should ensure there is unanimous purpose which can facilitate working towards the same objective and emergence of an organization culture (Jolson, &Hise, 1973, P.267). A survey on ASDA identifies components inclusive in their mission statements like customers, products and services, technology and concern with employee and public image. For success to be guaranteed, decisions and choices should entail a list of elements like companys history, the available organization resources, market environment and distinctive competencies (In Stemp& Bata, 1970, P.11).

3.2 Assessment of how these decisions influence marketing at business unit and functional level.Decision to be made at unit and function levelStrategic decision at the corporate level is always made in respect to the various departments within an organization. For instance, in the marketing area strategists should have make decisions in relation to products to offer, target market segments and the available market position strategies. A company is expected to come up with a specific marketing objective during the planning period. At time single objectives can be pursued or multiple marketing objectives including, sales growth, market share, customer satisfaction, innovativeness, brand loyalty and reputation. ASDA satisfies its customers by making decisions which improve product quality and improved service. Charging low cost is also a decision at this level which is well analyzed through customer base and expected quantity sales.If such decisions are inaccurately developed by focusing much on short term goals or being too general that they end up providing little real guidance, there might arise a planning gap between planned and achieved objectives. This is disadvantageous in that it may require the strategic managers to change their strategies to improve current performance or adjust objectives downward to realistic ones.4.1 Analysis on marketing communications strategiesMarketing communications strategies create a core activity so that every interested person can clearly understand the intentions of others and appreciate the value of goods been offered. Managers are required to choose a communication strategy that not only reaches wide area but which is also cost effective. Effective strategies that have been implemented at ASDA to enable them engage positively with products, services brands and organizations include.Sales promotion.ASDA has ensured their wide variety of products and services encourage customers by creating good public relations which result in goodwill. This has proven to be an area which is used for customer retention purposes. It can be used to target smaller audiences.AdvertisingThis non-personal form of mass communication has offered a high degree of control to the team responsible for the design and delivery of advertising messages. It is a flexible tool, which ASDA has used to communicate with national audiences.Direct marketingASDA has like any other organization embraced the use of direct marketing to target specific individual customers. Email communication, direct mails and e-marketing controls a big percentage of the population. This strategy has allowed interactivity and more fast relaying of information which fasten the exchange of transactions in such a way that some few traditional communication practices and shopping patterns are been reconfigured4.2 Analysis on marketing strategies, their application and implementation for an organizationImplementation, Monitoring and Evaluation of strategiesAs discussed above, the success of an organization is determined by the adopted strategies to market their products as well as their implementation. The processes should fit in the marketing plans of the organization and the corporates goals and objectives. Monitoring of these strategies will enable a firm to develop more heterogeneous resources to serve growing markets and changing consumer needs. Monitoring will also help in exploring new opportunities and forming alliances. ASDA has been keen in analyzing new opportunities that develop its focus more on their products or technologies making it enhance its resources and gain long-term viability. The management has put in place evaluation of employees is reinforced by training and development schemes to ensure every strategy has a positive change to the business.Managing the competitive advantageASDA has maintained its competitive advantage through cost leadership. It has also adopted market penetration strategy, which is increasing sales of present products and services. Managing competitive advantage of an organization will involve understanding the needs of the target customers and finding strategies to make use of resources that are available and set the business apart from competition. Without significant effort, the competitors try to duplicate/ copy a successful advantage as the market changes. Continued analysis of the business and economic changes in terms of pricing has helped ASDA stay at the current situation.

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